The Nigeria banking sector has undergone tremendous competition
since the introduction of the Structural Adjustment Programme (SAP) on 1st
of July, 1986, which has led to stiff competition in the industry.
Marketing strategies is a written plan, usually comprehensive
describing all activities involved in a particular marketing objective and
their relationship to one another in both time and magnitude which include all
the necessary activities which an organization can use to achieve its long term
objectives which are growth and profitability.
This research study focus on the impact of marketing
strategy in Nigeria banking industry using First Bank of Nigeria as a case
The study focus on the use of primary source of data by
using administering of questionnaire both to the employee of the bank and also
to the customer of the bank and observation method was also used in obtaining
The research used multiple bar charts to give a pictorial
diagram of the data analysis for the demographic data while T-test was employed
to test the various hypotheses formulated. The hypotheses are five in number.
At the end of the study, it was revealed that marketing
strategy does not only have impact on marketing of physical product alone but
also on marketing of service in order to achieve the overall organization
objective of profitability and growth.
TABLE OF CONTENTS
OF CONTENTS VIII
1.1 Background Information 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Significance of the Study 5
1.5 Scope of the Study 5
1.6 Plan of the Study 6
1.7 Definition of Key terms 6
Meaning of Marketing 10
of Markets 20
Life Cycle 25
2.8 Price 28
Banking Services 30
of Customer Services in First Bank Plc 31
Bank Products 32
Strategies in Financial Institution 47
and the Impact of Marketing Strategy 50
Historical Background of First Bank of Nigeria Plc 57
Research Design 58
Data Specification 59
Research Hypotheses 60
Sampling Frame 62
Method of Data Analysis 63
PRESENTATION AND ANALYSIS
of Research in First Bank Plc, Ilorin 65
Analysis for Staff 67
4.4 Test of
Analysis of Customers 80
4.6 Test of
of Research Findings 92
CONCLUSIONS AND RECOMMENDATIONS
1.1 BACKGROUND INFORMATION
is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services, organization and event to create and
maintain relationships that will satisfy individual and organizational
objectives. It is fundamental to business growth. It basically includes getting
goods and services to the final consumer satisfactorily.
Nigeria banking sector has changed tremendously since the introduction of the
Structural Adjustment Programme (SAP) on 1st July, 1986. Prior to
this period, most Nigerian banks engaged in an effort aimed at encouraging
certain classes of customer resulting in rejection of deposits or accepting
them on dictated terms due to the fact that there were few banks to render
services to a considerably large numbers of customers which led to a decline
the period between the SAP and now has witness various amendments of banking
laws and policies ranging from BOFID 1991, to universal banking policy of 2001,
various increased in the capital base e.t.c. these changes have therefore
necessitated the need to find a way of promoting banking services, which is
possible with the impact of marketing strategies in the banking sector.
is surprising that banks have not been able to come up with a competitive and
comprehensive approach for marketing of banking services and product. A close
look at the recently concluded re-capitalization process showed evidently the
above assertion. This process witnessed what is called “Aggressive Marketing”
which is not a replete of what banking stands for in terms of integrity and
utmost good faith.
trend of the introduction of marketing department (marketing strategies) in
banks is a welcome development and has made arm-chair banking part of the
history of the banking sector. Bank marketing was thus defined as “that part of
banking services profitability to selected customers”. The need for marketing
in banks evolved from the intense competition from not only rival banks but
also non-financial institutions. Staffs are placed on target to be achieved and
are compensated or promoted using their ability to or not to meet their
customers should be at the forefront in terms of the banks planning and
corporate thinking. An organization cannot be talking of profit without
considering the customers patronage that yields that profit. The strategic or
corporate planner therefore has to take cognizance that the survival of a
business rest solely on the customer. It can be seen that the relevance or
importance of marketing to the banking industry cannot be over estimated.
The banks needs to make adequate
returns because they are accountable to their shareholders who have invested
with the purpose of receiving good returns. Also, the substantial cost incurred
in the day-to-day operation must be sufficiently covered from the profit
earned. For any bank therefore to meet these needs, the bank needs to make
adequate returns. Meeting these needs is termed maximizing the shareholder’s
OF THE PROBLEM
Despite the importance of marketing
strategy in the banking industry, there is a problem in their financial services
and activities with particular reference to First Bank of Nigeria Plc.
