Effect of Key Account Management Strategy on Sales Performance of Television and Radio Stations in Kenya

Abstract

The aspiration of every profit making organization is to increase its profits, market share and grow its revenue streams periodically. Key account management strategy calls for customer focus, creating and building long lasting relationships between firm key account managers and the buying firm, creating profit opportunities for both parties. Television and radio stations are important entities in conveying trustworthy and credible information to general public and embraces the armor of social cultural diversity instigating societal unity and growth. The general objective of the study was to establish the effect of key account management strategies on sales performance of televisions and radio stations in Kenya. This study was based on two theories, relationship marketing theory and dynamic capabilities theory. The target population was 230 radio and television stations. The total sample size was 84 derived using Slovin’s formula, 37 being television stations and 47 radio stations. Stratified random sampling techniques was used. It was established that relational activities and key account planning had a great impact on Key account management strategies while development of KAM capabilities and key account identification have a significant impact on key account management strategies at moderate extent. It was found out that key account management strategies and sales performance have a positive correlation relationship. The study recommends that the televisions and radio stations in Kenya should practice key account management strategies in order to enhance their sales performance.