THE MARKETING OF BANKING SERVICES
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THE MARKETING OF BANKING SERVICES
ABSTRACT OF BANKING SERVICE MARKETING
This study – used Bank of Nigeria (Plc) as a case study to analyse the marketing of banking services, including its challenges and potential within the socioeconomic environment.
The primary goal was to determine the effectiveness of banking service marketing as it relates to the bank and the banking industry, customer welfare and profitability, and the national economy in general.
However, the number of banks is rapidly increasing, which has resulted in increased competition among banks. This competition got so intense that banks began to look for ways to survive.
In order to achieve the aforementioned goals, both primary and secondary data were gathered. Both questionnaires and the interview method are utilised for primary data collecting. For secondary data gathering, information was obtained from bank libraries, periodicals, and text books.
The surveys were delivered to both bank employees and First Bank of Nigeria Plc clients.
After analysing the obtained data, the researcher concluded that commercial banks confront rivalry in promoting their services. Banks do marketing research in order to accomplish their profit objective; yet, banks have various issues that prohibit them from providing effective banking services to their customers.
However, several recommendations were made in light of the findings presented above. That bank should organise more training for its employees, particularly about their attitude towards bank clients. Banks should also conduct research to determine their customers’ demands and strategies to address those needs.
INTRODUCTION TO CHAPTER ONE
1.1 BACKGROUND TO THE STUDY
In any economic system, there are various institutions engaged in commercial activities with the primary goals of strengthening their financial base and providing quality service to society through the marketing of their products and services, thereby firmly establishing themselves within the given economic environment.
Prior to the mid-1950s, banks had no awareness of or respect for marketing because they provided necessary services. Marketing entered banks in the late 1950s, but not as a “Marketing Concept,”
but as an advertising and promotion concept. Financial institutions, particularly banks, are prominent in a competitive economic environment, with their operations primarily focused on promoting their services to the general public.
However, among these services are the provision of loans and overdrafts, the issue and acquisition of securities, the availability of state depositories to clients, and the ability to make payments using bank notes and cheques. As a result,
it is self-evident that a bank should develop sound management approaches, as well as effective marketing and service initiatives, within its socioeconomic and political context. As a result, certain operational issues may try to undermine the Bank’s efforts to stand steadfast in the face of economic turbulence and repeated policy changes.
The First Bank of Nigeria (Plc), one of the major banks in the marketing of bank services, has taken a number of strategic actions to improve its marketing operations and liquidity strength, customer connections, credibility, and effective participation in the economy’s resuscitation.
This will be given fair consideration during the course of this project. Suggestions and recommendations for possible solutions to the many challenges influencing the marketing of bank services inside the system will also be made.
1.2 STATEMENT OF THE PROBLEM
Over the years, the banking industry has been recognised as having the capacity to revolutionise the basic economy of any community, state, or nation if properly created, constituted, governed, and managed. Certain issues in the banking industry today have hampered effective and efficient services, preventing them from meeting their objectives.
One of the primary issues in the banking business is poor customer service, which is manifested by significant but unnecessary delays in completing simple transactions.
These operations include anything from cheque encashment to the establishment of new accounts to the processing of loan and overdraft applications.
This service delay is obviously harmful to office owners, international businessmen, and students, who sneak out of their various places of employment to withdraw a tiny amount of money.
Second, it appears that banks are dealing with incompetent employees who are carrying out infected transactions. This is because personnel are frequently hired on the basis of godfatherism rather than talent.
Another issue is the necessity to bring to the forefront a clear grasp of the influence of marketing bank services in banks’ search for continued relevance and survival.
Finally, there is the issue of banks effectively turning the economic table around if the bravery and prudence are present to spur them into action.
1.3 OBJECTIVES OF THE STUDY
The bank exists as an organisation to accomplish something in society. Its aim is to provide loans and other financial services while generating a sufficient return on the bank’s capital. The following are the objectives of this research:
The level of awareness among banks about who their clients are, the quality of services provided, and the income generated from marketing operations when compared to competitors.
