MARKETING OF BANK PRODUCTS IN A DEREGULATED ECONOMY: PROBLEMS AND PROSPECT, A CASE STUDY OF ZENITH BANK PLC IKOT EKPENE
Chapter One
Introduction
- Background of the Study
The importance of marketing has been stressed in many quarters. Peter and Waterman (2008, P. 8) pointed out that most successful firms in their over 25 years of study share dedication to marketing, which means that the key of success lies in keeping close to the customers consequently marketing is define as the activities set of institutions, and processes for creating, communication, delivering and exchanging offering that have value for customers, client, partners and society at large (AMA 2007).
In the same vein marketing is a system of business activities designed to plan, price, promote and distribute something of value-want satisfying goods and distribute to the benefit of market-present and potential household consumer or individual users.
Marketing as a relatively new management function before the recognition of marketing as a management in the mid (1990s) the known management functions were production, sales, finance and personnel. This period was characterized by absence of competition as very few companies were engaging in the production of goods and services. Productions were scarce and there was excess of demand over supply of the available goods and services. The few companies in existence were producing what appealed to them not minding if such products or services offered and satisfaction to the customers.
Later competition began to set into the society following the proliferation of companies with varying product, consumers then began to make choice among the existing products arising from the fact that the supply of commodities exceeds demand.
Companies then realized that the only way they could gain customers patronage in the midst of competition was to offer satisfaction to customers by producing in tandem with their needs and wants.
Marketing is the most effective engine in an economic development particularly in its ability to rapidly develop entrepreneurs and managers. While other scholars present a common front stressing the need for marketing in National Economic Development, marketing in Nigerian has remained undeveloped.
Some scholars have characterized marketing in our country as the most neglected functional area of management. Onwuchuniba (2009, P.27) pointed out that many Nigerian business executives out of their selfish intention would prefer spending billions of Naira buying machines for perfecting. Products without a kobo being spent on researching the industry like banks; it appears that marketing has not made a serious step into important sectors.
Marketing should be given attention because of its role sensitizing the public of new products; therefore, this study is out to highlight the role of marketing in new Bank Products acceptance in a deregulated economy.
Zenith Bank was incorporate as a private limited liability company by a group of Nigerian formed by Jim Ovia as a managing Director Chief executive on 30th May, 1990 presently Mr. Peter Amangba takes over from Mr. Godwin Emefiele, in June 1st, 2014 Mr. Peter Amangba became the executive director (Zenith Bank PLC 2014). The bank received its commercial banking license on 200th June, 1990 and commenced operation on 16th July, 1990.
On 21st April, 2014 the shareholders of the bank approved the subdivision of its share from N1.00 to 50kobo, conversion of the bank to a Public Limited Company (PLC) and a listing on the exchange Via an initial public officer (IPO).
Consequently, the bank became a PLC on 20th May, 2014 and under IPO which was 554% subscribed.
The entire share capital of the bank was subsequently listed on the floors of the Nigerian stock exchange on 21st October, 2014. Zenith bank is engaged in the provision of universal banking services to corporate, commercial and individual customers. The bank provide such banking services as saving and current accounts, treasury and financial services, investment banking, equipment leasing, trade financing, amongst others, to the wholesale and retail market with a special focus on top-tier customers. Products such as Smart Cards (Electronic Purses) Tele-Link (Telephone Banking), Zenith view facilities (Internet Banking and Western Union Money transfer are also offered to customer).
The bank has a strong and consistent earnings records as well as solid capital and liquidity position.
In addition the bank’s strong assets quality magnifies its strength in local environment and the bank operations are highly automated (Zenith Bank PLC 2015).
- Statement of the problem
Marketing of bank products has not been fully embraced by some banks. Many banks erroneously believe that, marketing is for physical products alone and also majority of banks executive view marketing from the narrow prospective reflecting efforts to satisfy customers need. Therefore, this study is carried out too highlight the needs for marketing of bank products, as well as strategies to achieve high patronage of bank product in a deregulated economy amongst others contending issues.
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Problems Encountered By Not Marketing Bank Products
- It result in the decrease of customers and consumers
- Low patronage from the society and customers.
- They will not satisfy customers wants and needs
- It will bring down their value
- Decrease in social responsibilities, empowering the customer and asking for referrals.
- objectives of the study
The sub objectives of the study are:
- To identify the benefits of marketing bank products
- To access the characteristics of bank products
- To suggest strategies the should be adopted by bank in marketing their products in a deregulated economy
- To determine the problems of product marketing by bank in a deregulated economy.
- To proffer the solutions to the problems off product marketing by banks in a deregulated economy.
- research questions
For the aim realizing the objectives of the study the research question are listed as follows:-
- What are the benefits derived by bank from marketing their product?
- What are the characteristics of bank products?
- What are the strategies necessary to achieve high productivity in the marketing of bank product in a deregulated economy?
- What are the problems/constraints associated with marketing of bank products in a deregulated economy?
- Is there any solution to the problems of product marketing by banks in a deregulated economy?
- significance of the study
This project is carried out principally to assess the benefits derived by banks from marketing their products, taking Zenith Bank PLC as a case study; it is hoped that the study will be of great benefit to both individual and corporate bodies like:
Bank: These are the peoples that carry out the day-to-day banking operation. The project will be of immense benefit to them as it will inform them of the needs for marketing bank products in a deregulated economy.
