SOLD BY: MARKETING COMMUNICATION AS A TOOL FOR ORGANIZATION EFFICIENCY
(A CASE STUDY OF CENTRAL BANK OF NIGERIA)
ABSTRACT
The research work was carried out critically to know the role of marketing communication as a
tool for organization efficiency and to develop the most desirable form
of marketing communication link within an organization. The research
work comprise of five chapters. Chapter one consist of historical
background of the study, statement of the problem, statement of the
hypothesis, objective of the study, significance of the study, scope and
limitation of the study and definition of terms. Chapter two is the
literature review including concept of communication, purpose of
communication, element of marketing communication, channel of
commutation, principles of effective communication, impact of marketing
communication variables, deciding on the marketing mix and developing
effective communication. Chapter three deals with the research design
and methodology involving source of data collection, population size,
research instrument, questionnaire design and method of data analysis.
Chapter four reviews the data presentation and analysis and also test of
hypothesis. Finally, the chapter five which include the summary,
conclusion and recommendation.
CHAPTER ONE
1.0 INTRODUCTION
Modern marketing calls for developing a
good product, pricing it attractively and making it accessible.
Companies must also communicate with present and potential stakeholders
and the general public. Every company is inevitably cast into the role
of communicator and promoter. For most companies, the question is not
whether to communication but rather what to say, to whom and how often.
Today, there is a new view of communication as an interactive dialogue between the company and its customers
that takes place during the pre-selling, selling, consuming and
post-consuming stages. Companies must ask not only “how can we reach our
customers’? But also “how can our customers reach us’?
With the aid of technological
breakthrough, people can communicate through traditional media
(newspapers, magazines, radio, telephone, television, bill board) as
well as through (computers, fax machines, cellular phones, pagers and
other wireless appliance) by decreasing communication costs. The new
technologies have encouraged more companies to move from mass
communication to more targeted communication and one-dialogue.
However, company communication goes
beyond advertising, sales promotion, personal selling, public relations
and direct marketing. The products styling and price, the shape and
colour of the package, the sales person manner and dress, the store
decor, the company’s stationary all communicate something to buyers.
The theory of marketing communication is
highly complex as it embraces not only the ideas of communication which
involves the mechanics of information available that will be understood
by the person but also the question to place employees in a situation
where unfavourable reaction can be minimized. Most importantly,
activities of various department of the Central Bank of Nigeria (C.B.N)
which carry out specific duties must be well co-ordinated in order to
achieve the organization goals.
The need for marketing communication in
Central Bank of Nigeria (C.B.N) therefore cannot be over emphasized.
Marketing communication in an organization involve flow or processing of
information or message within and outside the organization. in the
study, the researcher will try to examine the need for marketing
communication can enhance or affect the organization.
1.1 H ISTORICAL BACKGROUND OF THE STUDY
The establishment of the Central Sank of
Nigeria (C.S.N) came as a result of the persistent efforts of Nigeria
nationalist. Apart from the struggle for political independence, the
nationalists equally wanted a solid economic base for the new nation.
Prior to the establishment of Central Bank of Nigeria (C.S.N), the West
Africa Currency Board (W.A.C.B), which was established by the colonial
government in 1912, had the responsibility of issuing legal tender to
currency in Africa. It was also charged with exchange of the currency
with existing currencies and investment of its reserves. There was a
fixed parity for the local currency with the British pounds while the
currency had 100% sterling coverage,
However, because of the automatic
linkage of the West Africa currency board with the British system it
could not engage in monetary management besides the currency. As a
result of these deficiencies, the need for a Central Bank was obvious,
but the colonial government of Nigeria was unique for such a bank. The
outcry of Nigerian nationalist for the Central Bank was triggered off by
unprecedented banking failure of the early 1950s. As a result of the
rate of banking failure in Nigeria, the colonial government rested the
control of banking on the financial secretary because of their view that
will be ill-equipped for central bank. This was unacceptable to the
nationalist. They insisted that a Central Bank was needed at that point
to perform the role of banking control and other traditional central
bank function. In a bid to resolve these two opposing views, there
commissions were set-up to investigate the Nigeria Banking.
The first commission was that of J.L
Fisher, a finance expiratory Bank of England. He was appointed by the
colonial administration in 1953, inquired into the desirability and
practicability of establishing the Central Bank of Nigeria as an
instrument for promoting the economic development of the country he
based his study on “Orthodox” banking principles, reported that it was
not feasible to establish Central Bank on the ground that the money and
capital market were under-developed and that there will be no local man
power to manage such situation. He ended his report with strong
disapproval to the establishment of Central Bank.
