Effect of Strategic Marketing Initiatives on the Performance of Equity Bank, Kenya

Abstract

The objectives of the study were to examine the effect of agency banking, mobile banking and internet banking as strategic marketing initiatives on the performance of Equity Bank. The study utilized a descriptive research design. Data for the study were collected from Senior Managers at Equity Bank through questionnaires and annual reports through data collection sheets. Collected data was analyzed, edited and coded into Statistical Package for Social Sciences vs 22 for descriptive and inferential statistics analysis. The study found that a positive strong significant correlation exists between net profitability and number of transactions done through mobile and agency banking platforms at Equity Bank. Similarly, a strong positive significant relationship exists between the sales revenue and number of transactions done through mobile and agency banking implying that the use of agency and mobile banking enhanced sales generation and net profitability. Nevertheless, the use of internet banking platforms did not have a significant effect on either net profitability or sales revenue. The study found that the major challenges tempering the relationship between strategic marketing initiatives and firm performance were: lack of skilled employees, high employee turnover, legal requirements, technological changes and resource constraints.