THE ROLE OF PRODUCT MANAGEMENT IN THE MARKETING OF BANKING SERVICE (A CASE STUDY OF FIRST BANK ABA BRANCH)

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ABSTRACT

          This study Examined the role of product management in  the marketing of bank service.  Some of the objectives of this study were.

1.                 To find out the difficulties environment in the process of product management in first bank and

2.                 To determine, if the management of the bank  product leads to increase product quality

3.                 To offer possible solution and suggestion for addressing such  problem or make recommendation that lead  better customer relationship.

4.                 To determine the effect of product management bank on profitability.

Based on these objectives, hypothesis were formulated , Data were sourced, extensive literature review on text book, journal and materials on the area of the study was carryout, while primary data sourced from respondent.

          The population of he study include.

Bank personnel and customer of the said bank in Aba metropolis.

Burley formula was used based on census figure of 1991 population

          The data collected were analyzed using simple percentage and statistical table.

          A careful study  of data collected shown the following.

1            That services rendered by the said bank stagy the customer but      not effective and efficiently as possible .

2.          It show that with a well organize product management will leads    to increase in the adoption process    of the  product by the       consumer with these it make it possible for them to compete effective with other organization in same business .

3        The researcher agrees that the managers and bank directors   agrees that product management is very a necessary in marketing      activities of every organization or business.  

The researcher the following recommendations after careful study of the finding.

1.       That the organization should increased the activity that is      associated  with product management which will bring about       increase in sales of the  product and also organization image.

2.          The employee of the organization should be educated more of the  importance of product management in an organization  

3.       The organization should seek support from consumer customer      of the organization in order help in  given information needed for    proper product development and management.  In doing these a   welfare department need to be establish in the organization.

          The researcher concluded that the organization should be up and doing in product management to produce services that will effectively and efficiently satisfy the customer needs.


TABLE OF CONTENTS

Title page                                                                       ii

Approval page                                                               iii

Dedication                                                                     iv

Acknowledgement                                                                   v

Abstract                                                                         vii

Table of contents                                                           x

CHAPTER ONE

Introduction                                                                            1

1.1            Background of the study                                               1

1.2            Statement of the problem                                              6

1.3            Objective of the study                                          7

1.4            Formulation of hypothesis                                   9

1.5            Significance of the study                                                10

1.6            Scope of the study                                                         11

1.7            Definition of terms                                                         12

CHAPTER TWO

Literature review                                                            13

2.0            What is a product                                                          13

2.1            New product development process  

in the banking industries                                                13

2.2            The concept of product management                             15

2.3            Distribution of bank product                               16

2.4            Promotional strategies for

bank product                                                        18     

2.5            Pricing strategies for bank product                      19     

2.6            Problem of service product marketing                           22

2.7            Problems Of Services Products

Marketing                                                             24

CHAPTER THREE

3.0            Research methodology                                         27

3.1     source of data                                                       27

3.2            Population of study                                             29

3.3            Sample size determination                                   29

3.4            Sampling techniques                                            32

3.5            Research instrument used                                    32

3.6            Method of data analysis and treatment                          33

3.7            Limitation   of the study                                       33

CHAPTER FOUR

4.0            Presentation, analysis and      

interpretation of data                                           35     

4.1     presentation and analysis of data                         35

4.2            Testing of hypothesis                                           47

4.3            Interpretation of data                                           56

CHAPTER FIVE

Summary of finding recommendation

and conclusion                                                               57

5.1     Summary of findings                                            57

5.2     Recommendation                                                 58

5.3     Conclusion                                                           60

Bibliography                                                                  62

Appendix                                                                       64

 

 

 

 

 

RESEARCH PROPOSAL

Topic:   The role of product management in the marketing of bank service in Aba, Abia state

          (a case study of first bank of Nigeria PLC Aba)

OBJECTIVE OF THE STUDY:  The objective of these research work is to determine the role of product management in the operation of banking service with reference to first bank, Nigeria Plc, and also to measure, ways though which product management can influences the marketing of bank service.  The research work will also show way through which product management can be organized in such way that organization expansion

SOURCE OF DATA:    The researcher hope that the date needed for the research work will be available through primary  and secondary source of data collection method, the researcher is determine to review and observe all the necessary material that will make these research work a successful one.

 

 

PLAN FOR THE REVIEW OF RELEVANT LITERATURE:

Text book:  Journal, Newspaper, and already made research work will act as a source of information needed to be review in the course of carrying out the research work.  also the researcher hope to review the records and report or organization in order collage that needed information data.

