strategic marketing and banks' profitability2.doc

8/9/2019 STRATEGIC MARKETING AND BANKS' PROFITABILITY2.doc

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CHAPTER ONE (INTRODUCTION)

1.1 BACKGROUND OF THE STUDY

The financial institutions particularly the banks are economic decision units established

for the purpose of providing financial services to its target market, with a primary

objectives of making adequate returns or profits to investors without neglecting other

social objectives to the society. For the overall corporate objectives of prosperity, growth

and continued life of the business, bank needs to conscientiously structure their services

in a way that can cater for the financial needs of not only the present customers but also

the prospective ones. It is in the long-term interest of the banks to increase the customers

confidence. Thus, the need for this makes market increasingly important and necessary in

todays banks competitive environment and to pay particularly attention to relevant

marketing strategies.

!bviously, due to the nature of services in general, which "tanton #$%&$' describes as

intangible, inseparable, heterogeneous, perishable and fluctuating demand( and banks

services in particular marketing in this sector cannot be treated in e)actly the same way

as for physical products of manufacturing firms. It is important to recogni*e the two

fundamentally different perspectives. In marketing bank services, bank must attract

depositors on one hand, and also attract the borrowers on the other hand, this double

sided nature of banks business brings marketers of other physical products. The

individual objective is to ma)imi*e satisfaction while that of the organi*ation is to

ma)imi*e profit.

+arketing strategies cannot be discussed fully without talking about marketing mi) and

marketing segmentation. otler #$%%' defines marketing mi) as the set marketing tools

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that the firm uses to pursue its marketing objectives in the target market. These variables

are referred to as the four /s of marketing 0 product, price, promotion, place1distribution.

+arket segmentation is based on the fact that each group of buyers has certain

characteristics in common when making a buy decision. These characteristics1features areconsidered while segmenting a market. It is the task of breaking the total market into

divisions that share common proprieties. 2 market could be segmented according to

customers si*e #large, +edium and small'. 3ustomers buying criteria #quality, price and

service' and so on.

2 bank that has genuine marketing department or unit should be able to provide all leveland segments of line management with relevant information about customers attitude

and needs, about their legal constraints, about changes in market conditions, about

competitive activities as a basis for business development of new services or approaches

related to identified customers needs or market conditions, sales communication

materials designed to help achieve business development within and outside the

organi*ation, education of banks employee in those marketing skills which are necessary

for the effective and efficient performance of this jobs.

The level of profit is strongly and directly dependent on the type of marketing strategies

put in place. 4ow perfectly are these strategies combined and implemented varying from

one organi*ation to the other. The more perfectly implemented there are, the better tends

to be the profitability of any bank. 4ence, we find some financial organi*ations being

more successful than others. In essence, profit level of any financial institution is

influenced positively or negatively by the sort of marketing strategies in e)istence.

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The marketing strategy lay down the plan to be followed for the achievement or

attainment of the organi*ation objectives. It is highly dynamic( hence, the marketing

managers sit down from time to time to redefine and improve on an already set strategy

in line with the changes in the society. In doing this, sound marketing tactics, budget andcontrols are also necessary to be put in place before a strategy is set the target marketing

must be known. These are the group of customers that the organi*ation intends to focus

on as per the sale of its product or services, other outside the group are of secondary

importance.

1.2 STATEMENT OF THE PROBLEM

5espite the fact that most banks engage in rigorous marketing of their product and also

go e)tra mile to win customer to their favors, it is observed that majority of these are not

captured by these strategies. The infused efforts, time and money e)pended on marketing

yield rewards compared to the resulting generated profit.

The reasons for this inverse relationship between marketing strategies and profit could be

traced to certain circumstances, the reason include tardy response to customers complain,

arrogance of staff, in conducive banking environment, strict competition, poor

management and many (others pertinent reasons may lead to unsuccessful marketing

strategies. It has also been observed that in the face of a strict competition and taking into

cogni*ance the dynamism and sophisticated nature of modern banking services marketing

strategy coupled with other au)iliary factors are needed for good performance and

consolidation of any bank. 6ust of recent the 378 announced that out of the 9 banks

presently operating in the country, less than half of these banks could complete favorably

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within the economy let alone the international market. The role of marketing strategy

cannot however be over emphasi*ed here.

1.3 OBJECTIVES OF THE STUDY

The main purpose of this study is to discuss the impact of marketing strategy on the

profitability of banks in 8igeria, others are:

• To identify role of banks in the economy and the things put in place to perform

these functions.

• To gain insight into the relationship between marketing strategy and profitability.

• ;valuate activities embark upon by banks to sell products and the problems

encountered in marketing them.

• ;valuate marketers performance towards the achievements of the main corporate

objectives of the organi*ation #profit ma)imi*ation'.

• /rofit recommendations for improvements of overall performance of bank.

1.4 RESEARCH QUESTIONS

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The hypotheses for be tested for the purpose of determining the effects of marketing

strategy on banking effectiveness.

4>/!T4;"I" I

4?: +arketing strategies do not influence customers patronage.

4$: +arketing strategies influence customers patronage.

