International Journal of Business and Economics Research

2023; 12(3): 99-107

http://www.sciencepublishinggroup.com/j/ijber
doi: 10.11648/j.ijber.20231203.13
ISSN: 2328-7543 (Print); ISSN: 2328-756X (Online)

The Role of Marketing Strategy on Market Performance:

A Study on Small and Medium Enterprises in Ethiopia,
Jimma Town
Endalkachew Desta1, *, Chalchissa Amantie2, *
1
Management, College of Business and Economics, Wachemo University, Hossana, Ethiopia
2
Management, College of Business and Economics, Jimma University, Jimma, Ethiopia

Email address:
*
Corresponding author

To cite this article:

Endalkachew Desta, Chalchissa Amantie. The Role of Marketing Strategy on Market Performance: A Study on Small and Medium
Enterprises in Ethiopia, Jimma Town. International Journal of Business and Economics Research. Vol. 12, No. 3, 2023, pp. 99-107.
doi: 10.11648/j.ijber.20231203.13

Received: February 27, 2023; Accepted: May 8, 2023; Published: May 29, 2023

Abstract: This study investigates the role the marketing strategies on the market performance of medium and small
enterprises in Ethiopia Jimma Town. To achieve the objectives of this study descriptive research design and qualitative
interpretive approach were also employed. To answer the research questions, semi-structured interviews were administered
to target respondents of small and medium enterprise owner-managers. A sample of 15 enterprise owner-managers was
selected by using the purposive sampling method. The data collected by in-depth interviews were analyzed using qualitative
data analysis steps in which collecting the data through appropriate data collection methods to collect all the data without
missing, recording, and note taking are the important activities to be done. Categorizing and refining the recorded
interviews for analysis, applying inductive data analysis, and writing the report are steps used to analyze data. Based on
fifteen interviews without owners/managers in different firms, it was found that a well-defined marketing strategy leads to
an increase in the business market performance. The findings of this study indicated that marketing strategy dimensions
such as (product, price, promotion, place, people, process, physical evidence, segmentation, targeting, and positioning)
strategies are determinant factors that play great in forcing the achievement of market performance. The study recommends
that to get high revenue and profitability small and medium enterprise owners’ managers should continually adopt and
implement marketing strategies.
Keywords: Product, Price, Promotion, Place, Marketing Strategy, Market Performance

Medium and small businesses enterprise between the

1. Introduction world’s most influential financial teamsters and they also
participate in reducing unemployment opportunity now, a
Marketing is said as a significant component of any
day many financial bases are entirely found on small
successful business, regardless of its size, sector, nature of its
business enterprises with an optimistic impact on the lives of
duties, and even its purposes and objectives. The main goal everyone who engage in working such business events [17].
of any business is to be effective and remain in business, By their very nature, SMEs constitute the most feasible and
successfully. And it’s a no-secret fact that the success or genuine vehicle for self-sustaining industrial expansion [23].
failure of a firm relies on its marketing strategies Therefore, Marketing strategy has developed into a serious device for
marketing strategy is most successful when it is an integral all of these small and medium businesses to stay competitive
element of a business mission, target marketing, marketing in the market and produce stronger stress marketing
mix, and defining how the business will successfully engage strategies have become a vital tool for all companies
consumers, prospects, and competitors in the market field everywhere in the world to endure in an extremely
[32].
 International Journal of Business and Economics Research 2023; 12(3): 99-107 100

