ABSTRACT
The basic objective was to empirically evaluate marketing concept and the impact on the profitability of selected financial firms in Aba, Abia state. The study made use of primary data which were obtained through administration of questionnaires in a field survey. The data collected from the returned questionnaires were analyzed using descriptive statistics (frequency and percentage) and chi-square (x2) technique. The empirical result from descriptive statistics indicates that the majority of the respondents were, females with 56.5%, fell into the age bracket of between 31-40 years, single with 54.3%, had B.sc./HND with 50%, civil servants with 32.6%, graded quality of bank service to be fair with 48.9%, spent above 55 minutes in the bank with 43.5% and graded bank staff and customer relationship to be good with 43.5%.The result of the chi-square (x2) analysis indicates that there was a significant relationship between application of marketing concept and bank profitability. It was recommended that the management of the banks is to improve services render to customers, they should employ more staff to render smoother services and to deliver training programmes to increase the knowledge of line managers and other staff.
TABLE OF CONTENT
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of content vi
List of table ix
Abstract x
CHAPTER ONE
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Research Hypotheses 4
1.6 Significance of the Study 4
1.7 Limitations of the Study 5
1.8 Scope of Study 5
1.9 Profile of the Financial Firms 5
1.10 Definition of Terms 5
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0 Marketing and Banking 11
2.1.1 Marketing Management 12
2.1.2 Marketing Concept 18
2.1.4 Marketing Environment and Communication 21
2.1.5 Vital element of Marketing relevant to banking 25
2.6 Summary 25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 The Research Design 28
3.2 Area of the Study 28
3.3 Population of the Study 28
3.4 Determination of the Sample Size 29
3.4.1 Determination of sample size using Yaro Yamane formulae 29
3.5 Method of Data Collection 31
3.6 Structuring the Instrument/retesting 31
3.7 Method of Data Presentation 32
3.8 Sampling Techniques Method 32
3.9 Validity and Reliability 32
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULT
4.0 Introduction 34
4.1 Rate of Return of Questionnaires for bank customers 34
4.2 Demographic Profile of the Bank Customers 34
4.2.1 Gender of Bank Customers 35
4.2.2 Age 35
4.2.3 Marital Status 36
4.2.4 Educational Attainment of Bank Customers 37
4.2.5 Occupation 38
4.3 Response to the Items in the Questionnaires to Bank Customers 38
4.3.1 Grading of quality of service rendered by Bank for customers comfort 39
4.3.2 Time spent by Customers in the Bank 39
4.3.3 Grading of Bank staff and Customers Relationship 40
4.3.4 Medium of Bank Communication to Customers 41
4.3.5 Improving Bank Level of Performance 41
4.3.6 Services to be improve by Bank 42
4.3.7 Reason for change of Bank of Customers 42
4.4 Demographic Profile of the Bank Staff 43
4.4.1 Gender of bank customers 43
4.4.2 Age 43
4.4.3 Marital Status 44
4.4.4 Educational Attainment profile of the respondents 45
4.3 Testing Hypothesis 47
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 51
5.2 Conclusion 52
5.3 Recommendation 52
REFERNCES
LIST OF TABLES
Table 1: shows the population strength 29
Table 2: sample size distribution 31
Table 4.1: Gender Profile of respondent 35
Table 4.2: Age Profile of the Respondent 36
Table 4.3 Marital Status Profile of the Respondent 36
Table 4.4: Educational Attainment 37
Table 4.5: Occupational Profile of the Respondent 38
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Indeed, marketing concept is the philosophy that firms should adopt to analyze the needs of their customers and then make decisions to satisfy those needs, better than the competitor. Today most financial firms have adopted the marketing concept, but this has not always been the case. In the world today everything we do involves marketing and related activities, goods, services or ideas. However, business survival in terms of introduction, growth, maturity and even death mainly depends on the effective and efficient utilization of the marketing concept. All the same a lot is involved for a company to build its profitability and survival in the market.
Furthermore, the profitability of the financial firms can only be based on how effective and efficient the financial firms are able to utilize the marketing concept. Marketing, more than any other business function deals with customers. The goal of marketing is to attract new customers by promising superior value and to keep and grow active and potential customers by delivering satisfaction for the purpose of making profit.
According to Kotler (2010) “broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Hence, marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”.
As the case may be, creating value for customer and making profit starts with understanding the market place and customer needs and wants, designing a customer driven marketing strategy; constructing a marketing programmes that delivers superior value; building profitable relationship and creating customer quality. The above could be seen as marketing processes.
Boone and Kurtz (1989), marketing has been defined as an organizational function and set of professions for creating, communicating and delivery of value to customers in the way that benefit the organization and the stakeholders. Also, on its own the institute of Marketing Britain (IMB) defined marketing as a management process which identifies, anticipates And satisfy customer requirement, profitably.
