Effect of Marketing Innovation Strategies on the Competitive Advantage in Tanzania banking industry: A case of Tanzania Commercial Bank in Mwanza City
This was supported by four specific objectives: to examine the effect of product innovation on the competitive advantage of TCB, to determine the effect of pricing innovation on the competitive advantage of TCB, to examine the effect of distribution channel innovation on the competitive advantage of TCB and to determine the effect of promotion innovation on the competitive advantage of TCB in Mwanza City. To ensure these objectives, the study adopted a descriptive research design incorporating a quantitative method approach. It took a population of 98 that comprised of TCB employees and owner/managers of TCB agents in Mwanza City and data was gathered using a structured questionnaire. Data analysis was conducted with the aid of SPSS software program version 26.0 where both descriptive and inferential statistical analyses were performed. The specified hypotheses were tested using regression analysis.
The overall findings of the study revealed that marketing innovation strategies have a positive effect on the competitive advantage of TCB. Three variables of product, price, and distribution innovation strategies each have a positive significant effect on the Bank gaining competitive advantage while promotion innovation strategy showed a minor contribution towards competitive advantage. Product innovation strategy has the highest effect on competitive advantage.
The study, recommended among others that TCB should continue developing a wide range of customer-tailored products ahead of the competition to meet changing customers’ needs and technology, strengthen partnerships and alliances, with supplier companies such as fintech companies, technology providers, and other financial institutions to get access to new technologies and innovative product ideas. The study also recommends TCB to implement transparent and customer-centric pricing models as well as enhance customer personalization using data analytics.
Keywords: Competitive advantage, Product Innovation, Pricing Innovation, Distribution Channel Innovation, Promotion Innovation.
