Effects of Aggressive Marketing on Market Share in Banking Industry

Abstract

Despite of lowest deposit rates of 0.6% TCB it’s not found among of the ten commercial bank with large customer base and wide branch network that means merging reason had not yet observed as to enhance banks’ market share. This thesis aimed to assess Effects of Aggressive Marketing on Market Share in Banking Industry (A Case of Tanzania Commercial Bank-TCB Bank Plc in Arusha). The theory guiding this study was Porter (1980) argues that competitive advantage is the superior position a firm whereby to this proposal is commercial bank occupies in a market versus its competitors, then Resource Based theory. This study opted on quantitative research design while sampling method employed both purposive and simple random. Regression showed that, the model fit well as prob ˃ F value was 0.0000 less than 0.05 significance level, which implied that regression model signifies to explain market share, although the result was more significant to in-deep product analysis since t-statistic value was 3.95 above 1.96 threshold and p-value was 0.000 less than 0.05. Hence, finding reveal that in-deep product analysis was statistically significant to explain market share in Banking industry. Study concluded that conducting in-depth product analysis enhanced competitive advantage, attract and retain customers, and manage risks effectively. Banks in Tanzania should consider investing in research and development specifically for prior product analysis before launching product to the market to stay responsive to market demands and gain a competitive edge. Key term: Market share, Aggressive marketing and Banking Industry