topic of this study is chosen bearing in mind the crucial role of effectiveness
of marketing strategies on banks performance.
proliferation of banks in Nigeria coupled with advancements in technology
brought about competition in the industry from the hitherto "arm chair"
banking of the past whereby customers run after banks. Given the dynamic of the
operating environment, banks had to employ various marketing strategies to make
their services in order to survive.
research proposal is therefore intended to carry out an evaluation of
effectiveness of marketing strategies on bank's performance by Stanbic IBTC.
The study tries to evaluate the effect of marketing by Stanbic IBTC to its
phenomenal success as shown in its consistent profitability and gross earning as
data was obtained from Stanbic IBTC. These data are: all audited financial
reports, various bulletins and brochures issued by the bank at various times as
well as bank's rating reports issued by independent consultants.
conducting the analysis, simple regression techniques was used to analyze the
existing secondary data and it was established that effective marketing
strategies has a significant effect on bank's performance as measured by gross
earnings and profitability, which is a yardstick for success.
TABLE OF CONTENTS
BACKGROUND OF STUDY
1.2 Statement of the problem
1.3 Objective of study
1.4 Significance of the study
1.5 Research Question
1.6 Research Hypothesis
1.8 Limitation of Scope of Study
1.9 Organization of Study
1.10 Definition of terms
REVIEW OF LITERATURE
2.1 Market Concepts
2.2 Involving Effective Market Strategies
2.3 Understanding Customer and their needs
2.4 New Product Development Strategies
2.5 Image Projection Strategies
2.6 Market Communications
2.7 Nigeria Financial System
2.8 Classification of Banking Product
2.9 IBTC'S Marketing of Financial Services
2.10 Products and Services Provided by IBTC
2.11 Theoretical Framework
2.12 Marketing Strategies of IBTC
2.13 Marketing Strategies in term of Corporate
and Product differentiation
2.14 Evaluation of Marketing Strategies of
on consumer satisfaction
3.1 Analytical Technique
Standard Error Test
3.2 Model Specification
3.3 Definition of Variable
3.4 Nature and Sources of data
3.5 Limitation of Methodology
3.5.1 T - Test
F - Test
DATA ANALYSIS AND INTRODUCTION OF RESULT
4.1 Presentation of hypothesis
4.2 Restatement of hypothesis
4.3 Empirical Result
5.4 Suggestion for further research
OF THE STUDY
in 1993, the National Westminister Bank, London Chairman Lord Alexander, was
asked on a Television Programme how bank differentiate itself as a brand. He
appeared confused by the question. Someone from the marketing industry who
wished to be anonymous wrote to Lord Alexander and pointed out that really
marketing and branding were perhaps issues that should not have confused him.
Branding and marketing were not highly important Issues.
years later in 1995, National Westminister Bank started addressing people on
how marketing can be used to make it different from the pack. National
Westminister's story typified what used to be prevailing altitude in financial
service organizations in Nigeria "Customers may be king, but we crown
foundation for the present operation environment for Nigeria Banks was laid by
the adoption of the Structural Adjustment Programme (SAP) in 1986 by the
Nigeria Government. President Ibrahim Badamosi introduce SAP. The major policy
instruments of SAP are:-
Privation and commercialization of public
sector enterprises, debt rescheduling conversion.
Adoption of appropriate pricing policies for
all sectors with greater reliance on market fore.
Reduction /elimination of administrative
Adoption of realistic exchange rate policy
and liberalization of external trade.
Monetary and credit restraint by Government.
to this, the Government had maintained a pervasive if not a suffocation
presence in the banking sector.
coming into force of SAP in 1986 and the consequent deregulation of the
financial system led to the Nigeria banking industry witnessing a phenomenal
explosion in the number of licensed banks, both merchant and commercial banks
operating within the system, owning a bank became the vogue. Such was the
situation that forms the number of 45 banks, in 1986, it rose to 122 and in
1992 67 commercial banks was established and 55 merchant banks. There were also
the specialized banks like the people's bank, the community banks, and primary
mortgage institution like financial houses.
to 1986, the banks that were operating in the country were used to "arm -
Char" Banking whereby the banks officials sit in the offices while
customer look for them.
in Nigeria was then essentially a seller market with customer made to have the
erroneous impression that it was a privilege to enjoy the service of a bank.
The proliferating of the banking institutions have however led to increased
competition, which had compelled banks not only to adopt marketing principles
but to also differentiate their offerings.
1.2 STATEMENT OF THE PROBLEM
the foregoing background of study, there is no doubt that the banking industry
will face greater challenges ahead. This research in aimed at finding solution
to more of the problem of poor quality of financial services in Nigeria.
have been wide spread complaints b customers for delay in effecting simple bank
transaction. Customer wait for hours in the banking hall of Nigeria banks to
obtain baking facility. This is one of the most legitimate criticisms of the
quality of bank services. The significant areas of lapses in marketing of
financial services which was regarded as problems according to Aliliele (1998)
include the following:-
low level of confidence by some clients as a result of high rate of bank's
poor skill and attitude of staff.
fact banks seem to perceive themselves as the "financial messiah" of
the customer and see themselves to be master instead of being servants. Because
of this "self perception" the internal policies of the bank are made
to override the customer's interest.
to disparity in interest rate as a result of deregulation competition between
the banks is more apparent than real. This is likely to have adverse effect in
the banking system. The limited knowledge of Investment Banking and Trust
Company (IBle) activities, services and other perceived product completing.
trauma of the early 1990's bank failures experienced by customers has not left
their. According to Azara (1989) "most banks despite their high level
profile has not successfully been able to custom the spill - over effect of
1990's mass bank failures, experienced by some of its customers. As a result,
some of them still have some doubt about the bank's capabilities to meet her
research is therefore, to ascertain the extent to which the research will exist
and find out solution to them. In addition, this research will recommend
possible courses of action to alleviate inefficiency in marketing of financial
services in Nigeria.
