Factors that influence sales and marketing strategies adopted by commercial banks: a case of KCB bank, Kencom house branch, Nairobi county-Kenya
The banking industry in Kenya has experienced a lot of growth in the last decade, the market is now flooded with financial and non-financial organizations all trying to maximize on the same market, this has created a need to remain competitive and relevant and strive to acquire the largest market share. With Globalization, Technological changes and constant changes in customer tastes and preferences, banks have no option but to come up with sales strategies that not only grow their numbers, but also grow them competitively. Over the last few years, the banking sector in Kenya has continued to grow in customer numbers, assets, deposits, profitability and products offered. The growth has mainly been attributed by an industry wide branch network expansion strategy both in Kenya and in the East African region as well as automation of a large number of services. Players in this industry have experienced increased competition over the last few years resulting from increased innovations among the players and new entrants into the market. The objectives of the study were: to establish the influence of the corporate strategy of KCB Bank on the adoption of a sales and marketing strategies, to examine the extent to which organizational culture influences the adoption of a sales and marketing strategies at KCB Bank, to determine the influence of target market influences the choice of a sales and marketing strategies at KCB Bank, and finally to analyse the extent to which consumer behaviour influences the adoption of a sales and marketing strategies at KCB Bank. Employees of the bank who work at the Head Office formed the population in this study. Descriptive survey research design was used and questionnaires administered for data collection. Data was collected from the natural setting. Data was presented using frequency distribution tables and analysed using percentages. The study brought out how various factors influence the choice of sales and marketing strategies adopted by KCB Bank. This study found out that corporate strategy, organizational culture, target market and consumer behaviour all influence the choice of sales and marketing strategies of the bank to a very large extent. Of the four factors, the most influential factor was found to be target market, with 48% of the respondents saying it had the greatest influence on the choice of sales and marketing strategies of the bank. This study recommends that banks must continually improve their sales performance by keeping track of trends and market opportunities and clearly defining their target market in order to maximize on the marketing dollars.