The basic objective underlying
this study was the marketing of the study of the ability of the commercial
bank’s by services in fund generalization or mobilization.
The study has been structured
into five chapters to make for easy reading and comprehension.
Chapter one death with the
background of the prevailing circumstances in the economy that necessitated the
introduction of programonee intend ed to correct the imbalances in the economy.
It also gives an insight into the measure, both monetary and fiscal policies
estabhshed to build as strong and viable economic base for the counting’s
From this other four chapters
derived that base from the chapter one in order to confirm the findings, He
commendations and contusions.
Though the banks have benefited
from their innovativeness in product, development, certain problems were
encountered by some of this banks which includes poor communication system (ie)
publicity, weak base, fluctuations in interest rate arising from market forces.
In view of the findings above, recommendations have been made to help
consolidate the banks effort in new product development.
However, it would be not worthy
to mention here that trend in new product development has been a welcome and
rewarding development in the financial sector.
Commercial bank in Nigeria
render services like cash depository, agency services and granting of credit
facilities such as over draft, loans etc.
And this can be said to be the
stock in trade of the commercial banks. This should be effectively carried out
through the use of marketing strategies.
Marketing is a new science in
the service industries in Nigeria and had not been applied earlier. In banks,
this had resulted to poor bank / customer relationship and reduction in the
quality of services provided. the bank employ marketing strategies like
promotion pricing, distribution, production differentiation etc nowadays. This
project therefore is out to find the extent to which they have employed
marketing strategies and its impact on the banking habit of the inhabitants of
To attain the above, data was
collected through secondary sources such as the intensive extraction of ideas
and information from both published and unpublished materials, journals etc.
TABLE OF CONTENTS
background of study
statement of problem
objective of study
significance of study
limitation of study
definition of the terms.
The literature review.
RESEARCH DESIGN AND METHOLOGY
source of data (secondary data only)
locations of data
method of data collection.
BACKGROUND OF STUDY
Marketing in relation to commercial bank’s services in Nigeria has not been
able to play its part or role in the banking sector for the reason that it is
being regarded as mere advertisement or ordinary public relation.
And so marketing was linked to
manufacturing firms, with service inductance such as banks, insurance etc being
left to roast.
In present time, marketing
activities have acquired increased importance. This is due to the fact that
competition in banks has increased.
Apart from the increase in the
number of banks, other types of financial institutions exist coupled with the
fact that the federal military government in 1992 introduced community banking
in Nigeria under the community bank’s decree (1992) promulgated by ibralim
babangida, the then head of s Tate. These institutions offer services similar
and comparable to those offered by commercial banks. In this way competition
arises as a good concidtion for marketing to exist in the banking industry or
sector. Some of the example, of these other financial institutions are finace
house, investment club, credit co- operative societies, and loan association
etc. they have also expanded their services in order to compete favorably for
demand and time deposits etc for their customers banks for the simple reason
that they operate in environment near and know to their clients.
Although the bank customer has
and is becoming more and more sophisticated in his needs of the non basic
services of commercial banks, still the greater percentage of the Nigeria
population is yet to know and avail themselves the opportunity. For instance,
in some local communities even with the introduction of community banking,
about 90 percent of their inhabitant, if not more are yet to know and avail
themselves of these services. Again most of these commercial banks are situated
in urban area, thereby marketing the services to the urban dealers who are
already aware of such services. At least a proportion if not in totality. And
this is the reason customers cluster at banks offices with the bankers paying
little or no attention to their customers.
To overcome all these, the
banks must adapt to the changing environment and requirements of their
customers. Since operation orientation had dominated the banking activities while
marketing has not played and significant role.
The provision of financial
services to customers is the stock in trade of commercial banks in Nigeria.
Some of the services of include: collection and payments of cheques, granting
of credit facilities, acting as trustees and executors, buying and selling of
stock and shares, issuing of bankers draft etc.
