THE EFFECT OF PROMOTIONAL STRATEGIES IN THE MARKETING OF BANK SERVICES
(A CASE STKUDY OF URBA PLC ENUGU)
Promotional strategies is a process deal with the technique used by organization in inform, persuade and eduate the public through the promotional mix.
Moreover pormotioal strategies does not only promote tangible products but also it promotes ideas, services, personalities etc. it also presents want, satisfying attribute of a product or service to the consumers.
The research work titled “the effect of promotonal strategies in the marketing of bank service” a case study of UBA PLC, was carried out with the objective of determining the effect of promotional strategyin the quality of service and also to find out how promotions has assisted the bank in its achievement in the service industry to find out if the increase in customer patronage was as a result of promotional strategy, to find out if promotions persuade and reminds customer of UBA PLC services and lastly to find out if promotions keep customer aware of the product and service of UBA PLC.
In achieving the above objective some related literature were reviewed on the effect of promotional strategy on the marketing of bank services
In this research work the major instrument used is questionnaire administered on two population ie management and customer of the bank this was supplemented with personal interview.
According to the questionnaire collected and interview conducted relevant data were analyzed and hypothesis tested. The analyzed data brought out the following; that promotion create positive image for the bank, that most people in Enugu metropolis are aware of UBA Plc, increase profitability and customer patronage.
Based on the funding the following recommendation were made: UBA should carry out promotion regulartly since it increase sales, patronage, profitability, builds brand image and other benefits.
Also the bank should utilize the marketing variable, strategies and concept. In summary UBA Plc have to use all the marketing principles for continued survival and sustenance in business.
The effect of promotional strategies on the marketing of bank service (a case study of United Bank for Africa plc)
In this study the researcher will take an in-depth look at the effect of promotional strategies on the marketing of bank services.
This research work will be grouped as follows.
List of table
Background of the study
Statement of the problem
Objective of the study
Significance of the study
Scope / limitation of the study
Review of relevant literature
Background of the study
The research will review the background of the problem and benefits of promotional strategies associated in the marketing of bank service and will also trace various attempt made in the past to solve the problem that faced the bank, this gave rise to the present research study.
The researcher will equally use the finding in solving the problem.
Statement of the problem
The researcher will state in a very clear and concise term the actual problem to be solved through the study.
In this study the main problem is the effect of promotional strategies in the marketing of bank service, its problem and solutions
Objective of the study
Through this research work there will be a clear state of objective to be accomplished, so that the usefulness of the study can be effectively be appreciated by the readers. The extent the study meet the objective will determine the success of the project.
The hypothesis on this work will formulated based on the objective of the study, this will give focus to the study
Significance of the study
According by Odo etal (1992) stated that the “significance of a study simple means how the different readers or users of the project will view the study.” Therefore the different target group to which the study will be presented to, will benefit greatly from the work.
Review of relevant literature
At this level the researcher will conduct library research on text books journals, magazines and other publication on related topic to the topic under study.
List of reference / bibliography
This will have a comprehensive list of books, journals and newspaper used in the course of writing the project. This has to be done in a alphabetical order using Harvard style of references
Under this chapter the questionnaire used will be attached, including lost of table used in the research work.
1.1 BACKGROUND OF THE STUDY
Promotional strategy is an important arm of the total marketing system. The need to promote a product, service or idea cannot be over emphasized, this can be informed by the fact that a successful marketing out fit cannot be put in place without making mention of the promotional strategy used in achieving their objective.
The understanding of promotional strategy is closely tied to the understanding of the basic concept of marketing.
Promotional strategies involve the act of informing, persuading and educating through the promotion mix, which include advertising, personal selling and sales promotion. Promotions can also be carried out through public relations. These three elements of promotional strategy, persuading, informing and educating are related. In the sense that, to persuade is to inform and for these two to be effectives they have to be properly communicated. Promotion is in a way persuasive in nature more so to our socio economic system.
Neil (1982:10 – 5) of Harvard University puts it this way “the use of influence in commercial relation is one of the attributes of a free society, first as persuasive and counter persuasive are exercised freely in many walks of life, in our force society, in our home, in the press, in the class room on the pulpit, in the courts, in the political forum for information”. Going by this system approach, a company should handle all the promotional strategies as a sub – system within the entire marketing system, which include the 4ps in marketing; the product, the price, the place and the promotion. The sub system of the promotional strategy includes advertising personal selling, sales promotion, publicity and public relations.