During the era of arm-chair banking,
the banks were very few and patronized by the indigenous people with no option,
but following the increment of indigenous ones between 1945 – 1960 and the
recent re-capitalization of banks’ capital base to N25billion has necessitated
a dire need for banks to take marketing of their products very seriously. It is
obvious that competition amongst banks would increase and as such there is need
for real marketing strategies to be applied to further professionalize the
It is believed that banks with more
funds would be well positioned to become one of the leaders in the dynamic and
competitive sector and marketing plays a pivotal role in deposit attraction and
sourcing of funds.
OF THE STUDY
The general objectives of the study
is to determine the impact of marketing strategies in Nigerian banking industry
and how they are used to attain stated objectives. This study will evaluate
impact of marketing strategies in relation to external factors operation and
proffer solutions based on the data collected and the scope of the researcher.
Other specific objectives of this
To examine an existing marketing principles and
To examine product marketing strategies of banks in relation
to external factors.
To evaluate how these strategies has been in achieving
To examine the associated constraints in the
incrementation of these marketing strategies.
To make necessary recommendations for an efficient
OF THE STUDY
All organizations are established to
accomplish their set objectives; therefore, banking industry is no exception.
For some of these set objectives to be attained, they must be converted into
marketing objectives which calls for the development of a clear cut marketing
strategy and well thought supporting programmes for their attainment.
The research work that has been done
in the past on the marketing strategy to bring out and justify the importance
of the study is not much.
However, it is important to note that
with the present stiff competition among the banks, the researcher saw the need
for the present day banks to adapt and be involved in marketing strategy.
1.5 SCOPE OF
research work was restricted to commercial bank with reference to First Bank of
Nigeria Plc as a case study, and only First Bank of Nigeria Plc, Ilorin branch
was used for the purpose of the study, since the bank is making use of the
policy that affects all the branches operation.
PLAN OF THE
research work comprised of five chapters and all chapters were presented in a
logical and sequential mode as follows:
one contains background information, statement of the research problem,
objectives of the study, significance of the study, scope of the study, plan of
the study and definition of terms (keynotes).
Chapter two contains the review of
some related literatures on marketing strategies written by some authors and
some other researchers on marketing strategy, scope and components of marketing
strategies. It also studies the marketing strategies in banking industry,
marketing research and the summary of the chapter.
Chapter three deals with research
methodology which is made of history of First Bank of Nigeria Plc, Ilorin
branch, sampling size, source of data collection and method of data analysis,
Chapter four and five dwell on
analysis and presentation of data and summary, conclusion and recommendation
OF KEY TERMS
MARKETING: This was defined by (Peter Drucker, 1973) as human
activity directed at satisfying need and wants through exchange processes.
However, (Wroe Anderson, 1976)
equally defined marketing as individual and organizational activities aimed at
facilitating and expediting exchanges within a set of dynamic environmental
MARKETING CONCEPT: This is a philosophy of business
that states the customers’ want-satisfaction is the economic and society
justification for a firm existence. It stresses that the emphasizes on all
business activities should be focused or geared towards the satisfaction of the
MARKETING ENVIRONMENT: This refers to all
factors and forces both internal and external that influences the marketing
decision making. The internal forces are controllable which includes the
organizational structure, the 4M’s i.e. Man, Money, Machine and Materials.
However, the external forces which
are uncontrollable falls outside the firm, constitute the greatest
opportunities and threats to the firm. These include economic condition,
socio-cultural influences, competitors, customers, political and legal
environment, international influences, technological factors e.t.c.
PRODUCT: A product can be an idea, a service, a good or any
combination of these three. It could also be defined as anything that can be
offered to the market for attention, acquisition, use or consumption that will
satisfy a need. This implies that product include physical, objects, services,
persons, places, organization and ideas.
MARKETING STRATEGIES: This is a
written plan, usually comprehensive describing all activities involved in
achieving a particular marketing objective and their relationship to one another
in both time and magnitude, it will include short and long term sales forecast,
production and profit target, pricing policy, promotional and selling strategy,
staffing requirement as well as the selected marketing mix and expense budget.