The Impact of Advertising on the Marketing of Banking Services
CHAPTER ONE
OBJECTIVE OF THE STUDY
The researcher intends to find out the following:-
- Whether advertising is important to banking services especially micro finance bank Oko branch, Anambra State.
- Ways of improving the present use of advertising by micro finance banks.
- Media selection factors
- The best of combinational mix appeals.
- What makes customer to patronize the bank.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
HISTORY OF THE BANKING INDUSTRY IN NIGERIA
Prior to the establishment of Central Bank of Nigeria on 1959, the main bank in Nigeria were local branches of banks of the metropolitan countries that are lending and related activities largely of the export, of primary commodities and import of manufactures. The banks as such were mere enclave institution that had little to do with economic development efforts of the country. (Anyafo, 1999:130). 18 By 1960, the 12 commercial banks operating in country had a total asset of N235.8 million and about 190 branches throughout the country. The only merchant bank, Philip Hill (Nigeria) Limited, (which later merged with Nigeria Acceptance Limited) did very little business. There were no specialized development banks. Soon after the establishment of the Central Bank, it assumed responsibility for the Nigerianisation of the credit base through the creation of local money and capital market instrument in which financial institution could invest their surplus funds instead of the money and capital market instead of in the money and capital markets abroad. Development in the economy and the changing views of the monetary authorities had great impact on the perceived sales of the financial system. The banking system in Nigeria today, is made up of the Central Bank and Special Banks. The Central Bank, the Development Banks, the Savings Banks and the people bank of Nigeria are owned and controlled by the Federal Government, although some non-government equity is involved in the case of the development banks. The commercial and merchant banks are characterized by private initiative and participation, while community banks are sponsored by communities.
THE BANKING INDUSTRY IN NIGERIA: A REVIEW OF MAJOR CONTEXTUAL AND THEORETICAL UNDERPINNING
For any down-to-earth analysis or discussion on effectiveness of strategic marketing in Nigerian banks as espoused in the topic of this project research, to be carried out, major issues that shape the activities of the banking industry must be reviewed. Such a review will not only direct the bearing of this discourse but also reawaken in the minds of people the 19 level of corporate successes and failure in the banking industry in recent times. Commercial banking predates central banking in Nigeria, and constitutes the focus of the Nigeria financial system. Its dominance will continue in the foreseeable future. Given their early start, commercial banks played a predominant role in Nigeria early financial development and first to meet the need of house hold and enterprises for general purpose financial and liquidity requirements. (Anyafo,1992:24). Thus, they were the first to impart confidence and awareness to savers, who were usually not familiar with other types of financial institutions. However, the confidence and awareness that were instilled in the minds of depositors (customer) soon waned due to corporate failure in the industry. Corporate failure in the banking industry in Nigeria has been resounding and phenomenal. According to Adeyemi (1997:30) “Financial insolvence and bank failures are not new phenomena in financial system of the world”. However, they occur in varying degrees and for different many more failure are experienced in the advanced countries of the world, they have the capacities to absorb shocks where as such capacities are lacking in the less development countries of the world (LDC) such Nigerian. A historical account of banking distress experiences of Nigeria since 1894 when modern banking first commercial in the country maybe obtain from Abe (1985:25-26), Sausi (1992:6-20), Adewu Wimi (1992:97-110), Ogundeye (1993:58-66) and Molokwur (1994:107-110). It is a historical fact that in the 30 years from 1929 to 1959, 26 indigenous banks were established. By 1934, only 3 of the 23 banks opened by 1952 were still in operation, the remaining 20 having failed with an average life span of less than 3 years.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of advertising on the marketing of banking services. 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 the impact of advertising on the marketing of banking services
Summary
This study was on the impact of advertising on the marketing of banking services. Five objectives were raised which included; Whether advertising is important to banking services especially micro finance bank Oko branch, Anambra State, Ways of improving the present use of advertising by micro finance banks, Media selection factors, the best of combinational mix appeals and what makes customer to patronize the bank. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from sMicro Finance Bank Plc Oko. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Banks who have recognized the paradigm shift from old marketing of selling to the market to the customer concept, which emphasizes customer satisfaction will benefit in the long run. Given the volatile 68 nature of banking environment coupled with competition marketing concepts and principles become the only answer that can help banks to remain a lot in business. In carrying out her intermediations services’ a bank needs to employ resulted-oriented marketing strategies, such as customizing services/products, bringing in more innovations and above all retraining her staff especially, the font office staff (cashier) in the new techniques of scouting for customers. Finally, we conclude that marketing strategies have been recognized world over as among the antidote that can represent a bank for a greater test ahead. Its contribution cannot be over-stressed.
Recommendation
Banks which have not really explored the advantages of strategic marketing in the performance of financial inter-mediatory role should do so. The earlier the better because the business in which the banking industry operates is faced with stiff competition.
Banks should confine to adopt sound and ethical marketing practices in the savings mobilizations. They should also adopt the new marketing concept, which aims at satisfying customer needs at profit.
Both bank executives and cashiers should always be retrained to meet up with marketing challenges of banking services.
Total quality service or product should be the hallmark of the banking industry’s total market offerings. If there is no quality in the service delivery of a bank, there is every prospect that the customer will not be this satisfied. They may likely turn their back against that particular bank
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