EFFECTS

OF

MARKETING

STRATEGIES

ON

PERFORMANCE

OF

COMMERCIAL BANKS IN KENYA: A CASE STUDY OF CO-OPERATIVE

BANK NAROK BRANCH.

BY

MOSES TOPOTI

A RESEARCH PROJECT TO BE SUBMITTED IN PARTIAL FULFILMENT OF

THE REQUIREMENT FOR THE AWARD OF DIPLOMA IN MANAGEMENT
(BUSINESS MANAGEMENT OPTION) OF THE KENYA INSTITUTE OF
MANAGEMENT

NOVEMBER 2013

DECLARATION

ii

DEDICATION
This work is dedicated to my loving family members, my dear wife Margaret and my
loving boy Mark and to my dear mum Ann. To you all thank you very much for the
support.

iii

ACKNOWLEDGEMENTS
I begin in the name of God, Most Beneficent and Most Merciful. Praise to God for
providing me with great health, strength and emotional support in completing this
dissertation. It is with great appreciation that I acknowledge the contributions and support
in completing this dissertation.

It is with great appreciation that I acknowledge the contributions and support of my

supervisor Dick Safari whose time, effort and guidance were highly beneficial especially
during the study.

My heartfelt appreciation to my family members who were forced to understand their

sons need to be away most of the times, their endless support, encouragement and
understanding throughout my good times as well as my tough times are so meaningful.

Finally I acknowledge the respondent of the study for cooperation during the study, may
God Almighty bless them abundantly.

iv

ABSTRACT
The purpose of this study was to determine the effects of marketing strategies on
performance of commercial banks in Kenya, a case study of co-operative bank-narok
branch. The specific objectives were; to find out the availability of marketing strategies in
co-operative bank-Narok branch, to determine whether marketing strategies improves the
co-operative banks competition in the market, to determine whether marketing strategies
increases revenue collections of co-operative bank-Narok branch and to find out whether
marketing strategies improves the corporate image of co-operative bank-Narok branch. A
descriptive research design was used in the study. The target population of the study was
67 employees of co-operative bank-Narok branch. The study used stratified random
sampling to select a sample size of 40 employees of co-operative bank-Narok branch.
Data was collected using questionnaires which were distributed to the respondents who
came from co-operative bank-Narok branch. Data was tabulated and analyzed using
descriptive statistics and it was presented using tables, bar graphs and pie charts. The
findings indicated that marketing strategies affects the performance of the organization.
The study therefore recommends that banks should embark, from time to time on
marketing research. This is because effective marketing strategies are a product of
marketing research. Thus, good and adequate marketing mix is a product of effective
marketing research too. Marketing research will bring about innovation, better services
for customer and better method of production and processing. The study shall provide
Scholars in the field of strategic management and marketing as they will use this
information to understand the state of the sector better. They will also use the information
as a reference point to research on the strategy formulation and innovations in other
industries.

TABLE OF CONTENTS
DECLARATION.............ii
DEDICATION........iii
ACKNOWLEDGEMENT..... iv
ABSTRACT ....v
TABLE OF CONTENTS .......vi
LIST OF TABLES...viii
LIST OF FIGURES....ix
ABBREVIATIONS AND ACRONYMS........x
DEFINITION OF OPERATIONAL TERMS........xi
CHAPTER ONE1
1.0 INTRODUCTION OF THE STUDY1
1.1 Background of the Study...1
1.2 Statement of the Problem...6
1.3 Purpose of the Study..7
1.4 Objectives of the Study..7
1.5 Research Questions7
1.6 Significance of the Study...8
1.7 Limitations of the Study.8
1.8 Scope of the Study.9
CHAPTER TWO.10
2.0 LITERATURE REVIEW....10
2.1 Introduction..10
2.2 Review of Related Literature...10
2.2.1 Availability of Marketing Strategies in Commercial Banks.13
2.2.2 Marketing Strategies and the Banks Competition in the Market ...18
2.2.3 Marketing Strategies and the Corporate Image of Commercial Banks22
2.3 Review of Analytical Literature...24
2.4 Summary of the Review...28
2.5 Conceptual Framework of the Study.......28

vi

CHAPTER THREE.30
3.0 RESEARCH DESIGN AND METHODOLOGY...30
3.1 Introduction..30
3.2 Research Design...30
3.3 Target Population of the Study30
3.4 Sample Size and Sampling Procedure.30
3.5 Data Collection Instruments and Procedure31
3.6 Data Analysis...32
CHAPTER FOUR33
4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION.33
4.1 Introduction..33
4.2 Presentation and Findings33
4.2.1 Response Rate...33
4.2.2 Age Distribution of the Respondents33
4.2.3 Level of Education34
4.2.4 Work Experience of the Respondents...35
4.2.5 Current Department..36
4.3 Availability of Marketing Strategies in Co-Operative Bank-Narok........................37
4.4 Marketing Strategies and the Banks Competition in the Market....40
4.5 Marketing Strategies and the Corporate Image of the Bank....42
4.6 Summary of the Chapter..44
CHAPTER FIVE.45
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS..45
5.1 Introduction..45
5.2 Summary of the Findings.45
5.3 Conclusion of the Study...46
5.4 Recommendations of the Study...48
5.5 Areas for Further Research..48
REFERENCES..50
APPENDIX I: LETTER OF INTRODUCTION..53
II: QUESTIONNAIRE...54
vii

LIST OF TABLES
Table 4.1 Response Rate33
Table 4.2 Marketing...38
Table 4.3 Rating of Marketing...38
Table 4.4 Facilitation of Marketing...39
Table 4.5 Training of Marketing Officers.40
Table 4.6 Marketing Strategies..40
Table 4.7 Competition of the Bank41
Table 4.8 Rating of Competition...42
Table 4.9 How Marketing Strategies Improve the Corporate Image ....43
Table 4.10 Rating of Corporate Image..44

viii

LIST OF FIGURES
Figure 2.1 Conceptual Framework....28
Figure 4.1 Distributions of the Respondents by Age.34
Figure 4.2 Distribution of Participants Level of Education..35
Figure 4.3 Respondents Work Experience...36
Figure 4.4 Current Occupations of the Respondents.37
Figure 4.5 Marketing Strategies and Corporate Image..42

ix

LIST OF ABBRIVIETIONS AND ACRONYMS

F-

Frequency

KCB-

Kenya Commercial Bank

SME-

Small and Medium Enterprises

SWOT-

Strength, Weakness, Opportunities and Threats

DEFINATION OF OPPERATIONAL TERMS

Availability-Availability refers to a state of being at hand when needed. Marketing
strategies availability can boost the organizations performance as it makes the business
and its products and services known to the clients.
Competition-It is the rivalry between people or organizations. Marketing strategies can
bring about competitions and in return it can make the organization offer quality services
to the clients.

Corporate Image-Corporate image refers to the business unit. Marketing strategies can
improve the corporate image of the business in that efficiency is increased.

Revenue- Refers to the income of an organization. Marketing strategies improves the

revenue of an organization as it makes the organization known to the public.

xi

CHAPTER ONE
2.0 INTRODUCTION TO THE STUDY
This chapter deals with the background of the study, the statement of the problem,
objectives of the study, research questions, significance of the study, scope of the study,
limitation of the study and the conceptual frame work.

1.1 Background of the Study

A market-focused organization first determines the potential customers desire, and then
builds the products or services. Marketing theory and practice are justified in the belief
that customers use a product or service because they have a need, or because it provides a
perceived benefit (Kotler and Keller, 2006). Two major factors of marketing are the
recruitment of new customers (acquisition) and the retention and expansion of
relationships with existing customers (base management). For marketing plan to be
successful, the mix of the four Ps must reflect the wants and desires of the consumers
in the target market.

Trying to convince a market segment to buy something they do not want is extremely
expensive and seldom unsuccessful. Marketers depend on insights from marketing
research, both formal and informal, to determine what consumers want and what they are
willing to pay for. Marketers hope that this process will give them a sustainable
competitive advantage. The study of Akinyele (2011) for the oil and gas sector in Nigeria
suggest that strategic marketing is a driver of organizational positioning in a dynamic
environment, and that it helps to enhance the development of new product for existing
markets.

Banks offer a wide range of financial services, to personal and business customers; some
of these services which are bank account, guarantorship, and investment adviser are
needed by an appreciable number of customers, but many other financial services such as
import/export services, money transfers, credit cards that will be brought to the attention
of banks potential customers, whom then must be persuaded to use them (Abolaji, 2009).

Many services offered by banks are also offered by rival organizations. Building
societies have developed customer accounts which are similar in many ways to a bank
account.

Thrift and cooperative societies provide lending services to their numerous members and
indirectly to the society at large. Solicitors act as executors and trustees and accountants
give advice and so on. Banks not only compete with each other but also have to contend
with challenges from other types of organization in the market. To do this successfully,
bankers need an understanding of the process of marketing which will aid in improving
banks performance. Marketing is an area of activity infamous for re-inventing itself and
its vocabulary according to the times and the culture. Marketing is all about acquiring
new customers and retaining existing customers (Abolaji, 2009).

The concept of marketing has received a great deal of attention from Scholars in the field
of marketing. The concept has been investigated from many perspectives and examined
in many ways indicating its conceptual and practical importance. Marketing concept is
based on the paradigm of a true balance between "giving and getting" as a key benefit to
encourage an active role and is conducive in delivering two- way value, where loyalty is
based on trust and partnership, will prove to be one of the most significant policies to be
pursued in development and sustenance of competitive advantage (Abolaji, 2009).

