Abstract:
The purpose of the study was to investigate the influence of marketing strategies to the performance of commercial banks. The specific objectives of the study were to check out the effectiveness of marketing strategies applied in Bank of Kigali and to find out the contribution of marketing strategies to the performance of Bank of Kigali.,The results agree that the types of marketing strategies applied by Bank of Kigali Plc are Service delivery/ process strategy, Personal strategy, Distribution strategy, Promotion strategy, Product strategy, Pricing strategy and Physical strategy. From 2020 up to 2023, the ratios of net profit margin was 26.6%; 28.8%; 31.23% and 33.33 respectively. This means that for RWF100, the bank got 26.6 Rwf in 2020; 28.8 Rwfs in 2021 got 31.23 Rwfs in 2022 and got 33.33 Rwfs in 2023. Therefore Bank of Kigali Plc’s net profit margin had been increased from 2020 to 2023 that means that they recognized performance. From 2020 up to 2023, the ratio of Return on Assets are 2.94%; 3.26%; 3.22% and 3.53% respectively. This means that; in 2020 for 100 RWF of invested they got 2.95RWF; in 2021 it got 2.94RWF; in 2022 got 3.22 Rwfs and in 2023for 100 RWF of invested they got 3.53 RWF. The above result, show that Bank of Kigali Plc, is profitable during the covered period. And the above result shows that the average of return on assets is 3.24%. From 2020 up to 2023, the ratios of Return on Equity are as follow: 14.82%; 18.16%; 18.72% and 20.42 respectively. This means that in 2020 for the 100Rwf investors have invested in bank, they generated in 14.82 Rwf of benefit, and in 2021 for the 100 Rwf investors have invested in bank, they generated in 18.16 Rwf of benefit and in 2022 for100 Rwf investors have invested in bank, they generated in 18.72 Rwf of benefit; and in 2023for the 100Rwf investors have invested in bank, they generated in 20.42Rwf of benefit. The results showed that three independent variables (product strategy, pricing strategy and promotion strategy) in this study, explain a variation 59.3% of financial performance of Bank of Kigali PLC as represented by the adjusted R2. This therefore means that other factors not studied in this research contribute 40.7% of the financial performance of Bank of Kigali PLC. This shows that there are other factors that influence the financial performance of Bank of Kigali PLC. The results indicated that the model was significant since the p-value is 0.01 which is less than 0.05 thus the model is statistically significance in predicting how product strategy, pricing strategy and promotion strategy influence financial performance of Bank of Kigali PLC.
