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.

Full text

Samwely & Swallehe/ UONGOZI-Journal of Management and Development Dynamics 2022, Vol.32, No. 2, pp 54-80
54
UONGOZI-Journal of Management and Development Dynamics
2022, Vol 32, No. 2, 54-80
©2022 UONGOZI Journal of Management and Development Dynamics,
Mzumbe University, Tanzania
ISSN 2619-8665
Received: 15 August. 2023
Revised:21 January 2025
Accepted: 17 March 2025
Published: 21 March 2025
Effects of Promotion Mix Tools on Brand Equity of Small and Medium-Sized Enterprises
in Ilala Municipality, Tanzania
Robinson Majaliwa Samwely1 Omary Swallehe2
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
1 Assistant Lecturer-Department of Marketing and Entrepreneurship, robinson.inyoma@mu.ac.tz
2 Associate Professor-Department of Business Studies-Mzumbe University, Omary.swallehe@mu.ac.tz

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55
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.
Keywords: Sales promotion, Advertisement, Brand equity, Direct marketing, Small and medium-sized
enterprises
1.0 INTRODUCTION
Small and Medium-Sized Enterprises (SMEs) are the backbone of the global economy, accounting for a
considerable share of jobs and economic growth. Small and Medium Enterprises (SMEs) make up about
70% of total employment, providing more than 50% of the global Gross Domestic Product (GDP),
according to the International Labour Organization (2020). According to the World Bank (2017), SMEs
play a crucial role in innovation and competition and are often described as the seedbed of
entrepreneurial dynamism. Nevertheless, despite their vital role, SMEs face multiple global challenges,
including access to finance, regulatory constraints and market competition (OECD, 2018). Such
challenges can limit their ability to grow and innovate, resulting in pleas for better support systems and
policies that would enable the development of a large variety of SMEs (Ayyagari et al., 2011). Thus, it is
much needed for the world economy to overcome SME barriers to sustainable economic growth
worldwide.
In Tanzania, the Small and medium-sized enterprises (SME) sector is critical in creating
employment, generating income, alleviating poverty, and serving as a foundation for industrial
development (Nyamanza, 2019). According to a report by the Tanzanian government, SMEs are
estimated to employ a significant portion of the country's youth and labour force (Danga et al.,
2019; Kumburu et al., 2019; Nkwabi & Mboya, 2019). Though they have implemented particular
development policies and interventions, SMEs have not benefitted. As a result, even when SMEs
face marketing-related problems, covering these areas under the solution umbrella of Business
Development Services takes time and effort. SMEs continue to be of central importance to the
economic transformation in Tanzania, as they have since 2021, and their sustainability represents
a key concern for policymakers and stakeholders (Kumburu & Mashenene, 2023).

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Looking at the SME marketing practices in Tanzania, the studies have revealed that regardless of
the challenges encountered in the marketing field, there have been improved business
opportunities and marketing practices due to market trends, globalisation, and technological
advancement (Mashenene & Rumanyika, 2021). Marketing practices play a significant role in
business growth and viability, including improved profitability, sales performance, and return on
investment (Kenu, 2019). This view is in line with Efiom (2018), who reveals that there is a
gradual improvement in SMEs' perception regarding the contribution of marketing towards the
business performance and satisfaction of needs and wants for the target market.
However, there are factors still retarding the growth and performance of SMEs in Tanzania.
These include financial challenges, increased intensity of competition, marketing practices, and
poor managerial skills, among others, which are among the challenges facing SMEs in Tanzania
(Nkwabi & Mboya, 2019; Swallehe, 2022). Many SMEs in Tanzania need help utilising scarce
resources and applying winning marketing strategies due to limited marketing knowledge
(Swallehe & Mwilongo, 2021). Despite the challenges encountered by SMEs in Tanzania, there
have been efforts made to solve the challenges, including the formulation of SME policy in
2003, which addresses the challenges of SMEs in the country and suggests possible practices for
helping SMEs do better in their business, regardless of the efforts, SMEs are still going through
challenges in their business (Nyamanza, 2019). Following the increased competition across
different business fields, there is a need for intervention through business support systems to help
train SMEs to formulate and implement winning marketing strategies (Anderson, 2020; Nkwabi
& Mboya, 2019; Swallehe & Mwilongo, 2021). Other studies show that, generally, SMEs in
Africa face marketing-related challenges; several SMEs in South Africa need help building a
robust and reputable brand that can improve consumer recognition and trust because they need to
implement marketing techniques properly (Anderson, 2021; Nkwabi & Mboya, 2019 ). Also,
studies revealed that business ventures in other countries like Kenya, both service and
manufacturing firms, have been heavily involved in using promotion tools to improve the
performance of their brands, with studies revealing that using promotion tools positively affects
brand equity, tracing advertisement as the critical tool in building brand equity for companies in
Kenya. It has also been discovered that advertisements positively affect brand equity for
hospitals in Nairobi, Kenya (Charanah & Njuguna, 2015).

