INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 01, JANUARY 2020 ISSN 2277-8616

Marketing Strategies Impact On Organizational

Performance
Eniola Anthony Abiodun, Olorunleke Gabriel Kolade

ABSTRACT: This investigation centers on the effect of marketing strategy on performance of an organization with exceptional focus on Small and Medium
Enterprises (SMEs) in Kwara State, Nigeria. The general goal of the investigation was to analyse marketing strategy effect on the organization performance.
The review research plan strategy was utilized in this examination which includes utilizing a self-structure organized composed overview in collecting
information for this exploration were acquired from essential information organization performance was used to evaluate the data. The outcomes exhibit
that the factors which are product, promotion, packaging, and price were noteworthy joint indicators of business performance. The investigation prescribes
that operators to make quality products; charge aggressive costs, position properly, use appealing package for the product, take part in after sale service
and give other particular practical advantages to shoppers.

Keywords: Strategic Marketing, SMEs, price, package, promotion, product.

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1 INTRODUCTION related accomplishment is set up extensively once in a while.

In particular, advertising has been perceived and treated as In this way, as the aggravated model shows, a service or an
an administrative rather than a main organizational capacity. organization's elite may not have much to do with
It focused on choices defined by researching and selecting management dignity. Recognizing the factors that profoundly
objective market, product and brand growth, promotion, and affect goodness and disagreeability of quality is by the
distribution channels (Hunt and Morgan, 2001). This may be critical. On the off chance the company is doing ineffectively,
posing to some extent a one-sided perspective as an it needs to unwind the intent behind the present situation with
assignment to produce, advance and communicate good the intention of constructing a plan for a more optimistic time
and administrative to buyers and organizations (Kotler, to come. As previous studies Hooley et al., (2001); Fahy and
2003). It is commonly recognized that acquiring another Smithee, (1999) have shown, advertising skills and tools
customer can end up being far more costly than unwavering have the ability to be important sources of competitive
customer structure among current customers of firms (Kotler, advantage for organizations. As a segment of promoting an
2003). It clearly reflects the prerequisite among organization's direction, equally progressive direction that
organizations for higher levels of client management. The arranges between internal and external perspectives has
new globalization of the industry has made companies see been shown to have an impact on performance (Matsuno,
the internationalization of their practices as a focused Mentzer and Ozsomer, 2002). In expansion, marketing with
approach to live. Marketing strategy has ended up being a a solid market direction is progressively significant for the
significant thorough instrument for any association to stay in company in all accounts (Kohli and Jaworski, 1990).
a focused economic situation and to be more established. Marketing approaches have been widely considered in the
Aremu and Lawal (2012) see strategy as a detailed overview nations since the 1990s, as shoppers have turned out to be
of asset allocation choices made through an alliance. It more demanding from firms in their trades, while -
epitomizes both desired goals and convictions regarding concentrated difficulties (Pride and Ferrell, 2002). Market-
respectable and most practically undesirable methods of driven cumulative effect capacity to facilitate process
achieving them. (Aremu and Lawal, 2012) state that strategy activities is used to communicate the expectations of a past
indicates the market and situation analysis, consumer buying customer's reward upgraded. It was recorded that the
behaviour, vigorous exercises, and the need and ability to strategy of developing strong consumer relations provided
promote middle-class people. In addition, to compensate for enormous competitive advantage and was receptive to
a system based on transient performance, a temporary organizing contenders ' greetings (Dinis, 2006). This review
promotion center may start to neutralize a long-haul market aims to integrate strategic advertising, the use of
path, business efficiency, and an organization's main advertisement, branding, brand and cost, and its effects on
objectives. From a strategic perspective, as (Morgan, et. al. firm execution have not been overly discussed and, for
2002) suggests, the exhibition of marketing plan should be instance, Cadogan et.al (2002) stresses the need for future
regarded as capital expenditure in building marketing asset research in different nations to benefit from the all-
revenue rather than overhead use; the promotion of inclusiveness of past results. In addition, studies of
marketing resources eventually leads to long-haul quality international or inter-industrial examination are missing in the
exhibition. It is difficult, however, to convince administrators entirety. That is why this study was made. There's massive
for marketing managers without clear, strong, and writing around strategic positioning in the community as well
trustworthy marketing quality evaluation frameworks. as internationally. For example, a study on global market
Regarding corporate authorities, marketing managers are segmentation and marketing strategies was conducted
also routinely unfit to announce and unhesitatingly reinforce internationally (Salah and Craft, 2005); and another study on
circumstances and rational outcome linkages between mobile phone case strategy analysis was conducted
marketing data practices and marketing quality outcomes (Isoherranenl and Kess, 2011). Locally, a study was
(Morgan, et. al. 2002). Marketing quality survey issues are conducted on the use of strategic positioning to gain a
clear as it depends on external factors, such as consumers sustainable competitive advantage at Safaricom Limited
and competitors, to a large extent overwhelming (Neely, (Kasyoka, 2010) and another research on strategic
2002). In addition, relations to business performance are positioning of newly chartered public universities in Kenya
often perplexing and may involve some silliness; karma- was conducted (Kasyoka, 2010). These inquiries, however,
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 INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 01, JANUARY 2020 ISSN 2277-8616

