The Impact of Marketing Strategies on Sales Performance: An Analysis of the 4Ps among OTOP Entrepreneurs

The Impact of Marketing Strategies on Sales Performance: An Analysis of the 4Ps among OTOP Entrepreneurs

Medilyn M. Ines

College of Business and Management, Isabela State University, Cauayan Campus

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400319

Received: 09 April 2025; Accepted: 11 April 2025; Published: 13 May 2025

ABSTRACT

This study explores the relationship between marketing strategies, specifically the 4Ps (Product, Price, Place, Promotion), and sales performance among One Town One Product (OTOP) entrepreneurs. Utilizing a quantitative approach, the research investigates how these marketing strategies impact key indicators of sales performance, including overall sales, store performance, product success, and team effectiveness. A survey was administered to 62 OTOPreneurs, collecting data on the implementation of the 4Ps and their corresponding sales outcomes. The data were analyzed using Spearman’s Rank Correlation and Pearson’s Correlation to determine the strength and significance of the relationships between marketing strategies and sales performance. The results revealed that Sales Enhancement Ability (Price) and Store Management Ability (Place) had moderate, statistically significant positive correlations with sales performance. In contrast, Customer Service (Product) and Teamwork (Promotion) showed weak or non-significant correlations with sales outcomes. This suggests that, for OTOPreneurs, pricing strategies and effective store management are crucial factors for improving sales. The study emphasizes the need for targeted marketing interventions and offers recommendations for OTOP entrepreneurs to enhance their business performance through improved implementation of the 4Ps. Further research could explore additional factors influencing sales performance and use a larger, more diverse sample to improve generalizability.

Keywords: One Town One Product (OTOP); Marketing Strategies; Sales Performance; 4Ps (Product, Price, Place, Promotion); OTOPreneurs

INTRODUCTION

Micro, Small, and Medium Enterprises (MSMEs) are widely recognized as key drivers of economic growth, job creation, and poverty alleviation, especially in developing countries like the Philippines. To support the development of these enterprises, the Philippine government launched the One Town, One Product (OTOP) program—an initiative that encourages localities to promote unique products based on their cultural heritage, natural resources, and traditional skills. The entrepreneurs operating within this program, commonly referred to as OTOPreneurs, play a vital role in strengthening rural economies and preserving cultural identity.

Despite the potential of OTOPreneurs to generate inclusive growth, many face significant challenges in reaching wider markets, differentiating their products, and sustaining business performance. In an increasingly competitive and digital economy, effective marketing strategies are essential for these entrepreneurs to survive and thrive. Research on OTOP marketing strategies and sales performance reveals that promotional strategies, such as using a strong OTOP logo, combining media platforms, and leveraging celebrity endorsements, have a moderate yet meaningful effect on improving sales performance (Robledo, 2022). Moreover, entrepreneurial marketing variables—including strategies, methods, concepts, and market intelligence—have been found to significantly influence business outcomes (Hadiyati, 2010), highlighting the necessity for a more holistic and innovative approach to marketing.

International experiences further emphasize the value of innovation and quality in marketing success. In the context of snack food exports, product innovation, process improvement, creative packaging, and effective use of the marketing mix have been shown to positively affect export performance (Boonnarakorn et al., 2023). Similarly, Thailand’s OTOP branding program demonstrates that perceived quality, competitiveness, trust, and satisfaction with distribution channels are critical factors in export performance (Sitabutr & Deebhijarn, 2017). These insights underscore the need for comprehensive and adaptive marketing strategies that go beyond basic promotional efforts.

Marketing is more than just selling a product; it involves identifying customer needs, developing products that satisfy those needs, pricing them appropriately, ensuring accessibility, and promoting them effectively. According to the classic marketing mix model introduced by McCarthy and later expanded by Kotler and Keller (2016), the 4Ps serve as a framework for designing and evaluating marketing strategies. These four dimensions are particularly relevant for small enterprises like those under the OTOP program, which often operate with limited financial, human, and technological resources.

