CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
There is no
precise or exact date when banking started in Nigeria historically for instance
there are record to show that the momentary activities actually started in
Nigeria in about 1961 when a by company in Lagos with the sole objective of
making easier transaction with the company in Lagos
However the
first banking institute was established in 1892 this was African Banking
Corporation which was insisted by the chairman of the elder dumpster company it
opened it first branch in Lagos in 1892
Commercial
banking was entrenched in 1892 with the establishment of British Bank for West Africa
(B.B.W.A) which took the asset and ability of African banking corporation now
first bank of Nigeria plc. It was the only bank corporate in Nigeria until 1999
when Barclay bank now known as union bank of Nigeria plc was established this
strength foreign monopoly of bank business in Nigeria the established of
industry bank and commercial bank in 1914 broke the foreign monopoly of banking
business in Nigeria. Also in 1933 national bank of Nigeria was established with
western regional government owing substantial percentage of the equity capital
this market the begging of government intervention in banking business in Nigeria
as time went by some of these indigenous bank collapsed in the 1950 to be
precise due to hostile competition from foreign bank and management
inexperience’s on the part of some indigenous bank.
The
indigenous bank were saved from extraction after 1954 by the intervention of
the western and eastern regional bank thus by 1959 twenty size indigenous bank
had been established government also licensed private ownership of bank this in
1977 society general bank of finance and Nigeria business men came into home
light. Also the bank of credit and commerce intentional Nigeria limited now
African intercontinental bank ltd and Nigeria American Merchant bank ltd
command operation in 1988 the federal government through the national board of
community bank (N.B,C.B) in 1990 started granting licensed for the established
of community bank in Nigeria the first community bank in Nigeria was Aphetic community
bank at Tundun Talada in Kaduna local government area of Kaduna state which was
then opened by the then head of stated president Ibrahim Babangida in December
1990 while people bank of Nigeria (P.B.N) was established to care for the small
financial need of those who cannot provide traditional collateral securities
for obtaining loan in commercial bank.
The Nigeria
commercial Banking Industry is opened to all competition is free and fair all
classes or categories of banking products are trade or transacted within the
Nigeria commercial Banking Industry banking product are trade in Nigeria
include:
Acceptance of
customer deposited which is produced in three categories current account
deposited account and saving account.
Advantaging
money to customer is also a product produced into categories they are overdraft
and bank loan.
The bank also
purchase and market bank security and government securities which are
treasuring bill and bonds.
The bank also
trade in bank draft certified cheque and credit guarantee to mention just few
of the services
The above
emirate services are annied at providing security for funds well as granting or
advance credit to people institution and organization in selling this series of
service, the bank face one problem or the other because of the nature of the
product which are mostly services
The aims of
this research work is to look at the application of marketing concept in bank
services in Nigeria the research work also intend to look at the progress the
services as well as to know what from prompted the use of marketing concept in
bank.
1.2 STATEMENT OF THE HYPOTHESIS
Hypothesis is
the statement of relationship between variables in the problem analysis the
researcher describes or refers to some of the variables that should be investigated
because either the relationship between them is not well known or if known
often or always has certain consequence. The variables may have some behaviors
or characteristics which are not clear to the investigator.
1.3 OBJECTIVE OF THE STUDY
At the early
period of emergence of bank in Nigeria marketing concept was not applied ket of
commercial banking industry as there were many people looking for the service
of these few existing bank either receive good treatment all not since all they
need was just banking services.
However with
the expansion in the commercial banking industry many bank were established and
they were competing with one another ion order to attracted deposit as a result
of this competition bank were looking for customer for their service and there
by adopting and applying different concept and strategies to fight completion
in other to increase profitability and remain in business in realization of
this, this study is embark upon to achieve the following.
1. To find out how apartment is marketing
concept to the commercial banking industry
2. To find the progress being made in
commercial banking industry
3. To find the problem being faced by bank
in the process of market their services and reason for these problem.
4. To find out whether the marketing
approaches adopted to reach the customer have been provide effective
5. To find out the various ways of
improving the quality of banking services
6. To look at the operating environment
for commercial banking industry
7. To look at the required technology
needed by the bank to keep abreast with the society dynamism
8. To look at the manpower challenge as
well as the current sale of the industry
On the basis of the result of this
study to offer suggestion on how to adopt and market customer oriented
services.
9. To find out comprehensive list of
services being marketed by bank in Nigeria and how these services are marketed
1.4 SIGNIFICANCE OF THE STUDY
Marketing is
a concept which has not been given due and serious attention among banks in
Nigeria because of the seller market nature of Nigeria Commercial Banking
Industry.
But due to
the deregulation of the industry and the implementation of the economic reform
program if the present administration couple with the increased competition and
persistence increase in the number of enlighten customers, banking has charge
from “Sit down” or ‘arm choir” to a more sophisticated advance mobile and
electronic system.
1.5 SCOPE OF THE STUDY
The scope of
this study is focused on banking with special emphasis on Diamond plc bank plc transactional
Inc. Being the case study organization carry special significant for service
sector in which customers and service producer interest closely to Nigeria
Commercial Banking Industry.
It is time
that every organization have department that has been market or is in the
process of being marketing. As such topic is wide and for justice to be done to
the research work, we intend to limit the study to diamond plc bank plc
Transnational Inc. so that one will be able to really understand the operation
rather than giving general overview of the study.
1.6 LIMITATIONS OF THE STUDY
This study is
limited to Diamond plc bank plc Transnational Inc. the activities of commercial
Banking Industry are examined, the management and banking policies in the
macro-economic sector.
A research
work of this nature need a lot of material information of data, both primary
and secondary services of this study.
This project
like any other academic research work is hindered by some problems in getting
to the deepest root of findings. The researcher was faced with the following
constraints.
i. Financial Constraints: With current economics situation where
there is financial wash up i.e. mopped up through the sales of government debt
instrument, bank recapitalization, privatization and monetization, none has
been score generally, therefore make it possible to get enough financial
assistance.
ii. Time constraints: Time has not always been friend. This
is due to the fact that time available is too short to combine this project
work with our other academic program.
iii. Material constraints: Bank staffs give their customers duty
of secrecy. This alone makes it difficult to get enough data as regard primary
source of conformation.
iv. Hostility Constraints: From some of the respondents in
responding to the questionnaire.
1.7 DEFINITION OF KEY TERMS
I. MARKETING: The management process responsible for identifying,
anticipating and satisfying customer requirements profitably.
II. MARKETING CONCEPT: This is the process an organization
achieve its goals by identifying the needs and wants of target markets and
delivering the derived satisfaction.
MARKETING; it can be defined as a management process responsible
mordent flying anticipating and satisfying customer equipment profitably.
ADVERTISING: it can be defined as any paid form of non personal
presentation of ideas goal or services through a media by an identified sponsor.
RESEARCH: it is the systematic objective and exhaustive search and
study of fact relevant to any problem in the field being stitched.
MARKETING MIX; this is the term used to describe the combination of the
input the constitute the core of a comparing marketing system that is the
product the price structure the promotional actives and the distribution system.