IMPACT OF MARKETING CONCEPTS ON THE PERFORMANCE OF COMMERCIAL BANKS
IMPACT OF
MARKETING CONCEPTS ON THE PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA
INTRODUCTION
Marketing came
into the commercial banks in the later 1950’s in the form of advertising and
promoting concepts, not in the form of marketing concept. With the upsurge in
competition many financial institution devised to adopt marketing tools to get
their share of the market. Budget were established for advertising and sales
promotion, managed to attract many new customers. Their competitors were forced
into adopting the same measure by writing professional advertising agencies and
promotion experts.
Marketing
evolved as a part of the total manufacturing organization its rapid evolution
was caused by five general issues that are found in commercial banks. These are
sales decline, slow growth, changing buying pattern, interesting, competition
and increasing expenditure.
Before this
period Banks hardly ever thoughts of marketing research on professional bases
until they were forced into the system by competition. Their services were
shared traditional usage and custom. The commercial banks know perfectly well
that most of their customers would be glad of
a full banking service.
However
marketing concepts became one approach which seeks at improving the customers
and the organizations relationship though. Through providing the right type of
product that will satisfy the customers need and earn a profit to the firm. The
concept is the management orientation they key task of the organization is to
determine the needs and wants of the target customers and to adopt the right
organization attitude towards delivery the desirable customers satisfactions
more efficiently and effectively than
its competitors. The organization should be customers oriented, customers
orientation as a basic philosophy that forces the business organization to
highlight its actions with the mandates of the market. The management has
faith that it will be properly rewarded
by the customers.
Union Bank Plc
has a responsibility to serve the financial needs of the its customers, the
greater the varieties of services and considering the different categories of
customers, the better, the for it’s fulfilling its objectives.
The marketing
concept acknowledge that a business geared to serve the needs and requirement
of consumer will achieve a better result over a longer period of time than the
other components whose executives are not be motivated towards the satisfaction
of consumers. The marketing concept believes that consumer is king.
This pervasive
attitude has three major elements such as undertaking of consumer needs or
wants, system approach of marketing variables and other elements in an
organization; and objectives to the organization.
Adoption of
marketing concept therefore became necessary in Union Bank Plc as they are
service oriented, operating in a competitive industries and profit motivated
Union Bank Plc need to offer service that will meet their customers wants but
before this is made possible, the bank have to embark on a research of the type of services the
customers required Union Bank recently realize the important of marketing
concept and developed it for most of their services; distribution and promotion
the service of marketing service depends upon knowing the buyer well and
servicing his/her needs. This means treating each client as an individual
product segment it important that a firm should decide as an important matter
of policy what type of customers is required.
To this end,
all policies, marketing manufacturing
and personnel should reflect this overall policy of image. The basic
public relations policy can be put forward to ensure that the public are
influence to react to the firm in the desired manner. The customers can be
influenced by good customers relations to regard the bank as:
i.
Public
spirited with a civil responsibility.
ii.
A
good bank to work for or invest in.
iii.
A
bank whose product and services can be purchased with confidence and
reliability.
1.1 HISTORICAL
BACKGROUND OF THE UNION BANK NIG PLC
The financial system of the
society is the framework within which capital transaction takes place. The
saving of some members of the society are made avaibale to other member of the
society for productive investment. This process is made possible by the
intermediation of financial institutions like the commercial banks.
The first
commercial Bank, the
The British
bank of west Africa and the Barclays
bank between 1894 and 1933. In 1972 indignations decrees was promulgated, where
the federal government of Nigeria acquired 51.67% of the Barclays bank share
capital while the bank share capital while the bank was left with 40% and the
remaining 8.33% with the Nigeria public.
In 1979 the
bank sold 20% of its 40% shareholding to the
The equity
structure of Union Bank make it only former expatriate bank currently with the
larger proportion of its store 80% owned
by Nigeria and Nigeria organization.
1.2 STATEMENT
OF THE PROBLEM
However some
problem that affect Union Bank in Nigeria BirninKebbi Branch emerged as a
result of inadequate application of marketing concept, such as:
i. inability of the branch to mobilize
saving for investment purpose and harness idle funds in the state.
ii. Insufficient volume and varieties of
financial instrument to facilitate intermediation for investment process.
iii. Inability to incorporate proper use of
marketing concept due to organizational policy framework, which has some
restrictive clauses on publicity.
iv. Insufficient number of workers to deal with
member of the public who will like to participate in the banking activities.
v. Inadequate banking environment which affect
their product and service in the state.
1.3 OBJECTIVES
OF THE STUDY
Among the
objectives of the study are as follows:
i.
To
highlight the important roles played by marketing concept in the performance of
commercial banks to the economic development of the country.
ii.
To
discuss and examine the operations and the likely affect of marketing concept
in the commercial banks.
iii.
To
help in academic contribution towards reaching possible solution on how to
develop and improve marketing concept in the commercial banks.
iv.
