The Application of Electronic Marketing in the Banking Service (A Case Study of Fidelity Bank Aba)
Chapter One
OBJECTIVE OF THE STUDY
- The main objective of the study is to investigate how the adoption of the electronic marketing enhances banking services in Nigeria. The specific objectives include;
- to assess the impact of the application of electronic marketing on customers’ patronage;
- To determine the extent of the application of electronic marketing has improved customers convenience in enjoying banking services;
- To assess how the application of electronic marketing help in reducing marketing costs as against traditional marketing.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
This chapter reviews the literature on the application of electronic marketing in the banking service. It discusses issues arising from the topic of discuss as viewed from different perspectives, with a view of giving a theoretical and empirical foundation to the study.
LITERATURE REVIEW
Some studies have been reviewed here which shows what happened when E-marketing experiences as marketing tool use for communicating. Meng Xiaoming (2010) founded that E-commerce share the closest relationship with E-marketing. Development of E-commerce model useful both for E-commerce development and promoting E-marketing methods in the new economy. Sheth N Jagdish & Sharma Arun (2005) was of the view that dramatic pace development of E-marketing gave a wide impact on customers and business market. In this paper he critically examines the E-marketing strategies relationship with contexts to different countries infrastructure and marketing institutions. Iqbal.S.M.Anas (2005) focused on Indian Banking sector and its productivity, profitability and easy accessibility. After privatization, liberalization and globalization Indian Banking Sector shifted from “Class Banking” to “Mass Banking” and later on “Productive Banking”. So, in this new millennium Information Technology act as a tool for the building up blocks of banking sector with more advancement and improvement. Kalavathy.S (2005) focused on the power of technology which is working as a fuel in banking institutions and trying to speed up work in this competitive scenario. Indian Banks are filling up the gap between the banks and their counterparts with the existence of technology. Nathan C Senthil (2009) tries to explain that modern technology such as „Internet‟ and „Mobile Phones‟ provide information to the consumers. Its methods and applications help to innovate new E-marketing methods for the survival of E-marketers in the competitive market. Strauss Judy and El-Ansary Adel (2010) suggested that the domain of E-marketing is much greater than other dot-coms. Technology and Internet totally changed the way of conducting marketing and always trying to make effective and efficient marketing strategy. In this paper E-marketing is defined with the framework of different business models along with its best practices. Siegel (2004) defined Internet marketing or E-marketing as a marketing tool in electronic environments primarily on the Internet or offline by enterprises that produce and sell Internet related products. Like traditional marketing, the goal is still to facilitate exchange, build long-term customer relationships, and create utility which is the benefit or value received from marketing exchange. Internet marketing is performed by enterprises that operate exclusively on the Internet and by others that have both an online and offline presence. Marketing is taking place in the infrastructure segment, where the Internet is being physically built out, and through ecommerce, where intermediaries sell products provided by other businesses and manufacturers sell their own products. A review of the work done in the area of E-marketing, Some of the pertinent literature available scanned which are collected from various research papers, articles and books related with the topic which shows that work have been carried out in the area of E-marketing by several researchers. But none of the study is conducted on the topic “Effect of E-marketing experience as a marketing tool”. So, therefore this paper is an attempt in this direction.
According to Czerniawska and Potter (2000), one of the benefits acquired in the implementation of e-marketing in commercial banks was increased revenue. This was because there was attraction of more customers and retention of old ones. There was also improved customer satisfaction since products and services were readily available, cost reduction because of reduced wage bill, reduced space requirements and hence reduced rent or lease payments. Other benefits they explained included increased efficiency since automation enabled organisations to do more with less input, increased level of output and employee satisfaction and motivation since less work was involved. There was a larger market share through attraction of new customers and customer loyalty was gained. The uptake of e-commerce was influenced by its potential to create business value and by awareness of its participants of the potential benefits (Magutu et al., 2009). The major reason for most companies, irrespective of size, to participate in business was to extract some benefit from it and e-commerce was no different. The benefits of e-commerce identified from the current literature were classified in two main categories tangible and intangible. The tangible benefits were those that were directly accrued to the organization and contributed directly to increase in revenue and profit where as intangible benefits were those that did not directly contribute to increase in revenue but gave goodwill and customer loyalty to the organization. They included, enhancing well-being and education of customers. By providing information to customers online, they were able to learn more about the organization and carry out their transactions effectively and efficiently at reduced time and cost (Lee 2001).There was improved consumer loyalty, when quality services and products were provided. Customers made repeated purchases and related well with the organization (Lee 2001). Intangible benefits gave organizations competitive advantage in that the organizations that used automated business processes were able to provide products and services at reduced prices than their competitors. This enabled them to beat their competitors and close out entry of new entries (Straub, 2000). Emarketing offered convenient shopping to customers. Also, customers were enabled by e-marketing to carry out their transaction at any place in the world and at any time of the day that was convenient to their unique lifestyle. To extract benefits from e-marketing, it was important for businesses to overcome the e-commerce inhibitors and challenges. E-marketing enabled accessibility of markets that had been otherwise inaccessible without automation. For example, customers who wished to carry out transaction at night were taken care of by the use of ATMs. This process led to transformation of traditional market chain (Fraser et al. 2000) as well as retained and expanded customer base and acquisition of a niche market. The introduction of e-commerce enabled banks to serve customers who were in places where they did not have ATMs and electronic transfers. When people were replaced by machines in an organization, the amount of salary paid out was reduced (Grover and Ramanlal, 2000). Hoffman and Bateson (2001) stated that e-marketing also enabled the organization to achieve customer satisfaction which led to repeat purchases that led to loyal customers (retention) which in turn led to enhanced brand equity and higher profits. The provision of high quality services was an important tool for creating and fostering good and long lasting customer relations.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to a critical analysis of the application of electronic marketing in the banking service.