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Following the marketing challenges facing SMEs and businesses, studies show that branding via
promotion mix tools is considered a core instrument in attaining the leading position in
consumers' minds and achieving sustainable brand equity (Bu et al., 2021; Czinkota et al., 2021).
Promotion mix tools are more helpful in blending and creating sustainable brand equity (Bu et
al., 2021; El et al., 2020; Mahmudova & Kovacs, 2018; Samsudeen & Kaleen, 2020 ). Studies
conducted in India and globally reveal how promotion mix plays a vital role towards building
compelling and sustainable brand equity. It is the most popular strategy used by manufacturing
and service organisations in India and other countries; the promotion mix affects brand
performance, and companies use it to strengthen brand equity dimensions (Kumar & Patra,
2017). In their study, Samsudeen and Kaldeen (2020) postulated that SMEs face the biggest
challenge of marketing, specifically branding, which has been a difficult practice for SMEs;
many SMEs still need to prosper in the market despite the support given by the government.
However, branding is seen as the best option to help SMEs in the success and growth of SMEs.
Promotion is the means that marketers use to deliver critical messages or information concerning
product brand, price, and distribution. It is the approach to positioning a product or brand in
consumers' minds (Bu et al., 2021; Eldahamsheh et al., 2021; Nair & Gupta, 2021). Kotler and
Armstrong (2008) define promotion mix tools as "the precise combination of advertising, public
relations, personal selling, sales promotion, and direct-marketing instruments used by the
organisation to express value to the customers and build customer relationships effectively.”
Advertising is a paid form of non-personal communication by an identified sponsor who intends
to deliver the message or information to persuade the target audience (Chomiak-Orsa &
Liszczyk, 2020). Kotler and Keller (2012) define advertisement as “any paid form of non-
personal presentation and promotion of goods, ideas, and services by an identified sponsor.
According to Kotler and Keller (2012), sales promotion is identified as the short-term incentives
used by a company to encourage product purchases or trials. Direct marketing uses email,
telephone, mail, fax, or the Internet to communicate directly with the customer and solicit a
response (Kotler, 2012). According to Karaxha et al. (2016), direct marketing involves using
emails, telephones, and festivals to communicate with clients directly and receive immediate
feedback, which consists of communicating with customers in a personalised way. Aaker (1991,
1996) defines brand equity as a multifaceted notion associated with brand loyalty, awareness,

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perceived quality, associations, and other proprietary brand assets. Most researchers agree that
brand equity consists of brand awareness, loyalty, association, perceived quality, and knowledge
(Kumar & Patra, 2017). Kingsnorth (2022) states that brand equity must be understood and
investigated. In a broad framework that examines the incremental influences of the brand along
the customer decision-making process, brand equity influences how knowledge is learned,
retrieved, and used in making a decision. The impacts of information processing influence the
production of choice sets and, ultimately, the decisions employed in making the final choice.
The standard terms used to represent SMEs in other countries are total number of employees,
total investment, and sales turnover (Aji, 2020; Al-gharaibah, 2020; Bu et al., 2021; El et al.,
2020; Mahmudova & Kovacs, 2018). SMEs are typically businesses whose number of
employees falls within certain limits. However, the number of personnel varies from one
industry to another. The leaders of SMEs are usually the founders and owners, while employed
managers lead a few of them. The leader of SMEs has a central role in the success or failure of
such a business; therefore, a leader is always required on a strategic basis to invest time, energy,
and assets to lead the company to success (Al-Awlaqiet al, 2018; Kingsnorth, 2022).
They investigated three theories as discussed in this study. The theories covered under these
include the impact of social media advertising, direct marketing, promotion mix and brand
personality on brand equity. These theories provide us with relevant insights into the
effectiveness of the varied approaches to marketing in increasing brand equity for businesses and
SMEs. Third, these theories offer grounds for examining brand management dynamics and the
function of marketing in SMEs. Such theories enable an overarching analysis of the current
conditions that help to create and maintain brand equity in modern business.
The first theory employed is the hierarchy model. This marketing communication model was
developed in 1961 by Robert J Lavidge and Gary A Steiner. The theory explains the six stages a
consumer goes through; it demonstrates the transformation of a consumer from the time they are
unaware of the brand or product until forming the attitude, commitment, recognition, and
preference of the brand. Kotler (2012) described the hierarchy of effect model into three stages,
namely the Cognitive stage (awareness, knowledge), the Affective stage (liking and preference),
and the last one is connate/ Behavioral stage, which is made up of conviction and purchases.

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This model appears in the hierarchy because a consumer enters a distinct stage from the
beginning, where brand awareness is developed through advertising and marketing
communication campaigns that focus on improving customer knowledge and understanding.
Lastly, customers can become loyal and strengthen brand loyalty through a company's promotion
strategies. This study employed this theory to show the effect and usage of marketing
communication programs and how they influence consumers to develop awareness and improve
customers' loyalty towards the brand. The hierarchy of effects model provides the guideline on
how the customer is influenced by advertising and overall marketing communication tools
towards brand or product knowledge, awareness, preference, and recognition.
Ajzen (1991) derived this theory from his 1970 Theory of Reason Action, which predicts an
individual's ability to control their behaviour. According to this theory, individual behaviour in a
society is influenced by definite factors that arise from specific causes and emerge planned
(Shahwan & Erten, 2002). According to the theory, three factors can affect an individual's
behaviour in one way or another: attitude toward behaviour, subjective norms, and perceived
behavioural control, which stimulates the intention to do specific actions (Febrian et al., 2021;
Lopes & Casais, 2022). The study has preferred this theory because it portrays the usage of
marketing communication in influencing the decisions and choices of consumers in the market
by making customers accept and adopt the brand through a promotion mix. The theory shows
how planned actions like promotion campaigns affect the response and choice of the consumers,
and it explains the outcome that arises from planned actions. Professor first developed the
customer-based Brand Equity Model (CBBE Model). Kevin Lane Keller developed this model in
his widely-used textbook, "Strategic Brand Management. This model holds that to build brand
equity, a company needs to design and shape how customers think and feel about the offered
products or services; Keller (2004) emphasises building the right experience around the
particular brand so that customers have specific, positive thoughts, feelings, beliefs, opinions,
and perceptions about it. The model holds that when the company has substantial brand equity, it
will boost sales performance and increase brand loyalty, commitment, and preference. Customer
The brand equity model, as explained by (Keller, 2004), is suitable for this study because it
reveals how brand equity is created, starting with the brand identity through developing brand
awareness, marketing communication campaigns and communicating the unique selling

