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UNIVERSITY OF CAPE COASTSCHOOL OF BUSINESSMASTER OF BUSINESS ADMINISTRATION/COMMERCE
MARKETING PRACTICES AND SALES TURNOVER OF SELECTED SMALLBUSINESS ENTREPRISES AT KAKUMDO
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CHAPTER ONE
Introduction
Background to studyWhile the contributions of small and medium enterprises(SME’s) to development are generally acknowledged,entrepreneurs in this sector face many obstacles that limittheir long term survival, development and overall turnover.Scholars have indicated that starting a business is a riskyventure and warn that the chances of SME owners making it pastthe five-year mark are very slim (ILO, 2005) and as suchturning over becomes very challenging all the time. Someresearches into small-business development have also shownthat the rate of failure of small scale businesses indeveloping countries is higher than in the developed world(Marlow, 2009). The SME is a perfect competition market whereby there is free entry and exit, more sellers and buyers noprice determination because prices can be bargained.
In Ghana and as such in Kakumdo, many companies such as microfinance, banks and despite and the government give support andincentives such us loans to SMSE’s.
It is expected that these enterprises would grow andexperience high sales turnover in their businesses given thesupport and incentives that available to them. However, therate of business failure continues to increase because of poorlocation, lack of management experience, lack of huge capital,low demand for products and services, poverty in thecommunity, poor infrastructure, general economic conditions,and lack of good and successful market practices such asbranding, packaging, advertisement and poor customer care,lack of accounting skills to control cash flow, inadequatecompetent staff and problem of cheaper foreign products.
In spite of the challenges related with the growth of businessturnover of SMSE’s, many people continue to venture thesebusinesses either on their own or in partnership with others.
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This has been made possible primarily because of ease ofentry, limited access to other enterprises and lack ofemployment opportunities in formal sector of the economy.Also, given the increasing number of the enterprises,understanding the social and economic factors influencingtheir performance, success turnover is of critical importance.
Problem statement
Research ObjectiveThe general objective of the study is to explore the marketingpractices used by Small Business Entreprises to improve salesturnover at Kakumdo.
Specifically the study seeks to: a. present a descriptive profile of SMSE’s in Kakumdob. determine the factors influencing the performance of
SMES’s.c. determine obstacles and challenges of the operations of
SMSE’sd. find out the market practices of SMSE’s at Kakumdoe. examine how market practices are influencing the business
turnover of SMSE;s
Research questionsResearch questions for the study are:
a. How do SMSE’s at Kakumdo conduct their businessb. What factors influence the performance of SMSE’s at
Kakumdoc. What obstacles and challenges of SMSE’s go through in
their operationsd. What market practices do SMSE’S adopt in their businessese. How does market practices influence the business turnover
of the SMSE’s
Scope of the study
Significance of the study
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CHAPTER THREEMETHODOLOGY
IntroductionThe purpose of this research as stated above involves adescriptive approach in describing the various marketingpractices and how successful these practices have been inimproving the turnovers of the selected SBEs at Kakumdo.Descriptive research seeks to provide an accurate descriptionof observations of an event or phenomenon.
Study area
Study designThe study will use one-shot or cross-sectional studies togather information on current trends of activities andpractices at the selected SBEs. The responses from selectedSBEs will be gathered in thier natural environment whereevents occur thus researcher intends to carry out a fieldstudy at Kakumdo using appropriate data collection methods andtools.
Qualitative and Quantitative ResearchData collection methods can be classified into qualitative andquantitative methods. Thisis a conventional classification – as a distinction it can behelpful to writers, but it canalso be misleading, as we will see.A useful way to distinguish between the two methods is tothink of qualitative methods asproviding data in the form of words (or maybe visually), andquantitative methods asgenerating numerical data. However, it is a mistake to assumethat there must be a strictblack and white dichotomy. Quantitative and qualitativemethods of data collection areoften employed in support of each other on the one researchproject. The qualitativeresearcher may use historical numerical data to support aparticular finding, for example.