competitive marketplace environment and to be stronger [29]. The promotion constituent of the firm marketing mix
The existing globalization of markets has completed a includes all-important "activities, materials, and media used
trade to see the internationalization of their exercises as a by a vender to notify and retell potential customers about a
way of being competitive. Marketing strategies have specific product donation [21]. Zeweter, F [33] Conducted
developed very important for any organization to be research on his strategic marketing book and specified,
competitive situation thus more beached [3]. promotion embraces all of the tools obtainable to the vendor
As stated in Ishar, A. M [9] Impact of marketing mix for marketing information. People are vital in the transfer of
strategies on performance, the study outcome revealed that services. If the waitperson is in a bad temperament, even the
product, price, place, and promotion have an encouraging finest food may not look as appetizing. A friendly beam
influence on business performance. Pricing has a solid effect never hurts. Serious exercise for your manpower on how to
on firm performance. [29] Did research on the assessment of deal with customers and eventualities is critical to your
marketing strategy in the case of Raya Brewery S. C. The achievement [11]. Everyone who contacts your customers
result shows that the firm wants to bring into line its will consent and impress. Most customers cannot detach the
marketing strategies with its vision and mission. Moreover, product or service from the staff fellow who delivers it, so
another study accompanied by [13] on the effects of your people will impact purchaser satisfaction positively or
marketing strategies on textile firm sales volumes revealed negatively [25].
that marketing strategies also play an excessive role in the The finding of Saha, M [24] the physical evidence for
sales performance of textile industries in Ethiopia. Even if in mobile network service providers was discovered to include
diverse portions of the world various research studies have network towers, office buildings, retail store condition
been conducted on the subject matter. But most related houses, and service complaint centers. These factors
studies were conducted on the effect of marketing strategies, significantly impact the customers' outward appearance,
the impact of marketing strategies, and the challenges of which can lead to a particular purchasing behavior.
marketing strategies on performance and analyzed by using Mohammad [18] Because consumers frequently conclude the
only 4ps. But this study incorporated some other variables likely quality of a service provider by examining the physical
those other researchers have missed like people, physical evidence of the service environment, Mohammad [18]
evidence, and process. Despite the above theoretical and concluded that the circumstance of physical evidence of a
empirical facts this study was a proper venue to fill the gap of service supplier could affect the consumers' perception of the
other research. quality of the service. Marketing efforts can be intense on the
market segments offering the highest potential for the
2. Review of Related Literature company to accomplish its goals, be they to exploit profit or
save the best long-term position for the product or any other
2.1. Theoretical Review proper goal [33].
Positioning is the habit of marketing to allow people to
The finding of [25], “Marketing strategy is apprehensive form a psychological image of your product in their minds
with decisions linking to market segmentation and targeting, (comparative to other products). Positioning is how the
and positioning strategy based on product, price, product or service is to be seeming by a target market
distribution, and promotion decisions.” Kotler, P. K. [14], equated to the competition. It answers the question: “Why
“Marketing tactic is the marketing sense by which the will somebody in the target market(s) buy my product or
corporation hopes to generate customer value and attain service in its place of the competition?” An equal question is:
profitable interactions. “What should be the perceived value of my offering equated
People use products to mollify their needs and to the rivalries?” [15].
requirements. A product is anything that can be obtainable Performance, as an idea, is a subject open to wide
to somebody to fulfill a need or desire. Thus, physical changeability as it is a somewhat imprecise word when it
products are simply vehicles for bringing services to purposes as a placeholder in research [7]. The lack of
people. A pricing strategy is a rule that a firm uses to agreement on a definition creates misperception and clearly
control how plentiful it will charge for its goods and limits the possible generalizability and comparability of
services. Strategic pricing approaches are generally research in this area [8]. In general, the writings on
classified into three groups: cost-based pricing, value- performance show that there is neither one single standard
based pricing, and competition-based pricing. A nor a set of criteria accepted by marketing strategy academics
communal issue among pricing strategies is that, at last, for performance assessment [31]. There are numerous
the total income generated from the set price increased by different metrics that can be used to assess success, including
the retailed units must cover the costs of the process while financial, market, customer, and overall metrics. As a result,
also permitting adequate profit margin to guarantee a the performance of small and medium-sized businesses will
suitable return on asset. The achievement and importance be assessed in this study in terms of profitability and sales.
of numerous pricing strategies, such as the traction and
price differentiation strategies, can be fixed by their sales 2.2. Empirical Literature Review
and customer gratification results [20].
Research of Adewale, G [1] concludes the authors of
101 Endalkachew Desta and Chalchissa Amantie: The Role of Marketing Strategy on Market Performance: A Study on
Small and Medium Enterprises in Ethiopia, Jimma Town

