THE EFFECTS OF MARKETING STRATEGIES ON THE SALES

PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN CENTRAL

GONDAR.
UNIVERSITY OF GONDAR, SCHOOL OF MANAGEMENT AND PUBLIC
ADMINISTRATION, DEPARTMENT OF MANAGEMENT
IN PARTIAL FULFILLMENT FOR THE AWARD OF MASTERS OF BUSINESS
ADMINISTRATION (MBA).

PREPARED BY: -ABAYNESH LIMENEH

ADVISOR: TEMESGEN ANDUALEM

FEBRUARY, 2023

GONDAR,ETHIOPIA

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 UNIVESITY OF GONDAR
APPROVAL SHEET OF THESIS
SCHOOL OF GRADUATE STUDIES
TO ADVISOR’S THESIS SUBMISSION APPROVAL SHEET OF THESIS
This is to certify this thesis prepared by Abaynesh Limeneh entitled “the effects of marketing
strategies on the sales performance of small and medium enterprises in central Gondar.” the
requirement of award of degree of master of business administration (MBA) to the college of Business
and Economics, in University of Gondar, and it conform to the regulation and accepted standard of the
university. In the board of examiners approve that this thesis has passed through the defense proposal
and review process.
PREPARED BY:

1. Abaynesh Limeneh. __________________ _____________________

Student Signature Date

APPROVED BY:

2. Temesgen Andualem ____________________ __________________

Advisor Signature Date

3. ___________________ __________________ __________________

Internal examiner Signature Date

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 Statement of Declaration

I, Abaynesh Limeneh declare that the thesis entitled “the effects of marketing strategies on the sales
performance of small and medium enterprises in central Gondar zone, Amhara Regional State,
Ethiopia” is the result of my own effort. I have conducted the research independently with the guidance
and support of the research advisors. The study has not been submitted to the award of any degree in
any university. It is submitted for the partial fulfillment of the requirement of Arts Degree in Masters
of business administration (MBA).

Name of Student Signature Date

__________________ __________________ __________________

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 Statement of Certification
This is to certify that this study, “the effects of marketing strategies on the sales performance of small
and medium enterprises in central Gondar zone,” undertaken by Abaynesh Limeneh for the partial
fulfillment of Masters of Business Administration (MBA) at university of Gondar, is an original work
and not submitted earlier for any degree either at this University or any other University.

ADVISOR:

Temesgen Andualem __________________ ________________

Signature Date

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 Acknowledgments
First of all I would like to acknowledge greatly the almighty God who has been with me during my
thesis from beginning to the completion. Secondly, I would like to thank honestly my advisor
Temesgen Andualem. And other very important person who gave me their valuable professional
assistance as well as support and constructive criticisms throughout my work that make the thesis real
and successful. Furthermore, I sincerely thank the small and medium enterprises in central Gondar
zone employees and managers for their suggestion important evidence.

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 Acronyms
4P: Product, Price, Promotion, and Place
CRM: customer relationship management
SME: Small and Medium Enterprises
SE: Small Enterprises
SM: Medium Enterprises
CBD: Central Business Distinct
SPSS: Statistical Package for Social Sciences
MSEAGT: Micro and Small Enterprises Authority of Gondar Town
MSEACGZ: Micro and Small Enterprises Authority in central Gondar zone

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 Table of Contents
Acknowledgments....................................................................................................................................iv
Acronyms..................................................................................................................................................v
List of Figure..........................................................................................................................................viii
List of table............................................................................................................................................viii
Chapter one................................................................................................................................................1
1. Introduction........................................................................................................................................1
1.1. Background of the Study............................................................................................................1
1.2. Statement of problem..................................................................................................................3
1.3. The objective of the Study..........................................................................................................4
1.3.1. General Objective................................................................................................................4
1.3.2. Specific objective................................................................................................................4
1.4. Research Question......................................................................................................................4
1.5. Scope of the Study......................................................................................................................5
1.6. Limitation of the problem...........................................................................................................5
1.7. Significance of the Study............................................................................................................5
1.8. Definitions of Terms...................................................................................................................6
1.9. Organization of the Paper...........................................................................................................7
Chapter two...............................................................................................................................................8
2. Literature review................................................................................................................................8
2.1. Introduction....................................................................................................................................8
2.2. Theoretical Foundation...............................................................................................................8
2.3. Marketing Mix Theory...............................................................................................................8
2.4. Push and Pull Theory..................................................................................................................9
2.5. Market Strategies......................................................................................................................10
2.5.1. Product development strategies............................................................................................10