4>/!T4;"I" II

4?: There is no relationship between marketing strategy and banks

performance

4$: There is relationship between marketing strategy and banks performance

1.! RELEVANCE OF THE STUDY

The importance of this study is basically to e)plore the core of marketing and its

usefulness to attainment of organi*ational objectives. +ore so it is to allow the research

to know more about these strategies and it relevance .finally, it is to contribute to the

e)isting knowledge on the role of marketing strategy on profitability, which is the subject

matter.

This piece is however e)pected to be useful to students, managers, professional and

others who are likely to be interested in knowing more on the subject matter.

1." SCOPE AND DELIMITATION OF THE STUDY

This project will e)amine the impact on marketing strategies on the profitability of banks.

The research work will also focus on areas like various marketing strategies of banks,

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ways of mobili*ing deposits and effect of marketing strategies on the overall performance

of the bank.

This will also attests to the fact that marketing strategy is crucial in address the problem

of dwindling productivity in 8igeria organi*ations. The study will therefore focus on:

@ The importance of marketing strategies on organi*ational performance in relation

to its growth and survival.

@ It is also geared towards highlighting various strategic measures for achieving

effectiveness in an environment driven by competition and globali*ation.

1.# LIMITATION OF THE STUDY

The study shall be limited to the organi*ation selected as case study due to:

@ Financial implement because the study of this nature requires huge amount of

money which might be outrageous to independent research

@ Time: The time allocated for this study is definitely short coupled with non-

challenges attitude of the respondents towards the study.

1.$ DEFINITION OF TERMS

M%&'*+,- This has been defined as the creation of profit to the bank or

the organi*ed effort on the part of a business to find tomorrows market

opportunities today.

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M%&'- 2 market concept is an important substance of feature of

modern marketing. otler #$%&&' points out that marketing concept as a

business philosophy hold the key in achieving organi*ational goals.

M%&'*+, &%&/0- 3an be defined as the objective gathering, recording

and analy*ing of all facts about problems relating to the transfer and sales of

goods and services from producer to consumers.

M%&'*+, *- This consists of those controllable variables, which a firm can

use to influence consumer respond favorably and stimulate profitable sales.

P&*+- This is a key ingredient in marketing campaigns( it consists of

diverse collections of incentives tools, mostly short term designed to stimulate

quicker or greater purchase of particular product or service by consumer or

trader.

M%&' ,+%*+- This is the breaking down, building up of potential

buyers of product, service or idea into group, portion or segment.

M%&' &%,- This is concerned with market #group of buyers' and

development of programs to reach the market.

A56&**+,- This is defined as any paid form of non-personal presentation

of ideas, goods and services by an identified and sponsor.

1.17 HISTORICAL BACKGROUND OF FIRST BANK OF NIGERIA PLC

First 7ank of 8igeria /lc. is a leading bank in 8igeria with over one hundred years of

banking e)perience, industries and resilience behind it. Founded in $&%A by a shipping

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magnate from Biverpool, "ir 2lfred 6ones, the bank commence as a small si*ed

organi*ation in the office as ;ider 5empster and co. in Bagos. Today First 7ank of

8igeria /lc. has diversified into a wide range of banking activities and has become potent

factor in the development of the financial service sector of the economy.

2 limited liability company founded on the C$st +arch $&%A, with head office in

Biverpool under the name D7ank of 7ritish


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competition that necessitated a considerable re-organi*ation of the bank with attendant

decentrali*ation structures introduced to enhance operational and reporting structure. This

signalled the era of globali*ation in First 7ank, a brand with aggressive banking,

decentrali*ed decision making process and responsive directorate system is now a pillarof the current an efficient operation mode.

The bank has maintained its leadership in financing long-term development of economy,

which started in $%A with long term colonial affiliation. Today, the 7ank boasts of

diversified portfolio to various sector of the economy. Its rural banking records facilitate

through community farming loan scheme to corporate and international products iscommendable for it has accorded the bank a recipient of various awards. The truly the

first bank is a five recipient of the 378 farmers merit award and other notable local and

international awards for efficiency. The story of First 7ank is in essence the story of

banking in 8igeria.

2 dynamic and well managed pioneer bank with wide network of branches embraces the

international market scene with the establishment of a wholly owned subsidiary in the

Jnited ingdom in the name of F78 #J' Bimited, this was followed up with the

establishment /aris office to serve as a marketing base to service francophone


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REFERENCES

2nderson, /ail F. #$%&9': +arketing, "trategic /lanning and the Theory of the Firm:

6ournal of +arketing, A #"pan', $ 0 9 5ay, George #$%%A', The 3apabilities of

+arketing 5riven !rgani*ations: 6ournal of +arketing, & #!ctober', C 0 9.

5ickson, Koger, and others#$%&' +arketing 3oncept and 3onsumer !rientation:

;uropean 6ournal of +arketing 3oncept, +arketing, 9? #$?', $& 0 9C.

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CHAPTER T8O

LITERATURE REVIE8

2.1 INTRODUCTION

This chapter of the study shall critically e)amine literature of other theorists or authors

from journals, te)tbooks( articles act in order to get their perception on the research work

as it affects organi*ational performance in 8igeria.