"Impact of Marketing Strategy on Business Performance on virtue of knowledge or skill. Therefore, the researchers
SMEs in Nigeria" found that the independent variables (i.e., selected sample representatives purposively. So the samples
product, promotion, place, price, packaging, and after-sales of 15 owners/managers of small and medium enterprises
service) were significant joint predictors of business from those working in 17 kebeles in Jimma Town was taken
performance of SMEs in terms of productivity, market share, by considering all classification of enterprises in different
return on investment, and growth. Establishes a strong link kebeles. According to [5] researchers gather one or more of
between the performance and SMEs' marketing strategy. [16] the four basic groups of qualitative data: observations,
Has studied “The Impact of Marketing Strategy on a Firm’s interviews, documents, and audiovisual materials. In
Performance opinion survey on Employees of Dashen Bank selecting the type of data to collect, researchers need to
S. C.” Her study discovered that the marketing mix variables gather evidence that was answer their research questions.
have made an influence on the financial performance of the Therefore, in this study, in-depth semi-structured
Bank. interviews were employed to gather information from
Similarly, Tilahun, N [26] has considered assessing the respondents.
effectiveness of marketing strategy in the Case of Bank of
Abyssinia S. C and his study acknowledged that STP, 3.3. Methods of Data Analysis
product, price, promotion, and place strategies have played a The finding of Creswell, J. W [5] the initial stage in data
substantial influence on the performance of the bank, while analysis is to prepare research-related questions by taking
product and place have bet better-forecast than price and into account the typical behavior of the data. The second
promotion. [9] Product, pricing, site, and promotion all have phase entails collecting the data using appropriate data
a big impact on how well a business performs, according to collection techniques. The third phase involves recording and
the study's findings on the impact of marketing mix taking notes, which are important activities to complete in
techniques on performance. [28] Conducted research on Raya order to collect all the data without losing any of it. Sorting
Brewery S. C. to evaluate its marketing approach. Finally, it the recorded interviews into categories and cleaning them up
was proposed that the company should match its marketing for analysis, using inductive data analysis, and completing
tactics to its objective and vision. [13] Examined the the process by writing a report with the researcher's analysis,
connotation between marketing strategy and sales capacity in discussion, and understanding.
Ethiopian textile companies.

4. Results and Discussion

3. Research Design and Methods
This section provides an overview of the data acquired
3.1. Design and Approach from in-depth semi-structured interviews with fifteen small-
It is one whereby the researchers deemed part of the to medium-sized business owners and managers. Gaining a
research process and endeavor to uncover meaning and gain clearer knowledge of the goal of the interviews, which is to
an understanding of broad interrelationships in the context evaluate the impact of marketing tactics on the performance
they research. It helps to understand how and why things of small and medium-sized businesses on the market, was
happen: exposing meaning [4]. Therefore, for this study, one of their key goals. In order to accomplish the study's goal,
descriptive design and qualitative interpretive approach were relevant literature was reviewed, and semi-structured
utilized. interviews with business owners and managers were used to
gather qualitative data. The information gathered through
3.2. Sampling and Data Gathering Methods interviews was examined, explained, and discussed thus,
based on the analysis, the following findings were written,
According to Bernard, H. [2] purposive sampling is a conclusions were drawn, and recommendations are
nonrandom sampling method in which the investigator forwarded. The summary versions of the fifteen reviews view
decides what needs to be known and sets out to discover are contained in Table 1 and Table 2 below:
people who can and are keen to provide the evidence by

Table 1. Owner/manager interviews results summary partially ordered meta-matrices (Item 1-9).

Item № Main theme Responses of interviewees’ summary description

1) All of a company’s marketing goals and objectives are combined into a single comprehensive plan.
Marketing strategy
1 2) The long-term planning of business objectives that the company wants to achieve.
definition
3) Refers to a business’s overall game plan for reaching consumers
1) The association between the marketing team's stated goals and objectives versus actual results.
Market performance
2 2) The ability of a company, a department or an individual to achieve its or their objectives and expected results.
definition
Considered to be the company's ability to profit from the resources and achieve its objectives.
1) Helps companies diversify target customer ranges and expand into new market segments.
The Role of product 2) Identifies new opportunities, and assesses the company's product performance.
3 strategy on market 3) Helps develop its long-term strategic plans for future product lines.
performance 4) Helps understand the product's success before, during, and after its development. Important in guiding the
direction of new product ideas.
 International Journal of Business and Economics Research 2023; 12(3): 99-107 102

