The perceived influence of marketing promotion on brand equity: A case of Kenya commercial bank
This paper examines the influence of marketing promotion on brand equity from two perspectives; the value of the brand to the firm (Financial Perspective), and the value of the brand to customers (customer based brand equity). The value of brand to the firm is based on the incremental discounted future cash flows that would result from a branded product’s revenue over the revenue of an unbranded product (Simon and Sullivan, 1993). The value of brand to the customer according to Keller (2004) is the differential effect that brand knowledge has on consumer response to the marketing of that brand. The study was carried out in Kenya Commercial Bank as a case study of the banking industry. Two questionnaires were used to collect data, one was administered to the bank customers in the banking halls and ATM points to assess the influence of marketing promotion on customer attitudes dimensions (brand knowledge, association, and perceived quality and customer loyalty) towards KCB and consequently brand equity. The other questionnaire was used to collect data from the bank managers through interviews to assess the promotion strategies applied by the bank and the effects of these efforts on KCB and brand equity. The results of the study indicate that Marketing Promotion plays a role in creating brand equity by creating, and enhancing brand knowledge which influences the customer attitudes. It was also established that the word of mouth is an equally important promotion tool to recruit new customers and create awareness of new products to the existing customers. The respondent agreed that they would ask for a product if they had either heard about from media advertisement, family or friends. The promotion strategy implemented by the bank with other brand building efforts have ensured KCB improved profits over the last five years. The study further established that Kenya commercial bank marketing promotion mainly through events organizing for instance Safari rally, Golf tournaments had created a lot of brand awareness. Social marketing (corporate social responsibility) through various initiatives like Education, Environment had worn the bank a responsible citizen award which ensured brand publicity and equity. Other promotion vehicles have been applying depending on the product/service and the target market.