"uccessful organi*ations are those that most efficiently correspond with their

environment. The responsibility of this environmental contact typically lies within the

domain of marketing and the development of appropriate marketing strategies.

The area of marketing strategy has received considerable attention in the last two decades

both in the marketing literature and in the business world. The reasons for this growing

interest in this area are varied, but mostly due to the dramatic changes in the overall

business environment.

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2.2 GENERAL FRAME8ORK OF THE STUDY

The general frame work of the current study hypothesi*e that the credibility of marketing

strategy depends on the e)ternal business environments, and its formulation process. The

credibility of marketing strategy and the strategy formulation, in turn, determine the

effectiveness of the marketing strategy implementation. The strategy implementation

affects the organi*ational performance.

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Strategy

formulation,

Innovative, culture,Analytical Caa!ility

"#ternal

"nvironment,

tec$nological,

c$ange,

mar%eting

cometitivene

&&,

Cre'i!ility of

mar%eting

&trategy

Strategic

Imlementatio

n mar%eting

management(&

comitment

evaluation an'

control

)rgani*atio

nal

erformanc

e +nancial

an'

&trategic

erformanc

e


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;)ternal environments are the surrounding conditions in which decisions are made and

actions taken. These includes e)ternal business environment such as market

attractiveness, technologies changes and market competitiveness credibility of market

strategy refers to the quality of marketing strategy. It also indicates the realism, accuracy,specificity, consistency, completeness, and validity of the marketing strategy.

"trategy formulation refers to the process of developing, the marketing strategy.It is a

multidimensional process, which involve the internal organi*ational conditions such as

innovating culture, top management support on the formulation process, the analytical

dimension e.t.c

"trategies implementation refers to the actions initiated by the organi*ation to reali*e theformulated marketing strategy.

/erformance refers to the functioning of the organi*ation as a result of the

implementation of the marketing strategy. The results are measured by economic terms,

seen as sales and profit.

The firm consists of unique business units, each offering an e)tensive array of products

and services. "trategies and implementation strategies must be developed and e)ecuted at

the corporate, business unit, and product levels. !verall, strategy and long term planning

are guided by the firms visions are stated in their mission statement. 2t the business level,

planning begins with an e)amination of the current situation, including technologies

changes and competitive effects. From this analysis, both treats and new business

opportunity are identified. 5ecisions to pursue new opportunity are followed by the

establishment of objectives, often stated in terms of market shear, sale volume or

portability. "ubsequently, business and marketing strategies are designed to achieve those

objectives. ;ffective e)ecution of strategy implementation must then occur for objectives

to be reali*ed.

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!rgani*ations can be classified into corporate, business, and functional levels and discuss

strategy planning and strategic decision making at each level. !ur focus is based on the

role of marketing.

2.3 ORGANI9ATIONAL VALUES

The corporate level is the highest level on organi*ation. 3orporate managers address

issues concerning the overall organi*ation, and their decisions and actions affects all

other organi*ational levels. The business level consists of units within the overallorgani*ation that are generally managed as self-contained business. The idea is to break

comple) organi*ations into smaller units to be operated like independent business. This is

the level at which competition take places( that is, business units typically compete

against competitor business units, not corporate level versus corporate levels.

The functional level includes all the various functional area, within business units. +ust

of the work of a business units is performed in its different functions.

2 typical university provides good illustration of different organi*ational levels. The

presidents, vice presidents, and other central administrations positions represent the

corporate levels. The different colleges within the universities, such as college of business

or college of art and science, can be considered business units. There are also different

functions performed within each college. The typical functions are teaching, research,

and administration carried out by faculty, staff, and administrators.

2.4 ORGANI9ATIONAL STRATEGIC PLANNING

"trategic planning for multi business, multiproduct organi*ations typically occurs at each

organi*ational level. "trategic plans at higher organi*ational level provide directions for

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strategic plans at lower levels. In a sense, lower levels plans are developed to e)ecute

higher level plans. 7ecause of this relationship, strategic planning must be integrated and

consistent throughout level.

2 study of J." and "outh 2frican firms provides a general description of strategic

planning. These firms reported that the major benefit of strategic planning are improved

performance relative to objective and a better organi*ational focus and vision. +ust of

the firm prepare formal strategic plans at the corporate, business and product levels, with

different functional managers participating in the planning process= These include sales

managers, product managers, marketing researchers, productions managers and financial

managers. +any firms also incorporate costumers into the process.

T: ; S&%,*/ P


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3orporate 3orporate strategic plan • 3orporate vision

• 3orporate objective and

resource allocation

• 3orporate growth

strategies

• 7usiness unit

composition

7usiness 7usiness strategic plan • +arket scope

• 3ompetitive advantages

+arketing +arketing strategic plan • Target market approach

• +arketing mi)

approach

/roduct marketing plan • "pecific target market

• "pecific marketing mi)

• ;)ecution action plan

T0 &%,*/ P


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G+&%< &%,*/ :


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+arketing management relate to specific product marketing strategies. It differs from

strategic marketing in its basic orientation. "trategic marketing focuses on broad strategic

decisions at the corporate and business levels. +arketing management is concerned, by

contrast, with specific strategic decisions individual products and the day-to-dayactivities needed to e)ecute these strategies successfully. 2t the operating level,

marketing managers must focused on the four ps of marketing mi): price, product,

promotion and place #distribution' the strategic role of marketing and marketing

management are now in a period of considerable change and evolution. These changes

are due to a number of important environment phenomena that are effective the way

many firms do business. !n the supply side, the modern-day unlike does very little

manufacturing of its own and focuses largely on marketing. In this view companies such

as this are actually embedded in business networks comparison strategic alliances among

suppliers, distributions and the marketing firm.

