APPLICATION OF
MARKETING CONCEPT IN GT BANK AND ITS EFFECTIVENESS IN CONSUMER SATISFACTION
ABSTRACT
The primary objective of this research work is to
carry out proper investigation on “the application of marketing concept in
commercial banking and its effectiveness in consumer satisfaction” at Guaranty
Trust Bank Murtala Muhammed Square Branch Kaduna. To highlight the result of
the investigation of the subject matter. Background, statement of general
problem, significance, research question and limitation of the study. Chapter
two is the literature review relevant materials were used in order to acquire
full information about marketing, the marketing concept. Nigeria financial system and
banking. Author whose book were consulted in this research work were
acknowledge, chapter three deals with the research methodology, primary data
were gathered through the utilization of personal interview and detailed
questionnaire. The total population size of Guaranty Trust Bank
Management/staff in the branch is 40 out of which 15 were randomly selected and
administered questionnaire. 20 respondent of the total customer’s population
were also randomly selected. All the respondents responded to the questions
asked which were later tabulated. The simple random sampling is the method
employed by the researcher in determining the sample size, the statistical
technique used in testing the questionnair was simple percentage method
justification of samples, sampling method employed etc. were all discussed
extensively. The tested isMarketing concept has no effect on the customer’s
satisfaction.: Marketing concept has
effect on the customer’s satisfaction. Chapter four deals with data
presentation and analysis; all the data collected were analyzed in this
chapter, result obtained from the data and proof of questionnaire. was accepted
often careful analysis of the alternate questionnaire, this chapter result
obtained from the data and proof of questionnaire was accepted often careful
analysis of the alternate hypothesis. It proved that marketing concept.
Application has effect on consumer satisfaction. Finally chapter fiver contain
the summary of the major finding of the research and recommendation were made
based on conclusion. The recommendation include A well coordinated marketing
planning programme must be adopted by Guaranty Trust Bank to ensure that all
departments are giving total participation towards customer’s satisfaction. All
effort should be directed towards reducing customer waiting time to the barest
minimum which is highly important. These can assist management in marketing
their products effectively while ensuring customer satisfaction.
TABLE OF CONTENTS
Title page i
Declaration ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vi
Table of contents vii
CHAPTER
ONE: INTRODUCTION
1.0 Background of the study 1
1.1 Statement of General Problem 6
1.2 Research Questions 7
1.3 Objective of the study 7
1.4 Significance of the Study 8
CHAPTER
TWO: LITERATURE REVIEW
2.0 Introduction 9
2.1 Conceptual
Framework of Marketing Concepts 9
2.2 Marketing Mix 14
2.2.1 Classification
of the Nigerian Financial System 16
2.2.2 Marketing
of Banking Services inNigeria 17
CHAPTER
THREE: RESEARCH METHODOLOGY
3.0 Introduction 25
3.1 Research Design 25
3.2 Area of Study 26
3.3 Population of the Study 26
3.4 Sample and sampling
technique 26
3.5 Method of data collection 27
3.7 Method of Data Analysis 27
CHAPTER
FOUR
4.0 Introduction 29
4.1 Characteristics of
respondents and classification 29
4.2 Data presentation and
analysis 31
4.3 Answer to research question 44
CHAPTER
FIVE
5.0 Introduction 47
5.1 Summary 47
5.2 Conclusion 49
5.3 Recommendations 50
Bibliography 60 Appendix/Questionnaire 53
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Marketing concept is a customer oriented philosophy which states that customer’s
satisfaction is the economic and social justification of firm’s corporate
existence. These philosophies hold that the company should be customer
oriented. Strive for profitability. Sales volume and coordinate all its
marketing activities. Marketing management however is the vehicle that business
uses to capture the marketing concept.
Kurtz (1992. Pg 3) defines marketing management as a unifying approach
marshalling and directing the total resources of a business firm towards the
determination and satisfaction of a customer and consumer wants in a way
planned to enhance the firm overall profit position.
Where the marketing concept is recognized, there is a total change in
the basic philosophy of business. Instead of trying to sell what can be
produced. Management produces what is really needed by the customer though
profit criterion is there. The element of serving and keeping the customer
satisfied are equally important to the company. By realizing that it is not
merely selling a particular product but particular need of a customer is
satisfied effectively.
The essence of banking services marketing is to provide the desired
satisfaction to customers and make the business of banking maintain a sound
footing and sustainable growth in the short and long run.
