STA.

ISABEL COLLEGE OF MANILA

Basic Education Department Senior High School

CHAPTER I
The Problem and Its Background

Introduction

Marketing strategy is an important tool for any organizations that aims to

exploit in achieving success in the business society. Strategic process in making an

action can make the business runs in a long term period. According to Hough et al.

(2008), marketing strategy is putting together an action plan to run a business in

conducting an operations. He also elaborate that making strategies as a

commitment in pursuing an action leads for the development of the business.

According to Drucker (2004), strategic planning is a continuous process of making a

systematic decisions with greatest knowledge in systematically organizing all the

efforts to carry all decisions and can be able to measure all the results from the

feedbacks. Kraus et al. (2007, p.3) argues that planning of business strategies is

consists of guidelines on how to achieve desired goals and objectives for the success

of the business. Strategic planning gives direction and basis in which way the

business will take.

Marketing is a strategy involves a low-cost provider which involves achieving a

lower cost of the product that can attract buyers, a broad differentiation which

differentiate the firm’s product that attributes appeal to a customers, a focused low-

cost differentiation which concentrates on narrow price-sensitive buyer that offers a

low-priced product, a focused-differentiation strategy which involves a concentrating

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in a narrow buyer segment by meeting customer’s specific tastes for the product,

and lastly, a best-cost provider which involves giving value to a customer’s money in

offering upscale product attributes at lower cost (Principle of Marketing 2016)

Statement of the Problem and Objectives

The study seeks to find the effects of marketing strategies and practices to

business performance of selected micro and small business establishments in

Manila.

Specifically, the study will try to answer the following:

1. What is the demographic profile of the respondents?

a. Personal Profile in terms of:

1.1. Name

1.2. Gender

1.3. Age

1.4. Position

2. What are the strategies and practices employed in their establishment that

affect business performance?

3. What is the relationship of these marketing strategies in the performance of

their operation?

4. In what way does their product is unique compared to others?

5. What are the other perceived strategies and practices that can affect business

performance?

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Theoretical Framework

The Five Generic Competitive Strategy shown in Figure 1 is used by the

researchers as guide in constructing their questionnaire. This strategy was

presented by Omkar, Vijay, and Dillshwar. They proposed four strategies that can

create business growth. Accordingly, these strategies include making the most out

of the existing market and products, introducing new products, and entering into

new target markets.

Overall Low-Cost Broad Differentiation

Provider Strategies Strategy

Best-Cost

Provider Strategy

Focused Low-Cost Strategy Focused Differentiation Strategy

Figure1. Five Generic Competitive Strategies

1. Low-Cost Provider. This strategy involves striving to achieve lower overall

cost than rivals on products that attract a broad spectrum of buyers.

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2. Broad Differentiation. This strategy involves differentiating the firm’s

product offering from rivals’ with attribute that appeal to a broad spectrum of

buyers.

3. Focused Low-Cost Differentiation. This strategy involves concentrating on a

narrow price-sensitive buyer segment and on cost to offer a lower-priced

product.

4. Focused-Differentiation. This strategy involves concentrating on a narrow

buyer segment by meeting specific tastes and requirements of niche members.

5. Best-Cost Provider. This strategy involves giving costumers value for the

money offering upscale product attributes at lower cost rivals.

Conceptual Framework

Sales Performance:
Gross Sales or Service
Marketing Strategies Revenues

Independent Variables Dependent Variables

Figure 2 Conceptual Framework

The framework used in this study shown in Figure 1.2 states that sales

performance: gross sales or service revenues depend on how the marketing

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strategies are utilized by the selected micro and small business establishments in

their operations.

Scope and Limitations of Study

This study focuses on small business establishments in Manila, on their

management, strategic styles and techniques that will make them succeed in the

business.

The small enterprises around Manila specifically in Intramuros part where the

study was carried out. The study mainly focused on the strategic management

styles of the owners of the small enterprises, to provide, maintain and sustain the

needs and demands of their customer.

Significance of the Study

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Chapter 3

Review of Related Literature

Foreign Literature & Studies

Using web as one of the tools used to market the product can give an

additional value and services. In continuously booming of the popularity of the

internet and World Wide Web, costumers got attracted and got engage in the

business (Aldin, Brehmer and Johansson, 2004). In just a few second of clicking a

mouse of the computer, anyone can access in any websites that renders goods and

services and these can change global settings. According to Burlesson (2005),

websites must be accessible and easy to explore in terms of maintenance-fee, low

cost, trustworthy, and powerful traffic-builder and costumer-converter and website

must be attractive to a target customers. Website designs must be balanced for

costumers Consideration (Geisller, 2001).

According to Adeleke, Orgundele and Oyenuga (2008), strategic management is

examining both present and future environment of a business. It formulates

objectives of the organizations, implementing and controls every decision focused on

achieving objectives. In other words, strategic management involves analyzations in

strengths and weaknesses in taking advantage of its external opportunities and

minimize internal problems. Prime task of strategic management is to think the

overall mission of the business. Asking questions about what really business you

currently planning or have will lead you to the objective development of strategies

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and making today’s decision for tomorrow’s result. This should be done by

balancing present objectives and needs against those of the future in the light of

available source and materials (Durcker, 1974). According to Johnson and Scholes

(1999), studies on strategic decisions and plans on how strategies can put in an

effective way.

According to Owomoyela, et al. (2003), marketing strategies development aims

to establish, build, defend and maintain its advantage with the competitors.

Function of strategic management is to determine the nature, strength, direction

and interaction between the marketing mix-elements and the environmental factors

in particular situation.

Product is the one that consumed by the customers. Customers used to

choose products based on its price, quality, and style (Kotler and Armstrong, 2006).