METHOD OF FIELD (PRIMARY) DATA COLLECTION:

   Well structured questionnaires are well organized interview will act as the source of primary data collection, observation will also be use in gather the information needed in fulfill the objective of the  research work.

The research instrument to be used for the study:  the researcher plan to use statistical table, top man’s formular, Bourley formular, chi-square, and figures table in order analyzed the information and data collected by the researcher.   

THE SCOPE OF THE STUDY.

The study will only investigate the role of product management in the marketing of banking service

STATISTICAL TESTING

Sample table and percentage will be used to analysis the hypothesis, questionnaire value  chi square will also used for testing the hypothesis  

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND  OF THE STUDY

Product management embraces the task of adjusting the product throughout its life to match the ever-changing demands of the market place.  Too many organizations make the mistake of thinking that consumers fed and act as they do ad share their wants.

The job of managing a product, then is one of constantly monitoring the market and adjusting the products to meet the markets needs and wants.  The better the product matches the needs of  its market, the more successful it is likely to be.

Today, as product and service become more, and more commoditized many organization are moving to new level in creating value for their customer.  To differentiate their offers, they are developing and delivering total customer, experience, whereas  product are tangible and service are intangible, experience are memorable, whereas product and service are memorable when as product and service are external, experience  are personal and take place in the minds of individual consumer. Organization that – market experience realize that customer are really buying much more than just product and service.

For a product to successful gain acceptance in the market environment a well organized product development and management must be there product management is the process of tilling the proposed product to the requirement and opportunities of the market (Rewold etal 1977) product management, involves the process of anticipating the needs of the market place  initiating action towards the identification and production of product and service which will best satisfy the needs and wand of the  trapped market environment. Product management is internal factor in an organization.  A product once, it is commercialized face the problem of management.  The firm is not alone in the industry and its competitor will want to enter the market, if the product proves successful.  It therefore, follows that the firm must manage it product right from the introduction state till the maturate or even declining stage (Buzzell 1966)

Product management is however, characterized by  danger and uncertainties.  The danger may be in  washing financial and human resource  with achieve success protection and market acceptance the uncertainties arise as to whether the product will service, face much competition or die on the introduct Anyanwu (1993).

Managing the product variable embraces planning and  or service to be marketed by the company.  The product mix element constitute the most important it is thus produce that every producer tries to conceptualize in the form most desired by the consumer in order to satisfy his needs for proper management of product, the organization must consider all the internal factors of the organization (Dick Barry 1981).  This is because this factors will determine the success of the product in the marketing environment. 

In product management process, the product life cycle provide useful information on how to apply the principles of marketing and management in organizing and in carrying out that activities that will successfully market the product.  If a firms fact to manage its product, it plan, to fail in launching its, product.  There are reasons why product fails in the marketing environment 

 

They are as follows

1.                 Lack  of distinctive advantage in product performance and price

2.                 Over estimation of the target market which may result in low demand

3.                 Inability to utilize company strength to capture profitable opportunities

4.                 Unpredictable change in consumer preference for goods and service

5.                 Product which facilitate competitive entry into the market by competitor,.

6.                 Lack of support from the marketing intermediaries     

In order to avoid the above mentioned area, the firm must consider and evaluate the product satisfaction and acceptance in such a way that favours the consumer and the organization in general. (Anyanwu 1993) in managing a product especially in marketing Bank service, the function varies from organization objective to the other.  But the basic functions in managing a product are  the same with the principle function of management as it is stated in the management  field.  But the different is that product management are guided toward developing are organizing a successful product  that will gain acceptance in the marketing  environment the following are the basic function of product management.

PLANNING FOR THE PRODUCT.

Planning is the first product management function on which the other take bearing. It refer to as forecasting the product future circumstance and requirement, dealing product objective, and determine product to be followed and set  product  standard- planning in product management plays an important role because it determine the successful of the  product in the marketing environment

   ORGANIZING THE PRODUCT

How to accomplish, the goal is the next this organizing the product is the process of dividing and evaluating the product attribute and successfully accomplish the stated product objective.

Controlling the product ad the environment controlling the product is the process of ensuring that the product objective are reached and deviation from planning for the product are corrected controlling could be effective.  When report are got from the marketer and sales representative regarding area of  deviation  for correction purpose (Anyanwu 1993)

However, the organization must understand and monitor the actors and forces that effect the environment  before organizing and co- ordination the product management process.

