THE EFFECTS OF MARKETING STRATEGIES ON FINANCIAL PERFORMANCE; IN CASE OF AWASH BANK

Abstract

The purpose of this study is to examine the effects of marketing strategies on financial performance a sample of 183 respondents was drawn from employees of AB found in Addis Ababa. To conduct the analysis exhaustively, the combination of both descriptive statistics like minimum, maximum, mean and standard deviation of the variables and inferential statistics like correlation analysis to examine direction and significant of the correlation of the variables considered under this study. A structured and unstructured questionnaire was distributed to these respondents. However, the response rate from among the intended samples was only 81.97%. SPSS V 20.0 was used to analyze the data. Four hypotheses were framed for this study. Cronbach’s alpha coefficient for marketing strategies test shows 0.812; this indicates good internal consistency and reliability among the items within each strategy. Also, the results of the factor analysis generally support the assertion that the four marketing strategies in question are valid. The Pearson Correlation matrix indicates that Product development strategy affects the AB financial performance equity by highly influencing pricing strategy, placing strategy and promotion strategy. In the same way, placing strategy may affect highly by influencing Brand Product development strategy, pricing strategy, and promotion strategy. On the other hand, R-square value is 0.764, which means 76.4% of the variation in financial performance of Awash Bank are explained by the independent variables namely product development strategy, price strategy, place strategy and promotion strategy. Adjusted R-square of 0.704 reveals that model has accounted for 70.4% of the variance in the criterion variable. The findings of this study show that all four marketing strategies (product development strategy, price strategy, place strategy and promotion strategy), has a significant positive effect on financial performance of Awash bank, which led to, the acceptance of hypotheses.