The next report was that of a team
report from the World bank who visited Nigeria in 1953. The World Bank
team submitted their report in 1955 while agreeing with Fisher’s view;
they however, recommended the creation of a state Bank of Nigeria as
early as possible to take over the banking control functions of the
financial secretary which serves as fore-runner to the establishment of
Central Bank.
Another commission was achieved in 1957
when the Federal Government engaged the services of another financial
export of the Bank of England, Mr. J.B Loynes to recommend the
establishment of central bank of Nigeria and other associated issues.
Surely Mr. Loynes would have advised against the establishment of
Central Bank but he did not have the opinion that Fisher’s, had in
assignment. The agreed with Fisher in many aspects, but could not do
otherwise since he has been asked to recommend the establishment of a
Central Bank. It was the recommendation of Mr. J.B Loynes that led to
the establishment of a Central Bank in Nigeria by the Central Bank of
Nigeria ordinance of 19th March, 1988. It commenced business on 1st July 1957 with an initial capital of N3 million.
GOVERNORS OF CENTRAL BANK OF NIGERIA SINCE INDEPENDENCE
| GOVERNORS | PREVIOUS POSITION | TERM START | TERM END |
| Roy Pentelow Fenton | 24 July, 1958 | 24 July 1963 | |
| Aliyu Mai-Bornu | Deputy governor, CBN | 25 August, 1963 | 22 June, 1967 |
| Clement Nyong | Adviser International Monetary Fund | 15 August, 1967 | 22 September, 1975 |
| Adamu Ciroma | 24 September, 1975 | 28 June, 1977 | |
| Ola Vincent | Deputy Governor, CBN | 28 June 1977 | 28 June, 1982 |
| Abdulqadir Ahmed | Deputy Governor, CBN | 28 June 1982 | 30 September, 1993 |
| Paul Agbai Ogwuma | CEO, Union Bank of Nigeria | 1 October, 1993 | 29 May, 1999 |
| Joseph Oladele Sanusi | CEO, First Bank of Nigeria | 29 May, 1999 | 29 May, 2004 |
| Charles Chukwuma Soludo | Chief Executive, National Planning Commision | 29 May, 2004 | 29 May, 2009 |
| Sanusi Lamido Aminu Sanusi | CEO, First Bank of Nigeria | 3 June 2009 | 3 June, 2014 |
| Godwin Emefiele | CEO Zenith Bank Plc, Nigeria | 3 June, 2014 | Till date |
Source: (Survey 2016)
THE LEGAL FRAMEWORK
The legal banking of the Central Bank of Nigeria rest mainly in the Central Bank of Nigeria decree No. 24 of 20th
June 1991 which supersedes the Central Bank of Nigeria Acts of 1988 and
subsequent amendments and the Central Bank of Nigeria (currency
conversion) Act of 1967 and its amendments, the promulgation of the
central Bank of Nigeria decree marked an important epoch in the history
of Central Bank. To execute its primary functions for the purpose of
further strengthening the supervisory activities of the Central Bank. of
Nigeria, the Banks and Other Financial Institutions (BOA) decree
supersedes the banking acts of 1969 and its amendments.
The two decrees by “CBN and BOFI” decree
of 1991 countering greater on the bank in the area of bank supervision
and examination, monetary management and enforcement of prudential
standards in banking have made it easier for the bank to introduce
measure aimed at promoting monetary stability and soundness of the
financial systems. The CBN decree makes the subject only to the
authority of the president of the Federal Republic of Nigeria. The
decree also stipulates the maximum financial accommodation in the form
of advanced way and means that the Federal Government may obtain from
the Bank.
However, the CBN is not free to exercise
discretion in limiting its financing of government deficits to the
level it considers substantially, hence monetary and macro economic
instability has sometimes resulted or has become entrenched in recent
times, in short, the CBN and the BOFI decree have further strengthened
the Bank power to co-ordinate and control the pace direction of monetary
activities in Nigeria.
ORGANIZATION OF CENTRAL BANK OF NIGERIA (CBN)
The organization structure of Central
Bank of Nigeria (CBN) was understandably simple consisting of two
departments, namely, the general managers and the secretary’s
departments, with appropriate division of labour are then perceived. Its
original structure has grown tremendously from two departments to
twenty-two departments. A board of directors whose chairman is the
Governor is responsible for the policy and general administration and
business of the bank. The board formulate monetary exchange rate and
other economic policy proposals for approval by the presidency. The top
management of the bank consists of the communities of governor (the Governor and the five deputy governors) which
undertake day to day management of the bank assistants and other
official advice to the top management of various aspects of control,
banking as well as administrative matters.
The head office of the bank is in Abuja,
the Federal Capital Territory. Formally it was in Lagos. It is
established to facilitate efficient executive of the bank function over Nigeria’s
vast territory. Some Central Bank activities are decentralized and
operated through four zones: Bauchi, Enugu, Ibandan and Kano in addition
to the Zonal office, there is a branch network whereby each state
capital in the federation has a central bank branch.
