WACHEMO UNIVERSITY

College of Business and Economics

Department of Management

Program: MBA

Course: Business Research Method

Proposal Assignment

Title: The effects of marketing strategies on the sales performance of small and
medium enterprises in the case of Halaba Zone Kulito town, Central Ethilopia

By

Mubeyin Nuriye

IDNO-WCU 1502112

Submitted to:

Philipos Lamore. (PhD)

March, 2024

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Hossana, Ethiopia

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 PREPARED BY:

1. Student Signature Date

Mubeyin Nuriye . __________________ _____________________

APPROVED BY:

2. Main advisor Signature Date

____________________ __________________

3. Co- Advisor Signature Date

___________________ __________________ __________________

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Acknowledgement
The kindness, help and forgiveness of the almighty ALLAH have great value in my life; without
ALLAH support nothing was possible.

Next, I am grateful to my Instructor Philipos Lamore, (PHD) for his wonderful lecture, instruction,
fatherly approach and initiation in the course of Business Research Method for doing this research
proposal easily.

Again, I am very thankful to the Halaba Zone SME HRM departments, for their genuine thinking and
openness to give me statistical data for my research proposal.

I want also to show my appreciation to My MBA degree lecturers for their unflinching support through
supplying me source materials.

In the last but not the least, I would also like to express my greatest gratitude for my friends and
classmates for their ideal, moral, and material support from title- selecting stage up to the submission
date of my proposal in spite of the risky time (pandemic expansion, political instability, internet
disconnection.

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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

BD: Business Distinct

SPSS: Statistical Package for Social Sciences

MSEAHT: Micro and Small Enterprises Authority of Halaba Town

MSEACHZ: Micro and Small Enterprises Authority in Halaba one

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 Table of Contents
Acknowledgments.....................................................................................................................................ii

Acronyms.................................................................................................................................................iii

Chapter one................................................................................................................................................1

1. Introduction........................................................................................................................................1

1.1. Background of the Study............................................................................................................1

1.2. Statement of problem..................................................................................................................4

1.3. The objective of the Study..........................................................................................................5

1.3.1. General Objective................................................................................................................5

1.3.2. Specific objective................................................................................................................5

1.4. Research Question......................................................................................................................5

1.5. Research Hypothesis...................................................................................................................5

1.6. Scope of the Study......................................................................................................................6

1.7. Limitation of the problem...........................................................................................................6

1.8. Significance of the Study............................................................................................................7

1.9. Definitions of Terms...................................................................................................................8

1.10. Organization of the Paper...........................................................................................................9

Chapter two.............................................................................................................................................10

2. Literature review..............................................................................................................................10

2.1. Introduction..................................................................................................................................10

2.2. Theoretical Foundation.............................................................................................................10

2.3. Marketing Mix Theory.............................................................................................................10

2.4. Push and Pull Theory................................................................................................................11

2.5. Market Strategies......................................................................................................................12

2.5.1. Product development strategies............................................................................................12

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 2.5.2. Pricing Strategies..................................................................................................................12

2.5.3. Promotion Strategies.............................................................................................................13

2.5.4. Place Strategies.....................................................................................................................13

2.6. Market strategies and Sales Performance.................................................................................14

2.7. Conceptual Framework.............................................................................................................15

2.8. Empirical Review.....................................................................................................................16

Chapter three...........................................................................................................................................17

3. Research methodology.....................................................................................................................17

3.1. Introduction..................................................................................................................................17

3. 2. The study area.................................................................................................................................17

3.3. Research Design...............................................................................................................................17

3.4. Target Population............................................................................................................................18

3.5. Sample Size.....................................................................................................................................18

3.6. Data Collection and Data sources, data types and Instruments........................................................20

3.7. Data sources,....................................................................................................................................20

3.7.1. Primary Data Sources....................................................................................................................20

3.7.1.1. Questionnaires............................................................................................................................20

3.7.2 Secondary Data Sources................................................................................................................21

3.8. Method of Data Analysis..................................................................................................................21

3.8.1. Descriptive Statistics.....................................................................................................................22

3.9. Validity and Reliability....................................................................................................................22

3.9.1. Validity Test.............................................................................................................................22

3.9.2. Reliyability test.........................................................................................................................23

3.10. Ethical Consideration................................................................................................................23

3.11. Action and Budget Plan……………………………………………………………………….24

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 3.11.1. Action plan..............................................................................................................................24

3.11.2. Budget plan..............................................................................................................................25

Reference…………………………………………………………………………………….………26

Appendix……………………………………………………………………………………………...30

List of Figure
Figure 1 Model relationship shows dependent and independent variables.............................................15

List of table
Table 1 the effect of marketing Strategies on the sales performance of small and medium enterprises in
Halaba .....................................................................................................................................................19

Table 2 action plan and proposal scheduling..........................................................................................24

Table 3 Budjet plan.................................................................................................................................25

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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

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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).