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Similarly, qualitative data can provide rich information aboutthe social processes inspecific settings.Various methodologists (e.g. Neuman, 1994:317) have tabulatedthe differences betweenqualitative and quantitative research as shown in the tablebelow.Differences Between Qualitative and Quantitative ResearchQuantitative QualitativeObjective is to test hypotheses that theresearcher generates.Objective is to discover and encapsulatemeanings once the researcher becomesimmersed in the data.Concepts are in the form of distinctvariablesConcepts tend to be in the form of themes,motifs, generalizations, and taxonomies.However, the objective is still to generateconcepts.Measures are systematically createdbefore data collection and arestandardized as far as possible; e.g.Measures are more specific and may bespecific to the individual setting orresearcher; e.g. a specific scheme of6measures of job satisfaction. values.Data are in the form of numbers fromprecise measurement.Data are in the form of words fromdocuments, observations, and transcripts.However, quantification is still used inqualitative research.Theory is largely causal and isdeductive.Theory can be causal or non-causal and isoften inductive.Procedures are standard, and replicationis assumed.Research procedures are particular, andreplication is difficult.
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Analysis proceeds by using statistics,tables, or charts and discussing howthey relate to hypotheses.Analysis proceeds by extracting themes orgeneralisations from evidence andorganizing data to present a coherent,consistent picture. These generalisationscan then be used to generate hypotheses.
Study population and sample
Sampling procedures
Data collection methodsQualitative methods of data collection focus on all relevantdata whether immediatelyquantifiable in a standardized scale or not. It is importantto note that it is not just nonquantitativeresearch. As defined by Hakim, qualitative research providesthe:“‘individuals’ own accounts of their attitudes, motivationsand behaviour. It offers richlydescriptive reports of individuals’ perceptions, attitudes,beliefs, views and feelings, themeanings and interpretations given to events and things, aswell as their behaviour;displays how these are put together, more or less coherentlyand consciously, intoframeworks which make sense of their experiences; andilluminates the motivationswhich connect attitudes and behaviour, the discontinuities, oreven contradictionsbetween attitudes and behaviour, or how conflicting attitudesand motivations areresolved in particular choices made.”Qualitative data is particularly useful when it comes todefining feelings and attitudes.For example a staff attitude survey would be meaninglesswithout some qualitative
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elements.
Instruments used
designCross-sectional Research7Methods for Collecting Qualitative DataQualitative data collection methods include observation,participant observation,interviewing, focus groups and case studies.Observation and Participant ObservationObservation is the systematic observation, recording,description, analysis andinterpretation of people’s behaviour. This method can beloosely structured or tightlystructured with precise coding methods of behaviour patterns.Traditional time andmethod study of worker behaviour involved precise coding andtiming of work patterns.In participant observation, the researcher participates tosome degree in the lives andactivities of the people being observed. The advantages anddisadvantages of participantobservation as shown below.Advantages and Disadvantages of Participant ObservationAdvantages DisadvantagesGood at explaining ‘what is going on’ inparticular social situations.Can be very time consuming.Heightens the researcher’s awareness ofsignificant social processes.Can create difficult ethical dilemmas forthe researcher. E.g. the problems ofconfidentiality and ‘openness’ – does theresearcher tell people they are beingobserved?Particularly useful for researchersworking within their own organisations.Can be high levels of role conflict for theresearcher (e.g. ‘colleague’ versus
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researcher).Can afford the researcher the opportunityto experience ‘for real’ the emotions ofthose who are being researched.Virtually all data collected can be useful.InterviewingData can be collected by using unstructured and semi-structured interviews (qualitativeresearch) or by using structured interviews (covered underquantitative data collectionmethods). When using semi-structured interviews, theresearcher may encourage an8informal conversation covering certain themes and questions.These questions may varyfrom one interview to the next, and the order in whichquestions are asked may vary also.Semi-structured interviews are primarily used in explanatoryresearch to understand therelationships between variables, perhaps as have been revealedby some prior descriptiveresearch. Additionally, semi-structured interviews are used inexploratory studies toprovide further information about the research area.Unstructured interviews, sometimes called in-depth or non-directive interviews, aredesigned to explore in depth a general area of researchinterest. Interviewees areencouraged to talk freely about events, behaviour and beliefsin relation to the researcharea. Such interviews are used in exploratory research to findout more about a particularevent and seek new insights.As for other data collection methods, more than one type ofinterview might beincorporated in the research design, as shown in the followingexamples:Unstructured interviews to identify variables to be tested inquestionnaire or structureinterview;Semi-structured interviews to explore and explain themes identifiedthrough aquestionnaire;
