The Effect of Marketing Mix Elements on Business Performance: A Mediated Model Study in Case of Heineken Breweries S.C. Ethiopia

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Effective marketing mix elements are necessary for businesses to perform well in the market, to get market share and to have competitive advantages against other competing businesses. Marketing mix elements make up the business plan for a company and highly contribute in the development of marketing strategies necessary for success. The elements of product, price, place, promotion, people, process, productivity and quality and physical environment are valuable sources for competitive advantage. The main objective of this study is to review the impact of marketing mix elements on business performance mediated by market orientation. This study provides an idea to Heineken Ethiopia and can be used as a tool to assist the business in pursuing its marketing objectives. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brands or products in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like People, Process, Productivity and Quality and Physical Environment as vital mix elements. The study used likert scale method of summated ratings to understand the degree of agreement and disagreement of the respondents towards the statements. An analytical research design was employed in order to establish how the variables of interest in the study are associated or related by using statistical analysis. The population of interest was the employees of Heineken Ethiopia and the target population was employees working at the head office and Kilinto. A stratified sampling technique (by department) was used to obtain a representative sample that reflects the ideas and understandings of each department to minimize bias and ensure reliability of information. Findings show that marketing mix elements have a significant influence on business performance. All the marketing mix elements but price have a positive relationship with business performance, implying an increase in the marketing mix elements except price will have an increasing effect on the business performance, and the opposite is true for price. Market orientation was employed as a mediator in the relationship between the marketing mix elements and business performance and the findings support that market orientation fully mediates the effect of Product, Price, People, Process, Productivity and Quality and Physical Environment and partially mediates the effect of Place and Promotion on business performance of Heineken Ethiopia.



Business Performance, Effect Of Marketing Mix Elements