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information a critical analysis of the application of electronic marketing in the banking service. 200 staff of Fidelity bank Aba were selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain a critical analysis of the application of electronic marketing in the banking service.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations are made, which in the opinion of the researcher will be of benefit in addressing the challenges of marketing and banking services.
Summary
This study aimed at having a critical analysis of the application of electronic marketing in the banking service. (NUMBER OF OBJECTIVES) were raised. These objectives include:
The main objective of the study is to investigate how the adoption of the electronic marketing enhances banking services in Nigeria. The specific objectives include, to assess the impact of the application of electronic marketing on customers’ patronage, to determine the extent of the application of electronic marketing has improved customers convenience in enjoying banking services, to assess how the application of electronic marketing help in reducing marketing costs as against traditional marketing.
Conclusion
Based on the above findings pertaining to the objectives of the study the following conclusions are drawn.
There is no doubt that the adoption of adoption of e-marketing has played significant roles in improving customers’ patronage of banking services in Nigeria, through strategies and electronic measures such as telemarketing, catalogue marketing, direct mail, e-payment, e-banking, e-marketing, e-commerce and e-business. However, in spite of the numerous contributions, there are still certain challenges which represent barriers to it effective adoption in most banks and by most customers in the country. Infrastructures such as Internet connectivity, GSM system, computer, and online tools for effective marketing and communication of banking services are either grossly inadequate or lacking completely in some areas within the country. The study concludes that; banking organizations that embrace the powerful force of e-marketing stand to reap immense benefit as it is the means by which they can be effective and efficient and thus, remains successful in the competitive banking industry.
Recommendation
In view of the benefits associated with the adoption of e-marketing, Commercial Banks in Nigeria should adopt some measures to ensure the effective utilization of the e-marketing as a strategic marketing tool in their banking operations.
Banks should not only provide internet service facility but should also focus on how to improve on other forms of internet marketing activities such as telemarketing, catalogue marketing, direct mail, e-payment, e-banking, e-marketing, e-commerce and e-business.
All the barriers to effective internet marketing adoption such as poor connectivity, inadequate computers and ICT infrastructure, as well as cyber-crimes which constitutes a serious bottleneck to the overall success of banking operations in Nigeria should be addressed by managers and stakeholders in the banking sector.
Nigerian bank managers should develop marketing strategies that will help them use internet marketing to deliver the satisfaction more effectively and efficiently than other competitors so as to continue to retain existing customers and attract new ones
REFERENCES
- Akhtar.F et.al, (2008). Available at http://www.scribd.com/doc/17190677/EMarketing
- Gaurav Kunal (2010). “Trust in Electronic Marketing”, Indian Journal of Marketing, January, pp.49
- Hassan.A.F.M.Kamrul (2004). “Electronic Money and Banking Activities in Bangladesh – Implications for Central Bank”, The Indian Journal of Commerce, January March, Volume 57, No.1, p.51
- Iqbal S M Anas, (2005). “Information Technology in Indian Banks a Building Block for Economy in New Millennium”, Banking Finance, October, Volume XVIII, No.10, pp.5-11
- Kalavathy.S, (2005). “Technology in Indian Banks”, Banking Finance, November, Volume XVIII, No.11, pp.20-25
- Kulshreshtra.S, (2003). “ E-Marketing in Travel and Tourism Business” , The Indian Journal of Commerce, Volume 56, No. 2&3, April-September, p.143
