IMPACT OF INNOVATIVE MARKETING STRATEGY ON SMALL FIRMS PERFORMANCE IN NIGER STATE
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IMPACT OF INNOVATIVE MARKETING STRATEGY ON SMALL FIRMS PERFORMANCE IN NIGER STATE
Chapter one
INTRODUCTION
1.1 Background of the Study
Innovative marketing strategy is a driving force behind competitive scuffles in today’s turbulent atmosphere. Introducing new products and services is the foundation of economic growth and progress. The ability to innovate has led scholars to investigate actions that lead to the growth of persons and organisations.
Small businesses all around the world contribute significantly to employment and economic growth, particularly through innovative activities, which serve as a primary driver of competitive advantage and firm success (Ussahawanitchakit, 2012).
As a result, the values shaped by innovative marketing strategy demonstrate possible conditions that unearthed new ways of doing things or new items and processes that add value to economic fortunes.
A firm’s performance is tied to its ability to generate profit and growth in order to meet its overall strategic goals (Neu & Brown, 2005). It is a result of the interaction of activities made in regard to competitive factors that allow the firm to adapt to the external environment, thus merging competence and usefulness.
Small enterprises have proven to be notable in terms of employment and added values to GDP in both established and developing countries of the world, ‘but their full potential remains untapped’.
Schlogl (2004). The assistance provided for the establishment of small businesses requires them to become key engines of innovation and technical growth, particularly in the field of marketing.
In 2007, the World Business Council for Sustainable Development provided a summary of the weight that small businesses in general provide to governments and individuals.Small businesses that are well-managed can create jobs and wealth. They help to generate revenue and build community solidarity.
Larger organisations receive local services and supplies, while communities benefit from lower-cost goods and services. Furthermore, “by working closely with small firms,
large corporations can develop a new customer base that may not be accessible to their traditional distribution networks” (Menna, 2013). As a result, small businesses are a dependable source of supplies and are familiar with the procurement process.
Small businesses worldwide have been determined to employ approximately 75% of the workers in any given country. During periods of liberalisation and privatisation, small firms, particularly in emerging economies,
have become critical economic tools and breeding grounds for entrepreneurship development and indigenous technology, creating jobs and outperforming larger firms in terms of innovation.
However, Menna (2013) identifies impediments to the activities of innovative marketing strategy in small enterprises, including a lack of capital investment, infrastructure, education and training systems, encumbering legislation, and general shortcomings in know-how and skill acquisition.
Other impediments include limited managerial competencies and difficulty using technology, resulting in low productivity, among others. As a result, investing in innovative marketing strategies strengthens the profit base, employee knowledge,
and individual resilience, allowing organisations to create new products, processes, and new working behaviours that improve competitiveness and achieve the necessary goals to shape performance.
The existing literature describes innovative marketing strategy differently. For example, Aremu (2010) stated that there are three sorts of innovative marketing strategies: product, process, and strategy or business model innovation.
Hussien (2010) categorises innovative marketing strategy into five types: new products, new manufacturing processes, new sources of supply, market exploitation, and new business structures.
According to Allocca and Kessler (2006), a creative marketing strategy will only be effective if it involves the development of new, better capabilities or higher utility. The current study aims to investigate the impact of innovative marketing strategy on small firm performance.
1.2 Statement of the Problem
It is widely acknowledged that innovative marketing strategies have emerged as a fundamental driver of corporate competitiveness. Some research have revealed that an innovative marketing approach is closely related to firm success (Rosli et al., 2012; Mukhamad et al., 2011; Pla-Barber & Alegre, 2007; Gunday et al., 2011; Gary et al., 2008; Nada et al., 2008; Morgado et al., 2008; Gunnar et al., 2009).
Others proposed that the process involved in an innovative marketing strategy created various effects for business success (Geroski and Machin, 1993).
Mark (2004) went on to suggest that innovative marketing strategy did not explain performance, whereas others discovered that process improvement did influence small business sales growth (Wolff & Pett, 2006).
However, this study focuses on small enterprises’ novel marketing strategies to determine whether innovative marketing activities have an impact on firm performance.
This study seeks to assess how strongly an innovative marketing strategy influences the performance of small businesses, with a focus on the mediating effect of organisational productivity and effectiveness.
1.3 Objectives of the Study
The main purpose of this study is to analyse the impact of innovative marketing strategy on the performance of small firms in Niger State, while the specific objectives are as follows:
1. To investigate the effect of creative marketing strategies on small business performance in Niger State.
2. Identify the types of innovative marketing strategies that can help small businesses perform better.
3. To identify the reasons restricting small business performance in Niger state.
1.4 RESEARCH QUESTIONS.
1. How does creative marketing strategy affect the performance of small firms in Niger State?
2. What forms of innovative marketing strategies can help small businesses improve their performance?
3. What issues are restricting small business performance in Niger state?
1.5 Hypothesis.
HO: Innovative marketing approach does not improve small firm performance.
HA: Innovative marketing approach improves tiny firms’ performance.
1.6 Significance of the Study
This study on the impact of innovative marketing strategy on small firm performance in Niger State will educate stakeholders in the business sector, particularly marketers and management teams,
about the benefits of innovative marketing strategy, emphasising how it can increase an organization’s customer base, resulting in improved firm performance.
The study may also add to the current body of evidence about the impact of innovative marketing strategies on small business performance. The study will be useful reference material for students who want to use it as a starting point for their own research.
1.7 Scope and limitations of the study
This study will analyse how innovative marketing strategy has enhanced the performance of all small enterprises in Niger State. This study will also look at different forms of innovative marketing strategies and other issues that hinder small business performance in Niger state.
1.8 Definition of Terms
Performance: The completion of a task as judged against predetermined established standards of accuracy, completeness, cost, and speed. In a contract, performance is defined as the fulfilment of an obligation in such a way that the performer is released from all contractual liabilities.
A strategy is a method or plan chosen to attain a desired outcome, such as achieving a goal or solving a problem.
Innovation is the process of turning an idea or invention into a product or service that adds value or for which customers will pay.
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