Marketing 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.
The 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 profit volume.
However, 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
It 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.
The 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
However, 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
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.
OF THE STUDY
This 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.
OF THE STUDY
This research work comprised of five chapters and all chapters were
presented in a logical and sequential mode as follows:
Chapter 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 customers.
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.
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.