THE EFFECTS OF INTEGRATED MARKETING COMMUNICATION ON ORGANIZATIONAL PERFORMANCE IN THE CASE OF LION INSURANCE SHARE COMPANY

Abstract

The purpose of this study was to examine the effect of integrated marketing communication on organizational performance in the case of Lion Insurance S.C., Addis Ababa city, Ethiopia. Moreover, the study tried to investigate the relationship between Integrated marketing communication and organizational performance. IMC tools i.e., advertising, sales promotion, personal selling, public relation and direct marketing were used to evaluate the effect on organizational performance. In order to achieve the objective of study, explanatory research design was chosen. Also, quantitative research approach was implemented. Convenience sampling technique was used to select 114 employees who served as respondents in the study. The Correlation result indicated that there is a positive and significant relationship between all Integrated marketing communication tools and organizational performance. Also, multiple regression analysis result revealed that except sales promotion and public relation the remaining three dimension had positive and significant effect on organizational performance. Besides, it is found that advertising tool of IMC has the highest influence on organizational performance in Lion Insurance S.C. From the analysis the researcher recommends that Lion Insurance should give priority for the proper implementation of advertising aspect of IMC dimension than other dimensions because this dimension has highest effect on organizational performance. Finally, the company have to implement most important dimensions appropriately and continuously, as a major tool for gaining competitive advantage which in turn leads to customer satisfaction.