VALENTINE CHADYIWA

SMMES IN SOUTH AFRICA AND THE IMPACT OF SOCIAL MEDIA AND THE
OPPORTUNITIES PRESENTED BY THE GROWTH OF BRICS

MNM2615

PORTFOLIO ASSIGNMENT
TABLE OF CONTENTS

1. SECTION 1 – BACKGROUND OF THE SME/SMME ........................................................... 3

1.1 A brief background on Moetapele Projects (Pty) Ltd ............................................... 3
1.2 Demographics, Services and Clientele ........................................................................ 3
2. SECTION 2 ................................................................................................................................... 4
2.1 Assignment 01 Corrections and Suggestions ........................................................... 4
2.1.1 Key Concepts .............................................................................................................. 4
2.1.2. Implications, growth and opportunity of BRICS ............................................... 4
2.1.3 Question 2: Demography ......................................................................................... 6
2.1.4 Question 3: Migration and Change in Population in Africa ............................ 8
2.1.5 Question 4: African Factor Markets ...................................................................... 9
2.1.6 Conclusion ................................................................................................................. 11
3. SECTION 3 ................................................................................................................................. 11
3.1 Impact of Social Media on African Culture................................................................ 11
3.2 Social Class of Moetapele Projects (Pty) Ltd ........................................................... 14
3.3 Generic Marketing Communication Model ................................................................ 15
5. SECTION 4 - RECOMMENDATIONS .................................................................................... 16
REFERENCES ................................................................................................................................... 17

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 1. SECTION 1 – BACKGROUND OF THE SME/SMME

1.1 A brief background on Moetapele Projects (Pty) Ltd

Moetapele Projects (Pty) Ltd (MP) is a local SMME specialising in ceilings, dry
walling, partitions and brickwork in the construction industry. Moetapele Projects
is a local subcontractor and could be classified as a technical SMME. The owner,
Bontle Makgomo is a woman, and the business operates out of her extended home
and it employs seven workers who are all multi-skilled in the services they provide.
The staff consists of two female and five male workers.

1.2 Demographics, Services and Clientele

Moetapele Projects is located in Mankweng, which is a township of approximately

34,000 people just outside of Polokwane, in Limpopo. The specific services that MP
provides are as follows;
1. Brickwork: MP provides skilled labour services related to the laying of bricks,
including the preparation of the site, mixing of mortar, and laying of the bricks to
construct walls, arches, and other structures.
2. Ceiling: MP provides skilled labour services for the installation of ceilings, including
the preparation of the site, installation of the ceiling framework, and installation of
the ceiling boards or tiles.
3. Dry walling/Partitions: MP provides skilled labour services for the construction of
partitions, including the framing, insulation, and installation of the partition boards.
It is worth worth noting that in all of the cases above, MP is not responsible for
manufacturing the actual bricks, ceiling boards or partition boards. Rather, they provide
the skilled labour required to install these materials in accordance with the
specifications provided by the main contractor or client. Overall, the services provided
by MP are focused on providing highly skilled and experienced labour services to
ensure that the construction project is completed to a high standard, on time and within
budget.
MPs current customers are mostly large contractors who are undertaking large
construction projects within the Limpopo province. The government departments in the
province have been building schools, houses, sanitation facilities and clinics. MP have
been fortunate to be appointed on the basis of their reputable but small and very skilled
team. MP has also benefited from the women empowerment drive that has slowly been
picking up steam in the industry. The residents of Mankweng have also been acquiring
the services of MP for the construction of family homes.

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 2. SECTION 2

2.1 Assignment 01 Corrections and Suggestions

2.1.1 Key Concepts

According to (InstituteofMedicine, 2014), the BRICS countries are emerging as an

important voice in global economic, political, and financial discourse. They are
achieving rapid economic growth, they are agents of innovation, they have almost half
the world's population, in many sectors they are playing an important leadership role
on the international stage. The growing population thus provides a platform for market
growth as demand for goods and services will grow in response to the burgeoning
population, which also pushes migration to other countries thus creating opportunities
for the remaining entrepreneurs and in reverse creating opportunities for the host
countries as the migrants will also seek goods and services , increasing demand for
local SMMEs.