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 2.5.2. Pricing Strategies..................................................................................................................10
2.5.3. Promotion Strategies.............................................................................................................11
2.5.4. Place Strategies.....................................................................................................................11
2.6. Market strategies and Sales Performance.................................................................................11
2.7. Conceptual Framework.............................................................................................................12
2.8. Empirical Review.....................................................................................................................14
Chapter three...........................................................................................................................................18
3. Research methodology.....................................................................................................................18
3.1. Introduction..................................................................................................................................18
3.2. Research Design.......................................................................................................................18
3.3. Target Population......................................................................................................................18
3.4. Sample Size..............................................................................................................................18
3.5. Data Collection and Data sources, data types and Instruments................................................20
3.6. Data sources,.............................................................................................................................20
3.6.1. Primary Data Sources............................................................................................................20
3.6.1.1. Questionnaires...................................................................................................................20
3.7. Secondary Data Sources...........................................................................................................21
3.8. Method of Data Analysis..........................................................................................................21
3.8.1. Descriptive Statistics.............................................................................................................21
4. Action and Budget Plan................................................................................................................22
4.1. Action plan....................................................................................................................................22
4.2. Budget plan...................................................................................................................................23
Reference.................................................................................................................................................24

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List of Figure
Figure 1 Model relationship shows dependent and independent variables.............................................21

List of table
Table 1 the effect of marketing Strategies on the sales performance of small and medium enterprises in
central Gondar.........................................................................................................................................20
Table 2 action plan and proposal scheduling..........................................................................................22
Table 3 quantity, price per unit and total cost.........................................................................................23

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 Chapter one

1. Introduction
The first chapter consists of the introduction the background of the study, a statement of the problem,
basic research questions, objectives of the study, definition of terms, and the significance of the study.
Further scope of the study and organization of the paper will also be present.

1.1. Background of the Study

Marketing is one of the most significant objectives of companies’ business strategy. For outperforming
competition and taking accurate marketing decision, every enterprise requires good marketing
knowledge. The organization’s product positioning and services depend on the sale performance and
implementation of good strategic plans on the Marketing strategies is the movements, (Cavusgil&Zou,
2004).
Marketing is considered as a key element for any successful business enterprise, unrelatedly of its size,
sector, the nature of its work and even its aims and objectives (Akroush, 2003). The ultimate goal of any
business is to be effective and remain in business profitably. It’s no hidden fact that the success or failure
of an organization depends on its marketing strategies. Marketing is also a dynamic lesson that it changes
over time. Hence, marketers should be able to adjust to changing market conditions through the major
controllable and tactical elements of marketing mix i.e. product, price, place, and promotion
(Weldegebriel, 2011).

Marketing strategy is the name given to a firm's overall strategy for attracting prospective customers and
exchanging them into teams paying clients for its products the effects of marketing strategy on sales
performance marketer enterprises is the responsibility of marketers to develop marketing strategies and
compile all marketing initiatives that work together to join with enterprises and provide them with the
value of define Enterprise marketing can be defined as company-wide customer relationship management
(CRM) and main small and medium enterprises generation effect through integrated, multi-channel
marketing campaigns targeted toward large enterprises. Marketing Mix is the combination of tactical
marketing tools (product, price, place, and promotion) used by a company to stimulate the desired
reaction from its target market. Sales performance refers to the work of deals accomplished inside a
predefined period contrasted with determined sales levels (Rotich, 2016).

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Sales performance is the phrase used to describe the marketing strategy component of a cooperative that
promotes sales performance marketing firms for a specific product in exchange for outcomes obtained,
such as clicks or conversions (product promotion, place, and price). Unlike sales performance, which is
expressly used to motivate actions, track them, and evaluate them while tying each asset, campaign, and
activity to the marketing strategy and completing more significant sale performance is the most essential
part of sales originators as it specifically impacts on their key performance hands. Sales performance has
been intellectualized to join both the result and behavioral measurements (Cavusgil&Zou, 2004)). Sales
results have dependably been seen by execution-situated sales representatives as proof of their behavioral
execution and therefore a positive relationship has been found to exist between the occupation
association segment of responsibility and sales performance.

A marketing strategy, according to Mohamed et al. (2014), is a procedure that enables a company that
focuses on sales success to think about how best to use its limited resources. Sales performance is
measured in terms of the quantity of goods produced and services rendered within a specified time period
because it represents the whole amount of work required to deliver a product or service. When used
properly, a variety of marketing techniques can transform any small or medium-sized business from
average to successful. The marketing mix theory and the push-pull theory have become the anchors for
both marketing plans and sales performance. Today, a lot of decisions that are crucial to the success of
marketing initiatives are made using the marketing mix theory.

