The Impact of Marketing Mix Decisions on Performance

Previous research studies have established the fact that economic reform programs in many developing nations have not only transformed the business environments of these economies, but also influenced the business practices of firms operating in these countries. In the context of Ghana, these issues are further explored in this paper by examining two hypotheses: (i) foreign firms will engage in more extensive marketing mix activities than domestic firms and (ii) effective marketing mix decisions will be positively related to business performance. Based on a sample of 200 firms, data were generated through a self-administered mail survey. Findings of the study indicate that foreign significantly outperform domestic firms in promotion and customer orientation activities. For both firms, product, pricing and customer orientation activities are positively related to performance but there is no significant link between their distribution activities and performance. Promotion is positively (p < .05) related to foreign firms' performance but the link is not significant in domestic firms. We subsequently discuss the implications of these findings for business practitioners in Ghana and opportunities for foreign entrepreneurs considering joint ventures or market entry in a liberalized developing economy. Finally, limitations of the study and future research avenues are addressed.