ROLE OF MARKETING IN THE CONSOLIDATED BANKING SECTOR
INTRODUCTION TO CHAPTER ONE
1.1 Brief Background of the study
Marketing is a social phenomenon that serves as a significant economic stimulus for the majority of the world's societies. Marketing practise allows for increased production and provides society with the higher level of living that is essential for a dynamic society.
Every organisation, whether product or service oriented, requires a marketing strategy for its products or services to be available to existing and future customers in order to produce more revenue, profit, and stay in business.
Marketing is a relatively new profession in the Nigerian banking business. However, the need for bank marketing stems from fierce rivalry, not just from other banks, but also from their financial institutions.
It entails the practise in the banking' sectors has brought about significant improvements to our economy's banking sector in terms of customer happiness, increased revenue production, profitability, and efficient management.
The term dynamic refers to a state of constant change on a daily basis. As a result, marketers are confronted with a continually changing environment and the accompanying challenges of client needs, demanding the creation of new, beautiful concepts and services to satisfy these challenges.
As a result, in order for banks to remain viable, they are always developing new goods and services. A bank's performance is largely determined by its ability to meet the financial needs of its customers. Marketing actions that are successful are the consequence of management information and common sense.
Prosperous marketing firms or banks are those that have a positive outlook on their business environment, therefore building an organisation capable of identifying profitable prospects, seeing potentials, and generating new products in the service industry.
Its product cannot be felt or touched. Before making a purchase, it should be smelt, heard, tasted, and viewed. These characteristics identify work hard because it comprises intangibility,
imperishability, and the lack of ownership or title transfer. Having a broad knowledge base allows bank employees to excel in the variety of services they provide to their numerous consumers.
The function of marketing in the banking business ntai1s the use of marketing mix tactics known as four pieces, namely, product (services), pricing, place, and promotion, as well as other strategies for promoting bank services to customers.
1.2 Statement of the Problems
Today, producers and manufacturers in Nigeria use numerous media to promote their goods and services in order to communicate ideas and information to groups of people in order to modify or reinforce a behaviour.
Opinions differ on whether amarketing has a significant impact on consumer behaviour because buyers are informed and educated about a company's offering, aiding them in making an informed selection.
While another group believes that marketing is exaggerated and valuable, the social value of marketing is undervalued. This study aims to provide solutions to these issues as well as beneficial suggestions for improvement. Marketing efficacy is extremely tough to quantify.
One issue is our inability to determine the outcome of any given marketing or effort. Because of the nature of the marketing mix, all parts, including marketing, are so interwoven that measuring just one alone is impossible. Many factors other than marketing influence sales success.
Marketing consists of simply two components: what is said and how it is said. There is a shortage of qualified marketing firms to handle marketing effectively and efficiently as required by clients.
Some organisations do not recognise the value of marketing and have pushed it to the background by not allocating any budgetary resources to it. In Nigeria, marketing exaggerates or misrepresents the capabilities of items or services. Russell T. Rusell J.T (Russel T. Rusell J.T, 2006)
Finally, another issue with certain firm marketing is selecting a medium that will appeal to the majority of the audience. Companies spend the majority of their marketing dollars on television and radio. However, this does not sit well with other segments of society's consumers, particularly rural inhabitants, whose preferred medium is radio.
1.3 Objectives of The Study
The primary goal of this research is to investigate the function of marketing in the banking business in Nigeria in the post-consolidation era. Other goals include:
i. To determine the role of marketing in the banking industry
ii. To investigate the impact of marketing on service promotion.
iii. To draw attention to the issue of marketing in the banking sector
iv. To investigate the roles of marketing in the banking industry
v. To provide useful recommendations for the identified problems
1.4 Significance of the Research
The significance of this research (Research Work) is to assist the banking sector in embarking on marketing in order to assist them in developing a well-rooted bank through the enhancement of services.
It is also very important to other banks since, at the end of the study, they will attentively refer to this work and take the necessary steps to meet up with an efficient and effective marketing information system that will increase their sales levels.
1.5 Research Hypothesis
Ho: Marketing is very crucial in the banking industry.
H1: Marketing is unimportant in the banking industry.
1.6 Scope of the Research
The research is being carried out at Union Bank of Nigeria Plc. This project is focused with the role of marketing information systems and their impact on the organisation.
1.7 Limitations of The Study
Inadequate funding during the study compounded the limitation during field work, preventing the researcher from expanding this project work to additional companies.
As a result, the study only covers Ideal Flour Mills Ltd, Kaduna, i.e. the geographical, social, economic, and cultural makeup of the area, forms of marketing information, and methods of gathering information to assist marketing managers in their dealings.
1.8 HISTORICAL BACKGROUND OF GUARANTY TRUST BANK
Guaranty Trust Bank Plc was established in July 1990 as a Private Limited Liability Company owned entirely by Nigerians. The bank received its commercial banking licence in August 1990 and began operations in February 1991.
Guaranty Trust Bank It became a publicly traded corporation in September 1996, obtaining the prestigious president's prize in its first year on the stock exchange, as well as again in 2000 and 2003.
