“The Power of Marketing Strategies

on the Business Performance of

Micro, Small, and Medium-Sized
Enterprises (MSMEs) in Odiongan”

Carl James G. Fajarito Danica Rose G. Famero Fatima D. Morada

Elaiza M. Fajarito Maribeth L. Fernando
Background of the Study
Micro, Small, and Medium-Sized Enterprises have been on the top of the news
particularly when the pandemic struck the countries, locally and globally. They are the
most vulnerable and affected during these times which also affects the economy of the
country. Through this issue, researchers seek for existing studies regarding the
performance of MSMEs that need further investigation. Some studies found that
marketing strategies have impact on the MSMEs’ performance. Other cases such as
other businesses in locales are operating without proper management, new entrants are
existing rapidly in different areas, and MSMEs greatly contribute in economic growth
of the country. According to DTI (2020), the MSME statistics of the year showed that
99.51 percent of all businesses in the Philippines were MSMEs.

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Statement of the Problem
1. What is the demographic profile of the respondents in Odiongan, Romblon in
terms of the following: Age; Gender; Civil status; Educational attainment;
Number of years as entrepreneur; and Number of businesses?
2. What is the profile of business in terms of the following: Type of business; Form
of business ownership; Number of years in operation; Number of employees; and
Initial Capital?
3. What is the business performance of the MSMEs in Odiongan, Romblon?

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Statement of the Problem
4. Does product strategy significantly affects the business performance of MSMEs?
5. Does price strategy significantly affects the business performance of MSMEs?
6. Does promotion strategy significantly affects the business performance of
MSMEs?
7. Does place strategy significantly affects the business performance of MSMEs?
8. Does marketing strategies significantly affects the business performance of
MSMEs?

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Significance of the Study
The study is designed to assess the power of marketing strategies on the
business performance of Micro, Small and Medium-Sized Enterprises (MSMEs) in
the municipality of Odiongan, Romblon. It will benefit the MSMEs sector in
uncovering the effect of marketing strategies in business performance to emphasize it
in their business’ daily operations for profit maximization and business growth. This
will serve as a guide to policy makers in creating and revising policy that best suits
for MSMEs. Also, provide adequate knowledge/ideas and clear vision on the power
of marketing strategies on the business performance to new entrants and help
community for job employment. Future researchers can use it as basis or reference
for related researches/studies that they are going to conduct in the future.

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Scope and Delimitations of the Study
The study covered only the legally registered and/or with LGU
permit Micro, Small and Medium-Sized Enterprises (MSMEs) in
the Municipality of Odiongan, Province of Romblon. Marketing
strategies pertain only to 4Ps which are Product, Price, Promotion,
and Place. The MSMEs’ performance is measured through a 5-year
estimate of the business operation.

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Review of Related Literature
▫ Gade (2018) stated that one of the most important indicators of an
economy’s successful development of the MSMEs sector is the number
of new MSMEs that are opening. This explains not only the favorable
environment for the establishment and growth of MSMEs in an
economy, but also the high morale of the entrepreneurs. In general,
presence of Micro, Small, and Medium-sized Enterprises (MSMEs)
have become the backbone of a nation’s economy, particularly in
developing countries,
▫  
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Review of Related Literature
▫ According to Rotich (2016), marketing strategy is the fundamental
goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic, short-term, and long-
term activities in the field of marketing that deal with the analysis of
the strategic initial situation of a company and the formulation,
evaluation and selection of market oriented strategies and therefore
contributing to the goals of the company and its marketing objectives.

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Methodology
▫ The study used descriptive method of research because it intends to
measure the power of marketing strategies on the MSMEs’ performance
in Odiongan, Romblon.
▫ The study was conducted at Odiongan, Romblon Philippines from
September-January S.Y. 2021-2022.
▫ The respondents of the study are the MSMEs of Odiongan, Romblon.
The sample size is 326 out of the 2,146 total number of MSME's
establishment.

