ADVERTISING AND SALES PERFORMANCE OF COMMERCIAL BANKS IN NYERI COUNTY, KENYA
Catherine Mutindi Nzioka - MBA Candidate, Department of Business Administration, Kenyatta University, Kenya
Dr. Paul Waithaka - Lecturer, Department of Business Administration, Kenyatta University, Kenya
ABSTRACT
The sales performance of commercial banks has sharply deteriorated in recent years, a factor which has translated to huge decline in revenues. Both customer outreach and sales volume has been affected. The study sought to determine the effect of advertising as a promotional mix tool on sales performance of commercial banks in Nyeri County, Kenya. The guiding theory was the hierarchy of effects theory. A descriptive survey research design was used. The target population was made up of thirty five commercial banks with active operations in Nyeri County, Kenya. The target population consisted of marketing managers, branch managers, operation managers and credit managers of all the sixteen banks which totals to 140 respondents. A semi-structured questionnaire was used in data collection and was administrated using the drop and pick method. A census method was used. Both descriptive and inferential analysis were applied. The multiple regression and Pearson correlation were used to guide conclusions. The banks had registered impressive growth in their sales volumes and customer outreach in the five years from 2015 to 2019. The regression analysis results provided evidence that advertising as a promotional mix tool has a positive and statistically significant effect on sales performance. The results of Pearson correlation analysis indicated that advertising has a strong positive and statistically significant relationship with sales performance. It was concluded that advertising as a promotional mix tool plays a significant role in determining the sales performance of the banks. The study recommends furtherance of advertising efforts and specially heightened implementation of use of directories and online advertisements.