THE APPLICATION OF MARKETING CONCEPT IN BANKING INDUSTRY
(A STUDY OF UBA PLC WARRI)
The banking industry is undergoing a period of transformation and this requires new orientation on the part of banks. In this new competitive environment, banks have to re-think in their total marketing strategies and come to terms with the necessity for marketing of services. The objectives of this study is to determine if the bankers are effectively customer oriented to meet the challenges posed by the changing environment and to determine the marketing philosophy or orientation of the banks (represented by their employees) vis - a – vis current happening in the industry in course of the literature review five distinct marketing philosophies were identified. The marketing philosophies of banks are represented by their employees and customers were found not to be effectively customer oriented. The conclusion of the study is that marketing concept is not effectively practiced by banks. The hypothesis is that the marketing concept orientation in bank is dependent on their marketing training environmental factors , such as competition in banking, government policy, technology in banking, legal provision, banking culture, client behavior and the bank present marketing concept is bad and could not be disproved, thus they were accepted. Recommended strategies for introducing and establishing marketing task force and getting managing directors of chief executives, that is market oriented to initiate the move. The argument for a marketing orientation has to be close to it customer in order to identify their whole organization towards satisfying them better than their competitors.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Significance of the Study
1.5 Scope of the Problem
1.6 Research Question
1.8 Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
2.1 Definition of Marketing
2.2 Company Orientation towards the Market Place
2.3 Marketing of Service
2.4 Managing Service Quality
2.5 Marketing of Bank Services
2.6 Bank Marketing in Nigeria
2.7 Marketing Approach to Banking Services
2.8 Marketing and the four P’s
2.9 The need for Marketing Training
Chapter three: RESEARCH METHODOLOGY
3.1 Research Design
3.2 Population of Sample
3.3 Sample and Sampling
3.4 Data Collection Instrument
3.5 Method of Analysis
CHAPTER FOUR: DATA PRESENTATION, INTERPRETATION
4.2 Result of Banker’s Questionnaire
4.3 Result of Customer’s Questionnaire
CHAPTER FIVE: SUMMARY OF FINDING, CONCLUSION
5.1 Summary of Findings
5.3 Recommendation of the Study
1.1 BACKGROUND OF THE STUDY
The banking industry is undergoing a period of transformation and this requires new orientation on the part of the bank management. There is general agreement that the role of marketing in every organization cannot be over emphasize.
According to Kotter 1980, marketing is important not only to economic institution such as manufacturing industries, wholesaler, retailer but to all organization “that have something to sell” this statement suffice to self with the conceptual managerial philosophy of marketing which recognize that organizational effectiveness are functions of identifying varying customer or client needs better that those competitors (Aluko etal 1979). While (Meccure 1989) define bank marketing as the part of management which seeks to direct flow of banking services profitably to selected customers.
The banking Act of 1969 see banking as involving receiving money from outside sources as deposit irrespective of payment of interest or the granting of money loans and acceptance of credit or the purchase of Bule cheeps or the purchase and sales of securities on the account of others or the incurring of the obligation to secure claims in respect of loans prior to their mature or the assumption of guarantee and other warrantees for others or the affecting of transfer and clearing of such other transaction on the recommendation of the central bank, by order published or federal gazette designate as banking business.
The increase need for marketing in banking system from the growing changes in the industries has heightened competition is often said to be product of marketing competition in the banking industry is not limited to banks, but include competition from such other financial institution as insurance, saving and loans, banks and building societies.
The success of banks in the turbulent competition and volatile business environment will largely depend on the ability to complete successfully, In order to complete successfully, favourably and survive to achieve corporate objectives, therefore bank should not only result in the efficient utilization of resources but by so doing a considerable competitive advantage might be achieved and sustained by practicing bankers. It is disserting however to observed that in spite of available evidence and like nature on the great advantage provided business organization with the successful application of marketing concept most banks in Nigeria are still at the first stage of the marketing orientation (product concept).
Some however, have risen to the third stage (selling concept) which is considered the best stages at banking industry in a nation economy which includes the provision of equitable banking therefore, that they might administer their marketing activities effectively and efficiently.
