The effects of marketing strategies on sales performance of commercial banks in Kenya
Marketing strategies, in any form of business, is an integral part to the policies that determine the performance of that business. Sales, on the other hand, have a direct impact on the profits and losses of a business. In this case, banks. Banks need to sell loans, accounts, and some banks insurance and even mortgages. The determinants of the number of sales are directly linked to marketing. Therefore, to make more sales, one needs to have very strategic marketing plans. The objective of this study is to determine the effects of marketing strategies on sales performance of commercial banks in Kenya. The study was carried out in Nairobi. The target population was the 43 commercial banks registered by the Central Bank of Kenya. The researcher collected data using semi structured questionnaires. The quantitative data generated was analyzed with the help of Statistical Package for Social Sciences. The study revealed that marketing has become a major function in the banking industry as a result of increased competition brought about by bank consolidation and reforms. As a matter of fact, banks staff involved in marketing activities in the post consolidation era have surpassed those in the pre consolidation era. Thus, there is a connection between banks competition brought about by banks reforms and marketing activities. The competition is supposed, among others, to facilitate effective deposit mobilization, technical efficiency, varieties of services, convenience banking services, productive efficiency, a locative efficiency, lower cost of fund, absence of customer exploitation, higher compensation to depositors, safety of depositors’ funds, availability of funds for investment, increase savings that will transform and high quality services among others. The findings in this study shows an overall significance of the marketing variables adopted, although not much effect is seen when a marketing variable is compared with bank performance in isolation of other variables. This helps to conclude that the marketing strategies techniques must be adequately combined in order to bring about improved performance. For example, if a bank should engage in promotional activities without adequate knowledge of the market, the aim of marketing will be defeated. It was intended that the study would benefit various stakeholders in the banking industry in Kenya and beyond; the government and especially the Ministry of Finance for making policy decision, contribute to the existing literature in the field of marketing and sales performance, the firms in the banking industry in formulating marketing strategies that improve their effectiveness at national and international levels.