THE IMPACT OF MARKETING MIX STRATEGIES ON SALES PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES: IN CASE OF MANUFACTURING SMEs AT SHASHEMENE CITY OROMIA, ETHOIPIA

In today’s businesses, marketing mix strategies are major components of a successful marketing.<br> SME s in Ethiopia represent a vital part of the economy, being the source of various<br> economic contributions through the generation of income, providing new job opportunities,<br> introducing innovations, stimulating competition and engine for employment. This research<br> paper investigates the impact of marketing strategy on sales performance with special reference<br> to the manufactured SMEs in Shashemene city Oromia regional government, Ethiopia. The<br> survey research design method was used in this study which involves using a self-design<br> questionnaire in collecting data from one hundred ten (110) respondents. The instrument used in<br> this study is a close-ended questionnaire that was designed by the researchers. Correlation<br> coefficient and linear regression analysis were used to analyze the data with the aid of statistical<br> package for social sciences (SPSS) version 20. The results show that the independent variables<br> (i.e. Product, Promotion, Place and Price) were significant joint predictors in term of sales<br> performance (F (4, 105) = 38.976; R2 = 0.598; P&lt; .05). The independent variables jointly<br> explained 59.8% of variance in SMEs sales performance. According to the regression<br> equation established, taking all the four marketing mix strategies into account constant at<br> zero, performance of the case SMEs will be 0.783. The data findings analyzed also shows<br> that taking all other independent variables at zero, a unit increase in product strategy<br> will lead to a 0.470 increase in SMEs Sales performance ; a unit increase in price<br> strategy will lead to a 0.012 increase in the case of SMEs Sales performance ; a unit<br> increase in promotion strategy will lead to a 0.296 increases in SMEs Sales performance and a<br> unit increase in place strategy will lead to a 0.061 increase in in SMEs Sales performance.<br> Subsequently, recommendation were made to SMEs operators to produce quality products;<br> charge value or cost based prices, position appropriately, provide broad product line and<br> distinctive services, approach their retail out late to customer.