Clients Perception of the Role of Marketing Strategies on Profitability of Savings and Credits Cooperative Societies (SACCOS) in Dodoma City, Tanzania
Abstract
This study assessed the clients’ perception of the role of marketing strategies on the profitability of SACCOS in Dodoma city, Tanzania. The study specifically examined the influence of product, service delivery, price, promotion, and place strategies on the profitability of SACCOS. This study used the descriptive and explanatory design where the regression analysis was used to determine the relationship between the marketing strategies and profitability of SACCOS. The information was collected from the 112 clients of SACCOS using the systematic sampling technique. Data were collected through a questionnaire and were analysed by Statistical Package for Social Science (SPSS). The findings revealed that clients perceived that the product, service delivery, pricing and place strategies influenced negatively and significantly the profitability of SACCOS in Dodoma City. Therefore, this study recommends that the SACCOS management continue improving the marketing strategies tools for sustainable profitability of SACCOS in Dodoma City.
Downloads
References
Abiodun, E. A. &Kolade, O. G. (2020). Marketing strategies impact on organisational performance. International Journal of Scientific & Technology Research, 9(01), 1758- 1762.
Absanto, G., & Aikaruwa, D. (2013). Credit Rationing and Loan Repayment Performance in Victoria SACCOS - Tanzania. Journal of Management and Business, 2(6), 328-341.
Al Shobaki, M. J., & Abu-Naser, S. S. (2017). The Role of the Practice of Excellence Strategies in Education to Achieve Sustainable Competitive Advantage to Institutions of Higher Education. International Journal of Digital Publication Technology, 1(2), 135-157.
Anania, P.,& Rwekaza, G. (2018). Cooperative Education and Training as A Means to Improve Performance in Cooperative Societies.Sumerianz Journal of Social Science, 1(2),39–50.
Anning-Dorson, T. (2018). Innovation and competitive advantage creation. International Marketing Review,35(4), 580-600.
Brafu-Insaidoo, W. G. &Ahiakpor, F. (2011). Understanding the marketing strategies of microfinance institutions within the Accra metropolis of Ghana: Case of selected institutions. African Journal of Marketing Management, 3(2), 45-55.
Bullen, P. B. (2014). How to choose a sample size (for the statistically challenged). Retrieved from: http://www.tools4dev.org/resources/how-to-choose-a-sample-size/on 20/12/2020.
Campion, A., Ekka, R. K., & Wenner, M. (2010). Interest rates and implications for microfinance in Latin America and the Caribbean (No. IDB-WP-177en). IDB Working Paper Series.
Daniel, C. O. (2018). Effects of marketing strategies on organisational performance.International Journal of Business Marketing and Management, 3(9), 01-09.
Dodoma city Profile (2021). Retrieved on 3/6/2021 from: http://dodomamc.go.tz/storage/app/media/uploaded files/DODOMA%20MUNICIPAL%20PROFILE.pdf
Hien, V. M. (2008). Evaluate Performance Between Regulated and Non-regulated Microfinance Institutions in Southeast Asia Countries. Master’s Thesis. Institute of International Business Management.
Homaid, A.A., Minai, M. S., Faaeq, M. K. (2019).The effect of market orientation activities on performance of microfinance institutions: empirical evidence from Yemen. Journal of Applied Economic Sciences, XIII, Fall 5(59), 1191-1201.
Ibok, N. I. &Etuk, S. G. (2013). Assessing the marketing orientation of microfinance banks in Akwa Ibom state. European Journal of Business and Innovation Research, 1(2), 57-69.
Jayashankar, P., & Goedegebuure, R. (2011). Marketing strategies and social performance outcomes: A field study on MFI clients. The IUP Journal of Marketing Management, 5(2), 7-32.
Jeje, K. (2015). Intensive growth strategies and outreach performance of Tanzania-based savings and credit cooperative societies. International Journal of Business and Management, 10(1), 124-135.
Kalmuk, G., &Acar, A. Z. (2015). The mediating role of organisational learning capability on the relationship between innovation and firm’s performance: A conceptual framework. Procedia-Social and Behavioral Sciences, 210, 164-169.
Kavulya, P. W., Muturi, W., Rotich, G., & Ogollah, K. (2018). Effect of customer focus strategy on the performance of Saccos in Kenya. International Journal of Business Strategies, 3(1), 1-16.
Kearns, G. S., & Lederer, A. L. (2000). The effect of strategic alignment on the use of IS-based resources for competitive advantage. The Journal of Strategic Information Systems, 9(4), 265-293.
Kearns, G., & Lederer, A. (2001). Strategic IT alignment: A model for competitive advantage. ICIS 2001 Proceedings, 2.
Khandker, S. R., Koolwal, G. B. &Badruddoza, S. (2013). How Does Competition Affect the Performance of MFIs? Evidence from Bangladesh. Policy Research Working Paper; No.6408. World Bank, Washington, D.C.
Kipkosgei, B.C., & Njeru, A. (2014). Effects of New Product Development on Customer Attraction by Saccos in Baringo County Kenya. International Journal of Business and Commerce, 3(8), 112-119.
Kiura, K. (2016). Restructuring And Marketing Strategies Used In Response To Environmental Changes By Savings And Credit Cooperative Societies In Nyeri County, Kenya.”International Journal of Economics, Commerce and Management, IV(1), 420–43.
