Marketing Mix and Performance of Used Motor Vehicle Dealership Companies in Nairobi

Abstract

The objective of the study was to find how marketing mix influence performance of used motor dealership in Nairobi, Kenya. The extent to which the 4Ps are used by these car dealership companies was evaluated; each element of the marketing mix was studied: promotion, place, product and pricing. Promotion focused on ways the dealership companies advertise to reach the target clients including use of television, exhibitions and publicity. Place was assessed by looking at the channels used to distribute cars by dealers, existence of a dedicated sales team and availability of after sales service. Product evaluated the use of quality, attractive features, warranties and car model differentiation. Pricing looked at demand, competitor pricing ability of buyers and flexible payment plans. The study adopted a descriptive cross sectional research design. The population comprised 46 companies dealing in used motor vehicles where the study collected primary data using questionnaires from these companies. The collected data was analyzed using means, standard deviations and regression analysis. The findings were presented using Figures and Tables. The study concludes that marketing mix has a positive and significant effect on performance. The study recommends that the senior management team of all car dealership companies in Kenya should effectively handle the customer complaints. The management of car dealership companies should use warranties to grow sales revenues. The study recommends further studies to cover all car dealers companies in Kenya, both used and new car dealers. Future studies can also be done in other companies, sectors and industries on effect of marketing mix.