Environmental diversity, market segmentation and performance of commercial banks in Kenya

Abstract

Diversity management is a strategic approach to human resource management, supported by some programs, activities and tools, directed towards integration and development of diversity, both physical and job-related, and showed by members of organization. In order to manage a multicultural markets, respecting traditions and culture it is indispensable to implement a new approach of marketing strategies which integrates and valorizes the diversity of the market. The study sought to determine the market segmentation strategies suitable for responding to environmental diversity in market access within the banking industry in Kenya. The studywas conducted using the descriptive study design, employing both quantitative and qualitative approaches. The target population was the bank marketing managers in selected international banks in Kenya. The Kenya banking sector is composed of 43 banks. The research applied purposive sampling to identify international banks operating in Kenya. The study sampled 17 banks making a sample size of 17 marketing directors. The main source of primary data was individual questionnaires served to marketing executives of the commercial banks. Descriptive Statistics techniques was used to produce data such as mean, standard deviation, frequencies and percentages. Inferential statistics techniques were used to test the various correlations that exist among variables.The findings of the study indicate that there is a moderate linkage which exists between market segmentation and access to diverse markets in international business environments. The study found that the marketing departments in the banks have a welleducated workforce undertaking their delivery of services in this field. It found that while the banks were recruiting new staff in the marketing departments, they were also keen on maintaining staff for continuity of organization culture. It found that most of the respondents feel that their sales growth is high and that most organizations are doing quite well in growing the revenue from sale of services.The results are also significant for theory, policy and implementation purposes in marketing for services. The study recommended similar studies in other organizations in the service sector.