AN ASSESSMENT OF MARKETING MANAGEMENT IN THE BANKING INDUSTRY IN NASARAWA STATE

AN ASSESSMENT OF MARKETING MANAGEMENT IN THE BANKING INDUSTRY IN NASARAWA STATE

 (A case study of Eco Bank Nasarawa Town)

ABSTRACT

This research work was based on the assessment of marketing management in the banking industry in Nasarawa State. Eco Bank was picked to serve as a sample for the population in the course of the research, it was discovered that marketing management department form an integral part of the institution. Thus the development of the marketing management is important for the general development of the banking industry and the economy of the state. The researcher used questionnaire method to obtain information, organize the research work in five (5) chapters. The Chi-square method was used to analyze the necessary data obtained from the questionnaire returned. Adequate suggestions were made on marketing management that contributed to the profitability level of the Eco Bank.

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

Large scale industry is an important sector in the business world which has a growing impact on all other sectors of the economy because of financial services provisions. In this volatile situation financial institutions were not left out as they are seriously affected by the level of competition both locally and internationally. The banking industry environment today is highly volatile (Schroder and Lacobulli 2001). Nigerian banks therefore needs to develop effective technique to enhance the interaction of customers and the bank staff. The complexity in the banking industry has made bank managers to focus on how to create close affiliation with their customers.

No wonder why Nigeria banks now create a separate department in the bank known as customers care unit to address customer issues and complaint in order to ensure that customers get value for their money thereby enhancing customer loyalty, building and maintaining customer’s cordial relationship in order to achieve an advantage that can lead to customer retention and increase profitability. Furthermore, loyal customers can provide the foundation for growth which leads to competitiveness in the industry. Also, the belief that relationship marketing (RM) investment builds stronger, more trusting customers relationship (Morgan andHunt 1994) and improves financial performance has led to massive spending on customer relationship programme.       

With the depressed nature of the Nigerian economy, struggle for survival cannot be over emphasized; where various sector of the economy are struggling to maintain status of a limited number of banks which our financial institutions are not left out in the struggle survey with the collapse of many banks. In the last few years, the need for the remaining ones to struggle and reach out to existing and potential customs has become more glaring. Their product and services are now being marketed to be achieved Shert (2005).

Marketing management provides the framework in which any industry inclusive realizes their long term profit. So it can be said that effective marketing management to be derived from the prospective own their existence to the public. They continue staying in business and their level of success depends on a large extent on the patronage enjoyed from public progressive bank operation since many banks are now folding up, the need is becoming more glaring.

Above all, the changing tasks expectation and increasing sophistication of the marketing management service in the banking industry. Their production orientation is that marketing management orientation has come to change the trend of buyers-market. There was a time when bankers sit behind table expecting deposit and sometimes even refusing to accept deposits from intending customers but that has passed. Banks now have to cultivate the habit of marketing management services the ratification syndrome of the banking firm is like the success of its operation or existence. Therefore, marketing management services in bank requires a planned orientation with best effectiveness.

Sheth (2005) also opines that customer relationship marketing would result into customers’ retention which has to do with creating relationship, Customers loyaltywhich has to do with developing relationship, and customer interaction may lead to customer retention. Considering the above arguments, Nigeria banks now adopt relationship marketing principles and design strategies to achieve and maintain close and long lasting relationship with the customers.

Marketing management strategy is applied to know where, what, when and how to tackle their ever dynamic situations for survival of the bank and the achievement of the cooperative objective. Finally, banks cannot afford to lose customers. They indeed strive hard to win customers heart but it must not stop at that, they should also retain the customer and this has to with its marketing management activities.

Studies disclose that Nigerian banks have embraced performance management significantly and that effective performance management reduces employee turnover and improves service quality. Again, there is a significant, positive relationship between leadership commitment and performance management effectiveness and significant positive relationship between communicating strategy to the staff and performance management. The study therefore recommends that Nigerian banks should invest on their employees and managers so as to drive and consolidate the gains of performance management to remain competitively relevant in the industry.

Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services, to create and maintain relationships that will satisfy individual and organizational objective. It is fundamental to business growth. It basically includes getting goals and services to the final consumer satisfactorily.

Nigerian banks engage in an effort aimed at encouraging certain classes of customers resulting in rejection of deposits or accepting them on dictated terms due to the fact that there are few banks to render services to a considerable large number of customers which led to decline profit level. These changes therefore necessitated the need to find a way of promoting banking service which is possible with the impact of marketing management in the banking sector.

It is surprising that banks have not been able to come up with a comprehensive approach for marketing management of banking service and product. This process witnessed what is called aggressive marketing which is not a repute of what banking stands for in terms of integrity and utmost good faith. However, customers should be at the forefront in terms of the banks planning and cooperative thinking.

