EFFECT OF MARKETING STRATEGY ON MICRO AND SMALL ENTERPRISES PERFORMANCE: IN GAMO ZONE

Abstract

This research paper aimed to examine the effect of marketing strategies on micro and small enterprises’ performance. The researcher used a quantitative research method and both descriptive and explanatory research design. In this quantitative studies, the data were collected through a self-administered Likert-scale questionnaire and respondents selected from the population by using probability sampling of stratified random sampling and simple random sampling methods. The researcher used (SPSS) version 22 software to investigate the data and descriptive analysis (frequency, percentage, mean and standard deviation) additions to inferential analysis (correlation and regression) were used. The study found that all independent variables (product, price, promotion, place, relationship marketing, and market segmentation, targeting & positioning strategy) have a significant correlation with the dependent variable “performance’’. Therefore; the business manager should work hard on improving of marketing strategies. Likewise, the empirical findings of the multiple regression indicated that, the independent variables jointly explained 42.8% of the variance in enterprises performance. The predictor variables (i.e., price, Promotion, Place, Segmentation, Targeting and Positioning) have a positive effect on the Performance of MSEs’. However, product and relationship marketing have a positive and insignificant effect on MSE’s performance. It had been found out that the enterprises in the study area aren’t using adequate product strategy to produce quality products/services and to get a competitive advantage over the large enterprise. They have also relationship marketing related problems that affect the performance of the enterprises. Subsequently, recommendations were given to MSE’s operators to produce quality products; charge competitive prices, position appropriately and provide other distinctive functional benefits to consumers and understand the power of relationship marketing because it has the power to enlarge a firm’s creativity, new development, customer satisfaction and brand awareness.