To
examine certain instances when investment may be insensitive to the level of
marketing concept.
v.
To
appraise the application of marketing concept in the commercial banks.
vi.
To
assess the impact of marketing concept in commercial banks.
vii. To ascertain
whether marketing concept has any effect in the commercial banks.
1.4
RESEARCH QUESTION
1.
What is the relationship between the commercial banks and marketing concept?
2. The important roles played by marketing concept in the performance of commercial banks to the economic development of the country include.
3. What are the operations and the likely effects of marketing concept in the commercial banks?
4. What are the academic contributions towards reaching possible solution on how to develop and improve marketing concept in the commercial banks?
1.5
RESEARCH HYPOTHESIS
Ho There is no significance relationship between
the commercial banks and marketing concept.
Hi There is significance relationship between
commercial banks and the marketing concept.
Ho2 There is no significance relationship in
information preference between the commercial banks and the marketing concept.
H12 There is significance relationship in
information preference between the Commercial banks and the marketing concept.
Ho3 There is no significance relationship in
information format used by the commercial banks and marketing concept.
H13 There is significance relationship in
information used by the commercial banks and marketing concept.
1.6 SIGNIFICANCE
OF THE STUDY
The research work
is undertaken to advance scientific knowledge of the study matter of
investigation an evaluation of marketing concept in the commercial banks.
Marketing
concept is an economic phenomenon, in which the consumer is seen as supreme and
his/her wants or needs from the starting points and base for production of
goods and services.
To survive
competitive activities, banks must be able to produce and deliver wants or
needs satisfying goods and services, packed
of quality and value.
However,
customer of various categories of the banks enjoyed such service from Union Bank
NigPlcBirninKebbi branch. Customers like the small and medium scale enterprises
farmers of different categories, workers of different facets in the state.
It is
significance to note that, success only depends on meeting the needs or
wants of the customers via value
creating exchange. This is done by Union Bank of Nigeria PlcBirninKebbi Brach
through complete adopting and practice of marketing concept where customers are
treated as king, the only boss of the organization whose wishes aspiration
preference must be met and which should guide organization thinking and
operation.
The
prospective users of the research when it is complete are the workers, students
and in the banking sector. Who may be interested in knowing the evaluation of
marketing concept.
1.7 SCOPE
AND LIMITATION OF THE STUDY
The scope pf
this research work is limited to the union bank of Nigeria PlcBirninKebbi
branch, and the extent of this work is also limited to an evaluation of
marketing concept in the commercial banks.
There are
numbers of limiting factors since the Union Bank senior staff interviews were
not willing to disclose useful information to the researcher. A lot of problems
went wrong to restrict the researcher writer from conducting a good and
comprehensive research.
Among the
problems are:
i.
Difficulties
in obtaining certain documents and as most of the documents are considered to
be very important to the organization, thus preventing the researcher from
getting them.
ii.
A
work of this nature requires much capital for financing the materials and
sourcing information needed. But collation prolonged leaving little time for
presentation and analysis of data since the researcher was given schedule time
of completion.
iii.
Also
the time allocated to this research work is inadequate and insufficient for the
researcher to get all the required information for the topic.
iv.
Another
limitation is the non-availability of relevant and vital documents in the
school library, which could have be useful in making an extensive research work
and the library did not keep any special manuals for the topic which the
researcher could make reference to.
v.
This
research work was undertaking when the writer is fully engage in the class
work. This has greatly constrained the research work because the researcher has
to pay attention to normal class activities.
1.8 DEFINITION
OF TERMS
Advertising: To percent
information about a product arouse interest, build desire and get customer in a
favourable frame of mind to buy the product.
Asset
Portfolio:An
asset in the firm property weighted to represent their proportionate market
value.
Business
Organization:
Collective endeavour consisting of contractual relationship among the various
parties involved.
Banker: A person or
company carrying on the business of receiving monies and collecting draft from
customers subject to the obligation of honouring cheques drawn upon them from
time to time by customers to the extent of the amount available in their
current account.
Consolidation:The
combination of two or more firm into an entirely new firm the old firm ceased
to exist.
Corporation: A business
formed legally from its owners.
Distribution: The transfer
of goods from producer to consumers.
Financial:Intermediaries
financial institution that accept money from savers and use those funds to make loans and other financial
investment in their own name.
Marketing: Human
activities that is directed at satisfying needs and wants through exchange
process.
Marketing
Concept:
Undertaking of consumers need or want (consumer oriented).
Portfolio:A combination
of two or more securities or assets.
Portfolio
Management:The
process of combining securities in a portfolio tailored to the investors
preference and needs monitoring that portfolio and evaluating its performance.
Sales
promotion:
The provision of special buying incentives for a limited period of time.
EDITOR’S SOURCE: https://researchwap.com/marketing/impact-of-marketing-concepts-on-the-performance-of-commercial-banks-in-nigeria/index.html
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