Role of Marketing Capabilities in Enhancing Smes Performance in Ampara District

Abstract

The prime objective of the study is to identify marketing problems faced by small and medium businesses in the Ampara district. The specific objective is to measure marketing practices in the Ampara district and to suggest strategies to enhance their performances. The study is based on marketing capabilities such as pricing, product development, channel management, marketing communication, selling, market information management, marketing planning and marketing implementation. Researchers have used primary data collected from managers or proprietors of small businesses in the district. Questionnaires were used for data collection purposes and it was designed and adopted from previous researchers. Interviews were also conducted in order to find the reasons for insignificance of five independent variables. Multiple regression analysis and qualitative analysis were used for analyzing collected data. Findings suggest that small and medium firms are lacking in skills in pricing, inability of developing new product responding to the customer requirements, unable to maintain profitable relationship with distributors, lacking brand management skills and unable to put marketing strategies into action. If there is an improvement on the variable on which this research is based, there will be performance enhancement of the small and medium enterprises in the Ampara District.