THE IMPACT OF ADVERTISING ON MARKETING PERFORMANCE OF BANKS (A STUDY OF ACCESS BANK NIG. PLC.)

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ABSTRACT

This study explores the impact of advertising on the marketing performance of banks, with specific reference to Access Bank Nig. Plc. The main objective is to examine how advertising influences the profitability, market share, and sales volume of the bank.

Using survey methodology, data was collected from a population consisting of staff and management of Access Bank Nig. Plc., totaling 152 individuals. A sample size of 110 was determined using Taro Yamane’s formula.

Data analysis was conducted through simple regression analysis to assess the relationships between advertising and marketing performance metrics. The findings indicate positive perceptions and attitudes among customers towards Access Bank's products, with advertising recognized as a crucial promotional tool. Various advertising media such as television, newspapers, and posters/billboards were utilized by the bank, contributing to its marketing efforts.

Regression analysis revealed a statistically significant positive impact of advertising on the marketing performance of Access Bank Nig. Plc. This underscores the importance of sustained advertising efforts in building corporate identity, creating awareness, and enhancing marketing performance.

In conclusion, advertising plays a pivotal role in shaping the marketing performance of banks by implanting corporate images and increasing product awareness. Access Bank Nig. Plc. should maintain its current advertising strategies while considering expansion into additional media channels such as radio and the internet. Regular evaluation and research are recommended to ensure the effectiveness of advertising strategies, targeting both current and potential customers, especially the younger demographic.

These findings offer valuable insights for Access Bank Nig. Plc. and other commercial banks, emphasizing the significance of strategic advertising in achieving marketing objectives and fostering customer engagement. By implementing the recommended strategies, banks can strengthen their advertising efforts, enhance brand perception, and ultimately improve marketing performance in a competitive banking landscape.



 

 

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1      Background of the Study

1.2      Statement of the Problem

1.3      Objectives of the Study

1.4      Research Questions

1.5      Research Hypotheses

1.6      Significance of the Study

1.7      Scope of the Study

1.8      Limitation of the Study

1.9      Definition of Terms

 

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1      Meaning and History of Advertising

2.2      Features of Advertising

2.3      Objectives of Advertising

2.4      Importance of Advertising

2.5      Types of Advertising

2.6      Active People in Advertising

2.7      Classification of Advertising

2.8      Elements of Advertising Communication

2.9      Role of Advertising in Marketing Mix

2.10    Role of Advertising in Society

2.11    Determinants of Advertising Media

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1      Research Design

3.2      Area of the Study

3.3      Population of the Study

3.5      Methods of Data Collection

3.6      Data Analysis Technique

3.7      Model Specification

 

CHAPTER FOUR

PRESENTATION AND INTERPRETATION OF RESULTS

4.1      Socio – Demographic Characteristics of the Respondents

4.2      Responses to the Items on the Questionnaire

4.3      Presentations of Empirical Results

 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1      Summary of Major Findings

5.2      Conclusion

5.3      Recommendations

REFERENCES

APPENDIX: QUESTIONNAIRE

 

 

 

 

 

CHAPTER ONE

INTRODUCTION


1.1     Background of the Study

Advertising is as old as civilization and has been used as the means of communication to buy and sell the goods and services to the society. Advertising is an important tool of promotion that can create wonders with beautiful words to sell products, services and also ideas Frank Presbrey (2011).

Advertising is a powerful communication force and vital marketing tool helping to sell goods, services, images, and ideas through channel of information and persuasion. Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent. Advertising has acquired great importance in the modern world where tough competition in the market and fast changes in technology, to find fashion and taste in the customers. The message which is presented or disseminated is called advertisement.

American Marketing Association (AMA) has defined advertising as “any paid form of non-personal presentation of ideas, goods and services by an indentified sponsor”. The AMA points out that advertising is a tool of marketing along with the product and its packaging, price, distribution and personnel selling.

In the present day, marketing activities hardly take place without advertising and it brings response by providing the vital information to potential customers by trying to modify their desires and supplying reasons they should prefer that particular firms product or service.

According to William J. Stanton, "Advertising consists of all the activities involves in presenting to a group, a non-personal, oral or visual, openly sponsored message regarding disseminated through one or more media and is paid for by an identified sponsor." Communication between firm and it target customers is known as advertising.

With the aids of advertising, a firm’s customers find and buy necessary product or service without much waste of time and which makes to perform very well financial and otherwise. This speed up the sales performance increases the efficiency of labour in distributing and diminished the cost of selling.

