The relationship between marketing strategies and the performance of microfinance institutions in Uganda

Abstract

The dissertation is a result of a study to investigate the relationship between marketing strategies and the performance of Micro-Finance Institutions in Uganda, using FINCA Uganda Ltd as my case study. This study grouped marketing strategies into two broad categories; namely mass media advertising and direct marketing (personal selling) and how these strategies impact on the performance of MFIs. The scope of this study has narrowed the performance measures into income growth, growth in customer deposits, and growth in loans at FINCA Uganda Ltd. The study used both qualitative and quantitative approaches. Qualitative approach collected respondents‟ views during interviews while quantitative approach collected information from respondents by use of a checklist of structured questions. The study population consisted the financial data at FINCA Uganda over 10 years from 2004- 2014. This study involved quantitative data and document (management reports) analysis. The instrument of data collection used was a “checklist” of structured questions. Furthermore, a questionnaire about marketing strategies was used to collect opinions from marketing personnel The data was analysed and presented in tables, graphs and charts using MS Excel tools. Focus was on analysis of relationships between different marketing strategies and performance measures of MDI in general. The measures were expressed in form of percentages and ratios. Based on the findings, it is recommended that advertising is not the best marketing strategy FINCA Uganda can adopt. Instead personal selling would be the best and most recommended strategy. Personal selling activities like door-to-door marketing, presentations during school open days, during meetings of vendors associations can be applied. These are recommended activities targeting employers that need efficient banking services for their lower-paid staff would attract more customers/clients to benefit from FINCA‟s financial products and services