CHAPTER ONE
INTRODUCTION
Background of the Study
Sheldon, (2002) defined a banking business as to receive money from customers and to collect instruments representing money from customer on the understanding that the money will be refunded or collected either on demand or at some definite date agreed upon between union and his customers. From the above, the core activity of a bank is funds intermediation which entails mobilizing funds from surplus spending unit and channeling such funds to the deficit unit. This activity facilitates capital formation which generates growth and development in the economy. How Nigeria banks have fared along the lines of the above function has been an issue of unresolved debates in the banking domain, as their effectiveness has been consistently criticized. Perhaps the fallout of this argument led to the banking sector reforms.
The current banking sector reforms in Nigeria was designed to promote the viability, sound stability of the system to enable it meet the aspiration of the economy in term of accelerated growth and development (Nwachukwu and Peterson,2007) for bank in the industry to acquire effectiveness within the sector, banks must compete vigorously using their competitive strategies. One such competitive strategy would be thedevelopment of superior brand identity, brand image and brand personality. These marketing concepts areusually noted as a prerequisite for achieving sustainable competitive advantage.Given these trends after the bank consolidation, marketing strategy has become a fundamental tool inthe banking sector.
Indeed, both the application of marketing concepts to the banking firms and theunderstanding of customer behavior have been subjects many research works in many decade ago (German andHunt, 2003; Jessica and Pius 2008; and Kotler et al 2006). Banking industry have aggressively pursued variousmarketing strategies to enable firms succeed, a good example of such are market segmentation (Harvey 2000cited in Denmasks, 2010; Nichols 2001 cited Nubam 2008), relationship marketing and database marketing(Amett et al 2003) and other marketing activities that will enhance performance.
Brand identity is the visual aspect that forms part of the overall brand (Koneonit, 2002).However, brand identity is seen as what the owner want to communicate to its potential consumers. Leclere and
Schmitt (2007) submitted that consumers brand knowledge consist of two measures, brand awareness and brandimage. Brand awareness refers to the strength a brand’s present in the consumer’s mind. Aaker (2006) thereforedefines brand awareness as the ability of a certain product category. Brand image increases the produce inmarketing efforts.
Although these strategic issues in marketing are important to the banking sector researchers andpractitioners, the understanding of the unique nature of how these strategies enhance performance need to beexplicated. Several studies in relationship marketing and many in branding has focused on brand equity, brandpersonality and brand image. This study departs from previous research in that we are looking at using brandidentity as a specific strategy to differentiate our service from other of our competitors. Our examination ofbrand identity in the banking context aims to extend prior research on brand identity and firm performance(Jackson and Smith 2006; Manson et al 2008; and Mubok 2010).
1.2 Statement of Problem
There is no gainsaying that the present economy deserves a sound, stable and better banking performancefollowing the causative factors, such as unethical and unprofessional practices, poor management qualityamong others which contributed to low level of bank performance and sometimes lead to failure of bank.
The major problem in the Nigeria bankingindustry is that bank services are still lacking in so manyspheres in Nigeria, yet the banks perception ofmarketing has not shifted from mere advertising untilrecently as a result of stiff competition brought about byreforms.This crisis demonstrated in no unmistakableterms that “even strong economies, lacking transparent control, responsible corporate boards andshareholder right can collapse quite quickly as investor’s confidence collapse”. The alarming rate of corporate failures as witnessed globally has necessitated this study apparently; thefailures have known no boundary as it cuts across both the very big organizations and the very smallcorporate entities especially financial industries.In a nutshell, the present study is designed to investigate the Bank’s management ability, capability andperformance. It also reviews the interventionist role played by corporate governance to bank performance.
1.3 Purpose of the Study
The general purpose is to examine the effect of Brand Identity and Marketing Performance Empirical Evidence from Quoted Commercial Banks in Nigeria while the specific objectives are:
1. To determine the extent to which Product Design influence Marketing Performance from Quoted Commercial Banks in Nigeria
2 To ascertain extent to which Brand Image influences Marketing Performance from Quoted Commercial Banks in Nigeria
3 To ascertain extent to which brand awareness influences Marketing Performance from Quoted Commercial Banks in Nigeria.