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Small and Medium Business (UKM) of bread and cake can develop and encounter business competition if they are concerned greatly with their marketing performance. The purpose of this study was to determine: 1. The effect of market orientation and product innovation on marketing performance of Bread and Cake UKMs. 2.The moderating effect of competitive ad-vantage, strengthens or weakens, of market orientation and product innovation on the marketing performance of Bread and Cake UKMs partially. Data were obtained through offline questionnaire distribution to 80 respondents. The respondents were the business owners and employees of Bread and Cake UKMs in Bengkulu, Indonesia. The data analysis used in this research was Structural Equation Model (SEM) which was operated through the Partial Least Square (PLS) program, SmartPLS 3.2.9. The result indicated that market orientation and product innovation partially influenced marketing performance. Competitive advantage partially moderated (strengthens) the effect of market orientation and product innovation on marketing performance. This research contributes to the theoretical development of competitive advantage which moderates the effect of market orientation and product innovation partially on marketing performance. The study also helps to find the strategy to increase the marketing performance of Bread and Cake UKMs in Bengkulu, Indonesia.
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