AN ASSESSMENT OF MARKETING MANAGEMENT IN THE BANKING INDUSTRY IN NASARAWA STATE

AN ASSESSMENT OF MARKETING MANAGEMENT IN THE BANKING INDUSTRY IN NASARAWA STATE

 (A case study of Eco Bank Nasarawa Town)

ABSTRACT

This research work was based on the assessment of marketing management in the banking industry in Nasarawa State. Eco Bank was picked to serve as a sample for the population in the course of the research, it was discovered that marketing management department form an integral part of the institution. Thus the development of the marketing management is important for the general development of the banking industry and the economy of the state. The researcher used questionnaire method to obtain information, organize the research work in five (5) chapters. The Chi-square method was used to analyze the necessary data obtained from the questionnaire returned. Adequate suggestions were made on marketing management that contributed to the profitability level of the Eco Bank.

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

Large scale industry is an important sector in the business world which has a growing impact on all other sectors of the economy because of financial services provisions. In this volatile situation financial institutions were not left out as they are seriously affected by the level of competition both locally and internationally. The banking industry environment today is highly volatile (Schroder and Lacobulli 2001). Nigerian banks therefore needs to develop effective technique to enhance the interaction of customers and the bank staff. The complexity in the banking industry has made bank managers to focus on how to create close affiliation with their customers.

No wonder why Nigeria banks now create a separate department in the bank known as customers care unit to address customer issues and complaint in order to ensure that customers get value for their money thereby enhancing customer loyalty, building and maintaining customer’s cordial relationship in order to achieve an advantage that can lead to customer retention and increase profitability. Furthermore, loyal customers can provide the foundation for growth which leads to competitiveness in the industry. Also, the belief that relationship marketing (RM) investment builds stronger, more trusting customers relationship (Morgan andHunt 1994) and improves financial performance has led to massive spending on customer relationship programme.       

With the depressed nature of the Nigerian economy, struggle for survival cannot be over emphasized; where various sector of the economy are struggling to maintain status of a limited number of banks which our financial institutions are not left out in the struggle survey with the collapse of many banks. In the last few years, the need for the remaining ones to struggle and reach out to existing and potential customs has become more glaring. Their product and services are now being marketed to be achieved Shert (2005).

Marketing management provides the framework in which any industry inclusive realizes their long term profit. So it can be said that effective marketing management to be derived from the prospective own their existence to the public. They continue staying in business and their level of success depends on a large extent on the patronage enjoyed from public progressive bank operation since many banks are now folding up, the need is becoming more glaring.

Above all, the changing tasks expectation and increasing sophistication of the marketing management service in the banking industry. Their production orientation is that marketing management orientation has come to change the trend of buyers-market. There was a time when bankers sit behind table expecting deposit and sometimes even refusing to accept deposits from intending customers but that has passed. Banks now have to cultivate the habit of marketing management services the ratification syndrome of the banking firm is like the success of its operation or existence. Therefore, marketing management services in bank requires a planned orientation with best effectiveness.

Sheth (2005) also opines that customer relationship marketing would result into customers’ retention which has to do with creating relationship, Customers loyaltywhich has to do with developing relationship, and customer interaction may lead to customer retention. Considering the above arguments, Nigeria banks now adopt relationship marketing principles and design strategies to achieve and maintain close and long lasting relationship with the customers.

Marketing management strategy is applied to know where, what, when and how to tackle their ever dynamic situations for survival of the bank and the achievement of the cooperative objective. Finally, banks cannot afford to lose customers. They indeed strive hard to win customers heart but it must not stop at that, they should also retain the customer and this has to with its marketing management activities.

Studies disclose that Nigerian banks have embraced performance management significantly and that effective performance management reduces employee turnover and improves service quality. Again, there is a significant, positive relationship between leadership commitment and performance management effectiveness and significant positive relationship between communicating strategy to the staff and performance management. The study therefore recommends that Nigerian banks should invest on their employees and managers so as to drive and consolidate the gains of performance management to remain competitively relevant in the industry.

Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services, to create and maintain relationships that will satisfy individual and organizational objective. It is fundamental to business growth. It basically includes getting goals and services to the final consumer satisfactorily.

Nigerian banks engage in an effort aimed at encouraging certain classes of customers resulting in rejection of deposits or accepting them on dictated terms due to the fact that there are few banks to render services to a considerable large number of customers which led to decline profit level. These changes therefore necessitated the need to find a way of promoting banking service which is possible with the impact of marketing management in the banking sector.

It is surprising that banks have not been able to come up with a comprehensive approach for marketing management of banking service and product. This process witnessed what is called aggressive marketing which is not a repute of what banking stands for in terms of integrity and utmost good faith. However, customers should be at the forefront in terms of the banks planning and cooperative thinking.

1.1     STATEMENT OF THE PROBLEMS

The point of investigation that is explored in this research is the assessment of marketing management in Eco bank Nassarawa Town, marketing management as it has demonstrated velocity of its growth is incredibly fast and efficient it’s as allow individuals including companies to perform their banking businesses. We will examine how marketing management will affect productivity and efficiency, and profitability of banks. Based on preliminary finding it has been observed that Eco bank in Nigeria lack effective marketing management, this make me to carry out a research on the assessment of marketing management in reference to Eco bank Nassarawa Town.

