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Market competition appears to be a common affair between companies which are
profit focused. This study examines the role of marketing in the profitability of the
insurance companies. The specific objectives of this research were to find the impact
of advertising on sales volume of the insurance companies, to assess the role of
advertising in the customer’s buying behavior especially for insurance products and
to find out the role of advertising on wining market competition. The research used
both qualitative and quantitative approaches where both stratified and purposive
samplings were used to obtain a sample. Both primary and secondary sources were
used to collect data. Primary source used questionnaire and interviews, and
secondary source consisted of obtaining related data from written sources both
published and unpublished reports, books, journals, articles at various documentation
centers in Dar es Salaam.
The findings show that 5 (50%) of the managers and 18( 60%) of the customers
strongly agreed .The finding imply that the customers and managers strongly agree
that the longer the time in which the product has been in the market the higher the
product awareness to the consumers and therefore the higher the purchase of that
product. The repetitive purchase of the product increases the sales volume and
ultimately leading to the growth of the company’s profitability. Advertising can
contribute to the increase of sale, this is due to the reason that it will publicize the
product, make it widely known and influence the behavior to buy the product, create
retention of the customers and maintain loyalty of the customers to the product and
ultimately lead to the increase of the sales volume.
However the advertisement is necessary to remind the customers and stick the
product into the minds of the customers. The firm should also ensure that advertising
agencies place their product adverts on stations and places where the consumers will
easily identify with them make a decision to buy a product. A good advert should be
effective, persuasive and contain the necessary information on the products |
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