The Relevance Of Marketing To The Banking Industry (A Case Study Of Uba Plc)

Description

                               TABLE OF CONTENTS

CERTIFICATION

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENTS

 CHAPTER ONE:- INTRODUCTION

• Background to the study
• Statement of research problem
• Aim and objectives of the study
• Significance of the study
• Scope of the study
• Limitation and constrains to the study

CHAPTER TWO:- LITERATURE REVIEW

• Concept of marketing
• Marketing mix Variables
• Marketing philosophies
• Functions of marketing
• The Evolution of Bank in Nigeria
• Types of bank
• Functions of Bank
• The Role of Marketing in the Banking Industries

CHAPTER THREE:-RESEARCH METHODOLOGY

• Research design
• Definition of Population

3.3   Data Collection Method

CHAPTER FOUR:- DATA PRESENTATION AND

    ANALYSIS

• Brief History of Case
• Data Presentation
• Data Analysis

CHAPTER FIVE:- SUMMARY, CONCLUSION AND

    RECOMMENDATION  

 

• Summary findings
• Conclusion
• Recommendations
• Reference
• Appendix

CHAPTER ONE

INTRODUCTION

• BACKGROUND TO THE STUDY

In the early age of banking in Nigerian, bank paid little or no attention to marketing of their services but due to the development and new tend in the banking industry.

It has been noted that there is new competition going on between various bank especially the commercial banks on how to make their service especially their lastest service acceptable to the customers.

However, in order to meet up with the new development in banking industry, it is very important for the bank to include moderns marketing techniques in putting forward their services to their customers.

Moreover, according to chartered institute of marketing, marketing is also defined as the management process responsible for identifying anticipating and satisfying customer’s requirement profitable.

Furthermore F.O. Peter (1958)m also views marketing as an orderly, purposely and create need wants and creative capacity and skill of an industrial society toward the design of new and better product and new distribute concept and process, while banking service can be defined as the broad spectrum of service that will normally be available and also offered customer by any given financial ( banking) institution with the aim of satisfied the need of the customer profitable.  This definition varies from institution to another.

Marketing of banking service therefore fall within the specialized of services and services marketing provides wants satisfied that are not necessary tired to sales products.

This therefore gives us a strong introduction as to the banking sector in Nigeria and three bank includes commercial bank e.g United Banks for Africa (UBA) Nigeria Plc.  The project work is aimed at reaveling the need for the marketing service in banking industry in Nigeria banking service.

• STATEMENT OF RESEARCH PROBLEM

The focus of the research will be to identify the relevance of marketing to commercial banking industry in Nigeria.  In the cause of research answer will be provided to the following research question problems.

1. What is the historical background of relevance of marketing to commercial banking in Nigeria?
2. What is the reason for marketing operation to commercial banks?
3. What are the step involved in the marketing operation to the commercial banks?
4. Does the relevance of marketing to commercial have and prospect for banks?
5. Does the regulatory authority have roles and impact on the marketing operation to the commercial banks.
6. What are the effects of marketing operation to the commercial bank on Nigeria economy?
7. What are the likely problem facing the marketing operation to the commercial bank?

• AIMS AND OBJECTIVE OF THE STUDY

The research proposal main focus is to take caution both on the relevance of marketing operation to the commercial banks.

Therefore, the aims and objectives of the study include the following:-

1. To examine the historical background of the relevance of marketing to the commercial bank in Nigeria.
2. To highlight the reason for the relevance of marketing to the commercial banking in Nigeria.

• To discuss the step involves to successful of marketing operation to commercial banks.

1. To enumerate the effect of the marketing operation to the commercial bank on the Nigeria
2. To mention the impact of marketing operation to the commercial banks.
3. To expatriate the role and impact of the regulating authorities.

• To critically examine the likely problem of the relevance of marketing to the commercial bank in Nigeria.
  • SIGNIFICANCE OF THE STUDY

The research work is productive in nature; the study will enable the commercial banks to meet the relevance of marketing to commercial bank in Nigeria.

This study is significance to the marketing because it examines the practical aspect of marketing concept to real business moreover, it will help to clarify some doubles and strength and some fat about marketing concepts.

• SCOPE OF THE STUDY

The research will focus on the relevance of market to commercial banking in Nigeria with special emphasis  on (UBA) United Bank for Africa.

The research will be in historical and case study research while may be limited by insufficient finance, lack of co-operation from the respondents and the case study.  This may tender through research.

However, effort will be made to ensure that the above constrains and limitation do not affect the effective completion of the research.

• LIMITATION AND CONSTRAINTS TO THE STUDY

The research will focus on the relevance of market to commercial banking in Nigeria with special emphasis on (UBA) United Bank for Africa.

