Deposit mobilization and profitability are the twins of management
which make the subject matter of this research work to cut across
virtually all management functions and their application in the banking
industry. The research paper also highlighted the benefit of efficient
marketing activities on deposit mobilization in the banking industry.
The research paper analyzed in details the problems that are facing our
banking sectors and not care or worry attitudes of our banking executive
towards the effective’s use of the problem. However, deposit
mobilization involves the various ways through which fund can be
mobilized from the publics. In essence, marketing activities on
profitability is the activities of identifying current market situation,
analyzing current market opportunity threat and issues set objectives,
devices a marketing strategy, set of implementation policy, the
operating budgeted statement in achieving set tasks and finally a
technique for its successful operation. The research works also examine
how practicable the marketing activities on deposit mobilization and
profitability in our banking sectors carried out a detailed research.
And the Banking sectors needs this instrument of marketing activities in
analyzing their immediate environment so as to give some experience of a
particular problem of any pertinent development in the environment.
1.1 BACKGROUND OF THE STUDY
With the current level of competition in the banking industry, the
area which make the banking comfortable is definitely over the threat
posed by the announcement of a new capitalization requirements of #25
billion for all banks by the Central Bank of Nigeria in July, (2004)
introduced a fundamental challenge the altered the operating dynamics of
the banking industry. As part of the wider agenda by the monetary
authorities to engender the consolidation of the banking industry. This
project work is intended to examine the impact of marketing activities
on Deposit Mobilization and Profitability in Nigeria Banks.
Marketing itself is defined as the performance of business activities
that direct the flow of goods and services from producer to consumer or
user. This definition was given by the “American Marketing
Association”. According to Steven Hillested and Eric (1995) both defined
marketing as the “process of understanding customers” wants and needs
and designing appropriate programmes and services to meet those wants
and needs in a timely, cost effective competitive fashion.
The financial repressions theory developed by Kinnon and Shaw (1973)
indicated that low interest rate lead to capital flight theory reducing
the availability of lend able funds for investment and growth in the
domestic economy. On the other hand, an increase of real interest rate
will increase the cash inflow and deposit base of bank for investment
and growth in the domestic economy.
Furthermore, the removal of controls on interest rate and credit
ceiling can be expected to greatly enhance the efficiency of financial
intimidation by channeling credit to high yielding investment
opportunities. It is also expected “That by restructuring the banking
sector and training banking officials and staff, having their own,
marketing and also a competent bank marketing manager, capacity of the
banking sector will be improved with the increase banking services
available to the public.
It is argued that competition will not be possible if the banking
sector is dominated by government owned banking institution and that
risk of inefficiency is associated with direct credit controls with
pre-reform government intervention.
The marketing approach providing any type of product or services is
to identify the need of a particular customer and offer a particular
product or services that will satisfy the need. The provider of the
product or services should be able to make a profit while satisfying a
customer need at the same time.
Finally, the opening of financial markets to foreign competition will
provide an incentive for banking institution to adopt efficient means
of delivering banking services. A close look at the banking industry
will show that some of the banks have fully responded to the development
within their business environment. They should not remain static to the
old philosophy in a dynamic environment but cherishing a system of
looking beyond present period and not leaving every thing to change.
1.2 JUSTIFICATION OF THE STUDY
It is helped that this research work will contribute in no small
measure to both the academic endeavour and practices of related
profession especially in the banking sector. Among the areas which the
research work contributes are:
Setting of the organizational goals and objective
Implementation of marketing activities
Actions towards increasing the profitability of banks.
1.3 STATEMENT OF THE PROBLEM
The non-chalant attitude of our banking industry to make cognizance
of environmental changes have make their executives to pay little or no
attention to the importance of marketing activities on deposit
mobilization of bank and it’s profitability. This is something that has
led to services of problem in our banking industry and which has done an
untold damage to the sectors and economy in general. The problems that
will be identified in this project are as follows:
- Lack of proper marketing objectives.
- Unplanned marketing activities
- Inability to spot adequately market performance and threat in the market.
- Inadequate evaluation of proper marketing activities result.
- Inability to establish organizational goals and objectives.
- It prevents them from identify the failure business characters and the development of marketing strategy.
- Poor implementation of marketing programme toward achievement of organizations goals and objectives.
1.4 OBJECTIVE OF THE STUDY
The objective of this project is to examine the impact of marketing
activities on deposit mobilization and profitability of the Nigeria
banks are case study of intercontinental bank plc and to make
1.5 METHODOLOGY OF THE STUDY AND STATEMENT OF HYPOTHESIS
The research works are going to be tested through the questionnaire.
And the following were therefore propounded for testing.
a. Ho: Marketing activities has not contributed to the ways banks mobilize deposit.
Hi: Marketing activities has contributed to the way banks mobilize deposit.
b. Ho: Marketing activities has not increase the profitability of banks.
Hi: Marketing activities has increase the profitability of banks.
c. Ho: Deposit mobilization has no significance effect on the profitability of banks.
Hi: Deposit mobilization has significance effect on the profitability of banks.
1.6 SCOPE OF THE STUDY
The research study will focus it’s attention on the activities of
marketing in the banking sectors and how their introduction and
implementation can help the performance of the banks in the economic
The deposit mobilization and profitability being the basic objectives
of management in an organization will make the research work to cut
across virtually all the management functions and their application in
the banking industry.
The issue of deposit mobilization and the effect it has on banks profits will be duly covered in this research work.
1.7 LIMITATION OF THE STUDY
In every human activity, there is bound to be some hindrances that
make aims and objective difficult if not possible to achieve some of the
following are the militating factors that could bring untimely to this
- Time return of the questionnaire by the respondent.
- Many of the respondents have tight schedule, hence there was great and difficulties in seeing them.
- A lot of offices were unit of bound to non-staff security reasons.
- Some facts could not be disclosed for security reasons.
The sensitive nature of the topic may make the respondent unwilling to provide the required data.
1.8 LITERATURE REVIEW
2.2 Review of related Literature
2.3 What is Marketing Activities?
2.4 Various ways at which marketing activities is being carried out by bank’s.
2.5 Problem encounter in marketing activities
2.6 The impact of marketing activities on deposit mobilization.
2.7 The impact of marketing activities on bank profitability.
2.8 The effect of deposit mobilization on profitability of banks.
2.9 Controlling marketing activities
2.10 Benefit of deposit mobilization and profitability on banks.