The extent of application of the marketing variables by commercial banks in Kenya

Abstract

This study carried out among the commercial banks operating in Nairobi, focused on the extent of application of the marketing mix variables by commercial banks in Kenya. The objectives of the study were: to determine the extent to which commercial banks in Kenya apply the marketing mix variables; to identify the factors that influence the extent to which each of the marketing mix elements are used. The data collection for this study was carried out using a questionnaire. The data collected was analyzed using descriptive statistics, frequencies and cross tabulations. Factor analysis was further used to determine the factors that influence the extent to which the banks used marketing variables in the marketing effort. To a great extent the banks use the attributes of physical facilities, product, process, personnel, and pricing and to a moderate extent the attributes of place and promotion in their marketing effort. From the findings, it was established that there are factors that determine the extent to which the banks apply the marketing mix variables. The availability of funds is a factor that influences pricing to a great extent and to a moderate extent in product. Product life cycle to a great extent influences the use of promotion in the marketing mix and moderate extent in product and process. The types of customers influence greatly the place and the product and to moderate extent the pricing and the promotion. Types of services offered influences to a great extent the personnel, physical facilities and product strategy. Levels of staff skills influences the personnel element to a great extent and to a moderate extent the product and the process. Company policy influences greatly the personnel and the product elements of the marketing mix. Company image on the other hand influences to a great extent the personnel and to some degree the product, promotion and place elements. Company size was seen to influence to a great extent the physical facilities and product