CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Banking transactions in some selected local government in Enugu such as Udi, Ezeagu Udoji is not new to us as we have been practicing this system for over thirty years after independence. However it is on this background that two systems of operations were adopted for effectiveness and efficiency of the product management in various banks. In the past we use to have an orthodox banking process whereby the banker relaxes on this sit waiting for customers to bring business. This type of banker is looked at as somebody with rigid ideas about bankable projects and which in turn retards the smooth flow of banking operations. Another type of banking process adopted as conventional is the unorthodox system whereby the banker is evolved in looking for customers. Because they want to maximize profit, the banks employ all possible marketing promotional strategies in order to survive, hence competitors has come into play and thereby creating innovation and business acumen. Knight Lester B. (1970: 7) status of banking marketing Washington D. C. American Bankers Association states that banks primarily especially commercial banks are engage in business of collection, payment and depository functions as well as credit management.
According to Kotler (1980: 4) stated that the survival of any bank depends on the manner it functions and therefore it has to depend on the market place for its profitability and environments of the economy which it serves. It is worthy to mention that the ability of any business to serve and retain its customers depends mostly on the quality and the effectiveness of the product management it offers. The quality of services provided by the any organisation is better judged in terms of it’s ability to bestow the customer’s with the desired satisfaction. In this regard characteristics such as reliability, standardization, availability and other desired attributes associated with service combine to determine the effectiveness of the product management in the marketing of banks services in the three local government areas. Martins (1979: 12) confirmed that the image commercial bank has is important because it determines the customers patronage of bank. According to advertisers watchdog (1983: 7) awareness creation strategy has been limited to advertisement which does no more than informing the customers about the services they offer and the address of their location. All the claims about efficient courteous and speedy services are false and advertising in banking industries can only become a reality when services the bankers render is equated to match the claims they make I the advertisement.
According to Azikiwe (1943: 16) expressed his annoyance and disappointment over the treatment meted on him from a bank staff in Lagos. The story is still the same every where even after the days of the white men. Loans are still granted guarding to customers and if granted, it is alleged that the managers demand personal cuts, long queues, man-know-man etc. Banking habit among the people is still very low in spite of huge profits recorded by banks annually, according to Engu and Warsaw (1979: 10) indicated that there is a ray of hope and government rural banking programme if well planned, coordinated and pursued vigorously will help to increase the banking habit of our populace, increase efficiency and effectiveness of it product management”. There w ill also be an increase competition among the banks for customers. As at the end of March 1985, there were thirty two commercial banks, operating Udi, Ezeagu and Udoji witu a total of one thousand one hundred and fifty nine (1,159) brand network. By share volume, the commercial banks are the most dominant and by December 1980, they had a total capitalization of N16,340.50 millions. The competition among banks would center on non-price lines since the Central Bank controls the interest, the aggregate among to be lent to some categories of customers, the sector that more funds should be decided to what should be accepted as security for the loans and especially the type of business that banks should go into. How banks attracts serve and retain customers is left for to decide. All these put together including deposits, loans and advances make for effective product management.
STATEMENT OF THE PROBLEMS
The business of banking entails the collection and transmission of funds from the saving surplus to the saving deficit economic units. Thus banks act as the mobilize of funds to all sectors of the economy. Commercial banks have growing from about seven in 1952 to thirty two by March 1985 with 1159 branch network. But the industry has continuously bene under attack by main observers especially marketing critics for failure to utilize fully the advantages of modern marketing principles in operating their banking business for better achievement of co-operate objectives and goals. Unfortunately, product management is the most criticized of all banking practices. Thus the poor product management practices of the banks have resulted into sense of complaints of dissatisfaction among customers about the quality of services offered. To them services are inadequate and poorly rendered. Beside most customers and potential customers are not fully aware of the bank services. The problems to be addressed in this study are: the customers have equally criticized the charges of the bank and varsity of services offered by this bank. The importance of the industrials to the economy of the country need met to be over – emphasis but yet they are found writing in optimum satisfaction of it’s numerous customers. In view of the importance of this industry in the economy, the researchers seek to evaluate the effectiveness of the product management in this industry for increased performance.