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proposition to the customers and ending with the last stage of the CBBE model which is a brand
resonance that enhances brand loyalty and commitment which is achieved through the use or
promotion tools and marketing communication campaigns.
The study by Sedaghat and Moaker (2012) on the impact of promotional mix elements on brand
equity in Iran's Mazandaran province used the case of Samsung. The findings revealed that
promotional mix positively and significantly influences brand equity. On the other hand,
Hamidzera et al. (2014) conducted a study to test whether there is a relationship between
promotion mix tools and brand equity on Samsung products, and the findings revealed that
promotional tools have significant effects on brand equity dimensions. Kumar and Patra (2017)
postulated that promotion had become a crucial strategy in business operations used by firms and
business owners to influence and persuade their customers. The results concluded that the
promotion mix elements play a vital role in enhancing brand equity, whilst direct marketing was
found to have the potential to create brand awareness and brand image.
Othman et al. (2020) studied the effects of promotion-based advertising on brand associations
focusing on durable goods; the study termed brand association as the conceptualisation of brand
image, brand attitude, and consumer quality perception. Findings revealed the significant
influence of promotion-based advertisement on brand association. Khizar et al. (2016) showed
that integrated marketing communication significantly affected the company's brand equity. The.
Allaham (2015) assessed the impact of sales promotion on brand equity, and the study revealed
the positive effects of sales promotion on brand image creation. Rahmani et al.. (2012) surveyed
the impact of advertising and sales promotion on brand equity. This study was conducted in Iran,
and the findings revealed that these promotional tools positively contribute to building brand
awareness, association, and perception in consumers’ minds. Karunanity and Sivesan (2013)
postulated in their study that brand equity is influenced by promotion mix tools by 52% while the
other factors taken by 48% in determining the brand equity for SMEs.
You Tang and Mesfin (2020) studied the effect of Marketing mix on the competitive advantages
of small and Medium Enterprises in Ethiopia; in the study, the focus was placed on identifying if
the 4Ps of marketing mix influence the competitive advantage of SMEs, the findings in the
survey indicated the existence of correlation and influence of marketing mix on competitive

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advantages. Odunlami and Emmanuel (2014) revealed that using promotion tools positively
influenced companies' brand awareness in the case of the brewery sub-sector of manufacturing
companies in Nigeria. Charanah and Njuguna (2015) conducted a study on the effect of
promotion tools on brand equity for hospitals in Nairobi, Kenya; the study findings revealed that
promotion mix tools significantly impact brand equity for hospitals based in Kenya.
We use the following indicators to examine the impact of advertising on brand equity since it is
believed to have a notable effect on brand equity dimensions as it improves brand awareness and
strengthens consumer brand recall and recognition. Research demonstrates that the brand equity
factor is significantly influenced by advertising. Adebe (2017) suggested that businesses' use of
advertising enhances the brand equity of their particular brands. In addition, research indicates
that consumers typically have a perception of the brand regarding the marketing communication
expenditure made by the company. Promotion is used to persuade consumers to buy products
and develop brand commitment. It is considered a vital element of the marketing communication
mix (Karunanithy & Sivesan, 2013).
According to Aaker (2010), brand equity results from prior marketing investments such as sales
promotion tools. Similarly, Keller (2012) revealed that consumers are highly influenced by
investment in marketing activities that affect consumers' brand knowledge, perception, attitude,
intention, and behaviour related to a specific brand in the market. This reveals that a company
builds a strong brand by investing in marketing activities such as sales promotion. We developed
the question using these sales promotion indicators to track the responses from study participants
and test the impact of sales promotion on the brand equity of small and medium enterprises.
Price discounts, seasonal discounts, quantity discounts, Free samples, and Loyalty Programs
were key indicators of sales promotion.
Karaxha et al. (2016) highlight that direct marketing enhances sales performance by establishing
trust-based client relationships and quickly introducing new products and services. Direct
marketing involves communicating with clients via emails, phones, and events to obtain rapid
feedback. This also visually depicts how direct marketing influences different brand equity
measures in various industries. The literature review has enabled the researchers to summarise
three specific objectives of the study and three hypotheses that will be tested and presented in the

