Marketing Strategies and Performance of Kenya’s Microfinance Banks: A Case of Kenya Women Microfinance Bank Plc
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Date
2023
Authors
Mburu, Anne Nyambura
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Microfinance banks in Kenya have been experiencing fluctuations in their performance
measured in terms or return on equity and return on investment. To address the declining
performance, microfinance banks have adopted marketing strategies. However, despite the
adoption of marketing strategies, the performance still remains poor.
The study sought to examine marketing strategies and performance of Kenya‘s microfinance
Banks: a case of Kenya Women microfinance Bank PLC. The objectives of the study were; to
find out the influence of corporate brand strategy, product strategy, distribution strategy, and
customer service strategy on performance of Kenya‘s Microfinance Banks. This study was
guided by resource-based theory, market-based view (MBV) theory, Ansoff growth theory and
profit maximization theory. The study used descriptive research design. The target population
comprised of 62 top management and employees working in credit, finance/accounts and
operations departments at KWFT. A census approach was deployed and hence the whole
population was used in the study. This study used structured questionnaire to gather primary data
while secondary sources of information including business journals and Microfinance reports
were used. The questionnaires‘ validity was determined by expert opinions while reliability was
tested by Cronbach Alpha coefficients. A pilot test was conducted on 10 percent of the entire
population as the study adopted a census approach. The data was analyzed using inferential and
descriptive statistics with the help of SPSS Version 21. The study found that corporate branding
strategies, product strategies, product distribution strategies and customer service strategies had
significant positive effect on performance of the microfinance institutions in Kenya. The study
therefore recommends additional usage of technological platforms so as to avail financial
products and services to as many clients as possible. The study also recommends consistent
training development to all staff on customer service as it has been pivotal on enhancing the
influence of microfinance institution performance and ensuring that customers‘ needs are met.
The study further recommends that amicable corporate relations should be enhanced by use of
effective marketing sensitization to the public.
Description
A Research Project Submitted to the School of Business in
Partial Fulfilment of the Requirements for the Award of Degree
of Master of Business Adminstration (Marketing Option) of
Kenyatta University
Keywords
Marketing Strategies and Performance, Microfinance Banks, Kenya Women Microfinance Bank