Project – The impact of marketing research on organisational performance.

CHAPTER ONE:

INTRODUCTION

1.1 Background to the Study

In today’s increasingly competitive and dynamic business environment, organizations face constant pressure to remain relevant, profitable, and responsive to ever-changing market demands. The ability to anticipate consumer preferences, respond to technological advancements, and counter competitors’ strategies is critical to sustaining growth and profitability. In this context, marketing research has emerged as a crucial instrument that enables firms to collect and analyze data, thus informing key strategic decisions that directly affect performance (Kotler & Keller, 2016). Without sound marketing intelligence, businesses risk misaligning their offerings with market needs, leading to reduced customer satisfaction and poor financial results.

Marketing research involves the systematic planning, collection, and interpretation of data related to various aspects of the market, such as consumer behavior, product perceptions, brand image, and competitive trends. It serves as a diagnostic and predictive tool that helps organizations identify opportunities, assess risks, and refine strategies accordingly. By leveraging marketing research, businesses can better understand customer expectations, develop products that meet specific needs, and design promotional strategies that effectively capture market attention (Burns & Bush, 2014). It is particularly critical in consumer-centric industries like textiles, where fashion trends, preferences, and pricing perceptions change frequently.

In urban commercial hubs such as Douala, Cameroon’s economic capital, the retail landscape is highly competitive. The Marché Congo district, where Silas Textile operates, is one of the city’s busiest marketplaces, hosting a diverse range of textile traders and fashion retailers. The vibrant and culturally rich nature of the marketplace contributes to rapidly shifting consumer demands influenced by cultural celebrations, seasonal changes, and socioeconomic factors. In such a setting, marketing research provides textile firms with the intelligence needed to anticipate demand patterns, identify new market segments, and respond to shifting fashion preferences in a timely manner.

Silas Textile has grown to become one of the recognizable names in the Marché Congo textile sector, offering a variety of fabrics, designs, and traditional materials. However, operating in such a fast-paced market demands more than just inventory and experience. Firms must rely on accurate and timely market data to understand consumer preferences, predict upcoming trends, and differentiate their offerings from those of competitors. The use of structured marketing research allows businesses like Silas Textile to maintain alignment with the market, avoid overstocking unpopular products, and tailor their marketing strategies effectively.

Unfortunately, many small and medium-sized enterprises (SMEs) in Cameroon—including textile retailers—still rely heavily on informal feedback mechanisms or intuition rather than formal marketing research. This limits their ability to make data-driven decisions and puts them at risk of being outpaced by competitors who invest in proper market analysis. At Silas Textile, it remains unclear how extensively marketing research is used to inform strategic decisions related to product selection, pricing, customer engagement, and market expansion. As such, there is a pressing need to evaluate whether marketing research practices have a tangible influence on the company’s organizational performance.

Therefore, this study aims to investigate the impact of marketing research on the organizational performance of Silas Textile. It seeks to understand whether and how research practices have contributed to improvements in customer satisfaction, sales volumes, product quality, and market share. By focusing on a single case within a bustling commercial environment, the study will provide insights into how textile businesses in similar contexts can enhance their competitiveness through systematic market analysis. Ultimately, the findings are expected to inform better decision-making at Silas Textile and serve as a reference point for other SMEs operating in dynamic marketplaces.

1.2 Statement of the Problem

Despite the well-documented advantages of marketing research in driving business growth and competitive advantage, many small and medium enterprises (SMEs) in Cameroon, particularly in the textile sector, continue to rely heavily on informal decision-making processes. These businesses often substitute structured research with personal intuition, anecdotal customer feedback, or historical trends, which may no longer reflect current market realities. As a result, firms face significant challenges such as poor market segmentation, ineffective promotional strategies, and misalignment between product offerings and consumer preferences (Ngwa, 2018).

Silas Textile, a major player in Douala’s bustling Marché Congo, is not immune to these challenges. The company operates in a highly competitive environment where customer preferences are diverse and rapidly evolving. In recent years, there has been a noticeable decline in customer loyalty and fluctuating sales performance, indicating potential disconnects between the company’s offerings and market expectations. However, it remains uncertain whether the management at Silas Textile has employed marketing research techniques to identify the root causes of these issues or to improve strategic planning and operational efficiency.

Available evidence suggests that while Silas Textile may occasionally solicit informal feedback from customers, it lacks a systematic and comprehensive approach to marketing research. The absence of structured research tools—such as customer satisfaction surveys, market trend analysis, and competitor benchmarking—hinders the firm’s ability to gather reliable data and make informed decisions. This deficiency may lead to misguided product stocking, ineffective pricing strategies, and missed opportunities for innovation or market expansion.

Furthermore, the failure to integrate marketing research into core business activities undermines the company’s capacity to understand customer behaviors, monitor competitors, and anticipate market shifts. In a volatile and trend-sensitive sector like textiles, this reactive approach to market demands places the business at a strategic disadvantage. Without accurate insights, the firm risks investing in products that do not meet current tastes or failing to capitalize on emerging fashion trends that could drive growth and profitability.

In light of these challenges, this study seeks to critically examine how the application—or lack thereof—of marketing research has influenced the performance of Silas Textile. It aims to assess whether marketing research practices are being used effectively to guide strategic decisions, improve customer satisfaction, and drive sales. The study also intends to identify the specific barriers preventing the adoption of research-driven decision-making within the company. Addressing this problem is essential not only for Silas Textile’s sustainability but also for broader lessons applicable to SMEs within Cameroon’s competitive textile industry.

