Effects Of Marketing Practices On The Performance Of Phoenix Of East Africa Assurance Company Ltd

Abstract

The market share value is the sure way to know the efficiency, strength, performance and competitive position of the firm and all these depend on the of an insurance company‟s marketing and investment strategy. This research was done to investigate the effects of marketing practises at Phoenix of East Africa Assurance Co. Ltd. The study adopted a case study research design with the following objectives; to find the marketing practices adopted by Phoenix of East Africa Assurance Co. Ltd; and to establish the link between the marketing practices and organizational performance at Phoenix of East Africa Assurance Co. Ltd. The study utilized both primary and secondary data with an interview guide as the main research instrument. Five top level managers at Phoenix East Africa Assurance Co. Ltd were interviewed. Qualitative data was obtained from the interview guide and was analyzed using Content analysis. The study revealed that Phoenix of East Africa Assurance Co. Ltd is able to get new customers and Retaining them by giving required services, They do product Innovation by offering new products and maintenance, market, and task-oriented approaches as the main categories of marketing practices. On the other hand, the study found that Phoenix of East Africa Assurance Co. Ltd has established and maintained long term relationship with its customers by constant and regular communication with them, setting up new distribution channels, internationalizing, and prompt and timely services as the main strategies to ensure it acquires and retains loyal customers. Moreover, the study found that Phoenix of East Africa Assurance Co. Ltd has applied telemarketing, customer relationship marketing (CRM) systems; Lead tracking, online marketing services tools as some of the main marketing strategies. In a bid to advance the development of new insurance products, the study found that Phoenix of East Africa Assurance Co. Ltd has adopted the generation of sales by launching new products, up-selling and providing complementary products with additional services as the key marketing practices. The study concluded that the marketing practices embraced by Phoenix East Africa Assurance have positively influenced its organizational performance over the recent years. The study recommends that other insurance firms embrace dynamic marketing approaches in their operations. The findings of this study further underpins the need for firms within and beyond the insurance industry to put in place critical success factors in the adoption and implementation of current marketing tools like lead tracking to enhance their marketing efficiency. The study only looked at Phoenix of E.A. Assurance Co. Ltd due to the limitation of time and resources whereas a study of this nature should include a survey of sizeable number of firms. The study established that Phoenix of E.A. Assurance Co. Ltd has good marketing practices in place but the same have not been used properly resulting to poor performance. The study recommends further research to focus on some reasons other than marketing to further test how they have affected the performance of the firm. Future studies should focus on the identification of the marketing practices in use by other insurance firms in the industry and on the possibility of setting benchmarks.