Advertising is the most visible element of the communication mix because it makes use of the mass media such as newspaper, television, radio, magazine, bus hoardings and billboards Kotler and Adeleke (2002). Mass consumption and geographically dispersed markets make advertising particularly appropriate for products that rely on sending the promotional messages to the public.


1.2     Statement of the Problem

Banks, companies or firms set a specific targeted audience which they have to achieve in order to improve in marketing performance. In this case, advertising plays a vital role in the area of firms’ performance by educating and informing the general public about the improvement of goods and services that have been taken place. Such services are rendering in order to achieve the targeted audience. Marketing problems like tough competition, inefficient and ineffective marketing communication, lack of market research, have far researching negative effects on banking sector and if such problems are neglected, they can cause a great threat to the area of advertising as an aspect of marketing communication. Mejeha, Adindu(2014), citing Giles (1997).

Advertising as a business promotional tool has been badly neglected in Nigeria banking industries as most managers in the banking industries belief that their products or services can survive without advertising. In most cases, few banking industries that advertise their products or services do not see reasons to study how the target audience perceives their products and the media adopted in disseminating the information.

Some firms apply improper advertising strategies which stop them from getting new customers. While some neglect advertising agencies which handle advertisement properly. Moreover, today some banking industries their advertisements are not motivating, encouraging and attracting customers.


1.3     Objectives of the Study

The main objective of this study is to examine the impact of advertising on marketing performance of banks in Abia State with reference of Access Bank Nig. Plc. The specific objectives are:

1.    To ascertain the impact of Advertising on profitability of the bank.

2.    To determine the impact of Advertising on the market share of the bank.

3.    To empirically investigate the impact of Advertising on sales volume of the bank.

 

1.4     Research Questions

These are well structured questions designed to guide the researcher in data collection and whose answers provide solutions to the problems under investigation Moses, (2014). The following are the research questions that will be use as the guide to ascertain the objectives. These questions are:

1.    What are the impacts of Advertising on profitability of the study bank?

2.    What are the impacts of Advertising on the market share of the study bank?

3.     To what extent does advertising affect sales volume of the bank?


1.5     Research Hypotheses

The following are the hypotheses that are of interest in this research project.

Ho1: Advertising has no significant impact on profitability of the bank.

Ho2: Advertising has no significant impact on market share of the bank.

Ho3: Advertising has no significant impact on the sales volume of the bank.

 

1.6     Significance of the Study

As the firms make efforts to enhance sales volume, they must adopt effective and efficient advertising strategy as the veritable tool to enhance customers’ performance which leads to greater sales volume. This study will show the benefits firms can gain when adopting effective advertising strategy. The tangible result is expected if effective advertising strategy is employed. It will outline some unique features of advertising, its forms, importance and roles to the firms. This study will help the firms to know the decision to make in advertising and mention the group of people that are actively involved in advertising. This study will be helpful to both business firms and academic researchers.

However, firms will appreciate this study; this is because it shall be a guide to them in selecting good advertising techniques that will be helpful to them and people’s perceptions and attitudes about the products. For the academic researchers, this study will also be a greater benefit to researchers who which to carry out further researches about this study.


1.7     Scope of the Study

This research study covers the impact of advertising on marketing performance of banks in Abia State “using Access Bank as a case study”. The bank used in this study is known to have the best advertising technique that attracts and informs customers about firms’ services. The services this bank renders are saving of money, giving of loans, keeping of valuable items and insurance service which are of greater benefits to the public and private sectors.


1.8     Limitation of the Study

1.    Financial: This was a barrier encountered during this research study. In this case, there was little money for the researcher to cover all the requirements of this study.

2.    Time factor: The time allowed for the completion of this study clashed with academic activities.

3.    Bad attitude of respondents: Some respondents find it difficult to disclose their relationship with the bank and level of performance during this study.


1.9     Definition of Terms

Marketing research: The systematic design, collection analysis and reporting of data relevant to a specific marketing situation facing an organization Kotler and Armstrong (2011).

Services: These are products of intangible nature which profit and non-profit establishments offer to satisfy human needs and wants Raymond,(2013).

Impact: the powerful effect that something has on another (Oxford Advanced Learners Dictionary).

E-finance (electronic finance): This involves discharging financial service transactions electronically or through the computer driven technology Raymond (2013).

Advertising: This is regarded as any paid form of non-personal presentation of goods, services or ideas by an identified sponsSor Kotler and Armstrong (2011).

Bank: A place where money is kept and transaction of other businesses takes place.

Channel: Any medium through a message can be sent to a receiver including oral communication, print media, television and internet (Business Dictionary).

Service quality management: Delivery of consistent and high quality service more efficiently than the competitors Raymond Obasi (2013).

 

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