Effect of Market Segmentation, Targeting, and Positioning mediated by Organizational Capacity on NGOs’ Marketing Performance: Evidence from Don Bosco and Dorcas Aid in Addis Ababa City
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Date
2024-10
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Addis Ababa University
Abstract
The purpose of this study isfor analyzing the effect of segmentation, targeting and positioning marketing strategies mediated by organizational capacity on philanthropic non-governmental organizations marketing performance that generates evidence from Don Bosco&Dorcas in Addis Ababa city through cross-sectional survey-questioner supported by interview and mere observation at physical sites & websites. Ninety- nine respondents of the two NGOs were correctly participated through census. Mixed approach and Explanatory design are used. Descriptive&Inferential statistics are used. Almost all variables scores values of Cronbach’s alpha (0.7+) and validity (rho_a=0.8+), (rho_c=0.8+)& (AVE=0.7+) which are accepted to assess the data's reliability and validity. By analyzing the data with SPSS version 27 and Smart PLS version4 software are used.Structural equation modeling (SEM) is used to develop an appropriate model with the data and test the hypothesis.Correlation, ANOVA & MultipleRegressions analysis are launched. Market Targeting scores stronger correlation & regression coefficients than other strategies while its regression coefficients 0.535MTon Marketing performance &0.580MT on organizational. SEM path’s results reveal that Market Positioning (MPos) -> Market Performance computed a weak positive coefficient 0.089 while 306 on organizational Capacity. Market Segment (MS) -> Market Performance valued a weak positive coefficient 0.006 while 0.005 with organizational Capacity; the positive coefficients indicate weak positive relationshipswiththem. Path coefficients forMarket Target (MT) -> Market Performance reveals 0.459 &Market Target->Organizational Capacity scores 0.684, indicates a strong positive relationships between Market Target and Market Performance plus market Target and Organizational Capacity that implies as MT is the strongest independent variable to influence MP & OC. Market Target (MT) x Market Segment (MS) -> Market Performance valued a coefficient of-0.029. This interaction term suggests that the joint effect of Market Target and Market Segment on Market Performance is negative, albeit very small. Whereas the mediatorvariable Organizational Capacitydirect effect on marketing performance reveals 1.175path coefficient as well as 0.92OC predicting regression value on Marketing Performance which is the strongest direct effect predictor across all models; exceeds others however, its mediation total and specific effects remain unknown. From sequential linkages STP, Segmentationand Targetinghas 0.747as well Targeting& Positioning has 0.711; strong path coefficients that imply as marketing strategies executed in DB & DAE theyenhance each other. Across all models analysis market Targeting founded to be consistently the strongest predictor strategy followed by positioning. However, Market Segmentation found to be very small positive predictor by models. From this it was concluded that, by understanding these coefficients helps organizations grasp how different strategic elements (market positioning, segmentation, targeting) and organizational capabilities contribute to their overall market performance as theoretical & other empirical literatures reveal about. By optimizing these factors based on the coefficients observed, NGOs can align their strategies more effectively to achieve higher performance outcomes incompetitive markets. Further investigation through longitudinal on multi-NGOs, research is recommended. Key words: Market Segmentation, Market Positioning, Market Targeting, Market Performance, Organizational Capacity, SEM.