This study aims to evaluate the perceived effectiveness of marketing strategies employed by OTOPreneurs in the areas of product development, pricing, placement/distribution, and promotion. By analyzing how these entrepreneurs perceive and implement these strategies in their businesses, the research provides insights into current marketing practices, identifies gaps and challenges, and proposes actionable recommendations for capacity-building and policy development.

Specifically, this study addresses the following questions:

1. What is the level of perceived effectiveness of product, price, place, and promotion strategies among OTOPreneurs?
2. Which marketing strategy dimensions are most and least effective from the perspective of OTOPreneurs?
3. What implications do these findings have for improving the marketing capabilities of local enterprises?

By shedding light on the marketing behavior of OTOPreneurs, this study contributes to the broader perspective on MSME development, rural entrepreneurship, and sustainable local economic growth. The findings are expected to be useful for policymakers, support organizations such as the Department of Trade and Industry (DTI), and entrepreneurs seeking to improve their marketing competencies in the evolving business environment.

METHODOLOGY

This study investigates the relationship between sales performance and marketing strategies (specifically the 4Ps: Product, Price, Place, and Promotion) among OTOPreneurs (One Town One Product entrepreneurs). A quantitative research design was employed to analyze the correlation between these marketing strategies and the sales performance of the businesses.

This research adopts a descriptive-correlational design, which allows for the examination of relationships between marketing strategies and sales performance. The aim was to understand the nature of the association between the implementation of the 4Ps and business outcomes such as sales and product performance. A correlational approach was selected to determine the strength and direction of these relationships based on data gathered from OTOPreneurs in the province of Isabela.

The study targeted OTOPreneurs, small and medium-sized business owners involved in the One Town One Product (OTOP) program. The department of Trade and Industry record provides 62 OTOPreneurs who had significant experience and knowledge in implementing marketing strategies. This is the total population of the OTOPreneurs in the province of Isabela. Total sample size was taken to sufficiently analyze of relationships between the independent variables (marketing strategies) and the dependent variables (sales performance).

Data were collected using a structured survey questionnaire that was pre-validated by experts in the field of marketing. The instrument was tested for validity and reliability, yielding a Cronbach’s alpha value of 0.80, which is considered good and reliable. The survey was distributed to 62 OTOPreneurs and was designed to gather information on the 4Ps of marketing—Product, Price, Place, and Promotion—as well as indicators of sales performance, including overall sales figures, store performance, product performance, and team performance.

The survey questions were designed on a Likert scale to measure the extent of marketing strategy implementation and its impact on sales. Respondents were asked to rate their business’s sales performance and the strength of their marketing strategies in areas such as product quality, pricing strategy, promotional activities, and market distribution channels.

The study measured the following variables:

1. Independent Variables (Marketing Strategies – 4Ps):

Product: Quality, variety, design, and features of the product offered by the business.

Price: The pricing strategy, affordability, and competitiveness of pricing in comparison to other products in the market.

Place: Distribution channels, accessibility of the product in the market, and business location.

Promotion: Advertising efforts, sales tactics, and promotional activities used to attract and retain customers.

2. Dependent Variables (Sales Performance):

SPSales: The overall sales performance of the business.

SPStore: The effectiveness of the physical store or sales point in attracting customers and generating sales.

SPProduct: The performance of the product in the market, including demand and customer feedback.

SPTeam: The performance of the sales team in promoting the product and closing sales.

Data were analyzed using Spearman’s Rank Correlation to identify the relationships between the independent variables (marketing strategies) and the dependent variables (sales performance).  A significance level of 0.05 was used to assess whether the correlations between marketing strategies and sales performance were statistically significant. In addition to Spearman’s correlation, Pearson’s Correlation was also applied to assess the linear relationship between the variables. The statistical analyses were conducted using SPSS (Statistical Package for the Social Sciences) software.

The research adhered to ethical guidelines to ensure the protection of respondents’ rights and confidentiality. Prior to participation, all respondents were informed of the study’s purpose and the voluntary nature of their participation. Informed consent was obtained from each participant, and respondents were assured that their data would remain confidential and used exclusively for academic purposes. The data collected were anonymized to prevent the identification of individual participants, and all responses were securely stored.

