A low level of ability in managing internal and external factors of the business will result in the less optimal of marketing strategies implementation and achieved an outstanding marketing performance. Therefore, a partial study of marketing strategy and marketing performance is needed which aims to determine the marketing strategy and performance. As many as 120 SMEs were chosen as respondents for saltwater fish processing in East Java, Indonesia. The multistage sampling technique used in this study where the Likert scale employed as a measuring tool in the questionnaire was distributed, finally, the data was processed by SEM, the Lisrel program. This study found that the internal and external factors partially influence on marketing strategies; the internal and external business factors partially influence marketing performance; and marketing strategies have no effect on marketing performance. The dominant path that arises is the internalstrategy-performance pathway, which means that the company's ability to manage internal factors is more dominant in influencing marketing strategy and performance.