Differences between commercial banks and merchant banks
Commercial banks and rural banking development
Financial institutions and rural development
Rural banking scheme and relationship Between peoples bank,
community, family support towards rural development
Sources of data
Population of study
Sample size determinant
Research instrument used
Origin of data
Tool of statistical analysis
Testing of hypothesis
Summary of findings, recommendation and conclusions
Summary of finding
BACKGROUND OF THE STUDY
transactions in some selected local government in Enugu such as Udi, Ezeagu
Udoji is not new to us as we have been practicing this system for over thirty
years after independence. However it is on this background that two systems of
operations were adopted for effectiveness and efficiency of the product
management in various banks. In the past we use to have an orthodox banking
process whereby the banker relaxes on this sit waiting for customers to bring
business. This type of banker is looked at as somebody with rigid ideas about
bankable projects and which in turn retards the smooth flow of banking
operations. Another type of banking process adopted as conventional is the
unorthodox system whereby the banker is evolved in looking for customers.
Because they want to maximize profit, the banks employ all possible marketing
promotional strategies in order to survive, hence competitors has come into
play and thereby creating innovation and business acumen. Knight Lester B.
(1970: 7) status of banking marketing Washington D. C. American Bankers
Association states that banks primarily especially commercial banks are engage
in business of collection, payment and depository functions as well as credit
According to Kotler (1980: 4) stated that the survival of any bank depends on
the manner it functions and therefore it has to depend on the market place for
its profitability and environments of the economy which it serves. It is worthy
to mention that the ability of any business to serve and retain its customers
depends mostly on the quality and the effectiveness of the product management
it offers. The quality of services provided by the any organisation is better
judged in terms of it’s ability to bestow the customer’s with the desired
satisfaction. In this regard characteristics such as reliability,
standardization, availability and other desired attributes associated with
service combine to determine the effectiveness of the product management in the
marketing of banks services in the three local government areas.
Martins (1979: 12) confirmed that the image commercial bank has is important
because it determines the customers patronage of bank.
According to advertisers watchdog (1983: 7) awareness creation strategy has
been limited to advertisement which does no more than informing the customers
about the services they offer and the address of their location. All the claims
about efficient courteous and speedy services are false and advertising in
banking industries can only become a reality when services the bankers render
is equated to match the claims they make I the advertisement. According to
Azikiwe (1943: 16) expressed his annoyance and disappointment over the
treatment meted on him from a bank staff in Lagos. The story is still the same
every where even after the days of the white men. Loans are still granted
guarding to customers and if granted, it is alleged that the managers demand
personal cuts, long queues, man-know-man etc.
Banking habit among the people is still very low in sipte of huge profits recorded
by banks annually, according to Engu and Warsaw (1979: 10) indicated that there
is a ray of hope and government rural banking programme if well planned,
coordinated and pursued vigorously will help to increase the banking habit of
our populace, increase efficiency and effectiveness of it product management”.
There w ill also be an increase competition among the banks for customers. As
at the end of March 1985, there were thirty two commercial banks, operating
Udi, Ezeagu and Udoji witu a total of one thousand one hundred and fifty nine
(1,159) brand network. By share volume, the commercial banks are the most
dominant and by December 1980, they had a total capitalization of N16,340.50
The competition among banks would center on non-price lines since the Central
Bank controls the interest, the aggregate among to be lent to some categories
of customers, the sector that more funds should be decided to what should be
accepted as security for the loans and especially the type of business that
banks should go into. How banks attracts serve and retain customers is left for
to decide. All these put together including deposits, loans and advances make
for effective product management.
STATEMENT OF THE PROBLEMS
The business of banking entails the collection
and transmission of funds from the saving surplus to the saving deficit
economic units. Thus banks act as the mobilize of funds to all sectors of the
economy. Commercial banks have growing from about seven in 1952 to thirty two
by March 1985 with 1159 branch network. But the industry has continuously bene
under attack by main observers especially marketing critics for failure to
utilize fully the advantages of modern marketing principles in operating their
banking business for better achievement of co-operate objectives and goals.