According to Abolaji, (2009), the real purpose of business is to create and sustain
mutually beneficial relationships, especially with selected customers. With the main
proposition which assume that successful relationships is the two-way flow of value.
Positive relationship has been established between marketing and organization
performance. Marketing usually results in strong economic, technical and social ties
among the stakeholders parties thereby reducing their transactions costs and increasing
exchange efficiencies included in marketing which are not only buyers or sellers
exchanges but also business partnerships, strategic alliances and cooperative marketing
networks.

The relationship typically involves seller- customer exchange, but it could involve any
stakeholders relationship (Morgan and Hunt, 1994). Abolaji, (2009) opines that
marketing emphasizes that relationships are partnerships with emphasis on social
bonding, co-operation and joint problem solving, sharing resources and activities and
basing relationship on common goals. He, however, challenged that the benefit should be
relational and dyadic too. Most of the studies have been emphasizing the effect of
marketing on organization performance neglecting customer benefits. Moreover,
relationship marketing emphasizes that long-term relationships are mutually beneficial.

In any genuine relationship, both parties involved should be beneficiaries of the outcome
of such relationship. Ismail (2009) observed that if genuine partnerships, as marketing
suggests exist, relational quality and relational benefits must be of great value. Drawing
inspiration from similar study conducted by Ismail (2009) in Jordianian Insurance
companies. This study seeks to examine the strategies used by Commercial banks in
Kenya to deal with Service breakdown. A companys strategy consists of the business
approaches and initiatives it undertakes to attract customers and fulfill their expectations,
to withstand competitive pressures and to strengthen its market position.

These strategies provide opportunities for the organization to respond to the various
challenges within its operating environment. Firms also develop strategies to enable them
seize strategic initiatives and maintain a competitive edge in the market (Porter, 1985).
The competitive aim is to do a significantly better job to its customers. The success of
every organization is determined by its responsiveness to the customer needs. The
competitive aim is to do a significantly better job of providing what customers are
looking for, thereby enabling the company to earn a competitive advantage and outsmart
rivals in the market place.
The core of a companys marketing strategy consists of its internal initiatives to deliver
satisfaction to customers but also includes offensive and defensive moves to counter the
maneuvering of rivals, actions to shift resources around to improve the firms long term
competitive capabilities and market position, and tactical efforts to respond to prevailing

market conditions. Assuming that there are a number of providers, customers will choose
which offering to accept on their perception of value-for-money. Finance has been
identified as the most important factor determining the survival and growth of small and
medium sized enterprises in Kenya.
Access to finance allows Small and Medium Enterprises (SMEs) to undertake
productive investments to expand their businesses and to acquire the latest technologies,
thus ensuring their competitiveness and that of the nation as a whole. Poorly functioning
financial systems can seriously undermine the microeconomic fundamentals of a country,
resulting in lower growth in income and employment (Griliches, 1998). Landes (1998)
argues that despite their dominant numbers and importance in job creation, SMEs
traditionally have faced difficulties in obtaining formal credit or equity. These difficulties
are what the commercial banks call service breakdown.
For example, maturities of commercial bank loans extended to SMEs are often limited to
a period far too short to pay off any sizeable investment; secondly SMEs are regarded by
creditors and investors as high-risk borrowers due to insufficient assets and low
capitalization, vulnerability to market fluctuations and high mortality rates; thirdly
information asymmetry arising from SMEs lack of accounting records, inadequate
financial statements or business plans makes it difficult for creditors and investors to
assess the creditworthiness of potential SME proposals; and lastly is the high
administrative/transaction costs of lending or investing small amounts do not make SME
financing a profitable business (Griliches, 1998).

To compete effectively in the SME financing sector, and faced with this service
breakdown, commercial banks need to provide financial services that meet the
specialized needs of SMEs while coping with the high risks and costs associated with
servicing them (Landes, 1998). To achieve this, an increasing number of banks have
adopted separate strategies to service SME customers. The current trend is to shift from a
product-based focus to a more customer oriented focus of providing packages of financial
services tailored to their needs.

This has the potential of considerably improving the banks relations with the SME
sector, as well as increasing the profitability of providing financial services to it (Landes,
1998). In Kenya, the rise of SMEs has been hindered by financial challenges and
political instability (Carrier, 1999).

Kenya has created conditions for private-sector

growth but is still held back by an inadequate financial system. Kenyas private sector
consists of mostly informal micro enterprises, operating alongside large firms. Most
companies are small because the private sector is new and because of legal and financial
obstacles to capital accumulation.
Between these large and small firms, SMEs are very scarce and constitute a missing
middle. Financing is necessary to help SMEs set up and expand their operations, develop
new products, and invest in new staff or production facilities (Gomez-Mejia, 1998).
Many small businesses start out as an idea from one or two people, who invest their own
money and probably turn to family and friends for financial help in return for a share in
the business. But if they are successful, there comes a time for all developing SMEs
when they need new investment to expand or innovate further. That is where they often
run into problems, because they find it much harder than larger businesses to obtain
financing from banks, capital markets or other suppliers of credit.
This financing gap is all the more important in a fast-changing knowledge-based
economy because of the speed of innovation (Groke and Kreidle 1997). Innovative
SMEs with high growth potential, many of them in high-technology sectors, have played
a pivotal role in raising productivity and maintaining competitiveness in recent years. But
innovative products and services, however great their potential, need investment to
flourish (Carrier, 1999). If SMEs cannot find the financing they need, brilliant ideas may
fall by the wayside and this represents a loss in potential growth for the economy.
The bagless vacuum cleaner and the wind-up radio or flashlight which need no
batteries are now common household items, but nearly failed to see the light of day
because their inventors could not find financial backing to transform their ideas into
production. Already, differences are emerging between countries in terms of how easy it

is for innovative SMEs to grow and develop. This sector has been very dynamic in the
United States and a few other countries, but has lagged in many continental European
countries and Japan, to the detriment of job creation and competitiveness (Gomez-Mejia,
1998).

Improving access to finance of small and medium enterprises is crucial in fostering

entrepreneurship, competition, innovation and growth in Kenya. Access to sufficient and
adequate capital to grow and further develop their activities is a difficulty faced by many
Kenyan SMEs. This situation is compounded by the difficulties in accessing finance as
SME financing is considered by many financial providers as a high risk activity that
generates high transaction costs and/or low returns on investment. Moreover SMEs need
is to meet the challenge of adapting to the changing financial environment and the
increasing complexity and extent of financial acquisition (Gomez-Mejia, 1998).

1.2 Statement of the Problem

The practice of marketing has proved to be very important for all business performance in
all sectors of the economy. It has thus been the subject of much discussion over the past
decade since there has been a move from traditional marketing to customer orientation
where the customer is the king. In the todays volatile environment, organizations will
not survive in this changing environment unless they focused their attention to creating
and maintaining a formidable relationship with their customers. Existing literature
proposes that there is a positive relationship between marketing strategies and
organizational performance.

Numerous studies have shown positive links between loyalty and firm profitability. For
example, the work of Reichheld (1996) and Gronroos (2000) among others have been
significant in establishing the importance of marketing strategies and business
performance. Over the past years the interest in retaining customers has increased
considerably with marketing attention shifting gradually but definitely from mutually
independent transactions to loyalty-based repeat purchases (Berry, 1995 and Winer,
2001). Despite the existence of a large and growing body of literature on marketing

strategies in general, there is still some inadequacy surrounding the practice and how it
influences performance particularly in the banking sector. Although these studies
employed diverse methodologies and measures, they shared a common interest in
exploring the financial performance consequences of the basic tools, techniques, and
activities of formal strategic marketing for example, systematic intelligence- gathering,
market research, SWOT analysis, portfolio analysis, mathematical and computer model
of formal planning meetings and written long- range plans. The studies did not generally
examine the relationship between performance and the extent of formal planning;
variously referred to as comprehensiveness, rationality, formality, or simply, strategic
marketing. It is with this in mind that this study sets out to establish the effects of
marketing strategies on the performance of commercial banks in Kenya.

1.3 Purpose of the Study

The purpose of this study was to determine the effects of marketing strategies on the
performance of commercial banks in Kenya, a caser study of co-operative bank-Narok
branch.

1.4 Objectives of the Study

i. To find out the availability of marketing strategies in co-operative bank-Narok branch.
ii. To determine whether marketing strategies improves the co-operative banks
competition in the market.
iii. To find out whether marketing strategies improves the corporate image of cooperative bank-Narok branch.

1.5 Research Questions

i. Are there marketing strategies in co-operative bank, Narok branch?
ii. Does marketing strategies improve the co-operative banks competition in the market?
iii. Does marketing strategies improve the corporate image of co-operative bank-Narok
branch?

1.6 Significance of the Study

This study is of significance in that Executives in the banking industry will be able to use
the findings of this study in drafting strategies on how to operate in the Kenyan market. It
will help them understand better the problems facing SMEs as they relate with financial
institutions in their pursuit for survival. As a result, it is expected that the executives will
be able to formulate policies that are more benign to the sector. The investors in the SME
sector will use the information from this study to make decisions regarding investing in
the area. The findings of the research will expose some of the challenges they are likely
to encounter in their attempt to get banking services in Kenya.

As a result, the investors will be more endowed with knowledge and prepared to fit in the
prevailing banking environment. Scholars in the field of strategic management and
marketing will use the information to understand the state of the sector better. They will
also use the information as a reference point to research on the strategy formulation and
innovations in other industries. Finally, the Government will find the information useful
in diagnosing the problems affecting the SME sector and come up with regulative
solutions that would protect and help the SMEs thrive.

1.7 Limitations of the Study

The limitation of this study included non respondent from the target population for the
fear of exposing the bank. Many of the marketing officers and managers have worked in
the for less than two years so they did not have much information on the main
contribution of marketing strategies to the bank. There is a high turnover of marketing
officers and managers from one bank to other banks or to senior positions in the same
bank. Some managers and officers feared giving some information due to victimization
by the employer. The researcher however overcame this limitation by targeted the
marketing officers who have worked in the bank for at least 2 years either doing the same
job or doing a different job in the same bank. Also the research questions were structured
in a way that they will not expose the bank to competition or pose a danger of giving
confidential information.