RESULTS AND DISCUSSION

Table 1 Marketing Strategies of OTOPreneurs in Terms of Customer Retention

Table 1 shows the marketing strategies of OTOP entrepreneurs in terms of customer retention. The results about the marketing strategies of OTOPreneurs in terms of customer retention show that the overall weighted mean is 4.62, which falls under the verbal description of “Extremely Helpful”. “Familiarity with the products” got the highest mean of 4.87 with a verbal interpretation of “Extremely Helpful”. “Loyal customers act as vehicles of brand sentiment and customer acquisition via word-of-mouth marketing (e.g. testimonials and referrals)” got the lowest mean of 4.52 with a verbal interpretation of “Extremely Helpful”.

The highest mean score is familiarity with the products got the highest mean  demonstrating the effectiveness of the businesses’ customer retention strategies. Product familiarity is a significant factor contributing to customer retention, as customers are more likely to return to a business that offers affordable products and with which they are familiar. While loyal customers are acting as brand ambassadors, spreading positive word-of-mouth marketing through testimonials and referrals, further contributing to customer retention.

The high level of trust current customers has in the brands makes it easier for them to become repeat customers, demonstrating the importance of building trust with customers.

According to Bhenu (2022), customer retention is crucial for businesses as it is more cost-effective than acquiring new customers. The study highlights the importance of customer satisfaction, trust, and value proposition in retaining customers.

The data suggests that OTOPreneurs have been successful in implementing effective marketing strategies to retain customers. By focusing on excellent customer service, product affordability, and trust-building initiatives, these businesses have managed to create a strong customer base that is likely to return and continue doing business with them.

Table 2 Marketing Strategies of OTOPreneurs in Terms of Marketing Strategies of the Products

Table 2 shows the marketing strategies of  in terms of marketing strategies-product. The results about the marketing strategies of OTOPreneurs in terms of  marketing strategies-product show that the overall weighted mean is 4.60, which falls under the verbal description of “Extremely Helpful”. “ Offers good quality product” got the highest mean of 4.79 with a verbal interpretation of “Extremely Helpful”. “The product design, evaluation, and packaging for your products.” got the lowest mean of 4.50 with a verbal interpretation of “Helpful”.

The highest mean score is offers good quality indicating a high level of agreement with the statements. This suggests that the respondents strongly agree that these marketing strategies are effective for marketing strategies-product.

According to CXL, a product marketing strategy is a plan that guides a company on how to position, price, and promote its new product in the market. It should be based on strong buyer intelligence and should be continually refined based on customer feedback and market changes. The Sales Performance Wheel by RAIN Group categorizes the various influences on sales success into eight buckets, with the first four concerning the organization itself and the performance environment for its sellers, and the second four relating directly to sellers and sales managers. Product analysis helps companies understand the product’s features, benefits, and unique selling points, and how it fits into the larger market landscape. Customer service analytics can help companies better understand their customers’ needs and expectations, lead to improved customer experience (CX) strategies, and increase customer loyalty and retention. Semrush provides a six-step market analysis process for building a surefire marketing strategy. Governments should prioritize sectors for support, develop a supportive regulatory environment, and improve coordination on implementing programs as MSMEs-OTOPreneurs policies can cut across many ministries and government agencies.

Table 3 Marketing Strategies of OTOPreneurs in Terms of Marketing Strategies of Prices

Table 3 shows that the marketing strategies of the OTOPreneurs in terms of Marketing Strategies-Price obtained an overall weighted mean of 4.19.  It shows that “Price adjustment but keeping the offer more attractive,”got the highest mean of 4.90 translated as “Extremely Helpful,” while “Giving credit limits based on the creditworthiness and credibility of the customer to pay.” got the lowest mean  of 3.85 which was verbally described as “Helpful,”

This suggests that price adjustment but keeping the offer more attractive, are instrumental in attracting new customers and retaining existing ones. The results are consistent with the importance of pricing strategies for businesses, as pricing can significantly impact customer perceptions and purchasing decisions.

