AN EVALUATION OF MARKETING CONCEPT IN THE BANKING INDUSTRY
1.1 BACKGROUND OF THE STUDY
To be competitive, financial institutions must appraise how they are delivering products and services, determining that their marketing approach meets their customers’ needs and demands for financial products. Non-banking entities continue to enter the financial services arena which has given rise to the need to market products more effectively. Additionally, customers’ wants and needs are constantly changing, along with changing technology and delivery methods. Attention to service quality is mandatory for those institutions who hope to increase their market share. A dilemma is created for those in the financial services industry. Where is emphasis placed–on service or cost? The successful financial institutions will be those who can adapt their marketing approach to meet the demands brought about by changing laws, technology, and customer requirements. Therefore the research seek to evaluate the marketing concept in the Banking industry with a case study of union Bank plc.
1.2 STATEMENT OF THE PROBLEM
The recent developments in the banking industry from consolidation, to mergers, and acquisition of small banks by the big ones has led to stiffer competition in the banking industry
As a result it is imperative that banks refocus their marketing strategies to be relevant and customer driven present economic climate in our country possess serious challenges to the banking industry, ranging from effective and prudent management of resources to the quality of service rendered and their accruing mutual satisfaction to both banks and customers. In other words, it calls for the adopting of a marketing orientation and the application of the tools of marketing to banking business to ensure survival and growth. Therefore the problem confronting this research is to evaluate the marketing concept in the banking industry with a case study of union bank plc
1.3 RESEARCH QUESTION
1 What is the nature of the marketing concept?
2 What is the relevance and application of the marketing concept in the Banking industry?
3 What is the nature of the marketing concept in union Bank?
1.4 OBJECTIVES OF THE RESEARCH
1 To determine the nature of the marketing concept.
2 To determine the relevance and application of the marketing concept in the Banking industry.
3 To determine the nature of marketing concept and its significance in union Bank plc.
1.5 SIGNIFICANCE OF THE RESEARCH
The research shall proffer the relevance of the marketing concept in the banking industry. It shall serve as a source of information to marketing expert in the banking industry.
1.6 STATEMENT OF THE HYPOTHESES
Ho: Competition faced by union Bank is low.
Hi: Competition faced by union bank is high.
Ho: Marketing concept is not given significant attention in union Bank.
Hi: Marketing concept is given significant attention in union Bank.
Ho: The impact of marketing concept in union Bank is low.
Hi: The impact of marketing concept in union Bank is high.
1.7 SCOPE OF THE STUDY
The study focuses on the evaluation of the marketing concept in the Banking industry with a case study of the effect of marketing concept in union Bank plc
1.8 DEFINITION OF TERMS
The Marketing Concept: This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.
Sales Concept: The Sales Concept focuses on the needs of the seller. The Marketing Concept focuses on the needs of the buyer. The Sales Concept is preoccupied with the seller’s need to convert his/her product into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem (needs).
MARKETING MIX DEFINED
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand’s offer, and is often associated with the four Ps: price, product, promotion, and place. In service marketing, however, the four Ps are expanded to the seven Ps or Seven Ps to address the different nature of services.
In the 1990s, the concept of four C’s was introduced as a more customer-driven replacement of four P’s. There are two theories based on four Cs: Lauterborn’s four Cs (consumer, cost, communication, convenience), and Shimizu’s four Cs (commodity, cost, communication, channel). In 2012, a new four P’s theory was proposed with people, processes, programs, and performance
A customer is an individual or business that purchases the goods or services produced by a business. The customer is the end goal of businesses, since it is the customer who pays for supply and creates demand. Businesses will often compete through advertisements or sales in order to attract a larger customer base.
The various ways in which a bank can help a customer, such as operating accounts, making transfers, paying standing orders.
Goods and services that banks provide for their customers, for example, statements, direct debits, and automatic debits.