THE IMPACT OF MARKETING ACTIVITIES ON THE BANKING SECTOR
|BANKING AND FINANCE|
No of pages
|MS Word & PDF|
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1.0 BACKGROUND OF THE STUDY
In these days of stiff competition ion all business concerns including the banks and other financial institutions, the survival of banks rest on the role of marketing department in creating quality service to customers.
A marketing department is designed to know the effectiveness and efficiency of services rendered by organization.
Marketing to some scholars is seen as the process of identifying the needs of the customer and the provision of such needs for maximum satisfaction.
Also, it is the process planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfied individual and corporate objectives (American Marketing Association).
Marketing department should ensure that each worker roles and duties are clearly defined and how such roles relates to other roles or department in order to minimize conflict of effort.
Therefore, the role and duties of marketing department in banks or any financial institution cannot be left out for every financial institution to work efficient as expected.
Bank can be defined as financial institution that accept money from the surplus spending unit and gives to the deficit spending unit, to earn a living. Also it can be viewed as an intermediate between the surplus spending unit (depositor) and the deficit spending unit (borrowed). For effective economic activities.
Bank needs marketing department to achieve its organization goals, using marketing mix.
Therefore there is no way to explain the impact of marketing concept and market segmentation and the relationship with bank marketing concept, according to evil borden and mc earthy of Harvard university is the idea process or strategy used in achieving organizational objectives. From the marketing.
Point of view, for important areas about which decision needs top be made are:-
Sometimes referred to as 4ps of marketing, they are known collectively as the marketing mix, must or almost every marketing activity are centered on the so called marketing mix. This marketing mix is related to the marketing activities in the bank as explained below:
Product is defined as any tangible goods that can be easily consumed. But in the content of banking industry product does not really mean tangible goods by financial services rendered by banks to both actual and potential customers. Some of the product (financial services)m rendered by banks are:
1. Cash handling
2. Money transmission
5. Financial advice
Pricing is the process through which the exchange of a product is made easier. Pricing is the contact of marketing is a process through which the product is offered in to the market to satisfy the customer needs and brings profit to the firm.
Pricing the product (financial services) rendered or offered by a bank is often more difficult than making pricing decision in a manufacturing outfit.
In determining the price of banks a number f factors will be considered.
1.) Bank customer relationship
2.) Special offer
3.) Customer attitude / mode of operation
The purposes of production are not satisfied. If product price does not reach the customer.
Therefore, it is important to relate place as one of the marketing mix to the banks head offices, branches and agent are the right place where product (financial services) are marketed.
Banks because of competitive array of operation needs promotion to let its buyers be aware of both existing and new services and to get customer informed about the use of new services promotion is prominent because of the following:-
1. Greater competition between banks
2. Increases in new services to attract customers attention.
1.2 STATEMENT OF PROBLEM
There are many reasons for organization to adopt marketing strategy for management effectiveness, but, varies from one organization to another.
The major reasons which can be identified for the design and option of marketing strategy in an organization, particularly in banking sectors include the following.
1. Identify the needs of the customer
2. Providing service to meet the identified and at the right price time and right place.
3. Making some profit meeting customer needs.
1.3 OBJECTIVES OF THE STUDY
The objectives of this research work is to determine the relevance of marketing department in most banks, other objectives of the study are as follows:
1. To know the application of marketing mix that is suitable in the banking industry between the customer and the bank staff.
2. To know how the service in banking sector affect the economy of a nation.