APPLICATION OF THE MARKETING CONCEPT IN THE BANKING SERVICE (A CASE STUDY OF COMMERCIAL BANKS IN OWERRI MUNICIPAL OWERRI IMO STATE)
Much have been said and written about the marketing concept in banking services. Marketing is very important in every organization, even in the banking industry, customer satisfaction is said to be the loner stone of the marketing concept which is a business philosophy that does not change. It is at this level that the researcher want to review related literature in this area of study.
Nwebuzo Isaac C. 91985) carried out a research. He made use of 200 customers. These customers were made up of Businessmen, Civil servant and students. From the sample, the researcher found out that the complaint made by customers were not on the services rendered by banks, but the location of the bank and the fact that they did not have enough packing space, good sitting arrangement, well ventilated halls and opinion boxes. He concluded that the nonchalant attitude of bank officers toward customer has made them to consider location and convinence instead of services. He also found out that banks were yet to start advertising. Maybe if the researcher had used a larger sample and not selected the sample, that is if they were not only made up of Businessmen, civil servant and student, his finding would have been different, this would further influenced his conclusions.
In 1985, Ezema Raymond C. in a research study on “problem and prospects of marketing of Banking services in Nsukka senatorial zone, Enugu state” his finding were that customers change bank because of poor services and poor attitude of bank staff, location, inadequate banks and the non-existence of the marketing department. From these finding, the researcher concluded that bank offered a banking services to their customers, they were understaffed and were managed by untrained personnel. This conclusion was base on the fact that the banks were in a senatorial zone and the researcher got his findings from just five (5) banks which is not a good representation. The researcher selected his sample of 320 customers from these five banks. There was no survey of the bank officials. The research was baised because he drew up his conclusion from just the finding from the customers without bothering to sample the bank officials and get their own opinion about the while research.
A research study on the marketing concept in the marketing of banks services (A case study of the commercial banks in Enugu Urban) by Aja E.U,, Agunyega F.O., anike P.N., Anyanwu G.E., and Babatuade S.I. in 1987 found out that most customers open accounts with banks because it is close to their offices or homes, they also found out that customers spent up to 1 hour to 2 hours in the bank transacting their various business, the relationship between customers and staff was not cordial. Based on these finding the researchers concluded that the marketing concept was not practice in banks. This conclusion was based on the data collected from a sample of 100 bank officials and 250 customers of the banks. The sample is small out of the total customers, as such the information got from the sample may not be a good representation. This could lead to wrong conclusion.
The place of marketing in Banking (A case on African continental bank limited) Okoroji Paulinus N. 1986 was on just one bank in different locations. His finding revealed that customers of the bank opened accounts with the bank because of its convenience to their home and business premises rather than quick and efficient services of banks, and also because of the attitude of the bank staff. The finding also revealed the promotional tool used by the band and also the degree of relationship between the bank staff and their customers. These finding made the researcher conclude that the attitude of bank staff was not encouraging, there was inadequate infrastruture and the customers waited for quite some time before they could cash their cheques, withdraw their money. The researcher drew his conclusion from the information obtained after sampling a total number of 100 customers and 25 bank officials from the bank surveyed. The researcher should not conclude that banks do not practices the marketing concept in the rendition of their services. This is so because, only one bank was surveyed and the finding cannot be generalized and cannot be applied to all banks.
Iswe U.D, in 1988, conducted a research in marketing of Banking services in Enugu metropolis Anambra state. Problem and prospects of commercial banks selected a population sample of 100 bank officials and 250 customers. He sampled 10 different banks in Enugu and found out that customers spent about 11/2 – 2 hours in transacting their business, long queues occurred frequently in banks, that the relationship between staff and customers was cordial. The research them concluded that the marketing concept in Bank services was ineffective and inefficient in most banks sampled. It should be noted that this conclusion made by the researcher cannot be applicable to all banks. Since there were limitation to the study. Also may be if the customer were large and more banks were surveyed, the information could be different from the one he got.
Marketing concept as applied in commercial banks in Kaduna (Peters susan A 1989) found that most banks are now conscious of the competition and as such, they are concerned with the quality of services rendered to their customers. The researcher used a sample of 1000 customer and 250 bank official. Also, it was found out that the bank surveyed are planning to open more branches so as to ease the numbers of customers that come into one branch offices. With this, the staff could be able to rander efficient and quicker services. Fro the conclusion drawn by the researcher, most bank are now conscious that they are in the buyers market and as such, the customer is king and all efforts are directed at satisfying him.
Phillip Kotler one of the world’s leading authority in marketing define marketing concept as marketing concept holds that key to achieving organizational goals which consists in determining the needs and wants of target markets and delivering the desired faction more effectively and efficiently than competition. The marketing concepts start from the firm target customer needs and wants that is determining what the customer want and developing product to serve these needs at a profit, and by so doing maximizing customer satisfaction.
Drucker Peter who is also a world leading writer in the field of management makes the importance of the customer and marketing concept clear when He said that “it is the customer alone whose willingness to pay for a product or services converts economic resources into wealth, things into Goods, the truth of Peter Ducker’s statement cannot be over emphasized infect there is evidence to that, the maxim which says that the customer is always right has its origin in the earliest writing in economic and social theory. What the customer thinks he is bringing, what he consider as value determines what a business is, what is produce and whether it will sales and prosper.
