THE ROLE OF MARKETING IN COMMERCIAL BANKS (A CASE STUDY OF DIAMOND BANK PLC)

ABSTRACT

This research work shows the role of marketing in commercial banks, taking Diamond Bank Ilorin as a case study. Marketing is defined as the process of getting a product to the consumer which involves a number of related business operation i.e. finding out what the consumer wants designing the product so that the consumer can buy and the producer will benefit in terms of profit. And on the other hand, Bank can be defined as an institution which accepts deposits from the public and in turn divided into various types such as commercial, industrial and etc. hence the project is determined to highlight the roles of marketing in commercial banks. The purpose of this study is to enable the banks to know this importance of marketing to an organization. It will also enable the bank to compete favourably with other banks in the banking sector without the fear of loosing their study is to identify the most profitable market assessing present and future needs of the customers. The advantages of Marketing in Commercial Bank is that it allow other to evaluate their products (services), it also encourage systematic thinking on the part of manager and also increases the number of their customers. One of the major disadvantages of the role of marketing in commercial banks is that it yields low returns since banks have the same sources and almost the same style of marketing techniques.

TABLE OF CONTENTS

Title page                                                                                                      i

Certification                                                                                                 ii

Dedication                                                                                                    iii

Acknowledgement                                                                                    iv

Abstract                                                                                                        vi

Table of contents                                                                                       vii

CHAPTER ONE

1.1            BACKGROUND TO THE STUDY                                                   1

1.2            STATEMENT OF THE PROBLEM                                                  3

1.3            OBJECTIVES OF THE STUDY                                                         4

1.4            SIGNIFICANCE OF THE STUDY                                                    4

1.5            SCOPE OF THE STUDY                                                                   5

CHAPTER TWO

2.1      MARKETING MIX                                                                            7

2.2      THE ROLE OF MARKETING IN COMMERCIAL BANK

WITH REFERENCE TO DIAMOND BANK                                   17

2.3      DIAMOND BANK PRODUCTS (SERVICES)                                20

2.4      STRATEGIES ADOPTED BY COMMERCIAL BANK TO

PROMOTE THEIR SERVICES WITH REFERENCE TO

DIAMOND BANK PLC                                                                    24

            CHAPTER THREE

3.1      RESEARCH METHODOLOGY                                                        31

3.2      SOURCE OF DATA COLLECTION                                                             31

3.3      DATA COLLECTION TECHNIQUE                                                33

3.4      SAMPLING PROCEDURE USED                                                   35

            CHAPTER FOUR

4.1      PRESENTATION AND ANALYSIS OF DATA                               36

4.2      DATA PRESENTATION                                                                   36

4.3      DATA ANALYSIS                                                                              45

CHAPTER FIVE

5.1      SUMMARY OF FINDINGS                                                             50

5.2      CONCLUSIONS                                                                                51

5.3      RECOMMENDATIONS                                                                   53

            REFERENCES

CHAPTER ONE

1.1      BACKGROUND IS THE STUDY

            Marketing as a concept is viewed in narrow way by most people, it is often referred to as strategy applicable to only the manufacturing and distributive trade. However, broader concept has recognized the relevance of marketing to service rendering establishment, such as Banking, Insurance sector, Educational and Medical institutions etc.

            In recent times, where need and business circumstances are changing rapidly, it is important that the practicing bankers should thoroughly appreciate the importance of marketing and its relevance to the baking industries based on the theory that banks rely heavily on marketing its survival and profitability. It is therefore a thing of no doubt that banks should develop the resilience a adapting to changes in needs, the environment and requirement of its customers which are becoming more sophisticated as an industry is aimed at rendering services to people.

            The role of marketing in commercial banks in this research project is limited to the marketing mix adopted by commercial banks in order to meet up with their set goals and objectives which is to render service to the people at the best minimal price profitably.

The marketing mix is referred to as the 4ps in marketing which are the product, price, promotion and place (distribution) used by the bank for efficient and effective rendering of their services to both the present and the potential buyer of their product which is the services they render.

Product of commercial banks are the services they offer to the public. These services are in form of savings account, current account, fixed deposit, financing of trade etc.

Price is simply the value expressed in term of money. It depends on the amount of money the customers are willing to pay for the services rendered to them. The pricing policy used by commercial banks should be flexible and it should consider the market segmentation and the product life cycle.

Place: this simply means the location of the bank. The bank should be located in a place which is nearer to the customers, commercial banks are either situated at commercial centers or some where nearer to the targeted market e.g. situating banks in Kwara State Polytechnic to satisfy and ease the needs of students in terms of bank draft etc.

Promotion: this is a tool used in attracting the attention and acceptance of customers for the produce. These promotional tools strategies includes sales Promotion, advertising, personal selling, publicity etc which is used by commercial bank in order to meet their set goals and objectives which in turn satisfy their customers profitably.

1.2      STATEMENT OF THE PROBLEM

            The research intends to identify the role marketing plays in the course of Diamond Bank rendering it services to its customers and to know the extent at which marketing is practiced in the Bank because any organization whether profit or no-profit oriented should have its customers as their focal point i.e. the organization should be customer oriented.

            The researcher intends t know examine the bank is coping with in the competitive environment in the banking industries, the recent increase in the number of licenced banks and the wave of deregulations currently blowing in the banking sector has made competition high in the banking industry than it was years back.

            The researchers also intend to examine the various way by which the bank market its services and the impact the service rendered make on the different categories of their customers.

1.3      OBJECTIVES OF THE STUDY 

For banks to survive, they must complete in the market and adopt the marketing concept that makes them outstanding not just with other banks but rather with other sort of non-banking financial institutions.

The study is also important to banks because it enables them to complete favourable with other banks in the market without the fear of loosing their customers to their competitors, and for the bank to survive, they must capture a reasonable share of the market.

1.4                  SIGNIFICANCE OF THE STUDY  

            Marketing strategies in commercial banks plays a vital role in achieving the objectives of banking industry to, it can not be overlooked. Therefore, the study will enable the Nigerian Banking industry realize how to formulate and implement marketing strategies and improve its effectiveness so as to know the role of marketing in Nigerian Banks.

            Nigerian Banking Industry can not service without efficient and effective marketing strategies. It is therefore, pertinent to involve market strategies.  It is therefore, pertinent to involve market strategies in the Nigerian Banking Industry.

            All the efforts of the industry to satisfy customers and to maximize profit will be abortive if emphasis is not given to marketing strategies. This study will reveal how marketing strategies could be effectively handled in order to realize the industry objectives.

            Marketing recognizes the customers as a king. The survival of any organization depends largely on how customer satisfaction is maintained. This study will enable the industry to realize the needs to satisfy customers in their operation so that the objectives of the industry could be met.

1.5      SCOPE OF THE STUDY

            This research work will basically be conducted on members of the public who patronize Diamond Bank Services. These members of the public are termed customer, they include those who keep one account or the other with the bank and others who come to the bank to transact business with the bank.

            This research work will be limited to Ilorin metropolis and all well as the customers residing in the town since a Diamond Bank Ilorin branch is the case study of the research.

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. 

ProjectShelve.com shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website ProjectShelve.com and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on ProjectShelve.com, the management of ProjectShelve.com has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.