Recent research underlines the need of good marketing plans for small and medium businesses (SMEs) in the digital age. With pricing competition greatly affecting sales volume, price strategy becomes a key component (Endro Purnomo et al., 2021; S. Pemasaran et al., 2023). Promoting products and developing consumer interactions depends much on digital marketing, especially via social media and websites (Arsih Amalia Chandra Permata et al., 2023; Rizki Sitanggang et al., 2024). To stay competitive, SMEs in several sectors—including culinary, fashion, and travel—concentrate on offering extra value and product differentiation (Arsih Amalia Chandra Permata et al., 2023). Often targeting niche markets, the trading sector uses competitive pricing tactics (Arsih Amalia Chandra Permata et al., 2023; Rizki Sitanggang et al., 2024). These studies underline the need for SMEs to change their marketing strategies to the digital environment, hence improving their market presence and sales performance by means of combining competitive pricing with efficient online advertising.

These findings highlights the importance of understanding consumer behavior and the factors that influence it, such as price sensitivity, perceived value, and product quality. The results suggest that the marketing strategies of OTOPreneurs are effective in terms of pricing, which can lead to increased profitability and long-term success.

Table 4 Marketing Strategies of OTOPreneurs in Terms of Marketing Strategies of Places

The findings from Table 4 emphasize the high perceived effectiveness of place-based marketing strategies among OTOPreneurs, with an overall weighted mean of 4.28, interpreted as “Extremely Helpful.” Among the indicators, having a strategically located physical store (mean = 4.45) was rated the most helpful, underscoring the critical role of location in attracting and retaining customers. This shows that positioning  a product in a city, town, or region as an attractive product—can boost investment and consumer engagement when supported by infrastructure and accessibility. The positive perception of physical store ambiance and accessibility also mirrors the view that an appealing atmosphere and convenient locations enhance product desirability and customer satisfaction.

Moreover, the relatively lower but still helpful rating of logistics-related strategies, such as product movement and flow (mean = 4.18), reflects ongoing challenges in distribution that were highlighted in the study of Appoy (2015), who noted that marketing assistance—especially in distribution—is often insufficient in OTOP programs. These results suggest a need for improved supply chain and logistical support to fully optimize marketing strategies under the “place” dimension. Supporting this, Poothong et al. (2017) also indicated that while OTOP enterprises perform well in some marketing areas, they still face moderate difficulties in logistical implementation. Strengthening these components through better transportation, warehousing, and segmented product placement can further enhance the overall effectiveness of OTOPreneurs’ market reach.

Table 5 Marketing Strategies of OTOPreneurs in Terms of Marketing Strategies of Promotion

Table 5 shows that the marketing strategies of the OTOPreneurs in terms of Marketing Strategies-Promotion obtained an overall weighted mean of 4.19.  In this indicator the item got the highest mean was ”  Personal selling is advised like a face-to-face meeting between a seller and the buyer (s) in which the seller tries to c`convince the buyer (s) to own/avail the product.,” with a mean of 4.63 translated as “Extremely Helpful,” while the item got the lowest mean was ” Product uses different print advertisement materials like flyers/leaflets/magazine).” with a mean of 3.74 which was verbally described as “Helpful,”

The study’s findings on promotional strategies indicate that OTOPreneurs find personal selling, particularly face-to-face interactions with customers, to be the most effective promotional tool, with the highest mean of 4.63. This aligns with research by Tingi and Tugang (2021), which emphasizes the importance of personal selling in building customer relationships, especially in rural areas. The use of social media ads, such as those on Facebook, Instagram, and TikTok, also scored highly (mean of 4.05), supporting Robledo’s (2022) assertion that social media platforms are effective tools for enhancing product visibility and engaging customers without significant financial investment. Additionally, the study found that creating effective ways to build product awareness quickly (mean of 4.47) is crucial in increasing sales, reflecting the growing reliance on digital marketing strategies.

In contrast, print advertisements (mean of 3.74) were rated less effective, reflecting the shift towards digital promotion in contemporary marketing. This is consistent with Nawawi et al. (2017), who highlighted the importance of integrating innovative and technological strategies for small-scale entrepreneurs. Sales promotions (mean of 4.32), which include discounts and special deals, were also considered highly effective in driving short-term demand, aligning with Boonnarakorn et al. (2023), who noted their significant role in increasing sales and customer retention. Overall, these findings underscore the value of combining traditional promotional methods, such as personal selling, with digital tools and sales incentives to optimize marketing efforts and enhance OTOPreneurs’ competitiveness.

