ACHIEVING OPTIMUM
SALES TARGET AND PROFITABILITY IN FINANCIAL SERVICES MARKETING THROUGH
EFFECTIVE MARKETING STRATEGIES
(A CASE STUDY OF
UNITED BANK FOR AFRICA KADUNA)
TABLE OF CONTENT
Title
page – – – – – – – – – i
Declaration – – – – – – – – – ii
Approval
page- – – – – – – – – iii
Dedication
– – – – – – – – – – iv
Acknowledgement – – – – – – – – v
Abstract- – – – – – – – – – vi
Table
of content – – – – – – – – vii
CHAPTER
ONE
1.1 Background of the Study – – – – – – 1
1.2
Statement of General problem – – – – – – 3
1.3
Objectives of the Study- – – – – – 4
1.4
Statement of Hypothesis – – – – – – 5
1.5
Significance of the Study – – – – – – 5
1.6
Scope of the study – – – – – – – 7
1.7
Limitation of the Study – – – – – – 10
1.8
Historical Background of the case study – – – – 11
1.9
Definition of terminologies – – – – – 14
CHAPTER
TWO
2.1 Literature Review – – – – – – – 17
2.2 Evolution of Marketing Strategy in Banking Industries – 18
2.3 Elements of Marketing Strategy – – – – 21
2.4 Types of Promotional Tools used in Banking Industry – – 28
2.5 Requirement for Successful Marketing in a bank – – 34
2.6 Roles of Marketing in Banking Industry – – – 38
2.7 Services Rendered by United Bank for Africa – – 40
2.8 Types of Marketing Strategies- – – – – – 50
2.9 Effects of Marketing Strategies on Banks – — – – 53
CHAPTER
THREE
3.1 Research Design – – – – – – – – 55
3.2 Research Population – – – – – — – 56
3.3 Sample size and Sample Techniques – – – – – 57
3.4 Method of data Collection – – – – – – 58
3.5 Justification of Method Used – – – – – – 59
3.6 Method of Data Analysis – – – – – – 60
CHAPTER FOUR – Data
Presentation, Analysis & Interpretation
4.1 Data Presentation – – – – – – – 63
4.2 Data Analysis – – – – – – – 63
4.3 Proof of Hypothesis – – – – – – – 80
CHAPTER
FIVE – Summary of findings, Conclusion & Recommendations
5.1 Summary of findings – – – – – – 83
5.2 Conclusion – – – – – – – 83
5.3 Recommendations – – – – – – – 85
Bibliography- – – – – – – – 88
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Promotional strategies are
one of the most important ingredients, which enhance growth, development, and
survival of any organization. Therefore, for any business enterprise to succeed
in the market there is the need for it to always device new promotional
techniques to meet the challenges of times. One of the biggest challenges
facing services industries such as bank today is how to maintain their market
share in today’s largely dynamic and competitive environment.
Before going further, it
will be important to point at the fact that customers are the live wire of any
organization and they are the primary session why an organisation survives
without their repeated patronage, the organisation cannot go beyond the initial
turnover of the promoter’s equity. If an organisation does not treat customer
well they will move to the next competitions.
In the past the use of promotional
concept or techniques were not considered necessary due to the shortage of
supply of product and services, whatever was produced was consumed up. The
service industry did not realize the importance or even the relevance of
finding out what customers wanted or needed and then producing a product or
service that best satisfies the need and
want of the customer. The promotional concept holds that the key to
achieving organizational goals consist in determining the desired satisfactions” Kotler (1984:67).
The banking industry employ
a variety of promotional mix strategies in that suit their product offerings
for example, the banks are moving away
from their traditional range of products such as ordinary current account,
granting loans. Overdraft corporate finance to move customers orientated
products. In this direction banks have gone to segment (device) the large
nitrogenous market into homogeneous sub-market to banks also specialized in
specific services to cater for the few segment. Due to the increased level and
complexity of Competition and that changing characteristics of the market,
Services industry such as the bank have now restored to Intensive promotional
strategies.
1.2 Statement
of General Problem
The Nigerian banking
industry is highly competitive and participating banks have the task of
designing and implementing appropriate promotional strategy to ensure survival
and growth within.
