Marketing strategies and competitiveness of microfinance institutions in Uganda

Abstract

This study sought to investigate the marketing strategies and competitiveness of microfinance institutions in Uganda a case study of Pride Microfinance Ltd. This specific objectives were to: establish the effect of promotion on the competitiveness of pride Microfinance Ltd, examine the effect of internal marketing strategy on the competitiveness of Pride Microfinance Ltd and find out the effect of market segmentation on the competitiveness of Pride Microfinance Ltd. A case study design was adopted and data collected from a sample of 44 respondents. Self-administered questionnaires, interview guide and documentary review guide were used in the study. Data was analysed using SPSS Version 16 and findings were presented in a tabular format showing frequencies and percentages. Qualitative findings were presented in themes in a narrative form. The study revealed that Pride Microfinance Limited has used promotions to generate more customer traffic, promote business loans, to create awareness on the different products and services offered, provide knowledge to the customers and due to that the demand for the banks products and services has increased. It was also observed that Pride Microfinance Limited engages in internal marketing which has helped to satisfy internal customers, to improve its internal image, to fulfil employees’ needs and to meet customer expectations. From the study, it was also deduced that Pride Microfinance Limited has used Market segmentation as to promote products which has increased the bank’s customer base. This confirms that there is a direct relationship between marketing strategies and competitiveness of microfinance institutions. Finally the study recommended that the management at Pride Microfinance Limited should plan strategically about the form of marketing to use that will positively influence the decision making of a customer. This will lead to increased sales thus high organisation performance. It was also recommended that Marketing should be fully considered during the budget formulation so that enough funds are allocated to finance all activities involved in achieving all the drafted objectives of marketing. Presence of enough funds help to cover a large market population.