MARKETING IN JUA KALI SECTOR (SMALL AND MEDIUM ENTERPRICE).

Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably or Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. The use of marketing within the small and medium enterprises in the relationship they have with the marketplace becomes more and more a necessity leading to the market oriented activities as well as understanding and implementing marketing as a philosophy. According to a marketing perspective, the activities, and especially the marketing activities within the small and medium enterprises shall not take place randomly. The scarcity of resources which is a characteristic of this type or enterprises, as well as the objectives that they set to themselves regarding client satisfaction and maximization of economical efficiency implies a strict planning of their sequence of activities following a strategy which was assumed before. According to this perspective, the marketing strategic planning emerges into a complex process using the scientific instruments such as segmentation, positioning and marketing mix. Main marketing methods used in Jua Kali sector include: Personal selling. Customer networking. Word of mouth. Publicity. Direct marketing. Marketing Arrangements Jua Kali sector: A majority (78%) of the small and medium enterprises employed direct marketing and 22% were engaged in non-direct marketing arrangements such as sub-contracting, joint venture, purchase agreement and integrated operations. In Palawan, direct selling was fully utilized. Cash on Delivery (C.O.D.) is the most common (90.4%) term of sale, with credit (24.1%) cash advance (11.8%) and installment (7.1%). The high C.O.D. rate reflects the need of Jua Kali for arrangements that will provide those cash for continued operation. There are instances when middlemen provide the Jua Kali with their input requirements but arrange to be paid with the production at an agreed price. This usually results in a lower profit margin for the entrepreneur. The issue that arises is whether government either directly or through the banking system can provide financing for working capital which would allow these firms to provide credit and increase sales.

Distribution Channels Jua Kali sector: In the regional study the major market for small and medium enterprises has been the final consumers. Around 83% of them sold directly to domestic consumers. However, 64% of these firms did not deal exclusively with this channel but also sold to local retailers and merchants, institutional users, agents and industrial buyers. Enterprises in Palawan sell directly to household consumers (69.5%), institutional users (15%), retailers (21.1%) and wholesalers (26.4%). In the export market, 31% of export-oriented firms tapped agent/brokers, followed by direct consumers, merchants and to a lesser extent. Industrial buyers and retailers. Most firms sold all their goods through agents or brokers. The small and medium enterprises claimed they were often very strict in delivering on time because meeting deadlines was deemed a critical factor in maintaining good relationships with their distributers or users. Firms under non-direct marketing arrangements asserted they met delivery schedules while those in the food processing industry often extended their deadline. Further, failure to meet delivery dates has reportedly not had ill consequences for nearly half of the firms. For the others, the penalties included cancellation of orders and reduction in volume ordered. The issue that surfaces here is what appropriate distribution channel to utilize considering the market being served, the product being sold and the level of expertise of the small enterprise. Also whether the government should intervene to assure that Jua Kali at a certain level of development can penetrate the Metropolitan if not the export market. Pricing in Jua Kali sector: The pricing strategies commonly used based on the regional study, were cost-oriented, competition-oriented and demand oriented. Under cost-oriented pricing, mark-up pricing was most popular because of simplicity and ease to use. Going rate was adhered to by firms who were keen on meeting competition. This strategy was used extensively in the garments industry. Food firms offered quantity or cash discounts to induce customers to buy in bulk. Demandoriented pricing such as price discrimination was used by some food firms and commonly found in export-oriented firms. In general, an attractive package and a higher price were fixtures in export goods while locally distributed products would have simple packaging and would be set at a lower price per unit. In developing countries government sometimes issues regulations as price controls which affect the firm's ability to set appropriate prices. However this is truer or more enforceable in the urban than in the rural areas. Advertising and Promotion in Jua Kali sector: Aside from developing the product, pricing it right and making it easily available to the consumers, small enterprises also promote their products. The main objective of these firms in promoting their products is to inform their buyers about their product and to stimulate a demand for them. Some intended simply to sustain the interest of the buyers in the product while others have the higher goal of substantially increasing their share of the total market.

The promotion mix employed by the small companies varied depending upon the need of the individual firm and its capability to shoulder the corresponding costs. Generally, a combination of two or more approaches was used by the firms in all industry subsectors. Personal selling was the most widely used promotional tool prior to making a sale. Typified by an oral presentation of a product to a prospective buyer, it is the cheapest and the simplest approach. Another means by which a product gets known to a customer is through word of mouth testimonial. This however does not constitute a deliberate effort on the part of the entrepreneur to promote his product because it is purely voluntary on the part of the customer. The other approaches used were samples, store displays, billboards/store signs, telephone canvass and direct mail. Other promotional tools utilized by more progressive firms were advertisement placements in magazines, journals/newspapers, radio and television spots as well as participation in fairs. In Palawan, personal selling was top at 45.9 % followed by word-ofmouth by 45.4%. Considering the limited resources and expertise, small firms in their advertising and promotion come up with material which may not meet market demand. Some form of assistance in drawing up programmes and preparation of even such simple things as brochures may be required for Jua Kali that are breaking into locations outside their immediate vicinity. Information Network Jua Kali sector: Entrepreneurs usually gather information on such marketing factors as: product characteristics, total market, distribution, consumers, competitors and government regulations. The information gathered updates them and helps them to adjust their operations to the current market situation. Among the survey respondents, 74.7% were in one way or another involved in getting data, the most common of which being the prices of products, consumers' buying habits and the competitors' areas of strength. It had been mentioned earlier that market research was only a very minor function of the small firm. The orientation of market research was to determine customer needs and the degree to which the firm was satisfying them. Since most firms claimed that they gathered information and they were market-oriented, this could be a casual type of market research. Direct contact with people provided vital marketing information to entrepreneurs. Thus, the leading source of information was the consumer. Other sources included suppliers, salesmen, competitors, middlemen, news releases and trade publications. Some entrepreneurs (25%) did not gather information on marketing factors, arguing the absence of a need for it in doing business. This could mean that a) the manufacturer claimed to know everything that is necessary in running a business, b) his firm occupied a quite stable position in the industry, or c) he ran a small company with simple marketing requirements. It could also imply an attitude on the part of the entrepreneur of taking on the challenges as they come. Another reason was the lack of time to attend to gathering information. Other reasons were the unavailability of the required information, lack of access to the source of information, lack of money to undertake the activity and uncertainty as to what data may be helpful to the enterprise. Again, it may be necessary to have government support in identifying market information needs and making this available to the enterprise.

