THE EFFECT OF MARKETING COMMUNICATION MIX ON CUSTOMER PATRONAGE OF DEPOSIT MONEY BANKS (A STUDY OF ZENITH BANK PLC.)

ABSTRACT

This study investigates the impact of marketing communication mix on customer patronage of deposit money banks, with a focus on Zenith Bank PLC. The primary objective is to determine how various elements of the marketing communication mix influence customer loyalty and patronage. Specifically, the study aims to assess the effects of advertising, personal selling, and sales promotion on customer patronage within the Nigerian banking sector. Employing a survey research method, data was collected from a sample size of 100 respondents drawn from the total population of Umuahia North and Umuahia South Local Government Areas in Abia State, Nigeria.

The findings reveal significant relationships between advertising and customer loyalty, emphasizing the importance of constant persuasion and brand reinforcement in maintaining customer loyalty. Moreover, the study indicates that increased personal selling efforts positively enhance customer patronage, allowing for extensive customer interaction and education. Additionally, sales promotion emerges as a key driver of customer patronage, underscoring the significance of promotional activities in attracting and retaining customers.

In conclusion, effective marketing communication plays a crucial role in influencing customer patronage within the financial sector. To remain competitive in the dynamic business environment, deposit money banks, including Zenith Bank PLC, must continually improve their marketing communication functions. This includes integrating a comprehensive promotional mix tailored to meet communication objectives, implementing effective monitoring policies to measure performance, and incorporating favorable promotional activities to attract and retain customers.

Based on the study's findings, several recommendations are proposed for enhancing marketing communication functions in deposit money banks.

TABLE OF CONTENTS

CHAPTER 1

INTRODUCTION

1.1    Background of the Study                                                                                   

1.2    Statement of the Problem.

1.3    Objectives of the Study

1.4    Research Question

1.5    Research Hypotheses

1.6    Significance of the Study

1.7    Scope of the Study

CHAPTER 2

REVIEW OF RELATED LITERATURE

2.1      Conceptual Framework

2.1.2 Marketing Communication And Customer Patronage

2.1.3   Marketing Communication

2.1.4   Advertising

2.1.5   Sales Promotion

 2.1.6 Personal Selling

2.2.7   Sponsorship

2.3      The Marketing Communication Model

2.3.1   Product

2.3.2   Price

2.4      Theoretical Framework

2.4.1   The Herzberg’s Theory

2.4.2   Theory of Symbolic Interactionism

2.4.3   Psychoanalytic Theory

2.4.4   Hierarchy of Needs Theory

2.5      Empirical Review

2.6      Summary of Literature

CHAPTER 3

RESEARCH METHODOLOGY

3.1    Research Design

3.2    Area of the Study

3.3    Population of the Study

3.4    Sampling Techniques

3.5    Validity of the Research Instrument

3.6    Reliability of Research Instrument

3.7    Model Specification

CHAPTER 4

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1    Data Collection and Collation

4.2    Test of Hypotheses

4.2.1 Hypothesis 1

4.2.2 Hypothesis Two

4.2.3 Hypothesis Three

CHAPTER 5

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1    Summary of Findings

5.2    Conclusion

5.3    Recommendations

5.4.1 Managerial Implication of the Study

5.4.1 Suggestions for Further Studies

Appendix: Questionnaire

References

CHAPTER 1

INTRODUCTION

1.1 Background of the Study                                                                                                           

Marketing communication which is the focus of the study is the information flow between the sellers and potential buyers in the channels of influence, attitudes and behaviours in the firms and in the consumption pattern of households. It has to do with informing, reminding, persuading and educating firms and households (Clow and Donald, 2007).

Kotler and Amstrong, (2008) states that marketing communications are means by which firms attempt to inform, persuade and remind customers directly or indirectly about the brands that they market and this plays pivotal role when banks design their internet banking platforms and formulate marketing communication strategies for internet banking.

