THE EFFECT OF COMPETITIVE AND GREEN MARKETING STRATEGY ON DEVELOPMENT OF SMES

Abstract

The purpose of this study is to examine the effect of competitive and green marketing strategy on development of SME in Jaffna district by surveying 302SMEs in Jaffna district. Resource advantage theory of competitions is underpinned to link the marketing strategy and performance development of SMEs. Llittle researches were undertaken into the competitive marketing strategy and green marketing strategy in SMEs in the post war context. The influences of these marketing strategy on the performance of SME is nebulous in the post ear context. Data were collected by using questionnaires from owners of SMEs. Simple random sampling method was applied to select samples for this study. Structural equation method (SEM) was utilized to identify the effect of marketing strategy on the development of SMEs .The findings revealed that competitive marketing strategy significantly influenced on the financial development, customer development and SME development and not significantly influenced on the employee development. Regarding green marketing strategy, it significantly influenced on customer development and employee development not significantly influenced on the financial and SME development. This research suggested that entrepreneurs need to apply these two strategies for the development of SMEs.