Evaluation of Selected Marketing Strategies Employed by the Banking Industry in Nigeria

Evaluation of Selected Marketing Strategies Employed by the Banking Industry in Nigeria.

ABSTRACT  

The purpose of this is to identify the various strategies being adopted in the banking with particular reference to Afribank Nigeria Plc and their impact on deposit mobilization and gross earning. Gone are the days of “armchair” banking. The introduction of Structural Adjustment (SAP) by Babangida in Nigeria led to increased number of banks as a result of liberalization thereby bringing about stiff competition among banks.

The aftermath of this is that any bank which wants to remain profitable and maintain its competitive edge must not rest on its oars but devise strategies that will enhance its share of the market. Marketing strategies are methods adopted in determining customer’s needs, and coming up with ways through which these needs can be satisfied to enhance their customer delivery. Some of these strategies are branch network, interest rate manipulation and electronic money transfer, etc.

In this study, we examined how Afribank Nigeria Plc has been able to effectively market its banking service by employing these aforementioned strategies. It was observed that the bank is really coping with competition in the Nigeria banking industry but there is still room for improvement to be able to cope with the evolving market and changing desires. Survey design methodology was adopted in this study, in which questionnaire was constructed and administered to respondents, mainly bank staff and customers.

Data were analyzed with chi-square (X2) statistical tool. The results revealed that there is significant customer-friendliness in the selected marketing strategies of Afribank in its daily operations with customers. That the strategic marketing approaches used by Afribank in delivering the services to their customers are effective and that the strategic marketing activities of Afribank has had significant positive effects on its corporate performance.

TABLE OF CONTENTS

Title Page …. …. …. i
Certification Page …. …. …. ii
Approval Page …. …. …. iii
Dedication …. …. …. iv
Acknowledgements …. …. …. v
Abstract …. …. …. vi
Table of Contents …. …. …. viii
List of Tables …. …. …. xi

CHAPTER ONE
Introduction …. …. … 1
1.1 Background of the Study …. …. …. 1
1.2 Statement of the Problem …. …. …. 5
1.3 Objectives of the Study …. …. …. 6
1.4 Significance of the Study …. …. …. 7
1.5 Research Questions …. …. …. 8
1.6 Hypotheses …. …. …. 9
1.7 Scope of the Study …. …. …. 9
1.8 Limitations of the Study …. …. …. 10
1.9 Definition of Terms …. …. 10
References …. …. …. 12

CHAPTER TWO
Literature Review
2.1 Introduction …. …. …. 13
2.2 Brief History of Afribank …. …. …. 13
2.3 Concept of Marketing …. …. …. 31
2.4 Marketing Strategies …. …. …. 33
2.5 Marketing Mix and Segmentation …. …. 36
2.6 Marketing of Banking Services …. …. 45
2.7 Effect of Competitive Marketing Environment in the
Nigerian Banking Company …. …. 49
2.8 Impediments to Marketing …. …. 51
2.9 Factors that create need for Marketing in Nigeria
Banking Industry …. …. 52
2.9 Summary
References

CHAPTER THREE
Research Design and Methodology
3.1 Introduction
3.2 Sources of Data …. …. 58
3.3 Research Design/Methods
3.4 Population of the Study
3.5 Sample size Determination
3.6 Sampling Techniques …. …. 59
3.7 Validation and Reliability of Research Instruments
3.8 Method of Data Analysis and Presentation …. …. 60

CHAPTER FOUR
Data Presentation and Analysis/Interpretation
4.1 Introduction …. …. 63
4.2 Presentation of Data …. …. 65
4.3 Analysis of the Banks Gross Earning and Deposit
From 2003 to 2005 …. …. 80

CHAPTER FIVE
Summary of Findings, Conclusion and Recommendations
5.1 Introduction …. …. 86
5.2 Summary of the Findings …. …. 88
5.3 Conclusion …. …. 90
5.4 Recommendations …. …. 92
References …. …. 95
Appendix …. …. 99

INTRODUCTION  

The role of the financial sector in promoting rapid economic development cannot be undermined. Hence, for economic growth in a country, there should be proper functioning of the financial system. Donli (2005) observed that traditionally, the role of banks whether in a developed or developing economy, consists of financial intermediation, provision of an efficient payments system and serving as conduit for the implementation of monetary policies.

The financial service in general and banking services in particular are connected to the responsibility of banks in the management of their customers’ affairs. The Banking services are of intangible, which includes among others savings mobilization, adequate credit to the preferred sector etc. Pioneer contribution of Schumpeter (1934) was of the view that financial institutions are necessary condition for economic development.

This view has been variously corroborated by other scholars like Goldsmith (1969), Cameron et al (1972) and Patrick (1966).  However, a product from the customer’s point of view is a package of benefits and satisfaction. Customers do not just want financial services, rather they count more on the benefits in which they will derive from the services. Hence, the need for marketing activities arises the financial services in general, Nwosu (1996: 72).

Marketing activities determine the needs and wants of target markets and adapts the organization to deliver the desired satisfaction more effectively and efficiently than its competitors, Kotler (1999:122). But Sanusi (2010) says there is more cause for worry; that the Nigerian banking industry is riddled with high-level corruption, mismanagement of depositors’ funds and falsehood in annual reports. 

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StudentsandScholarship Team.