Advertising as defined by Adirika etal (1996; p 106), is that advertisement is a paid form of non personal presentation and promotion of goods, ideas or service conducted through paid media under open or identified sponsorship.
Personal selling as defined by P.N Edoga in her book “principles and practice of selling that it is a process of determining the needs and want of a prospective buyers and presenting a product, service or idea in such a way that the buyer is motivated to make a favorable decision.
The Amercian marketing association define sales promotion as “those marketing activities, other than personal selling, advertising, and publicsity that stimulate consumer purchasing and dealer effectiveness such as display, shows and expositon, demonstration. And various non recurrent selling efforts not in the ordinary routine.
Public relations is a promotional activity which aims to communicate a favourable image of a product or service. It promotes good will massages from the organizational publics to the consumer, publicity on the other hand is tool on public relations. It is commercial throught the mass media. All the above mentioned activity creates awareness, achieve convictions, build preference, encourage action more to the audience. Promotional strategy is used to introduce new product or service, sustain an established one, create floor traffic for secure sales leads, demarket a service and promote public cause.
As regards marketing, it is the development of good product, pricing it attractively and marketing it readily available to the target audience with the support of its promion efficiently and effectively. According to Stanton (1975), market is a total system of business activities designed to plan, price, promote and distribute want satisfying products and services to present and potential customers.
Mc Carthy and Perreault (10th ED) said that marketing is a social process that directs an economic flow of goods and services from producers to customers / consumer in a way that effectively matches supply and demand accomplishes the objective of the society according to Kotler (1995) marketing is seen as a social and managerial process by which individuals and groups obtain what they need and want through, creating, offering and exchanging product of value with others.
In discussing marketing of services one has to first discuss service according to Busch and Houston (1985) service or ancillary services are subject to change because the greater the undifferentiated nature of the object of exchange the greater the importance. Again the more sophisticated the technology of a core product the greater importance of the service to the marketing of service. Service also ranges from those related to physical product attached an example is hotel accommodation in hotel rooms and pure services surgical operation or consultancy services.
According to Staton (1995) service is defined in a broad and narrow perspective. In narrow perspective service is a separate identifiable intangible activities which provides want satisfactory when marketed to consumer and other individuals users and which are not necessarily tied to the sale of a product or another services. In a broad perspective service is all activities, benefits or satisfaction which are offered for sale or are provided in connection with the sale of goods. Service comes in different form for instance entertainment, hair dressing, hotel services transportation etc
Service are classified into intangibility no matter how good the product, how reliable the service or how sensible the conceived idea, its existence will be unknown unless there is a concerted effort to make the needed information available. The information should communicate in a manner persuasive enough to induce the kind of acceptance, reaction or response desired the effectiveness of any promotional massage depends upon the skill, versatility and talent of the designers.
Services are not owned, stored nor live long. They are perishable as they are consumed at the point of production. It also varies in quality and quantity where the production is labour intensive, for its nature also service cannot be separated form its provider except when they relate to repaired goods and such service is directed to the body and mind. This makes comparism difficult. Also the shorter the life of a service the more incomparable it becomes.
Marketing of service is intangible which implies that service are untouchable but are felt or experienced. Based on this intangibility service can be tangibilised by recommendation probably made by already existing customers, emphasis on service benefit, developing of brand names by using brand marks, logo to depict the kind of service and using a well known person in celebrity in order to manage the evidence of service rendition.
At this juncture, marketing Mix has to be discussed as they related to this write up this include product, place, price and promotion that is 4ps in marketing it is a major concept in marketing.
Kotler (1995) defined it as the particular blend of controllable marketing variable that the form uses to achieve its objective in the target, market. Product planning and development gives the management direction on how to design its activities to enable it meet up its set objectives and at the same time increase its sales by developing new or improved product/ service. in distribution management select and manage the trade channel through which the product will reach the right quantity and quality and at constant monitoring and considering of location season and psychology of the customer is put into account, filing like payment period, credit terms, discount etc.
The process of matching product or service or idea with consumer need s is the main focuses at the marketing activities. A marketer should be quick at capitalizing on newly identified needs, marketing activities does not however end with the matching of product, service or ideas, consumer, should be persuaded that he match is a good one.
