THE IMPACT OF ADVERTISING ON THE MARKETING OF BANKING SERVICES. (A CASE STUDY OF MICRO FINANCE BANK)

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No of Pages: 89

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ABSTRACT

        This research work is on the impact of advertising in the marketing of banking services. This work was carried out in order to determine the impact of advertising in the marketing of banking services using Micro Finance Bank Plc Oko as a case study. As a matter of fact, financial industries are banks and other insurance firms.

        Advertising can be defined as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsors. This look at the various types of advertising that is required for the success of the service in the market.

        In the first chapter, the researcher defined what a micro finance is and its operation in Nigeria. In the same chapter the researcher stated the research problems, the objectives declaring his intentions for carrying out this survey. Continuing the research also explained the significance of the study and eventually stated the research hypothesis, which was also tested and proves that the researcher analyzed data.

        The second chapter has to deserve it traces down explaining how versatile the contribution of the advertising has been in the world economic developments. Following it up comes the literature works of eminent scholars their views were used to back up the personal and arguments.

        The chapter three is headed with the research design and methodology. The sample take for this study revolves around 30 people. The researcher also reflected here the percentages table and chi-square were used too for description of data analysis and hypothesis testing.

        In chapter four were the presentations and analysis of data. The researcher consider its important, to test the four hypothesis at this stage, also solutions to the problem was found. Findings also were made which the firm should consider.

        Chapter five, shows the summary of the research findings, recommendation gearing that advertising help to build up firms good services or ideas.

 

 

TABLE OF CONTENTS

Title page                                                                i

Approval                                                                  ii

Acknowledgement                                                  iii

Table of content                                                      v

Abstract                                                                  xi

 

CHAPTER ONE

INTRODUCTION                                             1

1.1      Background of the study                                3

1.2      Statement of problem                                     5

1.3      Purpose of the study                                       6

1.4      Significance of the study                        7

1.5      Assumption of the study                        8

1.6      Research questions                                        9

1.7      Hypotheses                                                     10

1.8      Definition of terms                                          11

 

CHAPTER TWO

2.0      Literature Review                                           13

2.1      A Brief introduction                                        13

2.2      Review of current literature                           13

2.3      Summary of literature review                                32

 

CHAPTER THREE

METHODOLOGY

3.0   Brief Outline of the chapter                           33

3.1      Design of the study                                         34

3.2      Area of the study                                            34

3.3      Population of the study                                  35

3.4      Sample of the study                                        35

3.5      Instrument for data collection                       36

3.6      Validation of the instrument                          37

3.7      Distribution and retrieval of the instrument    37

3.8      Method of data analysis                                 38

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS         39

4.0   Brief Introduction of the chapter                   39

4.1      Presentation and interpretation of data according to research questions and

hypothesis                                                       40

4.2      Findings                                                          60   

4.3      Discussion of findings                                     61

 

CHAPTER FIVE

5.0   Summary, Conclusion and Recommendation  76

5.1      Summary of findings                                      76

5.2      Conclusion                                                      77

5.3      Recommendations                                          78

5.4      Limitations of the study                                 79

5.5      Suggestion for further research                     79

References                                                      81

Appendix A                                                      83

Appendix B                                                     84

Questionnaire                                                  85







CHAPTER ONE

1.0     INTRODUCTION

ADVERTISING AND BANKING INDUSTRY (MICRO FINANCE BANK)

Banking are economic decision units that are set up for the provision of financial services and products to targeted market. This service tendered to both public and private sector of the economy includes: collection of deposits, clearing of cheques and other exchange, granting of loans and over drafts guarantee of joint financing by two or more banks foreign exchange transaction, fund transfer and insuring drafts services rendered include safe keeping facility and financial advice to customers.  

The operation of micro finance bank initially community bank were perceived to be incorporated for efficient sustainable economy. Micro finance bank help to provide financial assistance and credit to its customers, including formal and informal self – help groups, individuals and association: except public sector deposits from government agencies.

To this end, micro finance bank have to come up with more efficient and effective services for example, full-fledged computerization becomes the order of the day, processing of loans and advances reduction in member of clearing day for clearing instrument.

However, to communicate these services effectively in enhancing profitability the need for advertising in Micro Finance bank becomes inheritable. Advertising which until this time had little or no significance in the banking industry becomes strong information and persuade tool to reach target customers.