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results section. First is the causation between advertisement and brand equity, and next is the
causation between sales promotion and brand equity. Finally, there is the causation of direct
marketing on brand equity. As a result, the literature section elaborates on the role played by
small and medium enterprises (SMEs) in Tanzania's economy, as well as their marketing
challenges and performance. SMEs are considered a significant source of jobs and wealth;
however, they need more funds, face rising competition, and need better marketing skills. The
review highlights marketing practices as fundamental to enhancing business growth,
profitability, and general performance. It also emphasises the importance of interventions and
support mechanisms to assist SMEs in preparing and executing effective marketing strategies.
The literature also highlights the advantages of a robust brand for SMEs, as it enhances
consumer recognition and trust (Chavis & Sohi, 2022; Nisha & Ramesh, 2021). Overall, the
synthesis of the literature review underscores the importance of addressing marketing-related
challenges and providing necessary support to enhance the sustainability and success of SMEs in
Tanzania. According to the reviewed literature, the study has three hypotheses as follows;
The hypotheses developed from the literature:
H1: Advertising directly and positively affects the brand equity of SMEs in Tanzania.
H2: Sales promotion directly and positively affects brand equity in Tanzania. And the brand
equity of SMEs in Tanzania.
H3: Direct Marketing directly and positively affects brand equity in Tanzania and the brand
equity of SMEs in Tanzania.
Advertisement is an essential factor in enhancing brand equity in the SME context.
Advertisements lead to higher brand visibility, awareness and recognition, which often translate
into benefits for brand equity. In the same way, sales promotion provides such elasticity that
consumers rush to buy incentive products, reinforcing brand loyalty and influencing brand
equity. Direct Marketing Efforts are also instrumental in increasing brand equity because this
form of marketing allows you to directly interact with your potential and actual customers and
develop a personal relationship with them, all of which enhances the value and perception of the
brand on the market.

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2. METHODS
The study was conducted using a structured and systematic approach to ensure the reliability and
validity of the research findings. Initially, an explanatory research design supported by a
quantitative research approach was chosen. This design aimed to explore the causal and effectual
relationships among the relevant variables related to the impact of promotional mix tools on
brand equity within small and medium-sized enterprises (SMEs) in Ilala Municipality, Tanzania.
2.1 Study Population and Sampling
This study employed a cross-sectional research design to survey promotional tools' effect on
SMEs' brand equity in Ilala municipality. Respondents were selected using probability sampling,
a self-administered questionnaire was utilised, and 158 responses were used in data analysis. The
survey was conducted among SMEs in Ilala municipality. The sampling design was simple
random sampling, known for its minimal bias and potential for generalizability (Sekaran &
Bougie, 2016). It is to select sampling units, mainly when an entire sampling frame is not
directly available in marketing research; thus, a multi-stage random sampling technique was
pursued (Beri, 2013). In this study, the unit of analysis was SMEs in Ilala municipality, and the
units of inquiry were owners/managers of those SMEs.
The population of this study was SME owners/managers in Ilala Municipality, who were the
units of inquiry. Stratified and simple random sampling techniques were used to select one
hundred seventy participants. Different segments in the SMEs were represented using stratified
sampling. In contrast, having identified strata by simple random sampling would have given each
of them an equal chance to be selected. The selection of a sample size of 170 respondents from
the Ilala Municipality is justified for several reasons. First and foremost, this figure significantly
represents Small and Medium-sized Enterprises (SMEs) within the municipality. Given the
diversity and number of SMEs operating in Ilala, a sample of this size ensures that various
business types, sectors, and demographics are included, enhancing the findings' reliability.
Additionally, the choice of Ilala Municipality is strategic. This area is recognised as a central hub
for economic activities in the region, featuring a mix of established and emerging SMEs. By

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focusing on this municipality, the research can capture a broad spectrum of entrepreneurial
experiences and challenges specific to the local economic environment.
Furthermore, the 170 respondents balance statistical significance and practical feasibility. This
sample size is manageable for data collection and analysis while still robust enough to yield
meaningful insights. It allows for a comprehensive examination of the SMEs without making the
research effort unwieldy, thereby facilitating thorough and focused analysis. Combining the
sample size and the specific location enhances the study's validity and applicability to the SME
landscape in the Ilala Municipality.
2.2 Data Collection Method
Primary data were collected using a structured questionnaire explicitly designed for this study.
The questionnaire comprised closed-ended questions aimed at assessing the participants'
perceptions regarding the effects of the promotional mix tools on the brand equity of SMEs.
Each statement within the questionnaire utilised an ordinal scale, employing a Likert scale with
five response options, ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). This scaling
allowed participants to express varying degrees of agreement or disagreement with specific
statements, capturing nuanced views.
2.3 Data Analysis and Interpretation
Descriptive statistics were deployed to analyse the responses. The average scores based on the
previous examples enabled the degree to which respondents accepted or rejected those
statements to be gauged. According to this measure, a mean score of 4.5-5.0 indicated strong
agreement with the point- that is, the market-oriented storytelling tools were thought to work
effectively. However, scores below three might be taken as antagonistic responses, with 1-2.4
representing a simple form of no feeling at all or mixed emotions, which could also include some
sense of disenchantment in the answers given. Later, it became clear that neutral replies could be
identified through mean scores of 2.5-3.4. It was neither positive nor negative, just not enough to
say in such a way and for sure amongst this crowd given what they had been told before about
"There is no right or wrong answer but a multitude of possibilities.