Even in the year 1990 Adam Smith, a know writer in economics recognized the marketing concept when He wrote that consumption is the sole and only purpose of all production and the interest of the producer ought to be attended to only so for as it may be necessary for promoting that of the consumer. If the customer needs are know and the right product are produce to satisfy their needs, there would be a constant consumption partern which is also a help to production.
Stanton W.J. says that the marketing concepts is a philosophy of business which state that the customer want i.e satisfaction, is the economic and social justification of a company existence. Consequently, all company activities in production, engineering and finance, as well as in marketing must be devoted first to determining what the customer wants are and then satisfying those wants while still making a reasonable profit. Customer satisfaction can be seen as a very positive reaction by business entities.
Balogun S.A Once said that bank must have to change their present orientation about themselves to mordern times. They should desist from seeing themselves as lenders of money. They must realize that they are in financial business as opposed to their present misconception about themselves. He also stated that there is the need to make use of professional marketing men in top banking management post apart from the marketing division. They can incorporate some of the professional marketers into the membership of their board of Directors train some in the preliminary banking procedures so that they can be appointed as branch manager. Preference could be given to a non marketing man that had once work in the bank as a clerical officer or in order junior or middle posts. All these could depend on the training organized by the bank and this should consider marketing ideas in the banking profession.
In an article written by Adesunloye (1989) Role of marketing in Banking said the success of a bank depends on its abilities to satisfy customers financial needs and the effective practice of marketing in the banking environment, is becoming recognized as a vital objective. The fact that a gradual transition is taking place from public relation label from bank officer titles in the banking industry, manifest itself on the vital objectives.
The bank should be concerned with the satisfaction of customers since the customers are the life blood of an organization. If customer are attended to and treated well with respect, they will always come back to patronize you.
If customer are attended to without delay the loyalty of customers to the bank will still hold.
In 1988, Nwokike in a research study on “the place of marketing in Banking services” (A case study of united bank for Africa Plc). His finding revealed that customers of the banks open account with the bank because of its convenience to their home and business premises rather than quick and efficient services of banks, and also because of the attitude of the bank staff. The finding also revealed the promotional tools used by the bank and also the degree of relationship between the bank staff and their customers. These finding made the researcher conclude that the attitude of bank staff was not encouraging, there was inadequate infrastruce and customer waited for quite sometime before they could cash their cheques withdraw their money. The researcher draw his conclusion from the information obtained after sampling a total number of 100 customer and 25 bank official from the bank surveyed. The researcher should not conclude that bank do not practice the marketing concept in the rendition of their services. This is so because, only one bank was surveyed and finding cannot be generalized and cannot be applied to all banks in operations.
Marketing concepts as applied in commercial banks in Delta state (Isaac 1990) found that most banks are now conscious of the competition and as such they are concerned with the quality of service rendered to their customer. The researcher used a sample of 500 customers and 150 bank officials. Also, it was found out that the banks surveyed are opening more branches. With this, the staff would be able to render efficient and quick services. From the conclusion drawn by the researcher, most are now conscious that they are in the buyers market and as such, the customer is king and all efforts are directed at satisfying him.
G.B. Griles in his book marketing said that marketing involve an exchange and a mutually beneficial exchange. Organization exist to achieve objectives, and a prime objective of the private sector of business must be profit. It is however essential that the profit be judge by customer, government, organized labour and the public at large as a fair return achieved by fair means. Customer orientation should not be allowed to degenerate into what appears to outside interests to be outside manipulation and exploritation.
In 1980 Mclver and Nayloy said in their book “Marketing Financial services” that the tools of marketing however elaborate and scientific are in the end no more than levers, mert and even dull artifacts when not in use but capable of producing dynamic results when they have a point where they can be fixed and agreed direction in which the leverage should be exerted.
R.C Escone in the article published by population bank monthly nowlether, said primarily, itte costier are more closely concerned with this problem of change in altitude. Politeness should therefore be their watchword. Every customer likes to be regarded as somebody specially and important. It is the customer that should be addressed as girl modam and not the bank officials. When the customer realizes that the bank has his /her interest at heart, his reaction is always that of continued patronage. He does not neglect but does a great deal of public relation job for the bank thereby introduce new customers.
In 1983 Mcidian in his article titled “the role of marketing management in Banking” observed that marketing is becoming increasing necessary in banking activities due to intensified rivelry from other institutions and changing standard of hiving. According to Mcidian these changes are felt slowly and must be anticipated as early as possible to cope with the challenges of ever changing market condition. Marketing job is to conceive the formulate strategies and plans to reach and effects the market that have been selected for exploitation. Also according to median, the marketing approach in banking reference basically to four steps.
- Research to determine customers and prospects financial requirements
- design new services to innovate old ones according to the finding.
- marketing services to the customer for whom they were researched and designed (and this includes pricing, promotion and distribution) at a profit.
- in doing so, satisfy the customers financial needs.
The author present the marketing approach to banking service goes in a circular for i.e
- Identify the customer needs and wants.
- Develop appropriate banking services to meet customers needs
- Pricing: Determines the price for services developed
- Advertise and promote the services to existing and potential customer of the financial services
- Distribution: set up suitable distribution channels and bank branches
- For casting and research future financial market needs
Shankey C.S the chairman Board of Directors of Nigeria international Bank, once said during an official opening that our philosophy state that the only way we can make positive contribution to the development of financial services in Nigeria is to ensure that the quality of services must be that of excellence delivered with speed and creativity he also said that the standard of professional in banking services in Nigeria is very poor and deplorable but that his bank is fully equipped to provide customer banking services of an international standard and would also contribute positively to the economic growth.