The impression of a marketing mix theory is to establish all aspects of the marketing plan around the
habits, requirements, and awareness of the target market (Gronroos, 1994). The theory of push and pull is
applied in today's market; pushing solutions are sometimes seen by the customer as intrusive or
overlooked by the customers as the solution gets lost due to information overload. Pulling solutions has
always been part of most organizations. A customer would visit the organization and ask questions, and
someone would answers them. Business institutions that emphasize push theory often do so to increase
efficiency.

The effects of marketing strategy on the sales performance of small and medium enterprises This directly
impacts the sale performance generated as the more you reach out to people, the more they reach out to
own business or marque course, the marketing of a business is directly related to the sales it generates of
The marketing mix, which consists of three main primary elements, is utilized to carry out marketing
strategies. The push for efficient marketing strategies sale performance and explain Marketing strategies

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for small and medium enterprises to evaluate the relationship between the 4Ps and the extent of
marketing seal performance. The advantages of establishing a specific sales objective for your marketing
efforts are as follows, according to Mullins, Walker, and Boyd (2012).

Small and medium sized firms benefit greatly from this marketing technique because marketers are
unable to allocate large expenditures for market promotion or branding. Payment only occurs when an
actual sale is performed through the marketing enterprise. Small and medium sized businesses
incorporate small businesses into their any organization or business with the fundamental aim of
achieving a sustainable competitive advantage through understanding the needs and wants of customers,
particularly the group with the small and medium enterprise, is said to be implementing a marketing
strategy, which is a long-term, forward-looking approach and an overall managerial system. A marketing
strategy is a comprehensive plan that includes everything from a company's positioning to its creativity,
its key sales partners, and the impact of the plan on the sales performance of small and medium-sized
businesses. In 2011 (Shankar and Chin).

They trust that if, for example in point, they create the last but one user manual that will cover all the
questions the customer might have they will margin the amount of collaboration the customer needs to
make with the financial institutions (Zmud, 1984). This study will focuses on the effects of marketing
strategies on the sales performance of small and medium enterprises in the central Gondar zone. The
topic of marketing strategies will have been chosen as an effort to find out whether different marketing
strategies undertaken by the small and medium enterprises in the central Gondar zone have any effect on
sales performance.

1.2. Statement of problem

Due to the current market globalization, businesses now view internationalizing their operations as a
means of preserving their competitiveness. Marketing strategies has become an important tools globally
for any organization to remain in competitive market environment hence stronger. Epetimehin (2011)
views strategy as a pattern of resource allocation decisions made throughout an organization. This sums
up both the desired goals and beliefs as to what is acceptable and the most unacceptable means of
achieving them. Marketing strategy implies that the analysis of the market and its environment, customer
buying behavior, competitive activity’s, their needs and capabilities of marketing intermediaries.

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Small and medium-sized enterprises play a crucial role in the eradication of poverty, the creation of jobs,
and economic growth, and marketing strategy has been a key component of achieving objectives in most
organizations. Although being acknowledged for its great contribution to sustainable economic
development, it seems that despite the sector's enormous potential, small and medium-sized businesses'
effects on sales performance are still not as positive as some businesses would want (Arinaitwe 2006).

As a result, the businesses are analyzing and calculating their retail services in an effort to develop more
targeted marketing plans that will enable them to achieve both their unit-specific and corporate goals.
They are putting effort into coming up with distinct tactics on how to stand out from the competition and
benefit customers. Due to the fact that the region in Central Gondar Enterprises the contribution of small
and medium enterprises has been momentous but despite their significance, most small and medium
enterprises are faced with the threat of failure (Rotich, 2016).

The business rate of small and medium enterprises in Central Gondar remains very high and affects both
start-ups and older established small and medium enterprises. Researcher indicates that the high failure
rates of small enterprises are largely attributed to weaknesses in financial management and marketing.
The alarming rate of small business failure is a major concern hence the need to investigate their
marketing strategies and determine if they affect sales performance.

1.3. The objective of the Study

1.3.1. General Objective
The main objective of this study will establish the effects of marketing strategies on the sales
performance of small and medium enterprises in Central Gondar.

1.3.2. Specific objective

 To explain Marketing strategies for small and medium enterprises.
 To evaluate the relationship between the 4Ps.
 To the extent of marketing seal performance.

1.4. Research Question

The study tries to answer the following specific research questions.
 To what extent does evaluate the relationship between the 4Ps in CGZE?
 To what does the extent of marketing seal performance on CGZE?

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  To what extent does the place strategy affect the sale performance of CGZE?

1.5. Scope of the Study

This study were because the sector itself will vast and has massive enterprises, which are not feasible to
touch all otherwise. Conceptually, these studies were delimited to the effects of marketing strategies on
the sales performance of small and medium enterprises in Central Gondar. Using the three basic
marketing strategies on the sales performance of small and medium enterprises is to be measured using
variables. Furthermore, marketing strategies on the sales performance of small and medium enterprises
were distributed through consideration of variables of 4ps aspects especially focusing on marketing
Strategy and experts' experiences and perspectives and by sales performance quantitative approach with
descriptive statistical approach.

