Demystifying the potency of marketing strategies as a tool for creating competitive advantage in challenging times

Steven Kayambazinthu Msosa (kayambazinthu@outlook.com), Thembisa Charity Khuboni (khuboni.thembisa@mut.ac.za), Siyabonga Maphumulo (mashumanefire@gmail.com) and Bhekabantu Alson Ntshangase (ntshangase.alson@mut.ac.za)
Additional contact information
Steven Kayambazinthu Msosa: Mangosuthu University of Technology, South Africa
Thembisa Charity Khuboni: Mangosuthu University of Technology, South Africa
Siyabonga Maphumulo: Mangosuthu University of Technology, South Africa
Bhekabantu Alson Ntshangase: Mangosuthu University of Technology, South Africa

Insights into Regional Development, 2024, vol. 6, issue 1, 74-88

Abstract: The COVID-19 pandemic has caused unexpected shocks to several sectors of the economy, including the insurance industry. The devastating effects of the pandemic have also affected the marketing model and the strategies' effectiveness. Therefore, this study sought to demystify the potency of marketing strategies as a tool for achieving competitive advantage in challenging times. An exploratory and qualitative research design was used to gain in-depth insight into the motivations and perceptions of a purposive sample of 15 insurance customers. Thus, interviews were conducted to gather data to determine the potency of the marketing strategies. The research findings showed that different companies used various marketing strategies, resulting in varying customer satisfaction. Some companies used low-cost strategies, while others focused on product differentiation strategies. It was further found that most customers prefer a lower price and reliable service from trustworthy insurers. In addition, it was noted that companies with high customer satisfaction levels outperformed their competitors and achieved a competitive advantage in the short-term insurance sector. This sector is customer-centric, so a higher emphasis must be placed on delivering quality service and customer satisfaction. Consequently, companies in the insurance sector will be able to keep customers satisfied over long periods and ultimately achieve customer loyalty. The study elucidates the pathway for insurance companies to navigate challenging times successfully by focusing on delivering quality service and nurturing customer satisfaction for long-term loyalty.

Keywords: marketing strategy; COVID-19; competitive advantage; marketing mix; insurance industry (search for similar items in EconPapers)
JEL-codes: L20 L26 L53 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://jssidoi.org/ird/uploads/articles/21/Msosa_ ... hallenging_times.pdf (application/pdf)
https://jssidoi.org/ird/article/157 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouird:v:6:y:2024:i:1:p:74-88

DOI: 10.9770/ird.2024.6.1(6)

Access Statistics for this article

Insights into Regional Development is currently edited by Manuela Tvaronaviciene

More articles in Insights into Regional Development from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene (manuela.tvaronaviciene@jssidoi.org).