STUDY OF MARKETING PRACTICES OF COMMERCIAL BANKS
BACKGROUND OF THE STUDY
Banks have little understanding or care for marketing a year ago. They had no idea how to sell checking accounts, savings accounts, loans, or safe deposit boxes.
The bank building was designed in the style of a Greek temple in order to impress the public with the importance and stability of the banker. The atmosphere was solemn, and the teller rarely smiled. This was the bank's stance prior to the advent of marketing.
Marketing entered banks not in the form of a marketing “concept,” but rather as an advertising and promotion notion. Banks discovered that recruiting people is easy; turning them into loyal customers is difficult.
These banks learned how to create programmes that would satisfy their clients. Bankers have learned to smile. When bankers began to segment their market and design new products for each of these target segments, they discovered a new competitive tool.
It was then required to inform customers about these activities. Their advantages and additional charges. Commercial banks' marketing strategies are such that they must develop an image of respectability, competency, and dependability by satisfying their customers.
Since (1979), when the Nigerian Federal Government ordered the transfer of all monies belonging to government parastatals from commercial bank vaults or accounts to the Central Bank, the challenges have grown stronger and more difficult. These events have put the banks in a difficult position.
There was fierce competition in Akwa Ibom State alone, and these banks' techniques of offering services to their customers in one manner or another. This indicates that in order for each of these banks to get a fair portion of the market,
they must properly engage in some form of effective marketing techniques by implementing these practices. In order to maintain a nice image, the bank continuously informs and reminds its customers about itself.
The number of banks in Nigeria has increased dramatically during the previous decade. During the same time period, demand for financial services skyrocketed, posing a challenge to the banking industry. Aside from the rising number of banks, other forms of financial institutions, such as savings and loans associations, grew in number.
Competition among these banks for demand and time deposits, as well as for customers' assets, has increased. Such developments have motivated this study,
the primary goal of which is to determine the extent to which banks in Akwa Ibom State, Nigeria, have responded to this dilemma by promoting their banking services to clients.
OBJECTIVES OF THE STUDY
The study is focused at the aforementioned problem.
To determine the level to which commercial banks have gone in their marketing practices.
To comprehend the various techniques employed by commercial banks in Akwa Ibom State.
To examine the types of effective marketing techniques used by some banks on client references and awareness levels.
To give recommendations for effective banking marketing techniques.
significance OF THE STUDY
There are numerous commercial banks in Nigeria nowadays. The competition among these institutions is increasing by the day. Because they both serve customers from the same market.
Furthermore, given the country's current austerity measures, customers would most likely interact with the institutions that they believe will maximise their satisfaction.
This happiness manifests itself not only in terms of high interest yield, but also in terms of reputation garnered and how much the customer knows about his bank, and so on.
These and other considerations may only be suggested by proper marketing activities. With a little more effort attempting to improve its marketing techniques, a bank may be able to win one or two customers.
It is hoped that through this study, information as to what type of marketing practice might be gained. Commercial banks participate in order to gain and keep a small piece of the market.
This would aid in the establishment, maintenance, and improvement of communication between a bank and its customers. A more efficient and effective banking system can be hoped for when its public is aware of and understands the bank's policy, aspirations, and so on.
SCOPE AND ORGANISATION OF THE STUDY
This study is divided into sections, the first of which deals with the study's background, the introduction, the study's purpose, the significance of the study, and the scope/organization of the investigation.
Section two looks at the literature review, which comprises text citations (the books from which we receive our knowledge) and conceptual classification. Section three provides a qualitative analysis of the phenomenon under study, while Section four provides a summary of the study's conclusion and recommendations.