The Effect of Marketing Promotion on the Efficiency of Banks
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To determine the effect of marketing promotion on the efficiency of banks in Nigeria.
- To determine the effect of marketing strategy on the efficiency of banks in Nigeria.
- To examine the effect of marketing philosophy on the efficiency of banks in Nigeria
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Promotion is the direct way an organization tries to reach its publics. This is performed through the five elements of the promotion mix including advertising, sales promotion, personal selling, public relations and the direct marketing (Czinkota & Ronkainen, 2004). With the growing importance of the financial sector, pressures are escalating for more effective marketing management of the financial services. Despite the recent recessions, the financial services sector is continuing to grow in terms of turnover and profits and thus, has a supreme impact on the other spheres of the economy. Consequently, there is currently growing interest in applying marketing techniques and tools in financial services (Meidan, 1996). In spite of major changes on the market of financial institutions, there are indications that banks have not yet successfully embraced the marketing philosophy or achieved levels of its implementation consistent with satisfied customers. Financial institutions are realizing that their established promotion practices are inadequate for new market conditions as levels of customer defection in the sector grow. Traditionally, banks have tried to reach out to everyone in the community, but recent research proposes that banks should aim to identify and serve microsegments (Dawes & Brown, 2000).The role of promotion has been redefined into managing long-term relationship with carefully selected customers, including construction of learning relationship where the marketer maintains a dialogue with an individual customer (Dawes & Brown, 2000). Due to this fact, the personnel are one of the most important resources of a bank. In financial services, people are primarily bothered about security of their funds and default risks. After the year 1969, the deposits of banks increased more than 80 times as a result of the nationalization of banks. Cox (2007)contends that financial service providers are not perceived highly trusted, so that they might have difficulty in selling risk-based products. The effort to promote banking business is quite a distinguished affair. At present, it has become very tricky due to the changing trends of the industry, increasing competition and efficiency of regulatory environment, and the financial system. The complexity in the banking services is also an issue of vital importance. This is the time when banks are offering new and innovative services; frequently in the market. The content of promotional tools should help the customer in making most valuable decision. This can be firmly said that well designed promotional strategies are very important to promote banking services effectively. In marketing any product or service, customer satisfaction has been given prime importance. The most frustrating aspect of bank marketing are lack of management support, lack of inter-departmental co-operation, crisis management, government intrusion and advertising and media problems (Berry et al.,1980). Sarin (2007)observes that manpower in service organizations must work with the focus of satisfying the customer. Banking should bring out the areas requiring improvement and which further illuminate the measures to improve the quality of services. Promotional packages are very important for financial service industry (Ananda & Murugaiah, 2003).Thus the orientation of banks should be with a much wider focus in relation to customer and market needs, and the consequent marketing strategies.
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 the effect of marketing promotion on the efficiency of banks
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 on the effect of marketing promotion on the efficiency of banks. 200 staff of Zenith bank, Uyo 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 the effect of marketing promotion on the efficiency of banks. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of marketing promotion on the efficiency of banks
Summary
This study was on the effect of marketing promotion on the efficiency of banks. Three objectives were raised which included: To determine the effect of marketing promotion on the efficiency of banks in Nigeria, to determine the effect of marketing strategy on the efficiency of banks in Nigeria, to examine the effect of marketing philosophy on the efficiency of banks in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Zenith bank, Uyo. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made of HRMS, customer care officers, marketers and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The study revealed that marketing has become a major function in the banking industry as a result of increased competition brought about by bank consolidation and reforms. As a matter of fact, banks staff involved in marketing activities in the post consolidation era have surpassed those in the pre consolidation era. Thus, there is a connection between banks competition brought about by banks reforms and marketing activities. The competition is supposed, among others, to facilitate effective deposit mobilization, technical efficiency, varieties of services, convenience banking services, productive efficiency, allocative efficiency, lower cost of fund, absence of customer exploitation, higher compensation to depositors, safety of depositors’ funds, availability of funds for investment, increase savings that will transform and high quality services among others. The findings in this study shows an overall significance of the marketing variables adopted, although not much effect is seen when a marketing variable is compared with bank performance in isolation of other variables. This helps to conclude that the marketing strategies techniques must be adequately combined in order to bring about improved performance. For example, if a bank should engage in promotional activities without adequate knowledge of the market, the aim of marketing will be defeated
Recommendation
- Banks should embark, from time to time on marketing research. This is because effective marketing strategies are a product of marketing research. Thus, good and adequate marketing mix is a product of effective marketing research too. Marketing research will bring about innovation, better services for customer and better method of production and processing
- In adopting marketing strategies, banks should also compare different company’s strategies and access the success and the failure of such strategies in the industry.
- In addition, banks are encouraged to be more customers-focused and embrace relationship marketing rather than transaction marketing. This will enable them to gain customers loyalty and maintain a long term relationship with customers.
- The management of the banking institutions should be transparent and follow the laid down rules so as to create and sustain public confidence. This will definitely increase savings and in turn improve the level of economic growth.
- Effective management of depositors’ fund that will disallow failure should be stipulated by the monetary authorities.
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