1.3 OBJECTIVE OF THE STUDY
objectives of study are:-
Access the various marketing strategies used
to market financial service in the banking industry.
Evaluate the effectiveness of marketing
strategies used by IBTC to distinguish itself in the market and these achieve
success as measured by profitability.
To find out if there has been as increase in
customer orientation and satisfaction as a result of the market concept
application in Investment Banking and Trust Company.
To ascertain if the infrastructural
limitation discourage customers or create in efficiency in service orientation
marketing on the part of the bank.
To ascertain if the perception of banking
staff as the "financial messiah" affect the customer satisfaction or
improve banking services.
1.4 SIGNIFICANCE OF THE STUDY
whole process of marketing financial service, reviewing the past to enable
proper projection made for the future. This study is therefore important as the
objective and growth of any business organization.
study of this nature should help in providing knowledge to guide managers on
the use of marketing as a tool for survival in a competitive environment. The
study also helps to illuminate happenings within the banking sector with a view
to provide required knowledge for scholars which could help to improve
management of banks which contribute to academic excellence and
also finds out the ways and methods of applying the marketing concept so as to
improve the performance of our banks.
it try to sensitize researchers, investigators, academicians, practitioners and
professionals on the need for researchers work and for further studies and also
to motivate other interested researchers in this subject Hereby giving item
impetus to venture into a fresh field of study.
1.5 RESEARCH QUESTION
research question are specific questions addressing dimensions of the statement
of problem i.e. broad question the relevant research question are as follows:-
Was it because of poor skill and attitude of
staff toward work?
Why do we have poor quality of financial
service in banks?
Was it because of interest rate as a result
Is it because banks cannot be able to meet
up with there customers demand.
What is the cause of customer's delay during
the processing of simple bank transaction?
to the above question will help in clarifying and answering the board questions
rose under the statement of research problem.
1.6 RESEARCH HYPOTHESIS:
is a tentative statement of relationship that exists between identified
variables. The research hypotheses developed for this study are:-
Ho: Marketing expenditure has no significant effect on bank's Gross
H1: Marketing expenditure has significant effect
on bank's Gross Earnings;
Ho: There is no significant relationship between marketing expenditure
and profitability level in banks.
H1: There IS significant
relationship between marketing expenditure and profitability level in banks.
marketing employed for this study derives from the hypothesis to be tested with
focus on the statement of this problem, the methodology will be used to validate
or invalidate the stated problems, find answers to the research questions and
test the stated hypothesis.
method of data collection will be employed for this study.
regression equation is given as:
Y = bo
+ b1 X1 + b2X2 + µ
Y = Dependent Variable
µ = Gror
1.8 LIMITATION OF SCOPE OF STUDY
order to achieve the objective of the study, this project is designed to focus
on the "effectiveness of marketing strategies on Banks performance"
with reference to Investment Banking and Trust Company Limited (IBTC) as a case
study of service oriented business enterprise. The choice of I BTC has been
determined by two factors:
IBTC is one of the new generation banks that emerge as a result of the
liberalization of the licensing procedure of banks.
the bank has emerged within period of one decade as one of the most successful
bank in Nigeria.
Examination of the marketing activities of IBTC to create a niche for itself
will be carried out and evaluate to determine whether marketing of it services
has any effect on the success of the bank. Success here is measured by
profitability and grass earnings.
banking is over 100 years in Nigeria, this study only covers a period of 10
years (1999 - 2007), being the period showing banking operation of IBTC from
inception to 1998. The findings of the study are therefore limited to IBTC.
type of research need adequate fund, lack of finance militated against the
researcher shutting within Lagos to collect the needed data for this research
one of the limitation is the short period which to complete this project. There
is time constraint and limited period for the academic calendar were limited
1.9 ORGANIZATION OF
research is divided into five chapters.
One: Contain the introduction and background of the study,
which will show the under view and general description of the study.
Two: A review of all related literature within the reach of the
researcher will be made.
Three: how the method specification and sources of data.
Four: Shows the analysis and interpretation of data Obtained
from different sources.
Five: Contain the summary, recommendation and conclusion to
1.10 DEFINITION OF TERMS
to Kotler Philip (1990), marketing is "human activity directed at
satisfying needs and wants through exchange process". While Nwankwo
G.O.(1991) defined marketing as "a discipline analysis of the needs,
wants, perception and preferences of target and intermediary markets which
forms the basic for effective product design, pricing, communications and
G.O defined MARKETING OF BANKING SERVICE as the creation and delivery of
customer satisfying services at a profit to the bank.
Philip (1990) defined a PRODUCT as
something that is viewed as capable of satisfying a need or want. A product can
be an object, service, activity, place, organization or idea.
Philip (1990) also defined a MARKET as
place or the set of all actual and potential buyer of a product or service.
STRATEGY is a consistent, appropriate and feasible set of
principle through which a particular company hopes to achieve its long run
consumer and profit objectives in a particular competitive environment (Kotler
the cornerstone of effective marketing for both products and services. It could
be seen as the set of controllable variables and their levels that the firm
uses to influence the target market.
popularized four factors named 4P'S I.e. Product, Place, Promotion and Price.
something that is viewed as capable of satisfying a need or want e.g. term
deposit export finance.
seen as logistics functions involved in making the services available e.g.
location of branches, cash centers, etc.
seen as the price charged and term associated with sales e.g. interest rate,
essential element in both the production and delivery of banking services.
People are increasingly becoming part of the differentiation by which banks
seeks to create added value and gain competitive advantage.