ASSESSMENT OF THE CHALLENGES OF MARKETING BANKS PRODUCT IN NIGERIA BUSINESS ENVIRONMENT
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Marketing is the creation, development and delivery of products and services that satisfy the needs and wants of the customer, at a profit (Madsen and Tan, 2015). Marketing should be an organization wide practice. It must be focused on the customer, product and services and work with the segmentation of the markets in the most productive and cost-efficient manner to derive profitability. Marketing has moved from customer acquisition (winning new customers) to customer retention (keeping existing customers for life); through customer selection (be selective in choosing customer-priority for the profitable ones). In a business environment where there are many competitors, there is need for effective marketing of products to attract more customers and boost profitability. In the Nigerian banking environment, there are challenges that affect marketing of banks products and services. It is in view of this development that this study is poised to find out the challenges of marketing banks product in Nigeria Business environment.
Given the trend of every aspects of economic activities globally and particularly Nigeria, it is imperative for business entities to adopt measures that should strategically reposition them so as to remain afloat. With much increase in the level of customer awareness in response to their needs and wants or satisfaction, firms should also discuss their old marketing strategies that are not result-oriented. They should acknowledge the paradigm shift from old marketing concept to the new marketing concept, which is a customer driven, technology-driven era in modern marketing management (Johnson, 2010). One of the industries which have gradually started repositioning its operation to suit customer’s needs and wants is the banking industry. Nigerian banking system is characterized by internal and external competition. The upsurge of new banks created room for innovation and further market sharing. A proxy to determine the extent of competition is the intensity of advertising by banks in recent times.
The system has witness sophistication in the style and designing of new financial products (Anyafo, 1999) concluding the charting of the prospects of the banking industry in Nigeria for the 1980s and beyond. (Vincent, 1980) envisaged that the service demanded of the banking industry will ground more sophisticated in response to change in the nature of the business they are called upon to finance and as their customers become more knowledgeable and discriminating. A few years ago, bank did not see the need for providing adequate service and encouraging patronage. It is a common knowledge that the Nigerian banking system has over the nineteen-decade and part of 20th century been experiencing a crisis of confidence a situation in which customers doubt the integrity of the banking system in delivering the financial intermediation services under such circumstances has strategic marketing any role towards the restoration of mutual confidence between the operators in the banking system and the customer public and shareholder publics. The issue is that a financial system thrives on public confidence and the erosion of that confidence result to disintermediation thereby undermining the ability of the financial system to perform its essential role of savings mobilization. The nature of banking service is that, bank have to build up an image of respectability, capability and reliability through satisfying their customers (Unachukwu, 2014).
1.2 Statement of the Problem
Banks are custodians of the customers’ wealth, they provide financial service and peace of mind to the customers. With the increase in the level of awareness of Nigerians towards banking operations, banks face unusual challenges. The challenges are becoming stronger and tougher at the water of the present millennium. And with the present dynamic nature of Nigerian business environment, banks are being exposed to a lot of challenges in marketing their product. In the light of the above, this research is carried out to assess the challenges of marketing bank’s product in Nigeria business environment.
1.3 Objectives of the Study
The following are the specific objectives:
. To assess the challenges of marketing banks product in Nigeria Business environment.
. To assess the various marketing techniques used by banks in marketing their product.
. To assess the need for marketing bank’s product in Nigeria.
. To evolve strategies to overcome the challenges faced by banks in marketing their product in Nigerian business environment.
1.4 Research Questions
The following research questions are formulated based on the study objectives:
What are the challenges of marketing banks product in Nigeria Business environment?
What are the various marketing techniques used by banks in marketing their product?
What are the needs for marketing bank’s product in Nigeria?
What are the strategies to overcome the challenges faced by banks in marketing their product in Nigerian business environment?
1.5 Significance of the Study
This study is significant in the following ways:
It will help to identify the challenges of marketing bank products in Nigeria business environment. It will reveal the impact of marketing of financial services and products in the Nigerian banking system. It will reveal the ways of overcoming the challenges of marketing banks product in Nigeria Business environment. The study will serve as a useful reference material to other researchers seeking related information on the subject.
1.6 Scope of the Study
This study is on the challenges of marketing banks product in Nigeria Business environment using Diamond Bank plc as a case study.
1.7 Limitations of the Study
The study was limited by the following factors:
Financial Factor: Inadequate funds affected the way data were collected since the researcher had to travel long distances for the distribution of the research questionnaire forms.
Time Factor: This affected the reduction in the size of the sample used for the study because the researcher had less than two months to complete the study.
Material Factor: Shortage of relevant materials for literature review posed a great difficulty. The study was also limited to the information gathered from primary and secondary records.
1.8 Organization of the Study
In this research study, the researcher took a critical look on Assessment of the challenges of marketing banks product in Nigeria Business environment. The research work was divided into five chapters. Chapter one was on the background of the study, as well as statement of the problem, objectives of the study, research questions, statement of hypothesis, significance of the study scope and limitation of the study, organization of the study and definition of terms. Chapter two reviewed the related literature on the subject matter and contributions of different authors. Chapter four takes care of the data presentation, analysis and interpretation as well as discussion of findings. Chapter five (5) encapsulates the summary, findings, conclusion and recommendations made by the researcher.
1.9 Definition of Terms
Marketing: The promotion, distribution and selling of a product or service. Includes market research and advertising.
Bank: An institution where one can place and borrow money and take care of financial affairs.
Business: A specific commercial enterprise or establishment.
Financial services: Financial services refer to services offered by the finance industry, among these organizations are banks, credit card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment fund and some government sponsored enterprises.
Business Environment: The combination of internal and external factors that influence a company’s operating situation. The business environment can include factors such as: clients and suppliers; its completion and owners; improvements in technology; laws and government activities.; and market, social and economic trends.