THE EFFECT OF SALES PROMOTION, PERSONAL SELLING, AND DIRECT MARKETING ON THE SALES GROWTH OF MSMEs: A STUDY OF MSMEs IN KENDARI CITY

Abstract

This study aims to analyze the effect of sales promotion, personal selling, and direct marketing on the sales growth of Micro, Small, and Medium Enterprises (MSMEs) in Kendari City. The study used a quantitative approach with a survey method involving 380 MSME actors determined through the Krejcie and Morgan formula from a population of 42,211 business units, using a proportionate stratified sampling technique across eleven sub-districts. Data were analyzed using Partial Least Square-based Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS version 4.1.1.4. The results show that sales promotion, personal selling, and direct marketing each have a positive and significant effect on MSME sales growth. When ranked by the strength of their influence, direct marketing provides the highest direct effect (0.177), followed by personal selling (0.132), and sales promotion (0.096). These findings confirm that personal and direct promotional approaches are more effective in driving sales than short-term incentives, particularly among the people of Kendari City, who have a trading culture based on personal closeness. This study offers theoretical implications for the development of integrated marketing communication theory and practical implications for MSME actors in determining promotional strategy priorities.