Marketing Strategies and Sales Performance in the Commercial Banks in Bujumbura, Burundi

ABSTRACT The sales performance of commercial banks in Burundi has been averagely low in the period between 2015 and 2016. This was due to the outstanding amount of loans that decreased by 6.8%, from BIF 858.371,3 2015 to 800.053,2 million in July 2016. This study investigated the effect of marketing strategies on sales performance in the commercial banks in Bujumbura, Burundi. The objectives that guided the study included the following: i) to determine the effect of product on sales performance of commercial banks in Bujumbura; ii) to examine the effect of price on sales performance of commercial banks in Bujumbura; iii) to evaluate the effect of place on sales performance of commercial banks in Bujumbura; and to establish the effect of promotion on sales performance of commercial banks, Bujumbura. The study used a descriptive research design. The target population of the study was 337 respondents. Slovene‟s formula was used to come up with a sample size of 183 respondents. The main research instruments included questionnaires and key informant interviews. The retrieved questionnaires were 172, accounting for 94% response rate. Quantitative data was analyzed using frequency and percentage tables, mean and standard deviations, and inferential statistics. Qualitative data was analyzed using manual coding of transcripts. The study found that product as a marketing strategy does not significantly affect sales performance among commercial banks in Burundi (Adjusted R2 =0.001, p=0.276). Furthermore, the study found out that price as a marketing strategy used by the commercial banks of Burundi does not significantly affect sales performance (Adjusted R 2 =0.002, p=0.255). On the other hand, the study found out that place as a marketing strategy used by the commercial banks of Burundi significantly affect sales performance (Adjusted R 2 =0.043, p=0.004). In addition, the study found out that promotion as a marketing strategy used by commercial banks significantly affect sales performance (Adjusted R2 =0.058, p=0.001). Overall, the study revealed that marketing strategies significantly affect sales performance (Adjusted R2 =0.033, p=0.009). The study concluded that product and price as marketing strategies do not significantly affect sales performance while place and promotion as marketing strategies significantly affect sales performance. The study made the following recommendations: the management of the commercial banks should develop and test their products to confirm their adaptability and suitability to the target customers, they should endeavor to ensure that they adopt affordable pricing strategies such as free samples and bonus packs, discounts, personal selling and penetration pricing and should emphasize the use of personal selling and publicity to promote their products and services. This study adds to the body of new knowledge that the banking institutions should emphasize equally on price and product for them to capture more customers and increase their sale volume and consequent increase in sales performance.