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Empirical Evidence for a Relationship between Business Growth and the Use of Structured Marketing Information Amongst Food and Drink SME's

By Luca Cacciolatti and Andrew Fearne

Abstract

SMEs present peculiar characteristics that make their marketing distinctive from\ud larger companies. We suggest the lack of resources in SMEs is a barrier to effective\ud marketing and therefore to business growth. SMEs marketing decision-making is\ud affected by whether the SME manages to acquire, analyse and utilise formalised\ud marketing information. This paper analyses the relationship between business\ud growth potential and the use of marketing information in food and drink SMES. The\ud analysis was conducted using multivariate data analysis techniques, specifically PCA\ud and binary logistic regression, on a sample of approximately 300 food and drink\ud SMEs. The logistic regression was significant for both a model (R2=0.18) using the\ud predictors direct effect on growth probability and a model (R2=0.30) using\ud interaction terms. The hypothesised relationships on business growth probability\ud and the use of information have been tested and significant effects have been\ud identified on the interaction amongst the predictors of growth (23% of correlations\ud were significant).\ud \ud Use of formalised marketing information was found to play an important role in\ud generating SME growth in food and drink SMEs. However, SME characteristics\ud played an important role in the way information was used and this affected\ud business growth. Better use of information by SMEs focused their marketing\ud activities. Therefore owner-mangers should be trained to make the best use out of\ud formalised marketing information

Topics: H, H1
Publisher: University of Kent, Canterbury
Year: 2011
OAI identifier: oai:kar.kent.ac.uk:29315

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