This is because the environment is a very dynamic one and it needs a well organized   structure, before any marketing activities can gain acceptance to the environment.

 

1.2            STATEMENT OF THE PROBLEM

First bank has been making relentless efforts towards the management of product in Aba, Abia state, yet many of the products managed have all been able  to satisfy the need of their target customer.  As a result of this, these product do not receive adequate patronage and  resources wasted.  This affects bank profit negatively.

Moreover, there are many hard  nuts to crack in the management of product which make it difficult for management to introduce new product even when old ones lack patronage- and this effects the ratio at which first bank manage product and hence slowness  in generating income.

Again, some of the target customers are not aware of  the  existence of some product of the bank which make such products lack patronage and even when patronized only a few people patronize them.  Hence banks effort in their management becomes futile. Furthermore, customer  of the bank are not adequate educated on the product managed and some bank staff are not properly equipped on the marketing  of financial service which makes it possible for profitable opportunities to be grasped in the bank such lack of education readers bank effort fruitless and resources used in managing such product wasted.

Finally, some management of banks find it difficult to segment market for their product in that the product go to  wrong of the market where the product receive little or no demand which in the end readers  banks effort unprofitable.  

 

1.3            OBJECTIVE OF THE STUDY

The rationale befriend this study is to examine different product of the first bank are discover for they are managed.  Other objectives are as follows:

1.                 To find out the difficulties environment in the process of product management in first banks.

2.                 To discover whether banks  customer are really satisfied with bank  products or not are why?

3.                 To find out  how best customer of the banks can be educated on the use of the bank product and how best to get them  known about the existence of such products.

4.                 To discover how best banks products market can be segmented for fruitful virtues.

5.                 To determine the effect of product management bank on  profitability

6.                 To determine if management of bank products leads to increased product qualify.

7.                 To offer possible solutions/ suggestion for addressing such problem and /or make recommendation that may lead  to better bank customer relationship, increase customer satisfaction and bank profitability for brighter future.

 

1.4            FORMULATION  OF HYPOTHESIS

In the process of consulting this research, the following hypotheses have been stated.    

Hypothesis I

Ho:   First bank products do not satisfy customer basic  at least           

Hi: first bank products satisfy customer basic at least

          Hypothesis II

Ho: the major problem encountered in product management is not wrong segmentation  of target market

Hi; The major problem encountered in product management is wrong segmentation of target market

          Hypothesis III

Ho:  Effective management of bank product result increases profitability  in banks

Hi:  Effective management of bank product  do not leads to increase profitability.

 

 

1.5     SIGNIFICANCE OF THE STUDY 

          This study will in a great way be of significance to the bank mangers, customers, individual wishing to engage themselves in banking business, unemployed graduate,  government and corporate organization in Aba.

          To the government the result of the study will not only enable them find out a well defined administrative strategies and management problems of the bank firms of various state, but also would act as a panel to solving similar problems of  government.

          To the customer, it will expose them to the various marketing strategies that will lead to optimum banking business and high light problems facing the bankers so to prefer a better solution, it will also expose the advantages they stand to benefit from the bank service patronization.         

          To the corporate organization and other people or individual wishing to engage themselves into banking business, the study will enable them adopt the policy of consumer banker satisfaction as much as possible.  And also the possible suitable management procedure that will help them operate at the long run, since this is the motive behind every business .

          To the students,  the study will enlighten their minds on the great importance of product to an effective and efficient marketing strategy through the roles bank services plays in the  finance sector.

          Finally to the research, the study will enhance  an indepth knowledge of product management marketing strategy, the management and operations while to the customer, to appreciate  the marketing means through which they reach them  and perhaps bear with them whether they live stock of expectation to problem beyond their control.

 

1.6            SCOPE OF THE  STUDY

This research work encompasses product management in all first bank in Aba as  at date.  Taking four branches of the bank in Aba in Abia state as a case study.  The effort they make toward managing such product and problems they consider in doing.

 

 

1.7            DEFINITION OF TERMS

1.       BANK:   Any person who carries  on  banking business and includes a commercial bank, an acceptance house, discount house and other financial institution.

2.     PRODUCT MANAGEMENT:  The tasks of adjusting the product throughout its life to match the ever- changing demand of the market place

3.       MARKTING:  The sensing and serving of consumer needs through an exchange relationship aimed at creating value in form of profit and satisfaction to the consumer.

4.       MARKETING SEGMENTATION:  The process of dividing the total heterogeneous market for a product into several submarket or segments each of which tends to be homogenous in all significant aspects.


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