Marketing Strategies Used by Insurance Companies in Kenya to Manage Service Quality Among Customers

Abstract

In order to keep up with the competition and changing consumer needs and wants in the competitive business environment, insurance companies need to use effective marketing strategies in managing service quality among customers. Changing consumer needs and business environment has necessitated insurance companies to adopt marketing strategies to survive hence attracting and retaining customers. Product, price, place, promotion. People, process and physical evidence strategies have remained key pillars of any successful insurance company. Adoption of effective marketing strategies promotes quality service delivery in the industry hence social economic developments in Kenya. This study addressed the following research questions; what are the marketing strategies used by Insurance Companies in Kenya in managing service quality among customers and the challenges faced by Insurance Companies in Kenya in managing service quality among customers. In methodology, the study adopted a descriptive survey. The target population for this study was the staff at the marketing departments of the 41 insurance companies operating in Kenya. The study carried out a census of all the staff within the department of marketing in 41 insurance companies. This study utilized a questionnaire as the data collection tool. Data collected was analyzed through descriptive statistics with the help of SPSS. It was established that quite a number of insurance companies use marketing strategies at little extent due to internal and external challenges in the business environment like high costs associated with marketing the insurance products or services, inadequate training of staff on customers care relations by the insurance firms and ineffective policies formulated by Association of Kenya Insurers and the government pose a major challenge to the growth of insurance companies in Kenya.