The effectiveness of marketing strategies on sales performance of pharmaceutical companies in Nairobi, Kenya

Abstract

The pharmaceutical sector in Kenya has been expanding at an increasing rate and is becoming intensely competitive. As such, every organization needs to adopt some strategies which will enable it to have a competitive edge over the others. As competition intensifies, many businesses continue to seek profitable ways in which to differentiate themselves from competitors. The study sought to establish the effectiveness of marketing strategies used by pharmaceutical companies operating in Nairobi on sales. Descriptive research design was used for the study. Towards this end, the study collected primary data from 38 multinational pharmaceutical companies operating in Kenya who employ pharmaceutical representatives and managers. The data was collected through the administration of questionnaires to the companies. The data collected was analyzed using SPSS. Descriptive statistics were used in the presentation and analysis of results. The study established that the marketing approach of the pharmaceutical firms differs as some prefer segmentation while others prefer mass marketing. The target market for the firms varied from national, multinational to both. The strategies which were used by the firms and that increased sales included the 4Ps of marketing, product, place, promotion and pricing. Other marketing strategies used and increased sales were competitive market strategies including defender strategy which describes holders of the highest market share, prospector who will continually search for market opportunities and are creators of change and analyzer who read the market and watch competitors closely in various segments and rapidly adopt promising ideas. The strategies which were not used quite often and thus there effect in sales was unknown included penetration pricing, economy pricing, skimming, single channels, reverse distribution, direct mailing, advertising, different quality products, entering into joint ventures, mergers, acquisition takeovers and reactor competitive strategies. Therefore, pharmaceutical companies operating in Nairobi need only adopt the marketing strategies that result in an increase on sales. Organizations should ensure that they pursue the marketing approach which best suits them and also they should not stick to one or a few strategies but instead must be dynamic and change the strategy to suits the changing times.