Marketing performance of bread and cake small and medium business with competitive advantage as moderating variable

Muhartini Salim,Rina Suthia Hayu,Muhammad Rahman Febliansa,Fachri Eka Saputra

doi:10.5267/j.msl.2020.10.024

Abstract

Small and Medium Business (UKM) of bread and cake can develop and encounter business competition if they are concerned greatly with their marketing performance. The purpose of this study was to determine: 1. The effect of market orientation and product innovation on marketing performance of Bread and Cake UKMs. 2.The moderating effect of competitive ad-vantage, strengthens or weakens, of market orientation and product innovation on the marketing performance of Bread and Cake UKMs partially. Data were obtained through offline questionnaire distribution to 80 respondents. The respondents were the business owners and employees of Bread and Cake UKMs in Bengkulu, Indonesia. The data analysis used in this research was Structural Equation Model (SEM) which was operated through the Partial Least Square (PLS) program, SmartPLS 3.2.9. The result indicated that market orientation and product innovation partially influenced marketing performance. Competitive advantage partially moderated (strengthens) the effect of market orientation and product innovation on marketing performance. This research contributes to the theoretical development of competitive advantage which moderates the effect of market orientation and product innovation partially on marketing performance. The study also helps to find the strategy to increase the marketing performance of Bread and Cake UKMs in Bengkulu, Indonesia.

Highlights

Small and Medium Business (UKM) can survive in the business competition through great concern on marketing aspects
Kotler and Amstrong (2013) state that “competitive advantage as the benefits gained over the competitors through offering more values to the consumers in the form of lower prices or higher prices with more benefits included in the products”
The result of this study found that market orientation positively influences marketing performance

Summary

Introduction

Small and Medium Business (UKM) can survive in the business competition through great concern on marketing aspects. Business competition in marketing the products is based on product qualities and based on strategies such as market orientation and product innovation. Market orientation and product innovation can be used as one of the strategies to reach a competitive advantage. The companies that can formulate and apply the right innovation strategies in both internal and business scope will be able to increase the competitive capacity. While Noe et al (2006) suggest the competitive advantage is “company capability to make its products and services gain more acknowledgment from the consumers compared with other competitor companies”. This will bring the company to reach its right targets and goals. Product innovation that can create new product is very important in business and it will influence marketing performance

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Methods

Discussion

Conclusion