1.6. Limitation of the problem

This research faced the following limitations:

The first limitations of the study will that since it will be also conducted in the small and medium
enterprise context, it is difficult to generalize the findings of the study to the sale performance. The other
limitations of the study were the existence of limited empirical evidence on the subject matter.

Other limitations of this study will be the critical understanding for preparing the questionnaire and
providing the researcher with the relevant information which limited the outcomes of the research. Since
the study will be made based on only the questionnaire, it will not certain to disclose the real situations.

1.7. Significance of the Study

Up on its completion, this study is expected to have the following major significance. The study will be
used as source of information for small and medium enterprise sector and cooperative organizations,
procurement and purchasing professionals as well as suppliers of goods and service regarding the effect
supplier evaluation (supplier quality commitment, financial ability and supplier competence) and sale
performance. In other words, the study will create insight for enterprise organizations to seriously
consider supplier evaluation and selection aspects in the course of obtaining goods and services.
Therefore, they will be able to find the precise marketing strategies that improve business performance
with the aid of this study.

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Away from that, consultants from the administration and other stakeholders from across the world have
been creating marketing strategies to improve the productivity and sustainability of small and medium
sized businesses. The performance of small and medium sized firms will thus be highlighted by this
study's focus on the impact of marketing strategy. To create new policies and revise old ones, the
findings may be applied Additional information and literature about small and medium sized businesses'
marketing techniques will also be provided by the study.

To the academicians, the study will contribute to the body of knowledge which will benefit scholars and
researchers and stimulate further research in this field of strategy implementation. Researchers could also
be able to borrow from the findings of this study and may even further the study by varying the various
variables used to get more precise results. This study will add to the existing body of knowledge on this
very important topic of market strategies. To this extent, it will be beneficial to future academic
researchers who may wish to understand how different institutions carry out this process.

1.8. Definitions of Terms

Marketing Strategy: is the marketing logic by which the company hopes to create customer value and
achieve profitable relationships among to different marketing mix strategies (Kotler& Armstrong, 2011).
In this context, it is one of the key functional strategies that the effect of marketing strategy on sale
performance in small and medium enterprise in Central Gondar adopt to enhance sales performance.
Marketing Mix:- According to Kotler and Amstrong (2010) marketing mix is the set of marketing tools
used by an enterprise to achieve the objectives of the adapted marketing in the particular marketing
segment and marketing strategy.
small enterprise : A business which functions on a small scale level involves less capital investment,
less number of labor and fewer machines to operate is known as a small enterprise (SE). Small scale
Industries or small businesses are the type of industries that produces goods and services on a small scale.
Medium enterprises: medium enterprises (ME) are non-subsidiary, independent firms which employ
less than a given number of employees by internal firm.
Product: Product is anything that can be offered to a market for attention, acquisition, use, or
consumption hence satisfying customers want or need (Kotler and Armstrong, 2013).
Price: According to Kotler and Armstrong (2008) price is the sum of all the values that customers give
up to gain to the benefits of a product or service.

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Place: Place is the process where organizations decide where to locate their store and how many stores to
have at the convenience of the shoppers (Kanoga, 2016)
Promotion: According to Armstrong (2008), promotion is all activities undertaken to communicate and
promote products or services to the target market.

1.9. Organization of the Paper

This study paper is structured in five chapters .The first chapter introduces the background of the study,
statement of the problem, basic research questions, objectives of the study, definition of terms, and the
significance of the study. Further scope of the study was also presented. The Second chapter deals with
the review of existing literature to throw more light on the concepts of the subject matter which includes
the theoretical, empirical, and conceptual literatures with regards to the topic of the study. The third
chapter provides information about the methods, used in the thesis to give solution for the research
questions. The methodology illustrates research approach, research design, the source of data, data
collection method, data collection instrument, data analysis method, validity &reliability; and research
ethics. The fourth chapter includes information on data presentation, analysis, interpretation, and
discussion of the findings of the study. The fifth and the end chapter deals with the summary,
conclusions, and recommendations that were drawn from the findings of the study.

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 Chapter two
2. Literature review
2.1. Introduction
This chapter presents a review of the related literature on the effects of marketing strategies as presented
by various researchers, scholars, analysts, and authors. The chapter also provides the different
underpinnings of the study and in the theoretical, empirical, and conceptual literature which focused on
the research objectives are reviewed hands.

2.2. Theoretical Foundation

This section examines the various theories that were used to inform the study on the effects of marketing
strategies on sales performance. The study will guided by the following theories; marketing mix theory
and marketing strategy theory of push and pull...

