MARKETING POSITIONING AND FINANCIAL PERFORMANCE OF MICROFINANCE BANKS IN NIGERIA

Authors

  • EKAKITIE-EMONENA, Sunny (Ph.D.) Department of Marketing and Entrepreneurship, Faculty of Management Sciences, Delta State University Abraka, Nigeria
  • OKWUISE, Uguru Young (Ph.D.) Department of Business Administration, Faculty of Management Sciences, Delta State University Abraka, Nigeria
  • OSUJI, Anthonia (Ph.D. Candidate) Department of Marketing and Entrepreneurship, Faculty of Management Sciences, Delta State University Abraka, Nigeria

Abstract

The study investigated effect of marketing positioning on financial performance of microfinance banks in Nigeria from 1992-2021. The study adopted the Longitudinal Research Design. The market positioning proxies considered are: mono-segment positioning, multi-segments and adaptive positioning. The study used the content analysis to measure the  each of the marketing positioning while the dependent variable (financial performance) was sourced using the aggregate return on asset of all microfinance banks in Nigeria. The data obtained were analyzed using Regression Analysis. E-view software package was used for the regression analysis. The study considered four (4) main pre-estimation tests which are Variance Inflation factors-VIF, Ramsey Reset Test-RRT; and Heteroskedasticity test-HET. The result reveals that, market positioning (mono-segment positioning, multi-segments and adaptive positioning) are positively significant and defensive positioning is negatively significant on microfinance banks’ performance. The study recommends that, microfinance banks the microfinance banks should devote more of their resources to attracting a single, narrowly defined type of customer. This is with a view to meet the specific needs of their customers. The study contributed to the extant empirical investigation on market segmentation and financial performance of microfinance banks in Nigeria.

Keywords: Marketing Positioning, Financial Performance, Microfinance Banks, Mono-Segment Positioning, Multi-Segments, Adaptive Positioning.

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Published

22-11-2023

Issue

Vol. 1 No. 2 (2023)

Section

Articles

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