To specific extent, UBA is
amongst the leading banks in Nigeria, but its competitive strength is being weakened
by a number of factors, thus including the following:
Poor commitment to organized
promotional research to determine, on continuous basis evading threats and
emerging opportunities within the industry, Poor customer relationship
management resulting in customer attrition and lost of vital resources, In
appropriate choice of promotional and promotional strategy to suite the dynamic
banking services promotional.
In view of these
constraints, this research project makes an attempt at determining the causes
and effect of these shortcomings and to provide realistic solutions to them to
enhance the banks’ performance within the Nigerian banking sector.
1.3 Objectives of the Study
The main
objectives of this study are to identify the promotional strategies in the
service industry with focus on banking industry that apply not only
computerization but promotional concepts and techniques in its promotional
activities.
–
To identify the promotional strategies that is peculiar to
the promotional of banking industry.
–
To examine the implementation of promotional techniques,
principles and other promotional strategies in the promotional activities of
UBA.
–
To find out the prospects in term of sales profitability of
the bank since the application of marketing strategies in its promotional
strategies in its marketing activities.
–
To identify the problems facing financial services
industries. In its promotional environment particular in Northern State of
Nigeria.
1.4 Scope of
the Study
For the
purpose of this research work, the researcher limits the study to UBA branch at
Yakubu Gowon Way, Kaduna North local government area. The researchers also
cover some areas like element of promotional strategies; procedure for
effective promotional strategies, benefits derived form promotional mix etc.
1.5 Statement
of Hypothesis
Hypothesis is a testable,
tentative probable explanation of the relationship between two or more
variables that create a state of affairs.
The following hypothesis is formulated to facilitate the research
objectives;
Hi: The
promotional strategies have effect on the profitability of banking industries
Ho: The
promotional strategies do not have
effect on the profitability of banking industries
1.6 Limitation of the Study
In a research like this, it ought
to encounter one problem or the other. In view of this, it is expected that not
all staff of United Bank for Africa (UBA) respond to the questionnaire
administered to them. Also the researcher find it difficult to combine class
activities with the research work with the short time frame. Other miscellaneous expenses also affect the
researcher financial position.
This work has greatly limited the time
available for leisure and rest as serious reading and writing was carried out
to meet the challenges associated with project such as this one.
Despite these constraints
the objectives of this study were achieved.
1.7 DEFINITION
OF TERMINOLOGIES
§
Marketing: Is the process of planning and
executing the conception, pricing, promotional and distribution of ideas, goods
and services to create exchange that satisfy individual and organizational
objective.
§
Satisfaction:- This is a state of mind which
demonstrate an emission of positive emotional feelings towards and object or
ideas.
§
Marketing Research:- Is the systematic
design, collection, analysis and reporting of data and finding s relevant to a
specific marketing situation facing the company.
§
Marketing concept: – Is a business
philosophy that focuses primary attention to the needs and wants of customer and
channels the effort towards satisfying their needs and want.
§
Sales concept: Is a business philosophy, which rests on the
assumption that customers will not buy goods or services unless the seller
makes a substantial effort to stimulate their interest on its product.
§
Sales Promotion: Are those marketing
strategies that is used to stimulate consumers to buy more and stimulate
distributors and sales reps to sell more.
§
Market: – Is a group of people or individual
who have demand for the product and have the money and are willing to pay for
the product.
§
Marketing Mix: Is the controllable element
which markets uses to influence consumers responses.
§
Marketing strategies:- Is a coincident
appropriate and feasible set of principles through which a particular company
hopes to derives its own objective.
§
Advertising:- Any paid form of non-personal
presentation and promotion of ideas, goods and services by and identified
sponsor.
§
Competitive Environment: is a business that
operates within other competing firms in an industry.
§
Promotion: all activities that have the sale
aim of communication.
§
Strategy: as a consistent action plain or
more to achieve the firms long-term objectives.
§
Goals: achieving the expected result.
§
Concepts: An abstraction from observation
event
§
Promotion:- Selling and promotion are
normally defined synonymous, although promotion is a more appropriate
language. For many people, selling and suggests only transferring or only the
activities and other methods of stimulating demands while promotion include
advertising personal selling, publicity and others.
§
Competitive environment: – A business
situation that is full rivalry, which call for directing of all of a small
segment of the environment.
§
Marketing mix:-Apportionment of effort; the
combination the designing and the integration of the elements of marketing to
achieve the objectives of an enterprise (product, pricing, promotion and
place).