EFFECTIVENESS OF STRATEGIC MARKETING IN NIGERIAN BANKS

CHAPTER ONE

BACKGROUND OF THE STUDY

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 20th century 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.

STATEMENT OF THE PROBLEM

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:

The implementation of strategic marketing strategies.

The choice of selecting the best strategic marketing strategies by

banks

The adoption of the best strategic marketing principles.

The questions then are:

Do banks use more of strategic marketing strategies in achieving financial intermediation objectives?

Which of the strategic marketing strategies do banks employ most in building sustaining customers confidence in the banking industry?

Has the banks adoption of strategic marketing principles tools increased customer patronage?

Does adoption of strategic marketing principles help in building a favourable corporate image of banks?

OBJECTIVES OF THE STUDY

The objectives of the study include:

To determine whether the use of strategic marketing strategies enable banks to achieve financial intermediation objective.

To find out the strategic marketing tools banks use most in

building/sustaining customer confidence in the banking industry.

To, also ascertain whether banks adoption of strategic marketing tools has increased customer patronage.

And, to find and if the adoption of strategic marketing principles builds a favourable corporate image of banks.

And, finally to make appropriate recommendation based on

our results.