Marketing Strategies and Financial Performance of Commercial Banks in Rwanda

Abstract

The main objective of this study is to assess the effect of marketing strategies on financial performance in commercial banks in Rwanda, specifically in I & M Bank Plc. This study has the following specific objectives, to assess the effectiveness of marketing strategies used in I & M Bank Plc, to analyze the financial performance of I & M Bank Plc, and to evaluate the effect of marketing strategies on financial performance of I & M Bank Plc. This research is descriptive research design, and the study population comprise 150 employees that deal with the variables under study in I&M Bank, and the sample size of 109 respondents were sampled using purposive sampling technique. The researcher used a questionnaire to collect primary data in this study. Financial analysis were utilized to gauge the financial performance of I&M Bank, while multiple regression was used to test hypotheses. To compute and analyze the data in this study, available statistical product for service solution (SPSS 27) was used. Marketing strategies exhibits a very strong positive correlation with Financial performance (r = .989, p < .01). Regression analysis revealed that Marketing strategies contributes 98.6% on the financial performance in I&M BANK PLC. The F-calculated was 7681.087 and was greater than the F-critical and the p-value was 0.000, implying that Marketing strategies has significant effect on the financial performance in I&M BANK PLC. On the basis of findings, the study concluded that I&M Bank Plc uses moderately effective marketing strategies, that I&M Bank has performed well in terms of financial performance, and that there is a statistically significant effect of marketing strategies on the financial performance of I&M Bank Plc. The study recommended that I&M Bank Plc. significantly enhance its use of data analytics in digital marketing.