The effects of marketing mix on profitability of institutions in the banking sector in Kenya (a case Study of Family Bank Ltd.)
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Date
2012
Authors
Muchina, Margaret W
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The purpose of the study was to investigate the effects of Marketing Mix on the profitability
of institutions in the banking industry, a case study of Family Bank Ltd. Marketing scope in
banking sector is considered under the service marketing framework. Performed marketing
strategy is the case which is determination of the place of financial institutions on customers'
mind. Bank marketing does not only include service selling of the bank but also is the
function which gets personality and image for bank on its customers' mind. On the other
hand, financial marketing is the function which relates uncongenitalies, differences and non
similar applications between financial institutions and judgement standards of their
customers.Other specific objectives included product decisions, pricing, promotion and
distribution.
The research adopted a descriptive research design. The population of the study was 118
composed of selected respondents from Head Office, Fourways, Sonalux, KTDA Plaza,
Cargen and Pan African House branches. A sample of 50% was drawn from the population
using stratified random sampling. Data was collected by use of questionnaire method and will
have both closed and open ended questions. Data was analyzed using descriptive statistics
including frequency distribution tables, means, mode and standard deviation; there was the
use of Microsoft Excel and SPSS to aid this. This study aimed to be useful to academics since
it will give opportunity for further research and will help policy makers to use it for proper
positive implementation.
From the study the researcher aimed to investigate the effects of Marketing Mix on the
profitability of institutions in the banking industry. From the findings of the study: product
decisions, pricing, promotion and distribution were found to affect profitability in the banking
industry. This was as depicted in the co-relation coefficients for the variables: Product
decisions (0.647), Pricing (0.897), Promotion (0.7) and Distribution (0.579). From the study
the following recommendations were made: rigorous consultations with customers prior to
launching products, proper market research and product testing, creation of more awareness
on the pricing as most of them are not aware of some of them prices especially the charges
that appear hidden, more use of the social media, better adverts that are more captivating,
use of street marketing teams, and proper public relations, more branches being opened at
strategic locations, partnerships with other banks, introduction of agency banking and the
possibility of going regional by expanding over East Africa and beyond.
Description
Department of Business Administration, 47p. 2012, HF 5415.4 .M8