1.8 Scope of the Study

The study was carried out in Narok town, Narok County, Kenya. It addressed the effects
of marketing strategies on the banking sector, co-operative bank, Narok branch. The
target population of the study was 67 employees of co-operative bank, Narok branch.
Data was collected using questionnaires.

CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
In this chapter, the researcher presents a review of literature, the theoretical framework
and the conceptual framework of the study.

2.2 Review of Related Literature

Marketing is defined as the process of determining the needs and wants of consumers and
being able to deliver products that satisfy those needs and wants. Marketing includes all
of the activities necessary to move a product from the producer to the consumer.
Marketing starts with market research, a learning process in which marketers get to know
everything they can about the needs and wants of consumers, and it ends when somebody
buys something. Many companies feel that services provided to customers after the
purchase also are an important part of marketing (Lovelock et al, 1996).

With the rapid changes surrounding organizations, the traditional marketing mix of the 4
Ps has been criticized for being too myopic in this current market situation. The
traditional marketing mix has also been disparaged for being too product-focused and for
taking an overly inward-looking strategy with regards to the organizations resources and
capabilities in production matters. The service environment has evolved due to the
following factors: changing patterns of government regulation, technological innovations,
the service quality movement, pressures to improve productivity, relaxation of previous
professional association restrictions on marketing, internationalization and globalization
etc (Lovelock et al, 1996).

This has caused a lot of dynamism in the service sector: competition has increased and
consumers are exposed to more information. To survive, service companies have to
differentiate themselves mainly by being as close to the customer as possible; this has led
to an over emphasis in the area of service marketing to enable marketers in developing
service strategies to respond to the market. Service marketing concepts and strategies
have developed in response to the tremendous growth of service industries resulting in

10

their increased importance to world economies (Zeithaml and Bitner, 1996). This is in
relation to employment, gross domestic product and business opportunities.

As technological advancement has equalized most production processes, one of the few
remaining strategies that can set one company apart from others is customer service.
Chandler (1992) stated that strategy determines the basic long-term goals of an
enterprise, and the adoption of courses of action (strategy as plan of action) and the
allocation of resources necessary for carrying out these goals (strategy as re-source
allocation). While Porter (1996) viewed strategy as the process of creating a unique and
valuable position with means of a set of activities in a way that creates synergistic pursuit
of the objectives of a firm.

According to Mintzberg (1990), the term strategy is used to mean a plan, a ploy, a
pattern, a position or a perspective the 5 Ps. Mintzberg defines strategy in terms of a
process. Since strategy has almost inevitably been conceived in terms of what the leaders
of an organization plan to do in the future, strategy formation has, not surprisingly,
tended to be treated as an analytic process for establishing long-range goals and action
plans for an organization, that is, as one of formulation followed by implementation.
Strategy can be viewed as building defenses against the competitive forces, or as finding
positions in the industry which forces are weakest (Pearce & Robinson, 1997).

Strategy is all about competitions and trying to gain competitive advantage. Batemand
(1990) suggested that strategy is a pattern of actions and resource allocations designed to
achieve the goals of the organization. The strategy that an organization implements is an
attempt to match the skills and resources of the organization to the opportunities found in
the External Environment. Jauch (1998) argued that decisions and actions taken will lead
to the development of an effective strategy which will help to achieve organizational
objectives Porter (1990). Banking sector reforms and consolidation all over the world are
predicted upon the need for repositioning of the existing state of affairs in the sector in
order to attain an effective and efficient status.

11

This is more so in the developing nations like Kenya where the banking sector has not
been able to effectively provide the needed funds and services for the development of the
real sector as expected. Hence, banking reforms become inevitable in the light of the
global dynamic exigencies and emerging landscape. Consequently, the banking sector, as
an important sector in the financial landscape needs to be reformed in order to enhance its
competitiveness and capacity to play a fundamental role of financing investments. The
early strategic marketing performance studies date from the time of rapid expansion of
formal strategic marketing in the 1960s (Henry 1999).

Although same studies employed diverse methodologies and measures, they shared a
common interest in exploring the financial performance consequences of the basic tools,
techniques, and activities of formal strategic marketing for example, systematic
intelligence-

gathering,

market

research,

SWOT

analysis,

portfolio

analysis,

mathematical and computer model of formal planning meetings and written long- range
plans. The studies did not generally examine the relationship between performance and
the extent of formal planning; variously referred to as comprehensiveness, rationality,
formality, or simply, strategic marketing (Henry 1999).

However, strategic marketing is a continuous and systematic process where people make
decisions about intended future outcomes, how these outcomes are to be achieved and
how success is to be measured and evaluated. Strategic marketing will help organizations
capitalize on their strengths, overcome their weaknesses, take advantage of opportunities
and defend themselves against threats. According to Allison and Kaye, (2005), strategic
marketing is making choices. It is a process designed to support leaders in being
intentional about their goals and methods. Differently expressed, strategic marketing is a
marketing management tool and like any tool, it is used for one purpose only namely to
help an organization to do its job better. Hence, strategic marketing is a systematic
process by which an organization agrees on and builds commitment among key
stakeholders to priorities that are essential to it and are responsive to the environment.

12

According to Bryson, (2004) strategic marketing is a disciplined effort to produce

fundamental decisions and actions that shape and guide what an organization is, what it
does, and why it does it, with a focus on the future. (Woodward 2004) argues that
strategic marketing is a process by which one can envision the future and develop the
necessary procedures and operations to influence and achieve the future. Organizations
can develop a planning process based on six simple questions. Realistic answers to these
can help to guide the owners and managers of any business or organization toward a
successful future.

2.2.1 Availability of Marketing Strategies in Commercial Banks

Strategic marketing, according to Berry (1997), is the process of determining; what your
organization intends to accomplish and how you will direct the organization and its
resources towards attaining the goals set over the coming months and years. In other
words, strategic marketing is a tool for finding the best future for your organization and
the best path to reach the desired destination. (Mintzberg 1994) is of the opinion that
strategic marketing can be defined as the process of using systematic criteria and rigorous
investigation to formulate, implement, and control strategy, and formally document
organizational expectations.
Strategic marketing as the systematic process of determining the firms goals and
objectives for at least three years into the future and developing the strategies that will
guide the acquisition and use of resources to achieve the set objectives. Steiner, (1997),
sees strategic marketing as the process of determining the mission, major objectives,
strategies and policies that govern the acquisition and allocation of resources to achieve
organizational aims. Strategic marketing has come to be inextricably interwoven into the
entire fabric of management it is not seen as separate and distinct from the process of
management (Kudler 1996).
Bradford and Duncan (2000), argues that strategic marketing is an organizations process
of defining its strategy and making decisions on allocating its resources to pursue this
strategy, including its capital and people. The outcome is normally a strategic plan which

13

is used as a guide to define functional and divisional plans, technology, and marketing
among others. Hunsaker, (2001) observes that strategic plans apply to the entire
organization. They establish the organizations overall objectives and seek to position the
organization in terms of its environment. Strategic marketing is done by top level
managers to determine the long- term focus and directions of the entire organization.

All short- term and specific plans for lower- level managers are linked and coordinated so
that they may contribute to the organizations strategic plan. (Paley 2004) sees strategic
marketing as representing the managerial process for developing and maintaining a
strategic fit between the organizations and changing market opportunities. It relies on the
development of the following sections; a strategic direction or mission statement,
objectives and goals, growth strategies, a business portfolio. Gup and Whitehead, (2000),
on other part, see strategic marketing as the formulation of a unified, comprehensive and
integrated plan aimed at relating the strategic advantages of the firm to the challenges of
the environment.

It is concerned with appraising the environment in relation to the company, identifying

the strategies to obtain sanction for one of the alternatives to be interpreted and
communicated in an operationally useful manner. Anderson, (2004), states that strategic
marketing is the logical and systematic process by which top management reaches a
consensus on the major strategic direction of the company. He enumerate major
characteristics of strategic marketing as a process of deciding in advance what will be
done, when and by who, and how it will be done, the future impact of current decisions,
an integral part of the management process, and a structure of plans integrating major
objectives, strategies, policies and functions of the organization.

Marketing management horizons vary from two to fifteen years depending on the nature
of the industry and individual business characteristics. Anderson, (2004) presents eight
major steps that are commonly recognized in the strategic marketing process as;
determination of the long-range direction of the business, defining the companys major
areas of business, key market segments and key resources, evaluation of the companys

14

position relative to that of its competitors in the industry, assessment of the companys
capabilities, strengths and weaknesses, identification of objectives and goals having
regard to available opportunities and existing threats (Anderson, 2004).
Determination of the long-range direction of the business, Defining the companys major
areas of business, key market segments and key resources Evaluation of the companys
position relative to that of its competitors in the industry, Assessment of the companys
capabilities, strengths and weaknesses, identification of objectives and goals having
regard to available opportunities and existing threats, formulation of strategies to achieve
the desired objectives and goals, development of a monitoring system to ensure the
implementation of the plan. Finally, he states that for strategic marketing to succeed an
appropriate climate must exist, top management must be committed and involved, and
there must be a disciplined but flexible planning approach (Anderson, 2004).

Paley, (2004) further observes that line personnel must participate, performance standards
for monitoring and evaluation must be established and planning must be integrated with
decision making. Advocating the adoption of strategic marketing in solving
organizations problems, remarks that the organization which does not plan for its future
does not deserve any future. Citing the work of (Ansoff 1998), Paley, (2004) contrasts
strategic marketing with long- range planning and concludes that both concepts are not
synonymous. He argues that long- range planning is based upon the extrapolation of past
situations, a questionable premise on the ground that present conditions are not the same
as those of the past.

