MARKETING OF BANKING AND FINANCIAL SERVICE

MARKETING OF BANKING AND FINANCIAL SERVICE

ABSTRACT
Banks are for-profit enterprises. Profit cannot be made in the absence of clients. Or is it because of the services offered by these banks?

This investigation was conducted to determine whether banks and financial services are marketable. Is customer pleasure what these banks strive for?

This research paper is divided into five chapters. The first chapter discusses how banks and financial services might be marketable. It went on to outline the problem to be examined and why this study was conducted, the scope and limitations of the study, and ultimately the propositions and definition of terms.
The second chapter includes a review of previous related literature that has been explored by other investigations.

The study’s design is based on the methods utilized to acquire pertinent data. It also discusses how the questionnaires were distributed and how the data was treated.

The research survey data were evaluated and interpreted. Similar questions from both questionnaires were also compared.

Lastly, in chapter five, the researcher provides a summary of findings, a conclusion to the investigation, and recommendations.

If banks and financial institutions implemented the study’s suggestions, there would be not only satisfied clients with the services provided, but also a constant increase in profit, making the banks’ troubles a thing of the past.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The deregulation of the financial services market that has occurred in the Nigerian economy as part of the structural adjustment program has exposed financial institutions to the types of competitive and difficult market environments that their counterparts in advanced economies have experienced for many years.
Banking and financial institutions that have withstood the volatility caused by these developments are those that have encouraged and embraced the marketing philosophy as a corporate culture for the firm. The Nigerian experience is no different from that of our advanced-world competitors, and we have the advantage of adopting the thoroughly tried and established approach which help them to attain excellence in the face of apparent odds.

The argument in this research work is that it increases profits and, in fact, the entire issue of corporate survival, excellency, competitive edge, and standout corporate image can only be achieved if financial industries adopt the marketing concept as the philosophy that guides how we deliver our services.

Furthermore, with the onset of deregulation and the ensuing fierce competition, the financial market in which we operate is distinguished by the homogeneity of products or services provided by all banks and insurance firms. As with other service industries, they do not have the advantage which the physical product marketing companies have in product differentiation  through improvement of product functioning and peck presentation.

Banks and insurance companies are selling essentially the same basic products or service and therefore have very limited degree of freedom to enhance competitiveness on the basis of product differentiation.

Competitive advantage can therefore only be achieve through adoption of outstanding service delivery systems and customer oriented attitude towards the satisfaction of customer demands and expected.

This study is thus designed to examine how lead-way assurance can create a competitive edge through the application of marketing.

1.2 STATEMENT OF PROBLEM

Banking and Financial Institutions are service industry. The quality of service rendered by banks and financial institution have beer the gunt. Functionaries, the media and general public are all very critical of banking and financial institution. The argument range from those of inefficiency, longdelays in cashing cheque favoritism, delays. In withdrawals, tardiness in granting loans and or credits, to unfriendly attitude of bank workers. A lot of businessmen, and customers has been treated with result. By keeping people standing in their office for some minute. Most banks and financial institution do not put their customer in the prime place as they are surpose to be. There is now a competition and to compete means to apply the marketing concept. Are these criticisms justify or are they just a more random of the banking industry because they are making profit in an era of economic slump?

1.3  OBJECTIVE OF THE STUDY

The fundamental goal of this research is to determine the element of marketing insurance services in Nigeria and techniques to accomplish it, including, but not limited to:

i. Investigate how insurance businesses in Nigeria apply the marketing approach.
ii. Determining the level of client awareness of banking services.
iii. Identifying the stage of marketing to financial services in Nigeria.
iv. To identify the issues that the financial industry has while applying the marketing concept.

1.4  SIGNIFICANCE FOR THE STUDY

Because of the increased sophistication of the Nigerian financial sector, as well as the increased level of education and knowledge among the public, they now have better taste and their needs are more complicated and advanced. They understand their rights and what they want, and they will fight for it. The financial industry that does not provide the correct service is abandoned in favor of another that is better positioned to provide the consumer with what he or she desires.

This study project aims to identify customer requirements and unhappiness in the banking and financial business that has yet to be addressed. This project work will be justified on these grounds in order to find a solution to the dissatisfaction.

a. To investigate various benefits that leadway assurance can be derived if it adopt full marketing of services.
b. To justify on how quickly the clients can receive their claims.
c. To evaluate the level of involvement, marketing of services have helped leadway assurance in rending their services successfully.

1.5  SCOPE OF THE STUDY

The scope of this study is limited to insurance company which is only a part of the Nigeria economy.

This project work has been design in such a way as to include all the general problems which the customer often encounter with the insurance companies resulting to poor services by insurance companies.

Representative sample of the client and staff of leadway assurance has been carefully made the sample chosen is considered an adequate representative of the population in the insurance companies.

Nevertheless, It is hoped that the result of the study would contribute to the available facts on the marketing services employed by insurance companies.

1.6 NEED FOR THE STUDY

The researcher wishes to conduct research on what banks do and whether they use marketing to transact banking and financial services. Banks and financial services have been chastised for the manner they provide services to their customers. They do not regard the customer as the king. The researcher also wants to have an empirical base to support all of the sources about people’s negative perceptions of banks and to advise them on how to enhance their services by changing the way banking and financial services are presented.  deal with it. Criticisms has no room to give but that may arise because the banks are doing well. It their services are poor, why should they make so much profit. Are they do this at the detriment of their A business must learn to think of itself not as producing goods or services, but as buying customer: and doing the things which will make people want to

1.7 PURPOSE OF STUDY

The above explanation has confined us to take a segment of the banking and financial services, and study the approach of the banks to their customers.

– To formulate marketing strategies and recommendations that would be more effective in the marketing of banking & financial services.
– Whether or not marketing of banking & financial services as bases for rendering services to their customers.

– If customers are satisfied with the services rendered by banks.

RESEARCH PROPOSAL
It is the objective of this study to know if

– The attitude or the reaction of customers are to marketing banking & financial services.
– The amount of time spent by customers in various banks doing a normal banking & financial services transactions.
– If banks & financial institution provide enough service and infrastructural facilities and amenities.
– How banks staff and customer relate to one another.
– Whether marketing of banking & financial services is been satisfying their customers in the way the render their services.

1.8 DEFINITION OF TERMS

The terminology used in this research study should be interpreted as follows:

MARKETING
Marketing is a human activity aimed at satisfying needs and desires through the exchange process or detecting and profitably meeting human and social requirements.
BANKING
Banking can be defined as “the business of receiving monies from outside sources as deposits, and the granting of money loans and acceptance of credits or the purchase of cheques, bills and sale of securities for account of others or the incurring of the obligation to acquired claims in respect of loans poor to their maturity or the assumption of guarantees.
PRODUCT
A product is a collection of benefits or anything that may be supplied to a market to meet a want or need.
SERVICES

A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything its production may or may not be tied to physical product.