FACTORS INFLUENCING THE CHOICE OF MARKETING STRATEGIES OF COMMERCIAL BANKS IN KENYA
Abstract
Marketing strategy determines the choice of target market segments, positioning, marketing mix and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. The study sought to identify the strategies adopted by commercial banks in Kenya and to determine the factors influencing their choice of marketing strategy. The study reviewed innovation, technology, service quality and employee competence as the key independent variables. Descriptive research design was employed and targeted one manager at each of the three levels of management from the 43 commercial banks in Kenya. Proportionate representative stratified sample of all categories of the population of interest in the survey was used. Questionnaires were issued to the respondents as a key instrument for primary data collection. Data was presented using tables, pie charts and figures appropriately. SPSS was used to analyze the data by carrying out factor analysis and multiple regression to obtain an equation which describes the dependent variable in terms of the independent variables based on the regression model. Content analysis was used to analyze the qualitative data. The findings showed that the choice of marketing strategy is influenced most by innovation since their P-value of 0.00 indicated the highest significance than innovation, technology and the employees’ competence which had 0.01, 0.02 and 0.04 respectively. The researcher recommends that Banks should invest in new technology, innovation and employees competence in order to implement the right marketing strategies that are relevant in the modern world. This study is significance to all the existing firms in the banking industry in Kenya.
Keywords: Competitive advantage, Strategic planning, Business performance, Product development strategy, Competition.Full Text:
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DOI: http://dx.doi.org/10.61426/sjbcm.v1i2.44
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