1.3 Purpose of the Study

The main purpose of this study is to examine the impact of marketing research on the organizational performance of Silas Textile in Douala’s Marché Congo. Specifically, the study aims to:

1. Assess the extent to which Silas Textile utilizes marketing research.
2. Evaluate the relationship between marketing research and customer satisfaction.
3. Examine the influence of marketing research on sales performance and market share.
4. Investigate the challenges facing the application of marketing research at Silas Textile.

1.4 Research Questions

The study seeks to answer the following research questions:

1. To what extent does Silas Textile engage in marketing research activities?
2. How does marketing research affect customer satisfaction at Silas Textile?
3. What is the impact of marketing research on sales performance and market share?
4. What are the major challenges hindering effective marketing research at Silas Textile?

1.5 Research Hypotheses

To guide the study, the following hypotheses are proposed:

1. Ho: There is no significant relationship between marketing research and customer satisfaction at Silas Textile.
2. Ho: Marketing research does not significantly influence sales performance and market share.

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1.6 Significance of the Study

This study holds significant value for the management of Silas Textile, as it offers practical insights into how marketing research can be leveraged to strengthen strategic decision-making processes. In a fast-paced and customer-driven marketplace such as Marché Congo, having a reliable understanding of consumer behavior and market trends is critical. The findings from this study will help the management identify current gaps in their marketing research practices and propose evidence-based recommendations for improving customer engagement, optimizing inventory, and enhancing overall business performance.

Secondly, the study adds to the growing body of academic literature on the role of marketing research in small and medium-sized enterprises (SMEs) in Cameroon. While large corporations often have access to resources and expertise to conduct market analysis, SMEs frequently overlook or underutilize marketing research due to cost constraints or lack of awareness. By focusing on a textile SME, this research highlights the importance of applying marketing research even at smaller operational scales and contributes valuable case-specific knowledge to academic discussions on sustainable business development in emerging markets.

Furthermore, the study is relevant to researchers and students in business, marketing, and entrepreneurship programs. It provides a real-life case study of how marketing research can influence operational outcomes, offering a foundation for further academic inquiry, comparative analysis, and classroom learning. Future researchers can build upon this work to explore other sectors or to conduct broader quantitative studies across regions in Cameroon or other Sub-Saharan African countries.

In addition, the findings will be beneficial to policymakers and development agencies interested in fostering the growth of the private sector, especially in urban markets. Understanding the challenges SMEs face in implementing structured marketing research can help inform the design of supportive programs and interventions. Policymakers can also use the evidence from this study to develop training initiatives, provide incentives, or establish partnerships that encourage the adoption of research-driven strategies among local businesses.

The textile industry itself stands to benefit from the results of this research. Other textile traders and business owners operating in markets similar to Marché Congo may draw lessons from Silas Textile’s experiences and implement changes in their own business strategies. The study can act as a reference for industry-wide discussions on improving competitiveness, customer satisfaction, and profitability through better market analysis and consumer insight.

Lastly, the broader Cameroonian economy could also see indirect benefits from the findings. As more SMEs adopt marketing research techniques, they are likely to become more efficient and competitive, leading to job creation, increased productivity, and sustainable economic growth. By promoting a culture of informed business practices, this study not only addresses the needs of Silas Textile but also contributes to the long-term development goals of the country’s small business sector.

1.7 Scope and Delimitation of the Study

The scope of this study is limited to Silas Textile located in Marché Congo, Douala. It focuses on how marketing research is conducted, its influence on customer satisfaction, and its impact on performance indicators such as sales and market share. The study is confined to data collected from staff and customers of Silas Textile and does not extend to other textile firms. Limitations may include time constraints, potential reluctance of respondents to provide accurate information, and restricted access to internal company data.

1.8 Operational Definition of Terms

To ensure clarity and consistency in the interpretation of key concepts used in this study, the following terms are defined operationally:

• Marketing Research: In this study, marketing research refers to the systematic collection, analysis, and interpretation of data related to customers, competitors, and market trends carried out by Silas Textile to inform decision-making processes. It includes formal methods such as surveys, market analysis, and feedback mechanisms used to understand the business environment.
• Organisational Performance: This refers to the extent to which Silas Textile achieves its business goals, including customer satisfaction, sales growth, market share, and profitability. Performance will be assessed based on internal measures and perceived improvements linked to marketing activities.
• Customer Satisfaction: Defined as the degree to which customers of Silas Textile feel that their expectations regarding products, services, and overall shopping experience are met or exceeded. It may be measured through customer feedback, repeat patronage, and complaints received.
• Small and Medium Enterprises (SMEs): In this context, SMEs refer to independently owned and managed businesses like Silas Textile, which operate with a limited number of employees and capital base, typically serving local or regional markets.
• Market Trends: These refer to observable patterns and shifts in consumer preferences, fashion styles, demand for textile products, or pricing behavior within the Marché Congo market, which influence Silas Textile’s marketing strategies.
• Competitive Edge: The advantage that Silas Textile has over its competitors in terms of price, quality, design, or customer experience, which can be influenced by insights gained through marketing research.

Project – The impact of marketing research on organisational performance.