Table 6  Significant Relationship Between Sales Performance and Marketing Strategies Using Pearson Rank Correlation

Table 6 presents the results of a Spearman’s rank correlation analysis for various factors affecting sales performance in OTOPreneurs. The analysis is conducted at a significance level of 0.05. The table shows the Spearman’s rank correlation coefficient (r), p-value, and the number of observations (N) for each factor. The analysis reveals the following insights:

Customer Service: The Spearman’s rank correlation coefficient is 0.204 with a p-value of 0.112, indicating a moderate and non-significant positive relationship between customer service and sales performance.

Sales Enhancement Ability: The Spearman’s rank correlation coefficient is 0.277 with a p-value of 0.029, indicating a moderate and significant positive relationship between sales enhancement ability and sales performance.

Store Management Ability: The Spearman’s rank correlation coefficient is 0.259 with a p-value of 0.042, indicating a moderate and significant positive relationship between storemanagement ability and sales performance.

Product Knowledge and Presentation: The Spearman’s rank correlation coefficient is -0.045 with a p-value of 0.726, indicating a weak and non-significant negative relationship between product knowledge and presentation and sales performance.

Team Work: The Spearman’s rank correlation coefficient is 0.056 with a p-value of 0.664, indicating a weak and non-significant positive relationship between team work and sales performance.

The results indicate that sales enhancement ability and store management ability have moderate and significant positive relationships with sales performance, while customer service, product knowledge and presentation, and teamwork have weak and non-significant relationships. This suggests that sales and store management practices may have a more substantial impact on sales performance compared to other factors. However, further research is needed to confirm these findings and explore other potential factors that may influence sales performance in OTOPreneurs.

The findings of this study, particularly the significant positive relationships between sales enhancement ability and store management ability with sales performance, are strongly supported by existing literature. Yi et al. (2021) emphasize that organizational sales-related capabilities directly enhance individual sales skills and outcomes in personal selling environments, while Munshi and Hanji (2014) identify both sales enhancement and store management abilities as critical dimensions of retail sales performance.

CONCLUSION

This study aimed to assess the perceived effectiveness of marketing strategies—centered on the 4Ps framework (Product, Price, Place, and Promotion)—and examine their relationship to sales performance among OTOPreneurs in Isabela Province. The findings provide vital insights into how local entrepreneurs perceive, apply, and benefit from strategic marketing practices within the context of locally rooted, community-based enterprises.

The descriptive analysis revealed that product strategies were perceived as the most effective, with emphasis placed on product quality, packaging, and unique value propositions. This reflects a strong understanding among OTOPreneurs of the importance of cultural authenticity and product differentiation in capturing customer interest. Pricing strategies also scored highly, indicating that many entrepreneurs effectively set competitive prices that reflect both market demand and perceived value.

In contrast, placement and promotion strategies were rated as less effective. This suggests limitations in logistical distribution, digital presence, and promotional outreach. Many entrepreneurs remain dependent on traditional marketing channels and local trade fairs, indicating a gap in digital marketing skills and access to broader e-commerce platforms. These areas present significant opportunities for intervention, particularly through training programs and digital transformation initiatives supported by local government units and development agencies.

To further understand the real-world impact of these strategies, Pearson correlation analysis was conducted to determine the relationship between marketing strategies and various indicators of sales performance. The results, as shown in Table 6, revealed several significant findings:

Sales enhancement ability showed a moderate and significant positive correlation with sales performance (r = 0.277, p = 0.029), suggesting that marketing efforts that directly improve selling techniques and customer persuasion contribute meaningfully to sales outcomes.

Store management ability was also found to have a moderate and significant positive relationship with sales performance (r = 0.259, p = 0.042), highlighting the importance of organized and efficient store operations in driving revenue.

Promotion strategies were significantly correlated with several indicators of sales performance, such as total sales (r = 0.392, p = 0.002) and store image (r = 0.378, p = 0.002), suggesting that despite their perceived low effectiveness, when used strategically, promotions can substantially influence customer perception and actual sales.

