An Appraisal of the Application of Direct and Online Marketing in the Banking Industry

An Appraisal of the Application of Direct and Online Marketing in the Banking Industry.

ABSTRACT

The purpose of this research work is to appraise the application of direct and online marketing in the Banking Industry. Direct and online marketing use a wide variety of channels to reach prospects and customers.

Participating companies can use these strategies as instruments to rate their performance in relation to the best practices of high performing product or service.

The following objectives were formulated; to determine the reasons for application of direct and online marketing, to evaluate how effective channel of communication impacts on the banks profitability.

To ascertain if the application and usage of direct and online marketing is deceptive and fraudulent to the banks customers, to determine if there are benefits tied to the application of direct and online marketing.

The study had a population of 2,401, out of which a sample size of 343 was realized using Taro Yamane formula. Questionnaire was primarily used for data collection. 343 copies of questionnaire were distributed and 304 copies were collected.

The survey research method was adopted for the study while chi-square was used to test the hypotheses. The findings showed that the application of direct and online marketing communication enhances marketing of banking products and services, effective channel of communication impacts positively on the profitability of the bank.

Application and usage of direct and online marketing by zenith bank is deceptive and fraudulent to their customers, the benefits tied to direct and online marketing attracts customer’s patronage.

The study concludes that direct and online marketing is a major index in increasing the return on investment and productivity level of banks.

The study recommends that Banks should periodically organize seminars and symposia for their customers on the need to safeguard their pin code and in doing so give them quality services on automated teller machine.

TABLE OF CONTENTS

Title page- – – – – – – – – – – i
Certification – – – – – – – – – -ii
Approval – – – – – – – – – – -iii
Dedication – – – – – – – – – – -iv
Acknowledgments- – – – – – – – -v
List of tables – – – – – – – – – -vi
Abstract – – – – – – – – – – -viii
Table of contents- – – – – – – – – -ix

CHAPTER ONE: Introduction- – – – – – – 1

1.0 Background of the study – – – – – – -1
1.1 Historical background of zenith bank- – – – – 3
1.2 Statement of the problem – – – – – – -4
1.3 Objectives of the study – – – – – – – -5
1.4 Research questions – – – – – – – -6
1.5 Formulation of hypotheses – – – – – – –6
1.6 Significance of the study – – – – – – -7
1.7 Scope and limitations of the study – – – – — -8
1.8 Definition of terms – – – – – – – -8
References- – – – – – – – – – -11

Chapter two: Review of Related literature- – – – – -13

2.0 Introduction – – – – – – – – -13
2.1 Brief history of direct marketing and its application – – -15
2.2 Development of online marketing – – – – – -16
2.3 The growth of direct marketing in Nigeria – – – -19
2.3.1 E-business development in Nigeria – – – – – – 19
2.3.2 E-business practice in Nigeria – – – – – – – -21
2.3.3 Distinction between E-commerce and E-business – – – 23
2.3.4 The internet economy, E-business and E-commerce – – – -24
2.3.5 Different types of E-business – – – – – – – 24
2.3.6 B2B E-commerce – – – – – – – – 25
2.3.7 Benefits of B2B E-commerce in developing markets – – – 26
2.3.8 B2C E-commerce – – – – – – – – 27
2.3.9 B2G E-commerce – – – – – – – – 29
2.3.10C2C E-commerce – – – – – – – – 29
2.3.11C2B E-commerce – – – – – – – -30
2.3.12M-business – – – – – – – – -30
2.4 Factors influencing E-business – – – – – – -31
2.5 Components of a typical successful E-business – – – – 33
2.6 Relevance of internet to E-commerce- – – – – – 35
2.6.1 Importance of intranet to a business engaging in E-business and Ecommerce 35
2.7 Application of direct marketing in zenith bank – – – – 41
2.8 Application of online marketing in zenith bank – – – – 43
2.9 Strengths of direct marketing – – – – – – – 46
2.10 Weaknesses of direct marketing – – – – – – 46
2.11 Strengths of online marketing – – – – – – 47
2.12 Weaknesses of online marketing – – – – – – 48
2.13 Comparison of direct and online marketing – – – – – 48
2.14 Summary of reviewed related literature – – – – -50
References – – – – – – – – – – -52

Chapter three: Research methodology – – – – – -55

3.1 Research design – – – – – – – – -55
3.2 Sources of data collection- – – – – – -56
3.3 Instruments for data collection- – – – – – -56
3.4 Population of the study– – – – – – – -57
3.5 Sampling procedure – – – – – – -57
3.6 Determination of the sample size– – – – – -58
3.7 Method of data Analysis – – – – – -60
References- – – – – – – – – -61

Chapter four: Data presentation and analysis – – – – -62

4.1 Introduction – – – – – – – – -62
4.2 Testing of Hypotheses- – – – – – – -71

Chapter five: Summary, conclusion and Recommendation- – -78

5.1 Summary of findings – – – – – – – -78
5.2 Conclusion- – – – – – – – – -78
5.3 Recommendation- – – – – – – – -79
Bibliography– – – – – – – – – -80
Appendices– – – – – – – – – -82

INTRODUCTION

1.1 Background of the Study

History has shown that societies have unique aspect of Interaction which makes life substantial for survival and co-existence. This unique aspect of interaction is referred to as marketing.

Marketing entails ideas which are transformed into products/ services and all the activities that ensure its availability to the prospective customer for mutual benefit.

For the scope of this work, marketing involves the process of communication by a marketer of goods and services to prospective customers. This communication provides information about features, condition of purchase, availability and image.

Many are intended as direct stimuli to a purchasing decision. It can also be viewed as the means by which firms attempt to inform, persuade and remind consumers, directly or indirectly about the products and brands that they sell in order to arouse purchasing instinct in the sense of their prospective customers.

Marketing communication is indirect where marketer prospect interactions are inhibited. This may be a resultant effect of one-way channel of communication as in the use of broadcasting media such as television, Radio, Newspapers, and billboards.

It could also be as a result of interposition of an intermediary of some kind that does not have a principal- agent a relationship with the marketer. E.g. a shop assistant in a retail department store.

REFERENCES

Business Software Alliance (2001) E-commerce and Developing     Markets: Technology, Trade and Opportunity.

Bonnett, Kendra, (2000). An IBM Guide to Doing Business on         the    Internet    U.S.A: McGraw-Hill.

Business Software Alliance (2001) E-Commerce and Developing Markets: Technology, Trade and Opportunity.

Bonnett, Kendra, (2000). An IBM Guide to Doing business on       the    Internet    U.S.A McGraw Hill.

Cronin, Mary J. (2000). Unchained Value: The New Logic of Digital Business U.S.A: Harvard business School Press.

Cronin, Mary J., ed. (1998).  Banking and Finance on the     Internet. U.S.A.: John Wiley & Sons.