IMPACT STRATEGIC MARKETING IN NIGERIAN BANKS: A STUDY OF SOME SELECTED BANKS
The research project focuses on the effectiveness of strategic marketing in Nigerian Banks. Three selected banks namely All States Trust Bank. Citizens bank and Afribank Plc were used as case study. Some of the objectives of the study included; determine whether the use of strategic marketing strategies enable banks to achieve financial intermediation objectives.To find out the strategic marketing tools banks use most in building/sustaining customer confidence in the banking industry. To also ascertain whether banks’ adoption of strategic marketing tools has increases customer patronage. And to, find out, if the adoption of strategic marketing principles builds a favourable corporate image of banks.Literature on strategic marketing topics, customer relations, banking industry was extensively reviewed. Both primary and secondary data were used for the study. Initially some high ranking officers of the three banks were interviewed and information obtained from them quite useful in pursuing certain area of inquiring and which later formed the basis for the construction of the questionnaire and formulation of hypothesis.
For the methods of data analysis, percentages, tables and chi-square were used. Chi-square was used in testing of hypothesis. The findings made include:
- The use of strategic Marketing strategies makes achieve their individual financial intermediation objectives.
- Adoption of marketing public relations tools in the operation of a bank helps her in build customers confidence on the banking industry.
- Strategic marketing also helps in the increase of customer’s patronage etc.
It was concluded that, bank in carrying out her intermediation services, it needs to employ result-oriented marketing strategies, such as customizing her services/payment, introduction of innovative products etc. Bases on these same recommendations were made.
- BACKGROUND OF THE STUDY
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.
- Today, with the increase in the level of awareness of Nigerians towards banking operations banking institution face unusual challenges. The challenges are becoming stronger and tougher at the water of the present millenni In the light of the above and more, a bank has to engage in marketing activities if it is to gain a fair share of the market. Through marketing its service, the constantly informs and reminds its customer about itself in order to build a friendly corporate.
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, 1990:48).
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, 1999:137) concluding the charting of the prospects of the banking industry in Nigeria for the 1980s and beyond (Vincent, 1980:19) 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.