ABSTRACT
This project is aimed at exposing some
of the problems in the banking sectors which individual banks tries to
raise more customers by introducing new techniques that differs from
other banks.
The impact of product development and
marketing financial service will be evaluated by both quantitative and
qualitative techniques. The data would be collected from various sources
such as journal, textbooks and Annual Report. Data collected are to be
analyzed using statistical computation such as Chi-square and
percentages. The choice of this model was simple enough in analyzing the
data collected.
The findings shows that there are
problems plaguing the product development in banking sector and it is
further reinforcement of why the adoption of the marketing concept is a
necessity for banks that want to survive and excel In the current
economic dispensation.
Based on the findings above the following recommendations are suggested;
Since the aims and objective of
government regulation of the banking industry is to aid economic growth
and protect the interests of the customers the process which is not in
conflict with the philosophy of marketing concept of putting the
customers' interest first in everything the organization does, then it
follows that banks should put in both tactical and strategic plans to
accommodate not only the immediate government changing policies but also
to give a semblance of long term stability to its services provision.
TABLE OF CONTENTS
Certification
Dedication
Acknowledgment
Abstract
Table of content
CHAPTER ONE
1.1 Introduction
1.2 Statement of problem
1.3 Research Question
1.4 Objective/Purpose of the study
1.5 Statement of hypothesis
1.6 Significance of the study
1.7 Research methodology
1.8 Scope of the study
1.9 Definition of terms
1.10 Organization of the study
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
2.2 The Nigeria financial system
2.2.1 The central Bank of Nigeria
2.2.2 The Banking institutions
2.2.3 Commercial Banks
2.2.4 Development Banks
2.2.5 Specialized Banks
2.3 Government legislation and the Banking industry
2.4 Major characteristics of the Bank Services
2.5 The marketing concept.
2.6 Bank's marketing objectives
2.7 The clement or marketing
2.8 Marketing mix
2.9 Marketing mix and the banking industry
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research design
3.3 Administration of Instrument
3.4 Method of data analysis
3.5 Model specification
3.6 Definition of measurement
3.7 Population of study
3.8 Sample and sampling procedure
3.9 Restatement of hypotheses
CHAPTER FOUR
4.0 Analysis of data
4.1 Procedure used for analyzing data
4.2 Analysis of personal data
4.3 Analysis of research questions
4.4 Testing of the hypotheses
4.5 Summary of findings
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendations
5.1 Summary
5.2 Research findings
5.3 Recommendations
5.4 Suggestion for further studies
5.5 Conclusion
BIBLIOGRAPHY
APPENDIX
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The Nigeria economy has been suffering
series of setback in the recent years as the major macroeconomics
indicators have been giving negative indications over the years. Some of
these indicates have direct bearing. on the financial sector, which has
equally witnessed a series of upheavals that greatly affected it
fortunes. Infact, the last few years have been a trial period for the
financial industry in general and commercial Banks in particular, as the
industry entered a period of turbulence, uncertainty, volatility of
interest (due to regulations and deregulations) and exchange rate
fluctuation while increasing competition and risks deemed to typify the
new environment.
The reasons for this could be traced
directly to changing government policies, technological changes, changes
in economic climatic and competition. It is therefore restating the
obvious that Nigeria is at a point in history when the downturn In the
economy is forcing the government to reappraise its past strategies for
solving both economic and social problems most especially in the face
of increasing economic fortune for the banks against all other economic
odds.
It is on this premise that the practice
or banking needs to be overhauled and the concept of marketing of
banking services introduced. The adoption or the marketing concept is
the recognition by the management that the organization exist to serve
customers in a way that it will be translated into real sector or the
economy and that it can only satisfy its shareholders In the long run by
providing customers satisfaction at a point.
Today, Nigerian Banking industry needs
to emulate the customers goods, industry by adoption marketing
strategies that reflect the demand and specific requirement of the their
customers for the overall growth of the industry.
1.2 STATEMENT FO THE PROBLEM
The Nigerian banking sectors in the
1989’s are faced with series of problem of which is, in producing more
customers and finds. Because then banks are not faced with any practice
of competition, there were few banks and few people who keep their
money in the bank. The banks were not bothered to increase the number
of customers they have or to generate more funds, because there was no
competition going on in the banking sector then and this did not make
them to produce anything new to the general public.