A reorientation of the Bank’s markets towards consumers rather than products or services.
The effect of bank service marketing on the development of the banking industry in particular and the Nigerian economy in general.
An analysis of how policy and regulatory guidelines influence market operations in relation to the bank’s own marketing plans and organisational policies.
How the different connected difficulties that have been found can be solved, as well as the future prospects for a more economic system inside the system.
Finally, to give recommendations and suggestions as needed in the interest and benefit of the many target levels, including stakeholder customers, employees, shareholders, and the government.
1.4 RESEARCH QUESTIONS
The study aims to provide answers to the following questions.
1. To what extent has the adoption of bank service marketing increased the quality of services provided to bank customers?
2. What are the opportunities and challenges that this marketing of bank services presents to bankers?
3. What is the motivation for adopting this marketing strategy for bank services?
4. The extent to which commercial banks’ marketing techniques have aided in providing maximum benefit and services to customers.
5. How is marketing of bank services known to the general public, and how well is it known to them?
1.5 RESEARCH HYPOTHESIS
Making assumptions and educated predictions about the demographic involved can help you reach a choice. Statistical hypotheses are assumptions or claims that may or may not be true. In general, they are statements about the population’s probability distribution.
ZERO HYPOTHESIS:
The null hypothesis is a hypothesis that is designed to be rejected or nullified.
Ho represents it.
ANOTHER HYPOTHESIS
The alternate hypothesis, abbreviated by Hi, is any hypothesis that differs from a specified null hypothesis.
The following hypotheses have been developed for the purposes of this study and will be examined in chapter four.
HYPOTHESIS
1. Ho: Commercial banks do not compete in marketing their services.
Hi: Commercial banks confront competition when it comes to marketing their products and services.
2. Ho: Banks do not do marketing research in order to attain their business objectives.
Hi: Banks conduct marketing research in order to meet their business objectives.
3. Ho: Banks are not plagued by issues that prohibit them from providing their consumers with effective financial services.
Hi: Banks face several challenges that impede them from providing effective banking services to their consumers.
1.6 THE IMPORTANCE OF THE STUDY
The economic change of rural/urban communities in any state brings with it a lot of load relief in the area of capital development. Banks, through the marketing of their services,
are capable of and have in fact played a significant part in the economy’s sustenance. This fact is directly related to the importance of fundamental industries and small and medium-sized businesses to any country’s industrial and technological progress.
Most banks market their banking services to combat the highly competitive nature of the banking industry and to increase their profit margins. The success of this research project will enable the bank to resist even more fierce competition in the marketing of bank services in terms of acquiring new clients and retaining existing ones.
The project work will bring to the bank’s attention how much of an impact it has been able to create in the banking industry as a result of the development or launch of marketing for the bank’s services.
It is also predicted that the study’s findings will assist the bank in evaluating the quantitative and qualitative strengths of its workforce in order to alter and re-adjust their marketing services operations.
However, it will draw to the bank’s attention how effective its marketing efforts have been thus far and what it can do to improve on these strategies now and in the future.
This research will also assist the bank in determining whether or not the customer-banker connection has improved and what it can do to improve it further.
The study will undoubtedly be useful to the Department of Banking and Finance at the Institute of Management and Technology Enugu, as it may serve as a foundation for additional research on the issue.
Marketing bank services in Nigeria would help to raise awareness of banking operations in general.
1.7 THE DEFINITION OF TERMS
(a) Marketing: This is the management process in charge of identifying, anticipating, and satisfying customer needs.
(b) Marketing Concept: This is a management orientation that holds that the primary task of an organisation is to determine the needs, wants, and values of a target market and then adapt the organisation to provide the desired satisfactions.
(c) Strategy: A management method for reaching a goal.
(d) Strategic marketing: This is the process of analysing opportunities, deciding on objectives, developing plans, and implementing them.
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