1.1     STATEMENT OF THE PROBLEMS

The point of investigation that is explored in this research is the assessment of marketing management in Eco bank Nassarawa Town, marketing management as it has demonstrated velocity of its growth is incredibly fast and efficient it’s as allow individuals including companies to perform their banking businesses. We will examine how marketing management will affect productivity and efficiency, and profitability of banks. Based on preliminary finding it has been observed that Eco bank in Nigeria lack effective marketing management, this make me to carry out a research on the assessment of marketing management in reference to Eco bank Nassarawa Town.

1.2     OBJECTIVES OF THE STUDY

This study aims at assessing performance management adoption in the banking Industry in Nigeria. In addition, the study seeks to achieve the following specific objectives:

1. To assess the extent at which marketing management has contributed to the banking industry with special reference to Eco bank Nigeria Plc. Nasarawa Branch.      
2. To determine if the location of the bank is important to customers.
3. To ascertain which services marketing management offer to customers.

1.3     RESEARCH QUESTIONS

i. To what extent has marketing management contributed to the growth of the bank?

          ii. How is the location of the bank important to customers?

iii. What other services does the marketing management offer to customers?

1.4     STATEMENT OF THE HYPOTHESIS

Hypothesis is a certain preposition made about a population, or it is an assumption which can be tested about population. Its test is usually carried out by using a sample. The following are the assumption of the research and they are drawn from statement of the problem. The hypothesis is stated in the null and alternative forms.

HYPOTHESIS 1

Hi: Marketing management has significant contribution to the banking industry in Nasarawa Town.

Ho: Marketing management has no significant contribution to the banking industry in Nasarawa Town.

HYPOTHESIS 2

Hi: Location of the bank has significant influence on customers of EcobankNasarawa Town.

Ho:Location of the bank has no significant influence on customers of EcobankNasarawa Town.

1.5     SIGNIFICANCE OF THE STUDY

Essentially, this work is not only to acquaint with the historical background of the bank but also primarily to unearth ways for adopting bank marketing management in a bank and come out with valid and reliable recommendations. More so, it will help scholars who want to research broadly on the topic by using this as a foundation to their research works, it will also help the government and management in the banking industry so that they could make interference from the work and adjust their marketing management strategies in order to achieve their set objectives or goals

1.6     SCOPE OF THE STUDY

The scope of this research work is focused on the analysis of the marketing management of Eco Bank and is aimed at improving the management skills to coordinate employers, technicians, experts, supervisors, upper level managers and their individual skills as designers, requirement operator and planner; which can encourage effective management and efficiency. This work will critically examine the cause and effect of poor marketing management in the banking industry and to proffer some useful solution to the problem.

1.7     LIMITATIONS OF THE STUDY

          The following are the limitations of the study:

1. Most bank information is kept a top secret and as such very small portion of information was disclosed.
2. Due to non-availability of undertaking the research to the fullest satisfaction, questionnaire administered was for few of the respondent, the researcher also limit his call to the banking firm.
3. Respondent’s attitudes in most occasions were uncompromising with the researcher for the simple reason that the study will not be any help to them.
4. Inability to commence the work as previously schedule, this is as a result of combine school and personal work with that of the research work.

1.8     OPERATIONAL DEFINITION OF TERMS

MARKETING: According to Philip Kotler (2003) defines marketing as the managementprocess through which goods and services move from concept to the customer.

MANAGEMENT: According to VienNichel (1981) defines Management (or managing) as the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources..

MARKETING MANAGEMENT: According to Philip Kotler (2004) defines marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm’s marketing resources and activities.

MARKET CONCEPTS: Is the strategy that companies use to market their products or services to customers. The goal of marketing management is to promote the benefits of a product and to satisfy consumer needs.

BANK MARKET: It is that part of management activities which seek to direct portability to existing customers.

MARKET ORIENTATION:Market orientation is a company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix. Market orientation attempts to tailor products to meet the demands of customers.

BANK: According to Mace Sich and George (2003) defines a bank as a financial institution and a financial intermediary that accepts deposit and channel those deposits into lending activities either directly by learning or indirectly through capital markets.

SERVICES: According to Valerie Zenithal, ParasumArien and Leonard Beng (1990) defines service as a coherent ready to use deliverable that is of value to the customer service that allow customer to do business without worrying about underlying technology or IT infrastructure.

CUSTOMERS: According to KindallStepanie D. (2007) defines customer as an individual that purchase the goods and services produced by a business. The customer is the end goal of the business, since it is the customer who pays for supply and creates demand.

SATISFACTION: Customer level of approval when company fulfills  his or her expectation.

COMPETITION: Goal rivalry in which every seller tries to get what other sellers are seeking at the same time. Competition plays a regulatory function in banking demand and supply.