The research will be in historical and case study research while may be limited by insufficient finance lack of enough time of co-operation from the respondent and the case study.  This may tender through research.

However, effort wills he made to ensure that the above constraints and limitation do not affect the effective completion of the research.

CHAPTER TWO

LITERATURE REVIEW

• CONCEPT OF MARKETING

The marketing concept us the philosophy that firm should analyze the need of their customer and then make decision to satisfy those needs, better than the conception.  Today most firms have adopted the marketing concept, but this has not always been the case.  According to Phillip Kotler (1980).

To better understand the marketing concept, it is worth while to put it in perspective buy reviewing other philosophies that once were predominant.  While these alternative concept prevailed during different historical time frame they are not restricted to those periods and are still practiced by some firms today.

(1)    THE PRODUCTION CONCEPT       

The production concept prevailed from the time of industrial revolution until the early 1920’s The production concept was the idea that a firm should focus on those product that it could  produce most efficiently and that the creation of a supply of low-cost product would in and of itself create the demand for the products.  The key question that firm would ask before producing a product more.

–       Can we produce the product

–       Can we product enough of it?

At the time, the production concept worked  fairly well because the goods that were produced were largely those of basic necessity and there was a relatively high level of unfulfilled demand.

(II)   THE SALE CONCEPT

The question’s that firm or company would ask before producing the product where

• Can we sell the product?
• Can we charge enough for it?

(III)  THE MARKETING CONCEPT

The firm or company most produced what there customer could afford and meat their changing needs.  The need were not immediately obvious.   The key question became:

• What does customer want?
• Can well develop it while they still want it?
• How can we keep our customer satisfied?

In response to these discerning customers, firm began to adopt the concept of marketing which involves:

• Focusing on the needs before developing the product.
• Aligning all function of the company to focus on those needs.
• Realizing a profit by successfully satisfying customer need over the long – term.

When firm first began to adopt the marketing concept they typically set up separate marketing department whose objective it was to satisfy customer needs.

• MARKETING MIX VARIABLE

The major marketing management decisions cab be classified in one of the following four categories:-

• Product
• Price
• Place (distribution)
• Promotion

The variables are known also the marketing mix or the 4p’s of marketing.  They are the variables that marketing managers can control in order to best satisfy customers in the target market.  The marketing mix is portrayed in the following diagram.

The marketing mix

 PRODUCT

The product is the physical product or service offered to the customer in the case of physical product, it also refers to any services or convenience that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, services warranty e.t.c

PRICE

Pricing decisions should take into account profit margins and the probable pricing response of competitors.  Pricing includes not only the list price, but also discount financing and other options such as leasing.

PLACE

        Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customer.  The distribution system performs transaction, logistical and facilitating functions.

PROMOTION

Promotion decisions are those related to communicating and selling to potential consumers.  Since these costs can be large in proportion to the product price, a br3eak -even analysis should be performed when making promotion decisions.  It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.

A summary table of the marketing mix

PRODUCT	PRICE	PLACE	PROMOTION
Functionality	List price	Channel member	Advertising
Appearance	Discount	Channel motivation	Personal selling
Quality	Allowances	Market coverage	Public relations
Packaging	Financing	Locations	Message
Brand	Leasing options	Logistic	Media
Warranty		Service levels	Budget

 

• MARKETING PHILOSOPHIES

There are five alternative concepts under which organization may conduct their marketing activities:” there production concept, product, selling, and societal marketing concepts.

1. THE PRODUCTION CONCEPT:

The philosophy that consumers will favour products that are available and highly affordable, that management should therefore. Focus on improving production and distribution efficiency.

2. THE PRODUCT CONCEPT:

The idea that consumers favour product that offer the most quality performance and feature and that the organization should therefore devote its energy into making continuous product improvements a detailed version new product idea.

THE SELLING CONCEPT 

The ideal that consumers want buy enough of the organization product unless the organization undertakes a large – scale selling and promotion efforts..   

THE MARKETING CONCEPT

Achieving organizational goals depends on determine the needs and wants of its target market and deliver the desired satisfaction more effectively and efficiently than competitors.

5. THE SOCIAL MARKETING CONCEPT

The ideal that the organization should determine the needs, wants and interests of target market and deliver the desired satisfaction more effectively and efficiently than competitors in a way that maintains or improves the consumers and society’s well being.

• Function OF MARKETING

• Distribution
• Selling
• Financing
• Market information management
• Pricing
• Product / service management
• Promotion
  • THE EVALUATION OF BANKS IN NIGERIA

The positive relationship between bank credit and economic development has long been recognized by the governments. Consequent upon this, Nigerian government has long promoted policies that would liberalize credits, particularly to the rural populace such policies include rural banking programme and peoples bank in Nigeria.  The apparent inability of the policies to achieve desired goals led to the establishment of community banks.  This paper evaluates community banking in Nigeria and found that because of inadequate capital structure the banks gave nearly half of their credit facilities to commerce sub sector that did not significantly contribute to economic development.  Its recommended that through conversion to micro finance banks would help other short comings like incompetent staffing and corruption should looked into:-

Keywords: Community Banking, Economic Development, Rural Banking, Credit facilities.