1.2     OBJECTIVES OF THE STUDY

This study aims at assessing performance management adoption in the banking Industry in Nigeria. In addition, the study seeks to achieve the following specific objectives:

1. To assess the extent at which marketing management has contributed to the banking industry with special reference to Eco bank Nigeria Plc. Nasarawa Branch.      
2. To determine if the location of the bank is important to customers.
3. To ascertain which services marketing management offer to customers.

1.3     RESEARCH QUESTIONS

i. To what extent has marketing management contributed to the growth of the bank?

          ii. How is the location of the bank important to customers?

iii. What other services does the marketing management offer to customers?

1.4     STATEMENT OF THE HYPOTHESIS

Hypothesis is a certain preposition made about a population, or it is an assumption which can be tested about population. Its test is usually carried out by using a sample. The following are the assumption of the research and they are drawn from statement of the problem. The hypothesis is stated in the null and alternative forms.

HYPOTHESIS 1

Hi: Marketing management has significant contribution to the banking industry in Nasarawa Town.

Ho: Marketing management has no significant contribution to the banking industry in Nasarawa Town.

HYPOTHESIS 2

Hi: Location of the bank has significant influence on customers of EcobankNasarawa Town.

Ho:Location of the bank has no significant influence on customers of EcobankNasarawa Town.

1.5     SIGNIFICANCE OF THE STUDY

Essentially, this work is not only to acquaint with the historical background of the bank but also primarily to unearth ways for adopting bank marketing management in a bank and come out with valid and reliable recommendations. More so, it will help scholars who want to research broadly on the topic by using this as a foundation to their research works, it will also help the government and management in the banking industry so that they could make interference from the work and adjust their marketing management strategies in order to achieve their set objectives or goals

1.6     SCOPE OF THE STUDY

The scope of this research work is focused on the analysis of the marketing management of Eco Bank and is aimed at improving the management skills to coordinate employers, technicians, experts, supervisors, upper level managers and their individual skills as designers, requirement operator and planner; which can encourage effective management and efficiency. This work will critically examine the cause and effect of poor marketing management in the banking industry and to proffer some useful solution to the problem.

1.7     LIMITATIONS OF THE STUDY

          The following are the limitations of the study:

1. Most bank information is kept a top secret and as such very small portion of information was disclosed.
2. Due to non-availability of undertaking the research to the fullest satisfaction, questionnaire administered was for few of the respondent, the researcher also limit his call to the banking firm.
3. Respondent’s attitudes in most occasions were uncompromising with the researcher for the simple reason that the study will not be any help to them.
4. Inability to commence the work as previously schedule, this is as a result of combine school and personal work with that of the research work.

1.8     OPERATIONAL DEFINITION OF TERMS

MARKETING: According to Philip Kotler (2003) defines marketing as the managementprocess through which goods and services move from concept to the customer.

MANAGEMENT: According to VienNichel (1981) defines Management (or managing) as the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources..

MARKETING MANAGEMENT: According to Philip Kotler (2004) defines marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm’s marketing resources and activities.

MARKET CONCEPTS: Is the strategy that companies use to market their products or services to customers. The goal of marketing management is to promote the benefits of a product and to satisfy consumer needs.

BANK MARKET: It is that part of management activities which seek to direct portability to existing customers.

MARKET ORIENTATION:Market orientation is a company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix. Market orientation attempts to tailor products to meet the demands of customers.

BANK: According to Mace Sich and George (2003) defines a bank as a financial institution and a financial intermediary that accepts deposit and channel those deposits into lending activities either directly by learning or indirectly through capital markets.

SERVICES: According to Valerie Zenithal, ParasumArien and Leonard Beng (1990) defines service as a coherent ready to use deliverable that is of value to the customer service that allow customer to do business without worrying about underlying technology or IT infrastructure.

CUSTOMERS: According to KindallStepanie D. (2007) defines customer as an individual that purchase the goods and services produced by a business. The customer is the end goal of the business, since it is the customer who pays for supply and creates demand.

SATISFACTION: Customer level of approval when company fulfills  his or her expectation.

COMPETITION: Goal rivalry in which every seller tries to get what other sellers are seeking at the same time. Competition plays a regulatory function in banking demand and supply.

Marketing Management Is An Art Or Science

Meaning of Marketing Management:

The term ‘marketing management, refers to the planning, organizing, directing and controlling of the persons and activities engaged in the marketing division of a business enterprise. In the words of Philip Kotler, “marketing management is the analysis, planning, implementation and control of programmes designed to create, build and maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organizational objectives. It relies on disciplined analysis of the needs, wants, perceptions and preferences of target and intermediary markets as the basis for effective product design, pricing, communication and distribution.”

Based on the above ideas, management can be regarded as a process of identifying and assessing the consumer needs with a view to first converting them into products or services and then moving the same to the final consumers so as to satisfy their wants with the aim of making optimum use of resources available to the enterprise.

