The Influence of marketing mix strategies on organizational performance: a case of Asset Management Companies in Nairobi County
Mumbi, Mbiyu Kagiri
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Asset Management Companies (AMCs) play a critical role in the economy as they channel funds from savers to investors therefore providing an efficient way of pooling funds for investment in the capital markets. Stiff competition and a challenging business environment has forced organizations to device strategies for increasing their performance with limited resources. One such strategy is the marketing mix strategy. The relationship between marketing mix strategy and performance has been observed in past studies revealing mixed findings with limited attention in the context of AMCs in the Kenyan setting. The purpose of the study was to establish the influence of marketing mix strategies on organizational performance of AMCs in Nairobi County. Primary data was collected through use of structured questionnaires. The population of the study was 21 AMCs licensed in Kenya. A census survey was carried out on all the AMCs due to their small size. Judgmental sampling technique was used in selecting 163 AMC managers consisting of senior managers, business development managers and customer service managers as key informants. A cross sectional research design was used in the study. The relationship between the marketing mix strategies and performance of AMCs was analyzed using regression analysis. Significance of the study was tested at 5% level. From estimation, price, place, people and physical evidence strategies were found to be statistically significant whereas product, promotion and process strategies were not statistically significant. Among those variables that significantly influenced performance of AMCs, price strategy (β=0.4468, P value=0.000) and physical evidence (β=0.7794, P value=0.000) had a positive influence whereas people strategy (β= -0.4186, P value =0.012) and place strategy (β= -0.2557, P value =0.004) had a negative effect. Based on the study results, it was suggested that firms need to arrive at the right price which often requires significant resources and some human, social and system capabilities. Further, AMCs need to focus on strengthening appearance and physical setting which both demonstrates and promises quality. AMCs also need to have continuous engagement with their employees in order to improve their skills and competencies while ensuring their distribution strategies deliver the same quality of service across all channels in order to enhance the customer experience and grow their assets under management.