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2.4 Statistical Analysis
The study employed stepwise regression analysis to determine the relevance of various
independent variables in predicting the dependent variable. This method allowed for the
systematic addition or removal of independent variables based on their statistical significance
about the outcome of interest. The stepwise approach facilitated the identification of the most
impactful variables contributing to the prediction of brand equity.
We also used correlation analysis, ANOVA, and multiple regression statistical methods to
examine the relationships between variables. The hypothesis test was performed at a 5%
significance level, the criterion for retaining or rejecting the hypotheses. Typically, the ANOVA
table indicates which hypothesis did not reach a p-value of 0.05, which is associated with a
position effect in positive terms. Additionally, any value above this line was regarded as
"insignificant ."
2.5 Validity and Reliability
Experts also recommended a test-retest that increased the reliability of the data collection tool by
checking the consistency of responses over time between subjects. This systematic and granular
design allowed the study to identify and compare the roles of promotion mix tools in building
brand equity among SMEs across the Ilala municipality, gaining sound and vital insight into
what matters most in this relationship.
3. RESULTS
This study investigated the effect of promotional tools on the brand equity of SMEs in Ilala
municipality in Tanzania. The tools involved in the study were Advertising, sales promotion and
direct marketing. The findings for the current study are presented based on the demographic
characteristics of the respondents who are the owners/ managers of these establishments,
followed by the descriptive analysis of the results and inferential statistics. The results are further
organised based on the three hypotheses of the study presented in Section 1. The sample and
response rates are presented in the first place.

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A sample of 170 participants was used for our research, yet 158 people filled out the
questionnaire, achieving a total degree of answers equal to 92.9%. As per Richardson (2005), we
acknowledge that response rates greater than 50% are acceptable; thus, the 158 completed
questionnaires were used for our data analysis. Methods In our methodology, we used
descriptive and inferential statistics. The data from the 158 returned questionnaires were readily
summarised in several tables that illustrated significant trends and comparisons for SMEs in Ilala
Municipality, as would be expected. Descriptive statistics (i.e., means, medians and standard
deviations) have been used to summarise our participants' demographics and responses. We also
use inferential statistics to test our hypotheses and make generalisations about the larger
population of SMEs based on our sample size. Results are shown in 7 tables, beginning with the
demographics of the owners/managers who are units of inquiry for this study before proceeding
to descriptive and inferential statistics.
Table 1: Response rate
Response rate
Frequency
Percentage
Number of Questionnaires
170
100%
Number of wholly filled questionnaires
158
92.9%
Number of Incomplete Filled Questionnaires
12
7.1%
Source: Researcher (2022)
The table shows the response rate for a questionnaire. Out of 170 questionnaires distributed, 158
were wholly filled, representing a response rate of 92.9%. However, 12 incomplete
questionnaires accounted for 7.1% of the total questionnaires. This indicates a high level of
completion for the questionnaires, with only a small percentage being incomplete.
3.1 Demographic Characteristics of the Respondents
In this part of the presentation, we present the demographic characteristics of the respondents in
terms of gender, level of education, and marital status. Analysing the respondents' demographic
characteristics is crucial in understanding the respondents' profiles for this study.

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Table 2: Gender of respondents
Gender
Frequency
Per cent
Valid Percent
Cumulative
Percent
Valid
Male
94
59.5
59.5
59.5
Female
64
40.5
40.5
100.0
Total
158
100.0
100.0
Source: Researcher (2022)
The study considered using all gender categories in responding to questionnaires where 94 were
male, and 64 were female. Also, education status was part of the demographic information, and
Table 3 indicates that 63 of the respondents equals to 39.9 %, have the education level of
bachelor's degree and above, followed by 25.9% of the respondents who have a diploma level of
education, 20.9% have attained primary and secondary education level. In comparison, 13.3% of
the respondents have a certificate level of education. These findings imply that the majority of
the respondent's education level was satisfactory enough to enable them to have explicit
knowledge and awareness of the effects of promotion tools (advertising, sales promotion and
direct marketing) on the brand equity of SMEs.
Table 3. Level of Education
Level of Education
Frequency
Per cent
Valid Percent
Cumulative Percent
Valid
Primary & Secondary
33
20.9
20.9
20.9
Certificate
21
13.3
13.3
34.2
Diploma
41
25.9
25.9
60.1
Bachelor’s Degree and
Above
63
39.9
39.9
100.0
Total
158
100.0
100.0
Source: Researcher (2022)
This table presents the distribution of respondents based on their level of education. The
"Frequency" column shows the number of respondents, while the "Per cent" column displays the
percentage of respondents for each education level. The "Valid Percent" column represents the
valid percentage of respondents, and the "Cumulative Percent" column shows the cumulative

