Influence of marketing strategies on performance of smes in Nairobi county Kenya.

Abstract

Study examines influence of marketing strategies on performance of Small and Medium-sized Enterprises (SMEs) in Nairobi County, Kenya an economically vital sector for employment creation and GDP growth. Specifically, the study focuses on four marketing strategies: pricing, distribution channels, promotional activities, and digital marketing. Guided by the 4Ps of marketing and Resource-Based View (RBV) theory, a mixed-methods approach was employed. Quantitative data were collected from 300 SMEs using structured questionnaires, while qualitative insights were obtained through in-depth interviews with selected stakeholders. Purposive sampling was used to select participants across diverse sectors, and data were analyzed using descriptive and inferential statistics. Findings indicate all four marketing strategies significantly affect SME performance, albeit to varying degrees. Promotional strategies had the strongest impact, with most respondents agreeing that they enhance brand visibility, customer engagement, and sales (mean = 3.95). Digital marketing was also found to be influential in expanding market reach (mean = 3.68), although inconsistencies in monitoring and evaluating its effectiveness were noted. Pricing strategies showed a positive effect on performance, particularly when competitively set (mean = 4.06), with competitive pricing being the most effective in customer attraction (mean = 4.38). Distribution channels were moderately effective (mean = 3.95), though disparities in logistical capacity were observed across SMEs. The study concludes that well-structured marketing strategies are vital for improving SME performance in Nairobi County. It recommends that SMEs invest in both traditional and digital promotional campaigns, adopt affordable digital tools such as SEO and social media analytics, and participate in training programs on value-based pricing and digital marketing. These measures can enhance competitiveness, sustainability, and long-term growth in Nairobi’s dynamic business environment.