A STUDY OF MARKETING PRACTICES OF COMMERCIAL BANKS
BACKGROUND OF THE STUDY
Year ago, banks had little understanding or regard for marketing. They did not know how to make a case for checking accounts saving, loan or safe deposit boxes. The bank building was created in the image of a Greek temple calculated to impress the public with the banker’s important and solidity. The interior was austere and the teller rarely smiled. This was the bank’s posture before the age of marketing.
Marketing came into banks not in the form of the marketing “concept but in the form of the advertising and promotion concept”. The banks learnt that attracting people is easy; converting them into loyal customers is hard. These banks learnt to formulate programmes to please their customers. Bankers learnt to smile. Bankers found a new completive tool when they began to segment their market and innovate new products for each of these target segments. It then became necessary to communicate customers about these practices. Their benefits and new factures. The nature of the marketing practices of commercial banks is such that it has to build up an image of respectability, capability and reliability through satisfying their customer.
The challenges became even stronger and tougher since (1979) when the Nigerian Federal Government ordered the transfer of all funds belonging to government parastals from the commercial bank vaults or accounts to the Central Bank. These developments put the banks in a very tight spot. There was stiff competition in Akwa Ibom State alone, there are the practices of these banks of offer services to their customer in one way or another. This means that for each of these banks to gain a fair share of the market, it has to properly engage itself in some kind of effective marketing practices through the application of these practices. The bank constantly informs and reminds its customer about itself in order to build as friendly as image as possible.
The last decade witnessed a dramatic proliferation in the number of banks in Nigeria. During the same period, the demand for banking services experienced an explosion that posed a challenge to the banking industry. Apart from the increased number of banks, other types of financial houses such as saving and loans associations, multiplied. Competition among these banks for demand and time deposit, and for the customers assets generally intensified. It is developments such as these that have prompted this study whose major purpose is to access the extent to which banks in Akwa Ibom State of Nigeria have responded to this challenge by engage in marketing their banking services to customers.
OBJECTIVES OF THE STUDY
With the above stated problem in mind the study is aimed at.
To find out the extent to which commercial banks have gone in carrying out marketing practices
To understand the different practices engaged by commercial banks in the Akwa Ibom State.
To determine types of effective marketing practices by some banks on the practices by some banks on the references and awareness level of customers.
To make recommendations for effective marketing practices in banks.
SIGNIFICANCE OF THE STUDY
The Nigerian economy today has so many commercial banks. The competition amongst these banks are becoming keener by the day. Since the draw their customers broadly from the same market. Additionally, the current austere times in the country would mean that customers, if they do so, all would most likely deal with the banks they see as maximizing their satisfaction.
This satisfaction is out not only in form of high interest yield, but also in such things as prestige gained and how much, the customer knows of his bank etc. These and more could be advised only through proper marketing activities with just a little more effort trying to better its marketing strategies, a bank may be able to gain one or two customers it is hoped that through this study, insight could be gained as a to what type of marketing practice. Commercial bank engage in order to gain and maintain a few share of the market. This would help to establish, maintain and improve communication between a bank and its public. When its public is aware and understands the bank policy, aspiration etc. A more efficient and effective banking system can be hope for with room still for further improvements.
SCOPE/ORGANIZATION OF THE STUDY
This study is organize in sections, one deals with the background of the study, the introduction, the objective of the study, significance of the study as well as the scope/organization of study.
Section two, take a looks at the literature review this includes text citation that is, the text books we get our information from and the conceptual classification. In section three is qualitative analysis of phenomenon under study while section four finally gives out the summary of the study conclusion and recommendation.