• SAVING BANKS

Saving banks are established to create saving habit among the people.  These banks are help for salaries people and low income groups.  The deposits collected from customers are invested in bonds, securities e.t.c.  at present must of the commercial banks carry the functions of saving banks.  Portal department also performs the functions of saving bank.

COMMERCIAL BANKS  

Commercial banks are established with an objective to help businessmen.  These banks collect money from general publice and given short – term loans to businessmen by way of cash credit, overdraft e.t.c commercial banks provide various services like collecting cheques bill of exchanging, remittance money from one place to another place.

INDUSTRIAL BANKS /DEVELOPMENT BANKS

Industrial/Development banks collect cash by issuing shares & debentures and providing long – term loans to industries.  The main objective of these banks is to provide long – term loans for expansion and modernization of industries.

LAND MORTGAGE / LAND DEVELOPMENT BANKS

Land mortgage or land development banks are also known as Agricultural banks because these are formed to finance agricultural sector.  They also help in land development.

INDIGENOUS BANKS

Indigenous banks means money leaders and sahinkars.  They collect deposits from general public and grant loans to the needy person out of their own funds as will as from deposit.  These indigenous banks are population in village and small towns.  They perform combined functions of trading and banking activities, certain well – known Indian communities like marwaries and multani even today.

• FUNCTIONS OF BANK

Bank do some or play a big role in the economic of a country the function of banks are briefly highlighted in following diagram or chart.

1. Primary function of Banks;

The primary functions of a bank are also known as banks function these primary functions of banks are explained are below:-

1. ACCEPTING DEPOSIT:- The bank collects deposit from the public, these deposit can be of different types such as:-
2. Saving Deposit
3. Fixed Deposit
4. Current Deposit
5. Recurring Deposit
6. GRANTING OF LOANS AND ADVANCES:- The banks advances loans to the business community and other members of the public. The rate charged is higher than what it pays on deposit, the difference in the interest rates (lending rate and the deposit rate) is its profit.

The types of banks loans and advance are:-

1. Overdraft
2. Cash credit
3. Loan
4. Discounting of bill of exchange
5. SECONDARY FUNCTION OF BANKS:-

The bank performs a number of secondary function also called as non- banking functions.

These important secondary function of bank are explained below    

1. AGENCY FUNCTION:- Banks function on the form of agents and representative of their customer. Customer gives their consent for performing such function. Important function of these types areas follows:
2. i) Banks collect cheques draft bill of exchange and dividend of the shares for their customers.

ii.)    Banks make payment for their clients and at times accept the bills of exchange of their customer for which payment is made at the fixed time.

iii.)   Banks pay insurance premium of their customers.  Besides this, they also deposit loan installments, income – tax, interest e.t.c as per directions

iv.)   Banks purchase and sell securities shares and debentures on behalf of their customer.

• Banks arrange to send money from one place to another for the convenience of their customers.

2. UTILITY FUNCTION:- The bank also perform general utility function such as:-
3. a) Issue of draft, letter of credit e.t.c
4. b) Locker facility
5. c) Underwriting of shares
6. d) Dealing in foreign exchange

• THE ROLE OF MARKETING IN THE BANKING INDUSTRY

The technological progress the world is experiencing has also changed the way banking is done in Sweden today.  One tough challenge for the banking industry is the moderately homogenous products and services they offer, which make banking particularly exposed and sensitive to customers and their something behaviour.

THE PRACTICE OF RELATIONSHIP MARKETING AND CUSTOMER RETENTION IN THE BANKING INDUSTRY

The banking sector in Nigeria has witnessed significant improvement in relationship marking.  The purpose of this study is to bring deeper understanding and insight into the practice of relationship marketing and customer retention by banks in Nigeria.

INTEREST BANKING IN NIGERIA

 Revolutionary development in marketing, information and communications technology continue to transform the banking and financial, industry.  Distribution of banking services through the internet is an important part of this transformation.

ENVIRONMENTAL CONSIDERATIONS AND BUSINESS OPERATIONS OF COMMERCIAL BANKS IN NIGERIA

Commercial banks in Nigeria, such as the industrial and commercial banks in Nigeria (ICBN) should take environmental considerations into their business operations and policies to ‘green’ their business from the perspective of risk management and business marketing.  This is not only the social responsibilities for them as a corporate citizens which is playing an important role in the business life, but also the expectations from the stakeholders for them to meet the vision and responsibilities of sustainable development.