ABSTRACT
This study is designed to reveal to banks especially the three
selected commercial banks, the importance of marketing in the banking industry.
However, because of the increase in competition in the industry these days,
banks are marketing conscious and are restless in their services development
and innovation pursuits. This study is set, to determine the role (s) which
marketing plays in banking activities.
However, the sample survey method was used to gather information from
bank staff and customers of First Bank Nig. Plc., Union Bank Nig. Plc., and
Chartered Bank Nig. Plc., all located in Onitsha metropolis. Some selected
customers and bank staff were used in the formulation of sample size of 80 for
the customers and 86 for the bank staff. The researcher tested the hypotheses
through the use of chi-square and presented the results in tables reflected in
chapter four.
However, after analyzing the various data gathered, the researcher came up with the
following findings. That First Bank of Nig. Plc., Union Bank Nig. Plc. And Chartered
Bank Nig. Plc., Onitsha
are marketing oriented banks and
undertake many marketing
functions.
There are good cordial customers relationship between the banks and
their customers, hence the institution and designation of the position of
relationship marketing officer in these banks. The banks are customer oriented
and have integrated marketing in their operations arising from the adoption of
marketing concept.
In the light of the foregoing, the following recommendations were made,
viz:-
2. That Banks must find out what the customers wants are, and develop
profitable products and services to meet them so that satisfied customers are
guaranteed to enable them remain leaders and maximize profits.
3. That bank must restructure and harness the benefits arising from
re-engineering, through training and development of their human resources.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Engaging an expert with marketing orientation in a bank many
years ago would have been considered a misnomer. This is because marketing was
considered applicable only to goods and not services for which commercial banks
belonged. In order words, banks are now fully marketing conscious and have an
equipped marketing department with an expert in the field at the helm. However,
before inept insight on “the Role of Marketing in the Commercial Banks in
Anambra State” a purview of the development of commercial banks industry in
Nigeria is necessary.
The business of modern banking started in Nigeria in1892 with
the establishment of African Banking Corporation. The bank existed for two
years and had its assets and liabilities taken over by the bank of British West African in 1894, which later changed to the Standard Bank and
is now known as the First Bank of Nigeria Plc.
In 1917, Colonial Bank (Barclays Bank and now Union Bank of
Nigeria Plc.) was established.
Other banks that were established during the Neophytic
banking era include, the Nigeria Merchant Bank (1931), Agbommagbe Bank, 1945
(now Wema Bank), the African Continental Bank Plc (now ACB International Bank
Plc. 1947) to mention a few. The failure of many banks during the outset of the
neophytic banking era led to the regulated banking era of 1952. it is on record
that the activities of these banks centered on commercial banking with much
emphasis on the financing of exports and imports activities and does not
contribute much on industries until recently.
Nigeria has got to the realm of world awareness with amazing
speed in the recent past. The present economic situation in Nigeria portrays
different pictures to what the situation was some twenty to thirty years ago;
hence, it caught the fancy of many industries and commercialists from
every sector of the global activities.
There is the changing industrial and technological landscape
in the attempt to diversify the economy, the changing management and
administrative technique in all the sectors, the increasing international
outlook of the business sector and above all, the changing tastes expectation
and increasing sophistication of the people all of which have had tremendous impact
on the marketing of goods and services in Nigeria.
Marketing has increasingly become necessary in today’s banks
competitive environment. Competition from other financial institutions has
forced banks to think seriously on effective competition. This has made them to
pay increasing attention to marketing techniques required for banking services.
However, as emphasized by FOLUSO OLALUSI (1989) in his book,
“The practice of banking” the marketing of banking services relate to
identifying and stimulating client needs which can be profitable satisfied by the banks”.
Marketing search light in banking focuses on increasing the deposit base of the
banks and inducing credits worthy customers to borrow at a profit.
This differ clearly from marketing of goods which is merely
to stimulate customers into buying while the banks ‘buys’ the deposit of
customers, it again ‘sells’ the deposit to borrowing customers at a rate
slightly higher than the price paid for the deposit. In other words, banks lend
at a rate slightly higher than the prime rate.
The need for the marketing of banking services has become
necessary as a result of the continuous change in the social economic
technological and political environment and this has effect on the shape and
nature of markets served by the banking industry. Equally, the increase in the
number of banks and other financial institutions and their operating branches
has given rise to competition among institutions producing financial services.
Also, banks operate in a near perfect market. No bank can substantially
influence the homogeneity in services rendered.
Therefore, the marketing of banking services by the
commercial banks require a calculated and planned orientation with best blend
and effective marketing mix to know what, who, where and how to tackle this
over dynamic situation for the survival of the banks and the achievement of
their corporate objective. No wonder Joseph C. Massie 1979 describes marketing
mix as the apportionment of effect and the combination designed and integration
of the element of marketing into a programme which on the basis of appraisal of
the market forces will best achieve the objective of an enterprise in a given
period. The marketing mix includes pricing, product, promotion and
distribution.
Marketing of banking services is not just seeing the services
from the eyes of the bank users, but also being in the right market at the
right time with the right service at the right place. This entails planning,
support of top management, improved trend in banker – customer relationship
and organization of wide acceptance of the marketing philosophy.
The introduction and adoption of the concept of marketing
principles as they apply in the marketing of bank services would therefore,
help the commercial banks in general to have an edge over their competitors.
1.2 STATEMENT OF
PROBLEM:
Banks do not consider marketing necessary. But with
competition, changing taste, desires and needs of customers, banks are now
marketing conscious and they are up on their toes, in their attempt to deliver
value to their customers.
However, it looks like most banks have not adopted the
marketing concept, or integrated Marketing in their operations.
Therefore, banks need to be customer oriented in order to
create and maintain customers, whose patronage will always be assured or guaranteed.
In the light of the foregoing, it has become necessary to
determine the role (s) which marketing play in commercial banks vis-à-vis the
three selected banks under study.
1.3 OBJECTIVE OF
THE STUDY
This topic has been chosen because marketing of banking
services in Nigeria is now facing serious competition. However, this study is
aimed at finding out the following: -
1. To find out the role which marketing plays in banking
activities.
2. To find out why are there slow procedures for granting bank
facilities.
3. To find out the extent to which marketing concept has been
adopted by commercial banks.
4. To find out whether there are qualified marketing
professionals in the banks.
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Item Type: Project Material | Size: 81 pages | Chapters: 1-5
Format: MS Word | Delivery: Within 30Mins.
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