study examined the effect of relationship marketing on corporate performance in
small business enterprises using Entrepreneurs of Small Business Enterprises in
Lagos state as
case study. Relationship marketing is designed to develop strong connections with
customers by providing them with information directly suited to their needs and
interests and by promoting open communication. The objective of the study was
to evaluate the extent of practice of relationship marketing in Small Business
Enterprises in Lagos, to identify how relationship marketing leads to improved
performance of Small Busines Enterprises (SBEs) in Lagos and to justify
relationship marketing as it impacts SBEs competitiveness in the market place.
The study tested the hypotheses that the practice of relationship marketing
does not lead to improved performance of Small Business Enterprises (SBEs) and
that relationship marketing does not lead to SBEs’ competitiveness in the
Survey research method was used. A
self-designed instrument was used as research instrument for data collection.
The validity of the instrument was tested using expert opinion while the
reliability of the instrument was tested using test re-test reliability
technique result of which gave 0.7. the study adopted simple random technique
in selecting the respondents while the sample size was one hundred (100)
respondents in Ojo local government area of Lagos State.
chi-square statistical verification method was used in analyzing and
interpreting the data gathered from the respondents and was tested at 0.205
The study found out that the
relationship marketing has positive effect of the corporate performance of
small business enterprise in Lagos state as it leads to organizational
profitability, organizational growth, increase in revenue base, increased
performance and effectiveness, customer retention, increase in client-base,
increased customer loyalty and increased sales. This research work however
recommends that SBEs should structure their relationship marketing strategies
around their consumer/customers, get organized, know their customers, develop a
communication plan and coordinate communications, strive to improve corporate
performance and market share and improve customer service and focus on customer
retention. It was further suggested that SBEs should not limit their focus or
attention to only internal markets, but also to external markets and SBEs
should build close, profitable and long-term relationship with their customers.
Background to the Study
Statement of the Problem
of the Study
Scope/Delimitation of the Study
Limitations of the Study
Significance of the Study
Definition of Terms
of Relationship Marketing
2.2 Nature, Skills and Techniques of
2.2.1 Relationship Marketing Strategies
2.3 Benefits of Relationship Marketing
2.4 Corporate Performance Measures
2.4.1 Characteristics of a Good Performance Measure
2.4.2 Types of Performance Measures
2.4.3 Performance Measures in SMES
2.5 Small Business Enterprises
Small Business Enterprises
2.5.2 Challenges Faced By Small and Medium Enterprises
Intervention in Small and Medium Enterprises
2.6 Effect of Relationship Marketing on
Corporate Performance in Small
3.1 Research Design
3.2 Sample and Sampling Techniques
3.3 Population of the Study
3.4 Research Instrument
3.5 Validity of the Instrument
3.6 Reliability of Instrument
3.7 Administration of Instrument
3.8 Data Analysis
4.1 Presentation of Data
4.2 Testing of Hypotheses
4.3 Discussion of Findings
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Suggestion For Further Studies
TO THE STUDY
to Oyedijo, Idris and Aliu (2012), governments world-wide have come to realize
that Small Business Enterprises (SBEs) contribute enormously to the growth and
development of a nation’s economy. Small Business Enterprises (SBE's) play a
major role in the world economy, and their contribution to economic and
employment growth is widely recognized. Small Business Enterprises (SBE's) do
play a major role in the world economy, and they are recognized as one of the
main contributors to economic, development and employment growth.
Business Enterprises in conjunction with the medium enterprises are known to
employ over 60% of Nigeria’s
workforce (World Bank, 1995 cited in Adelaja, 2004).
to Ojo (2004 as cited in Oyedijo, 2012), in the case of Nigeria, we have
witnessed an upsurge in Small Business Enterprise development efforts by
successive governments due to multifarious reasons such as, the failure of past
industrial policies hitherto anchored on large and capital intensive industries,
the discovery that vibrant small business enterprises and medium enterprises
can contribute to achieving many of the objectives of Nigeria’s development
plans, an increase in emphasis now placed on self-reliance as an approach to
development, a world-wide acknowledgement of the successes recorded in
economies such as Malaysia, Indonesia and India where small and medium
enterprises development have been used to accelerate industrial transformation
and the significance of small and medium enterprises in the Poverty Eradication
Programme (PEP) of Nigeria’s President Olusegun Obasanjo regime during the
period 1999 to 2007 and even beyond.
scale business constitutes the real fabric of a nation’s economic development.
Globalization has made business system to have undergone a number of changes in
recent years. These changes are accompanied by growth both in size and
magnitude. To cope with these changes, modern marketing techniques are used in contemporary
business environment. One of such techniques is relationship marketing.
Relationship Marketing is a marketing strategy whose objective is to establish
and maintain a profitable, long-term relationship with a customer, which goes
beyond the initial contact (Dauda et al, 2010).
marketing is a form of marketing that evolved from direct response marketing;
it places emphasis on building longer-term relationships with customers rather
than on individual transactions. Relationship marketing involves an
understanding of customers' needs and wants through their lifecycle and
providing a range of products or services accordingly (Adewunmi, 2007).