did not plot the impact of marketing strategy on consumer seen as the practice of formulating, executing and assessing
quality, and even more specifically in the sense of Nigeria's cross-functional decision-making that will help a company
small and medium-sized enterprises (SMEs). achieve its desired goals. Here it should be noted that
2 CONCEPTUAL marketing requires activities that please consumers. It is a
RESOURCE BASED VIEW THEORY matching operation. Marketers need to define and
Marketing's growing interest in the organizational response appreciate consumers ' needs and expectations and then
first emerged in the late 1980s and early 1990s, through determine how to best meet them. Throughout culture,
market orientation studies. Scholars at the period are happiness is available through the system of trade.
concerned with the application of the branding theory and Marketing, with its focus on fulfillment, persists because it
related to the business orientation viewpoint both in terms of must meet the needs of society and must be satisfied.
market intelligence Kraaijenbrink, Spender, & Groen, (2010) Therefore, the marketing goal is to facilitate interaction to
and Roos & Roos, (1997) organizational culture. Mielleller, improve the satisfaction of all parties involved (Ibiduni 2004).
Pels and Saren, (2009). From the perspective of market Exchange requires two or more individuals or groups that
intelligence, responsiveness is developed through want to sell the goods. Will party must want to benefit more
knowledge generation and sharing, while from the than it is giving up in order for the exchange to take place;
perspective of organizational culture, responsiveness is that is, both parties must believe that the exchange will
created from three behavioral elements: consumer needs increase total satisfaction. The constituent parts of the
orientation, competitor actions, and Homburg inter-functional marketing strategy concentrate on a comprehensive and
coordination (2007). Another approach that shaped impartial understanding of the current situation. Those
marketing research was the resource-based view (RBV). usually include: (i) Business scope: (ii) Marketing objectives:
This flow is based on the assumption that unique assets are (iii) Target and Positioning segments: (iv) Strategy for
uncommon, valuable and hard to imitate, which in effect marketing mix. Pembi, Fudamu & Adamu (2017) claimed that
explains the heterogeneity of quality among Wernerfelt promotion is any project a company has conducted to
companies (1984); Vorhiese Morgan, (2005); Morgan, encourage an increase in product or service sales, use or
(2012;). Given the need for RBV in theoretical marketing experiment. Promotions are one of the key strategic mixing
research, critics point out its shortcomings in describing methods that almost all companies use to have a positive
sufficiently how and why those companies gain a competitive impact on their profitability. In his research, Behzad (2014)
advantage in dynamic environments.Theorists in strategic describes the important role of colors and graphics in
management contend that the viewpoint of competitive promoting product sales. Empirically, Pride and Ferrel (2002)
potential will make substantial contributions in such markets. analyzed the effect on growth in business performance of
Resource-based view Supported by the Austrian Economic business marketing strategies. The study typically discusses
School, Network and RBV Founded on RBV and market- the following goals: investigate the degree to which product