Item № Main theme Responses of interviewees’ summary description

1) Can affect everything about how product is received by the market.
2) Defines the value that product are value for us to make and for our customers to use.
The Role of price 3) The roles that prices play prices create incentives to work and produce.
4 strategy on market 4) Prices allow markets to respond to changing conditions.
performance 5) Prices scarce resources efficiently and it is believed that pricing has a significant effect on the buying behaviour
of consumers. Can help the company achieve profitability? Effective pricing strategy will always significantly
and positively influence a firm’s sales volumes
1) To influence people about their business. Making people aware of the products or services they offer. The
The Role of promotion important purpose that a promotion serves is that it sets a business apart from its competitors. Promotes
5 strategy on market business to a target audience. Helps to understand customers.
performance 2) Helps to brand Business. To increase the demand and hence the sales.
3) To communicate with the market.
1) How and where the business will strategically put its products to attract the target audience.
2) Refers to providing customers access to the product.
3) It also calls into play convenience for the customer.
4) The key role that distribution plays is satisfying a firm's customers.
The Role of place
5) Achieving a profit for the firm.
6 strategy on market
6) Helps to improve the way customers interact with your business.
performance
7) Leading to customer satisfaction and repeat business.
8) The role of the distribution channel system and its members becomes very important.
9) A huge role in attracting and retaining the best employees. It guides businesses in strategically locating their
products. Services to ensure they are accessible to consumers
1) The company’s overall plan is to attract and retain its workforce.
2) Focus on building relationships between organizations and employees.
3) Supports a strong leadership channel that identifies people.
The Role of people
4) People are the most important component in an information system because it is only a human who can
7 strategy on market
consider information from data.
performance
5) Without people, you have no one to market to.
6) It governs every aspect of the employee-employer relationship.
7) So, if you want your company to succeed, invest in your people.
1) Physical evidence is the environment in which the service is delivered.
2) Where the firm and customer interact. Tangible components that facilitate the performance or communication
The Role of physical
of the service. The physical design and layout of the premises.
8 evidence strategy on
3) Provides tangible hints of the quality of experience that a company is offering.
market performance
4) The strategy helps in determining and identifying service quality expectations. Physical evidence is often
referred to as the "silent witness."
1) Documentation and establishment of the processes that an organization puts in place to achieve its goals.
2) Strategy provides the opportunity for us to increase production.
The Role of process 3) To create more of whatever it is we make, spending less time on each step of service provided.
9 strategy on market 4) Is used to prioritize efforts, and effectively allocate resources.
performance 5) Align shareholders and employees to the organization's goals.
6) Ensure those goals are backed by data and sound reasoning.
7) Approach to transforming resources into goods and services.

Source: Own survey 2023

making, communication and/or delivery of products that

4.1. Findings for Marketing Strategy Definition offer value to customers in conversations with the business
Managers/owners of SMEs were asked what by mean and thereby allows the organization to accomplish specific
marketing strategy, based on their enterprise context. As a objectives.”
result, most of their response was almost similar as shown in 4.2. Findings for Market Performance Definition
(Table 1, No. 1).
Most of the respondents define marketing strategy, it is the Owner/managers of small and medium enterprises were
long-term planning of business objectives that the company asked to define what market performance means to them, and
wants to achieve. One interviewee define marketing strategy most of them said that “market performance means the
as a company’s marketing goals and objectives combined alignment between the marketing team's stated goals and
into a single comprehensive plan. One owner-manager who objects versus actual results”. The others said that “market
engaged in trade enterprise said that “marketing strategy performance means the ability of a company, a department or
refers to a business’s overall game plan for reaching an individual to achieve its or their objectives and expected
prospective consumers and turning them into customers of results and it is considered to be the company's ability to
their products or services.” Similarly, [30] “Marketing profit from the resources and achieve its objectives.” Some
strategy refers to an organization’s combined pattern of of the enterprise owner-mangers said that “Market
results that specify its crucial choices regarding products, performance for business means that a direct flow of goods
markets, marketing events, and marketing resources in the and services from manufacturer to purchaser or user in order
103 Endalkachew Desta and Chalchissa Amantie: The Role of Marketing Strategy on Market Performance: A Study on
Small and Medium Enterprises in Ethiopia, Jimma Town