2.1.2. Implications, growth and opportunity of BRICS

When considering the demography of Africa, it should be noted that the continent is
currently the second most populous in the world, after Asia. In addition, it is also the
continent with the fastest growing population. It should also be noted that Africa’s
population is largely young and the continent has experienced the rapid penetration of
information and communication technologies, the internet and mobile phones in
particular. The number of people making use of social media is also increasing fast.
(Makhitha, 2018)

It should be highlighted that Africa is also experiencing a trend of growing consumer

demand and an emerging middle class, which are responsible for the high demand for
consumer goods and services. (UNISA, 2018). From 2010 to 2015, countries like
Angola, Botswana and South Africa had positive net migration rates meaning that the
number of immigrants into these countries was higher than the number of emigrants.
(Makhitha, 2018)

2.1.2.1 The Emergence of BRICS

BRICS is an acronym for a group of five major emerging economies: Brazil, Russia,
India, China, and South Africa which joined in 2010. The term was coined by Jim

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 O'Neill, then chairman of Goldman Sachs Asset Management, in 2001. BRICS was
formed as an alternative institution that would provide financial aid to developing
countries. The organization’s objective is to establish self-governance responsible for
achieving developmental and economic objectives with member states without
depending on any external entities like the World Bank” (Kahn, 2011)

The BRICS countries are characterized by their large populations, fast-growing

economies, and increasing global influence. The emergence of BRICS has the
potential to assist developing countries in several ways, including trade, marketing,
and innovation. (Siddiqui, 2016). The following are some examples:

The emergence of BRICS has the potential to assist small, medium, and micro-sized
enterprises (SMMEs) in developing countries in several ways, including
communication, marketing, and migration.

1. Communication - The BRICS countries are investing in communication infrastructure

to improve connectivity among member countries and with the rest of the world. For
example, in 2014, the BRICS countries launched the BRICS Cable, a high-speed
internet cable that connects the five countries. This cable will help to improve internet
connectivity and promote e-commerce, which is expected to boost trade and economic
growth. Improved communication infrastructure will benefit SMMEs by enabling them
to reach new markets, communicate more effectively with customers, and access
information to improve their products and services. (Abdenur, Folly, Moura, Jordão, &
Maia, 2014)

2. Marketing: The BRICS countries have a combined population of over 3 billion people,
which makes it one of the largest consumer markets in the world. By working together,
the BRICS countries can develop marketing strategies that cater to their unique cultural
and economic needs. For example, the BRICS countries have established the BRICS
Business Council, which aims to promote trade and investment among member
countries. The Council has identified several priority sectors, including agribusiness,
energy, infrastructure, and technology.

SMMEs in these sectors can benefit from increased access to markets and investment.
The BRICS countries have a combined population of over 3 billion people, which
makes it one of the largest consumer markets in the world. By working together, the

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 BRICS countries can develop marketing strategies that cater to their unique cultural
and economic needs. (BRICS, 2012)

3. Migration: The BRICS countries are working to facilitate the movement of people and
goods among member countries. For example, in 2014, the BRICS countries
established the BRICS Business Travel Card, which allows business travellers to enter
and exit member countries without a visa. This card simplifies the process of doing
business in BRICS countries, which can benefit SMMEs by reducing the time and cost
of travel. (BRICSBusinessTravelCard, N.p.)

According to (AFRODAD, 2013), BRICS have however offered an interesting trajectory

for an alternative economic model that moves African developmental agenda further
by ensuring job creation, economic growth and equity.

The above factors would therefore go a long way in assisting Moetapele to increase
the scope of their service provision. Although they are an SMME and have largely
operated as a subcontracting opportunity within BRICS created by immigration means
that the demand for houses and infrastructure in general will increase thus affording
Moetapele the chance to expand services to migrants as they flood the country.
Property developers are riding this wave and building housing estates and the
government is building affordable housing, all of which will augur well for an SMME
like Moetapele as it presents more opportunities for work in the construction sector.
The granting of financial loans as advanced by the BRICS strategies of growth will also
assist Moetapele in acquiring finance to expand their business or improve the quality
offering as they would be able to acquire materials on time and thus complete projects
on time or even use the funds for training of community ,members to empower locals
and eventually employ them as well.

