The Impact of Marketing Strategy on the Organizational Performance in Case of Ethiopian Banks

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This research aimed to investigate the impact of marketing strategies on the performance of Ethiopian banks. The researcher used both descriptive and explanatory research designs to explain the relationship between marketing mix strategies and the performance of Ethiopian banks. The sample size of 147 employees from all main branches of Ethiopian commercial banks was determined using the census method. The data sources include primary and secondary data. A structured close-ended questionnaire with a five-point Likert scale is used to gather data. The data is analyzed using statistical software, and the results will be presented through tables, graphs, and charts. The study collected demographic data from respondents and analyzed their characteristics to gain insights into how they may influence the study's findings. Based on the responses, and the product and promotion were rated positively, while the price, place, and performance received lower ratings, with some variation in responses for specific aspects. Regression analysis was conducted, and the F-value of 25.519 and a significance level of .000 indicated that the predictors collectively have a significant impact on the overall Performance. The standardized coefficients (Beta) revealed that Promotion and Product were the most important predictors of Performance. The study tested four hypotheses related to the effects of product, price, place, and promotion on performance. The results showed that product and price have significant effects on market performance, while the place had an insignificant effect. The promotion was found to have a significant effect on performance. The R Square value of 0.438 indicated that approximately 44% of the variance in the outcome variable is explained by the predictors in the model. Pearson correlation coefficients and significance levels were used to test for collinearity among predictor variables, and all of the predictor variables had tolerance values greater than 0.1, indicating no significant collinearity among them. Furthermore, all of the VIF values were less than 10, which is a positive sign. In conclusion, this study revealed that not all market strategy dimensions have a positive effect on market performance. Product and promotion were found to have a significant positive effect on performance. Price and location had a positive but insignificant effect on performance. These findings have important implications for Ethiopian banks looking to improve their marketing strategies and overall performance.