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2.. CORPORATE STRATEGY DECISIONS

The key corporate strategy decision and corporate vision, corporate objectives and

resources allocation, corporate growth strategies and business unit composition

CORPORATE VISION

2 corporate vision represents the basic values of an organi*ation. This vision specifies

what the organi*ation stands form, where it plans Togo, and how it plans to get these. 2

comprehensive vision should be address organi*ation market, principal products and

services, geographic domain core competencies, objectives, basic philosophy, self-

concept, and desired public image. The ability to develop vision depends on the company

is understanding of what should be enduring and what is subject to change. 3ompanies

that enjoy enduring success, such as 4ewlett-/ackard, +otorola and /rocter L Gamble,

have core values and core purposes that remain fi)ed, but they endlessly adapt their

strategies and practices to a changing world. 2 companys core values are the smallest of

guard principles that represent that endure tenants of an organi*ation. 3ore purpose

reflects the companys reason for being or its idealistic motivation for doing work.

"ometimes organi*ations develop a formal mission statement to communicate thecorporate vision to all interested parties. 2 mission statement can be unimportant element

in the strategic planning process because its specifies the boundaries within which

business units, marketing and other functions must operate.

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C&:&% V**+ C:++.

- +arkets

- /roduct and services

- Geographic domain

- 3ore competencies

- !rgani*ational objectives

- !rgani*ational philosophy

- !rgani*ation and self-concept.

- 5esired public image.

The statement emphasis the importance of quality products, company performance and

employee success, and the social responsibility aspects of business one study found that

companies, with a formal vision out performed similar companies, without a formal

vision by more than si) to one. This are list functions that a firm top managers should

continually ask themselves in efforts to install a corporate vision for effectively

competing in the future. The last two questions form the basis for recent views of

successful competition( that is the firms comparative advantages and distinctive core

competencies are the resources for competitive advantage. 3ore competency reflects a

bundle of skills that are possesses by individuals across the organi*ation. The core

competency federal e)press possess in package routing and delivery rests on the

integration on bad technology, wireless communications and network management.

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ii. Through which channels will u reach customers ion the future=

iii.


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PRODCUTS

"2+; 8;<

+arkets penetration /roduct e)pansion

+arkets e)pansion 5iversification

2 product e)pansion strategy calls for marketing new products to the same market. The

organi*ation unit to generate more business forms the e)isting customer base.

2 diversification strategy requires forming to e)pand into new oviducts and new

marketers. This is the riskiest growth strategy, because the organi*ational cannot builddirectly on its strengths in its current marketers or with its current products.

2 corporate growth strategy is important to an organi*ation long-term performance.

+any firms employ severed growth strategies, simultaneously. 4owever, other firms

pursue one basic corporate growth strategy.

B>*+ U+* C:**+

In pursuing its corporations growth strategy, an organi*ation may operate in a number of

different product and market area. It does so through business units designed to

implement specific business strategies. 2 strategic business unit focuses on a single

product or brand, a line of product or mi) of related product that meet a common market

need or a group of related needs, and the units management is responsible for all #or

most' of the basic business functions.

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r % e t &

0 e 1

S a m e


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+arketing strategy is the emphasis at the strategy business that #"7J' level where the

focuses is on market segmentation, targeting and positioning in defining how the firm is

to compete in its chosen business. 4istorically, the configuration of firms business units

has been evaluated in terms of market share and market growth using some variation ofthe bottom consulting group growth share matri).

The matri) classifies the companys /art olio of strategy business units into four

categories: stars, cash dogs and question mark. 3ash cows have large market share in

slower- growth market, 5ogs, candidates for deletion or divestment have midst market

shares in low-growth market. The remaining category question marks, includes strategic business that are problems. Ideally these units with low markets share but residence in

high- growth markets should be supported and invested into spur market share.

This view has proven useful over the years as a method for organi*ing and evaluating the

mi) of strategic business unit contained in company product1business part olio.

3onsideration of strategy at the business unit level enables management to stay in closer

truth with customers competitors and cost and to maintain strategic focus.

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S*:


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2 business strategy consists of a general strategy as well as specific strategies for the

different business function such as market. The general strategy is based on two

dimensions: market scope and competitive advantage.

M%&' /:

+arket scope refers to how broadly the business views its target market. 2t one e)treme,

a business unit can select a broad market scope and by to appeal to most consumer in the

market. The business might consider all customers part of one mass market( mores likely,

it will divide the total market into segments and target all or most of those.