oriented approach Understand to combine viewpoint with development strategy influences business performance
RBV Speed reaction to signs of environmental change. growth; explore how business performance growth is
Strategic intervention to use the information system on the affected by pricing strategy; determine the extent to which
market as a tool in response to market changes. The concept marketing strategy influences business performance growth.
of marketing strategy is gradually becoming an integral part The results of the study revealed that in terms of product
of today's existing business. The theory of strategy is ancient strategy development marketing strategy, pricing strategy,
to win wars and protect territories, and it comes from Greek. and distribution strategy, company performance was
The aim of designing a company's marketing strategy layout, statistically significant. The consequences of the
according to Owomoyela, Oyeniyi, and Ola (2013), is to investigation uncovered that as far as item improvement
build, create, secure, and maintain its competitive technique, valuing system, promoting procedure and
advantage. Management judgment in strategic marketing is appropriation methodology, organization execution was
crucial in overcoming the difficulty and volatility of the measurably critical. More evidence shows that a product
environment. Long-Yi and Ya-Huei (2012) indicate that the development approach was the main factor in
marketing strategy can be grouped into four lines of entrepreneurial marketing which influenced business
research: (1) a twofold situated advertising system: using success. In his study, Dinis (2006) determined the scope of
viable and passionate item names, simpler to-recollect and the practical application of marketing research on business
retail costs to mull over operational expenses and worth, quality in Nigeria; and to determine the relationship between
mental factors and focused costs. (2) Rational advertising marketing research and business performance in Nigeria.
technique: utilization of practical prerequisites in a balanced The results showed that marketing research is carried out to
position, consider after-deals administration, confirmations, some degree by business performance in Nigeria and there
conveyance and usage good with customer factors. (3) is a significant relationship between marketing research and
Emotional showcasing procedure: bundling, enthusiastic business performance. Gbolagade & Oyewale, (2013)
area, physical item shape accentuation, shading structure, analyzed with specific focus on selected SMEs in Ibadan,
passionate item names use, memory, item bundling and Nigeria, the effects of marketing strategy on business
marking. (4) Marketing methodology for upkeep: clients are performance. The results showed that independent variables
increasingly worried about cost and quality, the use of (i.e. product, promotion, location, price, packaging, and after-
multiple marketing techniques is not appropriate, and sales service) are significantly joint predictors of corporate
producers should improve product packaging and labeling. performance in terms of profitability, market share, return on
Achumba (2000) defines strategic marketing as a preferred investment, and growth.
line of action that an organization has chosen to achieve a
marketing goal. Strategic marketing planning can also be 3 METHODOLOGY
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 INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 01, JANUARY 2020 ISSN 2277-8616