2.3. Marketing Mix Theory

According to Grönroos (1994), Borden is credited with creating the Marketing Mix Theory. To make
crucial judgments that result in the execution of a marketing plan, the idea is still employed today. The
goal of a marketing mix theory is to structure the entire marketing strategy around the preferences,
motivations, and psychology of the target market. The Marketing Mix Theory combines a variety of
elements to develop and maintain a product's brand and to aid in the sale of the good or service. The Four
4Ps- products, pricing, promotion, and place are the components that are merged in this. Subject to the
internal and external limits of the marketing environment, these four Ps are the parameters that the
marketing manager may regulate. It is intended to marketing strategy must make choices that focus the
four Ps on the target market's clients to build perceived value and elicit a favorable reaction. When
physical products made up a bigger fraction of the economy in the early years of the marketing idea, the
marketing mix framework was very helpful (Grönroos, 1994). Some authors have tried to increase
marketing's utility by suggesting a fifth P, such as packaging, people, process, etc. in the modern era,
when marketing is increasingly integrated into businesses and has a larger range of products and markets.
Today, however, the 4 Ps continue to be the foundation of the marketing mix most frequently. Despite its
drawbacks and partly as a result of its simplicity, this framework is still widely used, and numerous
marketing textbooks have been built on it.

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 2.4. Push and Pull Theory
The "Push" theory and the "Pull" theory are two theories that describe how to provide good customer
service. Businesses and organizations have enterprise the push-pull idea to marketing procedures the
most frequently. If the enterprise or the company initiates the action determines whether it is a push or a
pull. According to Zmud (1984), Fredrick Winslow Taylor created the push-pull theory in 1911 as part of
his book "The Principles of Scientific Management." The business adopted his suggestions and began
concentrating on becoming more productive than its rivals. This resulted in identifying the needs of the
potential customers and reaching out to them with the answers. Market-driven solutions in today's world
might occasionally be perceived by the customer as obtrusive or overlooked by the customer as the
solution gets lost due to information overload. Many companies are moving away from the push theory to
the pull theory. That is, they are providing the information and solutions in a generally accessible format
and allowing the customer to determine what best suits their needs.

One of the fundamental tenets of selling solutions to consumers is that the company or organization can
foresee their demands before they arise and can therefore create the appropriate solution in advance
(Cooper &Kleinschmidt, 2015). The push theories are frequently emphasized by organizations to boost
productivity. They think they will answer all the client's questions if, for example, they write the
penultimate user manual, which will reduce the number of times the customer needs to get in touch with
the business. As well, by using a push model the organization can limit those areas for which service is
provided which again might provide efficiency in the training of support personnel. This model has
become more difficult to implement as organizations believe they may be sacrificing effectiveness for
efficiency.

Most companies have traditionally included pulling solutions. When a customer visits the business, they
ask inquiries, and someone responds. In "pull," the consumer makes the request for a solution rather than
merely selecting one from many that the company has to offer (Zmud, 1984). This is being used more
frequently as consumers have started to doubt the answers offered directly by businesses and prefer to
conduct their investigations. From the perspective of the client or the company, this paradigm is
inefficient, but it works well in many situations.

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 2.5. Market Strategies
Small and medium-sized businesses enterprise a variety of marketing techniques to increase sales
performance and promote their goods and services. The customer connection marketing strategy, creative
marketing techniques, and technology-based marketing methods are all examined in this study.

2.5.1. Product development strategies

According to Brassington and Pettitt (2016), a product needs careful consideration and planning to ensure
that it suits the needs and wants of the target market, has a significant competitive advantage, and is
accepted in the market, regardless of whether it is an innovation, an update of an existing product, or an
imitation of a rival product. Innovation enables small and medium firms to react to market changes and
preserve their competitive advantage, according to Van Auken, Madrid-Guijarro, and Garcia-Perez-de-
Lema (2015). Companies assess customer needs and create goods to meet them, or they create green
goods that are less harmful to the environment than those of competitors. This boost's the enterprise
products' perceived quality, market share, and customer satisfaction.

2.5.2. Pricing Strategies

An acceptable price change is determined by the buyer s willingness and ability to purchase a product
and the seller's cost of producing and distributing the product. Price discrimination is a common method
used by the enterprise. Where products are of different prices depending on the quality, thus products of
high quality are priced higher than other products scooping the crème of the market and eventually more
profit for the enterprise. The organization can show that a portion of the price goes to a worthy cause
such as investigator and donations to the needy in society. Makgoe (2015) states that the location of small
and medium enterprises can affect price performance costs.