C:**6 %56%+%,

3ompetitive advantage refers to the way a business tries to get consumers to purchase its

products over those offered by competitors. Two basic strategies are again possible. 2

business can try to compete by offering similar products and services as competitors, but

at lower prices. "ucceeding in a low-price strategy typically requires the business unit to

have a lower cost structure then that of competitors.

2 business may also complete through differentiation that is offering consumer

something, different from and better than competitors products. If it is successfully in

achieving the desired differentiation, the business can typically charge higher price than

its competitors do.

2.". MARKETING STRATEGY DECISIONS

2 marketing strategy addresses the selection of a target market and the development of a

marketing mi). +arketing strategies are developed as functional( strategies at the

business unit level and as operating strategies at the product level. The two strategies

differ in specificity of decision. 7usiness strategy decisions are relatively general,

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intended to provide direction for all business level marketing activities. /roduct strategy

decisions are very specific, because they guide the actual e)ecution of marketing

activities for individual product.

BUSINESS MARKETING STRATEGIES.

2 business marketing strategy must be consistent with the general business strategy. For

e)ample, if the general business strategy includes a focused market scope, the target

market strategy must concentrate on only a view market segment, perhaps only one. If thegeneral business strategy is low price, the price strategy must be low price. 2side from

these obvious constraints several strategic options are typically available in each

marketing strategies product marketing strategies.

PRODUCT MARKETING STRATEGIES

/roduct marketing strategies require very specific decisions. The target market is defined

in detail, the product futures and portions specified, e)act prices established, actual

dealers and a detailed communication programmed developed.

These decisions must be consistent with both the general business and the business

marketing strategies. The unit decides on each product within the business product line,

sets price within the business product guideline, use appropriate dealers and develops a

communication strategy similar to the business communication strategy.

B>*+ %+5 :&5>/ %&'*+, &%,*

5ecision area 7usiness marketing strategy /roduct marketing

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strategy

Target market "egmented or mass approach "pecific definition of

target marked to be saved

/roduct 8umber of different product "pecific features of each

product

/rice General competitive price level "pecific price

5istribution General distribution policy "pecific distributor

+arketing

communication

General emphasis on marketing

communication tools

"pecific marketing

communication programs.

I+&+%*+%< M%&'*+, S&%,*

+arketers must address two keys area a when developing international marketing

strategies. "electing an entry strategy and deciding on a strategic orientation

E+& &%,

2n entry strategy is the approach used to market product in an international market. The

basic options include e)porting, joint venture, and direct investment.

;)porting is a method so selling products to buyers in international markets. The e)porter might sell directly to internationally buyer are used intermediaries, such as e)porting

firms from the home country or importing firms in that foreign country. 5irect

investment, where the marketer invests in production, sales, distribution or other

operations in the foreign country.

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In between these e)treme are various joint-venture approaches. 6oint ventures include any

arrangement between two or more organi*ations to market product in an international

market.

I+&+%*+%< S&%,*/ O&*+%*+

Firms operating in international markets can use two different orientations towards

marketing strategy.


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functional area to develop a customer focus in all functional areas to collect useful

marketing information about customer and to improve customer relationship.

M%&'*+, T%&'

;ven within marketing functions, teams works is not universal. 5ifferent marketing

functions often operate somewhat independently advertising people perform advertising

activities, sale people sell product, brand manager managed their branch, and marketing

researches engage manage research. +any firms have little coordination among the

different marketing functions. Today, however, the leading organi*ations are coordinating

their marketing efforts and requiring closer contact among the different marketing

functions.

C%&'*+, %


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7riggaduke ;.K #9??$' the contribution of marketing to strategic managementN

academy of management review #A' 9$-C9

5ay G." #$%%' 2ligning the organi*ation to the marketN in Keflections on the futures of

marketing Behman, 5.K and .; 6ocs, ;ds 3ambridge: +arketing "cience

Institute, -%C

5eshpande, K and 6.F.; ork, +cGraw- 4ill publishing.

2lli, 6.! #$%%9'8ew /roduct 5evelopment a "trategic +anagement 2pproach to

+arketing of bank "ervices: 2 case study of Trade 7ank /lc, +72 thesis

unpublished.

2nsoff, 4.I #$%%' The changing shape of the strategic problem

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"chendel 5.; and 4offer 3.


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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

2sika 8 #9??A'( defined research design as a frame work for conducting the research

project by obtaining the required information that are necessary in solving identified

problem in research. It involves the determination of a suitable method of gathering

information about a phenomenon.

There three types of research design: e)ploratory design, descriptive design and empirical

design. ;)ploratory design focused on finding information about a phenomenon by

carrying out feasibility study on the project before embarking on it( descriptive design is

method of providing systematic information about a phenomenon as they e)ist while

empirical design is a means of gaining knowledge by means of direct observation or

e)perience.

The study shall be carried out using descriptive design with the aid of a well-designed

questionnaire. This will be presented to the respondents to proffer answers to the outlined

questions. The responses will then be analy*ed as a basis of forming opinion on the study.

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3.2 POPULATION OF THE STUDY

/opulation is the aggregate number of objects in the study area( in other words, it is

regarded as the total number of respondents penciled down for the study and it forms the

basis for generali*ation.

