An analysis of factors affecting the effectiveness of SME marketing in Tanzania: a case study of food processing firm: Chari foods and Kishenda enterprises.

This study examined factors contributing to effectiveness of SME’s marketing in Tanzania. Specifically, the study sought to determine the extent to which financial capacity affect effectiveness of SME’s marketing in Tanzania, the extent to which Knowledge and skills affects effectiveness of SME’s in Tanzania and the extent to which technology affects effectiveness of SME’s in Tanzania. A sample of 70 respondents was selected using purposive and convenient sampling techniques. Data were analysed with the help of Statistical Package for Social Science (SPSS) using tests such as Factor Analysis, Pearson Correlation and validity testing using Cronbachs’s Alpha. The study shows that Finance capacity, Human Resource and Technology affects effectiveness of SME’s marketing in Tanzania. Also, the study shows that there is negative correlation between the three measures (finance, human resource and technology) with SME’s marketing development. A number of challenges which face SME’s marketing were identified. Furthermore, the study reveals there being opportunities for improving SME’s marketing development. The study also provides recommendations of what should be done to develop SME’s marketing growth in Tanzania. These includes encourage innovations, to encourage universities and other technical institutions to participate in SME’s development, release SME’s from labour and tax regulations, to conduct proper training programs and to conduct skills development programmes.