Effects of Promotion Mix Tools on Brand Equity of Small and Medium-Sized Enterprises in Ilala Municipality, Tanzania

Abstract

The study aimed to assess the impact of promotion mix tools, including advertising, sales promotion, and direct marketing, on brand equity in Tanzania, focusing on SME customers in the Ilala Municipality. A quantitative research approach and explanatory research design were employed, with a sample of 170 participants. The data was analysed using a stepwise regression model aided by SPSS version 25. Such an approach facilitated the broad investigation of the influence of promotion mix and communication tools (advertising, sales promotion and direct marketing) on brand equity for SME consumers in Ilala Municipality, Tanzania. The results indicated that advertisement, sales promotion, and direct marketing moderately affected brand equity except for direct marketing, which positively correlated to high. All hypotheses were accepted with a p-value<0.05. The study offers insights to managers by underscoring the need for purposeful design and execution of promotional measures affecting brand equity or indicating integration between promotional activity and higher-order strategic considerations. Policymakers are encouraged to support small and medium-sized enterprises (SMEs) with the resources, knowledge, and infrastructure required to implement marketing strategies effectively. Nevertheless, one must bear in mind that some study limitations are associated with the limited scope of SME customers within Ilala Municipality, where respondent targets were made, which may limit generalisation to other areas. Moreover, following a quantitative approach may eliminate qualitative insights, which could be used to gain a deeper understanding of the effect of promotion mix tools on brand equity.