Effect of Marketing Strategies on Competitive Advantage in the Banking Industry- A Case of Co-Operative Bank Limited

Abstract

The success of any bank usually depends on the ability of the bank to satisfy the financial needs of the customers. The effective use of the marketing strategies has become an important instrument to the successful operations of a banking sector. It is against this backdrop that this study sought to assess the effects of marketing strategies on competitive advantage in the banking industry; with a specific focus on Co-operative Bank Limited. The study was guided by the following objectives; To identify the marketing strategies used, to assess the effects of the marketing strategies used on competitive advantage and to identify the challenges faced in using marketing strategies on competitive advantage. The study conducted a descriptive research design. The study targeted the staff members at Co-operative Bank Limited and chose to focus on 94 employees based in the headquarters. Data was collected by use of a questionnaire and the analysis of data was done by SPSS (Version 20) software. Differentiation strategy was the most implemented marketing strategy at Co-operative Bank followed by cost leadership as indicated by 71 and 41 out of 172 responses. There was a general neutral response on the effect of cost leadership strategy, cost focus, differentiation and differentiation focus strategy on competitive advantage as indicated by 67.9%, 73.1%, 60% and 53.8% of the respondents respectively. From these findings, the study concluded that there was a moderate effect of marketing strategies on competitive advantage and was able to recommend the bank should re-evaluate the marketing strategies that are currently being utilized. The study recommended that further studies focus on how the challenges in implementing marketing strategies impact the competitive advantage of a firm.