Objectives of Marketing Management:

The aims or objectives of marketing management include:

(i)                 Achieving higher productivity in its marketing operations;

(ii)               Making optimum use of the available resources;

(iii)             Enhancing the profitability of the enterprise;

(iv)             Providing maximum consumer satisfaction;

(v)               Raising of standard of living of the people; and

(vi)             Satisfaction of consumer wants.

Having examined the meaning and objective of marketing management I am of the opinion that marketing management is more of science than art.

Marketing Management As A Science:

The word science literally means knowledge. It is a systematic body of knowledge acquired by mankind through observation and experimentation and which is capable of verification. In the words of Keynes, “science is a systematized body of knowledge which establishes relationship between cause and effect.”

Science has three basic features:

(i)                 It is a systematized body of knowledge that uses scientific methods for observation,

(ii)               The principles are evolved on the basis of continued observation, and

(iii)             The principles are exact and have universal applicability without any limitation.

Marketing management is viewed as a science as it is an organized body of knowledge built up by management practitioners, thinkers and philosophers over a period of years. It has certain principles and rules developed after continued observation. But it must be noted that marketing is science but unlike Physics, Chemistry and Biology, it is not an exact or accurate science.

The principles of marketing management cannot be considered results and may not have universal applicability. The main reason for the inexactness of science of marketing management is that it deals with human beings whose behaviour cannot be predicted. Thus, we can say that marketing management is a ‘soft science’ or ‘behavioural science’.

Marketing is a science because marketing is about satisfying customers needs. To understand customer needs we need to develop scientific methods to learn about our customers and the needs they have. Also, the market and consumers generally behave in certain manners and deal with known variables. Porter’s five forces is a good example of this. These five forces determine the profitability and behaviors within a market. The five forces being: competition within the industry, customers bargaining power, suppliers bargaining power, threat of entry of new competitors, threat of substitute products. These forces shape the strategy of the company.

Though creativity plays a large role in marketing, there’s no denying data is what drives results. A study of the people most likely to use products and services is the only way to develop an accurate buyer persona. After some testing, the buyer personas are tweaked and polished. Without the data from that testing, that fluidity wouldn’t be possible.

Analytics are also important when deploying marketing campaigns. As marketers, we often use A/B testing to determine what changes should be made to achieve better results. Those changes are recommended to the writers and designers, who then use art to create new versions of the same campaign. Without that data, we would have no way to improve upon what we’ve already done.

Conclusively, from the above analysis of marketing management it is clearly seen that marketing management is more of Science than Art.

REFERENCES

David B. Montgomery 2001. “Management Science in Marketing: Prehistory, Origin, and Early Years of the INFORMS Marketing College.” Marketing Science 20 (4): 337–348.

Robert C. Blattberg, Rashi Glazer, and John D.C. Little, eds. 1994. The Marketing Information Revolution. Boston Mass.: Harvard Business School Press.

Dick R. Wittink 2001. “Market Measurement and Analysis: The First ‘Marketing Science’ Conference.” Marketing Science 20 (4): 349–356.

www.business2community.com/marketing/marketing-art-science-0817450#blDO5OiKWhQpuuPk.99

Marketing Management Activities

Marketing Management Activities

INTRODUCTION

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organization and on the management of a firm’s marketing resources and activities.

Globalization has led firms to market beyond the borders of their home countries, making international marketing highly significant and an integral part of a firm’s marketing strategy.

Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business’s size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product.

To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate.

In analyzing these issues, the discipline of marketing management activities often overlaps with the related discipline of strategic planning.

Structure Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter’s five forces, analysis of strategic groups of competitors, value chain analysis and others. Depending on the industry, the regulatory context may also be important to examine in detail.

In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor’s cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

DEFINITION OF MARKETING MANAGEMENT ACTIVITIES

Marketing management activities can means management of all the activities related to marketing or in other words we can say, it refers to planning, organizing, directing and controlling the activities which result in exchange of goods and services.

Philip Kotler defined marketing management as “The art and science of choosing target markets and getting, keeping and growing customers through creating delivering and communicating superior customer values of management”.

Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information.

Some of the important activities involved in marketing management activities are as follows:

If we break up this definition we can say the marketing management involves the following activities:

1. Choosing a Target Market: The activities of marketing management begin by finalising the target market for example; target market for medicine manufacturer is hospital, doctors, chemist shops, etc.
2. Growing Customers in Target Market: After choosing a target market the next step in marketing process is to take steps to increase number of customers by analysing the needs, wants and demand of customers and giving due importance to the satisfaction of customers.
3. Creating Superior Value: The next step in marketing management process is to create some special value in the products to make your product better than competitor’s product. Special values can be added by offering various schemes for example, giving free insurance with car.

Most of the time marketing managers aim at increasing demand but sometimes they have to constrain or cut down demand due to shortage of supply by reducing expenses on promotion etc. The situation of reducing the demand was very common before 1990 (before liberalisation and privatisation). Now the main motive of marketing manager is to manage the demand effectively.