However, in nearly created states,
currency centre are set-up by Central Bank of Nigeria, depending on the
time full fledge branches could emerge. The respective head of each zone
branch and currency centre is the zonal controller, branch controller
and currency officer. At the end of 1993, the Central Bank of Nigeria
has in operation four zone offices, 15 branches and 6 currency centers.
As at December 1993, the Central Bank of Nigeria has 10,139 members of
state comprising of 299 executives of whom 23 are department director,
2790 senior and 7070 junior staff.
1.2 STATEMENT OF THE PROBLEMS.
The aim of Federal Government in
establishing the Central Bank of Nigeria (CBN) is to promise inflow of
force by encouraging government to establish other banks in Nigeria. But
these aims cannot be effectively achieved due to some problems like
poor and ineffective marketing communication within the Central Bank of
Nigeria and the various organs concerned.
For the central Bank therefore, to act
as a banker’s bank, there is need for verbal face to face marketing
communication in order to make more people aware of the facilities and
services available at the Central Bank and the gains of lending system
to the individual in particular and the nation as a whole. This then
lead to the question of ‘what is marketing’? Can marketing communication
lead to the achievement of organizational efficiency? Why is marketing
communication important? Where all these problems wit! be discussed in
the researcher’s review of literature on marketing communication.
1.3 STATEMENT OF HYPOTHESIS
In this study, a null hypothesis would
be employed to allow for smoother elaboration. It is therefore
hypothesized that marketing communication is very important to the
organizational efficiency and this statement of hypothesis is drawn as
follows:
Hi: Marketing communication has a serious impact on organizational efficiency.
Ho: Marketing communication has no impact on organizational efficiency.
1.4 OBJECTIVE OF THE STUDY
For any organization to succeed, its stated objectives, information must
not only be well developed but must be
efficiently and effectively communicated. It is understood that the
result of this study will go a long way in improving the present
marketing communication system in Central Bank of Nigeria in particular
and other government parastatals in general.
1.5 SIGNIFICANCE OF THE STUDY
The significance of marketing
communication in Central Bank of Nigeria (CBN) is to develop trust
between all employees and managers including supervisor with a view to
reduce the number of mistakes, minimize misunderstanding, encourage team
work and to install in each employee favourable impulse for motivation
purpose.
The structure of this study is to
improve the mechanics of marketing communication in an organization to
improve, which will help an organization to run smoothly and the means
of passion on information within and outside the organization. it is
also designed to determine the effectiveness of marketing communication
as implied in a typical business organization. in any organization,
employees have to carry out the responsibilities of knowing the
communication problems in order to determine the right channel of
marketing communication.
1.6 SCOPE AND LIMITATION OF THE STUDY
This project is intended to examine the
efficiency of the Central Bank of Nigeria’s functions, objectives and
pattern of the marketing communication. The scope of the study will
therefore cover so many departments of the bank i.e, marketing
department, finance department, research and development department just
to mention a few.
Time factor is the major constraint in
this research work, since the time set out to carry out this research
work is not long enough for the researcher to do a thorough handling of
all issues in the study. Another constraint limiting the researcher work
is finance, since there is no enough finance to carryout thorough
research.
1.7 DEFINITION OF TERMS
- MARKETING: Philip Kotler (1998) defined marketing as the analysis, planning and implementation and control of the programmes designed to create, build and maintain mutually beneficiary exchange and relationship with the target market for the purpose of achieving the organizational performance objectives.
- COMMUNICATION: Philip Kotler (2007) sees communication as a process of sharing of information, feelings, option or experiences among human beings to enable them achieves their needs, intention and exchange.
- MARKETING COMMUNICATION: Mr. Peter Elisha (2012) define marketing communication as the set or variable (4ps) i.e products, price, place and promotion that a firm normally combine at their various level in their bid to effectively serve the target market. This success in the market place is affected by the quality of information designed and the dissemination about the product, pertaining its existence, features, term and benefit are attained.
- ORGANIZATION: Mr. Itopa .1. Jafaru (2011) define organization as a group of people bond together to provide unity of action for the achievement of stated objective.
END NOTES
Philip Kotler (1998); Marketing and Planning Analysis, Implementation and control, 6th Edition, London Prentice Hall Inc.
Philip Kotler (2007); Principles of Marketing 12th Edition Prentice Hall of India.
Mr. Peter Elisha (2012); Marketing management II Lecture note,
unpublished, Department of Marketing Federal Polytechnics Nasarawa.
Mr. Itopa .1. Jafaru (2011); Fundamentals of Marketing I Lecture note, unpublished, Department of Marketing Federal Polytechnics Nasarawa.
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