to best satisfy consumers and accomplish the firm's buying behavior of consumers because the higher a product
objectives.” is priced, the fewer units are sold.” some of the owner-
Also, market performance defined by Ferdinand, A [6] managers replied as price strategy strongly affect everything
stated that the performance of the marketing of an issue is about how your product is received by the market and the
often used to measure the influence of the company value that his product is worth for him to make and for his
marketing strategies applied. Marketing strategies are always customers to use. A majority of the owner-managers
directed to harvest the performance marketing (as sales interviewed about the roles of price strategy said that “Prices
capacity and the level of sales growth). The finding of allow markets to respond to changing conditions and prices
Muzenda, A [19] shows that there is a significant association scarce resources efficiently.” Three owners of wood and
between entrepreneur attributes, firm characteristics, external metalwork enterprises responded about the role of price
environment, and SMEs performance. strategy on market performance showing it has a positive role
that can help our company to achieve profitability, support
4.3. Findings for the Role of Product Strategy on Market product positioning, and complement the marketing mix and
Performance it will always significantly and positively influence a firm’s
Respondents were asked to explain the role of product sales volumes.
strategy in the market performance of their enterprise, they 4.5. Findings for the Role of Promotion Strategy on Market
said that product strategy plays a great role in the Performance
identification of new opportunities, assesses the company's
product performance, and helps develop its long-term The following open-ended question was posed to
strategic plans for future product lines. Some of them said respondents: "What is the role of promotion strategy on
that product strategy translates into higher sales growth rates market performance?" Many respondents indicated in their
and returns, and it is critical for a modern firm’s success. responses that the promotion plan plays a part in the
Two of the service enterprise managers responded that enhancement of the sales position or business development.
product strategy helps companies diversify target customer They claimed that without communication, buyers would
ranges and expand into new market segments and helps to not be aware of the features, benefits, and plans, and the
understand the product's success before, during, and after its goals of launching products or services and growing sales
development. would not be achieved. Due to the fact that promotion
Similarly, other interviewees responded that product strategies raise awareness, only then can clients develop an
strategy plays an important role in guiding the direction of interest in the product and make a purchasing decision. In
new product ideas and development, setting a clear and addition, other respondents mentioned how promotion is
unified vision. And the remaining participants said that the important for positioning a brand on the market, informing
main role of product strategy is that it clarifies what the team consumers about the goods or services available, and how
should do which will result in increased productivity and it choosing they will benefit them. Promotion is also used to
creates brand loyalty during market penetration and acquires generate more leads, increase customer engagement, and
new customers. One respondent responded that “The role of position a company's brand. Additionally, some of them
product strategy to our business is it enables us to focus on a mentioned the importance of marketing in differentiating a
specific target market and feature set, instead of trying to be company from its rivals, reaching a target audience,
everything to everyone.” So product strategy outlines a understanding customers, building a company's brand,
company's strategic vision for its product offerings by stating increasing demand and subsequent sales, and
where the products are going, how they will get there, and communicating with the market. Also, a alike result showed
why they will succeed. And it plays a great role in providing on the study by Mumel, D. H [18] showed that there is a
better customer support which creates better customer significant association between the number of marketing
satisfaction. The price level of the product relative to the communication actions a company practices and their net
consumer's buying power, fairness of the product's price sales and customer faithfulness.
relative to perceived benefit, and pricing strategies are
directly related to the product sales level [12]. 4.6. Findings for the Role of Place Strategy on Market
Past investigators have undoubtedly recommended that Performance
product strategy impacts have an important effect on business Several of the respondents answered that for the question
performance [22]. Marketing Strategies and the Performance they asked “What is the role of place strategy on market
of Small and Medium Enterprises are highly correlated [27]. performance?” they said that the main role plaid by placement
4.4. Findings for the Role of Price Strategy on Market strategy is providing customers access to the product, and it
Performance also calls into play convenience for the customer and where
the business will strategically put its products to attract the
Respondents were asked to respond about the role of price target audience. Two of the service sector owners said that the
strategy on market performance; one of the respondents key role that distribution plays is satisfying a firm's customers
stated to me that; “price strategy has a significant role on the and achieving a profit for the firm as well as it helps to
 International Journal of Business and Economics Research 2023; 12(3): 99-107 104