Unfortunately, product management is the most criticized of all banking
Thus the poor product management practices of the banks have resulted into
sense of complaints of dissatisfaction among customers about the quality of
services offered. To them services are inadequate and poorly rendered. Beside
most customers and potential customers are not fully aware of the bank services.
The problems to be addressed in this study are: the customers have equally
criticized the charges of the bank and varsity of services offered by this bank.
The importance of the industrials to the economy of the country need met to be
over – emphasis but yet they are found writing in optimum satisfaction of it’s
numerous customers. In view of the importance of this industry in the economy,
the researchers seek to evaluate the effectiveness of the product management in
this industry for increased performance.
OBJECTIVE OF THE STUDY
objective of this study is to determine the effectiveness of product management
as adopted by 1st Bank in the
marketing of banking services in Udi, Ezeagu and Udoji Local Government Area.
At the end of this research, it is hoped that this exercise will assist to
provide the management with relevant information as an aid towards effective
marketing of its services.
This research work seek to:
1) To determine the length and quality of service
being afforded by first bank limited to its customers.
determine whether the attitude of the bank staff affects the customers
patronage of the bank
find out whether writing time and armchair posture adopted by the banks affects
the quality of services they render to customers.
demonstrate the importance of applying marketing, principles and practices and
determine if the concept of man-know-man affect the bank loan and advances.
find out if there is any effect of non-availability first banking services in
the rural areas and effect of proximately on customers patronage.
obtain any information which many are relevant to the management in the
planning and executives of promotional decision for effectiveness and
SCOPE OF THE STUDY
study is limited to first bank in 9th Mile
corner Ngwo and also customers of the bank within Udi, Ezeagu, Udoji metropolis.
STATEMENT OF HYPOTHESIS
The quality of services offered by the first bank do
not lead to customer patronage.
Hi: The quality of services offered
by the first bank lead to customer patronage.
The First bank changes does not lead to increase
Hi: The First bank changes does to increase
The effectiveness product management of the first bank
not leads to its availability.
Hi: The effectiveness product management of the
first bank leads to
The promotional activities of the first bank impact
on customer’s awareness of he services.
Hi: The promotional activities of the first bank
on customer’s awareness of he services.
SIGNIFICANCE OF THE STUDY
The importance of this study is that after looking into the effectiveness
product management of the First bank in marketing their services, one will be a
position to see whether the quality of services rendered by First bank has
influence on the customers. It will help us to find out whether the attitude of
the bank staff affects the customer’s patronage. This study will also help us
to find out whether armchair alleviate whether promotional problems the bank
may have been encountering in marketing of their
Finally, it is hoped that the findings of this study will be of immense help to
the banking industries as a whole and first bank Ltd in particular in that it
will attempt to highlight areas of deficiency with a view to helping management
improving its services and our recommendation if implemented would help the
bank to improve it’s operations and profit figures.
DEFINITION OF TERMS
has been defined by American Marketing Association as a strategy for
stimulating marketing demand and gaining competitive edge by informing,
persuading and services and identified audience.
refers to the planning and adjustment of efforts to attain a specific
objectives. Strategy also encompassed act of conducting a campaign and
to Kotler, marketing is human activity directed as satisfying needs and want
through exchange process.
Services:These are separated indefinable
activities, which provide wants satisfaction when marketed to
consumers/industrial users and which are not necessary tied to the sale of a
product or another services. J. M. Rathmell, Journal of Marketing, October
banking ordinances of 1952 defined banking business as the business of
receiving from the public on current account, money which is to be payable on
demand by cheques and of making advances to the customer?
banker is a dealer in debt. It is also any body or body persons whether in
cooperated or not that carry on business of banking.
is no statutory definition of customer. The relationship arrives when a person
or group of persons, society, firm customer, which the bank normally accepts
customer also means one accustomed to frequent a certain place of business or a
TERMS AND CONDITIONS APPLY
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