Relationship between Product Promotion Strategy and Organizational Performance of Maize Seed Companies in Kenya
DOI:
https://doi.org/10.53819/81018102t2335Abstract
Organizational performances of seed companies’ encounter competitive market forces that exposed the vulnerability of industry in today’s economy. New company concepts, varying customer wants and sophistication, and fierce market rivalry have altered business practices. The issues that companies’ organizations confront today across the world include new advancements and an unpredictable, dynamic market. The main purpose of the study was to evaluate relationship between product promotion strategy and organizational performance of maize seed companies in Kenya. The study was guided by Marketing Mix Theory. This study adopted correlational research design. The target population was 1014 employees from 14 maize seed companies in Kenya. The sample size was determined using Yamane (1967) formula which gave a sample size of 286 respondents (114 Marketing officers & 172 Sales officers). Data collection instrument for the study was questionnaires. The data collected was analyzed using descriptive and inferential statistics. Analyzed data was presented using tables. The study results showed that product promotion strategy influence on organizational performance of maize seed companies in Kenya. Maize seed companies use direct marketing which has led to an increase in profit. Maize seed companies in Kenya use advertising to present product and ideas to the customers. Product promotion strategy has a positive and statistically significant effect on organizational performance of maize seed companies in Kenya with (r=0.652; p<0.05). In conclusion sales promotions increase sales volumes, attract new customers, encourage loyalty and repeat purchases, get insights into customer behaviour and respond to opportunities in the market. The study recommends to the managers of maize seed companies to factor in sales product promotion to create customer-product interest and brand awareness since majority of the maize seed companies in Kenya do not access all potential customers because of limited sales promotion.
Key words: Product promotion strategy, organizational performance & maize seed companies.
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