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Marketing Performance of SMEs Operating in Indonesia: Analyzing their Dependence on Marketing Intelligence Capability and Pricing Capability of Pharmaceutical Companies

Abstract

Wiyadi, Noer Sasongko, Chuzaimah, Dudung Hadiwijaya, Rina Trisnawati

Purpose: This study aims to explore the role of mediating pricing capability for enhancing marketing intelligence capabilities into firm market performance of pharmaceutical small and medium sized enterprises.
Methodology/Approach: The researcher applied a questionnaire survey in a convenient sample from 440 employees of pharmaceutical small and medium sized enterprises and operated structural equation modeling to evaluate survey data.
Findings: Results disclose that customer orientation, competitor orientation and information processing are predominantly important features of marketing intelligence capability to gain enhanced market performance by pharmaceutical SMEs. Results clarified that pricing capability mediates market intelligence drivers (customer, competitor orientation, information processing) along with market performance.
Research Implications: This study extends existing literature regarding market intelligence; it delivers new understandings on marketing capabilities by spreading the conception of market performance to a wider impression of marketing intelligence capability for pharmaceutical SME’s. Further, this research shows that the price capability assists as a mediator to market performance.
Practical Implications: This study’s findings focus on the measurements of marketing intelligence and its link to price capability which enables firms to understand how to exploit market intelligence to sustain completive edge and how to outperform competitors in market performance.
Originality/Value: This study (a) links basic dimensions of marketing intelligence with pharmaceutical SME’s performance (b) shows how the pricing capability renovates customer orientation, competitor orientation and information processing for better market performance.

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