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 will visit the

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organization and ask questions, and someone will answer 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 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 Halaba
Zone Kulito town. 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
Halaba Zone Kulito town have any effect on sales performance.

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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
tool 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.

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 will want (Arinaitwe 2006).

As a result, the businesses will analyze and calculate 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.

Thus, it is imperative note that it is not simply the matter of producing goods or services alone
that meets customer’s wants and needs and increasing sales revenue and profit, but how well the
marketing strategy developed and implemented. In one way or another some firms able to do
these but some are more successful in market place than others. The question that then arises is
how business firms will identify, develop, implement efficient and effective marketing strategy
so as to increasing sales performance? With reports of the varying degree of success or failure
recorded by manufacturing firms. Thus, in order to address this knowledge gap, it is imperative
that the researcher will attempts to conduct a detail study on the effect of product, price,

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promotion, and place strategy on sales performance so as to boast the sales performance which is
sales revenue of SME in Halaba Zone Kulito town.

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 Halaba Zone Kulito town.

1.3.2. Specific objective

The specific objectives of the study are

 To evaluate the effect of product strategy influences the sales performance of Halaba.
 To examine the extent to which price strategy influence sales performance of Halaba.
 To examine the effect of promotion strategy on sales performance of Halaba.
 To evaluate the effect of place strategy on sales performance of Halaba.

1.4. Research Question

Therefore, study is guided by the quest to provide answers to the following research questions:

 What is the effect of product strategy on the sales performance of Halaba?

 To what extent does price strategy influence sales performance of Halaba?
 What is the relationship between promotion strategy and sales performance of Halaba?
 What is the effect of place strategy on the sales performance of Halaba?

1.5. Research Hypothesis

The following hypotheses are formulated to address the above research objectives.
H1: Product strategy has significant positive effect on sales performance of SME in Halaba.
H2: Price strategy has significant positive effect on sales performance of SME in Halaba.
H3: Promotion strategy has significant positive effect on sales performance of SME in Halaba
H4: Place strategy has significant positive effect on sales performance of SME in Halaba.

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1.6. Scope of the Study
This study are because the sector itself will vast and has massive enterprises, which are not
feasible to touch all otherwise. Conceptually, these studies are delimited to the effects of
marketing strategies on the sales performance of small and medium enterprises in Halaba Zone
Kulito town. 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 are distributed through consideration of
variables of 4ps (Product, place, promotion and price) aspects especially focusing on marketing
Strategy and experts' experiences and perspectives and by sales performance quantitative
approach with descriptive statistical approach.

1.7. 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 are 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.

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1.8. 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.

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.

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1.9. 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 Halaba Zone Kulito town 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.

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.

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1.10. Organization of the Paper
This study paper is structured in three chapters:

Chapter one: Introduction: This 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 will be presented.

Chapter two: Literature Review: This 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.

Chapter three: Methodology: This 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.

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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 are used to inform the study on the effects of
marketing strategies on sales performance. The study will be 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 is
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,
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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.

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

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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.

2.5. Market Strategies

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 will, therefore, increase the suppliers‟ final price which makes it extremely difficult for
medium enterprises to get business deals or enterprise. However, pricing has become
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increasingly vital as the basis for competition with in Halaba 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.

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. 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

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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 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.
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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 Halaba Zone Kulito town.

Independent Variables
Dependent Variable

Explain Marketing strategies for

small and medium enterprises.

Sales performance
The extent of marketing seal
performance. of small and
medium
Product strategies enterprises

Place Strategies
4Ps

Promotion strategies

Price strategies

Figure 1 Model relationship shows dependent and independent variables.

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2.8. Empirical Review
Ebitu (2016) conducted research on marketing tactics and business performance in the Halaba
Zone Kulito town. The fact that SMEs in the Halaba Zone Kulito town 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 is 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 Halaba Zone Kulito town.

