Digital Marketing and Growth of Commercial Banks in Tanzania

Abstract

Digital marketing is very important to commercial banks and there are few studies conducted in the field. This study aimed at assessing the influence of digital marketing on growth of commercial banks in Tanzania. Specifically, the specific objectives were to examine the effect of search engine marketing (SEM) on growth of commercial banks, determine the influence of social media marketing on growth of commercial banks and to evaluate the contribution of mobile app marketing on growth of commercial banks. The study was guided by the Technology Acceptance Model based on the Theory of Reasoned Action and supported by the theory of diffusion of innovation. A cross-sectional research design was adopted and the target population included 100 respondents whose sample size involved 78 respondents. Data were collected by using questionnaires and through interviews while Descriptive statistics was used with SPSS and multiple linear regression models were used in analysing data. Findings indicated that search engine marketing had no influence on bank growth. The study further found that social media had influence on commercial banks growth in terms of increase in number of customers and loan portfolio. Moreover, the study found that Mobile apps marketing had a positive and significant influence on growth of banks in both loan portfolios and increase in number of customers. The study concluded that digital marketing has a significant or positive influence on the commercial bank growth and the study recommended that CRDB bank and Banking sector inside and outside of Tanzania should be digital marketing and how potential customers can be reached and be able to maximise their digital marketing which in turn will maximises their sales and be able to grow and become more competitive. 1 CHAPTER O