2.1.3 Question 2: Demography

Demography is the statistical study of human populations, which examines the size,
structure, and movements of populations over space and time and the factors that
influence the changes in the above. (Makhitha, 2018) The population of Mankweng
itself is approximately 34,000, however the nature of Moetapele’s business makes it
attractive to the province as a whole.

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According to (Statssa, 2016), Limpopo’s population increased to 5,8 million in 2016
from 5,4 million people in 2011, which made it the fifth largest province in the country
with regards to population size. The province has also seen an increase in the number
of households from 1,4 million in 2011, to 1,6 million in 2016 (Statssa, 2016). It is
further stated by (Statssa, 2016) that Limpopo has the highest proportion of
households living in formal dwellings (88,9% or 1,4 million) and the lowest number of
informal dwellings (4,8% or 77 371) in the country, while having about 5,1% (81 747)
of households living in traditional dwellings.

According to (TheLocalGovernmentHandbook, 2021) the primary driver of economic

activity is mining as Limpopo is rich in mineral deposits, including platinum-group
metals, etc, as well as mineral reserves such as gold, emeralds, scheelite, magnetite,
vermiculite, silicon and mica. The province is thus a typical developing area which
exports primary products and imports manufactured goods and services.

The growth in population and availability of economic opportunities will enhance the
chances of Moetapele getting work as there is already a demand in housing due to
population growth from the rural to urban migration as people seek employment
opportunities and a perceived better life with regards to the availability of services such
as water and electricity.

The footprint for marketing of the SMME is greatly enhanced as well as the province
has a lot of younger people, the median age being around 22 years. The use of
technology and digital information platforms has become widespread as literally every
person has a smart phone.

The fact that Moetapele has two female and five male operatives has also in a way
contributed to more enquiries about service offerings and subsequently better project
opportunities. This in part started off as a novelty seeing two women busy with dry
walling and ceiling installation to actually drawing the attention of local business people
and authorities who want to promote gender equality within the trades industry. These
clients have further helped in marketing Moetapele’s business within the province and
is now currently attracting a lot of young female apprentices who want to learn the
trade and hopefully open their own businesses in the future. It is hoped that the rise to
prominence of Moetapele’s business will spread to other provinces and also
neighbouring countries.

The growth in the middle class and the rural to urban migration will also contribute to
more opportunities for Moetapele, as the need to build and own houses/properties
increases.

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2.1.4 Question 3: Migration and Change in Population in Africa

A majority 5,4 million (93,1%) of the people living in the province were born in the
province out of the 5,8million and further to that about 400 000 of the residents in
Limpopo were born elsewhere in the country and also outside South Africa (Statssa,
2016).

A significant driver of migration is economic opportunities. Limpopo has borders with

Zimbabwe, Mozambique and Botswana and the province finds itself playing hosts to
immigrants from the above-named countries. The neighbouring African migrants are
crossing over into South Africa and Limpopo in search of better job opportunities,
education and or improved living conditions. The influx of migrants has thus led to an
increase in population and more diverse societies. However, this large influx of
refugees and migrants has also placed significant strain on resources, leading to social
and economic challenges. African governments need to find ways to manage migration
effectively to ensure that it benefits both the migrants and the host countries.

The resultant demand for housing, schooling and business infrastructure will assist
Moetapele not only with subcontracting opportunities but also direct contract
opportunities. The growing population has resulted in the demand for houses and
infrastructure in general increasing thus affording Moetapele the chance to expand
services to the migrants as they flood the country but also provide an opportunity for
Moetapele to also learn other skills from some of the migrant workers. Moetapele could
temporarily employ some highly skilled migrants to upskill their current staff and when
the training is done, the trained employees can also pass on their knowledge to the
young and unemployed youth in the province.

It might seem a far-flung thought but as the influx of migrants has also burdened the
healthcare system, there will be a need for the expansion, revitalization and
refurbishment of current health facilities in Limpopo province. An opportunity exists for
Moetapele as there will be a lot of infrastructure work that will need to be executed. A
growing reputation as a woman-owned business, coupled with the fact that they have
already started to enhance their brand through their excellent workmanship will place
Moetapele at the forefront of service providers to be considered for these works.

