The Effect of Marketing Strategy on the Competitive Advantage of Selected Microfinance Institutions in Baungon

Abstract

This study examines how marketing strategies influence the competitive advantage of selected microfinance institutions (MFIs) in Baungon, Bukidnon, particularly in Barangay Imbatug. It focuses on the effectiveness of the four elements of the marketing mix—product, price, place, and promotion—and how these contribute to cost efficiency, service quality, and overall competitiveness. Using a descriptive quantitative approach, data were gathered from ten MFI employees through a validated questionnaire. Results show that all four marketing mix components were rated highly effective, with product strategies receiving the highest mean score (3.0). This indicates that offering relevant, valuable, and responsive financial products plays a central role in strengthening customer trust and satisfaction. In assessing competitive advantage, differentiation (mean = 3.64) ranked slightly higher than cost leadership (mean = 3.50), suggesting that MFIs in the area prioritize providing unique value and quality service rather than competing solely through low pricing. The study is anchored on the Strategic Marketing Theory and the Value Discipline Model, which emphasize understanding customer needs and aligning marketing efforts to sustain long-term competitiveness. Insights from experts such as Kotler, Keller, Porter, Chikweche, and Fletcher further support the importance of strong customer relationships. Correlation analysis revealed a strong positive relationship (r = 0.77268) between marketing strategies and competitive advantage; however, this relationship was not statistically significant at the 0.05 level. This indicates that while marketing efforts appear to influence competitiveness, other factors may also play a key role. Additional analysis showed no significant differences in responses based on age or income, though gender had some influence on perceptions of differentiation. In conclusion, the study highlights that effective marketing strategies—especially strong product offerings—contribute meaningfully to enhancing the competitiveness of MFIs in Baungon. By focusing on differentiation and maintaining high-quality service, MFIs can build trust, respond better to client needs, and strengthen their position in the community.