Ulrich & Barney, (2004), further criticize the traditional extrapolation techniques of long
range planning and suggest the use of scenario analysis which encourages broad and
creative thinking about the future. The authors cite the work of Wing, (1997) which
contest that traditional forecasting techniques are based on the assumption that
tomorrows world will be much like todays. Commenting on New Age Strategic
marketing Ginsberg, (1997) explains that the present complex environment is
characterized by side effects, time delays, non-linearity and multiple feedback processes.

15

Ansoff, (2004), reports that newly invented strategic marketing displaced long range
planning because of the growing discontinuity of the environment. He gives the
following reasons for this replacement: that the firms environment has its own
turbulence level and that there are specific systems appropriate for given turbulence
levels. He states further that each firm therefore needs to diagnose its own future
turbulence level and the appropriate systems chosen to explain that under an environment
of slow change, without urgent needs to anticipate, familiar pattern can be extrapolated.

The type of environment was reported to have characterized the pre-1950 year of long
range or corporate planning after which the 1980s changes became progressively
discontinuous from the past and less predictable. The author explains the difference
between long range planning and strategic marketing as essentially one of more of
perception of the future. With long range planning, the future is expected to be
predictable through extrapolation of historical events which also assumes that the future
would be better than the past. Strategic marketing on the other hand does not necessarily
expect an improved future or extrapolatable past (Ansoff, 2004).

Hinterhuber, (1992), argued that a manager is not necessarily a strategist and that a
managers vision is also not an entrepreneurial vision. He explains that while the manager
would rather have an orientation point of guiding a company in a specific direction, an
entrepreneur having strategic competence should state his vision clearly, aggressively and
in an optimistic manner. A strategist and not just a manager therefore, should have an
entrepreneurial vision, corporate philosophy, competitive advantages, and should involve
line managers in strategic marketing. Line managers are the ones to implement strategies
who should therefore be involved early in the strategic marketing process.

Realizing however that strategic marketing process does not specify how plans should be
translated into action, the issue of strategic marketing implementation led to the evolution
of strategic marketing management. The Nigerian experience indicates that banking
sector reforms are propelled by the need to deepen the financial sector and reposition it
for growth; to become integrated into the global financial architecture; and evolve a

16

banking sector that is consistent with regional integration requirements and international
best practices. Bank consolidation is viewed as the reduction in the number of banks and
other deposit-taking institutions with a simultaneous increase in size and concentration of
the consolidated entities in the sector (Gianni 2003).

It is mostly motivated by technological innovations, deregulation of financial services,

enhancing intermediation and increased emphasis on shareholder value, privatization and
international competition (Gianni 2003). The nexus between consolidation and financial
sector stability and growth is explained by two polar views. Proponents of consolidation
opine that increased size could potentially increase bank returns, through revenue and
cost efficiency gains. It may also, reduce industry risks through the elimination of weak
banks and create better diversification opportunities (Berger, 2000).
On the other hand, the opponents argue that consolidation could increase banks
propensity toward risk taking through increases in leverage and off balance sheet
operations. In addition, scale economies are not unlimited as larger entities are usually
more complex and costly to manage. Banking reforms involve several elements that are
unique to each country based on historical, economic and institutional imperatives. For
example, in the reforms in the banking sector proceeded against the backdrop of banking
crisis due to highly undercapitalization of state owned banks; weakness in the regulatory
and supervisory framework; weak management practices; and the tolerance of
deficiencies in the corporate governance behavior of banks (Gyargy Szapry, 2001).

In the Yugoslav economy, banking industry restructuring was motivated by the need to
establish a healthy banking sector that will carry out its financial intermediation role at a
minimal cost; effectively provide services consistent with world standards and which will
involve foreign financial institutions; and banks privatization as the ultimate goal. The
central focus was to shore up the capital base of banks consolidated through mergers and
takeovers of local banks and selection of strategic investors for additional capitalization.
Specifically, foreign banks permeated the industry exclusively by providing additional
capitalization through investment in the existing infrastructure, particularly new banking

17

products and operating technologies and buying shares of the existing banks (Gyargy
Szapry, 2001).

The banking sector reforms and consolidation in Japan involved the reform of the
regulatory and supervisory framework, the safety net arrangements, as well as
mechanisms to speed up attempts at resolution of banks non-performing loans. From the
above, it is obvious that the fundamental objective of banks consolidation is the
repositioning of the banking industry to attain an effective and efficient status that will
promote economic development. Consequently, consolidation has increased the level of
competition in the industry and this in turn has increased the marketing activities in the
Nigerian banking industry as well as other nations of the world (Gyargy Szapry, 2001).
2.2.2 Marketing Strategies and the Banks Competition in the Market
Commercial banks face many challenges in todays dynamic marketplace. In a global
economy that has become increasingly competitive, there is need for efficient
development of products that can quickly satisfy a more demanding customer base and
build long-term customer trust. It must enhance risk management and address a broad
range of service breakdowns and regulatory changes that require reporting with greater
standardization and transparency. It must optimize both internal and external innovation,
while seeking operational excellence at all levels (Parasuraman, (1985).

Meeting these challenges requires new business and marketing strategies that boost
revenues, improve operational efficiency, cut costs, and enhance the overall management
of business. Today, banks are looking beyond traditional practices to new tactics and
tools that analysts and thought leaders have identified as the best for the industry. Service
breakdown manifests itself by way of delayed approval of loans. SME customers are deal
seekers and they always look for a financial institution that can serve them within the
minimum time possible (Parasuraman, 1985).

In Kenyan commercial banks, however, the approval of business loans takes weeks or
even months depending on the availability of the required documentation. This delay is

18

costly especially when a firm has a limited time frame to demonstrate that it can raise the
required capital to carry out a particular task. Also, intrusive documentation is of concern.
At the point of application for banking services, some banks are known to be too
demanding on documentation. Customers feel that the documentation required (such as
tax compliance certificate) before the approval of the much needed loans is an intrusion
into their financial privacy (Gyargy Szapry, 2001).

Discouraged by this exercise some customers have opted for other informal financial
institutions that do not require too much detail. Flexibility is also another matter of
service to SMEs. Customers have become demanding and the loyalties are diffused if
they think a bank is not serving them well. To them there are multiple choices; the wallet
share is reduced per bank with demand on flexibility and customization. Given the
relatively low switching costs; customer retention calls for customized service and hassle
free, flawless service delivery will influence their choice (Gyargy Szapry, 2001).

Having a good relationship with customers in a service industry is the most important
thing. Customers want to have a sense of belonging that will keep them from seeking
alternatives. Premier banking which in most cases is associated with the wealthy business
class is founded on the basis of relationship management. Banks however need to take a
step further and relate more with its SME customers to avoid giving a reason to go for
alternative service providers. Banks should improve their relationship management with
businesses and their advisors. Restoring trust between banks and their clients will require
a commitment to transparency and consistency on the part of lending institutions (Gyargy
Szapry, 2001).
It is clear that some banks have re-appraised their risk and reward preferences for SMEs.
Banks need to address the consequential fear of approach held by businesses by clearly
explaining how the changed economic environment has affected banks business lending
policies. In particular, they should make a sustained effort to better communicate with
businesses at early stages in the lending application process to improve understanding of
the following: How long credit applications are likely to take; what restrictions on

19

decision-making are imposed on relationship managers and branch managers by head

office and whether specific decisions will be transferred to higher levels and how many
credit committees will examine the application; the full extent of non-price lending
conditions; the enforcement regime for covenant breaches (Kotler, 1999).

Marketing the quality of service is central to the success and growth of business.
Developing the service quality model defined service as the gap between service and
perceived performance. A service firm may win by delivering consistently higher quality
service than competitors and exceeding customers expectations (Kotler, 1999). After
receiving the service, customers compare the perceived service and expected service
Researches have found that consumers consider five dimensions in their assessment of
service quality as reliability, responsiveness, assurance, empathy and tangibles (Kotler,
1999).

Reliability is the ability to perform the promised service dependably and accurately while
responsiveness is the willingness to help customers and provide prompt service.
Assurance, on the other hand, is the employees knowledge and courtesy and their ability
to inspire trust and confidence. Empathy is caring, individualized attention given the
customers and tangibles are appearance of physical facilities, equipment, personnel and
written materials. The five dimensions represent how consumers organize information
about service quality in their minds and were found relevant for banking among other
industries. There are numerous strategies a service marketer can use to overcome
challenges (Kotler, 1999).

Some of the strategies include; Consumer research provides the basis for the development
of new service concepts to meet targeted consumer needs (Lovelock et al, 1996). Finding
out what customers expect is essential to providing service quality, and marketing
research the key to understanding customer expectations and perceptions of service
(Kotler 1999). Firms also develop strategies to enable them seize strategic initiatives and
maintain a competitive edge in the market. Service breakdown manifests itself by way of
delayed loans. A service organization cannot serve an entire market for a particular

20

service as customer needs and wants are diverse. It must identify segments of a market
that it can serve most effectively. A market segments consists of a large identifiable
group within a market with similar wants, purchasing power, among other attributes
(Kotler, 1999).

Once a company has identified a specific market segment to serve, the next phase is to
position the service in the market place. How the service is designed (service blueprinting
and physical evidence) will impact the image of the service in the consumers mind
(Ziethmal et al, 1996). A service offerings position is the way it is perceived by
consumers, particularly in relation to competing offerings. To develop effective
positioning strategies, managers need insights into how the various attributes of a service
are valued by the current and prospective customers within that segment.
An organizations service offering is successfully positioned if it has established and
maintains a distinctive place for itself in the consumers mind relative to competing
organizations offerings. If a service is successfully positioned, the mention of the service
will conjure up in the customers mind an image that is distinct from images of similar
service offerings (Ziethaml et al, 1996). Relationship marketing is philosophy of doing
business that focuses on keeping and improving current customers rather than on
acquiring new ones. Service companies must see customers as their long term partners
and need to make a commitment in maintaining the relationship through quality, service
and innovation (Lovelock et al, 1996).