According to (Makhitha, 2018) urban areas have proved several times that they cannot
cope with the large influx of people from rural areas, and unfortunately this has resulted

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 in the mushrooming of slums in most African cities. This is also accompanied by a rise
in crime rates and criminal activities associated with rapid urbanisation that does not
have the capacity to create more urban jobs to keep up with demand. Inversely, this
could also provide an opportunity for Moetapele to create a market or demand through
aggressive lobbying to the housing departments and private developers to come up
with housing schemes to try and alleviate the housing issue. Moetapele can approach
a large construction/company to work with them as their empowerment partner and
put together accommodation proposals to the relevant parties and subsequently
partner in the long-term benefits of providing rental units.

There are also large pockets of land in and around Mankweng that could be developed
to provide student housing for the nearby University of Limpopo as there is currently
an accommodation crisis caused in part by rural-urban migration and also the influx of
migrants from surrounding African countries.

2.1.5 Question 4: African Factor Markets

2.1.5.1 Underdeveloped African Factors

African factor markets which include labour, capital and land are generally
underdeveloped compared to other regions of the world. This has been a longstanding
issue in many African countries, and it has had significant implications for economic
growth, poverty reduction, and income inequality.

The underdeveloped African Market factors are as follows;

Labour - According to (Adenikinju & Oyeranti, 1999), the labour force demand for
skilled labour has slowed down, whereas labour supply growth has continued to
grow. The resultant divergence in labour demand and labour supply structure,
together with a labour force that is growing faster than the total population have thus
made unemployment a major challenge to African countries.

Capital - the financial sector in Africa is still very much rudimentary and
underdeveloped. One of the reasons why Africa has much less financial depth than
other developing countries can partly be attributed to the years of repression of the
financial sector and also partly due to the failure to integrate the informal sector into
the main financial stream. Historically, African countries inherited a financial sector

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 from their colonial masters that is highly regulated and very much elite based, to the
detriment and exclusion of the vast majority of Africans. (Adenikinju & Oyeranti, 1999)
This has resulted in limited access to credit and a small pool of domestic savings.

Land – The African land market is often characterized by insecure property rights,
which has led to limited investment in land and low agricultural productivity.

2.1.5.2 African Factor Markets Influence on the SMME

Capital Market

Given the factors discussed in part (a) above, the SMME is first and foremost affected
by the very limited, if not non-existent access to credit due to a lack of collateral and
its short track record. The banking system is such that the requirements for loans for
small to medium enterprises is very stringent and as such the SMME in discussion has
not been able to secure a bank loan so far to enable it to purchase materials in advance
for any given project. The owner has had to resort to using her own personal money
to purchase materials most of the times. They have now been forced to operate as a
labour only service provider for most of the projects.

At times, the main contractor has been able to advance the materials to Moetapele
and then deduct it from their invoices at the end of the month. This has greatly reduced
their own buying power and credit worthiness. The inability to purchase is also affecting
their grading with the CIDB (Construction Industry Development Board). As such,
Moetapele cannot invest in new equipment, cannot expand their operations and create
new jobs.

Labour Market

The underdeveloped labour market in South Africa especially in Limpopo where

Moetapele is based, has made it difficult for the SMME to attract and retain skilled
labour although this might be addressed to a little extent by the migration from other
provinces and neighbouring countries. The high levels of informality and limited access
to training and career advancement opportunities has also limited the productivity and
competitiveness of Moetapele.

Land Market

Insecure property rights and limited access to land has also been a significant barrier
to growth for Moetapele. Although Moetapele operates within the formal sector, they
operate out of the owner’s house which has been slightly extended to cater for the

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 business’s office and storage yard for the few tools of trade that they have. Moetapele
does not have legal title to the land that they temporarily use in nearby Polokwane City,
making it difficult to invest in improvements and also expand their operations. In
addition, therefore, the limited access to credit and high land prices have made it
difficult for Moetapele to acquire the city land they need to grow their business.