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Chapter three

3. Research methodology

3.1. Introduction

This chapter highlights the research methodology that will be used in the study. It gives an
overview of the study area, research design, population and sample size, sampling techniques,
and data collection that will be used in the research.

3.2. The Study Area

Halaba Kulito (also known as Kulito or Kuliito) is a town in southern Ethiopia. Located in the
Halaba Zone of the Southern Nations, Nationalities, and Peoples Region (SNNPR), this town sits
on the left bank of the Bilate River, with an elevation of 1726 meters above sea level.[1] Halaba
Kulito's total population is 300, 000. Halaba Kulito is the administrative center of the Halaba
Zone.

Modern Halaba Zone is a product of many years of interaction among people at the area in the
Southern Nations, Nationalities and Peoples’ Region of Ethiopia. It is named after Halaba
people, and covers part of their homeland. Located in the Great Rift Valley, bordered on the
south and North West by an exclave of Hadiya Zone, on the southwest by the Kembata Tembaro
Zone, on the north east by Lake Shala, and on the east by Oromia Region. It stretches between
70 16‟ 22” to 70 33‟ 49” North latitudes and 380 04‟ 22” to 380-13‟ 05” East longitude
relatively the Bilate River, which is its major water body, defines its western boundary.

3.3. 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 will adopt a descriptive research survey to
determine the effects of marketing strategies on the sales performance of small and medium
enterprises in the Halaba Zone Kulito town. 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.

17
3.4. Target Population
In this study, the target populations are small and medium enterprises in Halaba Zone Kulito
town. The number of SMEs will be extracted from the Micro and Small Enterprises Authority of
Halaba Town. Micro and Small Enterprises Authority in Halaba Zone Kulito town is the best
source for this information as it is the official regulator of small and medium enterprises in
Halaba Town. To come up with an appropriate study sample, the study will utilize a stratified
sampling technique where small and medium enterprise managers are classified into different
business areas including in different item businesses. The rationale behind the selection of the
stratified sampling is that the businesses are evenly distributed across the Business District and
this ensured collection of unbiased data. This will help to enhance the chances of participation
among potential participants (Kothari, 2004).

3.5. 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. According to the Halaba Zone Kulito town, there are small and medium enterprises
registered and operating within the Business in Halaba .

Thus, to obtain a representative sample for the population, Yemane’s (1967) finite and large
population sample size formula will be used with a 95% confidence level for small and medium
enterprise employee. The formula will be used to obtain this sample size is shown below: n
N
¿ Where: n represents sample size, represents total number of population size, and e
1+ N ¿ ¿
represents sampling error/level precision. Therefore, based on the formula above, the sample size
900
of the study is 900: n ¿ besides, with regards to sample selection, out of the total
1+ 900 ¿ ¿
249.8265093684941with approximately 250 samples, form small and medium enterprise. 250

Following the sample size determination, the researcher will allocates the sample size of each
small and medium enterprise level through the method of proportional allocation under which

18
the sizes of the samples from the different small and medium enterprises will preserve
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 will use a sample size of 250 small and medium enterprise corporation managers
within the Halaba Zone Kulito town which are duly registered by the Halaba 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 Halaba Zone Kulito town

N0. Sample enterprise Total number of people Remark

1Small enterprise 350

2Medium enterprise 300

3Micro enterprise 250

Total 900

Source: own survey data 2024

19
3.6. Data Collection and Data sources, data types and Instruments
This research will collect 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.

3.7. Data sources

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

3.7.1. Primary Data Sources

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

3.7.1.1. Questionnaires

For this study, questionnaires will be 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 are designed in closed-ended. The closed-ended questionnaires are 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 are will be used when appropriate. All
of the questionnaires are prepared in English and translated into Amharic for more clarity and to
ensure a better understanding of the respondents. The questionnaires are 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 are suitable for the large-scale survey as
easy to analyze used statistical techniques and enable comparison to be made across groups.

20
3.7.2. Secondary Data Sources
In this study, the researcher will collect 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 are 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 on the effects of marketing strategy on the sales performance of small and medium
enterprises in the case of Halaba Zone Kulito town .

3.8. Method of Data Analysis

To achieve the objectives of the study, data gathered through these different techniques will be
analyzed and interpreted quantitatively hence the data analysis will use employed a quantitative
method. This research quantitative research and data will be analyzed and organized using
quantitative methods which require several stages.