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Methodology
▫ This study used a simple random sampling method in which
each sample has an equal probability of being chosen calculated
using Raosoft with 5% Margin of Error, 95% Confidence Level.
▫ This study used a modified survey questionnaire adapted from
the study of Garg, et al (2014) “Measuring Business
Performance: A Case Study” and a researcher-made
questionnaire as the major instrument.

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Methodology
▫ The researchers used the Jamovi software in solving the
frequency, percentage, weighted mean, linear and multiple
regression analysis in analyzing the data quantitatively.

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Results and Discussion
Table 2. Demographic Profile of the Respondents

Levels Frequency Percentage

Age
18 to 25 57 17.5 
26 to 35 72 22.1 
36 to 45 82 25.2 
46 to 55 64 19.6 
56 to 65 34 10.4 
66 and above 17 5.2 
TOTAL 326 100.0

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Results and Discussion

Gender
Female 238 73.0
Male 88 27.0
TOTAL 326 100.0
Civil Status
Single 120 36.8
Married 180 55.2
Separated 7 2.1
Widowed 19 5.8
TOTAL 326 100.0

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Results and Discussion
Educational Attainment
Elementary Level 4 1.2
Elementary Graduate 9 2.8
High School Level 21 6.4
High School Graduate 51 15.6
College Level 75 23.0
College Graduate 149 45.7
Doctorate 1 0.3
Vocational 6 1.8
With Master's Degree 10 3.1
TOTAL 326 100.0

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Results and Discussion
Number of Years as Entrepreneur
Less than one year 32 9.8
6 to 10 years 66 20.2
1 to 5 years 125 38.3
11 to 20 years 63 19.3
21 to 30 years 22 6.7
31 years and more 18 5.5
TOTAL 326 100.0
Number of Businesses
1 237 72.7
2 55 16.9
3 15 4.6
4 5 1.5
5 to 10 10 3.1
11 and more 4 1.2
TOTAL 326 100.0
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Results and Discussion
Table 3. Business Profile of the Respondents
Levels Frequency Percentage
Type of Business
Service 99 30.4
Merchandising 211 64.7
Manufacturing 16 4.9
TOTAL 326 100.0
Form of Business Ownership
Sole Proprietorship 275 84.4
Partnership 29 8.9
Corporation 18 5.5
Cooperative 4 1.2
TOTAL 326 100.0

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Results and Discussion
Business
Number Profile
of Years of the
in Operation Respondents
Less than one year 52 16.0
1 to 5 years 124 38.0
6 to 10 years 63 19.3
11 to 20 years 53 16.3
21 to 30 years 19 5.8
31 years and more 15 4.6
TOTAL 326 100.0
Number of Employees
1 to 5 280 85.9
6 to 10 29 8.9
11 to 20 10 3.1
21 to 30 3 0.9
31 to 50 2 0.6
51 to 100 2 0.6
TOTAL 326 100.0
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Results and Discussion

Initial Capital
Below Php50,000 176 54.0
Php50,000- Php100,000 62 19.0
Php100,001- Php500,000 48 14.7
Php500,001- Php1,000,000 18 5.5
Php1,000,001- Php3,000,000 8 2.5
Php3,000,001- Php15,000,000 6 1.8
Php15,000,001- Php100,000,000 8 2.5
TOTAL 326 100.0

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Results and Discussion
Table 4. Business Performance of the Respondents (2016-2021)

Business Performance Mean MI

1. Our sales growth 3.63 SB
2. The market share gains by us 3.62 SB
3. Our sales growth rate 3.56 SB
4. Our financial liquidity 3.57 SB
5. Our public image 4.04 SB
6. Our customer’s compliment 4.08 SB
7. Our customer’s loyalty 4.21 MB
Total 3.83 SB

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Results and Discussion
Table 5. Results for Linear Regression

Path Name β p-value Results Decision

Product Strategy→ Business Performance 0.25 <0.001 Significant Rejected

Price Strategy→ Business Performance 0.22 <0.001 Significant Rejected

Promotion Strategy→ Business Performance 0.21 <0.001 Significant Rejected

Place Strategy→ Business Performance 0.16 0.002 Significant Rejected

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Findings
1. Demographic profile of the respondents
Out of 326 respondents, 82 or 25.6 percent fall under the age bracket of 36-
45 years old and 17 or 5.2 percent fall under the age bracket of 66 and above.
These respondents were comprised of 238 or 73 percent females and 88 or
27 percent males. One hundred-eighty or 55.2 percent were married, 120 or
36.8 percent were single and seven or 2.1 percent were separated.