They are required to accept aimed at consumers superiority by offering maximum services and demonstrating that these services are superior to those offered by other competing institutions.
The marketing concept according to Kottle (2006) “holds that the key of achieving organizational objectives consist in determining the need and wants to target market and delivering the desired satisfaction more effectively and efficiently than competitors” this should be from the integral part of corporate objective of banks.
Banks have to go out to approach client requiring services, the services must be offered to the maximum satisfaction of existing and potential customers. The fact is a revolution of transition from passivity and quite solid discretion to active and purposeful aggressiveness.
1.2 STATEMENT OF THE PROBLEM
Over the years, banks customers have been complaining about the poor quality of services they receive from their banks. This is why the researcher wants to find out empirically why the banks do not provide quality services to their customers.
1.3 OBJECTIVES OF THE STUDY
The objective of applying the marketing concept into the banking industry is:
1. To serutimize the marketing concept by exhibiting reasons why the banking industry should adopt it.
2. To make a possible forecast on the degree of customers satisfaction vis – a – vis bankers customers relationship when modern marketing concept is adopted.
3. To examine customers awareness of the range of banking services.
4. To examine the perception of the banker to the adoption of the modern marketing concept.
5. To assess the level of customers satisfaction with the banking services they have recurred.
6. To sentinize the obstacle both internal and external which tend to militate against effective marketing of banking services in Nigeria.
7. To suggest ways in which bankers can effectively and efficiently apply the marketing concept that will able them satisfy their present and potential customers.
1.4 SIGNIFICANCE OF THE STUDY
The banking institution is important in the economic life of any nation. The business of banks is the provision of service and this depend entirely on customers for this existence study will review some characteristics and strategy of bank marketing in the banking industry.
The information obtained from this study may also highlight that short coming of bank on the awareness of bank marketing which will in turn enable them improve on their services complete more favourable, develop the positive attribute of bankers to bank marketing vis-à-vis the adoption of marketing concept in other to realize corporate objective. Finally, it is hoped that further knowledge obtained from this study will help in providing a theoretical premises upon which future research in this area could be based.
1.5 SCOPE OF THE STUDY
The study focuses on the application of market in concept in the banking industry with a study of united bank for Africa (UBA) plc warri.
The study is to show that a successful application of marketing concept to the economic institution can also be applied in the banking industry.
1.6 RESEARCH QUESTION
The research question is to enable us look into and suggest solution to such question as:
1. Are banking employees market oriented?
2. Are banking employees adequately equipped to meet the demand made on to them by customers?
3. Is marketing received as a collection responsibility by all employees of the bank?
4. Are banks connected in improving quarterly service?
For the purpose of this study the following hypothesis will be tested.
Ho: The marketing orientation of bankers is not dependent on their marketing training.
Hi: The marketing orientation of bankers is dependent on their marketing training
Ho: Environmental factor such as competing government policy technology and client behaviour are not relevant in application of marketing concept.
Hi: Environmental factor such as competing environment policy technology and client behaviour are not relevant in application of marketing concept.
Ho: the banks present marketing concept is not bad.
Hi: the banks concept present marketing concept is bad
There is no study that is complete perfect:
1. The limitation of this work comes from low response from the respondent.
2. Another constraint is time which is the major limiting factors in the carrying out this work.
1.8 DEFINITION OF TERMS
During the research work, certain words and concepts were used to make better understanding.
Marketing has so many definitions but from the purpose of this study, it is the systematic way of studying and satisfying customers needs and to facilitate exchange with view in other to achieve organizational goals.
This is the concept that holds the key to achieve organizational goals and making the company more effective than communicating superior customer value to its chosen market.
This is the result of practicing marketing concept, it requires the company and its employees, to achieve high customers satisfaction level, strategy to achieve corporate objective. This is achieve by keeping very close look to the market and be watchful in the company’s business environment and not to lose track of changeful market trends.
This is an act of performance that one party can offer to another that is essential intangible and does not result in the ownership of any things its product may not be tad to a physical product Kotter (1986).