Therefore, the population consists of the members of staff of First 7ank of 8igeria /lc.

The 7ank has staff strength of ,CA spread across A%9 branches all over 8igeria.

4owever, a sample frame will be drawn to constitute the working population in order to

aid critical evaluation and serve as the basis for generali*ation of the study. The sample

frame, therefore, shall constitute the nominal role of the entire staff of the Bagos

5irectorate of the 7ank spread across ? branches in Bagos state. The 5irectorate is made

up of $,?$ personnel cut across the hierarchy of top level, middle level and lower level

cadre.

3.3 SAMPLE SELECTIONSI9E

"ample is a small portion of a population, which is selected for observation. It involvessystematic choosing of a limited number of units to represent the total population of First

7ank Bagos 5irectorate. The sample becomes a basis for predicting fact regarding a

bigger population.

"ampling si*e is the number or percentage of the population, which are selected by

sampling method as samples for investigating the entire population. Therefore, a sample

si*e of ? respondents will selected from the entire staff of First bank plc. Bagos

5irectorate, through a random selection from the population. Kandom sampling is chosen

in order to minimi*e cost and time of the research

3.4 SAMPLING TECHNIQUES

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The sampling design used for the study is probability sampling in which the respondents

are selected at random without bias for age, se), or hierarchical status of the respondents.

4owever, stratified sampling technique involving grouping of respondents into junior

level, middle level and top level management will be used. It is mainly to get theresponses of the respondents on the issue.

3. INSTRUMENTATION

3ollection of data is a very crucial step in research process. Findings cannot be validated

without appropriate data. In this research work, the main instrument for data collection is

close ended questionnaires with scale questions using a three-point scale style to assess

the degree of intensity of issue in the respondents feeling and perception. 2 questionnaire

is a list of questions that are being arranged in a logical order for the purpose of

collecting data required in solving a particular problem at hand. The questionnaires are

distributed to the respondents that are e)pected to supply required information.

The questionnaire will be divided into two parts vi*:

- ";3TI!8 2: The bio-data section is meant to obtain data relating to the

respondents background as a basis for obtain a balanced view of the respondents on the

subject.

- ";3TI!8 7: 3ontained a well-constructed questions relating to the impacts of

management controls on organi*ational effectiveness. These will form the basis of

obtaining information on the subject and provide a basis for evaluation and test of

hypothesis

3.! PILOT STUDY

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/ilot study will be conducted as a pre-test of the study. This is to ensure the adequacy of

the instrument to provide sufficient information for answering research questions and test

hypothesis( therefore, pilot study shall entail the distribution of 9? copies of the draft

questionnaires and shall be subsequently retrieved to validate the adequacy of theinstrument.

3." ADMINISTRATION OF INSTRUMENTS

The major instrument for this research work is questionnaires. 2 total of ?questionnaires were administered( its target were the members of staff of the organi*ation

chosen for the study and it is administered with bias for gender, status in the organi*ation

and years of e)perience.

The researcher will administer the instruments and retrieve it immediately for the purpose

of interpretation and evaluation.

3.# VALIDITY AND RELIABILITY TEST

In assessing the validity of the questionnaire used for gathering information from the

respondents, a pilot test will be conducted and validated in the process( and then a sample

of ? respondents from the entire population and the questionnaires administered on

them. 4owever, the study shall be tested for reliability at ?.?O level of significance to

show the correlation between independent and dependent variables.

3.$ PROCEEDURE FOR DATA ANALYSIS

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The data generated in the course of the study shall be analy*ed via simple percentage

while hypothesis shall be tested with the use of chi-square statistical analysis.

The formula for chi-square test statistics is written below:

P9 H F ; #fo-fe'9

Fe


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REFERENCES

2sika 8 #$%%$' Kesearch +ethodology in behavioral science,Ibadan: Bongman

publisher

Ibikunle, ". !.#9??' Kesearch +ethods and "tatistics, Theory and 2pplications, Bagos:

2blek ;nterprises and co.

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CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

This chapter provides detailed analysis of administration of respondents bio data and

individual statement. Insight will also be given on te)t of hypothesis and discussion of

findings.

4.2 ADMINISTRATION OF RESEARCH INSTRUMENTS

The questionnaire were administered by the researcher to the employees of the

organi*ation used as case study, out of seventy #?' questionnaires administered, si)ty

#?' were effectively filled and returned.

4.3 ANALYSIS OF RESPONDENTS BIODATA

Table A.C#$' se) distribution

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"e) 3ode Kesponses /ercentage

+ale $ A?

Female 9 9? CC

Total ? $??

"ource: Field survey

The analysis shows that A? respondents are male while 9? respondents are Female

representing O and CCO respectively.

Table A.C#9' 2ge 5istribution

2ge 3ode Kesponses /ercentage

9$-C? $ $? $

C$-A? 9 C &

A$-? C ?& $C

$ above A ? $9

Total ? $??


The table above show that $? respondents within the age bracket of 9$-C? years and

respondents are between C$-A? years C respondents are A$-? years while respondents

above $ years representing $O &O $CO $9O respectively.