This investigation received engaging strategy that took on a 31-40 years 35 35

cross-sectional study configuration planned for building up 41 years and 45 45
the showcasing rehearses embraced by Small and medium above
ND/NCE 35 35
enterprises (SMEs) in Nigeria.The target population covers Academic
Degree 40 40
the selected SMEs operating in Ilorin, Kwara State. The Qualification
Postgraduate 25 25
selection includes 250 of both the staff of individual small Senior Staff 55 55
Designation
scale business owners. The study adopts samples from the Junior Staff 45 45
population of selected business organization to get their 1-4 Years 30
30
Year Of 5-9 Years 25
common perception about the marketing strategies on the Experience 10 Years and
25
45
performance of their business. Qualtrics sample size 45
above
calculator was used in calculating the sample size. Hence, Source: field survey, 2019
152 sample size of the pharmaceutical company
respondents were selected at random from the population of The analysis in Table 2 showed the effect of marketing
organization in Ilorin Metropolis on Kwara State; the strategies through promotion, packaging, product and price
selection includes both individual small scale business on the performance of the selected SMEs. The results of the
owners and of both sexes. A total of 100 questionnaire analysis in Table 2 as indicated by confirmed the mean value
properly filled were received from the respondents of 152 of 4,40 on a scale of 5.0 indicating that marketing strategies
constituting 66% percent of the distribution. A linear had high (64%) effect on the sales performance of the
regression model will be specific for the determination of the selected SMEs. Also, the results indicated that the
effect of marketing strategies on the performance of SMEs in respondents revealed that marketing strategies had positive
Ilorin using profitability and sales volume respectively as effect on the profitability of the selected SMEs. The
proxies of the performance of the company respondents disclosed that as a result of the use of
marketing strategies the SMEs recoded better performance
4 ANALYSIS on their profitability. This was confirmed by mean values of
Table 1 analysis shows the social demographic 4.75 on a scale of 5.0 indicating that marketing strategies
characteristics of the study respondents. The analysis shows had a high (73%) effect of performance of the SMEs.
that the participation of both genders was appropriate,
because both genders were well represented. Table 1 show Table 2
that around 60 percent of respondents were male while 40% Me
were female. As far as age, larger parts of the respondents Mea dia
frequencies St.dev
n
speaking to 45% were over 40 years. This was followed by Perfor
n
those whose ages were between 31-40 years and 21-30 mance
B
years representing 35% and 20% respectively indicating that e
indicat Much
our respondents were matured enough to give information ors
Much
Worse Average
t
bette
on the subject matter. The qualification of the respondents, worse t
r
majority (40%) of the respondents possessed degree and e
r
was closely followed by holder of ND/NCE holders who were 6
35% of the respondents while post Graduate degree (25%) 4
indicating that our respondents were educated enough to 36
Sales
know and understand the questionnaire given to them. (
volum 0(0%) 0(0)% 0(0)% 4.
Furthermore, Table 1 likewise uncovered that significant 6 (36% 4.0 .49
es 4
4 ) 0 2
information for this investigation originated from respondents %
0
whose status was significant among in the organization and )
along these lines their information was pertinent and reliable. 7
Majority (55%) of the respondents were senior officers while 3
4.
45% of the respondents were junior staff respectively 16 27
7
Profita ( 4.0 .57
indicating that our respondents were in the correct situation 0(0%) 0(0%) 5
bility (10.1%) 7 (27% 0 4
to supply the type of information needed for this study. In 3 )
addition to their designation, Table 1 also showed that the %
majority (30%) of the respondents had 1-4 years of )
experience. This was closely followed by those with 10 years’ Source: Field Survey, 2019.
experience representing 45%. Also, 25% of the respondents
had got experience for a range of 5-10 years showing that 5 AN INFERENTIAL ANALYSIS
the respondents of this study good knowledge of the The result of R-Square showed that the model has a good fit
workings of the selected SMEs under study in Ilorin and that nature of market strategy, accounts for about 53.8%
metropolis. variation in SMEs performance. This indicates that nature of
market strategy through, promotion, packaging, product and
Table 1: Demographic of Respondents price accounts for about 53.8% of the SMEs performance
Socio- whereas the remaining 46.2% are other factors which
demographic Category Freq %
Characteristics
determine the SMEs performance but were not captured in
Male 60 60 the model. Even after adjusting with the degree of freedom;
Gender the adjusted R-Squares showed that promotion, packaging,
Female 40 40
Age 21-30 years 20 20 product and price account for 53.4% systematic variation in
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SMEs performance. The regression assumption was also sized enterprises, the high quality product produced by the