Once managers of service business accurately understand what customers expect, the
second critical challenge is to set service quality standards and goals for the
organizations. Excellent service businesses realize the crucial role that the setting and
review of service standards can play in driving quality performance. They understand the
benefits brought about by the business, its customers and the individuals involved in
service delivery, the pay-off in terms of customer loyalty as well as reduce the cost of
correcting errors and handling complaints. The setting of quality service standards is the
beginning of a cycle of continuous improvements (Lovelock et al, 1996).

21

With people as part of the service, no service business can afford to divorce its customer
contact employees from the firms marketing strategy (Lovelock et al, 1996). The
primary responsibility for an organizations success often rests with relatively junior staff
in such customer contact positions as a bank clerk, security guard etc. These individuals,
who are often young and inexperienced, need both technical and interpersonal skill to
succeed. Not only must they do their job quickly and accurately, but to do so while
relating well to customers (Lovelock et al, 1996).

Because contact employees represent the organization and can directly influence
customer satisfaction, they perform the role of marketers (Ziethaml et al, 1996).
Therefore careful recruitment, training and ongoing mentoring of employees can
contribute to improvements in both productivity and service quality. Developing a
communication strategy for intangible services is quite different from advertising and
promoting psychical goods. The company should recognize that service is a performance
rather than an object; advertising should not only encourage customers to buy the service,
but should also target employees as a second audience, motivating them to deliver highquality service.

2.2.3 Marketing Strategies and the Corporate Image of Commercial Banks

Various models been developed empirically to analyze the impact of marketing strategies
on corporate performance. Some of these empirical studies include; this model recognizes
the importance of a firms internal organizational resources as determinants of the firms
strategy and performance (Grant 1991). Grant, (1991) defines the term internal
organizational resources as all assets, capabilities, organizational processes, firm
attributes, information, knowledge, that are controlled by a firm and that enable it to
envision and implement strategies to improve its efficiency and effectiveness.
Although the RBV recognizes that a firms physical resources are important determinants
of performance, it places primary emphasis on the intangible skills and organizational
resources of the firm (Collis, 1991). Some intangibles resources of the firm are the
market-assets such as customer satisfaction and brand equity. The Dynamic Capabilities

22

emphasizes on how combinations of resources and competences (Teece et al., 1997) can
be developed, deployed and protected. The factors that determine the essence of a firms
dynamic capabilities are the organizational processes where capabilities are embedded,
the positions the firms have gained (e.g. assets endowment) and the evolutionary paths
adopted and inherited.

Based on this perspective, the marketing factors that determine the competitive advantage
are marketing efficiency resulting from the marketing organizational process and the
endowments of market assets that has generated such as customer satisfaction and brand
equity, i.e. marketing positions. In the context of global competition, Dynamic
capabilities theory suggest that historical evolution of a firm (accumulation of different
physical assets and acquisition of different intangible organizational assets through tacit
learning) constrains its strategic choice and so will affect market outcomes (Collis, 1991).

According to (Douglas and Craig, 1999), the development of a Marketing Strategy is

carried out during the stage of global rationalization. It means that the firm has had to
take the step of initial foreign market entry and expansion of national markets during its
process of internationalization. Consequently, in the two previous stages, the firm learned
and accumulated not only different physical assets but also different intangible
organizational assets; likewise, it faced and took risks in different and complex market
contexts. This process of learning affected its performance. The need for measuring
marketing impact is intensified as firms feel increasing pressure to justify their marketing
expenditures (Gruca and Rego 2005).

Accordingly, marketing practitioners and scholars are under increased pressure to be

more accountable for showing how marketing activities link to shareholder value. It is
important to know that marketing actions, such as packaging, brand name, density of the
distribution channel, advertising, permanent exhibitions, sponsoring, press bulletins,
among others (Van, 1992) can help build long-term assets or positions as brand equity
and customer satisfaction, (Srivastava, 1998). These assets can be leveraged to deliver
short-term profitability and shareholder value.

23

The other way by which research in Marketing has faced Marketing performance is
related to efficiency. Efficiency is the comparison among firms of the ratio of outcomes
over the inputs required to achieve them. On the other hand, Sheth, (2002) define
marketing efficiency as the ratio of marketing output over input. Getting loyal customers
at low marketing costs, on the other hand, (Rust, 2004) use the term marketing
productivity to refer to how marketing activities are linked to short-term and long-term
profits.

2.3 Review of Analytical Literature

Marketing as a distinct discipline was borne out of economics around the beginning of
this century and has been developing over the year. The primary focus was on
transactions and exchanges. However, marketing as a field of study and practice is still in
the process of reconceptualization in its orientation. Axioms of transactional marketing
are the belief that competition and self-interest are the drivers of value creation and
maintaining an arms length relationship is vital for marketing efficiency. Development
of relationship marketing is a significant shift in the axioms of marketing: competition
and conflict to mutual cooperation, and choice independence to mutual interdependence
(Sheth and Parvatiyar, 2000).

There has been a shift from transactions to relationships in marketing orientation. (Kotler,
1990). The emphasis on relationships as opposed to transaction based exchanges has
redefined the domain of marketing. Every marketing transaction involves a relationship
between the buyer and seller in a transaction-based situation, the relationship may be
quite short in duration and narrow in scope, on the other hand, the customer-seller bonds
developed in a relationship marketing situation last longer and cover a much broader
scope than those developed in transaction marketing. Customer contacts are more
frequent, a company emphasis on customer service contributes to consumer satisfaction
in relationship marketing, (Armstrong and Kotler, 2007).

Brodie, (1997) suggested that marketing strategies be applied at four levels. At the first
level, marketing strategies is a technology-based tool of database marketing. At a second

24

level, relationship marketing focuses on relationships between businesses and its

customers with an emphasis of customer retention. At a third level, relationship
marketing is a form of customer partnering with buyers cooperatively involved in the
design of the product or service offering. At a fourth and broadest level, relationship
marketing was seen as incorporating everything from databases to personalized services,
loyalty programs, brand loyalty, internal marketing, personal/social relationships and
strategic alliances.

Marketing strategies orientation involves a company integrates customer service and

quality with marketing, the result is a relationship marketing orientation. Relationship
marketing creates a new level of interaction between buyers and sellers. Rather than
focusing exclusively on attracting new customers, marketers have discovered that it pays
to retain current customers as the cost of retention is lower compared to the cost of
acquiring a new customers. It has been established that strong economic, technical and
social ties among the stakeholders parties reduce transactions costs and increase
exchange efficiencies. These are the benefit of relationship marketing.

Jobber, (2006), views marketing strategy as the process of creating, developing and
enhancing relationship with customers and other stakeholders. Relationship marketing
refers to the development, growth, maintenance of long- term, cost- effective exchange
relationship with individual customers, suppliers, employees, and other partner for
mutual benefit (Boone and Kurtz, 2007). Developing excellent service quality creates the
opportunity to build an ongoing relationship with customers. The idea of relationship can
apply to many industries. It is particularly important in service industry of which banking
is central because of direct contact between the banks and customers.

Marketing strategies are always concerned about the direct marketing otherwise, known
as interactive marketing, activities and managing these dimensions with the aim of
establishing, developing and maintaining co-operative customer relationships for mutual
benefit

(Boone and Kurtz, 2007). Direct

marketing refers to

buyers-seller

communications in which the consumer controls the amount and type of information

25

received from a marketer. Interactive techniques have been used for more than a decade;
point-of-sales brochures and coupon dispensers are a simple form of interactive
advertising.

Today, however, the term also includes two-way electronic communication using a
variety of media such as the internet, CD-ROMS, and virtual reality kiosks (Boone and
Kurtz, 2007). Relationship quality is all about customer satisfaction, trust and
commitment. It can be regarded as a variable composed of several key components
reflecting the overall nature of relationships between companies and costumers. There
has not been a common consensus regarding the conceptualization of relationship quality
but there has been considerable speculation as to the central components of this all
important variable in measuring relational quality.

Components of relationship quality proposed in past research include cooperative norms

(Siguaw 1999), opportunism, customer orientation, seller expertise and conflict,
willingness to invest, and expectation to continue. From the previous studies, there is
general consensus that customer satisfaction with the service providers performance,
trust in the service provider, and commitment to the relationship with the service firm are
key components of relationship quality. Strategic marketing should enhance customers'
perceived benefits such as perceived relationship improvement and perceived economic
benefits of engaging in relationships (O'Malley and Tynan, 2000).

The Relational Benefits approach assumes that both parties in a relationship must benefit
for it to continue in the long run. For the customer, these benefits can be focused on
either the core service or on the relationship itself (Gremler 2000). Benefits customers are
likely to receive as a result of having cultivated a long-term relationship with a service
provider are referred to as relational benefits. These relational benefits are benefits that
exist above and beyond the core service provided. According to earlier researchers,
relational benefits include confidence benefits, social benefits and special treatment
benefits (Bitner, 1998).

