The Influence of Promotion Marketing Mix Element on Performance of Microfinance Institutions in Nairobi County: Emerging trends in customer management
Microfinance institutions (MFIs) play a key position in the Kenyan economy by providing financial support to the middle working class and the low-class individuals. Some of the notable MFI`s include Platinum Credit, Mwananchi Credit, Momentum Credit My Credit among others. With the many hidden costs such as loan penalties, tracking, insurance costs, repossessions by auctioneers of the charged securities, Covid-19 pandemic, MFI`s still manage to offer stiff competition to the main stream banks and other financial service provides. These glaring anomalies informed the need to interrogate the marketing mix elements used by MFI`s to gain and sustain a competitive advantage edge in the highly competitive market. The impact of marketing mix variables on MFI performance in Nairobi County was investigated in this study. The objectives of the study included interrogating the influent of promotion and price element of marketing mix on performance of MFI`s. This was in line with the theme of emerging trends in customer management. The study utilized descriptive research design. The study involved 98 respondents from 49 MFI`s in Nairobi, each one providing two respondents. The study utilized questionnaires as the primary data collection instrument. They were emailed to respondents in compliance with the Ministry of Health guidelines. The instrument was tested for validity and reliability using a sample pilot study in the neighboring County of Kajiado. SPSS was used to analyze the data and show it in the form of graphs and tables. The unbiased study revealed that promotion as an independent variable of the study had positive relationships with the performance of MFI institutions presenting whereas price produced an inverse relationship to MFI performance respectively. The study recommended that MFI should increase budgetary on promotion, explore alternative pricing strategies eradicate hidden costs while ensuring retention and growth customer base through acquisition of new customers.
Keywords: Microfinance institutions, marketing mix elements. promotion, price