Improving The Efficiency Of The Nigerian Community Banks Through The Application Of The Marketing Concept

IMPROVING THE EFFICIENCY OF THE NIGERIAN COMMUNITY BANKS THROUGH THE APPLICATION OF THE MARKETING CONCEPT

ABSTRACT

This study, ‘Improving the efficiency of the Nigerian community banks through the application of the marketing concept’, is aimed at determining the extent to which Nigerian community banks (Ndiafia Community bank as the case organization) practice the marketing conception – customer orientation. 

The population of this study is made up of Ndiafia community bank staff and relevant banks customers. In order to carry this study effectively, the researcher used ‘Pilot Survey’ to determine the customer’s sample size as the number of customers of the said community bank were not know.

To ensure that the instrument used for data collection are valid, the researcher insisted on face to face validity method. 

Based on this, relevant test hypothesis were made and analyzed. From it decisions were made.

The study indicates that most of the customers of Ndiafia community bank operates only the traditional type of account savings, current and deposit account. It was revealed that customers waste much time in the said community bank. The analysis also indicates that community banks are still practicing the sellers marketing where the customer has no choice and this means non-application of the marketing concept.

Proper testing of the hypothesis also confirmed the fact that Nigerian community banks are yet to embrace the market concept.

The established marketing department should have their customer’s satisfaction in mind. The volume of marketing activities in their operational system should be increased.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

List of tables

CHAPTER ONE

1.0     introduction

1.1     Background of the study

1.2     Statement of the problem

1.3     Objectives of the study

1.4     Statement of hypothesis

1.5     Scope of the study

1.6     Significance of the study

1.7     Limitations of the study

1.8     Definitions of terms

CHAPTER TWO

2.0     Literature review

2.1     Overview of marketing

2.2     The marketing concept reviewed

2.3     The marketing Mix

2.4     The pillars of the marketing concepts

2.5     Overview community banks

2.6     The concept of efficiency

2.7     The role of marketing in banking

2.8     The role of marketing concept in banking efficiency

2.9     The role of marketing concept in improving the efficiency of Ndaifia community bank.

CHAPTER THREE

3.0             Research methodology

3.1     Research design

3.2     Area of the study

3.3     Population of the study

3.4     Sample size and determination

3.5     Instrument for data collection

3.6     Validation of research instrument

3.7     Reliability of the instrument

3.8     Questionnaire distribution and administration

CHAPTER FOUR

4.0     Data presentation, analysis and interpretation

4.1     Data presentation

4.2     Data analysis and interpretation

4.3     Testing of hypothesis

CHAPTER FIVE

5.0     Summary of findings, recommendation and conclusion

5.1     Summary of findings

5.2     Recommendation

5.3     Conclusion

          Bibliography

Appendix

LIST OF TABLES

“A”

 PRESENTATION AND ANALYSIS OF DATA FROM NDIAFIA COMMUNITY BANK OFFICIALS / STAFF

Table 1

Table 2

Table 3

Table 4

Table 5

Table 6

Table 7

Table 8

Table 9

Table 10

LIST OF TABLES

“B”

 PRESENTATION AND ANALYSIS OF DATA FROM NDIAFIA COMMUNITY BANK CUSTOMERS

Table 1

Table 2

Table 3

Table 4

Table 5

Table 6

Table 7

Table 8

Table 9

Table 10

CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The banking industry is one which had a humble beginning. It dates back to the seventeenth (17^th) century when the Goldsmith with their strong safe for keeping gold aroused the interest of merchants that started keeping their money with he goldsmith for safe custody. Today, the story is different because of the differences from the banks and its divergent services that has increased tremendously. This also involve community banking.

Community banking as a form of specialized unit in banking industry was introduced in Nigerian in the year 1990. When national budget is to provide grassroots financial services to any defied local community whether in the urban or rural areas. This objective includes the provision of

a)                 Financial services to communities lacking them.

b)                To facilitate productive activities in response to the unidentified needs of the community especially in the rural areas and promotion of a national financial system that will integrate all action at the various level of government.

Its finding principle being self- help and community participation.

WHAT REALLY IS COMMUNITY BANK MARKETING? 

Marketing according to the British institute of marketing is a management process that identifies, anticipates and satisfies the requirements of consumers profitably. This definition contains both a concept as technique. The concept places the customer in the fore-front of the corporate thinking. In order word the customer is the king.

However, rational application of techniques should be born in mind so that it should be successful no only economically but also done at a profit to the organization.

 Community bank marketing is thus defined as the application of marketing concept in the performance of community banking operations. This pre-supposes that the key to achieving organizational goals of the community bank consist of determining the needs and wants of the target market and tailoring operation towards the satisfaction of such needs and want at a profit to the bank.

WHY SHOULD COMMUNITY BANK MARKETING BE INTRODUCED

 The sales orientation has characterized the marketing of financial services in Nigeria. This is so because the community banks have been operating in the sellers market like other commercial banking, where the customer has no choice.

However, with recent and constant innovation, stiff competition and market alynamism, the trend is fact getting obsolete. In Nigeria today, we have over 150 community banks operating full capacity of the banking function. In the height of the above dispensation, those who are dynamic will compete favourably as new products and innovations are appearing in the banking industry. Suffice it today that only those who survive the competition will see the green light today and in near future. This competition can effectively and efficiently be done through the proper application of the marketing principle ie hearing favourably to the needs of customers (customer orientation).

1.2            STATEMENT OF THE PROBLEM

In the current area of excess liquidity, long waiting lines, conspicuous consumption and wasteful spending coupled with the fact that “Esusu” a primitive means of saving money is still prevalent even among the educated salary earners. It is obvious that he community banks are yet to tap full, their marketing potentials in the country.

The issue of community banking scheme has attracted several write-ups, seminars and symposia. Many writers have identified the problems of the community banking operators. The issue now is; how effective and efficient are these banking scheme?

It has been observed that non-application of the marketing concept affects the efficiency of the Nigerian community banks.

These are some of the questions that are orienting the mind of the researcher.

1.                 How can marketing management concept be applied effectively in community banking scheme?

2.                 What effect has marketing research on community banking operations?

3.                 To what extent does poor marketing strategies affect Nigerian Community banks.

4.                 What are the effect of staff motivation problems.

5.                 What innovations are brought about by community banks which is aimed at customer satisfaction.

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