checked by autocorrelation and multi- collinearity tests. The small and medium-sized enterprises, the affordable price
results of the Durbin Watson (DW) was satisfactory at 2.754 charged by the small and medium-sized enterprises, and the
implying that the residuals are not auto-correlated as the attractive packaging used by the small and medium-sized
value is greater than 2. The multi-collinearity of the variables enterprises for the product contributed to the higher
in the model was verified by the tolerance (Tol.) and the performance of the small and medium-sized enterprises in
values were satisfactory. The tolerance values were high terms of profitability and sales volume. This is in line with
ranging from 0.566 to 0.782 which are far above 0.1 the Gbolagade & Oyewale (2013) who accepted that the
worrying level and the variance inflation Factor (VIF) values company organization's blood is the advertising mix
ranging from 1.279 and 1.767 were also lower than the technique. The outcome of the t-test showed that there is a
worrying level of 10 and above indicating that there were no positive relationship between promotion and packaging and
multi-collinearity problems among the independent variables quality of SMEs together with the theory that says. This
in the data as indicated in table 3 below. means that an increase in positive promotional and
packaging changes will result in a corresponding increase in
Table 3 the performance of SMEs. This is in line with Gbolagade &
Oyewale (2013) Chaneta, (2012) which says that packaging
Collinearity
Unstandardized
Standardized canTincrease sales through statistics
such promotional movements as
Coefficients Sign
Model providing more multipacks in smaller or larger sizes, better
Std Error Coefficients
pictures of the product itself, images of the product in use
B Beta tolerance
and more efficient color usage. In addition,VIF
Behzad (2014)
explains in his research that colors and graphics play a key
role in promoting the selling of goods. In addition, promotion
is projected to have a substantial impact on the performance
of SMEs in line with the analysis by Pembi et al. (2017).
Constant 23.510 8.419 Promotion
2.793 is any initiative an agency has
.006 conducted to
1.767
PKG .547 .263 .186 5.588
encourage .000
an improvement .566in a product or1.650
service's sales,
PRM .402 .326 .452 use4.019
or experiment..000 .606 are one of the
Promotions 1.279key strategic
PRD -2.056 .313 -.501 -6.578 .835 .782 1.894
PRC 0.56 .268 .016 mixing
.208 tools that nearly
.535 all
.528 organizations use to have a
positive impact on their profitability. This has been shown to
have a significant relationship on the quality of SMEs in this
research. Despite the overall impact of marketing strategy on
the performance of SMEs, however, the test of statistical
significance using t-test and standard error showed that the
Model Statistics relationship between product and cost and performance of
SMEs is negligible. This is because there is no incentive for
many Nigerian consumers to buy products at higher prices.
R .581 The buyer base in the Nigerian market's low price segment
R2 .538 is high. Such consumers are searching for goods that deliver
Adjusted R2 .534 value for money in the low-cost segmental ways. The buyer
S.E of estimate 7.47275 will either look for an alternative or leave the item when the
F- stat 46.323
Sig (F stat) 0.000
price is higher. This research is not in line with the finding of
DW stat 2.754 a significant relationship between price and market quality by
Gbolagade & Oyewale (2013). The sales volume will decline
when the price is high and the profitability will diminish. A
Source: Field survey, 2019. higher or cheaper quality can be used to promote the product
a. Dependent variable P as a competitive advantage. Likewise, consumers also buy
Predictors: (constant), PKG,PRM,PRD,PRC. products, with careful planning, and by comparing price-
PKG= Packaging based brands.
PRM= Promotion
PRD= Product 6 CONCLUSION
PRC= Price This study examined the effect of marketing strategies on
P= Performance. quality of SMEs in Ilorin, Kwara State, with specific reference
Y =-23.510 + 0.547+ 0.402 - 2.056 + 0.650 +µ to some selected SMEs. The analysis showed that the
influences of both advertising strategies affect and shape the
The f-test (f=46.323,p<0.05) showed that there is a life, growth and development of the brand organization
substantial overall correlation between that essence of business of the customer. This has also shown that strategic
market strategy in terms of marketing, advertising, brand and marketing factors make company results more important.
price performance, and small and medium-sized businesses Strategic advertising considerations are therefore sine quo
with a lower likelihood value of 0.000, which is significantly none for business performance to be acceptable and
lower than 0.05 using a significance level of 5%. Therefore, rewarding. The report further suggests that while many
in determining the quality of SMEs, promotion, packaging, business organizations benefited from the advantages of
service and price are successful. This implies that the their services and pursued opportunities in their climate. In
effective distribution channel used by the small and medium- researching the effect of marketing strategies on the
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