INFLUENCE OF MARKETING STRATEGIES ON PERFORMANCE OF INSURANCE COMPANIES IN MERU COUNTY, KENYA

Kinyua Kanampiu Henry, Dr. Peter Simotwo

Abstract


This research investigates the effect of marketing strategies, specifically market penetration, and market development on the performance of insurance companies in Meru County, Kenya. As the insurance sector faces increasing competition and changing consumer needs, understanding the effectiveness of these strategies is crucial for enhancing organizational performance and sustaining growth. The study employs a mixed-methods approach, incorporating both quantitative and qualitative data collected through structured questionnaires distributed to a sample of insurance professionals in the region. The research findings reveal that market penetration strategies significantly influence the performance of insurance companies. The analysis showed a strong positive correlation (0.72) between market penetration, (0.750) market penetration and performance, emphasizing its role in expanding market share and driving revenue growth. Additionally, the study highlights the importance of market development strategies in reaching new customer segments and fostering long-term growth. Respondents noted that aligning individual performance expectations with organizational goals enhances the effectiveness of market development initiatives. The inferential analysis, including correlation, regression, and ANOVA, confirms the significance of these marketing strategies in enhancing organizational performance. The results demonstrate that effective market penetration and development strategies are critical for improving performance metrics, with implications for policy and decision-making within the insurance sector. Insurance companies should invest in developing and refining their pricing strategies to enhance market penetration.  Firms should focus on expanding their market presence by exploring new customer segments and product offerings.

Keywords: Marketing Strategies Market Penetration, Market Development, Performance, Insurance Companies


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