Marketing communication and the performance of small and medium enterprises in Polokwane Local Municipality

Abstract

This study investigated marketing communication and the performance of SMEs. Quantitative research methodology was used in this study. SMEs located in Polokwane Local Municipality in Limpopo Province, South Africa were considered for this study. The study used convenience sampling and snowball sampling methods because; there was no defined population frame of SMEs in the research area. One hundred and sixty SMEs participated in the study. The researcher used structured self-administered questionnaire to collect data. The questionnaire was developed by the researcher after a thorough review of literature on marketing communication strategies and SMEs. Pearson Chi-Square and descriptive statistics were used to analyse data. The Cronbach’s alpha test was used to measure reliability of the questionnaire items. This study revealed that the use of traditional marketing and the use of guerrilla marketing communication strategies increase the sales and profit of SMEs. However, it does not necessarily contribute to the employment of additional employees. The combination of the two marketing communication strategies yields better results for SMEs in terms of performance as compared to when used individually. Recommendations proposed included marketing subsidies from the government which have a potential to reduce unemployment because SMEs will now be able to employ marketing personnel using the financial resources from the government