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percentage. The "Valid" column lists the different education levels, including Primary and
secondary, Certificate, Diploma, and Bachelor’s Degree and Above. Finally, the "Total" row
provides the total number of respondents and the corresponding percentages.
Table 4. Marital status
Marital Status
Frequency
Per cent
Valid Percent
Cumulative
Percent
Valid
Married
95
60.1
60.1
60.1
Single
54
34.2
34.2
94.3
Others
9
5.7
5.7
100.0
Total
158
100.0
100.0
Source: Researcher (2022)
The table provides information on the marital status of the surveyed individuals. It includes three
categories: Married, Single, and Others. The "Frequency" column shows the number of
individuals falling into each category. In contrast, the "Per cent" column indicates the percentage
of individuals in each category relative to the total sample size. The "Valid Percent" column
represents the percentage of individuals in each category relative to the total valid responses. The
"Cumulative Percent" column shows the cumulative percentage as we move down the categories.
For example, 60.1% of the individuals surveyed are married, 34.2% are single, and 5.7% fall into
the "Others" category. The "Total" row at the bottom provides the overall count and percentages
for the entire sample.
3.2 Descriptive Statistics on Promotional Tools
Table 5. Descriptive Statistics on Promotion Tools
Variables
Mean
Std. Deviation
Interpretation
Advertising
4.134
0.60922
Positive
Sales promotion
4.305
0.54413
Positive
Direct Marketing
4.177
0.52910
Positive
Source: Researcher 2022
Table 5 provides descriptive statistics on different promotion tools. The "Mean" column shows
the average rating for each tool, while the "Std. Deviation" column indicates the variability or

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dispersion of the ratings. The mean rating for "Advertising" is 4.134, but the standard deviation
is 0.60922. A positive interpretation suggests that, on average, advertising is perceived
favourably as a promotional tool. For "Sales promotion," the mean rating is 4.305, and the
standard deviation is 0.54413. Again, the positive interpretation suggests that sales promotion is
viewed favourably as a promotion tool. Lastly, for "Direct Marketing," the mean rating is 4.177,
and the standard deviation is 0.52910. The positive interpretation indicates that direct marketing
is generally seen as a positive promotion tool. The missing standard deviation values make it
difficult to assess the spread of the ratings for each tool, but based on their mean ratings, all three
promotion tools are perceived positively.
3.3.1 Inferential statistics-Correlations Analysis
The results presented in Table 6 show the correlation between brand equity and three marketing
strategies: advertising, sales promotion, and direct marketing. The Pearson correlation
coefficients measure the strength and direction of the linear relationship between these variables.
Table 6: Correlation Results
Correlations
Brand Equity
Advertising
Sales Promotion
Direct
Marketing
Pearson Correlation
Brand Equity
1.000
.349
.347
.534
Advertising
.349
1.000
.316
.343
Sales Promotion
.347
.316
1.000
.348
Direct Marketing
.534
.343
.348
1.000
Sig. (1-tailed)
Brand Equity
.
.000
.000
.000
Advertising
.000
.
.000
.000
Sales Promotion
.000
.000
.
.000
Direct Marketing
.000
.000
.000
.
N
Brand Equity
158
158
158
158
Advertising
158
158
158
158
Sales Promotion
158
158
158
158
Direct Marketing
158
158
158
158
Source: Researcher (2022)
The correlation coefficient ranges from -1 to 1, where 1 indicates a perfect positive correlation, -
1 indicates a perfect negative correlation, and 0 indicates no correlation. This table shows a
positive correlation between brand equity and each marketing communication strategy.
Specifically, the correlation coefficients for brand equity with advertising, sales promotion, and

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direct marketing are 0.349, 0.347, and 0.534, respectively. These positive coefficients indicate
that as one variable (e.g., brand equity) increases, the other variable (e.g., direct marketing) also
tends to increase. Additionally, the table provides the significance levels (Sig.) for each
correlation coefficient. In this case, all the correlations have a significance level of .000 (or less
than .001), suggesting that the observed correlations are statistically significant. The correlation
results show a positive and statistically significant relationship between brand equity and
advertising, sales promotion, and direct marketing strategies. These findings suggest that brand
equity has a positive impact as companies invest more in these marketing strategies.
3.3.2 Inferential Statistics- Regression Analysis
The results presented in Table 7 show each predictor variable's unstandardised coefficients,
standard error standardised coefficients, t-values, and significance levels. The "Model 1" section
includes the constant value and the coefficients for the predictor variables (Advertising, Sales
Promotion, and Direct Marketing). The "Dependent Variable" is Brand Equity. The results
indicate that Advertising, Sales Promotion, and Direct Marketing significantly affect Brand
Equity, as indicated by their respective t-values and significance levels.
Table 7. Regression Results
Coefficients
Model
Unstandardised
Coefficients
Standardised Coefficients
T
Sig.
B
Std. Error
Beta
1
(Constant)
.647
.430
1.503
.135
Advertising
.191
.089
.155
2.156
.033
Sales Promotion
.163
.079
.149
2.069
.040
Direct Marketing
.490
.083
.429
5.903
.000
a. Dependent Variable: Brand Equity
Based on the regression analysis results, it is evident that advertising, sales promotion, and direct
marketing significantly impact brand equity. The respective t-values and significance levels in
the coefficients section support this. The coefficients provide information about the strength and
direction of the relationship between the predictor and dependent variables. Additionally, the
standardised coefficients in the table allow for a comparison of the relative importance of each

