APPLICATION OF MARKETING CONCEPTS IN BANKING INDUSTRY AND ITS EFFECT ON CUSTOMER SATISFACTION
Chapter one
INTRODUCTION
1.0 Background of the Study
Marketing is a consumer-oriented ideology that asserts that customer happiness is the economic and social basis for a company’s existence. These ideas argue that the company should be customer-focused.
Strive for profits. Increase sales volume and manage all marketing operations. However, marketing management is the mechanism through which businesses capture the marketing notion.
According to Kurtz (1992, p. 3), marketing management is a unifying strategy to marshalling and directing a business firm’s whole resources towards the determination and satisfaction of customer and consumer demands in a way that is intended to improve the firm’s overall profit position.
Where the marketing concept is recognised, the core company philosophy changes completely. Rather than attempting to market what can be produced. Despite the fact that a profit criterion exists,
management produces what the client genuinely needs. The organisation values both servicing and keeping its customers satisfied. Realising that it is not just about selling a specific product, but also about properly meeting a customer’s specific needs.
The goal of banking services marketing is to offer clients with the desired satisfaction while also ensuring the banking industry’s long-term viability and expansion.
The contemporary transformation of the industrial, commercial, and technological sectors, accompanied by rising competition. Customer expectations and other unstable external factors are evident indicators that a company either adopts marketing concepts philosophy or ceases to exist.
The current proliferation of banks in Nigeria indicates a more fierce competition in which only those capable of adapting dynamically will be able to maintain long-term development and profitability.
The current economic trends in Nigeria undoubtedly provide significant challenges to commercial banks. These changing tendencies have made banks realise that they can no longer treat their clients casually. Banks so employ marketing professionals who go out and request customer patronage and loyalty.
Banks have finally realised the necessity of keeping close client relationships and bringing services as near to them as possible. Most banks establish marketing research departments, or as the case may be, to obtain additional information about client demands, attitudes, motivations, and preferences.
direction of banking services began with the production principle, which holds that customers will acquire the services offered by banks if they are available and reasonable. As a result, banks consider providing beneficial services and expanding their branch network in order to increase accessibility.
Later, the bank goes on to product idea, assuming that customers will purchase services that provide the best quality and value for the price being supplied. Thus, banks focus their efforts on increasing the quality of their services.
However, in a later stage of their development, sales orientation takes effect, which is a selling idea that believes that clients will not buy enough from them unless they make a positive extra effort to market the product due to increased competition and awareness.
Today, the use of marketing concepts forces banks to acknowledge the fact that they must identify their clients’ needs and wants in order to deliver banking services that will best meet those needs and wants profitably.
The marketing notion has been recognised as the appropriate mindset for long-term commercial success. As a result, getting people to acquire the bank’s service became much easier. Therefore, client satisfaction becomes unavoidable. The marketing strategy is geared towards answering the question, “Who are our customers?” To whom do we produce? What marketing methods do we use? Why are we selling this item? Who are we selling to? Also, determine what the consumer wants, where he wants to buy the goods, and how he wants it delivered in order to foster a positive relationship between the organisation and its customers and achieve maximum satisfaction.
Until recently, the banking profession in Nigeria was characterised by what experts refer to as armchair banking, in which bankers sit in their offices waiting for employment to come to them. This approach to banking is flawed because the bank did not completely embrace the marketing notion, including its philosophy and function. Their perception of marketing remains restricted. Marketing of bank services actually goes beyond these narrow goals.
Nigerian commercial banks must use marketing concept initiatives in order to take a more purposeful and customer-oriented approach to banking. As a result of the aforementioned circumstances, this study is intended to address the following questions.
1. Conduct research to determine which areas banks have identified as important in terms of consumer satisfaction.
2. Determine the attitudes of banking staff towards their clients and vice versa.
3. Determine the presence and role of marketing in commercial banks’ organisational structures, as well as the extent to which marketing functions have been implemented.
4. Determine the effectiveness and efficiency of the marketing concept application.
5. To give valuable recommendations for improvement.
1.1 Statement of General Problem
The marketing notion does not appear to be fully recognised by Nigeria’s commercial banks. The integrated marketing concept, which states that businesses should be organised in such a way that they please customers by committing the entire system of the organization’s activities to a single goal, has been a myth to commercial banks rather than reality. As a result, customers do not receive the attention they require at banks, as they would in a service organisation. Furthermore, banks charge discriminatory interest rates on borrowed monies, causing enormous misery for customers.
1.2 RESEARCH QUESTIONS.
The research questions are developed based on the study’s goal to guide the entire research process. These questions will help the researcher build the questionnaire and provide solutions to the difficulties uncovered.
1.3 GOALS OF THE STUDY
1) Identify the area where banking services are available.
2) Determine the extent to which or apply in the financial industry.
3) To determine the effectiveness and efficiency of marketing concepts used to the banking business.
4) Make recommendations based on findings to improve the implementation of other marketing methods.
1.4 Significance of the Study
The research is topical and significant because of the function marketing plays in organisational performance. The research findings are supposed to provide qualitative knowledge and ideas for applying marketing concepts to achieve corporate objectives and consumer pleasure.
* What is the current status of GT Bank’s marketing concept?
* How long has GT Bank used this marketing concept?
* What is the impact of the marketing concept on GT Bank?
* How will the bank improve its concept for their customers?