EFFECTIVENESS OF STRATEGIC MARKETING IN NIGERIAN BANKS
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EFFECTIVENESS OF STRATEGIC MARKETING IN NIGERIAN BANKS
Chapter one
Background of the study
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?
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. At the turn of the millennium, the problems become more intense and difficult. 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.
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.
Banks choose the most effective strategic marketing strategy.
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.
This study aims to identify the most effective strategic marketing tactics used by banks to increase and maintain client confidence.
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 suitable recommendations based on our findings.
Hypothesis formulation
The following have been proposed for testing.
H0: Strategic marketing initiatives do not help banks accomplish financial intermediation.
H1: The deployment of strategic marketing tactics allows banks to achieve their financial intermediation goals.
H0: Banks using public relation marketing tactics are unlikely to increase or sustain client trust in the banking business.
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’ use of strategic marketing strategies does not promote consumer loyalty.
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 major element, as students are given a limited
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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