Therefore, the quality of the pricing strategies is a key factor, as the marketing strategies enterprises
should be able to deliver the product as agreed upon. The implications of transport costs would, therefore,
increase the suppliers‟ final price which makes it extremely difficult for medium enterprises to get
business deals or enterprise. However, pricing has become increasingly vital as the basis for competition
within central Gondar zone medium enterprises. This means that businesses use pricing as a strategy for
local medium enterprises. Therefore, this might have a negative impact or take the enterprises out of
business. An enterprise that has inadequate market orientation is much more likely to price its commodity
by checking the competition or marking up its costs to attain a set profit margin (Doyle, 2009). There are
good odds that these businesses will hurt their customer value, market share, and profit margins.

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 2.5.3. Promotion Strategies
Van Scheers and Radipere (2014) believe that advertising has been a means to aid small and medium
enterprises and differentiate them from the competition. Clow and Barack (2014) highlight that most
small businesses do not have the funds to broadcast a marketing message to millions of potential clients.
After developing a product, setting the best market price, and identifying an appropriate channel for
distribution, an organization must promote it to potential buyers. It's important for the entrepreneur to
notify the potential buyers about the product's obtainability or to inform the consumer, using promotional
media such as radio, print, or television. The entrepreneur must carefully examine every alternative
medium and evaluate not only the costs but also the effectiveness of the medium in meeting the set
objectives. According to Carson & Gilmore (2015), a common constraint facing many smaller firms is a
lack of promotional activity to help them compete with larger organizations. One way of dealing with this
challenge is allying with other enterprises by forming a business network. If the organizations create a
marketing programmer, each customer or prospect will be in a position to directly tell other potential
customers about the company's offering. The company can leverage eco-friendly promotion strategies
through the use of the internet instead of print media. In addition, it is vital to be transparent to enable
customers to easily find out whether the promoted information is correct.

2.5.4. Place Strategies

Market access and potential competitiveness are key challenges facing medium enterprises. Small and
medium enterprises, aiming at the international markets, face difficult decisions concerning the choice of
governance modes. A major influence on the changing structure, performance, and location of retailing is
the operational environment in which retail firms must function. This environment encompasses social,
economic, technological, and political elements which generate a culture to which retailers respond with
managerial decisions. The location of the firm with its target market will influence the performance of the
firm because of the cost of delivering the goods and services to consumers (Cavusgil&Zou, 2014). It is
very critical that a medium enterprise select a location that will cost-effectively serve the customers to
reduce the overheads.

2.6. Market strategies and Sales Performance

The strategy aims to establish a sustainable and profitable position against the forces that determine
industry competition. Doyle (2009) defined strategy as a unified, comprehensive, and integrated plan that
relates the strategic advantages of the firm to the challenges of the environment and that is designed to
ensure that the basic objectives of the enterprise are achieved through proper execution by the

11
organization. Luostarinen and Gabrielsson (2006) point out that sales and marketing strategies may be
adopted to combat competition, improve the position of the company in the market, or grow the business.
The type of strategy required will depend on several factors but the main influences include the number
and power of competitors, company strengths, size of business, financial position, and government
influences. Doyle (2009) added that marketing strategy aims to communicate to customers the added
value of products and services.

Marketing is a major issue in business performance and innovation with a significant influence on
business strategy. Good marketing supports sales and expansion and contributes significantly to the
growth of market share in competitive markets (Marjanova&Stojanovski, 2012). Studies have established
that marketing strategies play an important role in enhancing sales performance, for instance, Taiwo et
al., (2010) found that strategic marketing practices have a significant impact on performance variables
and that they interact with the different components to facilitate performance. Santos-Vijande et al.,
(2012) also analyzed the organizational antecedents of marketing capabilities and their impact on
business performance and established that marketing capabilities exert a significant and positive effect on
clients‟ satisfaction and loyalty, which ultimately leads to better organizational performance in terms of
sales, profit, and market share. Ardjouman&Asma (2015) also explored marketing management
strategies adopted by small and medium enterprises in to improve their performances and established that
there is a high level of awareness of the significant roles played by marketing management strategies in
the performance of small and medium enterprises.

2.7. Conceptual Framework

A conceptual Framework is a basic structure that consists of certain abstract blocks which represent the
observational, experiential, and analytical aspects of a process or system that is conceived. The
interconnection of these blocks completes the framework for certain expected outcomes. The framework
is used in research to outline possible courses of action or to present a preferred approach to an idea or
thought. The conceptual framework is a diagrammatical presentation of variables in the study. The
framework illustrates the interrelationship between dependent and independent variables. The
independent variables include Product Development marketing strategies, Promotion marketing
strategies, Pricing Marketing Strategies, and Place Marketing Strategies while the dependent variable is
the sales performance of small and medium enterprises in central Gondar Zone.

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 Independent Variables Dependent Variable

Explain Marketing strategies for

small and medium enterprises.

