The Influence Of Strategic Marketing On Performance Of Travel Agencies In Nairobi County

Abstract

The study aimed at establishing the influence of strategic marketing on performance of travel agencies in Nairobi County. The study was guided by the following theories; Market-Based View (MBV) theory and Game theory. The study employed a descriptive cross sectional research design. The study focused on 1,300 travel agencies in Nairobi. The study classified the staffs into strata; upper level management, middle level management and lower level management. The sample design of this study was based on Krejcie & Morgan, hypotheses. Using the Krejcie and Morgan 1970 table (appendix II) a sample size of 297 was selected from a population of 1300 travel agencies. The study used primary data and secondary data. The researcher used semi- structured questionnaire to collect primary data. The researcher administered the questionnaire individually to the travel agencies in Nairobi. Secondary data was collected from marketing reports for individual travel agencies found on the KATA website and library. Annual marketing reports were used in the study due to ease of availability and the fact that they are reliable. Regression analysis was used to find the relationship between strategic marketing and performance. The various elements under the dependent variable, namely; market penetration strategy, product development strategy, market development strategy and diversification strategy, was reduced to a single value through computing a composite value by use of weighted average method. Based on the findings of this study, the study concluded that market penetration strategy has a great positive influence on performance of travel agencies in Nairobi County. On the product development strategy, the study concluded that performance of travel agencies in Nairobi County are positively influenced to a great extent by product development strategy. The study further concluded that research and development influence performance of travel agencies in Nairobi County, brand extension influences performance of the agency, assessing customer needs influence performance of the agency. The study further concluded that market development strategy has a great positive relationship to the performance of travel agencies in Nairobi County. The study further conclude that new geographical markets influence performance of the agencies, different pricing policies to create a new market segment influence performance of the agency and that market research has an impact on the performance of the agency. Further, the study concludes that the application of diversification to travel agencies in Nairobi County has a positive relationship to the performance. The study recommends that the management of travel agencies in Nairobi County should implement the use of integrated marketing communication because it solves most problems and helps the agencies to improve their services to their customers.