Investigating the Influence of Promotional Strategies on Performance of Banks in Kenya

Abstract

Abstract: This paper reports a study on the influence of promotional strategies on performance of National Bank of Kenya (NBK) Limited. Specifically, the study sought to establish the nature of the relationship between the bank‟s promotional strategies and its performance. A descriptive research design employing a simple random sampling technique selected 40(88%) bankbranches whose managers were contacted using questionnaires. One key informant the Marketing manager, was purposively selected from the bank‟s head office due to her knowledge base on the subject matter. The data collected were analyzed using Microsoft Excel package and the SPSS software. Correlation analysis was conducted to establish the nature of the relationship between the bank‟s promotional strategies and it performance while regression analysis used to explainits performance. The studyfound a positive relationshipbetween promotional strategies expenditure and bank performance. Spending on promotional mixes individually had little effect onbank performance. However, when spending on all promotional strategies is aggregated bank performance increased significantly. Study recommends integrated spending on promotional mixes proportionally and not just on a few selected elements.