Integrated Marketing

Abstract

The Kenyan banking industry has become very competitive, with the increasing number of banks, dynamic government policies, emerging technologies and demanding customers, driving this scenario. As a result, it is important for banks to incorporate the latest marketing thinking in their operations. Integrated marketing is one non-traditional marketing approach that banks in Kenya can use to gain competitive advantage. Research was needed, as it was not clear the extent to which commercial banks in Kenya use this approach. The objectives of this study were to determine the extent to which commercial banks in Kenya have adopted integrated marketing and also to establish the challenges faced by banks towards attaining an integrated marketing approach. This was a descriptive study and the population of interest included all registered commercial banks in Kenya at the time of study. The entire banking sector comprised 42 commercial banks (see Appendix 3) and therefore, a census study was carried out due to the relatively small size of the population. Primary data was collected using a structured questionnaire (Appendix 2), which was dropped at the respective banks and collected at a later period. The respondents consisted of the CEO or the senior most manager within the banking organization. Data was analyzed using descriptive statistics. The findings indicate that generally the banks in Kenya practice integrated marketing to a large extent. However, some elements tend to be practiced to a very large extent including; “involvement of functional heads in developing organization’s mission and vision’, ‘focusing on retaining existing customers’, ‘including customer satisfaction’ as a key aspect of the vision/mission’ and ‘developing a customer oriented culture’. All aspects were at worst viii practiced to small extent tending to some extent with none of the elements being practiced to no extent at all. These include the extent to which employees are treated as customers, considering employee's preference in structuring incentive rewards, treating colleagues as customers and carrying out regular staff surveys. The banks seem to be focussed on external customers’ needs, disregarding the needs of internal customers. The key challenges faced in the implementation of integrated marketing are high cost of implementing change, inability to meet all customer needs, lack of coordination among departmental heads, resistance to change by employees, resistance to change by managers, lack of training in marketing among top management and ensuring that every employee understands the vision and mission. Other challenges were mentioned by few respondents but are of importance because they were not predetermined. These were: unstable investment market, dynamics of the banking industry, government policy, qualifying reward to a consultant and making the customer understand, lack of proper reward system for employees and resistance from board members. Resistance by various interest groups emerged as a key challenge. This in the researcher’s view has to do with the fear of unknown given that the financial market places a high value on security. It is a major limitation in making innovative bank products and concepts see the light of the day. The research had several limitations such as unavailability of top bank managers and the secrecy policy in some banks. This made it impossible to get responses from some banks. Also the respondents were the people in charge of making policies in the banks, this may have brought in some subjectivity. The researcher recommended further research IX covering lower levels of management and operational staff and including other financial sub sectors. The researcher recommends that banks in Kenya should look at the aspects of integrated marketing that they are not practicing to a large extent. The researcher further recommended marketing and change management training for the top and middle managers. The existing integrated marketing practicing level needs to be increased as a way of enhancing customer longevity. Loyal customers are more willing to pay premiums, demand less handholding and make referrals. Integrated marketing can help the banks achieve high customer retention levels as it is based on the interdependence of systems, which incorporates all interest groups as ‘partners in progress’.