2.1.6 Conclusion

In conclusion, the underdevelopment of African factor markets has limited the growth
and competitiveness of the SMME in Limpopo. Addressing these will require a range
of policy interventions, which include improving property rights, investing in education
and training, strengthening the financial systems and making them more accessible to
SMMEs, and promoting the greater formalization of the labour market.

3. SECTION 3

3.1 Impact of Social Media on African Culture

The impact of social media on African culture has been significant, with the proliferation
of social media platforms changing the way people communicate, share information,
and interact with one another. Social media has also played a significant role in
shaping African culture, with many young people using these platforms to express their
views, share their experiences, and connect with others. One practical example of the
impact of social media on African culture is the #MeToo movement, which has gained
traction across the continent. The movement has encouraged women to speak out
about sexual harassment and abuse, with many using social media to share their
stories and demand action from governments and other institutions. Another practical
example of the impact of social media on African culture is the rise of social
entrepreneurship. Many young Africans are using social media to promote their
businesses, connect with customers, and raise awareness about social issues. For
example, the Kenyan-based social enterprise, M-Kopa, has used social media to reach
customers in remote areas and provide them with affordable solar energy solutions.

Small, Medium and Micro Enterprises (SMMEs) can use social media to communicate
with potential African customers in a variety of ways. One way is to use social media
platforms to advertise their products or services. For example, a clothing store can use
Instagram to showcase its latest designs and offer special promotions to its followers.

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Another way for SMMEs to use social media to communicate with potential African
customers is to engage with them through social media groups and forums. For
example, a food delivery service can join local Facebook groups and offer discounts
to group members. SMMEs can also use social media to build relationships with their
customers and promote their brand. For example, a small business selling handmade
crafts can use Twitter to share behind-the-scenes glimpses of its production process,
engage with customers, and build a loyal following. In conclusion, social media has
had a significant impact on African culture, with many young people using these
platforms to express themselves and connect with others. SMMEs can also use social
media to communicate with potential African customers, promote their brand, and build
relationships with their audience.

Social media has become an essential tool for businesses of all sizes to communicate
with customers and reach new markets. For female-owned construction SMMEs
looking to expand their customer base in Africa, social media platforms can be used to
build relationships, promote products and services, and engage with potential
customers. The following are some practical examples of how a female-owned
construction SMME can use social media to communicate with its potential African
customers:

1. Create a professional social media presence: The first step in using social media
to communicate with potential customers is to create a professional social media
presence. This includes setting up a business page on platforms like Facebook,
Twitter, LinkedIn, or Instagram. The page should include information about the
business, its products and services, and contact details.

2. Share relevant and engaging content: To engage with potential customers,

businesses need to share relevant and engaging content that resonates with their
target audience. For example, a female-owned construction SMME could share photos
and videos of completed projects, updates on current projects, and information about
new products or services. The content should be visually appealing, informative, and
shareable.

3. Engage with followers: Social media is a two-way communication channel, and

businesses need to engage with their followers to build relationships and trust. This
includes responding to comments and messages, asking questions, and sharing
relevant content from other sources. By engaging with followers, a female-owned

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 construction SMME can build a loyal customer base and establish itself as a trusted
and reliable business partner.

4. Utilize paid advertising: Social media platforms offer a variety of paid advertising options
that businesses can use to reach new customers. For example, Facebook and
Instagram offer targeted advertising options that allow businesses to reach specific
demographics or interests. By using paid advertising, a female-owned construction
SMME can reach a wider audience and promote its products and services to potential
customers in Africa.