After collecting data from the respondents through the questionnaires all will be inserted into the
datasheet in to simple statistics by using basic Statistical Package for Social Sciences (SPSS)
version23 software. The quantitative data will be analyzed using descriptive statistics such as a
table, frequency, mean, standard deviation, and percentage. These data will be verified and cross-
checked. At this stage, face validity will be measured by checking the questionnaires filled in by
respondents. The data will obtain from SPSS software are analyzed using descriptive statistics
and inferential statistics.

21
3.8.1. Descriptive Statistics
This paper will use 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 are useful in organizing data in either table's
format. Further, the frequency are as will be 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 Halaba Zone Kulito town.

Percentages will be 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 will be 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 Halaba Zone Kulito town.

3.9. Reliability and Validity

Before undertaking the analysis to examine the effect of the independent variables on the
dependent variable, the researcher will undertook the validity and reliability test to assure the
research instruments is valid besides reliable.

3.9.1 Validity Test

Content validity is the extent to which a measuring instrument provides adequate coverage of the
topic under study. If the instrument contains a representative sample of the universe, the content
validity is good. Its determination is primarily judgmental and intuitive. Besides, the researcher
will acquire and incorporate the opinions of the owners and/or managers of SMEs and instructors
in order to enhance the research instrument validity.

22
3.9.2. Reliability test

One of the methods to estimate the reliability of the scores on a test or measurements is
Cornbach’s coefficients alpha method. Hence, Cornbach’s coefficients alpha refers to the extent
to which there is interrelatedness among the responses to the multiple items comprising in the
Likert scale.

3.10. Ethical Consideration

In the context of research, ethics is defined as the appropriateness of the researcher’s behavior in
relation to the rights of the participants or subjects of the research work (Saunders, Lewis,
&Thornhill, 2009). Therefore, this study will be governed by the general rules of research ethics
in such a way that, the respondents will be requested to provide information on voluntary basis,
there is prior communication about the purpose of the study, and confidentiality of the
information will be guaranteed

23
3. 11. Action and Budget Plan
3.11.1. Action plan

Table 2 action plan and proposal scheduling

No. Activities Months (2024/2016)

Jan Feb March April May June July

1 Proposal write- 
up
2 Preparation of 
study tools
3 Preparing for 
field work
4 Travelling to 
data collection
site
5 Selection of 
data collectors
6 Conducting 
training for
data collectors
7 Pre-testing of 
the participants
8 Data collection 
9 Data cleaning 
and entry
10 Data analysis 
and write-up
11 Thesis 
Submission
12 Defense 

24
3.11.2. Budget plan
This budget displays the finance of items, quantity, price per unit and total cost.

Table 3 Budget break down for the research activities to be undertaken

No. Activities Units of quantity Number of Unit price/ Total

measurement days Birr price/ Birr
1. Training In Number 8 10 200 16,000
enumerators
2. Training of key In Number 8 10 200 16,000
informants
3. Per diem to In Number 8 10 200 16,000
enumerators
4. Per diem to the In Number 1 10 400 4000
researcher
5. Transportation In Number 1 4 350 1400
cost
6. Stationery In Number 3 1 900 900
Total 0

25
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29
 APPENDIX

WACHEMO UNIVERSITY

COLLEGE OF BUSISNESS AND ECONOMICS

Department of Management Post Graduate (MBA) Program Questionnaire to be filled by

small and medium enterprises owners and/or Manager in
Halaba Zone Kulito town Kulito town.
My name is Mubeyin Nuriye. I am a graduate student in the field of Masters in Business
Administration at Wachemo University in Halaba Center. I would like to seek your assistance in
completing the attached questionnaire which forms a basic part of my MBA thesis. The purpose
survey is to learn more about the Marketing Strategy on the sale performance of Small and
Medium Enterprises in the Case of Halaba Zone Kulito town. The findings of this study
could have a significant impact on the SME success. Therefore, your genuine and honest
response is very important for the success of the research and the researcher would like to thank
you for your cooperation in advance.

Kindly be assured that all information that you provide will be kept strictly confidential and used
for academic purpose only. If you require any further information, want feedback on the study or
unclear situation please contact me by the following address;

 Email:mubeyinyenuriye@gmail.com
 Cell phone:+251912961706

Thank you in advance for your Space Time and Cooperation!

General Instruction:

No need to write your name.

Instruction is given at the beginning of each part of the questionnaire.