26

According to Bitner, (1998), confidence benefits refer to perceptions of reduced anxiety

and comfort in knowing what to expect in the service encounter, social benefits pertain to
the emotional part of the relationship and are characterized by personal recognition of
customers by employees, the customers own familiarity with employees, and the
creation of friendships between customers and employees; and special treatment benefits
take the form of relational consumers receiving price breaks, faster service, or
individualized additional services.
This has to do with organization employees job satisfaction (Chi 2005), work motivation
and organizational commitment. Few studies have explicitly examined customer-related
outcome of internal marketing, such as service quality. Earlier research on internal
marketing concurs on three important themes. First, it is crucial that employees are wellattuned to the mission, goals, strategies, and systems of the company. Second, internal
marketing builds on the formation of a corporate identity or collective mind (Ahmed and
Rafiq 2002). Third, internal marketing must go beyond short-term marketing training
programs and evolve into a management philosophy that requires multilevel management
to continuously encourage and enhance employees understanding of their roles and
organizations.
All marketing activities are ultimately evaluated on the basis of the companys overall
performance. However, as a firms profitability is influenced by a number of variables
largely independent of relationship marketing activities that may include leadership style,
capital base and technological know-how, it seems appropriate to conceptualize
relationship marketing outcomes on a more concrete level when investigating possible
antecedents (Ismail, 2009). Performance indicator such as target goals, sales goals,
customer

retention

(customer

loyalty

and

positive

customer

word-of-mouth

communication), better reputation in quality product and new product development and
employee satisfaction measured by employee turnover rate are found appropriate in this
context.

27

2.4 Summary of the Review

Marketing is the process of determining the needs and wants of consumers and being able
to deliver products that satisfy those needs and wants. Marketing includes all of the
activities necessary to move a product from the producer to the consumer. The
framework suggested that marketing strategies in banking industry directly affect its
performance in terms of client numbers. Therefore arising from the gaps identified in the
literature review, the study therefore sought to bridge the gap by investigating the effects
of marketing strategies on the performance of co-operative bank Narok branch.

2.5 Conceptual Framework of the Study

Conceptual framework is a diagrammatic presentation of a theory and that it is presented
as a model when research variables and the relationship between them are translated into
a visual picture to illustrate the interconnections between the independent, intervening
and dependent variables. The conceptual framework was therefore a scheme of concepts
which the study used in order to achieve the set of objectives. In the conceptual
framework depicted in figure 2.1, Marketing hypothesizes to influence performance.

Independent Variables

Dependent Variable
Availability of marketing
Strategies
Increased Competition in
the Market

Affects

Improvement of
Corporate Image
Figure 2.1 Conceptual Framework
Source: Survey, (2013)

28

Performance of the
Bank

2.5.1 Availability of Marketing Strategies

Marketing the quality of service is central to the success and growth of business.
Developing the service quality model defined service as the gap between service and
perceived performance. The company should recognize that service is a performance
rather than an object; advertising should not only encourage customers to buy the service,
but should also target employees as a second audience, motivating them to deliver highquality service.
2.5.2 Increase in Competition
There is a connection between banks competition brought about by banks reforms and
marketing activities. 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.
2.5.3 Increase in Revenue Collections
Banks are encouraged to be more customers-focused and embrace marketing strategies
rather than transaction marketing. This will enable them to gain customers loyalty and
maintain a long term relationship with customers. The management of the banking
institutions should be transparent and follow the laid down rules so as to create and
sustain public confidence. Marketing the quality of service is central to the success and
growth of business.

2.5.4 Improvement of Corporate Image

Strategic marketing should enhance customers' perceived benefits such as perceived
relationship improvement and perceived economic benefits of engaging in relationships.
Developing the service quality model defined service as the gap between service and
perceived performance. Various models been developed empirically to analyze the
impact of marketing strategies on corporate performance.

29

CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter describes the research design used for the study. It includes the research
design, target population, sample size, sampling procedure and instrumentation, data
collection and data analysis.

3.2 Research Design

Research design is the outline that is used to generate answers to a research problem. This
study employed a descriptive survey research design. Descriptive survey research designs
are used in preliminary and exploratory studies to allow researchers to gather
information, summarize, present and interpret for the purpose of clarification (Orodho,
2002). Mugenda and Mugenda (2003) on the other hand give the purpose of descriptive
research as determining and reporting the way things are. Descriptive survey research is
intended to produce statistical information about aspects of education that interest policy
makers and educators. The study fitted within the provisions of descriptive survey
research design because the researcher collected data and reported the way things are
without manipulating any variable.

3.3 Target Population of the Study

Target population is defined as all the members of a real or hypothetical set of people,
events or objects to which a researcher wishes to generalize the results of the research
study (Orodho, 2002). The population under study comprised of all the 67 employees of
Co-operative bank-Narok branch.

3.4 Sample Size and Sampling Procedure

Sampling means selecting a given number of subjects from a defined population as
representative of that population. Any statements made about the sample should also be
true of the population (Orodho, 2002). It is however agreed that the larger the sample the
smaller the sampling error (Gay, 1992). From the 67 members of the target population,
the researcher used stratified random sampling technique to select 40 respondents.

30

3.5 Data Collection Instruments and Procedure

The main tool for data collection was a questionnaire. The questionnaire was used for
data collection because it offers considerable advantages in the administration. It also
presents an even stimulus potentially to large numbers of people simultaneously and
provides the investigation with an easy accumulation of data (Gay, 1992). Questionnaires
give respondents freedom to express their views or opinion and also to make suggestions.
It is also anonymous. Anonymity helps to produce more candid answers than is possible
in an interview. Before the actual data was collected, the researcher conducted a pilot
study in the same bank among 4 employees who were not included in the final study
population. These employees were randomly selected for the pilot study.

The purpose of the pilot study was to enable the researcher to ascertain the reliability and
validity of the instruments, and to familiarize himself with the administration of the
questionnaires therefore improve the instruments and procedures. Mugenda and Mugenda
(2003) define reliability as a measure of the degree to which a research instrument yields
consistent results or data after repeated trial. The pilot study enabled the researcher to
assess the clarity of the questionnaire items so that those items found to be inadequate
were modified to improve the quality of the research instrument thus increasing its
reliability.

Validity is defined as the accuracy and meaningfulness of inferences, which are based on
the research results (Mugenda & Mugenda, 1999). In other words, validity is the degree
to which results obtained from the analysis of the data actually represents the phenomena
under study. Validity is the degree to which a test measures what it purports to measure.
All assessments of validity are subjective opinions based on the judgment of the
researcher. The pilot study helped to improve face validity of the instruments as content
validity of an instrument is improved through expert judgment. As such, the researcher
sought assistance of his supervisor, who, as an expert in research, helped improve content
validity of the instrument.

31

A research permit was obtained from the Kenya Institute of Management (KIM).
Thereafter the branch manager of Co-Operative-Narok was contacted before the start of
the study. The researcher personally administered the questionnaire to the respondents.
The selected respondents were visited in their offices and they administered
questionnaires. The respondents were assured that strict confidentiality would be
maintained in dealing with the responses. The respondents were given two days to fill in
the questionnaires after which the filled-in questionnaires were collected.
3.6 Data Analysis
After all data was collected, the researcher conducted data cleaning, which involved
identification of incomplete or inaccurate responses, which were corrected to improve the
quality of the responses. This research yielded both qualitative and quantitative data.
Qualitative data was analyzed qualitatively using content analysis based on analysis of
meanings and implications emanating from respondents information and documented
data. As observed by Gray (2004) qualitative data provides rich descriptions and
explanations that demonstrate the chronological flow of events as well as often leading to
chance findings. On the other hand, quantitative data was analyzed using various
statistics including measures of central tendency and dispersion. Simple descriptive
statistics were employed to analyze quantitative data. The statistics used include
frequency counts and percentages. The results of data analysis were presented using
frequency distribution tables, pie charts and bar graphs.

32

CHAPTER FOUR
4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION
4.1 Introduction
This chapter presents the findings which were realized from the analysis of the
questionnaire distributed to the respondents. As such, it presents the response rate of the
study, the statistical analysis and a discussion of the findings about the effects of
marketing on the performance of an enterprise.

4.2 Presentation and Findings

4.2.1 Response Rate
The researcher distributed 40 questionnaires to the employees of Co-Operative bank,
Narok branch who were the respondents. All of them were filled and returned. The
findings are shown in table 4.1.
Table 4.1 Response Rate
Category

Respondents

Percentage (%)

Response

40

100

Non-Response

Total

40

100

Source; Research, (2013)

From the findings in table 4.1, all the respondents 40(100%) respondents dully filled and
returned the questionnaires. From the analysis it was noted that all the respondents were
able to participate in the study.

4.2.2 Age Distribution of the Respondents

The study sought to establish how the respondents were distributed in terms of age. Age
as a variable was operationalized using age brackets. Age was deemed relevant to the
33

study to investigate the effects of marketing on the performance of an enterprise. This

was an important indicator of their qualification to be legally employed in terms of age as
well as skills required through educational training. The findings are shown in figure 4.1.

58%

30%

8%
4%
Below 20 years

21-30 years

31-40 years

Above 40 years

Figure 4.1 Distributions of the Respondents by Age

Source: Research, (2013)
Figure 4.1 shows the age brackets of the respondents. Based on the analysis those who
were below 20 years were 2(4%). Those who were between the ages of 21-30 years were
23 respondents representing (58%). Those who were between the ages brackets of 31-40
were 12(30%) while those who were above 40 years were 3 respondents representing
(8%). From the study it was noted that majority of the employees of Co-Operative bank,
Narok branch were between the age brackets of 21-40 years.

4.2.3 Level of Education

The study sought to find out the level of education qualifications of the respondents, this
was an important indicator of the skill pool available in Co-Operative bank, Narok
branch. The variable level of education was categorically operationalized using the
categories as secondary, college and university. The findings were as shown in figure 4.2.

34

Secondary, 13%
University, 42%
Secondary
College
University

College, 40%

Figure 4.2 Distribution of Participants Level of Education

Source, Research, (2013)
From figure 4.2, those who had attained secondary were 5(13%), college level were
16(40%) and those who were university graduates were 19 respondents representing
(47%). Effective marketing requires adequate skills especially for the management.
Marketing managers and bankers in general need various skills in order to cope with the
demands of their management and banking tasks. Such skills can be attained through
formal training, and it is encouraging to note that most employees of the bank had
Bachelor Degrees.

