Marketing Strategies and Sales Performance of Agro-dealers in Nairobi City County, Kenya
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Date
2021
Authors
Ingoi, Wycliffe Mukangai
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Sales performance has remained the critical aspect of consideration in modern-day profit-oriented organizations. Companies continue to adopt various strategies to achieve increased sales performance. However, research investigating the effect of marketing strategies on sales performance of agro-based dealers is still scanty. The main objective of this study was to examine the relationship between marketing strategies and the sales performance of agro-based dealers in Nairobi City County. The study sought to achieve four specific objectives, namely, to determine the effect of market development on sales performance, to find out the effect of product development on sales performance, and to assess the influence of market penetration on sales performance. The study was anchored on the Ansoff matrix model, push and pull theory and Porter’s Five Forces Theory. A corresponding hypothesis was developed for each of these hypotheses. The study adopted a descriptive research design, which involved collection of primary data using a closed-ended questionnaire. The population included the directors of 88 agro-dealers in Nairobi City County. Convenience sampling was used to recruit the respondents in the study. Both descriptive and inferential statistics were used to analyze the data. Reliability and validity were determined using Cronbach’s alpha value and expert opinion respectively. The results from multiple linear regression analysis revealed that marketing development (p=0.00), product development (p=0.00), market penetration (p=0.04) and product diversification (p=0.02) had a significant relationship with sales performance of the agro-dealers. In particular, it was found that a unit increase in market development strategies would boost sales performance by 48.8%; a unit increment in product development activities would grow the sales performance of the agro-dealers by 25.7%; a unit increase in market penetration activities would enhance the performance of the agro-dealer by 19.9% and a unit increase in product diversification activities would boost the sales performance of the agro-dealers by 17.1%. Based on these findings, it was concluded that agro-based companies have the potential to enhance their performance in their markets through deliberate implementation of market development, product development, market penetration and product diversification strategies. In this regard, this study recommends firm managers seeking to grow their enterprises to so through simultaneous pursuit of the marketing strategies. They need not select only one or two of these strategies and exclude the others. Each of the marketing strategies should be considered.
Description
A Research Project Submitted in Partial Fulfilment of the Requirements for the Award of Masters Degree of Business Administration, Marketing Option of Kenyatta University, June 2021
Keywords
Marketing Strategies, Sales Performance, Agro-dealers, Nairobi City County, Kenya