30
Part I: Demographic and General Information Question

Please put the tick “√” mark under the choice, write your opinion on the blank space

1. Gender: Male Female

2. Age:<20years 21-30years 31-40years 41-50years Over
50years
3. Educational status: Less than secondary school Diploma 1st Degree

2nd Degree and above If others, please specify

4. Your Experience in the Enterprise: < 5 years 6-10 years 11-15 years over
15
5. What is size of your Enterprise: Small Medium If others, please specify

6. How many employees your enterprise has?

<5 6- 15 16-25 25-35 >35

7. What is your total capital (ETB)?

Less than50,000 51,000-100,000 100,001-200,000>201,000

31
 Part II: Marketing Strategy Related Questions

Please indicate how much you agree or disagree with each of the following statements by
circling the number that best represents your opinion. 1 indicates strongly disagree (SDA), 2
indicates disagree (DA), 3 indicates neutral (N), 4 indicates agree (A), and 5 indicates strongly
agree (SA).

2.1. Product Strategy

1 Introduction of new products periodically is good to the business 1 2 3 4 5

2 Producing specific products have allowed the business to increase its revenue 1 2 3 4 5

3 Concentration on one main product would be beneficial to the to the firm 1 2 3 4 5

4 We introduce and develop new products/services based on customer 1 2 3 4 5

Needs.

5 We build our brand reputation by providing a distinctive service quality. 1 2 3 4 5

6 Providing better quality products/services helps to meet our customers 1 2 3 4 5

Needs.

7 The product or service portfolio of our enterprise is up to the customers 1 2 3 4 5

expectations.

32
2.2. Price Strategy

1 Setting the same prices as competitors can impact the performance of the business 1 2 3 4 5
positively.

2 Lowering of the prices can lead to better long term SME performance. 1 2 3 4 5

3 Allowing customers to negotiate prices is good for the performance of our business..

4 Discounting prices of different products occasionally is helpful to our business 1 2 3 4 5

performance enhancement efforts.

5 The price charged are commensurate to the quality of service offered. 1 2 3 4 5

6 The prices are well communicated and easily understandable. 1 2 3 4 5

7 Our pricing strategy helps us in maximizing our profit. 1 2 3 4 5

2.3. Promotion Strategy

1 We use different type of mechanisms to promote our products/services. 1 2 3 4 5

2 Product branding can lead to increased business performance 1 2 3 4 5

3 Participating on exhibition, trade fair, etc help us to sell and promote the 1 2 3 4 5

33
 Products and/services.

4 Using publicity and public relations helps to enhance image. 1 2 3 4 5

5 Our promotion strategy is able to inform customers about our 1 2 3 4 5

Product/service.

2.4. Place Strategy

1 Place strategy improves accessibility towards the customers. 1 2 3 4 5

2 Place strategy is able to give location benefits to customers. 1 2 3 4 5

3 The place strategy matches the demand and supply to functions well. 1 2 3 4 5

4 Place strategy is able to serve our customers well in time. 1 2 3 4 5

2.5. Customer Orientation Strategy

1 We believe in obtaining client or customer feedback on the services 1 2 3 4 5

Offered.

2 Information regarding quality of the products and services gives the 1 2 3 4 5

Leverage on marketing offering.

3 Customer requirements are incorporated in the overall customization of the 1 2 3 4 5

34
 Products to meet customer preference.

4 We have a strong team that is tasked with obtaining and addressing 1 2 3 4 5

Customer concerns.

2.6. Relationship Marketing Strategy

1 A good and positive relationship with customers promotes customers 1 2 3 4 5

Loyalty

2 Good customer relationship provides increased value to new and existing 1 2 3 4 5

Customers

3 Customer relationship marketing attracts and keeps the customers in the 1 2 3 4 5

Organization.

4 Maintaining and enhancing customer relationships is an important aspect of 1 2 3 4 5

our business.

35
 Part III: Small and medium Enterprise Performance

Please indicate how much you agree or disagree with each of the following statements by
circling the number that best represents your opinion. 1 indicates strongly disagree (SDA), 2
indicates disagree (DA), 3 indicates neutral (N), 4 indicates agree (A), and 5 indicates strongly
agree (SA).

S/no SMEs Performance SDA DA N A SA

1 SMEs marketing strategies enable them to attain customer satisfaction 1 2 3 4 5

2 Marketing strategies enable SMEs to increase sales volume 1 2 3 4 5

3 SMEs increased their market share 1 2 3 4 5

4 SMEs increase their number of employees as a result of marketing strategy 1 2 3 4 5

Thank Youg

36
1
2