IMPACT STRATEGIC MARKETING IN NIGERIAN BANKS
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IMPACT STRATEGIC MARKETING IN NIGERIAN BANKS
ABSTRACT
The research focuses on the efficacy of strategic marketing in Nigerian banks. Three banks were selected, including All States Trust Bank. Citizens Bank and Afribank plc were utilised as case studies.
Some of the study’s aims included determining whether the implementation of strategic marketing tactics allows banks to fulfil their financial intermediation goals.
To determine which strategic marketing strategies banks utilise the most to establish and maintain client confidence in the banking business. To determine whether banks’ use of strategic marketing strategies has increased client patronage.
And to see if implementing strategic marketing ideas improves banks’ corporate image.Literature on strategic marketing subjects, customer interactions, and the banking business were thoroughly evaluated.
The study included both primary and secondary data. Initially, certain high-ranking executives from the three banks were questioned, and the information acquired from them was very beneficial in pursuing a specific line of inquiry, which later served as the foundation for the creation of the questionnaire and the formulation of the hypothesis.
Data analysis tools included percentages, tables, and chi-squared. Chi-square was used to test the hypothesis. The findings include the following:
The implementation of strategic marketing strategies allows them to attain their specific financial intermediation goals.
Adopting marketing public relations tactics in bank operations helps her create customer trust in the banking business.
Strategic marketing also aids in the expansion of consumer base, among other benefits.
It was found that in order to provide intermediation services, banks must adopt result-oriented marketing methods such as customising their services/payments, introducing novel goods, and so on. Based on the same recommendations, decisions were made.
Chapter one
Background of the study
The difficulty is that a financial system relies on public trust, and erosion of that trust leads to disintermediation, diminishing the financial system’s capacity to execute its critical job of mobilising savings.
The nature of banking services is that banks must establish an image of respectability, competency, and dependability by satisfying their consumers.
Today, as Nigerians become more aware of banking activities, banking institutions face unusual obstacles. The obstacles are becoming harder and harsher at the water of the current millennium.
Given the foregoing and other considerations, a bank must engage in marketing operations in order to earn a fair portion of the market. In order to foster a friendly corporate culture, the company continually informs and reminds its customers about its services.
Given the current state of global economic activity, particularly in Nigeria, it is critical for corporate organisations to implement actions that would strategically reposition them in order to stay afloat.
With a significant growth in customer awareness in response to their requirements, wants, and satisfaction, businesses should reconsider their old marketing techniques that are not results-oriented.
They must recognise the paradigm transition from the old marketing concept to the new marketing concept, which is a customer-driven, technology-driven period of modern marketing management (Johnson, 1990:48).
The banking industry has progressively begun to reposition itself to meet the demands and desires of its customers. The Nigerian banking system is characterised by internal and external rivalry. The emergence of new banks created opportunities for innovation and increased market share.
The intensity of bank advertising in recent years serves as a proxy for determining the extent of competition. The system has witnessed sophistication in the style and design of new financial products (Anyafo, 1999:137).
In concluding the charting of the prospects of the banking industry in Nigeria for the 1980s and beyond (Vincent, 1980:19), it was anticipated that the services demanded of the banking industry would become more sophisticated in response to changes in the nature of the business they are called upon to finance and as their customers became more knowledgeable and discriminating.
A few years ago, the bank did not appreciate the need of providing adequate service and increasing customers. It is widely acknowledged that the Nigerian banking system has been experiencing a crisis of confidence over the last nineteen decades and a portion of the twentieth century,
a situation in which customers question the integrity of the banking system in providing financial intermediation services. Under such circumstances, does strategic marketing play any role in restoring mutual confidence between banking system operators and the customer and shareholder publics?
Statement of the Problem
Banks are stewards of their customers’ wealth. They provide financial services and give the customer piece of mind. As a result, banks’ marketing strategies should ensure that customers are well-informed about their plans, challenges, and solutions to those problems.
Marketing efforts, particularly strategic marketing, should therefore be the primary focus of every bank. The primary issues confronting several banks were the following:
Implementation of strategic marketing tactics.
The decision to select the greatest strategic marketing tactics
banks
The use of the most effective strategic marketing principles.
The questions then are as follows:
Do banks utilise more strategic marketing methods to achieve financial intermediation goals?
Which strategic marketing methods do banks use the most to establish and maintain client confidence in the banking industry?
Has the bank’s use of strategic marketing principles tools increased client patronage?
Does implementing strategic marketing principles help banks develop a positive company image?
GOALS OF THE STUDY
The study’s aims include:
To examine whether the deployment of strategic marketing tactics allows banks to achieve their financial intermediation goals.
To determine the most common strategic marketing tactics used by banks in
Increasing/sustaining customer trust in the banking industry.
To assess whether banks’ use of strategic marketing strategies has enhanced client patronage.
And, to determine whether the use of strategic marketing principles improves banks’ corporate image.
Finally, make a suitable recommendation based on
Our outcomes.
Hypothesis formulation
The following have been proposed for testing.
H0: Strategic marketing strategies do not
enable banks to do financial intermediation.
H1: The deployment of strategic marketing tactics allows banks to achieve their financial intermediation goals.
H0: Banks that use public-related marketing strategies are not
Customers’ confidence in the banking industry is likely to grow/stabilize.
H1: Banks that use marketing public relations techniques in their operations are more likely to increase/maintain client trust in the banking business.
H0: Banks’ implementation of strategic marketing principles does not
Increase consumer patronage.
H1: Banks’ implementation of strategic marketing ideas increases client loyalty.
Significance of the Study
The era of sit down and wait for customers or armchair banking has been surpassed by industry problems. A bank with cutting-edge technologies and services may yet fail to generate significant profits if it does not properly promote its products and services.
As a result, the study is crucial because it will assist banks, customers, and other financial stakeholders in the following ways: Banks may be able to increase client confidence based on the study’s findings.
They also understand more approaches to accomplish financial intermediation jobs or objectives. Customers will profit from the study’s findings as banks redefine themselves as dependable and responsive organisations to do business with. The other financial publics will be able to obtain indexes for evaluating bank success or company failure.
SCOPE OF THE STUDY
The study’s scope includes strategic marketing and its implications in the banking business. Three banks are utilised as case studies, including All States Trust Bank Limited (ASTB). Afri Bank Plc and Citizens International Banks plc. They are drawn from Port-Harcourt, Rivers State.
Limitations of the Study
This study was constrained by a variety of factors, which are as follows:
Time is a crucial issue because students are given limited time.
period to finish and submit his project. Finance: Another big issue is that the researcher must go to numerous locations in search of materials, resulting in a dramatic increase in the country’s transportation costs.
Problem with Data Collection: Some persons find it difficult to release the data required by the researcher, despite the fact that some of them cooperated to a large extent.
Definition of Terms
To make work more transparent, certain terms will be defined:
BANK: Anyone who conducts banking business, which includes a commercial bank, a mortgage bank acceptance house, a discount house, and other financial institutions.
MARKETING: The sensing and supplying of customer demands through an exchange connection with the goal of creating value in the form of profit and consumer happiness.
STRATEGY: A strategy devised to obtain an advantage over competitors; it is a tactical plan for carrying out defined policies to attain a certain goal.
PROMOTIONAL ACTIVITIES: Marketers utilise a variety of promotional strategies. Advertising, personal selling, ale marketing, and public relations are all examples of promotional tools or aspects of the promotion mix.
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