improve the way customers interact with your business, 4.8. Findings for the Role of Physical Evidence Strategy on
leading to customer satisfaction and repeat business. In Market Performance
addition, other interviewees explained the role of the place
strategy as a means to attracting and retaining the best The respondents indicated (Table 1, No. 9), the role of
employees, many of whom keep a close eye on where they're physical evidence strategy on market performance, they
based in order to adjust work-life balance and guides stated like physical evidence is the environment in which the
businesses in strategically locating their products and services service is delivered and where the firm and customer interact,
to ensure they are accessible to consumers. and any tangible components that facilitate performance or
The above findings are supported by another study communication of the service. Two of the owner-managers
conducted by Karanja et al, [11] outlines that channel responded to the same question with previous interviewees
management influences sales performance by creating a that the physical design and arrangement of the premises
difference to protect brand esteem, authorizing merchants to create the environment in which the service or product is
offer their items at a premium, whereas allowing the channel delivered and it provides tangible cues of the quality of
to up-sell the accurate administrations and back offerings that experience that a company is offering. In addition to this one
encounter the customers require. of the owners of a wood and metalwork enterprise responded
that physical evidence plays a great role in market
4.7. Findings for the Role of People Strategy on Market performance by determining how physical evidence identifies
Performance the service quality expectations and customer perceptions.
Most owner-managers replied as the role of people strategy for 4.9. Findings for the Role of Process Strategy on Market
our market performance is that the services are being provided Performance
with the help of employees and customers. By identifying
individuals with the potential to develop into leaders and As most of the respondent’s response process strategy
collaborating with them to create a plan for their own provides the opportunity for the business to increase production,
leadership development, people strategy also helps to generate to create more of whatever it is you make, spending less time on
a strong leadership channel. It is important to carefully choose, each step of service provided. So without process strategy, the
educate, and motivate the employees in order to sustain service cannot be delivered properly with uniformity. For
tremendously satisfied customers. People are therefore availing a service certain activities are to be performed. For that
essential for service marketing. According to a few of the purpose, the procedure, mechanism, and flow of activities by
respondents, a company's whole recruitment, engagement, which services are delivered are to be decided. The other
training, and retention plan—which also emphasizes building participants discussed the role of process strategy in a way that it
relationships between businesses and employees—is described maintains the standard format for availing the services and is
as its "people strategy." One interviewee said “People are the used to prioritize efforts, effectively allocate resources, align
most important component in an information system because it shareholders and employees on the organization's goals, and
is only a human who can consider information from data ensure those goals are backed by data and sound reasoning. In
because of that without people have no one to market to; no addition, one owner of the enterprise said that the role of a
one there to buy our product or make use of our services. One
process strategy is “to approach transforming resources into
manager of an enterprise said, “If you want your company to
goods and services.” In general, the process strategy has the role
succeed, invest in your people.” The response from different
of playing actual procedures, mechanisms, and flow of activities
respondents shows that people strategy can play a great role in
the market performance of medium and small enterprises in by which the service is delivered termed as the process.
the study area.

Table 2. Owner/manager interviews result in summary partially ordered meta-matrices (Item 1-3).

Item № Main theme Responses to interviewees’ summary description

1) Provide a foundation for businesses to plan.
2) Likely to reach potential consumers.
3) Encourage existing customers to continue purchasing from a company.
The Role of Target market 4) It's part of a universal marketing strategy. Involves segmenting the market, and choosing which segments of
1 strategy on market the market are appropriate.
performance 5) Determining the products that will be offered in each segment.
6) Narrowing marketing scope to a more manageable group of people.
7) Will also eliminate the cost of over-targeting. Minimize reach to one or two specific markets. Helps to
improve the market and personalize your approach towards your customer.
1) Help you to improve the performance of your marketing operations. -Helping you to target the right people
with the right messaging at the right time.
The Role of Segmentation
2) Helps to determine which customers you can build relationships.
2 Strategy on market
3) It helps us to focus on what segments we want to target with specific products or services.
performance
4) Better serve a customer’s needs and wants. Market competitiveness.
5) Market expansion. Targeted communication.
105 Endalkachew Desta and Chalchissa Amantie: The Role of Marketing Strategy on Market Performance: A Study on
Small and Medium Enterprises in Ethiopia, Jimma Town

Item № Main theme Responses to interviewees’ summary description

1) The purpose of a positioning strategy is that it allows a company to spotlight specific areas where they can
outshine and beat their competition.
2) Helps establish our product's or service's identity within the eyes of the purchaser.
The Role of positioning
3) Makes about the kind of value it will create.
3 strategy on market
4) How that value will be created differently than rivals?
performance
5) Allows you to influence how others view our product.
6) Creates clarity around whom we serve. It helps to justify our pricing strategy. Helps establish our product's or
service's identity within the eyes of the purchaser.