(2004) buttressed that due to the rise in the number of competitors as well as
the buying options in front of consumers, relationship marketing has
been on the rise. Relationship marketing involves making strong and deep
relationship with the consumers (whether they be individuals or organizations),
such that the consumer does not shift a brand and has a long term and
satisfying relationship with the brand.
marketing need not be used only with your end customers. Your stakeholders are
equally important. That is why one of the key goals of
marketing activities today is to build strong relationships with customers and
stakeholders. Thus in all, the various entities involved in relationship
partners (Distributors, suppliers etc)
partners (Shareholders, investors etc)
firm needs to build a strong relationship with all these entities to be in the
front. Imagine having a high defection rate, or having a high attrition in the
organization. Defection rate is the rate of a customer leaving its brands,
whereas attrition rate is the rate at which an employee leaves a company which
has hired him. You do not want a high defection or attrition rate. And hence the
use of relationship marketing (Oyedijo, et al., 2012)
four entities together can also be known as the “Marketing network” for
relationship marketing. One of the smarter strategies for a company to generate
profits is simple – Take good care of your marketing network and your profits
will follow. Imagine a highly motivated employee working alongside a highly
motivated channel partners. This builds confidence for the company from the
point of view of the customers which in turn brings sales and better numbers.
This attracts the financial community and they in turn start investing in the
company. Thus in essence, relationship marketing can actually take the
organization to a whole new level of generating business and profits.
Adekunle (2005) contributed that overall,
relationship Marketing builds a tight knit for the company bringing its main
players together and thereby taking the company forward. This in turn results
in high performance and high rewards. As said by Leonardo Dicaprio in the movie
Inception – A positive motivation always trumps a negative thought. This is
where the crux of relationship marketing lies. A positive motivation which
brings people together builds a strong bond and helps the company in achieving
OF THE PROBLEM
Small Business Enterprises contribute in no
small measure to the growth and development of a country and is also seen as tool
for entrepreneurial development which in turn impacts the GDP of such country. Relationship
marketing has been proffered as a necessary skill if profitable and long-term
relationships with customers are to be established, maintained and sustained.
However, the extent of practice of relationship marketing in small business
enterprises in Lagos is yet to be ascertained,
while managers are also left with the task of adjudging if relationship
marketing leads to improved performance of small business enterprises in Lagos at all.
Another problem is ascertaining if
relationship marketing impacts small business enterprises competitiveness in
the market place. It is these gaps in literature that this study sets out to
1.3 OBJECTIVES OF THE STUDY
objective of this study can be stated as follows:
evaluate the extent of practice of relationship marketing in Small
Enterprises in Lagos.
2. To find out whether relationship marketing
leads to improved performance of Small Business Enterprises (SBEs) in Lagos.
3. To establish whether relationship marketing impacts SBEs
competitiveness in the market place.
1.4 RESEARCH QUESTIONS
order to give focus to the study, the following research questions were set to guide the study:
is the extent of practice of relationship marketing in Small Business
Enterprises in Lagos?
relationship marketing lead to improved performance of Small Business
Enterprises (SBEs) in Lagos?
relationship marketing impact SBEs competitiveness in the market place?
The study tested two null
1. That there is no significant
relationship between relationship marketing and improved performance of Small
Business Enterprises (SBEs) in Lagos.
2. That there is no significant relationship between relationship
marketing and SBEs’ competitiveness in the market place.
OF THE STUDY
This study is limited to
Entrepreneurs of Small Business Enterprises in Lagos. It will focus more on enterprises that
actively embrace marketing. It will lay emphasis on the extent of practice of
relationship marketing on small business enterprises in Lagos,
its impact on SBEs competitiveness in the market place, and how it impacts on
improved performance in Lagos.
OF THE STUDY
This research work is limited
by finance and time. Time needed to extend the research work to different local
government and council areas in Lagos, time needed to take the research work
outside Lagos and finance needed to engage this task in terms of
transportation, stationery etc.
OF THE STUDY
research work provides readers with various skills and techniques of
relationship marketing with its overall effect on the growth of SBEs. It will
also get the researcher acquainted with the concept while prospective
entrepreneurs will also be equipped with the rudiments and required marketing
skills needed to expand their business and improve their performances. It is
also hoped that the society will be empowered with these skills and techniques
while government will also be informed on the need to create necessary
conditions needed to make SBEs thrive and improved in the country through
1.9 DEFINITION OF TERMS
through which goods and
to the customer (www.businessdictionary.com).
Relationship: A connection
such as a correlation,
or between people, such as a marriage (www.businessdictionary.com).
Formed into an association and endowed by law with the rights and liabilities
of an individual (www.businessdictionary.com).
project or undertaking that is especially difficult, complicated, or risky
Relationship marketing: Marketing
that are aimed at developing
trusting and long-term
with larger customers.
Customer: One that purchases a commodity or service
act, process, or result of developing
Growth: The process of
execution of an action
Organizational performance: An analysis
of a company's
as compared to goals
Small business enterprise:
Independently owned and operated and not dominant in its field of operations.
The size will vary from industry to industry (www.frbatlanta.org).
state or condition
of yielding a financial
It is often measured by price to
earnings ratio (www.businessdictionary.com).
Customer’s loyalty: Likelihood
of previous customers
to continue to buy
from a specific organization (www.businessdictionary.com).
Economic development: Progress
in an economy,
or the qualitative
of this (www.businessdictionary.com).
Alternative term for market
of a firm
or a nation
standards of the local
that are competitive
on the resources
or consumed in producing
Someone who exercises
of an opportunity
and, as the decision
maker, decides what, how,
and how much of a good
will be produced (www.businessdictionary.com).
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594