Factors influencing the marketing strategies adopted by micro and small enterpreneurs in Eldoret town, Kenya

Abstract

This study focused on the micro and small-scale enterprises located in Eldoret town. The research was based on those micro-entrepreneurs found in the exhibition halls in the town centre which are characterized by high product similarity, huge discounts offered and ever-changing customer preferences. The study was conceptualized to establish the factors that influence the marketing strategies employed by the micro and small entrepreneurs. These include the marketing environment in which the microentrepreneurs operate in on a daily basis. The environment contributes to the constraints which the micro-entrepreneurs face as they perform their operations. Such constraints includes: high competition, low demand, saturated markets, changing customer preferences and limited marketing knowledge and information. The study adopted a descriptive research design. Data was collected from both primary and secondary sources. Primary data was collected using structured questionnaires. Secondary data was drawn from relevant journals; research reports published textbooks and government publications. Systematic random sampling methods were employed to determine a sample of respondents from the overall population. The data was processed with the aid of Statistical Package for Social Science and was presented using tables, frequencies, percentages and graphs. The findings of the research revealed that micro and small entrepreneurs adopted different marketing strategies depending on the nature of business they undertook and also the marketing constraints, which they faced. The various marketing strategies include advertising, pricing, location and interior decor, cost saving, and staffing and customer retention strategies. The study recommended that micro and small entrepreneurs should understand their marketing constraints and their marketing environment in order to choose the appropriate marketing strategies. The study recommended that the micro and small entrepreneurs embrace the use of mobile phone technology in their daily operations. More over the use of computer and Internet technology was very convenient for use in business due to its technological capacities. Further the study recommended that to deal with the competitive environment the micro and small entrepreneurs should strive to embrace cleanliness, ambiance and general interior decor for their stalls, provide enough space for customers and also ensure that security is provided for their customers. They should also ensure that their stalls were accessible and ensure that their wares were well displayed in a manner that will attract customers. It was further recommended that micro and small entrepreneurs be trained in marketing information since most of them lack knowledge on how to effectively market their products. The intuitions in charge of micro enterprise development should take time to develop programs, which suit the marketing needs of exhibition hall micro enterprise and enable them to participate in building the economy. The study recommended that further research be conducted in both rural and urban areas to give a comparative conclusion of the findings.