Navigating Uncertainty: The Role of Marketing Strategies in Enhancing SME Performance during Economic Volatility
Keywords:
SMEs, economic volatility, digital marketing, relationship marketing, market segmentation, customer retention, sales growth
Abstract
This study examines the role of marketing strategies in enhancing the performance of small and medium-sized enterprises (SMEs) during periods of economic volatility. Using a mixed-methods approach, including a quantitative survey of 300 SMEs and qualitative interviews with 20 SME owners, the research explores the impact of various marketing strategies—such as digital marketing, relationship marketing, market segmentation, brand positioning, and promotional offers—on key performance metrics, including sales growth, customer retention, and profit margins. The results indicate that digital marketing and relationship marketing are the most effective strategies for maintaining and enhancing SME performance during economic instability. Digital marketing was found to have a significant positive impact on sales growth (B = 0.462, p < 0.01) and customer retention (r = 0.56, p < 0.01), while relationship marketing was the strongest predictor of customer retention (B = 0.512, p < 0.01) and profit margins (B = 0.423, p < 0.01). Market segmentation and brand positioning also contributed positively to performance, though to a lesser extent. Traditional advertising and promotional offers were less effective in sustaining growth during volatile periods. Thematic analysis of the qualitative data further emphasizes the importance of digital transformation and maintaining long-term customer relationships as key strategies for navigating economic uncertainty. These findings suggest that SMEs must prioritize flexible, customer-centric, and digitally focused marketing approaches to enhance resilience and performance in the face of market volatility.
References
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33. YahiaMarzouk, Y., & Jin, J. (2023). Linking environmental scanning and organizational learning with organizational resilience of Egyptian SMEs: the moderating role of environmental uncertainty. International Journal of Organizational Analysis, 31(6), 2753-2792.
34. Zahoor, N., & Lew, Y. K. (2023). Enhancing international marketing capability and export performance of emerging market SMEs in crises: strategic flexibility and digital technologies. International Marketing Review, 40(5), 1158-1187.
35. Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105, 502-514.
36. Zakeri, B., Paulavets, K., Barreto-Gomez, L., Echeverri, L. G., Pachauri, S., Boza-Kiss, B., ... & Pouya, S. (2022). Pandemic, war, and global energy transitions. Energies, 15(17), 6114.
2. Achi, A., Adeola, O., & Achi, F. C. (2022). CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility. Journal of Business Research, 139, 771-781.
3. Alshurideh, M. T. (2016). Is customer retention beneficial for customers: A conceptual background. Journal of Research in Marketing (ISSN: 2292-9355), 5(3), 382-389.
4. Bannon, D. P. (2005). Relationship marketing and the political process. Journal of Political Marketing, 4(2-3), 73-90.
5. Baumann, C., Hoadley, S., Hamin, H., & Nugraha, A. (2017). Competitiveness vis-à-vis service quality as drivers of customer loyalty mediated by perceptions of regulation and stability in steady and volatile markets. Journal of Retailing and Consumer Services, 36, 62-74.
6. Bocconcelli, R., Cioppi, M., Fortezza, F., Francioni, B., Pagano, A., Savelli, E., & Splendiani, S. (2018). SMEs and marketing: a systematic literature review. International Journal of Management Reviews, 20(2), 227-254.
7. Bodlaj, M., & Čater, B. (2019). The impact of environmental turbulence on the perceived importance of innovation and innovativeness in SMEs. Journal of Small Business Management, 57, 417-435.
8. Bolton, R. N., & Tarasi, C. O. (2017). Managing customer relationships. In Review of marketing research (pp. 3-38). Routledge.
9. Bolton, R. N., & Tarasi, C. O. (2017). Managing customer relationships. In Review of marketing research (pp. 3-38). Routledge.
10. Camilleri, M. A., & Camilleri, M. A. (2018). Market segmentation, targeting and positioning (pp. 69-83). Springer International Publishing.
11. Carter, T. (2010). Risk and uncertainty. Journal of Hospital Marketing & Public Relations, 20(1), 66-86.
12. Centeno, E., Cambra-Fierro, J., Vazquez-Carrasco, R., Hart, S. J., & Dinnie, K. (2019). The interplay between SME owner-managers and the brand-as-a-person. Journal of Product & Brand Management, 28(4), 555-572.
13. Christina, I. D., Fenni, F., & Roselina, D. (2019). Digital marketing strategy in promoting product. Management And Entrepreneurship: Trends Of Development, 4(10), 58-66.
14. Fan, Q., & Ouppara, N. (2022). Surviving disruption and uncertainty through digital transformation: A case study on small to medium-sized enterprises (SME). In Moving businesses online and embracing e-commerce: Impact and opportunities caused by COVID-19 (pp. 1-22). IGI Global.