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Combining within one interview one section of factual, structuredquestions and onesection of semi-structured questions designed to explore theresponses from the firstsection;Using semi-structured and unstructured interviews to verify findingsfrom questionnaires.(Saunders et al, 2000: 245-6)Interviews are useful in the following situations:• where there is an exploratory or explanatory element to theresearch;• when you want to know the meanings which respondents ascribe tovarious phenomena;• where it will be important to establish personal contact;• where the researcher needs to exercise control over the nature ofthose who supply data;9• when there are a large number of questions to be answered;• when questions are complex or open-ended;• when the order and logic of questioning may need to be varied.Focus GroupsThese are excellent research tools. Focus groups are forms ofgroup ‘interviews’ – butthere are differences. You will probably be familiar with theterm ‘focus group’ frommarket research reports as they are used often to testreactions to new products or newpoliticians.A focus group usually consists of 6-15 people. (If the groupis too large, then it tends tobreak up into sub-groups and control is difficult). Theresearcher acts as a facilitatorrather than an interviewer.The facilitator starts with a clear theme communicated to theparticipants and a setagenda of items. The group then works through the items, butthe facilitator should alsobe prepared to pursue novel issues as they arise.Focus groups should be taped (audio) or videoed. Videoing canbe more difficult andintrusive but is often worthwhile. Permission of theparticipants should always be soughtfor taping/ videoing.
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It is vital to make sure that everybody talks. If you wish touse focus groups across anorganisation as a primary method of research, then a ‘pilot’focus group should be triedfirst – learn the problems!. Some of the advantages anddisadvantages are summarised inthe table belowAdvantages and Disadvantages of Focus GroupsAdvantages DisadvantagesA dynamic focus group will generatemany ideas, helping to explain or exploreconcepts. They will help to tell you whythe organisation is as it is.High level of skill of groupleader/researcher is required to facilitateand manage the discussion. Otherwise thediscussion degenerates into ‘waffle’.10Bottom-up generation of concerns andissues, which can help to establish surveyvariables.Where focus groups are conducted withinan organisation, participants may beconcerned about confidentiality.Can offer credibility to research whereissues of bias are associated withinterviews.Some participants may be inhibitedbecause of the group.Relatively quick and easy to organise.Cheap on time compared to participantobservation, etc.Dominance by one, or some,participant(s) of the discussion.A snowballing effect can occur asparticipants develop ideas triggered byother participants.Problem of ‘groupthink’ – tendency toexpress views that satisfy others in thegroup, but which may not be validoutside the context.Case Studies
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The logic of case studies is that all cases start the same andthen a sample of six cases istaken that represents the extremes of possibilities orcritical incidents. What you aretrying to say is that if this phenomenon doesn’t hold underthe best conditions, it won’thold anywhere else. Whereas if we maximise the favourableconditions for X to be Xand it’s not, then we know that in all other conditions itwon’t be either. Given thesecharacteristics, case studies are not chosen on the basis thatthey are representative.It is not the case that case studies are a “qualitative”research method in some black andwhite sense. Instead, many case studies collect large massesof quantitative data –performance data, profitability data, employment data,marketing data, etc. for a specificorganisation.Traditional Advantages and Disadvantages of Case Study MethodAdvantages DisadvantagesHolisticdepth of analysisrealisticattention to contextextensive range of variablesResearcher Biasobservation biasinterpretation biascannot see everything going onresearcher presence may change caseacceptance by subjectsLongitudinal Historical11develop history of casedetails of processcausation and interactionssituation as it happensorganisational and economic change maymake case out of date and irrelevant; e.g. astudy of a “best practice” firm that is nowbankrupt and closed down.
