Impact of Marketing mix strategies on the profitability of manufacturing small and micro Enterprises: The Case of Addis Ababa kolffe keranyo sub-city administration

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Marketing strategy has been a focus of organizations and a tool for attaining overall firm performance. This study was investigating the impact of marketing mix strategy on the profitability of selected micro and small manufacturing enterprises in the case of kolfe keraniyo sub-city administration. The general objectives of the study are to examine the impact of marketing mix strategy on the profitability of selected manufacturing enterprise. Causal research design was applied to test the impact of marketing mix strategies on the profitability of SMEs and follows a quantitative research approach. Collect primary data through using standardized closed-ended questionnaires and distribute to 236 respondents of the study that are owner/managers of SMEs.The researcher has been determining sample size by using stratified sampling and then uses a convenience sampling method to determine the respondents. Data were analyzed via descriptive statistics; mean and standard deviation and inferential statistics; Pearson correlation and multiple regressions. The correlation analysis results have been positive and significant relationship of marketing mix strategy with profitability of the enterprise that is product strategy(r=0.347, α=0.01, p=000), price strategy (r=0.421, α, =0.01, p=000), promotion strategy (r=0.404, α=0.01, p=000) and place strategy (r=0.367, α=0.01, p=000). The explanatory variable jointly explained 29.9% of the variation in profitability of SMEs.Promotion, place, price, and product influence positively the profitability of SMEs by 0.254, .215, .205, and .091 respectively. Recommendations were made to SMEs to produce a new design, features, variety, and improve quality of products, charge a reasonable price and give attention to price discount, use an appropriate promotional mix like social media and electronics media, and increase the channel coverage to access their product to target customers. Future researches can be conducted on the impact of marketing mix (7ps) strategies on the performance of all sectors SMEs by using different indicators like customer satisfaction and other non-financial indicators



profitability, Product, Price, Place, Promotion