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Findings
As to the respondent’s educational attainment, 149 or 45.7 percent were college
graduate, 75 or 23 percent were undergraduate- college level, and four or 1.2
percent were undergraduate- elementary level. In terms of the number of years as
entrepreneur, 125 or 38.3 percent were in the business for not more than five years,
66 or 20.2 percent were entrepreneurs for six to ten years, and 18 or 5.5 percent of
them were in the business for 31 years. As to the number of businesses, the results
show that 237 or 72.7 percent of the respondents have one business only. Fifty-
five or 16.9 percent have two businesses, and four or 1.2 percent have 11 or more
businesses.

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Findings
2. Business profile of the respondents
In terms of type of business, 211 of 326 respondents or 64.7 percent were
merchandising, ninety-nine or 30.4 percent were service, and sixteen or 4.9
percent. As to the form of business ownership, 275 or 84.4 percent of 326
respondents were under the sole proprietorship form, 29 or 8.9 percent were
partnership, and four or 1.2 percent were cooperative.

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Findings
In terms of the number of years of operation, 124 or 38 percent have been in
operation for about one to five years, 63 or 19.3 percent operated for about six to
ten years, and fifteen or 4.6 percent of them operated for about 31 years and more.
As to the number of employees, 280 or 85.9 percent of the respondents have one to
five employees. Twenty-nine or 8.9 percent have six to ten employees and two of
them have 31 to fifty employees or 0.6 percent, and another two have 51 to 100
employees or 0.6 percent. Most of the respondents (176 or 54 percent) have started
their businesses with a capital of below P50, 000. Sixty-two or 19 percent have
started with a capital ranging from P50, 000 to P100, 000, and six of them or 1.8
percent have started their businesses with a capital of P3, 000,001 to P15, 000,000.

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Findings
3. Business performance of the MSMEs
The business performance of MSMEs showed that customer’s loyalty got the
highest mean of 4.21 interpreted as Much Better, followed by customer’s
compliment with a mean of 4.08 and sales growth rate with a mean of 3.56, both
interpreted as Somewhat Better. The overall mean of the business performance is
3.83 interpreted as Somewhat Better. This implied that the business performance
of the respondents of MSMEs were better on the last five years.

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Findings
4. Effect of product strategy on the business performance of MSMEs
Using the linear regression analysis, the results implied that the Product
Strategy significantly predicted Business Performance ( =.25, p<.001) of the
MSMEs. Hence, the Product Strategy has a significant relationship and positive
impact on Business Performance of the MSMEs.

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Findings
5. Effect of price strategy on the business performance of MSMEs
Using the linear regression analysis, the results implied that Price Strategy
significantly predicted Business Performance ( =.22, p<.001) of the MSMEs.
Hence, the Price Strategy has a significant relationship and positive impact on
Business Performance of the MSMEs.

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Findings
6. Effect of promotion strategy on the business performance of MSMEs
Using the linear regression analysis, the results implied that the Promotion
Strategy significantly predicted Business Performance ( =.21, p<.001) of the
MSMEs. Hence, the Promotion Strategy has a significant relationship and positive
impact on Business Performance of the MSMEs.

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Findings
7. Effect of place strategy on the business performance of MSMEs
Using the linear regression analysis, the results implied that the Place
Strategy significantly predicted Business Performance ( =.16, p=0.002) of the
MSMEs. Hence, the Place Strategy has significant relationship and positive
impact on Business Performance of the MSMEs.

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Findings
8. Effect of marketing strategies on the business performance of MSMEs
Using the multiple regression analysis, the results implied that the Product
Strategy (β=0.13, p=0.04) and Promotion Strategy (β=0.12, p=0.01) both
significantly predicted Business Performance of the MSMEs. While, it was found
that Price Strategy (β=0.07, p=0.24) and Place Strategy (β=0.01, p=0.93) did not
significantly predict Business Performance of the MSMEs.

