Abstract:
The study intended to assess the promotion strategy effectiveness on sells effects on
advertising in Zanzibar Insurance Corporation. The study used descriptive research
design with the combination of mainly quantitative but also qualitative approach was
also applied. The sample size of the study was 30 staffs within departments of
Zanzibar Insurance Corporation. The data was collected through semi-structure
questionnaires and data analysis was done using quantitative technique of SPSS
computer program and qualitative method using data organizing and interpretation.
Either, the study used regression and correlation analyses to investigate the
relationship between advertising and sales from a 10 year historical data obtained
from the audited annual financial statements.
It was also found that, promotion strategy effectiveness was not established at ZIC. It
was also found that, the Corporation did not involve its representatives and agents in
decision making on advertising strategies that ought to serve their geographically
dispersed market segments. Thus, imprudent promotion strategy curtailed rational
decisions on the choice of relevant marketing media and deprived advertising budget
adequacy. The common advertising media which is mostly used is radio, brochures
and TVs. The management is not perceived enough to prepare annual advertising plan
and program. Evaluation of advertising campaign and financial expenditure for
advertising only conducted within headquarter Zanzibar. Consequently, the explored
promotion strategy imprudence is an attribution in the t-statistics (0.92) showing
linear relationship.
Finally, the study recommended that Zanzibar Insurance Corporation to improves
prudence of corporate promotion strategy to enhance the sales-effect of advertising.
The Board of Directors should direct the formulation of articulate corporate
communication and promotion strategy within the corporation. The marketing
department in association with other departments and other local staffs should prepare
the communication/promotion strategy document to reflect the provisions of the
Corporation’s strategic plan on the role of marketing. The Zanzibar Insurance
A corporation must prepare and adhere to advertising policy, programs, and annual
implementation plans. Finally, the study recommends that the Corporation needs to
strengthen its marketing department by placing qualified marketing official in each of
its branches.