Price and place strategies also demonstrated significant correlations with store and sales indicators, implying that accessibility and appropriate pricing enhance business visibility and profitability.

On the other hand, product knowledge and teamwork did not exhibit significant correlations with overall sales performance, indicating that while these are important internal capabilities, they may not independently drive sales unless aligned with broader strategic efforts.

These statistical outcomes reinforce the notion that marketing strategies do not operate in isolation. Sales performance is closely tied to how these strategies are implemented in tandem with internal capabilities such as sales skills and store management. Although product quality and packaging remain key strengths of OTOPreneurs, the study underscores the need to improve promotional effectiveness and expand distribution channels to maximize business potential.

The study also affirms that holistic development interventions are necessary to uplift OTOP enterprises. These include targeted capacity-building efforts in digital marketing, customer relationship management, inventory systems, and pricing strategies—especially tailored to the needs of micro and small entrepreneurs. Furthermore, promoting an integrated understanding of how teamwork, employee engagement, marketing innovation, and customer experience interconnect can help entrepreneurs develop more resilient and adaptive business models.

The study provides empirical evidence that while OTOPreneurs in Isabela show strength in product development and pricing, enhancing promotional efforts and strategic distribution—paired with improved store and sales management practices—are critical to achieving sustained growth. Government agencies, NGOs, and academic institutions may work collaboratively to address these gaps and empower local entrepreneurs to thrive in both local and global markets.

RECOMMENDATIONS

Based on the findings of this study on the effectiveness of marketing strategies and their relationship to sales performance among OTOPreneurs in Isabela Province, the following recommendations are proposed to enhance the business outcomes and strategic capacity of local entrepreneurs:

1. Enhance Training on Promotion and Digital Marketing. Since promotion was identified as one of the less effective strategies yet showed a significant correlation with sales performance, it is recommended that local government units (LGUs), the Department of Trade and Industry (DTI), and academic institutions collaborate to provide regular training on promotional techniques, especially focusing on digital marketing, social media promotion, content creation, and customer engagement.
2. Strengthen Store and Sales Management Practices. With store management and sales enhancement abilities found to significantly influence sales performance, OTOPreneurs should be given access to capacity-building workshops on inventory management, customer service excellence, and persuasive selling techniques. This will not only improve efficiency but also strengthen customer loyalty and revenue growth.
3. Improve Market Access and Placement Strategies. To address the limitations in placement, government agencies and cooperatives should assist entrepreneurs in accessing wider distribution channels, including e-commerce platforms, trade expos, and retail partnerships with mainstream outlets. Establishing local hubs and business centers where OTOP products can be regularly displayed and sold can also help boost visibility.
4. Leverage Product Strengths While Innovating. While product strategies are already strong, there is a need to sustain this momentum through continuous product innovation, quality control, and market trend analysis. Introducing design labs, mentorship programs, and innovation grants can encourage OTOPreneurs to refine their offerings and remain competitive.
5. Implement Holistic Support Programs. Development agencies should take a holistic approach to entrepreneurship support, combining financial assistance, skills development, business incubation, and market linkage programs. This will help ensure that improvements in one aspect (e.g., marketing) are complemented by growth in other business areas.
6. Promote Research and Monitoring of Entrepreneurial Performance. Continuous research and monitoring should be conducted to assess the evolving needs of OTOPreneurs. LGUs and educational institutions are encouraged to establish localized data hubs that track business trends, challenges, and success stories—providing evidence-based insights to shape future policies and programs.
7. Foster Collaborative Ecosystems Among Stakeholders. Stakeholders such as universities, private firms, government agencies, and NGOs should foster collaborative ecosystems to share resources, provide mentorship, and promote innovation within the local entrepreneurial community. Public-private partnerships can drive inclusive growth and ensure that small businesses are not left behind in the digital economy.

By addressing the gaps identified in the study—particularly in promotion, placement, and management—these recommendations aim to empower OTOPreneurs to optimize their marketing strategies, enhance sales performance, and contribute more effectively to local economic development.

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