All the above make up their stock in trade and the way and manner in which
these services are carried out constitute their marketing strategies.
Therefore, it is obvious that
these marketing strategies in this sense is, the attitude of their staffs,
quicks attendance to customers, creation of good public image i.e
communication, opening of more branches (distribution)etc.
All these, being said but not actually done, since the way banks services near
the required standard. Banks treat their customers the way they like, infect
most banks in Nigeria believe that it is their right to delay customer.
These has resulted to
long queues in banks with customer sitting and even some standing waiting for
In view of all these it is obvious that banks should start or increase their
marketing activities since some have not started at all.
The era or period of the
sellers market has come and gone. And so banks should cultivate the habit of
marketing their services in a way to improve and promote image and also
increase their patronage.
STATEMENT OF PROBLEM:
The aim of marketing activities is to assist the banks to achieve its objective
of customers satisfaction and better value for their money at a profit.
It is concerned with how modern day banking services can be made available to
customers in the proper way. In doing this banks encounter some problems such
as competition. This a situation where those competing with these banks have
penetrated into the towns, and communities with our people percolating more in
their organization and they are older still. They include: the isusu clubs, investment
club, co-operative societies lending houses etc.
On the other hand, however, today in Nigeria in general the commercial banks
still largely operate the oil system of banking whereby bankers sit and wait
for customers to bring business for them. Even those that manage to come wait
endless hours trying to get same and similar services of these banks.
It is clear that some people
don’t event ask for other services rendered by commercial banks as a result of,
poor attitude of bankers, inefficiency of bankers and lack of proper
Some times the banks on the
other hand, decide on the number of these services to render, since their
ultimate aim is to equate the economic balance between service cost and number
of customers and their satisfaction. This is because providing too much service
involves too much cost while not providing enough leads to not satisfying
Finally, the major problems
identified in this study is that services provided by commercial banks in Nigeria
are not that sufficient, banks face much competition and that enough banking
habit have not been formed.
OBJECTIVE OF STUDY
The main objectives of this study are to find how commercial banks in Nigeria
employ marketing strategies in the sales of their services, and how it has
affected the inhabitants banking habits. Other are:
to ascertain the number of services
rendered by commercial banks in Enugu.
to assess the efficiency of banks in rendering these services.
to make recommendations for improvements the required areas.
SIGNIFICANCE OF STUDY
This particular topic of study is useful and beneficial because of the points
Banking habit needs to be
encouraged through efficient marketing strategies in order to generate money
for economic development that is so that funds will flow from saving the time
investment in the real to sector of the economy. I begin to imagine that, this
is what prompted. Ajayi to say in paper presented at a workshop on marketing of
financial services at the University of Ibadan that “money plays a very
important role in any economy even through money is not the panacea to economic
development, we agree that money matters in economic development”. Since the
management of scarce resources is best done by the appropriate financial
institutions, banks therefore have a great role to play in the Nigeria economy.
It is also definite that competition with other credit organization will reduce
with banks efficiently providing these modern banking services in the way they
ought to be provided. That is the provision of efficient and diversified
services in which these other credit houses cannot measure with them.
This study will make valuable
contributions to banks in marketing their services by discovering the their
competitors of old standing and at the same time get new customers.
DEFINITION OF TERMS
i. APEX BANK
The refers to the central bank of Nigeria as the “bankers bank” it controls the
activities of the other banks.
This is a persistent rise in the general price level which causes the purchasing
power of nominal money to fall. It rate is measured by consumer price index.
iii. CONSUMER PRICE INDEX
A simple number showing how, no the average the price of a selected number of
selected goods stands relative to some base year price.
iv. MONETARY POLICY
This refers to the credit control measures adopted by the central bank of a
country. It is used to consume the supply of money as an instrument for
achieving the objective of general economic policy.
v. BALANCE OF PAYMENTS
This term defines the trading standing of a particular country with that of
another country with which it engages in trade.
TERMS AND CONDITIONS APPLY
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