Utilization of promotion mix elements by small business enterprises: The case of Nairobi East lands

Abstract

This study was conducted with the objective of finding out the level of utilization of the promotion mix elements of advertising, sales promotions, publicity and public relations as well as personal selling among small business enterprises operating in Nairobi Eastlands. The study also set to find out the factors that determine the usage of the promotion mix elements and the problems encountered by the managers/operators of the small businesses in the process of promoting their goods and services to the customers. To achieve the above objectives, primary data was collected from 60 respondents selected from certain parts of the city. Earlier studies show that small business enterprises in the city of Nairobi are not crowded in one region. but are rather clustered in certain parts. The respondents for this study were selected from Gikomba, Kamukunji, Dandora, Kariobangi North, Ngara, and Kariokor administrative zones of the city of Nairobi. The enterprises to be interviewed from each region were chosen using a clustered random sampling method. The researcher initially got the list of the enterprises from the welfare associations to which these enterprises belonged. He then selected the names of the respondents to be interviewed randomly from the lists provided. Only permanent small business enterprises were interviewed because business development projects target such enterprises; they are also easier to trace, are more accessible, reliable and easier to monitor. The pnmary data was collected through a personally administered structured interview guide and analyzed through a computer package, SPSS. The chi- square test was used to test the relevance of the promotion mix elements to the small business enterprises. The findings from data analysis led to the following conclusions: 1) The usage of the promotion mix elements of advertising, personal selling, sales promotions and public relations was found to be very minimal among the small business enterprises. Most such enterprises relied on order taking and convincing the customers within the business premises mainly did promotion. However, almost all the enterprises seemed to understand the benefits of a satisfied customer. 2) The most extensively used promotion mix elements among the small business enterprises are personal selling (order taking and using field sales persons occasionally) and advertising in posters, signboards, in-house leaflets and newspapers. 3) The promotion of the goods and services from small business enterprises IS hindered by lack of skilled staff, inadequate knowledge on how to promote the goods and services, lack of finance and inadequate managerial skills .