As Kincaid (1985:20-30) has it “of course, the marketing process does not end with the initial matching of the product must be made available to consumer and appear more desirable than competing alternative or substitutes” this is the major function of marketing. Getting to know of this existence of a product, service or idea
1.2 STATEMENT OF PROBLEM
The management and staffs of United Bank for Africa has been experiencing competitive pressures form other commercial banks, which has made them to encounter less patronage and decrease in sales of the bank service.
Service changes scientifically and technologically and so the new generation bank experience more patronage based on the modern techniques used to improve their services, they attained to customer faster. Based on this fact the UBA PLC management decided to adopt the new system of marketing in bank service so as to improve the banks performance.
The question in mind will be has the modern techniques i.e. promotion had any positive impact in building goodwill of the bank.
In order to answer the above question, the researcher intends to critically evaluate the effect of promotional strategy on the marketing of banks service.
1.3 OBJECTIVE OF THE STUDY
To find out how promotional strategy has assisted the bank in its achievement in the service industry
To determine the steps UBA PLC has taken to enhance the quality of service it renders
To find out if the increase in customer patronage is as a result of promotions
To find out if promotional strategy persuades the customer to patronize the service
To find out if promotional strategy reminds customer of the product or service
To find out if promotions keeps customer aware of the product / service of UBA PLC.
1.4 RESEARCH HPOTHESIS
Ho: Promotion has not persuaded customer to bank with UBA PLC
Hi: Promotion has persuaded customer to bank with UBA PLC
Ho: Promotion has not created positive image for the bank
Hi: Promotion has created positive image for the bank
Ho: Most people in Enugu metropolis are not aware of UBA PLC
Hi: Most people in Enugu metropolis are aware of UBA PLC
Ho: Promotions has not made the customer to remember the bank service
Hi: Promotions has made the customer to remember the bank service
Ho: Promotions has not made the customer to assess the quality of the service offered by the bank
Hi: Promotions has made the customer to assess the quality of the service offered by the bank
1.5 SIGNIFICANCE OF THE STUDY
Several authors have stated the need for all business entities to adopt the promotional concept in their various activities. Most companies do not really grasp or embrace the promotional strategies until they are driven to it by circumstance like;
Slow growth rate
Switching off by the customers
Increase in market expenditure
Management has been found disturbed as United Bank of Africa PLC faces severe competition among other banks. The researcher will study extent UBA PLC promotional strategy has contributed in winning the mind of its target audience to actualize increased customer patronage and increased profitability.
The significance of this study is that the management will after going through the research, will be well equipped on the most suitable promotional strategy to implement or adopt to combat their competitors
More so the general public corporate bodies, institutions, organization, government and individuals etc. will see the need of promotions in the marketing of its service, goods and ideas.
1.6 SCOPE OF THE STUDY
The scope dealt with the effect of promotional strategy as regards to marketing of bank service with respect of united bank for Africa PLC Enugu branch. Considering the fact that if the study should be carried out round the whole country it will be to wide and very expensive.
The study is then limited, based on the fact that there is limited material, fund and times to see the whole country so it’s been limited to Enugu state.
1.7 DEFINITION OF TERMS
Just like every other profession has its terminology so do marketing the following words used in the research work will be fully explain under this section of the research work .
According by Kotler (1991) defined marketing as a social and managerial process by which individual and groups obtain what they want and need through creating offering and exchanging product of value with other.
Banking is defined in the 1969 act a the business of receiving monies from out side source as deposit irrespective of the payment of interest and granting of money, loan and acceptance of credits or the purchase of bills and cheques or the purchase and sale of securities for account of others or the incurring of the obligation to acquire claims in respect of loans prior to their maturity or the assumption of guarantees and other warranties for other or the effective of transfers and clearing and such other transaction as the commission may on the recommendation of the Central Bank, by order publisher in the Federal Gazette designate as banking business.
The marketing concept holds that the key to achieve organizational goal consist in determining the needs and want of targets markets and delivering the desired satisfaction more effectively and efficiently than competitors
Services are any activity that can be offered for sale in exchange of money it can also be called auxiliaries or customer service. Service is the ability to delivery what is promised on time.
A product is something that is viewed as being capable of satisfying the buyers need and wants.
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