The Effect of Marketing Capabilities and Distribution Strategy on Performance of MSP Intermediary Organisations’ in Nairobi County, Kenya

Abstract

The purpose of this study was to determine the effect of marketing capabilities and distribution strategy the performance of MSP intermediary organizations. The mobile service providers sector is a major contributor to the country’s economic growth and achievement of development goals and vision 2030. Nevertheless, the performance of MSP intermediary organisations appears to have stagnated and is even on a declining trend in some cases. This study employed a descripto-explanatory cross-sectional survey research design.  The study collected primary data from 219 respondents drawn from a target population of 397 selected using stratified and simple random sampling procedures. A semi-structured questionnaire was used to collect data. The data was analysed using descriptive statistics in the form of frequencies and one sample t-tests. Simple linear regression and multiple linear regression in SPSS were used for inferential statistical analysis. This study established that marketing capabilities and choice of distribution strategy had a composite effect in contributing significantly to the MSP Intermediary organisations ‘performance. The study recommends MSP intermediary organisation sales managers need to lobby management to invest in training and appropriate performance compensation plan for its sales people as well as the ICT system that will enable efficient routing of the customers, where daily actual/targets and retailer information is availed, enhancing proper monitoring and evaluation of the sales team and their activities which will lead to improved performance of the MSP intermediary organisation.