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High Internal Validitymore complete understandingdirect observation of situationmultiple sources of datatriangulation of data (see below)meaningful to subjectsLow External Validitylow generalitylittle control over phenomenoncomparative analysis difficultrepresentativeness of casedifficult to replicateAdaptivequestions can be changed as case developsmethods can be changeddata sources can be changedCostlyresearch timevolume of dataanalysis of dataproblems of accessTriangulation of dataThis refers to the fact that an issue can be addressed bythree types of data – for example,interview data, organisational documents, and organisationalstatistics, plus crosscheckinginterviews.Triangulation involves asking whether the data from thevarious sources leads to thesame conclusions. If it does, then we will have much moreconfidence in our argument.Qualitative Data Collection: Six CharacteristicsThere are six characteristics of qualitative research:importance of the context, the casestudy method, the researcher’s integrity, grounded theory,process and sequence, andinterpretation.ContextQualitative research assumes that data belongs to a largerwhole, in which the historicaland situational context can affect the meaning of the datacollected.
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12Case Study MethodCase study method focuses on one case, or perhaps a smallnumber of related cases, fromwhich the researcher seeks a lot of detailed information.However common as we havenoted, case study research frequently involves quantitativedata and case study methodshould be seen as both qualitative as quantitative.Researcher’s IntegrityThe immediacy, direct contact, and intimate and detailedknowledge provided byqualitative research is sometimes offset by questionsconcerning researcher bias. Bias isa potential problem given the researchers’ role as participantin the research drama andthe copious amount of information generated throughqualitative research, only some ofwhich will make its way into the research findings and report.It is important, therefore,for checks to be incorporated into the research design. Suchchecks can includeconfirming evidence from several participants, maintainingdetailed written notes, crosscheckswith other, related research, and a well-presented and arguedreport.Grounded Theory“Grounded theory is grounded in data which have beensystematically obtained by socialresearch.” In quantitative research, data is collected to testhypotheses. Qualitativeresearch begins with a research question and often littleelse. Theory develops during thedata collection. This more inductive method means that theoryis built from data orgrounded in the data. “There is need for effective theory – atvarious levels of generality– based on the qualitative analysis of data. Without groundingin data, that theory will bespeculative, hence ineffective.Process and Sequence
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Qualitative research recognises that the order in which eventsoccur, and when theyoccur, is significant. This is similar to the recognition ofthe context in which events arerecorded.InterpretationTextual evidence, rather than numerical data, is paramount inqualitative research. Thesignificance given to data and the way in which the data arepresented are dependent onthe researcher. Interpretation is three-fold:13First-order interpretation: the researcher learns about themeaning of the “data” or actionfor the people under study.Second-order interpretation: the researcher understands thesignificance of the action forthe people under study.Third-order interpretation: the research assigns generaltheoretical significance.Primary and Secondary Data SourcesWe have already discussed case studies and survey researchmethods. These are primarydata sources – you are generating new data. Primary sourcesare self-generated andconsist of experimental designs, case studies, survey data,focus groups, participantobservation data, and so on.Another route that you, may wish to pursue is that of usingexisting materials or“secondary sources”.Secondary sources can be various - company records, archives,trade union materials,census data and government sources. Much economics research isperformed assecondary data analysis of the multitude of time-series datasets that most governmentsmaintain.Secondary data occur as raw data or processed. If raw data isavailable, then the data canbe reworked. More often, however, only published reports areavailable.
