Abstract:
Most of insurance companies have failed to effectively gain competitive advantage
over their rivals as a result of lack of appropriate marketing strategies coupled with
environmental uncertainty. This is the problem that this study sought to explore. This
is because success of any organization is manifested in attaining a competitive
position or series of competitive positions. The general objective of the study was to
establish the effect of marketing strategies and environmental uncertainty on
competitive advantage of insurance firms in Kenya. The study was guided by the
following objectives: to establish the effect of marketing strategies (promotional
marketing strategy, customer relationship marketing and place marketing strategy) on
competitive advantage of insurance firms in Kenya and to determine the moderating
effect of environmental uncertainty on relationship between marketing strategies and
competitive advantage of insurance firms in Kenya. The study was guided by the
following theories; marketing mix theory and theory of push and pull. This study
adopted a descriptive survey research design. The target population in study was 138
branch managers of selected insurance companies within Nairobi County. The sample
size for the study was 88 branch managers of selected insurance companies within
Nairobi County. The study used primary data which was collected through selfadministered
questionnaires. The drop and pick method was preferred for
questionnaire administration so as to give respondents enough time to give well
thought out responses. The researcher personally administered the research
instruments to the respondents. Data was analyzed by descriptive statistics such as
frequencies, percentages, mean score and standard deviation were estimated for all the
quantitative variables and information presented inform of tables. Inferential data
analysis was done using regression and correlation analysis. The study found that
product marketing strategy (β=0.812 and p<0.05), customer relationship marketing
(β=0.712 and p<0.05), and place marketing strategy (β=0.568 and p<0.05) had
significant effect on competitive advantage of insurance firms in Kenya. The study
further established that environmental uncertainty had a significant moderating effect
on relationship between all the dimensions of marketing strategies (product marketing
strategy β=0.871 and p<0.05, customer relationship marketing strategy β=0.803 and
p<0.05, and place marketing strategy competitive advantage of insurance firms in
Kenya β=0.713 and p< 0.05. The study concluded that product marketing strategy,customer relationship marketing and place marketing strategy positively and
significantly affected competitive advantage of insurance firms in Kenya. The study
also concluded that environmental uncertainty significantly moderated the
relationship between marketing strategies and competitive advantage of insurance
firms in Kenya. The study recommends that insurance companies in Kenya should
develop more focused marketing and sales campaigns this will enable enables
marketers to plan marketing programs and campaigns and closely monitor results
using skills they already have.