The effectiveness of promotion strategies on commercial banks performance in Tanzania: the case of CRDB Bank Plc.

This study examined the effectiveness of promotion strategies on commercial banks performance in Tanzania, the case being CRDB Bank Plc. It assessed the effectiveness of promotion strategies on the commercial banks performance. The study established the influence of advertising; examined the role of personal selling; investigated the impact of sales promotion; ascertained the effectiveness of publicity; and delineated the influence of direct marketing on commercial banks performance. The survey used random and purposive sampling techniques to select 208 respondents and 5 key informants, respectively. Data were collected by the means of self-administered questionnaire and interviews. The acquired data were then analysed using Statistical Package for Social Sciences (SPSS) and presented in terms of tables. The study adopted planed behaviour and hierarchy of effect theories to explain the reason for the commercial banks performance. A hypothesised model that included promotion strategies as predictors of commercial banks performance was evaluated using Multiple Linear Regression Model. The results supported the hypothesised model, indicating that promotion strategies (sales promotion, advertising, publicity, personal selling and direct marketing) have influence on commercial banks performance. The results indicate that sales promotion, advertising, personal selling and direct marketing have influence on commercial banks performance, while publicity was found to have positive effect but insignificant effect to commercial banks performance. This implies that the commercial banks performance is influenced by the strategies such as sales promotion, advertising, personal selling and direct marketing. This study recommends that, commercial banks need to use the four promotion strategies (sales promotion, advertising, personal selling and direct marketing as well as other strategies to manage the performance of commercial banks.