The current industrial, commercial and technological metamorphosis with
increased competitive pressure. Customer expectation and other unstable
environmental faces are clear indications that a business either adopts
marketing concepts philosophy or goes out of existence. The recent
proliferations of banks in Nigeria
denote a more intense competition in which only those capable of adopting
dynamically would be able to maintain a sustained growth and profitability.
The present economic changes in Nigeria no doubt, pose greater challenges
to commercial banks. These trends of changes have made banks to realize that
their customers can no longer just be treated in an off head manner. Banks
therefore employs marketing experts who actually go out and solicit customers
patronage and loyalty. Banks now realized the importance of maintaining close
relationship with customers and getting the service closer to them as possible.
Most banks set up marketing research department or as the case maybe in order to
gather more facts about customer needs, attitude, motives and preference. The
orientation of banking service started with production concept which believes
that customer would buy the services offered to them by banks provided it is
accessible and affordable. Thus banks thinks of offering useful services and
open out more branches to make their service accessible.
Later the bank moves to product concept under the assumption that
customers would buy such services that offers the best quality and value for
the price that is being offered. Thus banks direct their efforts in improving
the quality of their services.
However, at the later stage of their development, sales orientation
comes into effect i.e. selling concept which believes that customers would not
buy enough from them unless a positive extra effort is made to sale the product
due to increase in competition and awareness. Today, the application of
marketing concept makes banks to accept the fact of finding out the needs and
wants of customers and to provide banking service package that will best
satisfy such needs and wants profitably.
The marketing concept has been viewed as the correct philosophy in
achieving a long – term commercial success. Thus making the task of persuading
customers to buy the service that bank offered very easy. Therefore customer
satisfaction becomes inevitable. The marketing concept is directed towards
answering the question as to, who are our customers. To whom do we produce?
What marketing techniques do we employ? Why are we selling this product? Who do
we sell to? Also to find out what the customer want and where he wants to buy
the product and how he want it delivered in order to create a cordial
relationship between the organization and its customer so as to achieve maximum
satisfaction.
The banking profession in Nigeria had until – recently been
characterized by what expert refers to as arm chair banking, where bankers are
waiting in their offices for work to come and meet them. This approach to
banking business is deficient because the bank had not fully embraced marketing
concept: its philosophy and function. Their perception of marketing is still
narrowly defined. Marketing of bank services actually transcend these myopic
ends.
Nigeria
commercial banks need to adopt the marketing concept programmes for a
purposeful and customer oriented approach to the business of banking. As a
result of the above factors, this research is designed to answer the following
questions.
1)
To research into and find out those areas the
banks have found to be of interest in satisfying customers.
2)
To ascertain the opinions of banking staff towards
their customers and vice – versa.
3)
To find out the place and role of marketing in the
organizational structure of commercial banks and to what extent marketing functions
have been applied.
4)
To ascertain the effectiveness and efficiency of
marketing concept application.
5)
To make useful recommendation towards improvement
1.1 STATEMENT OF GENERAL PROBLEM
The marketing concept doesn’t seem to receive complete recognition by
the Nigeria
commercial banks. The integrated marketing idea that business should be
organized in such a way as to satisfy the customers by committing the whole
system of the organizations activities towards a single objective has been a
myth to the commercial banks rather than a reality. Consequently, customers are
not given the adequate attention they required in the banks as that which is
appropriate in the service organization. Furthermore, banks charge
discriminatory interest rates on borrowed funds which causes untold hardship to
customers.
1.2 RESEARCH
QUESTIONS
The
research questions are formulated on the basis of the purpose of the study to
guide the entire research work. These questions will serve as guide to the
researcher in designing the questionnaire and in providing solution to the
problems discovered.
1.3 OBJECTIVES
OF THE STUDY
1) Find out the area the banking services
2) To ascertain the extent to which or
applied in the banking sectors.
3) To ascertain the effectiveness and
efficiency of marketing concept application to banking industry.
4) To recommend on solving problem based on
findings which will help to improve other marketing strategies implementation.
1.4 SIGNFICANCE
OF THE STUDY
The research is timely and important because of the role marketing
plays in the organizational performance the research finding is hoped towards
providing qualitative knowledge and idea in applying the concept of marketing
in achieving corporate objective and customer satisfaction.
* What is the status of marketing concept
in GT – Bank?
* How long have GT Bank adopt it marketing concept?
* What is the impact of marketing concept to GT Bank?
* How will the bank improve its concept to their customers?