4.2.4 Work Experience of the Respondents

The study sought to find out the respondents work experiences in the banking industry.
Figure 4.3 shows the respondents work experience.

35

40%
33%

13%
4%
1 year

1-5 years

6-10 years

Above 10 years

Figure 4.3 Respondents Work Experience

Source: Research, (2013)
From the analysis in Figure 4.3, majority 20(50%) of the respondents had worked for 610 years, 13(33%) had worked for a period of more than 10 years, 5(13%) have an
experience of 1 year and 2(4%) had worked for a period of 1-5 years. Based on these
results, it can be noted that majority of the respondents had worked for a long time, so
they had enough experience to give relevant information, and were in a position to give
useful insights into the effects of marketing on the performance of the enterprise. They
were in a position to give useful information concerning the study.

4.2.5 Current Department

The study sought to find out the department where the respondents work. The findings
were as shown in figure 4.4.

36

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Marketing
Department

Finance
Department

HR Department

Figure 4.4 Current Occupations of the Respondents

Source, Research, (2013)
According to the findings in figure 4.4, majority, 18(45%) of the respondents are working
under the department of sales and marketing, 16(40%) are working under the department
of finance and 6(15%) are working in the department of HR. From the study it was noted
that majority of the respondents were working in the department of sales and marketing.

4.3 Availability of Marketing Strategies in Co-Operative Bank

4.3.1 Marketing
The study sought to find out from the respondents whether Co-Operative bank does
marketing. The findings were as shown in table 4.2.

37

Table 4.2 Marketing

Category

(F)

Yes

40

100

No

Total

40

100

Source: Research, (2013)

According to the findings in table 4.2, all the respondents 40(100%) indicated that CoOperative bank does marketing. The researcher noted that Co-Operative bank does
marketing in order to improve its general performance.

4.3.2 Rating of Marking

The study sought to know from the respondents the state of marketing of Co-Operative
bank. To determine this, the respondents were asked to rate the adequacy or inadequacy
of marketing in their bank, to which they responded as shown in Table 4.3
Table 4.3 Rating of Marketing
Category

Respondents

Percentage

High

18

44

Medium

18

44

Low

12

Total

40

100

Source; Research, (2013)

38

According to findings in table 4.3 above, 18 at (44%) indicated that the marketing is high,
18 at (44%) said it was medium while 4 at (12%) said it was low. It was noted that
marketing in Co-Operative bank is high.

4.3.3 Facilitation of Marketing

The study sought to know from the respondents, who are responsible in facilitating
marketing in Co-Operative bank. The findings were analyzed in table 4.4.
Table 4.4 Facilitation of Marketing
Personnel

Frequency (f)

(%)

Top Management

22

Operational Manager

22

56

Customer Care Manager

22

Total

40

100

Source: Research, (2013)

According to findings in table 4.4, majority of the respondents 22(56%) indicated
Operational Manager, 9(22%) indicated top management and another 9(22%) indicated
Customer Care Manager. It was noted that the entire operational Manager is in charge of
marketing in Co-Operative bank.

4.3.4 Training of Marketing Officers

The study sought to find out from the respondents how marketing officers are trained in
co-operative bank. Table 4.5, shows the analysis of the findings.

39

Table 4.5, Training of Marketing Officers

Response

Frequency

Workshops

18

44

Seminars

Going to school

11

Internal Training

14

36

Total

40

100

Source: Research, (2013)

According to findings in table 4.5, majority, 18(44%) of the respondents indicated
workshops, 14(36%) indicated internal training, 4(11%) indicated going to school while
3(9%) indicated seminars. The researcher noted that marketing officers are trained
through attending workshops at co-operative bank.
4.4 Marketing Strategies and the Banks Competition in the Market
4.4.1 Marketing Strategies
The research sought to know from the respondents whether marketing strategies of cooperative bank are effective. This was important and relevant to the study as it indicated
whether co-operative bank has marketing strategies that can make it to compete better in
the market. Table 4.6 shows the analysis of the findings.

Table 4.6 Marketing Strategies

Category

(f)

(%)

Yes

40

100

No

Total

40

100

Source: Research, (2013)

40

According to findings in table 4.6, all the respondents 40(100%) indicated that there are
marketing strategies in the bank. The researcher noted that marketing strategies in cooperative bank are effective and hence there is good competition.

4.4.2 Marketing Strategies and Competition of the Bank

The research sought to know from the respondents whether marketing strategies
improves the competition of the bank in the market. Table 4.7 shows the analysis of the
findings.
Table 4.7 Competition of the Bank
Category

Respondents

Percentage

Yes

39

98

No

Total

40

100

Source: Research, (2013)

According to findings in table 4.7, 39(98%) indicated (Yes) while 1(2%) indicated (No).
From the analysis it was noted that marketing strategies improves the competition of the
bank in the market.

4.4.3 Rating the Competition of the Bank in the Market in Relation to Marketing
The study sought to find from the respondents the rating of competition of the bank in the
market in relation to marketing. Table 4.8 shows the analysis of the findings.

41

Table 4.8 Rating of Competition

Response

Frequency

Excellent

13

33

Good

18

44

Fair

23

Total

40

100

Source; Research, (2013)

According to the findings in table 4.8, majority 18(44%) of the respondents indicated that
the competition is good, 13(33%) indicated that it is excellent while 9(23%) indicated
that it is fair. The researcher noted that the competition of the bank in the market in
relation to marketing strategies is good.

4.5 Marketing Strategies and the Corporate Image of the Bank

4.5.1 Marketing Strategies and Corporate Image
The study sought to know from the respondents whether marketing strategies enhances
corporate image of co-operative bank of Narok. Figure 4.5 shows the analysis of the
findings.

15%

Yes
No

85%

Figure 4.5 Marketing Strategies and Corporate Image

Source; Research, (2013)

42

According to findings in figure 4.5, 34(85%) indicated that marketing strategies enhances
the corporate image of the bank while 6(15%) indicated that it does not enhance
corporate image of the bank. It was noted that marketing strategies enhances the
corporate image of co-operative bank.

4.5.2 How Marketing Strategies Improve the Corporate Image of the Bank
The study sought to find out from the respondents how marketing strategies enhance the
corporate image of the bank. Table 4.9 shows the analysis of the findings.
Table 4.9 How Marketing Strategies Improve the Corporate Image
Category

Frequency

(%)

By bringing in more clients

38

95

Not sure

Total

40

100

Source; Research, (2013)

According to findings in table 4.9, 38(95%) indicated that it brings in more clients while
2(5%) indicated that they were not sure. It was noted that marketing strategies enhances
the corporate image of the bank through bringing in more clients.

4.5.3 Rating of the Corporate Image of the Bank in Relation to Marketing Strategies
The study sought to find out from the respondents the rating of the Corporate Image of
the Bank in Relation to Marketing Strategies. Table 4.10 shows the findings.

43

Table 4.10 Rating of the Corporate Image

Category

Respondents

Percentage

High

18

44

Medium

18

44

Low

12

Total

40

100

Source; Research, (2013)

According to findings in table 4.10, 18(44%) indicated high, 18(44%) indicated medium
while 4(12%) indicated low. This indicated that the corporate image of the bank in
relation to the marketing strategies becomes high unlike when marketing is not done. The
researcher commends co-operative bank for what they are doing in relation to marketing
and encourages them to do more marketing so that many people get to know their
products and services offered so that they open accounts and deposit their money as this
can increase their corporate image.

4.6 Summary of the Chapter

The data for the study was collected by use of questionnaires which were distributed to
the respondents who were the employees Co-Operative Bank-Narok branch. Data was
analyzed and presented using frequency tables, bar graphs and pie charts.

44

CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter presents the summary of the findings of the main study, conclusions and
recommendations arrived at. It also gives suggestions for further studies.

5.2 Summary of the Findings

5.2.1 Availability of Marketing Strategies in Co-Operative Bank
The study sought to find out from the respondents whether Co-Operative bank does
marketing. All the respondents 40 at (100%) indicated that Co-Operative bank does
marketing. The study sought to know from the respondents the state of marketing of CoOperative bank. To determine this, the respondents were asked to rate the adequacy or
inadequacy of marketing in their bank. Majority, 18(44%) indicated that the marketing is
high, 18(44%) indicated that it was medium while 4(12%) indicated that it was low. From
these findings the researcher noted that marketing of Co-Operative bank is high.

The study sought to know from the respondents, who are responsible in facilitating
marketing in Co-Operative bank. Majority of the respondents, 22(56%) indicated that it
was the operational manager who facilitates marketing. From the findings the researcher
noted that the operational manager is in charge of marketing at Co-Operative bankNarok. The study sought to find out from the respondents how marketing officers are
trained. Majority, 18(44%) of the respondents indicated workshops, 14(36%) indicated
internal training, 4(11%) indicated going to school while 3(9%) indicated seminars. The
researcher noted that marketing officers are trained through attending workshops.
5.2.2 Marketing Strategies and the Banks Competition in the Market
The research sought to know whether marketing strategies of co-operative bank are
effective. All the respondents indicated that the marketing strategies are effective. The
researcher noted that marketing strategies of co-operative bank are effective. The
research sought to know from the respondents whether training of marketing officers
enhance effectiveness at co-operative bank. Majority, 39(98%) indicated that it enhances

45

while 1(2%) indicated that it does not enhance effectiveness. From the analysis it was
noted that training of marketing officers enhances effectiveness at co-operative bank.
The study sought to find out from the respondents the rating of marketing effectiveness in
co-operative bank. Majority 18(44%) of the respondents indicated Good, 13(33%)
indicated excellent while 9(23%) indicated Fair. The researcher noted that marketing
effectiveness of Co-operative bank is good. The study sought to know from the
respondents whether marketing enhances general performance of co-operative bank.
Majority 34(85%) indicated that it enhances general performance while 6(15%) indicated
that it does not enhances general performance. It was noted that marketing enhances
general performance of co-operative bank.