Source: Own survey 2023

strategy plays the role to decide which segments will be

4.10. Findings for the Role of Segmentation, and served and identifying any untapped needs in the
Positioning Targeting Strategy on Market marketplace, as there could be customers who may not be
Performance adequately served by competitors” So Selection of target
The majority of the respondents responded to the question customers is a fundamental role for small and medium
“What is the role of segmentation strategy on market enterprises market performance.
performance?” they repaid that segmentation strategy is For the question they asked in (Table 2, No. 3), about the
significant for managers to acquire a better understanding of role of positioning strategy on market performance, most of
the needs and wants of customers. And this enables them to the respondents said that positioning strategy the role to:
customize or to ‘tailor’ the company’s marketing activities “allows us to influence how others view our product, creates
more accurately and responsibly to the individual customers’ clarity around who serve, it helps us to justify our pricing
liking. One interviewee said that “segmentation strategy strategy.” This shows that it helps to establish their product's
supports businesses in meeting and exceeding their or service's identity within the eyes of the purchaser. Some of
customers’ requirements.” This shows segmentation strategy the interviewees stated the role of market positioning as
determines which customers you can build relationships with, “Positioning plays a role of marketing to enable people to
how to group them, and what marketing actions to take to form a mental image of our product in their minds and also
best reach your target market. In addition to this three owner- positioning has the role of how the product or service is to be
managers responded to a similar question that segmentation perceived by a target market compared to the competition.”
strategy plays a role in improving the performance of our One of owner-manager who engaged in service sector
marketing campaigns by helping us to target the right people enterprise said that “market positioning strategy has a great
with the right messaging at the right time and it helps them to role on market performance by establishing the image or
focus on what segments they want to target with specific identity of a brand or product.”
products or services. One of the interviewees also said that
“segmentation strategy has a great role in giving awareness 5. Conclusion
to give better serve a customer’s needs and wants, market
competitiveness, market expansion, and targeted The main objective of this study was to gain a deeper
communication.” understanding of the objective which is to assess the role the
As responses found from most of the manufacturing marketing strategies on the market performance of small and
enterprise’s owner-managers (Table 2, No. 1), the role of medium enterprises in the study area. Based on fifteen
target market strategy on market performance is “to segment interviews with owners/managers in different firms, it was
the market, choosing which segments of the market are found that a well-defined marketing strategy leads to an
appropriate, and determining the products that will be offered increase in the business market performance. The result of this
in each segment”. Therefore, narrowing the marketing scope study shows that product strategy has a great role in the market
to a more manageable group of people so that he/she can performance of small and medium enterprises in terms of
have a better quality of interaction. Others said that “proper profitability, increase sales, customer satisfaction, market
identification of target market has a significant role on a expansion, etc. This is because it identifies new opportunities,
business to understand its audience better and will also assesses the company's product performance, and helps
eliminate the cost of over-targeting.” So to reach potential develop its long-term strategic plans for future product lines.
consumers and encourage existing customers to continue The findings also discovered that price strategy has an
purchasing from a company, targeting is a very important important on business market performance by, providing the
marketing strategy. The interview investigation of owner- right pricing approach which is essential to remain
managers shows that there is identifiable target customers or competitive. The effect of promotion strategy on
market according to the type of organizations that emerged as performance is very significant, in that promotion is about
well as identifying the target market as an enterprise communication which brings about and creates awareness,
customer and residential customer this helps them to refine interest, and trial. And key to positioning the brand on the
their market and personalize their approach towards the market, making people aware of the products or services they
customer. One interviewee responded that “target market offer, and how they could benefit by choosing them. The
 International Journal of Business and Economics Research 2023; 12(3): 99-107 106

study findings show that the STP strategy has a significant conducting, and evaluating quantitative and qualitative
role in the market performance of SMEs. Therefore, the STP research, Upper Saddle River, N. J: Pearson Merrill Prentice
Hall.
strategy helps SMEs to focus on the needs and wants of their
customers and improves the performance of their business. [5] Creswell, J. W. (2009). Research Design: Qualitative,
The owner/manager of SMEs should develop and implement Quantitative, and Mixed Research Approaches. Los Angles.
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The authors announce no conflicts of interest. Pearson Studium: Economic BWL.

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