Guaranty Trust Bank issued a public offering in 2001.These were oversubscribed by 1.17%, proving the bank's liability as a profitable investment.
The bank has long been devoted to returning funds to shareholders, and it is one of the few organisations in Nigeria that pays both interim and final dividends each fiscal year.
In February 2002, Guaranty Trust Bank Plc got a universal banking licence. The bank's reputation as an exceptional financial services provider, as well as its financial capacity to satisfy obligations as they come due, have resulted in a constant increase in its risk assets rating to triple A (AAA), the highest rating on the Augusto & Co. limited rating scale.
They received the corporate issues table award (Renter- SBA research) for 2001/2002, the 2001 dividend yield award in the Nigerian stock market's market excellence categories (pearl award), and the 2001 sectional leadership award (banking sector) of the Nigerian stock market (pearl award).
In 2003, the bank was nominated for and won the consumer sensitivity award in the banking sector for excellence in customer service. Guaranty Trust Bank Plc is the only Nigerian-owned company on which Harvard University has undertaken three case studies. Cornfield University in the United Kingdom is also putting together a brand case study on the bank.
The bank is now recognised as one of Nigeria's most competent and profitable banks. From a start-up capital of $25 million in 1991, the bank's share holder funds have grown to more than $11.7 billion, with an asset base of more than $150 billion. The total annual income generated exceeds #18 billion.
client service is at the very top of their operation because they think that the client is king and that in order to keep the customer delighted, they must always exceed their expectations.
Customers can sense the kind of service they will receive from the moment they step into one of their branches until the transaction is completed. A service that consistently exceeded their expectations.
Furthermore, Guaranty Trust Bank has a distinction.
Guaranty Trust Bank has a capital basis of 34 billion, which is significantly greater than the Central Bank of Nigeria's (CBN) minimum capital requirement of 25 billion. Its robust posture and sound financial foundation are undeniable.
In addition, the bank is one of the seven settlement banks designated by the central bank in December 2003.
GTB does not stop in Nigeria; it also travels to other African countries.
That is, Guaranty Trust Bank Plc will soon begin operations in Accra.
Ghana as a result of permissions received by the bank from both central banks
The bank already has two offshore subsidiaries in Nigeria and Ghana.
Guaranty Trust Bank (Gambia) Limited and Guaranty Trust Bank (Sierra Leone) Limited.
GTBANK also wins bank of the year award as a result of Guaranty Trust Bank Plc's outstanding performance in the financial services industry in the previous year, the bank clinched the “bank of the year” award at the this day 0l anniversary excellent and governance award held on Sunday February 7th 2005 at the expo hail of the Eko hotel and suites in Lagos.
The bank now operates over 50 branches, with another 30 set to open by December 2005.
GTBANK's total assets for the fiscal year ended February 28, 2005 were around 2.2 billion, compared to the predicted number of $153 billion for the fiscal year ending February 2006.
Profit before tax for the fiscal quarter under review was #7 billion, compared to a projected PBT of #5.9 billion for the fiscal year ending February 2006.
1.9 Definitions for Related Terms
The researcher went to great lengths to define several rare phrases used in this study; this is done so that the project work can have a thorough understanding of marketing information systems even if they are not marketers.
Some of the terms utilised in the study are as follows:
a) Marketing: Marketing is a set of actions that facilitates the exchange of “economic goods and services,” with the ultimate goal of meeting human wants.
The marketing process entails the preparation and dissemination of ideas, goods, and services in order to produce exchanges that meet the organization's objectives.
b) Information: Information is learned information with meaning. In most circumstances, information evoked some sort of reaction or response on the part of the recipient,
i.e. information affects behaviour (observable behaviour) i.e. movement of speech or change in attitude as a result of the information.
c) Marketing Environment: This is the environment in which marketing operations are carried out, and it is further subdivided into external and internal to the firm environments. The form cannot control the external forces, but it can govern the internal forces.
d) Marketing Intelligence: This is a set of techniques and sources that executives utilise to get daily information about relevant developments in the marketing environment.
e) Variables: These are traits that a member of the population possesses. These qualities may only be used to control how you respond to marketing situations.
f) Controllable Variables: These are variables that marketers can manipulate in order to solve the organization's marketing difficulties. These controlled variables could include pricing, product, distribution location, and promotion.
g) Data: These are bits and prices of fast that are typically in the shape of recorded observation. Data are meaningless unless they are processed or examined to create information, i.e. meaningful knowledge.
h) Primary Data: These are data that are collected by the researcher for the first time, usually for the goal of answering the study topic. Data is typically gathered through oral interviews, questionnaires, and other means.
i) Secondary Data: These are data obtained for the goal of answering another study topic or data collected for a purpose other than the current research being conducted.
j) Marketing Research: This is the objective and systematic gathering, recording, analysing, interpreting, and reporting of information about existing or potential markets,
marketing strategies and tactics, and the interaction between markets, marketing methods, and current or potential products or services.
k) Uncontrollable Variables: These are variables that marketers cannot normally control and are thus categorised as environmental constraints:
They include competition, the rate of technological advancement, the state of the economy, consumers, suppliers, and middlemen, the physical environment, including natural resources, and the greater society with its culture.