Environmental diversity, market segmentation and performance of commercial banks in Kenya
Abstract
Diversity management is a strategic approach to human resource management, supported
by some programs, activities and tools, directed towards integration and development of
diversity, both physical and job-related, and showed by members of organization. In order
to manage a multicultural markets, respecting traditions and culture it is indispensable to
implement a new approach of marketing strategies which integrates and valorizes the
diversity of the market. The study sought to determine the market segmentation strategies
suitable for responding to environmental diversity in market access within the banking
industry in Kenya. The studywas conducted using the descriptive study design, employing
both quantitative and qualitative approaches. The target population was the bank
marketing managers in selected international banks in Kenya. The Kenya banking sector
is composed of 43 banks. The research applied purposive sampling to identify international
banks operating in Kenya. The study sampled 17 banks making a sample size of 17
marketing directors. The main source of primary data was individual questionnaires served
to marketing executives of the commercial banks. Descriptive Statistics techniques was
used to produce data such as mean, standard deviation, frequencies and percentages.
Inferential statistics techniques were used to test the various correlations that exist among
variables.The findings of the study indicate that there is a moderate linkage which exists
between market segmentation and access to diverse markets in international business
environments. The study found that the marketing departments in the banks have a welleducated
workforce undertaking their delivery of services in this field. It found that while
the banks were recruiting new staff in the marketing departments, they were also keen on
maintaining staff for continuity of organization culture. It found that most of the
respondents feel that their sales growth is high and that most organizations are doing quite
well in growing the revenue from sale of services.The results are also significant for theory,
policy and implementation purposes in marketing for services. The study recommended
similar studies in other organizations in the service sector.
Citation
Master of Business AdministrationPublisher
University of Nairobi