Abstract
One of the priority needs of Small, Micro and Medium-Sized Enterprises (SMMEs) that operate in Alexandra Township is to adopt effective marketing strategies that are recommended by Mooradian, Matzler and Ring (2012) and Kotler and Keller (2012), in which emphasis is placed on setting the right selling price of products, offering the right product, utilising the right promotion strategies for products, and rendering services to customers at the right place. Information needed for the survey was gathered from 108 operators of SMMEs in Alexandra Township. Ordered logit and Bayesian methods were used for estimating predictors of effective marketing. The study found that 63 of the 108 respondents who were selected for the study (58%) possessed adequate marketing skills and capabilities, whereas the remaining 45 respondents (42.23%) were incapable of marketing their goods and services effectively. Results obtained from logit and Bayesian analysis showed that 3 factors affected the ability to market goods and services effectively (access to credit facility for ordering stock, access to loan from money-lending institutions, and ability to network with wholesale suppliers and retailers).
Highlights
Introduction and Background to StudyAccording to Statistics South Africa (2012), Alexandra Township was established in 1912, and is one of the oldest South African townships in Gauteng Province
This study aims to shed light on the importance of marketing skills to SMMEs in the footwear and textile industry of Alexandra Township
These predictor variables were the ability to order goods and merchandise in bulk on credit, the ability to order goods and merchandise in bulk on credit, the ability to raise loan from money-lending institutions, the ability to network with wholesale suppliers and retailers, the ability to raise start-up capital from family or personal savings, the duration of business operation, and access to training opportunities, in a decreasing order of strength
Summary
Introduction and Background to StudyAccording to Statistics South Africa (2012), Alexandra Township was established in 1912, and is one of the oldest South African townships in Gauteng Province. Since the early 1990s, Alexandra Township has been growing rapidly in terms of entrepreneurial activities, and has attracted a large number of viable small, micro and medium-sized enterprises (SMMEs) in all sectors of the economy. Based on the 2011 census carried out by Statistics South Africa (2012) in 2011, the total population of Alexandra Township is about 180, 000. Most of the residents of Alexandra Township are Black African (99%). Alexandra Township is home to a large number of textile and footwear enterprises that are owned and operated by local as well as migrant entrepreneurs.
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