CHAPTER ONE
1.0 INTRODUCTION
Marketing came into the commercial banks in the
later 1950’s in the form of advertising and promoting concepts, not in the form
of marketing concept. With the upsurge in competition many financial
institution devised to adopt marketing tools to get their share of the market.
Budget were established for advertising and sales promotion, managed to attract
many new customers. Their competitors were forced into adopting the same
measure by writing professional advertising agencies and promotion experts.
Marketing evolved as a part of the total
manufacturing organization its rapid evolution was caused by five general
issues that are found in commercial banks. These are sales decline, slow
growth, changing buying pattern, interesting, competition and increasing
expenditure.
Before this period Banks hardly ever thoughts of
marketing research on professional bases until they were forced into the system
by competition. Their services were shared traditional usage and custom. The
commercial banks know perfectly well that most of their customers would be glad
of a full banking service.
However marketing concepts became one approach
which seeks at improving the customers and the organizations relationship
though. Through providing the right type of product that will satisfy the
customers need and earn a profit to the firm. The concept is the management
orientation they key task of the organization is to determine the needs and
wants of the target customers and to adopt the right organization attitude
towards delivery the desirable customers satisfactions more efficiently and
effectively than its competitors. The
organization should be customers oriented, customers orientation as a basic
philosophy that forces the business organization to highlight its actions with
the mandates of the market. The management has faith that it will be properly rewarded by the
customers.
Union Bank Plc has a responsibility to serve the
financial needs of the its customers, the greater the varieties of services and
considering the different categories of customers, the better, the for it’s
fulfilling its objectives.
The marketing concept acknowledge that a business
geared to serve the needs and requirement of consumer will achieve a better
result over a longer period of time than the other components whose executives
are not be motivated towards the satisfaction of consumers. The marketing
concept believes that consumer is king.
This pervasive attitude has three major elements
such as undertaking of consumer needs or wants, system approach of marketing
variables and other elements in an organization; and objectives to the
organization.
Adoption of marketing concept therefore became
necessary in Union Bank Plc as they are service oriented, operating in a
competitive industries and profit motivated Union Bank Plc need to offer
service that will meet their customers wants but before this is made possible,
the bank have to embark on a research of
the type of services the customers required Union Bank recently realize the
important of marketing concept and developed it for most of their services;
distribution and promotion the service of marketing service depends upon
knowing the buyer well and servicing his/her needs. This means treating each
client as an individual product segment it important that a firm should decide
as an important matter of policy what type of customers is required.
To this end, all policies, marketing manufacturing and personnel should reflect this overall
policy of image. The basic public relations policy can be put forward to ensure
that the public are influence to react to the firm in the desired manner. The
customers can be influenced by good customers relations to regard the bank as:
i.
Public spirited with a civil
responsibility.
ii.
A good bank to work for or invest in.
iii.
A bank whose product and services can
be purchased with confidence and reliability.
1.1 HISTORICAL
BACKGROUND OF THE UNION BANK NIG PLC
The
financial system of the society is the framework within which capital
transaction takes place. The saving of some members of the society are made
avaibale to other member of the society for productive investment. This process
is made possible by the intermediation of financial institutions like the
commercial banks.
The first commercial Bank, the Africa
banking corporation open in Lagos
in 1892, the bank experience some initial difficulties and eventually decided
to transfer its interest to “Elder Domister and Company in 1893. this led to
the formation of a New Bank known as the British Bank of West Africa (BBWA) in
1893.
The British bank of west Africa and the Barclays bank between 1894 and 1933.
In 1972 indignations decrees was promulgated, where the federal government of
Nigeria acquired 51.67% of the Barclays bank share capital while the bank share
capital while the bank was left with 40% and the remaining 8.33% with the
Nigeria public.
In 1979 the bank sold 20% of its 40% shareholding
to the Nigeria
public again, thus, reducing its share to 20% in the same year 1979. Then the
bank name was changed to Union Bank of Nigeria Ltd.
The equity structure of Union Bank make it only
former expatriate bank currently with the larger proportion of its store 80% owned by Nigeria and Nigeria
organization.
1.2 STATEMENT
OF THE PROBLEM
However some problem that affect Union Bank in
Nigeria Birnin Kebbi Branch emerged as a result of inadequate application of
marketing concept, such as:
i.
inability of the branch to mobilize saving for investment purpose and harness
idle funds in the state.
ii. Insufficient
volume and varieties of financial instrument to facilitate intermediation for
investment process.
iii. Inability
to incorporate proper use of marketing concept due to organizational policy
framework, which has some restrictive clauses on publicity.
iv. Insufficient
number of workers to deal with member of the public who will like to
participate in the banking activities.
v. Inadequate
banking environment which affect their product and service in the state.