Table A.C#C' marital status distributions

+arital status 3ode Kesponses /ercentage

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"ingle $ A

+arried 9 $ 9

Total ? $??


The analysis shows that A respondents are "ingle while $ respondents are +arried

representing O and 9O respectively.

Table A.C#A' ;ducational 7ackground

;ducation 3ode Frequency /ercentage

Gce1


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Table A.C#': >ears in organi*ation

Kesponses 3ode Frequency /ercentage

$- $ C &

-$? 9 $ 9

$? above C $? $

Total ? $??


The table indicates that C respondents spent between $- years with the organi*ation, $

respondents spent between -$? years with the organi*ation, while $? respondents spent

between $years and above with the organi*ation representing &O, 9O and $O

respectively

Table A.C#' "tatus in the organi*ation

"tatus 3ode Kesponses /ercentage

6unior $ $ 9

"enior 9 C &

+anagement C $? $

Total ? $??


The table indicates that $ respondents are junior staff with the organi*ation, C

respondents are senior staff with the organi*ation, while $? respondents are +anagement

with the organi*ation representing 9O, &O and $O respectively.

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4.4 ANALYSIS OF RESPONDENTS RESPONSES

Question $: +y bank has a well- documented marketing policy.

Table A.A#$'


>es $ ? &C

8o 9 $? $

Jndecided C ? ?

Total ? $??


The table show that ? respondents answered >es while $? respondents answered 8o

representing &CO and $O respectively. Thus, it can be concluded that the maintained a

well- documented policy for its marketing activities.

Question 9: The marketing strategies and policy is drawn in line with the events in

the environment

Table A.A#9'


>es $ C? ?

8o 9 99 C

Jndecided C & $C

Total ? $??


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The table shows that C? respondents answered yes while 99 respondents answered

8o while & respondents were undecided representing ?O, CO and $CO

respectively. Thus, it can be decided that the bank strategic formulation reflects

trends in the business environment.

Question C: The bank uses multi-various strategies to win customers patronage.

Table A.A#C'

!ption 3ode Frequency /ercentage

>es C A?

8o 9 9? CC

Jndecided $ ? ?

Total ? $??


The table show that A? respondents answered >es while 9? respondents answered

8o representing O and CCO respectively. Thus, it can be concluded that the

bank use multi-various strategy to win customers appeal.

Question A: The marketing strategies are in line with the overall objectives of the bank

Table A.A#A'


>es C A?

Female 9 $& C?

Jndecided $ 9 C

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Total ? $??


The table show that A? respondents answered yes, $& respondents answered 8o

while 9 respondents answer undecided representing O, C?O and CO

respectively. Thus, it can be concluded that the strategic marketing formulations

are in line with the overall strategies and objectives of the bank.

Question : The banks market strategy is friendly and customer oriented

Table A.A#'


>es C C &

8o 9 9? CC

Jndecided $ &

Total ? $??


The table show that C respondents answered yes, 9? respondents answered 8o while

respondents answer undecided representing &O, CCO and &O respectively. Thus, it can

be concluded that market strategies are effective if it is friendly and customers- centered.

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Question : The market strategy influences the overall performance of the banks

products

Table A.A#'


>es C C? ?

8o 9 9? CC

Jndecided $ $? $

Total ? $??


The table shows that C? respondents answered yes, 9? respondents answered 8o while $?

respondents are undecided representing ?O, CCO and $O respectively. Thus, it can be

concluded that strategic marketing influences products performance.

Question : 3ustomers often patroni*e the banks services due to it marketing policy.

Table A.A#&'


>es C A

8o 9 $ 9

Jndecided $ ? ?

Total ? $??


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The table show that A respondents answered >es while $ respondents answered 8o

representing O and 9O respectively. Thus, it can be concluded that strategic

marketing influences customers brand appeal.

Question &: +arketing strategies enhance the overall performance of the bank.

Table A.A#&'


>es C C &

8o 9 9 A9

Jndecided $ ? ?

Total ? $??


The table shows that C respondents answered yes while 9 respondents answered 8o

representing &O and A9O respectively. Thus, it can be concluded that effective strategic

marketing enhance organi*ational performance.

Question %: +arketing strategies affects the banks decision making process.

Table A.A#%'


>es C ? &C

8o 9 $? $

Jndecided $ ? ?

Total ? $??


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The table shows that ? respondents answered yes while $? respondents answered 8o

representing &CO and $O respectively. Thus, it can be concluded that strategic

marketing influences organi*ations decisions.

Question $?: +arketing strategies improve the banks competitiveness

Table A.A#$?'


>es C C? ?

8o 9 9? CC

Jndecided $ $? $

Total ? $??


The table shows that 9? respondents answered yes, $? respondents answered 8o while C?

respondent answered undecided representing CCO, $O and ?O respectively. Thus, it

can be concluded that strategic marketing formulation and implementations enhances

competitiveness of an industry.

4.4 TEST OF HYPOTHESIS

4>/!T4;"I" I

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4?: +arketing strategies do not influence customers patronage.

4$: +arketing strategies influence customers patronage.

