The Effects of Marketing Innovation on the Business Performance of Community Enterprises for the Herbal City in the North of Thailand
With keeping track of appropriate business metrics, business performance is measured that is sometimes also called key performance. The business performance demonstrates the progress of goal setting for the business for all measurable values. As measuring business performance is an important element of monitoring the progress and growth of any business. However, marketing innovation directly impacts on business performance of an organization. According to the current study, product design and packaging, product placement, product promotion, and pricing are the factors of marketing innovation that directly impacts market penetration and business performance, particularly of community enterprises for the herbal city, particularly in the North of Thailand. Market penetration also directly impacts business performance; furthermore, it mediates between the relationship of market innovation and business performance. A survey-based on 359 salespersons as a respondent of the current study was conducted for the collection of primary data. Then the primary data was passed through a Partial Least Square (PLS) to analyze the primary data to obtain final results. It is found that the increased value of marketing innovation also increases the market penetration that increases the business performance of an organization.