Kotler, P. & Keller, K. (2006). Marketing and Management, Pearson Prentice Hall, Upper Saddle River, NJ. USA
Kwizera, A. (2011). Credit policy and loan recovery in Microfinance Institution. Case of B.Blue microfinance institution Kisoro. Unpublished Bachelor Thesis, Makerere University.
Marwa, N., & Aziakpono, M.(2014). Efficiency and Profitability of Tanzanian saving and Credit Cooperatives: Who is a Star? Journal of Economics and Behavioral Studies, 6(8), 658-669
Mashal, A. (2018). Do Non-Financial Factors Matter for SME’s Performance?“Case from Jordan”. International Journal of Business and Social Science, 9(1).
Mbai, M. (2007). Competitive strategies adopted by Mwalimu SACCO as a result of external environmental changes since 1997. MBA Thesis, University of Nairobi.
Mbugua, J.W., & Kinyua, G.M. (2020). Service Differentiation and Organisation Performance: An Empirical Analysis of Deposit Taking Saccos in Nairobi City County, Kenya. Journal of Business and Economic Development, 5(2), 64-72.
Muchena, Z. K., Lyria, R., Ntongai, D. &Ruuri, N.K. (2016). Effects of Marketing strategy on the competitiveness of Saccos in Imenti North Sub-County, Meru,Kenya. International Journal of AdvancedMultidisciplinary Research, 3(10), 109- 115.
Murangiri, P. K., &Wario, G. (2014). Role of marketing mix on the performance of micro finance institutions in Kenya. Strategic Journal of Business & Change Management,1(2),643-662.
Murugi, K. M. (2017). Influence of marketing strategies on growth of microfinance institutions in Kenya. MBA Dissertation, University of Nairobi.
Mutua, J. N., &Murigi, E. (2019). Corporate growth strategies on performance of SACCOs in Kitui County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(7), 363-38
Mwakajumilo, S. L. (2011). The Role of Informal Microfinance Institutions in Saving investment and poverty reduction. A case of SACCOS in Tanzania. Unpublished PhD Thesis, St Clements University, Turks and CAICOS Island of British West Indies
Nair, A. K., & Bhattacharyya, S. S. (2019). Mandatory corporate social responsibility in India and its effect on corporate financial performance: Perspectives from institutional theory and resource‐based view. Business Strategy & Development, 2(2), 106-116.
Ndiege, B. O., Mataba, L., Msonganzilla, M., & Nzilano, K. L. (2016). The Link between Financial Performance and Loan Repayment Management in Tanzania SACCOS. African Journal of Business Management, 10(4), 89-97.
Ngaka, D. M. (2019). Evaluation of marketing strategies used by banks in Tanzania on customer retention: the case of CRDB bank-Azikiwe branch. MBA Dissertation, Mzumbe University
Ngatia, E. W., Muya, J., &Ngacho, C. (2018). Relationship between competitive strategies and performance of savings and credit cooperative societies: a case of Mwalimu national SACCO in Kenya. International Journal of Social Sciences and Information Technology, IV(X),1-17
Njoki, M. E. (2019). Competitive strategies and performance of deposit taking SACCOS in Muranga county, Kenya. MBA Thesis, Kenyatta University.
Nthaga, L. G.(2017). An analysis of the profitability and sustainability of savings and credit cooperatives in Botswana. Unpublished Master Thesis, University of Cape Town
Nyamsogoro, G. (2010). Microfinance institutions in Tanzania: A review of growth and performance trends. The Accountant Journal, 26(3), 3-16.
Oloko, M., Anene E.B., Kiara, P. G., Kathambi, I., &Mutulu, J. (2014). Marketing Strategies for Profitability: A Case of Safaricom Ltd in Kenya Telecommunication Industry. International Journal of Scientific and Research Publications, 4(5),1-5
Quansah, F. (2017). The use of Cronbach alpha reliability estimates in research among students in public universities in Ghana. A Journal of Spread Corporation, 6(1), 56-64
Sagwa, E. V., &Kembu, A. S. (2016). Effects of Competitive Strategy on the Performance of Deposit Taking SACCOs in Nairobi County, Kenya. European Journal of Business and Management,8(8), 30-37.
Shisia, A., Marangu, W. N., & Omwario, B. (2014). An Assessment of the Contribution of Credit Reference Bureau Regulation towards Mitigating Credit Risks in the Kenyas Banking Industry, European Journal of Business and Management, 6 (14), 229-235.
Wondirad, H. A. (2020). Competition and microfinance institutions’ performance: evidence from India. International Journal of Corporate Social Responsibility, 5(1), 1-19.
Yitayaw, M.(2021). Determinants of Profitability and Financial Sustainability of Saving and Credit Cooperatives (SACCOs) in Eastern Ethiopia. International Journal of Rural Management, 1–23.
Nyongesa, S. A. K. (2018). The influence of relationship marketing, social performance management and firm-it characteristics on customer retention by microfinance institutions in Kenya. PhD Thesis. Strathmore University.
Zhou, K. Z., Brown, J. R., & Dev, C. S. (2009). Market orientation, competitive advantage, and performance: A demand-based perspective. Journal of Business Research, 62(11), 1063-1070.
Copyright (c) 2021 Tobesi Matiku, Joseph Magali, PhD
This work is licensed under a Creative Commons Attribution 4.0 International License.