Above all, marketing concept stands as the basic tool which banks cannot afford to miss in their banking services. It’s not only for banks, No! But, to all production firms institutions, government, to mention but a few.
1.2 Statement of the Problem
Performance is the key word in banking, bank staff especially the cashiers and the clerks serve as the image maker of the banks but, they are not living up to the expectations. Moreover, most Nigerian banks have failed to give an appropriate space and implementation of marketing concept in their day to day business affairs. Also. And many banks seem not to understand what marketing concept is and its positive influence on their profitability objectives.
Most banks lack good banking strategies in attracting the interest of their customers and in satisfying/rending services that have the power to retain the customer.
Bank staff/management lack good relationship with their customers.
However, the customer expectations are not basically met, and the customer have negative experiences as a result of above mentioned problems.
1.3 Objectives of the Study
The major objectives of this study is to determine how marketing concept can be used to effectively and efficiently expand or increase the profitability of financial firm and their service performance in the financial market or banking sector. Other objectives include to:
(i).ascertain the effect of the adoption of marketing concept on bank return on asset
(ii). Determine the adoption of marketing concept on bank return on equity
iii. determine the relationship between the adoption on marketing concept on return on investment.
1.4 Research Questions
In pursuance of the above objectives, questions are asked as follows:
1. To what extent does the adoption of marketing concept affect bank return on asset
(ii). What are the effect of adoption of marketing concept on bank return on equity
iii. Is there any relationship between the adoption on marketing concept and return on investment.
1.5 Research Hypotheses
To make a very good and useful result in this research work, the following hypothesis will be formulated and tested statistically.
H01: marketing concept has no significant effect on bank return on asset
H02: marketing concept has no significant effect on bank return on equity
H03: There is no significant relationship between marketing concept and return on investment.
1.6 Significance of the Study
The study was intended to tackle the problem of bank marketing and solution given for improvement.
However, this study would be beneficial to Access Bank PLC, Fidelity Bank Nig. PLC and First Bank Nig. PLC. Aba, Abia state as it will enhance the banks understanding of marketing concept and bank profitability and create a good and reliable public image.
Furthermore, this study would increase the bank share in the financial market if proper marketing activities are appropriately applied. It would provide the necessary information needed to boost the strength of the bank, strengthen the weakness of the bank, increase their opportunities and tackle the threats of the bank.
Furthermore, being customer oriented, the bank will understand the financial needs of its various customers and find out the most effective/efficient ways to satisfy those needs.
1.7 Limitations of the Study
The researcher met with the following physical and logistical limitations in addition to the limitations imposed by cost and time. As a matter of fact, the researcher has class works and exams to do and as such does not have enough time to cover much area of study. There was lack of adequate materials relevant to this work. The researcher faced a big challenge both in collection and analysis of research material from the bank.
More so, releasing of information by Access Bank PLC, Fidelity Bank Nig. PLC and First Bank Nig. Plc. Aba, Abia state was a great challenge because of bureaucratic problem associated with research findings generally in the country. Above all, the researcher lack fund to make this work much more than it should be.
1.8 Scope of Study
The study will cover some few selected financial firm in Aba, Abia State. The work will cover the following two banks situated in Aba, Abia state. The banks are Access Bank PLC, Fidelity Bank Nig. PLC and First Bank Nig. PLC
1.9 Profile of the financial firms
1.Access Bank PLC.
Access bank plc is one of the five largest banks in Nigeria in terms of assets, loan, and deposit and branch network. Established in 1989, access bank plc has grown to a network of over 366 branches outside Nigeria with over 5.7 million customers and over 1,043 automated teller machine (ATM). Access bank plc is the flagship company of financial conglomerate known as access bank group. The member companies of the group include the; the stock of the group trades on the Nigerian stock exchange (NSE).
As part of the continued growth strategy, access bank is focused on mainstreaming sustainable business practices into its operations. The bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant. They offer product services like: e-banking/on-line service – mobile baking and internet banking. Traditional investments and products – call accounts/deposits, tenured deposits, treasury bills, domiciliary accounts. Lending solutions – overdrafts, time/term loans, bonds and guarantees, mortgages, vehicle finances, personal loans and specialized financing.
Access bank has a mission: setting standard for sustainable business practices that unleash the talents of our employees, deliver for the markets and communities they serve. They also have a core value: leadership, excellence, empower employees, passion for customers, professionalism and innovation.
In 2014, customer deposit base from N1.201trillion to N1.33trillion, an 11% growth, bank earning grow to N206.7billion from N204.4 billion in 2012. Bank cost of fund from 4.5% to 46% while non-performing loans (NPL) ratio decreased to 2.7% from 5.0%, profit before tax (BPT) of N44.9billion which is a 3% decrease compared to the N46billion in 2012.
