1.1 BACKGROUND OF THE STUDY
The importance of effective marketing of services in the Nigeria banking industry is only being realized in the part, marketing was not linked to services industries like banking, insurance, law etc.
In recent years however, marketing activities is the banking industry have acquired increased importance assuming a new dimension and attraction more than attention. The reason for this phenomenon is easy to appreciate, for competition in banking has increased.
Apart from increase in the number of banks, other financial institutions exist and after certain services capable to those offered by commercial banks. This competition this arises as a good condition for ie to exist, such other financial institution includes saving and loan association credit venous, mutual funds, investment clubs, and even the money lending institution and credit cooperative societies, the have also increased, multiplied and expanded their services based to intensity their competition too demand and time deposits etc, from their customers or numbers. They are seen as strong competitors to banks, they operate within environments where the clients know them and rather chose to patronize them either because of nearness of fauritsarity or even a good setting for personal selling and convictions.
Added to the above, it should be realized that the bank customers has become quiets sophisticated in his need of the non-basic service of commercial banks through a greater percentage of the population is yet to non and avail themselves of these services which these have.
For these reasons, marketing which has an important roles to play is any organization does this for the banks to over come all these, the banks must adopt to the changing environment and requirements of their customers. As it is known, operation orientation has dominated the banking activities while marketing has not played any significant role since it is regarded as part of public relation or ordinary advertising
The stock in trade of commercial banks in Nigeria is the provision of financial services to their customers. These services of their customers include depositing services comprising of collection and payment of cheques bills and premium etc. granting of credit facilities by giving loans and overdrafts acting as trusties and executors, issuing of banker’s draft, buying and selling of stock and share among others.
All these services constitute the commercial banks product mix and the way and manners in which these banks tailor the above service constitute their marking strategies, these marketing strategies includes the attitude of their staff otherwise called personal selling quick or prompt attendance to customers, opening of more branches conducting their banking is clean and benefiting creation of good public image, good publicity etc.
Then looking at the way and manner bankers services are being rendered in Nigeria today. It should be observed, and is nothing near the required standard. There will exist traces of the proved arm chair banking” the banks provide very poor conveniences to customers and even treat them with levity as the banks staff behave it is right to deliberately delay customers resulting from their nonchalant attitude to work. The resultant effect of all these is the long queues noticed in the banks even from cashy ordinary cheques or withdrawal or deposit from a savings or current account, converting new cheques books or pass books etc. the question of getting cheques takes weeks and months while loan request and approval run into months and years.
The customers feel dissatisfied and express this through their criticism of the banks and sometimes closing their accounts with the banks while others refuse to have anything to do with these banks. These effects the money supply, which is still is currency with the ratios of bank money to money supply varying between 49% to 60% in recent times.
Loss of customers and liability to get new prospective customers effect the banks liquidity position also, so is the light above the other unmentioned maladies play the banking scene. It is seen that banks should not intensify their marketing activities and mend their attitude to their customers for better.
They should need to the advise of customers so that banks now have to cultivate the habit of marketing their services in a way to improve and promote their image. Thus helping to increase their patronage by existing and intending depositors.