The Effects of Marketing Strategies on the Performance of Private Insurance Companies in Ethiopia.

Abstract

The major objective of any business establishment is to remain in business profitably through production and sales of products or services. Without optimal profit, a business firm cannot survive. One of the core activities in a business company to stay in business is having a welldeveloped marketing strategy. The ultimate success or failure of a company depends on its marketing strategy. So, the strategy should be developed, implemented and evaluated effectively to achieve the company’s objectives. So all in all the researcher is trying to see the overall effects of the marketing strategy and its relationship with the performance of insurance companies by measuring the performance based on the gross written premium. The purpose of this study is to determine the effects of different marketing strategies on the performance of insurance companies in Ethiopia. The data was collected from the marketing managers, Marketing Officers, Senior Marketing Officers and Marketing Department Staffs of all the insurance companies to gain wide representative of the sector. The finding of the study indicates that Promotional strategies have the greatest influence on insurance company’s performance rather than pricing and distribution channels. It also indicates that using new technology (Innovation) in insurance companies must be given due attention if insurance company’s wants to raise their Performance (Gross Written Premium). Based on the result obtained in the analysis and conclusion made: the researcher recommended that private insurance companies should make effective promotional strategies and also trainee Professionals to develop new Technology to give the services on line and make new Product development as well as product differ nation (New Insurance Polices) in order to increase sales volume (Gross Written Premium).