Effect Of Marketing Mix Strategies On Organizational Profitability In The Case Of Tsehay Roschili Industrial And Agricultural Engineering In Addis Ababa

Abstract

The study sought to find out effect of marketing mix strategies on profitability of the organization in the case of Tsehay Roschili Industrial and Agricultural Engineering. The major objective of this study was to investigate the effect of marketing mix strategies on the profitability of the organization. This study applied quantitative approach to test objectively the effect of marketing mix strategies on profitability. The population of this study was all employees and management members of Tsehay Roschili Industrial and Agricultural Engineering. Both primary and secondary data were used for this study. The study used Descriptive& Explanatory research design to describe the marketing mix strategy practices and to explain and predict the relationship between independent and dependent variables. Primary data was collected using questionnaires. The data collected from questionnaires was summarized, coded and analyzed with the help of statistical package for social science (SPSS version 24). The study results of correlation analysis indicate that there was a statistically significant and positive relationship between marketing mix strategies (product strategy, pricing strategy, promotion strategy and place/distribution strategy) and profitability of the organization (with r=0.506, r=0.504, r=0.540, r=0.534) respectively at a significant value less than 0.01. The regression coefficient result indicates that product strategy, pricing strategy, promotion strategy and place/distribution strategy has significant and positive effect on profitability of the organization with beta value β=0.258(P<0.05), β =0.260 (P<0.05) β=0.262(P<0.05), β =0.261 (P<0.05) respectively. From this result we can conclude that marketing mix strategies (product, pricing, promotion, and place/distribution) could be seen as strategies to improve the desired effect in order to promote organizational profitability. This study therefore, recommends Tsehay Roschili Industrial and Agricultural Engineering should properly implement marketing mix strategies (product strategy, pricing strategy, promotion strategy and place/distribution strategy) to enable organizational success.