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Findings
In the results also of Product Strategy and Promotion Strategy, it can be seen
that Product Strategy has a more significant impact on Business Performance than
does the Promotion Strategy. On the other hand, in the results of Price Strategy and
Place Strategy, it can be seen that Price Strategy has no more significant impact on
Business Performance than does the Place Strategy.

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Conclusions
1. As to demographic profile, majority of MSMEs’ owners/managers were
female and were married. It was observed that the age bracket of 36-45 years
old dominate the respondents holding college graduate degree as their
highest educational level attained. It was also noted that most of them were
in the business for not more than five years and owned an enterprise.
2. Business profile revealed that sole proprietors were the most numbered
among the respondents with an initial capital of not more Php50, 000.
Merchandising dominated the MSMEs consisting employees with not more
than five in count.

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Conclusions
3. The study disclosed that MSMEs’ performance in Odiongan, Romblon on
their past five years were somewhat better. It was due to customer retention
that led to customer loyalty through satisfaction on the offered service or
product.
4. Product strategy significantly affects the business performance of MSMEs in
Odiongan, Romblon based on the findings of the study conducted. Through
quality product and good services they offer, customer tend to patronize the
business. Products or services that under basic needs of customers are quite
easy to market.

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Conclusions
5. Price strategy significantly affect the business performance of MSMEs in
Odiongan, Romblon. Setting a reasonable price enables a customer to afford
the products and services causing efficient business performance to the
MSMEs.
6. Promotion strategy significantly affect business performance of MSMEs in
Odiongan, Romblon. Word-of-mouth and online platforms contributed
considerably in marketing the products and services which allow customers
to find out the business and help to improve the business performance of the
MSMEs.

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Conclusions
7. Place strategy significantly affect business performance of MSMEs in
Odiongan, Romblon. Accessibility of the business location and distribution
of products greatly affect business performance.
8. The evidence provided by this study, linear regression showed that marketing
strategies such as product, price, promotion, and place strategies significantly
predicted business performance of MSMEs in Odiongan, Romblon. But in
multiple regression, product and promotion strategies positively affect
business performance, while price and place strategies does not affect
business performance.

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Conclusions
This implies that product strategy and promotion strategy have significantly
predicted business performance more than price strategy and place strategy. The
results of price strategy and place strategy may be an outcome of that price
strategies such as a penetration pricing, used by the entrepreneurs which are not
suitable to the quantity of their products offered in the public and resulted to
lower sales volume. As to place strategy, this may be the result of putting up the
business in the location of the entrepreneur’s residence which is not accessible to
heavy consumers.

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Conclusions
9. . The study shows the importance of marketing strategies no matter how
small the business may be.

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Recommendations
1. MSMEs’ owners/managers should become more creative in utilizing
appropriate marketing strategies and best application for further improvement
of business performance.
2. MSMEs’ owners/managers were recommended to attend trainings and
seminars to enrich their knowledge especially in terms of marketing strategies
for the utmost business performance.
3. MSMEs’ owners/managers are advised to regularly check the condition of
their products/services offered in the market to prevent negative feedbacks,
instead earn customer’s patronization. They should also maintain or innovate
their products or services that satisfies customers to retain loyalty and gain
more customer.

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Recommendations
4. Researchers suggest that enterprises should efficiently select the right and set
reasonable pricing appropriate to the products or services they offer to avoid
dissatisfaction of customer or misconceptions.
5. Maintain and improve the use of technology such as online platforms and
digital marketing in promoting the products and services which is relevant
nowadays.
6. It is best to consider and set business’ location in accessible areas and
innovate the establishment for good impression and attraction of customers.

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Recommendations
7. Local authorities should actively support the MSMEs for the improvement of
the sector at the same time, for the development of the economy.
8. Future researchers were suggested to include more other factors that
influences business performance for more informative and broad findings.

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THANK YOU!

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