International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Promotional Strategies and Sales Performance of Insurance Companies
Kinoti, P. N; Dr. Nkari, I. M; Kathuni, L. K.

Promotional strategies play a key role in sales performance of any institution. Insurance products are generally difficult to sell and require well thought out marketing strategies that will include persuasive promotional activities. A survey by Insurance Regulatory Authority (2013) found low consumer demand for insurance products as the biggest challenge to the growth of the industry in Kenya. Engaging in promotional activities is costly and the results uncertain. Hence the purpose of this study was to determine the effect of promotional activities on sales performance of Insurance companies. The study was guided by the following specific objectives: to determine the effect of sales promotion, advertising, personal selling and public relations on sales growth of insurance companies. The study adopted a descriptive research design. The population of the study comprised of the branch managers, unit managers and salespeople of insurance companies operating in Embu County, Kenya. The sample size of the study was 175 respondents. A response rate of 85.7% was achieved. Data was analyzed using both descriptive and inferential statistics. Overall, the study established that promotional activities significantly affected sales performance of insurance companies even though at an individual level, public relations did not have any significant effect on sales performance. The study recommends that insurance companies should engage in maximum utilization of the entire promotion mix to enhance sales growth. The study suggests that further research be carried out to determine the effect of the entire marketing mix on sales performance of the insurance and other related industries using different performance measurements. Future researchers will utilize this study as a reference point. Policy makers can reference the study in formulating fiscal policies for the insurance and overall financial sector.

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