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predictor variable in affecting Brand Equity. Overall, the results suggest that the marketing
activities of Advertising, Sales Promotion, and Direct Marketing play a crucial role in
determining the brand equity of SMEs in Ilala municipality. Direct marketing had more weight
in explaining the dependent variable, 0.490, followed by advertising, 0.191 and sales promotion,
0.163.
3.4 Hypotheses testing
The hypotheses were tested using a stepwise regression model. All hypotheses were accepted, as
the analysis yielded a p-value of less than 0.05, indicating statistically significant effects.
However, the hypothesis related to direct marketing exhibited a strong positive correlation with
brand equity. We individually present the findings related to the three promotion mix tools:
advertising, sales promotion, and direct marketing. Below, we discuss each tool’s impact on
brand equity for small and medium-sized enterprises in the Ilala Municipality, Tanzania.
3.4.1 Effect of Advertising on Brand Equity of SMEs in Ilala Municipality
The study findings revealed that advertisement moderately affects the brand equity of small and
medium enterprises. The findings showed that ads in print media and electronic media positively
affect the brand equity of small and medium enterprises, with an average mean score of 4.134.
Correlation results indicated a significant relationship between advertisement and brand equity,
with a Pearson correlation coefficient value of 0.349, suggesting a moderate degree of
relationship at a significance level of p-value < 0.01. Additionally, the regression analysis
showed a regression coefficient of 0.195 with a sig-value of 0.033. The study establishes a
positive relationship between advertisement and SME brand equity based on these results. The
hypothesis that advertising affects the brand equity of SMEs is accepted as a sig-value of 0.033,
which is less than 0.05. Furthermore, the R-Square of 0.195 suggests that advertising can explain
the variance of brand equity by nearly 20%. This further justifies the fact that advertising is an
important marketing strategy for SMEs to create a competitive advantage in the marketplace.
3.4.2 Effect of Sales Promotion on Brand Equity of SMEs in Ilala Municipality
The descriptive statistics of statements that measured the impact of sales promotion on the brand
equity of small and medium enterprises reveal that sales promotion positively affects the brand
equity of small and medium enterprises; it has an average mean score of 4.305 based on the

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results in Table 5. This response falls within the response rate of 3.5- 4.4, indicating that sales
promotion moderately and positively affects the brand equity of small and medium enterprises in
Ilala Municipality. The study wanted to see if there was a significant relationship between the
variables, so correlation was performed to determine the existence of a relationship between
sales promotion and brand equity. As shown in Table 6, the analysis results show a Pearson
correlation value of 0.347, indicating a moderate degree of relationship at a significance level of
P-value<0.01 and a regression coefficient of 0.163, as indicated in Table 7. The study establishes
a significant positive relationship between sales promotion and SME brand equity based on the
findings. The findings indicated and justified that sales promotion in the form of discounts by
selling products at discounted prices can work significantly for SMEs in boosting sales. The
findings also reveal that sales promotion can contribute around 16.3% in explaining the brand
equity for SME customers in Ilala Municipality. Furthermore, the hypothesis that sales
promotion affects the brand equity of SMEs in Ilala Municipality is accepted as the P-value is
less than 0.05, as indicated in Table 7 above.
3.4.3 Effect of Direct Marketing on Brand Equity of SMEs in Ilala Municipality
Direct marketing involved testing the effects using descriptive statistics where the average mean
score was 4.18, falling within the response category of 3.5-4.4; these results indicate that direct
marketing positively affects the brand equity of SMEs. The study involved testing the
relationship between direct marketing and brand equity of SMEs; the correlation was carried out
to determine the existence of a relationship. The analysis results from Table 6 show a Pearson
correlation value of 0.534, indicating a high degree of relationship at a significance level of and
p-value<0.01, and regression analysis from Table 7 shows the regression coefficient of 0.490 at a
sig-value of 0.01. Based on this analysis, an alternative hypothesis was accepted, and the study
establishes a positive significant relationship between direct marketing and brand equity of
SMEs. From the findings, Direct Marketing plays a vital role in explaining the brand equity of
SMEs in Ilala Municipality. The findings show that direct marketing can explain brand equity by
49%, larger than advertising and sales promotion combined.
4. DISCUSSION
In this section, the effect of individual independent variables, namely advertising, Sales
Promotion, and Direct marketing, on brand equity is discussed based on the study findings

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73
compared with the existing literature. A comparison is made to establish similarities and
differences and the reasons for them. The findings on the effect of advertising on the brand
equity of the SMEs in Ilala Municipality align with the works of other researchers. This is
supported by the findings of previous studies (Febrian et al., 2021; Rahmani et al., 2012;
Sedaghat et al., 2013).
Moreover, the findings align with Quayson et al. (2024), who postulated that promotion-based
advertisements in durable goods have significant effects on brand association; the study
concluded that usage of advertising results in success for brand image, attitude and customer
quality perception. This is supported by the findings of (Bu et al. (2021), El Kedra and Ener
(2020), and Mahmudova and Kovacs (2018)), who investigated and revealed that advertisement
and sales promotion positively affect brand equity dimensions; the researcher added that
advertisement not only influences brand awareness and associations but also creates positive
image and perception in consumer's minds. The study reflects the arguments of Makussi (2020),
who revealed that usage of online adverts influences bland preference, awareness and customer
loyalty; the research study was conducted in Vodacom Tanzania based In Dar es Salaam, where
respondents agreed that the company participated in utilising online adverts in different
platforms which in turn results into improved brand awareness and overall brand equity. The
findings on the effect of sales promotion on the brand equity of SMEs in Ilala Municipality
support the works of other researchers, for example, Akoglu et al. 2021; Febrian et al., 2021
Kumar et al., 2017.
The study findings reflect on Keller's (2010) Customer-Based Brand Equity Model; the model
emphasises that businesses should build the right experience around a particular brand so that
customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it.
Also, Ajzen (1991), in the theory of planned behaviour, identified that the behaviour of
consumers and society members can influence customers to behave in a certain way. Like any
other business, this implies that SMEs should integrate sales promotion strategies to influence
how customers feel and think about the product and brand. The findings above reveal the
dominance of digital tools in enhancing businesses in a highly competitive business landscape.
Direct marketing using modern technologies enables business owners and managers to reach