5.2.3 Marketing Strategies and the Corporate Image of the Bank

The study sought to find out from the respondents how marketing enhance corporate
image of the bank. Majority 38(95%) indicated that more clients are received while
2(5%) indicated that they were not sure. It was noted that marketing enhances corporate
image of a bank through bringing in more clients. The study sought to find out the rate of
customer turn out in relation to marketing of co-operative bank. Majority18 (44%)
indicated high, 18(44%) indicated medium while 4(12%) indicated low. It was noted that
the client turn-out in relation to marketing is high.

5.3 Conclusion of the Study

The findings revealed that an increase in marketing activities will have a positive effect
on the organizational performance. Effective marketing mix is what can guarantee
improved performance in service industry like financial institutions. This fact was
attested to in the analysis under the overall significance when all the marketing mix or
strategies adopted in this study were combined. Each bank must determine the
appropriate marketing mix that will suit a particular market or region to ensure high
return.

The study does not suggest that profit is the only goal a bank must pursue as a service
industry, rather, it also needs to satisfy the needs of the customers and shareholders so

46

that patronage and loyalty will be ensured. This will definitely increase the long run
profitability of the bank as well as rendering quality service to the banking public.
Generally, the responses from the questionnaire of the pilot and the main study revealed a
similar over all positive relationship between the marketing strategies variables and
banks returns. Thus, the findings of the analysis are consistent, reliable for the prediction
of the entire banking population.

The study revealed that marketing strategies 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, and lower cost of fund.

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. The
application of relationship marketing in the banking industry enables banks to create
customer satisfaction and customer loyalty thereby improving their performance.

Therefore, the study concludes that marketing strategies is one of the most important
strategies for competitive advantage for business survival today. Marketing strategies is
recognized as fundamentally reshaping the marketing field and evolving as a part of
modern marketing. That is, for successful operation in the banking sector, banks must be
able to understand their customers so well as to respond appropriately to their needs. The

47

study concludes that co-operative bank must be able to build a long lasting relationship
with their customers through putting in place marketing strategies.

5.4 Recommendations of the Study

In view of the above discussion and findings, the following recommendations will be
useful to banks in the process of marketing their services for better delivery of services to
their customers which will in turn increase performance through patronage and customer
loyalty: Banks should embark, from time to time on marketing research. This is because
effective marketing strategies are a product of marketing research. Thus, good and
adequate marketing mix is a product of effective marketing research too. Marketing
research will bring about innovation, better services for customer and better method of
production and processing.
In adopting marketing strategies, banks should also compare different companys
strategies and access the success and the failure of such strategies in the industry. In
addition, banks are encouraged to be more customers-focused and embrace relationship
marketing rather than transaction marketing. This will enable them to gain customers
loyalty and maintain a long term relationship with customers. The management of the
banking institutions should be transparent and follow the laid down rules so as to create
and sustain public confidence. This will definitely increase savings and in turn improve
the level of economic growth.
Effective management of depositors fund that will disallow failure should be stipulated
by the monetary authorities. Banks should avoid unethical marketing behavior such as:
dishonesty, unexpected price change, being rigid, abuse of position, misuse of
information, violation of confidentiality, lack of equitable treatment, and poor product
quality among others.

5.5 Areas for Further Research

This research leads to some observations that might be of interest to future researchers, as
they represent the seeds from which future research can be developed. This same research

48

can be carried out in other nations so that a broad comparison of the concepts of strategic
marketing as it affects firm performance can be made. Research into the effects of key
characteristics of industries environmental indices and marketing strategy could be
carried out to further explain the differences in the firms adoption of strategic marketing.
Finally, future research works are to be undertaken in order to refine the cobwebs found
in the present research, and orient it to more specific contexts.

49

REFERENCES
Achumba, I.C. and Osuagwu, L.(1994). Marketing Fundamentals and Practic. Rock
Hill
Alder, L.(1997). Systems approach to marketing. Harvard Business Review, 38(3), 3)
May/June, 105-118.
Alpar, P.(1991). Knowledge-based modeling of marketing managers problemsolving behavior. International Journal of Research in Marketing, 8,5-16.
Abolaji A. (2009). Marketing of Financial Services. Central Bank of Nigeria Press,
Lagos, Nigeria
Akinyele, S.T.(2011). Strategic marketing management on performance of firms in the
downstream sector of Nigerian oil and gas industry. Business Intelligence
Journal, vol.10(6):303-311.
Bell, L. & Rhodes, C. (1996). The skills of Primary School Management, London:
Routledge.
Berry, (1995). The Efficiency Effects of Bank Mergers and Acquisition: A preliminary
Look at the 1990s Data. In Bank Merger and Acquisitions, eds. Y. Amihud and
G. Miller. Amsterdam: Kluwer Academic Publishers.
Berger, N. Allen (2000). The Integration of the Financial Services Industry: Where
are the Efficiencies. FEDS Paper No. 2000-36.
Brassington, F. & Pettitt, S. (2000). Principles of Marketing, 2nd Edit ion. Harlow:
Pearson Education Limited.
Charnes, A., W.W. Cooper, and E. Rhodes (1978). Measuring the Efficiency of
Decision Making Units. European Journal of Operational Research, Volume 3:
429-444
Charnes, A., W.W. Cooper, D.B. Learner, and F.Y. Philips (1985). Management
Science and Marketing Management. Journal of Marketing, Volume 49, April:
93-105.
Collis, D.J. (1991). A Resourced-Based Analysis of Global Competition: The Case of
the Bearings Industries, Strategic Management Journal, Vol 12, Summer
De Nicolo and Gianni (2003). Bank Consolidation, Internationalization and
Conglomeration: Trends and Implications for Financial Risk, IMF Working Paper
03/158.

50

Douglas, S.P., and C.S. Craig (1989). Evolution of Global Market Strategy: Scale,
Scope and Synergy.Columbia Journal of World Business, Vol 24, No 3: 47-59
Ecie, W. (1973). Marketing in Banking. The Bankers Magazine, August.
Grant,R.M.(1991).The Resource-Based Theory of Competitive Advantage. Implications
for Strategy Formulation. California Management Review.
Gay. L. R. (1992). Educational Research, Competences for Analysis and Application.
Ohio: Charles E. Merill Publishing, Co.
Gray, D. E. (2004). Doing Research in the Real World. London: Sage Publications.
Gruca, T.S., and Rego.L.L. (2005). Customer Satisfaction. Cash Flow, and
Shareholder Value Journal of Marketing.
Gronroos (2000). The Human Capital Century and American Leadership: Virtues
of the Past. NBER Working Paper No. 8239, Cambridge: National Bureau for
Economic Research.
Gyorgy Szapary (2001). Banking Sector Reforms in Hungry: Lessons Learned,
Current Trends and Prospects, Croatian National Bank.
International Monetary Fund (2001). Financial Sectors Consolidation in Emerging
Markets, in International Capital Market Report, ed. By Donal J. Mathieson and
Garry J. Schinasi Washington.
Kamakura, W.A.; V. Mittal, F. De Rosa, and Mazzon, J.A. (2002). Assessing the
Service-Profit Chain. Marketing Science, Volume 21.
Kotler, P. (2001). Marketing Management. New Delhi Prentice Hall of India Private
Limited
Kotler, P., Keller, K.L. (2006). Marketing Management. Delhi Prentice Hall of India
Private Limited.
Mahajan, J. (1999), A Data Envelopment Analytic Model for Assessing the Relative
Efficiency of theSelling Function. European Journal of Operational Research. Vol.
53.
Meiden, A. (1984). Banking Marketing Management. Macmillan Publishers Limited,
London.
Mugenda, O. & Mugenda, A. (1999). Research Methods: Qualitative and Quantitative
Approaches. Nairobi: Acts Press.

51

Orodho J. A. (2002). Techniques of Writing Research Proposals and Reports in

Education and Social Sciences. Nairobi: Masola Publishers

Reichheld, (1996). Secondary Textbook and School Library Provision in SubSaharan Africa; Washington D. C.: World Bank.
Rust, R.T., T. Ambler, G.S. Carpenter, Kumar, V and. Srivastava, R.K (2004).
Measuring Marketing Productivity: Current Knowledge and Future Directions
Journal of Marketing,
Sheth, J.N., Sisodia, R.S and A. Sharma (2002). The Antecedents and Consequences
of Customer-Centric Marketing. Journal of the Academy of Marketing Science,
Volume 28.
Srivastava, R.K., Shervani, T.A. and L. Fahey (1998) Market-Based Assets and
Shareholder Value: A Framework for Analysis Journal of Marketing, Volume 62.
Srivastava, R.K., Fahey, L and Christensen, H.K. (2001) The Resource-Based View
and Marketing: The Role of Market-Based Assets in gaining Competitive
Advantage Journal of Management.
Teece, D., Pisano, G and Shuen, A. (1997). Dynamic capabilities and strategic
management. Strategic Management Journal.
Van Waterschoot, W., and Van den Bulte, C. (1992). The 4P Classification of the
Marketing Mix Revisited. Journal of Marketing.
Wernerfelt, B. (1984). A Resource-Based View of the Firm. Strategic Management
Journal.
Winer, (2001). Research Methods in Education: An Introduction. London: Alyn
and Bacon Inc.
Zeithaml, A., Valarie, Bittner, J. Mary, (2000). Services Marketing Integrating
Customer Focus Across the Firm. Irwin McGraw H

52

53

54

55

56