Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vii
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Hypotheses Formulation 4
1.5 Significance 4
1.6 Scope of the Study 5
1.7 Limitation of the Study 5
1.8 Definition of Terms 5
References 7
CHAPTER TWO: Literature Review 8
2.1 Introduction 8
2.2 History of the Banking Industry in Nigeria 8
2.3 The Banking Industry in Nigeria: Review of Major Contextual
and Theoretical Underpinning 9
2.4 Understanding the Application of Marketing Principles in the
Banking Industry 14
2.5 Strategic Marketing Objectives of Banks 20
2.6 Strategic Marketing Planning (SMP) 21
2.7 Services of Banks 22
2.8 Marketing in Nigerian Banks 25
2.9 Marketing Concept in the Banking Industry 28
2.10 Tips for Front – Line Officers on How to Relate with the Customers
and Other Key Publics at the Branch Level 30
References 33
3.0 Research Methodology 37
3.1 Introduction 37
3.2 Research Design 37
3.3 Population of the study 37
3.4 Sampling and Sampling Techniques 38
3.5 Data Collection/Gathering Instruments 38
3.6 Reliability/validity of Research Instrument 39
3.7 Methods of Data Analysis 39
3.8 Methods of Data Analysis 40
References 41
4.0 Data Presentation and Analysis 42
4.1 Introduction 42
4.2 Allocation of Questionnaire ad rate of returns 42
4.3 Analysis of Bio-Data of Respondents
4.4 Analysis of Relevant Questions 43
4.5 Testing of Hypotheses 49
5.0 Summary of Major Findings, Conclusion and Recommendations 58
5.1 Summary of Major Findings 58
5.2 Conclusion 58
5.3 Recommendation 59
5.4 Suggestions for Further Research 60
Bibliography 61
Appendix 1 64
Appendix 11 65



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.

A few years ago, bank did not see the need for providing adequate service and encouraging patronage. It is a common knowledge that the Nigerian banking system has over the nineteen-decade and part of 20thcentury been experiencing a crisis of confidence a situation in which customers doubt the integrity of the banking system in delivering the financial intermediation services under such circumstances has strategic marketing any role towards the restoration of mutual confidence between the operators in the banking system and the customer public and shareholder publics.

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 millennium. 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.


Banks are custodians of the customers’ wealth. They provide financial service; they provide peace of mind to the customer. As a result of this, banks marketing plans should ensure that the customer is well informed of its plans, problems and its solution to such problems. Marketing activities especially strategic marketing, therefore should almost be the main pre-occupation of any bank. The main problems confronting some banks were as follows:

  1. The implementation of strategic marketing strategies.
  2. The choice of selecting the best strategic marketing strategies by banks.
  3. The adoption of the best strategic marketing principles.

The questions then are:

  1. Do banks use more of strategic marketing strategies in achieving financial intermediation objectives?
  2. Which of the strategic marketing strategies do banks employ most in building sustaining customers confidence in the banking industry?
  3. Has the banks adoption of strategic marketing principles tools increased customer patronage?
  4. Does adoption of strategic marketing principles help in building a favourable corporate image of banks?


The objectives of the study include:

  1. To determine whether the use of strategic marketing strategies enable banks to achieve financial intermediation objective.
  2. To find out the strategic marketing tools banks use most in building/sustaining customer confidence in the banking industry.
  3. To, also ascertain whether banks adoption of strategic marketing tools has increased customer patronage.
  4. And, to find and if the adoption of strategic marketing principles builds a favourable corporate image of banks.
  5. And, finally to make appropriate recommendation basedon our results.


The following have been put forward for testing;

  1. H0: The use of strategic marketing strategies does not enable banks achieve their financial intermediation.

H1: The use of strategic marketing strategies enables banks achieve their Financial intermediation objectives.

  1. H0:Banksthat adopt marketing public relative tools are not likely to build/sustain customer’s confidence in the banking industry.

H1: Banks who adopt marketing public relative tools in their operation are likely to build/sustain customers confidence in the banking industry.

  1. H0:Banks adoption of strategic marketing principles does not increase customer’s patronage.

H1: Banks adoptions of strategic marketing principles increase customers’ patronage.


The era of set down and wait for customer or arm chair kind of banking has been over taken by challenges in the industry. A bank with the state-of-the-art technologies and service may still not make such heavy profits if it does not engage in proper marketing of its products cum services.

Therefore, the study is significant as it will benefit banks, customers and other financial publics in the following ways: Banks through the findings of the study may be able to build more confidence on customers. They also know more ways of performing financial intermediation roles or objective. Customers will also benefit through the findings of the study as banks will now reposition themselves as reliable and responsive organization to do business with. The other financial publics will be able to fish out indices for the evaluation of the banks performances or corporate failures.


The scope of the study in within the confines of strategic marketing and its effects in the banking industry. Three banks are used as case study namely All States Trust Bank Limited (ASTB). Afri Bank Plc and Citizens International Banks Plc. They are sampled from Port-Harcourt, Rivers State.


This study has been limited by a numbered factor which is as follows:-

Time:  Timeis a hunting factor as the students are given limited

period to complete and submit his project Finance: It is another major problem, as the researcher has to travel to various places in search of materials it sudden rise in the transport fare in the country.

Problem of Data Collection: Some people find it difficult to release one data needed by the researcher, although some of them co­operated to a great extent.


In order to make work a bit clearer, certain terms will be defined:

  1. BANK: Any person who carries on banking business and includes a commercial bank, a mortgage bank acceptance house a discount house, a discount house and other financial institutions.
  2. MARKETING: The sensing and serving of customers needs through an exchange relationship aimed at creating value in from of profit; and satisfaction to the consumers.
  3. STRATEGY: This is a technique developed to gain advantage over the competitor; it is a tactical plan for carrying out formulated policies, to achieve a set objective.
  4. PROMOTIONAL ACTIVITIES: These are various promotional techniques used by marketers. They are called promo tools or elements of the promotion mix and include advertising, person selling, ales promotion and public relations.


Anyafo, A.M.O (1999), Nigerian Financial Marketing and Institutions: An Anatomical Analysis of Issues in Money and Banking in the Nigeria Financial System, Enugu: B & F Publications, UNEC.

Burden, P.A. (1996), General Banking,New York: Mc Milliam Inc.

Cole, Lucky (1997), Banks and Public,Doubling: Thomas Hill Inc.

Johnson, Mc Potter (1990), Managing Relationship,Bristo: Site Inc.

Vincent, O.O. (1980), The Banking Industry In the 1980s, Management in Nigeria: Journal of Nim, Vol, No. 9 September.