According to Mohammad et al. (2012), product’s physical appearance, packaging

and labeling information can influence buyer’s decision in choosing which product

they going to buy. This mainly say that products appearance and value can

contributes big effects in marketing strategies of the small enterprises.

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Local Literature & Studies

According to David (2005), strategic management is formulating an objectives,

developing policies and plans to achieve business’ objectives and it also aims to

allocate resources to implement policies and plans. Strategic management is a

combination of strategy formulation, implementation and evaluation.

Synthesis

CHAPTER III

Research Methodology

According to Jahoda, Deutch and Cook, research design is considered as the

arrangement of condition in collection of data that aims to combine the relevance of

research with the purpose in economy and procedure.

Research Design

The design used in the study is descriptive method which aims to describe the

characteristics of the population or the phenomenon being studied. It doesn’t

answer the questions about how, when, why characteristics occur rather it

addresses what questions (Cynthia J., 2014).

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Descriptive research involved data gathering which aims to describe events

and then organizes, tabulates, depicts and describes the collection of data. This

involved only the collection of only quantitative information which can be tabulated

in a numerical form. Its value is based on how problems can be solved and

improved through observation analysis and description. Descriptive research is the

most common method used in survey that includes questionnaire, personal

interviews, phone surveys and normative surveys (Koh E. T., Owen W. L., 2000).

According to Manuel and Mendel, descriptive research involves the descriptions,

recording, analysis and interpretation of data composition of phenomena. It focuses

on gaining conditions, or how person, group or thing functions in the present. It

often involves some type of comparison or contrast. According to Aquino, true

meaning of collecting a data should be reported from point of view of objective and

basic assumptions.

Respondents of Study

The respondents of the study were the small enterprises’ owners, staff or

employees and managers of the selected owner of the randomly selected

establishments. This study was focused on the small enterprises around

Intramuros, Manila.

Sampling Technique

The sampling method used in this study is the purposive criterion random

sampling technique where the researchers selected the respondents in a randomly

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selected way in every chosen small enterprises. The criteria for the selection in each

establishments are: a) popularity of the business, b) strategies applied in a

business, c) quality of the product and d) good services applied in a business.

Research Instruments

Researchers created a self-made interview guide questions attached in the

appendices section for the information related to the goal of objectives in the study.

The guide question consisted the following:

Part I: Personal Profile (optional)

This part deals with a demographic profile of randomly selected respondents

concerning name, age, gender, and position.

Part II: Interview Question

a) Live Experience of the Respondents

This part intends to extend knowledge of the researchers regarding to the

live experiences of the respondents with regards in their costumer they serve

every month and how they managed to ensure the profitability of their

business and how they maintain or estimate monthly good scale or service

revenue of the business.

b) Marketing Strategies and they Employed

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This part intends to determine if the respondents uses in the four (4)

marketing strategies that their business needs to be successful. These are

market penetration (uses of promotion), development of the market (establish

new store), product development (developed, improved or add new product for

costumer’s satisfaction), and diversification (opens new branches for new

costumers)

Part IV: Comments and Suggestions

This part intends to gather sights and information came from the

respondents to gain knowledge and ideas for the study.

Data Gathering Procedure

The researchers conducted personal visits in the location of randomly

selected small enterprises every Friday and Saturday of the week. After gathering

personal information of the respondents, researchers then distributed the survey

questionnaire and started to conduct an interview. All respondents were given the

survey questionnaire, however only five (5) pre-selected owners, staff or employees

and managers are subjected to interview. After the respondents were finished to

answer the disseminated questionnaire and interview guide questions, researchers

then tallied, analyzed and interprets the gathered data.

Statistical Treatment of Data

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The data gathered were treated for statistical analysis and computation. The

statistical methods used were the frequency distribution, percentages, weighted

mean and the Likert scale.

1. Percentage. This is used to determine the frequency distribution of

respondents in terms of gender, position and age. It was also used to describe

the yearly number of customers and yearly gross sales or service revenues.

Formula:

P= f / n * 100%

Where: P = percentage

f = frequency

n = number of respondents

2. Weighted Mean. This was used to identify the averages in the level of

perception of the respondents as regard the marketing strategies their

establishment adopted.

Formula:

WM = ∑wx/n

Where: WM = weighed mean

w = weight

x = mean

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n = number of respondents

3. Likert Scale. This was used to interpret the averages in the level of agreement

among respondents regarding the marketing strategies they employ.

Rate Equivalent Verbal Interpretation

4 3.26 – 4.00 Strongly Agree

3 2.51 – 3.25 Agree

2 1.76 – 2.50 Disagree

1 1.00 – 1.75 Strongly Disagree

4. ANOVA – Single Factor. This test was used to determine if there is a

significant difference in the weighted means of the level of agreement among

respondents relative to the adoption of marketing strategies and their effects

in the business performance of their establishments. Through this test, the

difference in the means among the four groups: staff/employees, supervisors,

managers and owners were calculated and studied.

1.1 Background of the Study Adoption of superior strategic management practices provide small firms

with new tools for survival, growth and maintaining a sustainable competitive advantage (Omerzel and

Antoncic, 2008). SMEs use strategic planning as a tool to cushion them from the unstable business

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environments in order to ensure their survival and growth (Huang, 2006). Dansoh (2005) posits that

strategic planning enables SMEs to be forward looking and vigilant to be able to cope with these

circumstances. Small and medium enterprises, which engage in strategic planning, are more likely to

be those that achieve higher sales growth, high returns on assets, higher margins on profit, higher

employee growth, achieve international growth, and are less likely to fail (Wang, Walker and

Redmond, 2007). Strategic planning provides an operational framework, which allows an organization

to enjoy competitive advantages and improved business performance (Pillania, 2008). In order for

SMEs to succeed and sustain their businesses, they need to adopt superior strategic management

practices (Dansoh, 2005).

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