Abstract
Small and medium-sized enterprises (SMEs) play an important role in the development
of an economy, including that of South Africa. Because of this, many programmes are
implemented by governments and other stakeholders to support SMEs. Despite this, the
growth and performance of SMEs are often unsatisfactory. Research has attributed this
poor performance and high failure rate to, amongst other factors, poor marketing
practices. Focusing on SMEs from the public transport industry, this study aims to
examine the level of customer orientation in marketing mix strategy formulation and
implementation, and the influence thereof on marketing performance. The minibus taxi
industry is a significant role player in the public transport market. Statistics show that it
accounts for as much as 65% of all public transport commuter trips. Individual
businesses within the industry are organised into co-operative arrangements, known as
taxi associations.
In order to address the research problem, a conceptual framework was developed that
linked customer orientation in marketing mix strategy formulation and implementation to
performance. The study was carried out in two phases. The first phase involved the
collection of qualitative data, using focus group discussions. Four focus group
discussions were conducted with a total of 43 minibus taxi owner-managers. The
second phase of the study involved the collection of quantitative data, using structured
questionnaires administered to a total of 256 owner-managers and 640 minibus taxi
customers.
The findings show that the strategy formulation process followed by taxi associations
was consistent with the demands introduced through adopting a customer orientation.
The findings also indicate that inclusive participation in marketing mix strategy
formulation as well as appropriate marketing strategy formulation, defined as
consideration of internal and external factors, and including the integration of these
during marketing strategy formulation, has a significant influence on owner-managers’
level of commitment to formulated strategies. Commitment to strategy was, in turn,..
Ph.D. (Marketing Management)