Marketing Strategies of SMEs and Performance: Empirical Evidence from Pharmaceutical Sector of Khyber Pakhtunkhwa

Abstract

The study finds the effects of marketing strategies on the SME performance. Further, it explores the marketing strategies adopted by the pharmaceutical companies in various industrial sectors of KP. The Industrial Estate Hayatabad, Industrial Estate Hattar and Industrial Estate Gadoon were taken as sample areas for the selection of firms. Data was collected from 300 pharmaceutical firms in these Industrial Estates. Closedended questionnaire was used to collect data. The segmentation strategy, differentiation strategy, cost leadership strategy i.e. porter generic strategies were analyzed. The study used the correlation and regression model. Results reveal the cost leadership, differentiation strategy, segmentation have positive relationship with the firm performance. The findings also show that the cost leadership and differentiation strategy have significant effect while the segmentation strategy has insignificant effect on the performance of a firm.