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For international studies, secondary data analysis is the mostcommon type of studyperformed. Similarly, many longitudinal studies involvesecondary data analysis. (What are the advantages of secondary data analysis?The advantages typically listed are:-• Relative speed and low cost;• The research domain can be defined precisely prior to the study.In other words, the issues ofsampling frame, sample and response rates have already been sortedout for you. Forexample, if you use census data the research domain is explicit.14• The possibility of generating longitudinal data sets by comparingdata across the years.• The possibility of generating comparative, international datasets.Finding the DataEconomists have persuaded governments to collect all theirdata for them - financialstatistics, trade statistics, labour statistics and so on. Theview of nearly all economists isthat “if you want data, then switch on the computer’.Management researchers are not solucky. Many firms do not keep good archives and material isdiscarded with each newbout of restructuring. Consequently, good data requiressearching. So, who keeps gooddata?Social science archives. Most countries have social science archiveswhere collections oflarge surveys are stored as input data. Therefore the data can bere-analysed. For example,in the UK the main social science archive is housed at EssexUniversity – accessible on theInternet at http://dawww.essex.ac.ukIndustry associationsProfessional associationsMedia sources. There are limitations to media sources, but theyshould not be ignoredManagement consultancy companiesAcademics themselves. Most academics generate more data than theycan use and analysein a limited timeframe
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Financial data sources: Bloomberg, Reuters, etc.Lateral Thinking about SourcesIt is easy to think along the following lines: “This is mydefined research focus so whereare the relevant sources of data”? The notion of relevance orappropriateness creates amind-set that may not be helpful.It is worthwhile to consider alternative sources of data whichmay have been set up forcompletely different purposes but which will yield uniqueinsights, or represent a sourcethat nobody has used before, or used in that way.Meta-Analysis15Frequently, when we write reports for an organization, we areinvolved in ‘meta-analysis’– it is just never called that. What is meta-analysis? Itconsists of the re-analysis of acollection of research studies that have been subject toanalysis separately, but nottogether. According to Hakim (1987:19) “..the aim of meta-analysis is to provide anintegrated and quantified summary of research results on aspecific question withparticular reference to statistical significance and effectsize (that is the size or strength ofthe impact of one factor on another).” Meta-analysis usuallyrequires quantitative dataable to be subject to statistical analysis. Meta-analysis bydefinition should becomprehensive – all the available studies in the field.In order to understand the inherent limitations of meta-analysis, it is useful to consider aspecific example. A well-known study published in 1982 by JohnKelly was a metaanalysisof job redesign experiments in organizations. Job redesign isthe reshaping ofjobs and task sets in order to improve labour productivityand/or job satisfaction. Kellyexamined a series of research studies in the specific area –195 studies in total.Are the Advantages of Secondary Data Analysis Real?
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Look back at the purported advantages of secondary dataanalysis. They were cost,relative speed, clarity of research domain, possibility oflongitudinal data and the‘second-hand clothes’ argument. Let us consider these pointsin the light of thediscussion.Cost – Cost is normally a definite advantage. Generatinglongitudinal data from scratch isusually impossible, and, if possible, could easily cost$250,000 upwards. Secondarysources may also provide geographical and internationalspread. However, untilinvestigated this cost advantage should not be taken forgranted. The supply of data fromdata archives can be costly and requesting special tabulationsfrom government surveysources can be very costly. Many company data sets areextremely useful, butcommercial data providers can charge up to $65,000subscription per year.Relative Speed – This is a definite advantage of most, but notall, secondary data theses.Library-based or Internet-based research is usually muchfaster. For example, withlongitudinal data, a set of well-run surveys could take sixyears to obtain coverage plusthe analysis time. This is impossible for all thesis writers.16Clarity of Research Domain – As we have seen with meta-analysis,this may be true onlyin part. As the data sets already exist, then it is true thatyou can evaluate them prior touse. However, there are serious issues of sampling frame andthe known population,measurement bias, and lack of reliability.Second-Hand Clothes - Secondary data are dirty and you can onlyblame your oldersister up to a point! You may have to clean up the data, checkit against other sources andcontact organizations to clarify some issues. This can be verytime-consuming. In
