THE EFFECT OF MARKETING MIX STRATEGYTOWARDS PROFITABILITY IN THE CASE OF TEFF MILLING INDUSTRY SUB-SECTORS IN ADDIS ABABA

Abstract

The aim of this study was to examine the impact of marketing mix strategy (4Ps) towards profitability of Teff milling industry sub-sectors in Addis Ababa. This study was conducted at four Teff milling private limited companies. Respondents were selected purposively based on their working position and census method was employed to select all of 67 respondents working as department manager, division head, senior officer and officer. Questionnaire with a close-ended 5-point Likert scale questions that rates scales ranging from 1- strongly disagree to 5 strongly agree were distributed and SPSS ver. 20 was used to analyze the data for descriptive, Pearson correlations and Multiple regression analysis. Results of this study showed that both male and female respondents with different age category, educational and marital status, and working positions were included in the study. There was a good extent of product and place strategy implementation with a mean of 4.364 and 3.845, respectively. However, the implementation of price and promotional strategies was lesser to some extent, with a mean of 3.742 and 3.211, respectively. The correlation and regression analysis result showed that there was a strong relationship between product and place strategies with the profitability of Teff milling companies. Pricing and promotional strategy was practiced limitedly by Teff milling industry sub sector in this study. Finally, the researcher suggest that industry should decrease their cost to offer better price to customers and more of before implementing the pricing strategy and promotion strategy using the SAVE model is more advisable which means instead of price giving or creating value to the product and instead of promotion education in order creating awareness in consumers mind.