 

1.1     BACKGROUND OF THE STUDY

Advertising is one phrase that has been given different definitions by authors. A critical analysis of all the variable definitions shown that they have something in common.

Talking about the importance and relevance of financial services in every one’s life. This includes ordinary life circle events like, birth, marriage and deaths; it also includes the possibility to invest, to increase our wealth.

Micro finance target people who do not have access to the formal financial sector and are under-banked at the moment. This affects not only their economic activities but also improves their health, education and living circumstances. In the end, the overall objectives are to elevate poverty.

The practice of micro finance is not new and has probably been around for as long as currency itself has. Informal credit and savings services probably formed around social services where the members got together to help one another as a community. Savings and credit groups that have operated for Centuries include the “Susus” of Ghana, “Chit fund” in Idia, “Tarda” in Mexico, “Asian” in Indonesia, “Cheetu” in Sri Lanka tontines” in West Africa, and “Pasanaku” in Bolivia

 

1.2     STATEMENT OF THE PROBLEM

Generally speaking, the use of advertising is cost effective for promoting, bank services. Most crises, even executives in services firms see advertising as a massive waste and neglect its need when assessed against results.

 There is also argument that advertiser designed to indulge customer against their wish. It is further argued that successful firms use heavy advertising to create a barrier to entry of smaller firms, to these successful firms gain monopoly of the market. These advertising view and crusade do not see the need for advertising in organization and the economy as a whole. These and some other problem are what the researcher set out to solve.

 

1.3  OBJECTIVE OF THE STUDY

The researcher intends to find out the following:-

-       Whether advertising is important to banking services especially micro finance bank Oko branch, Anambra State.

-       Ways of improving the present use of advertising by micro finance banks.

-       Media selection factors

-       The best of combinational mix appeals.

-       What makes customer to patronize the bank.

 

1.4  SIGNIFICANCE OF THE STUDY

        This research work will be great relevance and benefit to various categories. First, the banking industry, particularly the bank under the study can access the application of advertising to a service organization, like in view of new land on the industry, competition being a top phenomenon, and secondly, customer, which form the bedrock of any business is also taking into account in the research. They too will benefit as reaching them with the right combination of advertising programme action and result message sill stimulate action and result in the desire satisfaction they seek to derive from the industry.

        Thirdly, lectures, students will derived maximum benefit from this research as the member of brokers and literature available looks scanty.  

 

1.5     ASSUMPTION OF THE STUDY

These problems placed limitations on the author, though; they did not permanently render the study success. Thus areas the following assumption regarding the investments:

i.            That the respondents cooperated by giving the required information

ii.          That the responses to the questionnaires were to the best of the respondents knowledge true and accurate.

iii.        That the head of the marketing unit or the bank has adequate knowledge of the banks marketing practices.

iv.         That the responses to the questionnaires in the branches chosen were representatives of the other branches not student.

 

1.6     RESEARCH QUESTION

i.            What is the customers knowledge of the product or service in terms of its features?

ii.          What is the degree of awareness of the product service or advertising campaign we have invested in?

iii.        How acceptable is the advertising to the consumer?

iv.         What is the image of the product or service in terms of whether the advertising has strengthened or weakened its image?

v.           What is recalled and it is essential in providing the customers with the relevant reassurance?

vi.         Which aspects of the communication messages persuade the consumer to buy the product or use the company service?

 

1.7     HYPOTHESIS

Null hypothesis:

Ho: The use of advertising does not enhance the quality of services to your business

Hi: Advertising enhances the quality of services to your business.

Ho: Workers effort is not justified with advertising.

Hi: Advertising justified the effort of workers

Ho: The use of advertising does not reduce cost in financial industry

Hi: The use of advertising reduces cost in financial firms.

Ho: efficiency does not measure the advertising services

Hi: efficiency measures the advertising services.

 

1.8     DEFINITION OF TERMS

IMPACT: According to Longman Advance Learners dictionary of contemporary English defines impact as the effect or influence that an event, situation e.t.c. has on someone or something.

ADVERTISING: Defined as non-personal form of communication, presentation and promotion of ideas, goods and services by an identified sponsor.

BANK: This is an organization that comes out business of banking such as keeping money and lending services.

MICRO FINANCE: Financial institution that receives savings and giving of loans or credit to SME at a small interest rate.

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