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addition, second- hand clothes are dated; the data availableto you may be 10 years out ofdate. You need to address the question of whether you needcurrent data.One often-unrecognised disadvantage is that you lose out onthe training advantage of theresearch process - doing interviews, framing a questionnaire,and handling SPSS or otherstatistical packages. Your research craft training isdiminished. This may not be importantto you, but the issue should be recognized and assessed.ReflectionThe balance between theory and fact in reports is oftenmisunderstood. The role of theoryis to provide a model of the world that assists in decision-making. But for the theory ormodel to have strength it needs to be underpinned by harddata. This also enables theimplications and outcomes to be quantified.It is vital for you to allow time for the research phase tosink in, for the mass of ideas andinformation to swirl about in your mind. From this is likelyto emerge patterns and ideasthat will form the basis for your conclusions andrecommendations. Don't be afraid to toywith a range of ideas at this stage.If you are working on your report with others, this is thetime to brain-storm ideas andjointly make sense of what you have. A team can be a genius,while the individualmembers are just ordinary people.The importance of focusUnder-focusA n example here is of a study of a specific sector, such asthe service sector, the bankingindustry, or mining. The most common problem is for the writerto research everything17ever written on that industry and generate 400 pages ofdescriptive material. What doyou do with this material? There is no obvious limitation,government reports and
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newspaper reports continue to flood out – so the thesis goeson forever. Expansionbecomes infinite and there is too diffuse a focus. This iswhat Howard & Sharp (1983)called “under-focusing”.Over-focusA manager starts by saying they will look at ‘reengineering’,or the ‘learningorganisation’ or ‘knowledge capitalism’ – a current, topical,management term. Theproblem in this case is that the writer spends all their timetrying to define the term - whatis meant by ‘reengineering’? A series of attempted definitionsfollow; the writerproduces ten agonized papers trying to define the term. Ofcourse, the term is just acurrent buzz word used by management consultants to sell apackage. But the writerproject becomes more and more introspective and ends upbecoming too narrow. This iswhat Howard & Sharp (1983) called “over-focusing”.Making sense of your materialPost-it notesIn the case of all lengthy arguments, a useful technique is toformulate sections and puttitle and key points onto small Post-It notes. These can belaid out on a desk and shuffledaround until you are confident that the argument flowslogically.It is much better to do this rather than simply start writingin the hope that you willautomatically create a logical flow.Mind mappingAlternatively, mind mapping is a useful technique. Developedby Tony Buzan, it is auseful way to bring your conscious thinking into line with theorganic way the brainactually works.18ListsIdea generationNote takingOrganising informationPresentationsReports Filing systems
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ShoppingHoliday planningGroupbrainstormingIndividualProblemsolvingMeetingsLecturesMindmapping!6 hatsPersonal analysisgoal-settingselfreviewTo doCommitteesReadingURGENT!
Here are some instructions for how to get started….1. Take a sheet of flipchart paper. Turn it to landscape andpay it on a table.2. In the centre draw the name of the topic you are mindmapping inside an‘icon’ or simple picture that sums it up. For example, if youwere mindmapping a ‘new computer system’ you might put it inside astylised VDU.3. Select key words and print them in upper case letters. Eachword or imagemust be alone and on its own line radiating out from thecentral topic.Words that might spring to mind regarding the computer systemcould be‘applications’, ‘users’, hardware’, ‘suppliers’ etc.4. In the centre the lines are thicker, organic and flowingbecoming thinner asthey radiate outwards. It is useful to use images, symbols,codes anddimension throughout your Mind Map – rather than just words.5. Each line should then branch as associations appear to themain topic. Sofor applications, you might then see ‘word-processing’, ‘orderprocessing’,‘stock control’, etc.196. Additional ideas may emerge that fit other branches – soadd themaccordingly.
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7. Some ideas may fit more than one area of the map so you canmake lateralconnections too. This is why Mind Maps are also called ‘spiderdiagrams’.8. Use colours and emphasis to show associations betweenrelated topics inyour Mind Map. The map must be enjoyable to look at, muse overand easyto remember.20
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CHAPTER FIVESUMMARY, CONCLUSIONS AND RECOMMENDATIONSIntroductionSummary of work doneConclusions drawn from studyRecommendations
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