Not until the re-capitalization in
banking sector that many banks came up with different kinds of product
such as: ATM Card, Cash Card, debit Card, Credit etc. This project is
aimed at exposing some of the problems in the banking sectors, which are
introdudual banks tries to raise more customers by introducing new
techniques that is differs from other banks.
The gap of study to fill that the
management should adopt the rights strategies that will put Bank on a
sound fasting among others and should also fashioned out strategic plans
for them to grow not only in the sector but in the economy as a whole.
1.3. RESEARCH QUESTION
The following research question would be the main focus of this research study:
1. As product development really affect the operation of Banks?
2. Are there problem playing the product development in banking sector?
3. Does management decision policies really affect the product development?
4. Docs the possession of higher
qualifications in the banking industry has any significant in the
provision of good service delivery?
1.4 OBJECTIVE/PURPOSE OF THE STUDY
The main objective of the study is to
examine the; product development of financial service in a competitive
Banking Environment using Zenith Bank as a case study.
Other specific objectives arc to:
1. Identify the strategies used by banks to survive this competition.
2. Determine the extent to which
the marketing is been applied in the banking industry, its impact on
customers satisfaction.
3. Examine effect of product development on customer’s satisfaction.
4. To determine the effect of product development on banks performances.
1.5 STATEMENT OF HYPOTHESES
The following are the hypothesis that will-be tested during the course of this study:
1. Ho: There are no significant differences in the quality of services provided by banks.
H1: There are significant differences in the quality or services provided by banks.
2. Ho: The adoption or the
marketing concept in reaction to competition rather than as a response
to market needs has no significant effect on its success or failure.
Hi: The adoption of the marketing
concept in reaction to competition rather than as a response to needs
has significant effect on its success or failure.
3. Ho: Government regulations play no significant role in the provision of quality service to customers.
Hi: Government regulations play significant role In the provision of quality service to customers.
1.6 SIGNIFICANCE OF THE STUDY
The research provides a framework of
challenges for the competiting bank. This is because in a competitive
environment firms will constantly innovate and differentiate services
from those of their competitors.
The benefits derived from such
innovation is differentiation of products and services qualities and
their abilities to face challenges in their operating environment. On
the other hand, where products and services are not differentiated
competition would not be keen. Consequently, service industries will be
affected. Thus, having impact of the overall development of the banking
industries. Hence there is need [or research.
1.7 RESEARCH METHODOLOGY
The impact of product development and
marketing of financial services will be evaluated by both quantitative
and qualitative techniques.
The data would be collected from various
sources such as journals, textbooks and Annual Reports. Data collected
are to be analyzed using statistical computation such as chi-square and
percentages. The choice of this model will be simple enough in analyzing
the data collected. It also allows for easy manageability and easy
interpretation of result for the purpose of research work.
1.8 SCOPE OF THE STUDY
The study covers employees of Zenith
Bank who are in marketing department in the head office and marketing
officers in some of their various branches which is limited to a
randomly selection.
Also, to do a thorough research study of
the subject matter will require considerable time, which under, the
circumstance is not available. Time, therefore is the greatest
constraints to study of this nature.
1.9 DEFINITION OF TERMS
Capital: This is the amount of money used to set up a business.
Customer: A person who has or intends to have an account relation with a bank.
Deregulated Economy: This is a situation whereby controls on all fiscal, monetary, trade, pricing and exchange rate policies are moved.
Globalization: The idea
of the different countries and economics of the world being closely
connected together by modern communications and therefore economically,
politically, socially and environmentally dependent on each others.
Internet: The large system of many connected computers around the world which people use to communication with each other.
Liquidity: State of being able to raise funds easily by selling assets.
Market: The set of all actual and potential buyer of a product.
Real Sector: The sector
or the economy that is involved extracting and turning raw materials to
finished goods e.g. mining industry and manufacturing industry.
Target Market: The act of selecting one or more segment of the market and developing a position and a mix strategy for each.
1.10 ORGANIZATION OF THE STUDY
The study has five chapters and the focus of each succeeding chapters is stated below:
Chapter One: It looks at general introduction or this research.
Chapter Two: It deals with the literature review and theoretical analytical framework on which the study is based.
Chapter Three: Highlights on the research methodology.
Chapter Four: Contains the analysis and discussion of the research conducted.
Chapter Five: Contains the summary, Recommendation, Conclusion and suggestions for further study.