Infrastructure and Support Facilities Jua Kali sector: While the regional study showed that small and medium firms indicated a minimal requirement for infrastructure and support facilities in marketing their products, this was not the case for Palawan. For the larger segment of the small enterprise sector, the requirement for such support hardly exists due to their limited geographical coverage, small production volume, fast turnover of products, adequate facilities of the firm itself and simple marketing procedures. Those firms that wanted to expand required these facilities. Among those who mentioned a need, the requirements were mostly for trucking and warehouse/storage facilities and for collection points and handling equipment. A look at the internal marketing systems of the Jua Kali raises the issues of the appropriate marketing strategies, pricing, marketing organization, competitive strategies, product market, distribution channels, advertising and promotion, information network and infrastructure and support facilities for the small firm. To a great extent this marketing system cannot operate well without the proper production, financial and administrative systems. More importantly, in a situation where the firm does not have the internal resources to adequately address itself to the demands of the market; to what extent should assistance be given to it? And which sector should provide the help - the government or the private sector through industry associations?. Marketing Assistance for Small and Medium Enterprises in Kenya: In the area of marketing for domestic firms, a number of measures have been implemented that appear to lay down the necessary policy and infrastructure environment. Generally these thrusts seek to: (a) Improve the efficiency and cost-effectiveness of local manufactures, and (b) Promote their exporting capabilities.

An integrated export development strategy concentrating promotion efforts on seven nontraditional exports namely: electronics, garments, furniture, fresh and processed foods, gifts and house wares, footwear and leather goods, was conceived and implemented. In support of these development thrusts, institutional projects have also been undertaken to improve the marketing of products. These include among others, the Market Encounter Program which brings together regional suppliers, producers and national buyers; Best in the World Program where foreign product specialists are brought to the In Kenya to help local manufacturers in product development and adaptation; and the Golden Shell Award which is given to exporters who have made outstanding achievements in international markets.

Experience of Small and Medium Enterprises on Marketing Assistance in Kenya: Marketing assistance is extended to the small and medium industry sector largely by government institutions. The impact of such assistance, in general, can be gauged from the entrepreneurs' awareness of these existing programmes and the agencies carrying them out. Compared with the more direct forms of assistance, (e.g., credit financing), marketing assistance is less commonly known to small and medium entrepreneurs. Only about 29.5% of entrepreneurs in the regional survey were aware that such forms of assistance existed. Promotion of Small and Medium Enterprises in Kenya: The past and present development plans have expressed the general policy of encouraging economic activities which permit the greater use of manpower to minimize unemployment. The In Kenya development plans for the period 1974-1977, 1983-1987 and the recent economic recovery programmed clearly reflect the bias favoring small enterprises. Among the objectives of the plans are: 1. To increase foreign exchange earnings and savings through export promotion particularly of non-traditional manufactures and agro-based products; 2. To accelerate employment generation through the development and promotion of labor intensive agro-based and resource-based small and medium industries; and 3. To equitably distribute the benefits of industrialization through the dispersal of industries. To attain these objectives, specific industrial policies and strategies have been laid down which among other things, include; (a) Increased financing to regionally dispersed cottage, small and medium industries; (b) Provision of support to start-up operations as well as technical and marketing assistance; (c) Greater participation of the private sector in the development thrust and establishment of more private industry associations throughout the country to serve as links between the small entrepreneurs and the rest of the business world; (d) Development of indigenous raw materials to ensure adequacy of their supply; (e) Rationalization and restructuring of key industry sectors; and (f) Focused and organized export promotion for the priority export products.

CONCLUSION: The small and medium enterprises as main development factor for the present economy represent a challenge for the modern marketing which is required to respond through adapting its entire scientific instruments to the particularities of this type of organizations. Therefore, the market place seen from a marketing perspective represents the central element of any activity within the enterprise. As a result, the development of the small and medium enterprises depends very much on their capacity to set the general, strategic and tactical planning a central role within their activities which would lead to the achievement of the general marketing objectives of those types of organizations and help them to grow into formal business that will contribute to the growth of the economy as a whole. REFERENCES: Marketing in small medium enterprise, book by- McDaniel, C., Lamb, C.W. and Hair, J.F. (2006), Introduction to Marketing, 8th ed., South Western Publishers, Cincinatti, OH. Marketing for small business, website-www.http//s8380e08.htm, last accessed on 5-10-2011. Marketing in Jua kali sector, website-http://www.sln.org.uk/geography/images/Uganda/7.Street % 20market%20 Kampala%20suburb.JPG (accessed on 5-10-2011.)