EFFECT OF MARKETING PROMOTION ON THE EFFICIENCY OF BANKS
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EFFECT OF MARKETING PROMOTION ON THE EFFICIENCY OF BANKS
Chapter One:
Introduction
1.1 Background of the Study
Since the implementation of the structural adjustment plan (SAP) in July 1996, the Nigerian banking sector has undergone significant transformation. Prior to this time, there were strict requirements for starting a new bank.
Banks were not just few and evenly distributed among competitors. The Central Bank of Nigeria (CBN) established minimum and maximum lending and interest rates.
Since the new existing banks were placed in a straight jacket and were not required by circumstances to be aggressive, bank authorities dispatched their officers to wait for consumers to call.
When they contacted, they were exposed to a lengthy delay and had to go through a frustrating procedure. Banks never considered those who needed their services to be wooed and retained.
In the last six years, a new spirit has emerged in the world of banking, influencing market conduct in the short term and likely to have an impact in the medium and long term, as market entrance liberalisation increased the number of banks.
According to Arnold and Feilmen (2000), banks and non-bank financial companies are becoming more influential by providing so-called specialised services.
The homogeneity of traditional bank services has resulted in increased competition among commercial and merchant banks, putting significant pressure on the need for promotional programmes.
Although banks in general were proven to embrace the marketing notion based on the reality that customers needed banking services, banks did not promote their deposit, loan, and savings accounts.
According to Kotler (2003), promotion refers to the efforts that a firm undertakes to explain the benefits of its products and persuade potential customers to purchase them.
This meant that in order for bank services to be efficient, the public must become aware of them. Indeed, banking has evolved from traditional sit-and-wait to dynamic marketing, with marketing serving as a tool for riding the tidal wave.
1.2 Statement of the Problem
Considering the description of the problem with the banking sector in our society, a comparison between Zenith Bank and First Bank. It is evident to examine the primary problem with the banking sector.
One of the obvious banking marketing problems that commercial banks, such as Zenith Bank and First Bank, may face is how well the banks in Nigeria fulfil their goals.
Bank management has done a lot of marketing promotion, either effectively or ineffectively, therefore it is important to examine whether the bank has been able to nurture stability, growth, and a friendly marketing promotion connection.
If not, why?
This study will look at the strengths and weaknesses in promotion marketing activities and will help by providing solutions to some of their problems so that the bank can achieve its overall goals.
1.3 Object of the Study
(1) To assess the impact of marketing promotion on bank efficiency in Nigeria.
(2) To assess the impact of marketing strategy on bank efficiency in Nigeria.
(3) To investigate the impact of marketing philosophy on the efficiency of banks in Nigeria.
1.4 RESEARCH QUESTIONS.
(1) Do marketing promotions affect the efficiency of Nigerian banks?
(2) Does marketing strategy have an impact on the efficiency of banks in Nigeria?
(3) Does marketing philosophy have an impact on the efficiency of banks in Nigeria?
1.5 Research Hypotheses
1. Ho: There is no substantial correlation between marketing promotion and bank efficiency in Nigeria.
H1: Marketing promotion has a substantial impact on the efficiency of Nigerian banks.
2. Ho: There is no significant association between marketing strategy and the efficiency of Nigeria’s banks.
H1: Marketing strategy has a substantial association with the efficiency of Nigerian banks.
3. Ho: There is no substantial association between promotional activity and the profitability of banks in Nigeria.
H1: There is a considerable association between promotional efforts and the profitability of banks in Nigeria.\
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