Source referencing: - Chitambira, M. (2019). Social media and SMEs: A review of the
literature. Journal of Business and Retail Management Research, 13(3), 1-10. -
Hootsuite. (2022). How to use social media for small business: A guide for
entrepreneurs. Retrieved from https://blog.hootsuite.com/social-media-for-small-
business/ - Nelly, M. (2020). The use of social media in small and medium enterprises
(SMEs) marketing. Journal of Business and Retail Management Research, 14(2), 43-
52. - Sprout Social. (2022). Social media for small business: 10 tips to grow your brand
online. Retrieved from https://sproutsocial.com/insights/social-media-for-small-
business/

Social media has had a significant impact on African culture in recent years. This
impact can be seen in a variety of ways, from the way that people communicate and
interact with each other to the way that African culture is represented and portrayed
online. One of the most significant impacts of social media on African culture has been
the way that it has facilitated communication and interaction between people across
the continent. Social media platforms like Facebook, Twitter, and WhatsApp have
made it easier for people to connect with one another, regardless of their location. This
has led to the formation of online communities that are based on shared interests,
values, and cultural practices. For example, social media has played a key role in
promoting African music and dance. Platforms like YouTube and Instagram have made
it possible for African musicians and dancers to share their work with a global
audience, and this has helped to raise awareness of African culture and promote its
diversity. Social media has also had an impact on the way that African culture is
represented and portrayed online. In some cases, this has been a positive
development, as social media has provided a platform for African artists, writers, and
filmmakers to showcase their work and challenge negative stereotypes about African

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 culture. However, social media has also been criticized for reinforcing certain
stereotypes about African culture. For example, the prevalence of "poverty porn" on
social media, which portrays Africa as a continent of suffering and despair, has been
criticized by some as perpetuating negative stereotypes and ignoring the many positive
aspects of African culture. In terms of practical references, one example of the impact
of social media on African culture can be seen in the rise of the Afrobeats music genre,
which has been driven in part by social media. Artists like Davido, Wizkid, and Burna
Boy have used social media to promote their music and connect with fans around the
world, and this has helped to make Afrobeats a global phenomenon. Another example
can be seen in the way that social media has been used to promote African fashion
and design. Platforms like Instagram have made it easier for African designers to
showcase their work to a global audience, and this has helped to raise awareness of
African fashion and design. In terms of sourcing references, some useful sources for
further research on the impact of social media on African culture include academic
journals such as African Studies Review, Journal of African Cultural Studies, and
African Identities. There are also many online publications that focus on African culture
and the impact of social media, such as OkayAfrica, Afropunk, and The Africa Report.

3.2 Social Class of Moetapele Projects (Pty) Ltd

(a) Social class refers to a group of people in society who share similar social, economic,
and cultural characteristics. The characteristics of a social class can include income,
education, occupation, lifestyle, and cultural practices. Social class is often determined
by a combination of factors, including family background, education, and occupation.
In general, social class can be divided into three main categories: upper class, middle
class, and lower class. The upper class is typically associated with high levels of
income, education, and social status. The middle class includes individuals who are
moderately wealthy and have a comfortable standard of living, and the lower class
consists of those who have limited economic resources and may face social and
economic challenges. (b) The impact of social class on an SME/SMME can be
significant, affecting factors such as customer base, marketing strategies, and
employee recruitment and retention. For example: - Upper-class customers may have
different preferences and expectations for products and services, which can influence
the types of products and services offered by the SME/SMME. They may also expect
a high level of customer service and personalized attention. - Middle-class customers
may place more value on affordability and convenience, which can influence the pricing
and distribution strategies of the SME/SMME. They may also be attracted to brands

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 that promote a sense of social responsibility and ethical business practices. - Lower-
class customers may have limited financial resources and may prioritize low prices
over other factors. They may also be more sensitive to issues such as accessibility
and convenience, as they may have limited transportation options. - The social class
of employees can also impact the SME/SMME. For example, upper-class employees
may expect a high salary and benefits package, as well as opportunities for
professional development and career advancement. Middle-class employees may
value job security and a good work-life balance, while lower-class employees may
prioritize a stable income and basic benefits such as healthcare and paid time off. -
The marketing strategies of the SME/SMME can also be influenced by social class.
For example, an SME/SMME targeting upper-class customers may focus on premium
branding, personalization, and exclusive events and promotions. Conversely, an
SME/SMME targeting lower-class customers may focus on affordability, convenience,
and accessibility. Overall, understanding the characteristics and preferences of
different social classes can help an SME/SMME develop effective marketing
strategies, attract and retain customers and employees, and achieve long-term
success.