15. Gherghina, Ș. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(1), 347.
16. Huang, A., & Farboudi Jahromi, M. (2021). Resilience building in service firms during and post COVID-19. The Service Industries Journal, 41(1-2), 138-167.
17. Kedi, W. E., Ejimuda, C., Idemudia, C., & Ijomah, T. I. (2024). Machine learning software for optimizing SME social media marketing campaigns. Computer Science & IT Research Journal, 5(7), 1634-1647.
18. Lam, R., & Burton, S. (2006). SME banking loyalty (and disloyalty): a qualitative study in Hong Kong. International journal of bank marketing, 24(1), 37-52.
19. Matinaro, V., Liu, Y., & Poesche, J. (2019). Extracting key factors for sustainable development of enterprises: Case study of SMEs in Taiwan. Journal of cleaner production, 209, 1152-1169.
20. Miklian, J., & Hoelscher, K. (2022). SMEs and exogenous shocks: A conceptual literature review and forward research agenda. International Small Business Journal, 40(2), 178-204.
21. Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45, 467-489.
22. Petzold, S., Barbat, V., Pons, F., & Zins, M. (2019). Impact of responsive and proactive market orientation on SME performance: The moderating role of economic crisis perception. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 36(4), 459-472.
23. Prasanna, R. P. I. R., Upulwehera, J. M. H. M., Senarath, B. D. T. N., Abeyrathne, G. A. K. N. J., Rajapakshe, P. S. K., Jayasundara, J. M. S. B., ... & Gamage, S. K. N. (2021). Factors determining the competitive strategic positions of the SMEs in Asian developing nations: Case study of SMEs in the agricultural sector in Sri Lanka. Economies, 9(4), 193.
24. Saura, J. R., Palacios-Marqués, D., & Ribeiro-Soriano, D. (2023). Digital marketing in SMEs via data-driven strategies: Reviewing the current state of research. Journal of Small Business Management, 61(3), 1278-1313.
25. Schwab, L., Gold, S., & Reiner, G. (2019). Exploring financial sustainability of SMEs during periods of production growth: A simulation study. International Journal of Production Economics, 212, 8-18.
26. Sheth, J. N., Parvatiyar, A., & Sinha, M. (2012). The conceptual foundations of relationship marketing: Review and synthesis. Economic sociology_the european electronic newsletter, 13(3), 4-26.
27. Tajeddini, K., Gamage, T. C., Tajeddini, O., & Kallmuenzer, A. (2023). How entrepreneurial bricolage drives sustained competitive advantage of tourism and hospitality SMEs: The mediating role of differentiation and risk management. International Journal of Hospitality Management, 111, 103480.
28. Tiep Le, T., Ngo, H. Q., & Aureliano-Silva, L. (2023). Contribution of corporate social responsibility on SMEs' performance in an emerging market–the mediating roles of brand trust and brand loyalty. International Journal of Emerging Markets, 18(8), 1868-1891.
29. Tolstoy, D., Nordman, E. R., & Vu, U. (2022). The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs. International Business Review, 31(3), 101946.
30. Vieira, V. A., de Almeida, M. I. S., Agnihotri, R., da Silva, N. S. D. A. C., & Arunachalam, S. (2019). In pursuit of an effective B2B digital marketing strategy in an emerging market. Journal of the Academy of Marketing Science, 47(6), 1085-1108.
31. Wang, X., Chen, A., Wang, H., & Li, S. (2017). Effect of export promotion programs on export performance: evidence from manufacturing SMEs. Journal of Business Economics and Management, 18(1), 131-145.
32. Weaven, S., Quach, S., Thaichon, P., Frazer, L., Billot, K., & Grace, D. (2021). Surviving an economic downturn: Dynamic capabilities of SMEs. Journal of Business Research, 128, 109-123.
33. YahiaMarzouk, Y., & Jin, J. (2023). Linking environmental scanning and organizational learning with organizational resilience of Egyptian SMEs: the moderating role of environmental uncertainty. International Journal of Organizational Analysis, 31(6), 2753-2792.
34. Zahoor, N., & Lew, Y. K. (2023). Enhancing international marketing capability and export performance of emerging market SMEs in crises: strategic flexibility and digital technologies. International Marketing Review, 40(5), 1158-1187.
35. Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105, 502-514.
36. Zakeri, B., Paulavets, K., Barreto-Gomez, L., Echeverri, L. G., Pachauri, S., Boza-Kiss, B., ... & Pouya, S. (2022). Pandemic, war, and global energy transitions. Energies, 15(17), 6114.
Published
2024-09-30
How to Cite
Ombir Yadav, & Dr. S N Mahapatra. (2024). Navigating Uncertainty: The Role of Marketing Strategies in Enhancing SME Performance during Economic Volatility. Revista Electronica De Veterinaria, 25(1S), 1179-1188. https://doi.org/10.69980/redvet.v25i1S.1077
Section
Articles
