Factors that influence application of micro marketing mix variables at the branch level of commercial banks in Kenya

Abstract

The research objectives of the study were to identify the micro - marketing mix elements used by various Equity Bank branches; determine the criteria used to select the pertinent micro - marketing mix variables; and to identify the principal challenges faced by the Bank's branches in applying the micro - marketing mix elements. The research was a case study of 30 Equity Bank branches within greater Nairobi. The researcher distributed the questionnaires to the respondents at their work stations through hand delivery and/or via email followed by a phone call. A majority of the respondents (80%) responded to the questionnaires. Descriptive statistics in terms of mean scores and percentages were computed and pie charts used to more succinctly present the study results. Overall, the micro - marketing element of place (distribution) is widely used by the Bank branches. The other micro - marketing mix elements used to a large extent are promotion, product, process management, price, physical evidence, staff related factors (people) and probe or marketing research in that order. On the issue of the criteria used to select the micro - marketing variables to be applied, the study results suggested that no dominant criteria are applied universally by the branches. Finally, despite the successful implementation of the micro marketing strategies by the Equity Bank, there are a number of challenges that the staff at the branch level have faced. The key challenges that were mentioned included competition, language barriers, striking a balance between marketing activities and maintaining the bank's image, and communication between the head office and the branches. In summary the study revealed that the Bank branches apply various micro-marketing elements. They use different criteria to select marketing mix elements that each branch uses. The main criterion that they used is the characteristics of target market followed by the economic activities around the Bank's branches and their geographical location. The current study focused only on a number of Equity Bank branches in greater Nairobi. Future research should therefore cover different geographical locations of the Bank as well as other commercial banks operating in the Country.