3.3 Generic Marketing Communication Model

The generic marketing communication model is a framework that outlines the different
stages of the communication process between a sender (the business) and a receiver
(the target audience). The model includes five stages: sender, encoding, message
channel, decoding, and receiver. The sender is the business that wants to
communicate a message to its target audience. The encoding stage involves the
business converting its message into a format that can be transmitted through a
chosen message channel, such as advertising, public relations, or personal selling.
The message channel is the method used to transmit the message, such as TV
commercials, newspaper ads, or social media posts. The decoding stage is when the
receiver (the target audience) receives the message and interprets it. Finally, the
receiver responds to the message, either positively or negatively. To apply the
marketing communication model to an SMME, the business owner should first identify
their target audience and determine the most effective message channel(s) to reach
that audience. For example, if the target audience is primarily young adults, social
media platforms such as Instagram and TikTok may be the most effective channels for
delivering the message. Next, the business owner should encode their message in a

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 way that is clear, concise, and tailored to the target audience. For example, if the
SMME is promoting a new product, the message should highlight the unique features
and benefits of the product in a way that resonates with the target audience. The
message channel should be chosen based on the characteristics of the target
audience and the budget available to the SMME. For example, if the target audience
is primarily older adults, traditional advertising channels such as TV and radio may be
more effective than social media. Finally, the SMME owner should evaluate the
effectiveness of their marketing communication efforts and make adjustments as
needed. This could involve monitoring the response of the target audience and making
changes to the message, the message channel, or both. According to Kotler et al.
(2022), the key to effective marketing communication is to have a clear understanding
of the target audience and to tailor the message and message channel to their needs
and preferences. By applying the generic marketing communication model, an SMME
owner can develop a targeted and effective marketing communication strategy that will
help them achieve their business goals. Reference: Kotler, P., Kartajaya, H., &
Setiawan, I. (2022). Marketing 4.0: Moving from Traditional to Digital. Wiley.

5. SECTION 4 - RECOMMENDATIONS

1. Conduct a market analysis: It's essential for SME/SMMEs to have a clear

understanding of their target market, including customer needs, preferences, and
behavior. Conducting a market analysis can help SME/SMMEs identify market trends,
opportunities, and threats, and develop effective marketing strategies. According to
Kotler et al. (2022), a market analysis should include an assessment of the industry,
target market, competition, and external factors such as economic and technological
trends. 2. Develop a unique value proposition: A unique value proposition is a
statement that communicates the unique benefits and value that an SME/SMME offers
to its customers. Developing a strong value proposition can help SME/SMMEs
differentiate themselves from competitors and attract and retain customers. For
example, an SME/SMME that offers eco-friendly products could differentiate itself by
highlighting its commitment to sustainability and environmental responsibility. 3.
Leverage digital marketing: In today's digital age, it's essential for SME/SMMEs to have
a strong online presence. Leveraging digital marketing strategies such as social media
marketing, search engine optimization (SEO), and email marketing can help
SME/SMMEs reach a wider audience, build brand awareness, and drive sales.
According to Kotler et al. (2022), SME/SMMEs should prioritize building a responsive

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 website, optimizing their website for search engines, and creating engaging and
relevant content to attract and engage customers. 4. Invest in employee development:
Employees are a valuable asset for SME/SMMEs, and investing in their development
can help improve productivity, job satisfaction, and retention. Providing training and
development opportunities, offering competitive compensation and benefits, and
creating a positive work environment are some ways SME/SMMEs can invest in their
employees. According to Blythe and Megicks (2020), investing in employee
development can also help SME/SMMEs attract and retain top talent. 5. Monitor and
evaluate performance: SME/SMMEs should regularly monitor and evaluate their
performance to identify areas of improvement and make necessary adjustments. This
could involve tracking sales and revenue, customer satisfaction, employee turnover,
and other key performance indicators (KPIs). According to Blythe and Megicks (2020),
monitoring and evaluating performance can help SME/SMMEs identify strengths and
weaknesses and make data-driven decisions to improve their performance.
References: Blythe, J., & Megicks, P. (2020). Marketing. Sage Publications. Kotler, P.,
Kartajaya, H., & Setiawan, I. (2022). Marketing 4.0: Moving from T

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