THE EFFECT OF MARKETING STRATEGY ON BANK’S PERFORMANCE: IN THE CASE OF OROMIA INTERNATIONAL BANK

Abstract

Marketing strategies constitute one of the key functional strategies that Oromia International Banks (OIBs) adopt to enhance performance. This study focused on examining the effect of marketing strategies on OIBs’ performance in Addis Ababa. The thesis used quantitative research design. Proportionate stratified and purposive sampling techniques were used as a sampling technique. Quantitative data was collected by using structured questionnaire which was distributed to a sample of 316 OIB managers working in two districts and the head office units. The response rate was 85%which resulted in269 questionnaires that were validated for the data analysis purpose. The quantitative data were analyzed using descriptive and inferential analysis. The findings of descriptive statistics show that the mean score of marketing strategy variables, i.e. product, price, promotion, place, people and process, inclined within agreement level. All independent variables have significant correlation with the dependent variable ‘performance’. In particular, people had relatively strong relationship with performance. Likewise, the multiple regression results indicated that all of the six explanatory variables: product, price, promotion, place, people and process have a positive and significant effect on the performance of OIBs. The results also revealed that these independent variables were significant joint predictors of performance. The independent variables jointly explained 90.8% of the variance in performance. Finally, recommendations were made to OIBs based on the findings of the study.