Marketing communication  is also seen in another dimension as all strategies, tactics and activities involved in getting the desired marketing message to  intended target markets regardless  of the media use. Most service marketers have access to numerous forms of  communication, referred to collectively as the marketing communication mix. The mix includes advertising, personal selling, publicity and public relations, sales promotion, instructional materials and corporate design. (Lovelock and Wirtz, 2004).

Marketing communication is very important and at the same time challenging in the commercial banks. This is because the intangible natures of banking services play a decisively challenging role in convincing customers as to value of banking. The marketing communication mix element have become important players in the life of  so many businesses. They help in moving                        market offering (goods, services and ideas etc) from manufacturers/ sellers  to end users to build and maintain relationship with customers, prospects and other stakeholders of the company (Harris, 1988). However, marketing strategies stresses on relationship building in addition to producing sales that will force marketers to consider all the elements in the marketing communication mix (Marcommwise, 2006).

A successful marketing communication relies on sound management decision regarding the coordination of the various elements of promotional mix. To this end, a new way of viewing marketing communication emerge in the 1990s, called integrated marketing communication, this perspective seeks to orchestrate the use of all forms of the promotional mix to reach customers at different levels in new and better ways. The holistic marketing approach for services requires external marketing which deals with interaction of  the company’s product, price, distribution channels and promotional activities, as well as with stake holders (Lancaster and Reynolds, 2004).

Fill (2005), opined that marketing communication should be an audience- centered activity. In this since, it is important that messages should  be based on a firm’s understanding of both the needs and the environment of the audience. So to be successful, marketing communications should be grouped into the behaviour and information processing needs and style of the target audience. However, where competition or other impediments to positive consumer actions exist, such as lack of motivation or conviction, a promotional programme is developed and used to communicate with the target group.

1.2 STATEMENT OF THE PROBLEM.

The research need aroused because of the observations in the banking industry. Deposit money bank allocate a lot of resource to marketing communication with the goal of getting high customer patronage. Contemporarily, bank management does not really believe that the huge investment on marketing communication pays off and as ,such, finds it very difficult to adopt an appropriate tool carry out this function.

Despite the resource that most banks in Nigeria almost in marketing communication, customers have not been loyal and moves from one bank to another once their expectations are not met. This can be seen marketing performance of some banks in Nigeria whose patronage are very low.

1.3 OBJECTIVES OF THE STUDY

The overall objective of this study was to ascertain the effect of marketing communication mix on customer patronage of deposit money banks. Specifically, the study was set out to achieve the following sub objectives:

1.     to ascertain the effect of advertising on customer loyalty.

2.     to examine the  extent to which personal selling enhances customer patronage.

3.      determine the relationship between marketing communication and customer patronage in deposit money banks in Nigeria.

1.4 RESEARCH QUESTION

The study observed the following questions:

1.      To what extent has advertising affect customer loyalty in Deposit money banks?

2.     How far has personal selling contributed to customer patronage of Deposit money banks in Nigeria?

3.     To what extent has sales promotion affected customer patronage of Deposit money banks in Nigeria?

1.5 Research Hypotheses

H0₁:    There is no significant relationship between advertising and customer’s loyalty on Deposit            money banks.

H0₂:    There is no significant relationship between personal selling and customer patronage on            Deposit money banks in Nigeria.

Ho₃:    There is no significant relationship between sales promotion and customer patronage.

1.6 Significance of the Study

The study will be of a great significant in terms of those it will benefit. This study will benefit the customers of commercial banks by way of making them have good information about the activities and operation of the bank they operate, the study will also make them to know their importance in the banking industry. Moreover, it will benefit the banks by making them realize the benefit of marketing communication.

Furthermore, the findings of the study will serve as a base for further research for marketing students. To the researchers, the findings of this will enable them to have an insight about marketing communication and customer’s patronage in commercial banks.

1.7 SCOPE OF THE STUDY

The study will focus on the effect of marketing communication on customer’s patronage of commercial banks in Nigeria. The study will be limited to Zenith Bank Nigeria plc. Umuahia, Abia State.

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