Assessment of the Effect of Advertising Channels on Sales Performance of Selected Small and Medium Enterprises in Lixle County, Burao Somaliland

Abstract

The small and medium enterprises (SMEs) in Lixle County carry out frequent advertisements of their products, but they still claim indifference in their sales. Therefore, the study sought to find out why the level of sales performance is at a standstill point on these small and medium enterprises (SMEs). In this regard, the main objective of the study was to assess the effect of advertising channels on sales performance of selected SMEs in Lixle County, Burao Somaliland. The specific objectives of the study were: to determine the effect of radio advertisement on sales performance of selected SMEs in Lixle County, to assess the effect of television advertisement on sales performance of selected SMEs in Lixle County, and to examine the effect of newspapers advertisement on sales performance of selected SMEs in Lixle County. This study adopted the Cultivation theory, the Gratification and the Hypodermic Needle Theory. This study was conducted through a descriptive survey design. The study covered 54 selected SMEs operating within Lixle County. The target population of the study comprised 162 employees. A sample of 115 respondents were selected using both stratified and simple random sampling techniques respectively. The study involved primary data which was gathered through questionnaires. The data were analyzed using Statistical Package for Social Sciences (SPSS). Descriptive statistics such as frequency, percentage distribution, mean and standard deviation were employed. Inferential statistics were also used to analyze the data and establish the relationship between the variables. Then the data were presented in the form of tables, pie charts or bar graphs to ease the analysis. The study found that advertisements made by TV, newspaper and radio respectively influenced most of the people in the area and impacted on the sales volume and the business performance of the selected small and medium enterprises in Lixle County.