CHAPTER ONE
1.0 BACKGROUND OF THE STUDY
1.1 INTRODUCTION
In
these days of stiff competition ion all business concerns including the banks
and other financial institutions, the survival of banks rest on the role of
marketing department in creating quality service to customers.
A
marketing department is designed to know the effectiveness and efficiency of
services rendered by organization.
Marketing
to some scholars is seen as the process of identifying the needs of the
customer and the provision of such needs for maximum satisfaction. Also, it is the process planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchange that
satisfied individual and corporate objectives (American Marketing Association).
Marketing
department should ensure that each worker roles and duties are clearly defined
and how such roles relates to other roles or department in order to minimize
conflict of effort.
Therefore,
the role and duties of marketing department in banks or any financial
institution cannot be left out for every financial institution to work
efficient as expected.
Bank
can be defined as financial institution that accept money from the surplus
spending unit and gives to the deficit spending unit, to earn a living. Also it can be viewed as an intermediate
between the surplus spending unit (depositor) and the deficit spending unit
(borrowed). For effective economic activities.
Bank
needs marketing department to achieve its organization goals, using marketing
mix. Therefore there is no way to
explain the impact of marketing concept and market segmentation and the
relationship with bank marketing concept, according to evil borden and mc
earthy of Harvard university is the idea process or strategy used in achieving
organizational objectives. From the
marketing. Point of view, for important
areas about which decision needs top be made are:-
a) Product
b) Price
c) Place
d) Promotion
Sometimes
referred to as 4ps of marketing, they are known collectively as the marketing
mix, must or almost every marketing activity are centered on the so called
marketing mix. This marketing mix is related to the marketing activities in the
bank as explained below:
PRODUCT
Product is defined as any tangible goods that can be
easily consumed. But in the content of
banking industry product does not really mean tangible goods by financial
services rendered by banks to both actual and potential customers. Some of the product (financial services)m
rendered by banks are:
1. Cash handling
2. Money transmission
3. Investment
4. Lending
5. Financial advice
PRICE
Pricing
is the process through which the exchange of a product is made easier. Pricing is the contact of marketing is a
process through which the product is offered in to the market to satisfy the
customer needs and brings profit to the firm.
Pricing the product (financial services) rendered or
offered by a bank is often more difficult than making pricing decision in a
manufacturing outfit.
In determining the price of banks a number f factors
will be considered.
1.)
Bank customer
relationship
2.)
Special offer
3.)
Customer attitude /
mode of operation
PLACE
The
purposes of production are not satisfied.
If product price does not reach the customer. Therefore, it is important to relate place as
one of the marketing mix to the banks head offices, branches and agent are the
right place where product (financial services) are marketed.
PROMOTION
Banks
because of competitive array of operation needs promotion to let its buyers be
aware of both existing and new services and to get customer informed about the
use of new services promotion is prominent because of the following:-
1.
Greater competition
between banks
2.
Increases in new
services to attract customers attention.
1.2
STATEMENT
OF PROBLEM
There are many reasons for organization to adopt
marketing strategy for management effectiveness, but, varies from one
organization to another. The major
reasons which can be identified for the design and option of marketing strategy
in an organization, particularly in banking sectors include the following.
1. Identify the needs of the customer
2. Providing
service to meet the identified and at the right price time and right place.
3. Making
some profit meeting customer needs.
1.3
OBJECTIVES
OF THE STUDY
The objectives of this research work is to determine
the relevance of marketing department in most banks, other objectives of the
study are as follows:
1. To
know the application of marketing mix that is suitable in the banking industry
between the customer and the bank staff.
2. To
know how the service in banking sector affect the economy of a nation.
1.4 SCOPE OF THE STUDY
This
project work is basically concerned with the banking industry/Sector, Union Bank
of Nigeria Plc, Ilorin Branch (Oja-oba) as the particular reference. Having, realized its major concerned on the
impact of marketing activities in banking sector.
1.5 SIGNIFICANCE OF THE STUDY
The importance of this study can not be over
emphasized as it will go along way in consistency Union Bank of UBA to see to the
complains of customers.
The study will also highlight the possible benefits
and purpose of marketing department in the bank. It will also serve as reference for future
studies by management students.
1.6 LIMITATIONS AND CONSTRAINTS
This research work is limited in scope due to some
problem encountered during the curse of putting the write up together.
Apart from the financial and time constrains that
limited the scope of the study, selecting a ban out of 122 branches, operating
in the country could not be said to be a good representation or sample of bank
required to generalized the impact of marketing department in the bank sector.
Besides, it should be noted that officers of the
banks usually decline disclosing certain information often tagged as confidential. This study equally limited the extent to
which useful data were made available.
1.7
DEFINITION
OF RELATED TERMS AND CONCEPTS
At this juncture, it is very imperatives to defined
some terms used in this chapter to enhance the reader understanding.
1.) Marketing:-
This is the process of identifying the needs of the customers and providing the
needs.
2.) Price:-
This is the value consumers place on a particular product, often termed and
expressed in monetary form.
3.) Place:-
It includes the various activities the company undertake to make the product
available and accessible to the target customer.
4.) Financial
Institution:- This is an institution that serve as a mediator between the
surplus spending not and the deficit spending unit.
MARKETING
SEGMENTATION:- For marketing effort to be
effective the marketer should decide whether to treat his market as a single
large unit or as a group of separate smaller unit called market segments.
1.8
PLAN
OF THE STUDY
Many
writers have tried to see this particular issue from different perspectives and
classification. The chapters in this
study are divided in to five. The
introduction chapter which the subject matter research objectives, scope of the
study statement of problem e.t.c.
chapter two encompasses literature review in the field of study and
examines the importance and needs for marketing in banking sector. Chapter three deals with the historical
background of Union Bank of Nigeria Plc and organization structure. Chapter
five deals with conclusion, summary and recommendation.