The Effect Of Marketing Strategy On Small And Medium Enterprises Performance In Ethiopia: In The Case Of Addis Ababa City
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Date
2018-06-10
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Addis Ababa University
Abstract
Marketing strategies constitute one of the key functional strategies that Small and Medium Enterprises (SMEs) adopt to enhance performance. This study is aimed to examine the effect of marketing strategy on SMEs performance in Addis Ababa City. By taking the research objectives and questions into considerations, only quantitative research approach and both descriptive and explanatory research design were used. The study was delimited to proportionate stratified and purposive sampling techniques. Quantitative data was collected using a structured questionnaire which has been developed and distributed to a sample of 365 owners and/or managers of SMEs in the three sub-cities (Lideta, Yeka, and Kirkos). With a response rate of 94%, 344 questionnaires have been returned and were valid for data analysis. The quantitative data were analyzed by using descriptive and inferential analysis. The findings of descriptive statistics have shown that the mean score of marketing strategy variables i.e. STP, product, price, promotion, place, customer orientation, and relationship marketing inclined to agreement level. All independent variables have the significant correlation with the dependent variable „performance‟. In this case, relatively relationship marketing had a higher strong relationship with performance. Likewise, the empirical findings of the multiple regression indicated that, only six of the predictor variables STP, Product, Promotion, Place, Customer Orientation, and Relationship Marketing have a positive and significant effect on the Performance of SMEs but, price is not. The results also revealed that these independent variables were significant joint predictors of performance. The independent variables jointly explained 61.5% of the variance in performance. Finally, recommendations were made for SMEs based on the findings of the study.
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Marketing Strategy, Product, Price