Kesponses !ij ;ij !ij-;ij #oij-eij'9 #oij-eij'9 1eij

>es ? 9. 9C.CC AA.9&&% 9?.A$

8o $? 9. -$. 9.&&&% $?.A9

Jndecided ? 9. -9. $$9.9&&% 9.

Total ? .?

P9 H .?

5egree of Freedom

df H #n-$'

#K-$' #3-$'

#C-$' #9-$'

#9' #$'

9

5ecision Kule

2ccept null hypothesis if the calculated value is less than the critical value and reject null

hypothesis, if it is less than the calculated value.

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Therefore, since the critical is less than the calculated value, null hypothesis #4o' that

marketing strategies do not influence customers patronage is rejected while the

alternative hypothesis #4i' that marketing strategies influence customers patronage is

accepted.

4ypothesis II

4>/!T4;"I" II

4?: There is no relationship between marketing strategy and banks

performance

4$: There is relationship between marketing strategy and banks performance

P9H$.?

5egree of Freedom

df H #n-$'

#K-$' #3-$'

#C-$' #9-$'

#9' #$'

9

49

Kesponses !ij ;ij !ij-;ij #oij-eij'9 #oij-eij'9 1eij

>es C? 9. C.CC $$.?$ ?.A$

8o 9A 9. -9. .$C ?.9

Jndecided 9. -9?. A9.9 $.?9

Total ? $.?


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2ccept null hypothesis if the calculated value less than the critical value and reject null

hypothesis if it is less than the calculated values.

Therefore, since the critical is less than the calculated value, null hypothesis #4o' that

there is no relationship between marketing strategy and banks performance is rejected

while #4i' That says there is relationship between marketing strategy and banks

performance is accepted.

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CHAPTERFIVE

SUMMARY CONCLUSION AND RECOMMENDATIONS

.$. "J++2K> !F T4; "TJ5>

The research study aimed at the impact of marketing strategies on the profitability of

financial institutionN. 4ow the marketing strategies can be effectively applied to enhance

the performance of banks and thereby provides selective solution to customers problems

and build long-term satisfactory relationship with them so as to reali*e the strategic

corporate objectives on the long-run.

The study shows that marketing strategy has been seriously considered as a vital and

reasonable tool to improve banking performance in a highly competitive business

environment #world', as it reveals various strategic plans necessary at all organi*ational

levels, as integrated marketing effort developed through marketing research to satisfy

customers so that bank can achieve its corporate goals, that particularly these affecting

shareholders.

It describes the relationship between companys strategy and its performance, as well as

the influence of the e)ternal and internal environments well as these strategy, tactics and

performance. It needs that the strategy determines the company performance, while the

strategy itself is shaped by market structure and competitive position of the firm. The

study also depicts that besides influencing the strategies competitive position #advantage'

and market structure have a direct impact on a banks performance.

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C.9. 3!83BJ"I!8" 5K2


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;nvironmental factors should be well designed and reflect in the

organi*ation strategic planning process.

+arketing strategies should be set as a yardstick in which the bank

performance would be determined.

"trategic marketing should be planned in such a way that the primary

objectives of the organi*ations will be reali*ed rather than the marginal or

secondary objectives.

To this end if the above mentioned comment can be materiali*ed, the 8igerian banking

environment will be able to create a strategic marketing platform for business

organi*ation to improve their performance thereby providing customers satisfaction and

ma)imi*e profitability.

BIBLIOGRAPHY

2ndersan, 3.K and 3./. Teithaml, #$%&A', stage of product life cycle business strategy

and 7usiness performance,N academy of management 6ournal, 9#$', -9A.

2ndersen, /aul F. #$%&9': +arketing "trategic /lanning and The Theory !f The Firm:

6ournal of +arketing, A #"pring', $-9.

53


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7riggadike, ;.K #9??$', the contribution of marketing to strategic management,

academy of management review, #A' 9$-C9N

5ay, George #$%%A', the capabilities of market driven organi*ations, journal of

marketing. & #!ctober', C-9

5ay, G.". #$%%', 2ligning the !rgani*ation to the +arketN, In Kefection on the futures

of +arketing, Behman, !.K. and .;. 6ocs, ;ds. #3ambridge: +arketing "cience

Institute, 0 %C.

5eshpande, K and 6.F.;


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"tanton,ork, +cGraw- 4ill publishing.

2lli, 6.! #$%%9'8ew /roduct 5evelopment a "trategic +anagement 2pproach to

+arketing of bank "ervices: 2 case study of Trade 7ank /lc, +72 thesis unpublished.

2nsoff, 4.I #$%%' The changing shape of the strategic problem

"chendel 5.; and 4offer 3.


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6ohnson, G. 2nd "choles, . #$%%C' ;)ploring corporate strategy, Crd ;dition,

/rentice 4all.

/orter, ;.+. #$%&' 3ompetitive 2dvantage, the Free /ress, Bondon.

Ibikunle ".! #9??' Kesearch methods and statistics: Theory and applications, Bagos,

2blek ;nt. L 3o.

Fagbemiye ;.! #$%%%': Guidelines for writing assignments( Bagos: Jniversity of Bagos

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