Effect of marketing innovation on performance of small and medium enterprises in Nigeria

Abstract

One of the most common issues faced by small-medium enterprises is a poor marketing strategy. Absences of an effective marketing plan, resources and strategies have been reported to be among the weakness for small and medium businesses worldwide. This study was carried out to determine the effect of marketing innovation on the performance of SMEs. Specifically, the study investigated the relationship between innovative products, pricing, promotion and distribution strategies with efficiency of small businesses. 203 small and medium enterprises from the furniture business were designated as a sample for the research. 198 usable questionnaires were analysed. Multiple regressions were employed as tools of analysis in determining the link between the innovative marketing strategies and firm efficiency. Outcomes indicate that Marketing innovation strategies positively impact on small medium enterprises efficiency. The paper concluded that based on the positive effect of marketing innovation on many firms, SMEs should strive toward adopting it in their lines of business operations. At the same time, more work should investigate other aspect of innovative marketing in order to provide in depth knowledge of innovative marketing strategies and tactics that could lead to better performance of the small medium enterprise.