The extent of marketing seal Sales performance of

performance. small and
medium
Product strategies
enterprises

Place Strategies
4Ps

Promotion strategies

Price strategies

Figure 1 Model relationship shows dependent and independent variables

Model relationship shows dependent and independent variables Sales performance of small and
medium enterprises.
Source: own from the literature of the study, 2023

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 2.8. Empirical Review

Ebitu (2016) conducted research on marketing tactics and business performance in the central Gondar
Zone. The fact that SMEs in the central Gondar Zone State find itself in a competitive environment and
might not be aware of which marketing technique is useful for improving their business performance
served as the motivation for such study. The survey method was used for the research. In the State's three
assembly constituencies, 250, SMEs received surveys of respondent. According to the study, relationship
marketing strategy and product quality strategy have a substantial impact on the profitability and
increased market share of SMEs in the central Gondar Zone.

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 Chapter three
3. Research methodology
3.1. Introduction
This chapter highlights the research methodology that has been used in the study. It gives an
overview of the research design, population and sample size, sampling techniques, and data
collection that were used in the research.

3.2. Research Design

Kothari (2004) defines research design as the framework that shows how problems under
investigation are solved. A descriptive survey is a design that establishing what is happening as far
as a particular variable is concerned. This study adopted a descriptive research survey to determine
the effects of marketing strategies on the sales performance of small and medium enterprises in the
Central Gondar Zone. As Mugenda and Mugenda (2003) point out, descriptive design is the precise
measurement and reporting of the characteristics of the phenomena under investigation and
describes phenomena, situations, and events. This is mainly because the focus of the research is to
gain an understanding and insight into the effects of marketing strategies on the sales performance
of small and medium enterprises.

3.3. Target Population

In this study, the target populations were small and medium enterprises in central Gondar zone. The
number of SMEs will be extracted from the Micro and Small Enterprises Authority of Gondar Town
(MSEAGT). Micro and Small Enterprises Authority in central Gondar zone (MSEACGZ) is the best
source for this information as it is the official regulator of small and medium enterprises in Gondar
Town. To come up with an appropriate study sample, the study utilized a stratified sampling
technique where small and medium enterprise managers were classified into different business areas
including in different item businesses. The rationale behind the selection of the stratified sampling
was that the businesses are evenly distributed across the Central Business District and this ensured
collection of unbiased data. This helped to enhance the chances of participation among potential
participants (Kothari, 2004).

3.4. Sample Size

The sample size is a smaller set of the larger population (Cooper and Schindler, 2006). Determining
the sample size is a very important issue for collecting an accurate result within a quantitative
survey design. According to Mugenda (2003), a sample size of representative enough of the
population if objectively selected and the elements are more than the number of enterprises.
15
According to the central Gondar Town, there are small and medium enterprises registered and
operating within the Central Business Gondar Town. Random

Thus, to obtain a representative sample for the population, Yemane’s (1967) finite and large
population sample size formula is used with a 95% confidence level for small and medium
N
enterprise employee. The formula used to obtain this sample size is shown below: n ¿
1+ N ¿ ¿
Where: n represents sample size, represents total number of population size, and e represents
sampling error/level precision. Therefore, based on the formula above, the sample size of the study
900
is 900: n ¿ besides, with regards to sample selection, out of the total
1+ 90 0 ¿¿
249.8265093684941with approximately 250 samples, form small and medium enterprise. 250
Following the sample size determination, the researcher allocates the sample size of each small and
medium enterprise level through the method of proportional allocation under which the sizes of the
samples from the different small and medium enterprises are preserved proportional to the sizes of
the enterprises. In order to do so, proportionate enterprises sampling (PES) formula (Ni=Ni/N*n)
will be used.
Where: ni represents sample size taken from each enterprises
Ni= Total no. of population of each enterprises
n= Total sample size of the study.
N =Total Number of each Respondents
The study used a sample size of 250 small and medium enterprise corporation managers within the
central Gondar zone which were duly registered by the Gondar Town population. Mugenda and
Mugenda (2003) argued that if well selected, the population is adequate for the generalization of
findings to the whole population.

Table 1 the effect of marketing Strategies on the sales performance of small and medium enterprises in
central Gondar

N0. Sample enterprise Total number of people Remark

1
Small enterprise 350
2
Medium enterprise 300
3
Micro enterprise 250
Total 900
Source: own survey data 2023

16
 3.5. Data Collection and Data sources, data types and Instruments
This research collected primary data using questionnaires. The questionnaires comprised of both
open and closed ended in line with the objectives of the study. A five-point Likert scale will be used
for closed ended questions. The questionnaire contained two sections each. The first section sought
to establish the respondent’s ‟demographic data while the second section sought to establish the
respondent’s ‟opinions on the effect of marketing strategies on sales.

