Perceived Influence of Marketing Research Practices on Performance of Cement Manufacturers in Kenya

Abstract

Market research is an effective tool in business planning which entails collecting and analyzing of data to gain insight into the customers buying and consumption patterns. Market research also assists in monitoring market trends and inform on what competition is doing. Marketers agree that market research is extremely important as the business landscape is in a constant state of change, therefore , marketing research plays a very critical part in an organization’s marketing plan as it dictates strategy formulation and implementation, resource allocation, as well as in assisting brands understand and reconnect with their customers. The main objective of the study was to establish the marketing research practices carried out by cement manufacturers in Kenya and its impact on performance, the study focused on two theories: Resource based view and Agency theory. The study used descriptive research design and targeted all cement manufacturers in Kenya. Target respondents included the managers of the cement firms. Data was collected through questionnaires distributed to the respondents. SPSS was used for data analysis and both descriptive and inferential statistics were used to analyze results and draw conclusions. From the findings it was agreed that marketing research had an influence on the performance of cement companies and that majority of the companies used a balance of financial and non-financial measures to assess the company’s performance. It was agreed by majority of respondents that marketing research had enhanced organizational performance, through improving customer service efficiency, providing insights into new market opportunities, providing competitive advantage and improved sales turn-over. The study concludes that there has been an improvement in performance of the cement manufacturers as a result of market research. Findings showed a positive significant correlation between marketing research practices and organizational performance and that 18.4% of performance for cement manufacturing companies is explained by marketing research. The study recommended that research should not only be done on demand basis but should be constant as information gathered can be used by the organization to improve its competitive advantage and overall company performance.