2. First Bank of Nigeria
First Bank is one of the oldest financial institutions in Nigeria and was the first bank to be established in West Africa. The bank was incorporated as a limited liability company in March 1894 and was listed on The Nigerian Stock Exchange in March 1971. Following the Central Bank of Nigeria’s (“CBN”), induced industry-wide consolidation in 2005, the bank acquired its merchant banking subsidiary, FBN (Merchant Bankers) Limited and MBC International Bank Plc. The bank offers a wide array of financial services to a diverse customer base through its local and offshore offices, including 465 branch offices country wide and 532 ATM’s. In addition to growing organically through new products and branch development, other viable domestic acquisitions are being explored. The intention is to extend the branch network to 600 by the end of 2008.
Strategy and operations
First Bank has been appointed by the Debt Management Office as one of the 15 primary dealers in Federal Government Bonds. The primary dealers include 10 banks and the 5 discount houses. First Bank is also one of the 10 banks approved as a settlement bank by CBN. In addition, the bank is a leading member of the ATM Consortium (an off-site independent ATM service provider), as well as a member of Inters witch Limited, (an electronic transaction switching and payment processing company). First Bank is also a major player in Western Union Money Transfer Services. Operationally, First Bank has two strategic business units (“SBU’s”), namely: Corporate Banking and Retail Banking. The corporate banking unit provides banking services to the top end of the market, comprising large corporate organizations and government parastatals, while the retail banking unit offers an array of retail and commercial banking services. The retail banking unit, which also encompasses branch operations, is further subdivided into three directorates, namely: Lagos & West, North and South. Support services are provided by two strategic resource functions: Operations and Services directorate and Risk and Management Control directorate. The bank has 9 subsidiaries, an associate company, and 4 affiliates providing mortgage banking, capital market operations, fund management, insurance broking, trusteeship, registrar ship and pension
3. Fidelity Bank Plc
Fidelity Bank Plc began operation in 1988 as Fidelity Union Merchant Bank Limited. By 1990, it has distinguished itself as the fastest growing merchant bank in the country. However, to leverage the emerging opportunities in the commercial and consumer end of financial services in Nigeria, in 1999 it converted to commercial banking and changed its name to Fidelity Bank Plc. It became a universal bank in February 2001, with a license to offer the entire spectrum of commercial, consumer, corporate and investment banking services.
In 2011, the bank was ranked the 7th most capitalized bank in Nigeria, the 25th most capitalized bank on the African continent and the 567th most capitalized bank in the world. As of December 2013, Fidelity Bank Plc was a large financial services provider here in Nigeria with total assets estimated at over US$6.318 billion (NGN: 1+ trillion), and shareholders’ equity in excess of US$1 billion (NGN: 158 billion). At that time, the bank served 2.3 million customers at about 220 branches nationally.
Fidelity Bank is today ranked amongst the top ten (10) in the Nigerian banking industry, with presence in the major cities and commercial centers of Nigeria. Over the years, the bank has been reputed for integrity and professionalism. It is also respected for the quality and stability of its management. Fidelity staffs are also respected in the Nigerian banking industry for the quality of training they receive on the job, as well as good business schools both in Nigeria and overseas. The management is particular about the quality of people that join the system. To qualify as member of Team Fidelity, a candidate is expected to possess three vital statistics, with the acronym TAC:
- Talent (an innate mental aptitude),
- Ambition (a desire to succeed) and
- Character (a total quality of integrity which will guide that talent and ambition to productive ends).
The management is focused on building and maintaining a virile and well respected brand that carter to the need of its growing corporate, commercial and consumer banking clientele. For this purpose, the bank is leveraging its pedigree in investment banking.
Fidelity Bank also enjoys the respect and partnership of a network of off-shore institutions with which it has correspondent banking, continuation lines, credit and other relationships. These include; ANZ London, Afri-Ex-im bank, Cairo, Egypt, ABSA South Africa, Commerce Bank, Frankfurt, Citibank, N.A. London and New York, FBN Bank, UK Ltd, SCB London, HSBC, US EX-im Bank, USAID, etc.
FIDELITY PORTFOLIO
Fidelity Bank Plc has the following products in its portfolio;
Current Account, Savings Account, Fidelity Consumer Finance, Fidelity Cards, Fidelity Small Business Account, Fidelity Exchange Rate ,Fidelity tithe, etc.
1.10 Definition of Terms
Marketing: the process by which companies create value for customers and build strong customer relationships in order to capture value from customer in return. (Kotler 2010)
Marketing Concept: the marketing management philosophy that holds that achieving organizational goals depend on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. (Kotler 2006)
Profitability: the capacity or potential of a project or an organization to make a profit.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment