Impact of Marketing Strategies on The Performance of Medium Enterprises (MES) In South-West Nigeria

Abstract

Medium Enterprises (MEs) are a cornerstone of Nigeria's economic framework, contributing over 50% of industrial output and accounting for more than 86.3% of national employment. In South-West Nigeria, MEs face stiff market competition and operate in an economically volatile environment. Despite the importance of strategic marketing, many MEs lack effective product management and pricing strategies, resulting in low customer retention, poor brand differentiation, and declining profitability. Products are often generic, and pricing decisions are reactive—disconnected from customer value and market demand. This study investigates the impact of product management and pricing strategies on the performance of MEs in South-West Nigeria. A cross-sectional research design was employed, using structured questionnaires administered to 312 ME owners and managers across Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti states. Multiple regression analysis were conducted to determine the influence of the two variables on business performance. The results of findings reveal that product management and pricing strategies significantly and positively impact ME performance, accounting for 89% of the variation in performance outcomes (R² = 0.89, p < 0.05). Product management (â = 0.4127) and pricing strategy (â = 0.3785) both demonstrated strong predictive power, confirming their critical role in driving revenue growth, customer satisfaction, and market competitiveness. Based on these findings, the study recommends that MEs invest in research and development (R&D) for product innovation, maintain robust quality control systems, and adopt value based and dynamic pricing models to align with consumer expectations and market trends. Policy interventions are also necessary to enhance ME access to training, market intelligence, and strategic marketing resources. Theoretically, the study reinforces the Resource-Advantage (R-A) Theory, demonstrating that MEs with 121 International Journal of Entrepreneurship Innovation and Management (IJEIM) Volume 4, No 1 (121-137) superior marketing capabilities—particularly in product and pricing strategy—achieve better competitive positioning and sustainable performance.