Association of Marketing Strategies with Performance of Radio Broadcasting Firms Based in Kisumu County, Kenya

Abstract

Marketing strategies literature show cost leadership, differentiation and focus strategies as important drivers of performance and competitive advantage among firms. However, there is no literature about radio broadcasting firms, the association of cost leadership strategy with performance of radio broadcasting firms, the association of differentiation strategy with performance of radio broadcasting firms and the association of focus strategy with performance of radio broadcasting firms. The purpose of this study therefore was to establish the association of marketing strategies with performance of Radio broadcasting firms based in Kisumu County, Kenya. Specific objectives of the study were to: determine the association between cost leadership strategy and performance of the radio broadcasting firms; determine the association between differentiation strategy and performance of the radio broadcasting firms and to establish the association between focus strategy and performance of the radio broadcasting firms in Kisumu County. The study was guided by a conceptual framework with marketing strategies as independent variable and performance as dependent variable. The study employed a correlational research design and the population of study constituted a total of 35 top managers and middle level managers from the three radio firms operating in Kisumu County. Instrument reliability and validity test were done using pilot study involving 5 managers and expert review respectively. A semi-structured questionnaire reliable at a = 0.750, 0.984 and 0.927 for the three constructs was used to collect primary data. Secondary data was collected through desk review. Data was analyzed using descriptive and inferential statistics and presented using tables and graphs. The findings were that the association between cost leadership and performance were positive and significant, that is, (r = 0.475, p = 0.008, n= 30) meaning that use of cost leadership strategies influences performance positively, the association between differentiation strategy and performance were positive and significant, that is, (r = 0.597, p = 0.000, n= 30) meaning that differentiation strategy positively associates with performance and the association between focus strategy and performance were positive and significant, that is, (r = 0.555, p = 0.001, n= 30) meaning that focus strategy positively associates with performance. The study concludes that use of cost leadership strategies associates with performance positively; that use of differentiation strategies associates with performance positively and lastly use of focus strategies associates with performance positively. Recommendations of the study are that management of radio broadcasting firms should continue using differentiation strategies and intensify use of cost leadership and focus strategies, intensify application of cost leadership strategies, intensify application of differentiation and focus strategies as these were found to positively associate with performance of these firms. The results of this study will be important to the Radio Broadcasting Firms by helping them to adopt marketing strategies that would enhance their performance and prove to be useful to both academics and industry players in the media industry. To the academia, the study will provide an insight on applicability of Porter's generic strategies in various industries, also gap for further investigation on other related media or entire industry. To the industry policy makers, the study will help in identify the appropriate marketing strategies for survival in the competitive business world.