DETERMINATION OF PROMOTIONAL STRATEGY FOR ORGANIZATIONS IN THE NIGERIAN INSURANCE INDUSTRY USING THE AHP MODEL
Several studies have revealed that insurance companies are experiencing low patronage, and these studies have recommended the use of promotional strategies to create awareness and to boost customer patronage. Research has revealed that there are seven basic promotional tools that most companies in the service industry can use in their promotional mix. Thus, this study applied the Analytic Hierarchy Process model (AHP) to assist managers in Nigerian insurance companies in developing a promotional strategy by determining the best mix of the promotional elements to use given certain criteria. To achieve this goal, a survey approach was used. A multistage sampling technique was used to select a sample of sixteen insurance companies out of a possible 59 companies in the Lagos metropolis, and questionnaires were administered to managers of these companies. The study revealed that the major promotional tools best suited for companies in the Nigerian insurance industry are advertising, direct marketing, personal selling and publicity. Thus, in developing their promotional strategies, these companies should invest more in advertising, direct marketing, personal selling and publicity while investing minimally on public relations, sales promotion and sponsorship.