1.3 OBJECTIVES
OF THE STUDY
Among
the objectives of the study are as follows:
i.
To highlight the important roles
played by marketing concept in the performance of commercial banks to the
economic development of the country.
ii.
To discuss and examine the operations
and the likely affect of marketing concept in the commercial banks.
iii.
To help in academic contribution
towards reaching possible solution on how to develop and improve marketing
concept in the commercial banks.
iv.
To examine certain instances when
investment may be insensitive to the level of marketing concept.
v.
To appraise the application of
marketing concept in the commercial banks.
vi.
To assess the impact of marketing
concept in commercial banks.
vii.
To ascertain whether marketing concept
has any effect in the commercial banks.
1.4 SIGNIFICANCE
OF THE STUDY
The research work is undertaken to advance
scientific knowledge of the study matter of investigation an evaluation of
marketing concept in the commercial banks.
Marketing concept is an economic phenomenon, in
which the consumer is seen as supreme and his/her wants or needs from the
starting points and base for production of goods and services.
To survive competitive activities, banks must be
able to produce and deliver wants or needs satisfying goods and services,
packed of quality and value.
However, customer of various categories of the
banks enjoyed such service from Union
Bank Nig Plc Birnin Kebbi branch. Customers like the small and medium scale
enterprises farmers of different categories, workers of different facets in the
state.
It is significance to note that, success only
depends on meeting the needs or wants of
the customers via value creating exchange. This is done by Union Bank of
Nigeria Plc Birnin Kebbi Brach through complete adopting and practice of
marketing concept where customers are treated as king, the only boss of the
organization whose wishes aspiration preference must be met and which should
guide organization thinking and operation.
The prospective users of the research when it is
complete are the workers, students and in the banking sector. Who may be
interested in knowing the evaluation of marketing concept.
1.5 RESEARCH
HYPOTHESIS
Ho There
is no significance relationship between the commercial banks and marketing
concept.
Hi There
is significance relationship between commercial banks and the marketing
concept.
Ho2 There is no significance relationship in information preference
between the commercial banks and the marketing concept.
H12 There is significance relationship in information preference
between the Commercial banks and the marketing concept.
Ho3 There is no significance relationship in information format used
by the commercial banks and marketing concept.
H13 There is significance relationship in information used by the
commercial banks and marketing concept.
1.6 SCOPE
AND LIMITATION OF THE STUDY
The scope pf this research work is limited to the
union bank of Nigeria Plc Birnin Kebbi branch, and the extent of this work is
also limited to an evaluation of marketing concept in the commercial banks.
There are numbers of limiting factors since the
Union Bank senior staff interviews were not willing to disclose useful
information to the researcher. A lot of problems went wrong to restrict the
researcher writer from conducting a good and comprehensive research.
Among the problems are:
i.
Difficulties in obtaining certain
documents and as most of the documents are considered to be very important to
the organization, thus preventing the researcher from getting them.
ii.
A work of this nature requires much
capital for financing the materials and sourcing information needed. But
collation prolonged leaving little time for presentation and analysis of data
since the researcher was given schedule time of completion.
iii.
Also the time allocated to this
research work is inadequate and insufficient for the researcher to get all the
required information for the topic.
iv.
Another limitation is the
non-availability of relevant and vital documents in the school library, which
could have be useful in making an extensive research work and the library did
not keep any special manuals for the topic which the researcher could make
reference to.
v.
This research work was undertaking
when the writer is fully engage in the class work. This has greatly constrained
the research work because the researcher has to pay attention to normal class
activities.
1.7 DEFINITION
OF TERMS
Advertising:
To percent information about a product arouse interest, build desire and get
customer in a favourable frame of mind to buy the product.
Asset Portfolio: An asset in the firm property weighted
to represent their proportionate market value.
Business Organization:
Collective endeavour consisting of contractual relationship among the various
parties involved.
Banker:
A person or company carrying on the business of receiving monies and collecting
draft from customers subject to the obligation of honouring cheques drawn upon
them from time to time by customers to the extent of the amount available in
their current account.
Consolidation: The combination of two or more firm
into an entirely new firm the old firm ceased to exist.
Corporation:
A business formed legally from its owners.
Distribution:
The transfer of goods from producer to consumers.
Financial: Intermediaries financial institution
that accept money from savers and use
those funds to make loans and other financial investment in their own
name.
Marketing:
Human activities that is directed at satisfying needs and wants through
exchange process.
Marketing Concept:
Undertaking of consumers need or want (consumer oriented).
Portfolio: A combination of two or more
securities or assets.
Portfolio Management: The process of combining securities in
a portfolio tailored to the investors preference and needs monitoring that
portfolio and evaluating its performance.
Sales promotion:
The provision of special buying incentives for a limited period of time.