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Received March 7th, 2023; First Revision March 29th, 2023; Second Revision April 18 th, 2023; Third Revision May 1st, 2023; Accepted May 23rd, 2023
ABSTRACT
Marketing communication is seen as a vital activity for the survival and success of SMEs. The aim of the study was to investigate the impact of marketing communication on the performance of small and medium enterprises (SMEs) in Polokwane, South Africa. SMEs are regarded worldwide as the cornerstone for economic development since they are established to foster any country's economic growth and development. However, SMEs are faced with business marketing problems that lead to their downfall, which should be seriously considered because it adversely affects the positive impacts of the SMEs. The study adopted the survey method, distributing 412 questionnaires to SMEs operating in Polokwane. Sales promotion was found to be the most used form of marketing communication. It was found that there is a positive correlation between marketing communication strategies and the SMEs'performance, and that some marketing communication elements affect sales increase, customer relationships, customer loyalty and profitability.
Keywords: Marketing communication; SMEs; sales promotion; SME performance; business branding; digital marketing; personal selling.
INTRODUCTION AND BACKGROUND
Small and medium sized businesses (SMEs) are recognised as the backbone of economic growth in both developed and developing nations due to their favourable effects on job creation, sustainable economic growth, and gross domestic product (GDP) (Smit & Watkins, 2012). Because of their contributions to the manufacturing sector, the decline in unemployment, and the diversification of production, they are viewed as an engine of growth and development (Iorun, 2014). Susanto et al. (2021) affirm that SMEs contribute positively to the economic growth of emerging countries. However, SMEs struggle to sustain their performance within the highly competitive environment. SMEs' positive contribution is shown through the improvement in the GDP, growth in new business creation and income, and improved employment opportunities (Omar et al., 2020; Sopha et al., 2021).
Apart from SMEs' positive contribution to the economic growth of countries, SMEs face a high failure rate. According to Hendricks et al. (2015), the estimated failure rate within the first two years of operation is 75%. The current extraordinary and unavoidable situation resulting from COVID-19 has impacted SMEs more negatively than it has well-established businesses. Empirical...