The impact of marketing communication strategies on the performance of small independent retailers in Soweto, South Africa

Abstract

Small independent retailers in Soweto, a township of Johannesburg in South Africa, are losing business due to the emergence of large retailers in the township area. These large retailers are taking customers away from small independent retailers. The purpose of this study was to investigate the impact of marketing communication strategies on the performance of small independent retailers in Soweto, South Africa. The study employed a descriptive research methodology that involved a quantitative research design. 300 small independent retailers in three townships in Soweto, namely, Meadowlands, Dobsonville and Protea North were targeted, and the self-administered printed questionnaires were distributed to these retailers. Data was analysed by means of descriptive statistical analysis, factor analysis, regression analysis and ANOVA. The results depict that small independent retailers have a positive attitude towards marketing communication strategies. Small independent retailers were found to utilise word-of-mouth content and personal selling more in their businesses, while moderately using internet and social media. The results of the research study further revealed that marketing communication strategies (digital marketing, advertising, internet and social media) have a positive impact on the performance of small independent retailers. The study also found that the major challenges experienced by small independent retailers are electricity outages (load-shedding), the high cost of marketing communication tools, crime, and selecting the right location for the business. The key recommendation stemming from the study is that there is a need for more research on small independent retailers to identify the marketing communication strategies preferred by their customers. The study should be from the customer’s perspective. Future studies should employ different research methodologies in order to delve deeper into determining why small independent retailers in Soweto do not utilise digital marketing, advertising, direct marketing, sales promotion, and word-of-mouth message involvement.