Influence of Electronic Marketing Strategies on the Performance of Commercial Banks in Kenya

Abstract

Electronic marketing strategies are adopted by modern competitive companies to gain competitive edge in the market in terms of minimizing costs and maximizing profits. Due to changes in the internal and external business environment like; competition, change of consumer buying patterns and globalization, have necessitated companies to integrate their marketing activities with Information Communication Technology to bridge the gap between the company and the customer. These objectives of the study were; to establish electronic marketing strategies adopted by Commercial Banks in Kenya and to establish the relationship between electronic marketing strategies and performance of Commercial Banks in Kenya. Primary data was collected using semistructured questionnaires; with both close-ended and open-ended questions. Questionnaires were used to collect data and were administered by the researcher. Descriptive statistics was used to analyze data in form of frequencies, percentages, means and standard deviation to summarize the data. Regression and correlation method was used to determine the joint relationship between independent and dependent variables. The study established that some commercial banks adopted electronic marketing on a smaller extent due to the influence of internal and external factors. Therefore, this study recommends timely training of commercial bank staff on electronic marketing practices. Integration of modern technologies in the organization sub-systems for efficiency and effectiveness. Management should allocate enough resources to empower the initiative within the organization thus minimal resistance from employees. The Government of Kenya should formulate and implement policies that support small and large companies to use e-commerce platform to buy and sell their products and services through online thus globalization.