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customers where they are. The acceptance of this alternative hypothesis aligns with the findings
of Akoglu et al. (2021), Karaxha et al. (2016), and Swallehe (2022). These findings indicate that
small and medium enterprises should use direct marketing to strengthen brand equity. This is
reflected in the findings of Kumar and Patra (2017), who revealed that promotion is undeniably
crucial in business operations and is used by organisations to influence and persuade potential
customers. Also, the study is consistent with and correlated to the findings of Dameh and
Ghadeer (2019), who identified the benefits of direct marketing in influencing brand awareness
in Jordan. The study used 506 customers in the Jordanian city of Amman.
In addition, the findings present important implications for the brand equity literature and SME
owners and managers who want a competitive advantage in their industry. This study also adds
to the literature an understanding of the effects of advertising and sales promotions on brand
equity concerning SMEs. It contributes to the literature by addressing smaller firms' unique
challenges and context in brand equity development. Future research may build on these results
by examining the persistence of distinct types of different marketing effects over time or
conducting cross-comparative studies in other industries/regions to determine the generalizability
of these strategies. This will have consequences for every SME owner and manager. According
to the research, these organisations should take a lesson and integrate full-spectrum advertising
strategies into their marketing arsenal. This allows them to create a stronger brand and increase
customer engagement. Moreover, the results also recognise the new age of selling promotional
means that stimulate consumer image and attract them toward brand loyalty. Through
promotions like loose samples and discounts, SMEs construct their aggressive benefits by
shopping for those customers and retaining them.
In addition, the results of this study indicate that direct marketing is not an approach that SMEs
should ignore; instead, it should be employed as a complementary part of a diversified marketing
strategy. Such personalised connections involve acquiring existing customers and nurturing their
loyalty over time, building brand equity.
In conclusion, these findings call for SME owners and managers to improve advertising
functionality, emphasise ability, and integrate brand name management into a more strategic

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vision. This will allow them to adapt to the competitive ecosystem and use marketing as a
continuing force for growth.
This study laid the foundation for how advertisement, sales promotion and direct marketing are
crucial promotional tools that independently affect the brand equity of small and medium
enterprises (SMEs) at Ilala Municipality. The results indicate that SME promotional strategies
are vital in improving brand preference and customer loyalty. However, we acknowledge that
our exploration of a selection of marketing mix elements—product, price, distribution, public
relations, and personal selling—was necessarily narrow. While the narrowed focus of this
research yields essential implications, it also suggests an evident opportunity for future work to
examine these other marketing elements in more depth. A deeper understanding of how different
marketing aspects (digital marketing, customer engagement strategies, and service delivery)
interact to shape and jointly impact brand equity could benefit future research. Comprehension of
these relations might reveal a more insightful perspective to SMEs in developing their marketing
strategies according to their particular circumstances within the market.
Furthermore, it would be beneficial if future research extends the geographic scope of Dar Es
Salaam to get broader insights into brand equity in Tanzania. This approach would show the
regional behavioural differences and business atmosphere, whereas tackling the local condition
would reveal numerous factors responsible for SME selection. Promotional tools' heterogeneity
can be unravelled. This broader perspective will allow them to craft contextually relevant
strategies that work and ultimately empower Tanzania SMEs to steer their marketing for
meaningful growth and sustainability strategically. SONG — The proposed integrative
framework of promotional tool selection will bring some understanding to the most influential
factors in determining decisions on the use of those tools and provide valuable suggestions to
SME practitioners closer to better development and success in a harsher environment.
5. CONCLUSION
The study " Advertisements, Sales Promotions & Direct Marketing Plays Positive & Significant
Role in Augmentation of SME Brand Equity " reflects the need to use these marketing activities

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wisely. Hence, a company achieves strong branding, impacts customer behaviour, and builds
long-term brand equity in the ever-changing and competitive market.
Based on the findings, the study recommends that SMEs prioritise implementing an integrated
promotion mix. In doing so, they can influence desirable business performance and brand equity
outcomes beyond more common manifestations of brand value. However, to achieve these
benefits, SMEs will require a solid foundation of well-informed policies and the appropriate
experience and skills to select the most suitable promotional tools. This entails contemplating
diverse parameters that influence these tools' exceptionality, associating personnel with the
required expertise and skills, and enabling them to flourish depending on the design or scope of
business in current competitive ecosystems. With these strategies, SMEs identify themselves for
growth and resilience, creating an effective brand presence and a loyal customer base.
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