3.6. Data sources,

To ensure the validity of the research and meet the objectives of the study, the researcher were
collect relevant data in the form of quantitative data types gather from both primary and secondary
sources.

3.6.1. Primary Data Sources

The data collection techniques that were used to collect first-hand information were self-
administered questionnaires the data included the socio-economic characteristics of respondents.

3.6.1.1. Questionnaires
For this study, questionnaires were taken as a preferable data-gathering tool, because the researcher
will collect information on facts and attitudes from a wide range of sources for use Questionnaires
were designed in closed-ended. The closed-ended questionnaires were prepared in Five Liker Scales
to let small and medium enterprise express their opinion on the scales. In addition, questions like
"agree" or "disagree" statements were used when appropriate. All of the questionnaires were
prepared in English and translated into Amharic for more clarity and to ensure a better
understanding of the respondents. The questionnaires were designed clearly and simply for the
respondents to easily understand and complete each item without difficulty. The questionnaire also
has closed-ended questions to get access to quantitative data. Close-ended questions are Liker scale
types are used, because they were suitable for the large-scale survey as easy to analyze used
statistical techniques and enable comparison to be made across groups.

3.7. Secondary Data Sources

In this study, the researcher collects relevant secondary data related to the study's topic by
analytically reviewing different documentary sources. Among such sorts of sources books,
articles/thesis, journals, reports, the internet, research publication from libraries and any other
relevant scholarly writings were the most ones. For this study, the researcher will gather from both
primary sources and secondary sources. The study will be conducted by reviewing existing literature

17
on the effects of marketing strategy on the sales performance of small and medium enterprises: a
case of the central Gondar town zone.

3.8. Method of Data Analysis

To achieve the objectives of the study, data gathered through these different techniques were
analyzed and interpreted quantitatively hence the data analysis used employed a quantitative
method. This research quantitative research and data were analyzed and organized using quantitative
methods which require several stages. After collecting data from the respondents through the
questionnaires all were inserted into the datasheet into simple statistics by using basic Statistical
Package for Social Sciences (SPSS) version 23 software. The quantitative data were analyzed using
descriptive statistics such as a table, frequency, mean, standard deviation, and percentage. These
data were verified and cross-checked. At this stage, face validity will be measured by checking the
questionnaires filled in by respondents. The data obtained from SPSS software were analyzed using
descriptive statistics and inferential statistics.

3.8.1. Descriptive Statistics

This paper used descriptive statistics analyses the demographic variables using frequency, tables,
percentages, means, and standard deviation Visual representation of the data will be presented. For
this study frequency and percentages were useful in organizing data in either table's format. Further,
the frequency were as used in this study to present the total number of observations for the overall
effects of marketing strategy on the sales performance of small and medium enterprises: a case
central Gondar town zone.

Percentages were used to offer pieces of information on the percentage of the respondents within
each of the biographical variables. The average value of the distribution of the scores of the current
study standard deviation was used to indicate the distribution of marks related to the effects of
marketing strategy on the sales performance of small and medium enterprises: a case of central
Gondar town. The effects of marketing strategy on the sales performance of small and medium
enterprises: a case central Gondar town zone.

4. Action and Budget Plan

This is encompassing the research time of implementation and necessary budget that
accomplish the activities.

18
4.1. Action plan
Table 2 action plan and proposal scheduling

No Activities Time Of Remark

Implementation

1. Reading related review literatures which November 01 -29/2022

are using to background

2. Field work and interviewing informants December 01-15/2022

3. Library work and collecting archival December 16- 30/2022

sources

4. Arranging, analyzing the January 01- 30/2023

collected data, concluded and
constructing the
first draft
5. Submitting the first draft and accepting January 01-29//2023
comment

6. Writing the final proposal drafting February –April /2023

7. Submitting the senior essay draft and May 01-29 /2023

accepting comment
8. Defense the final senior essay June 01-29 /2023

4.2. Budget plan

This budget displays the finance of items, quantity, price per unit and total cost.

19
Table 3 quantity, price per unit and total cost.

No Items Quantity Unit Per Price Total

Stationary materials

Typing Paper 1packets 300 300

Kenya Bic Pen 1 packets 500 200

Flash (16 GB) 1 pieces 300 300

1. Stapler 1 pieces 100 100

Staples 1 packets 50 50

Marker 1 packets 200 200

Hp laptop One - -

Writing 50 pages 10 500

2. Printing 50 pages 2 100

Photocopying 350 pages 1 350

Color Print 70 pages 15 1050

Binding 7 pieces 15 100

small and medium enterprises in 5 1000 1000

Central Gondar Town
transportation
3.
Total 3800

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