Influence of Positioning Strategies on Performance of Commercial Banks in Kenya

Abstract

Positioning strategies is vital tool to confront competitive pressures in a market environment and also as a tool of improving the performance of the commercial banks, commercial banks needs to develop a distinctive image by which consumers will be able to identify it, it must be able to provide a combination of features perceived to be desirable by the target market. Therefore this research study sought to investigate the influence of positioning strategy on performance of commercial banks in Kenya. This research adopted survey design to explore the viable. The study used a descriptive survey approach in collecting data from the 88 marketing officers working in 44 commercial banks in Kenya. A questionnaire which was drop and pick administered was used in gathering of primary and secondary data. Quantitative and qualitative techniques were used to analyze both primary and secondary data. The content analysis was used to analyze the respondents’ views. The study revealed that positioning strategies enhanced grow more rapidly and more profitable relative to its competitors, improve sales of new products, enabled bank to offer financial services that have important attributes in delivering benefits, attain a big market share, enhance customer loyalty and improve customer retention . From the findings, the study concluded that commercial banks needs to enhance the performance by increasing the level of significance of positioning strategies adopted in order to distinguish itself from its competitors, create an image relative to competitors and be identified in the minds of targeted customers for their product and services. Positions management, market strategies, internal and external infrastructure, use of information technology, ability to innovate and differentiate would be necessary for the bank as it would enable it to increasingly respond to market considerations therefore enhance competition and profitability.