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This study is designed to reveal to banks especially the
three selected commercial banks, the importance of marketing in
the banking industry. However, because of the increase in
competition in the industry these days, banks are marketing
conscious and are restless in their services development and
innovation pursuits. This study is set, to determine the role (s)
which marketing plays in banking activities.
However, the sample survey method was used to gather
information from bank staff and customers of First Bank Nig. Plc.,
Union Bank Nig. Plc., and Chartered Bank Nig. Plc., all located in
Onitsha metropolis. Some selected customers and bank staff
were used in the formulation of sample size of 80 for the
customers and 86 for the bank staff. The researcher tested the
hypotheses through the use of chi-square and presented the
results in tables reflected in chapter four.
However, after analyzing the various data gathered, the
researcher came up with the following findings. That First Bank of
Nig. Plc., Union Bank Nig. Plc. And Chartered Bank Nig. Plc.,
Onitsha are marketing oriented banks and undertake many
marketing functions.
There are good cordial customers relationship between the
banks and their customers, hence the institution and designation
of the position of relationship marketing officer in these banks.
The banks are customer oriented and have integrated marketing
in their operations arising from the adoption of marketing
In the light of the foregoing, the following recommendations
were made, viz:-
1. That Banks must be customers oriented in order to
remain at the apex of the industry.
2. That Banks must find out what the customers wants are,
and develop profitable products and services to meet
them so that satisfied customers are guaranteed to
enable them remain leaders and maximize profits.
3. That bank must restructure and harness the benefits
arising from re-engineering, through training and
development of their human resources.
This work has become a reality due to the invaluable support
and assistance of many people. Hence, my unqualified thanks and
appreciation goes first to God who made it possible for the
successful conclusion of my masters degree in Business
Administration (MBA) in marketing.
I owe unlimited loyalty and indebtedness in perpetuity for
gratitude to my late parents Chief and Mrs. J.M. Ihekweazu who
gave me the foundation of education.
I am most grateful to my Supervisor, Dr. K.N. I. Nkem Erudite
Scholar and Guru of marketing, for his caring, understanding, and
maturity in handling matters. Despite his tight schedules and
heavy academic load, he found time to read and correct this
Further, I am grateful to my uncles Mr. C.N. Ihekweazu,
Honourable S. M.C. Ihekweazu, my elder brother, Mr. P.C.
Ihekweazu, Sister Veronica and others for their invaluable
care and understanding throughout the period of my studies.
Equally, I owe unlimited gratitude to my course mates and
class representative Mr. Oliver Okoro for his support and
I am also grateful to my numerous well – wishers, may God
bless them Amen.
Title Page: :: :: :: i
Approval Page: ::: ::: :: ii
Certification ::: ::: ::: iii
Dedication: ::: ::: ::: iv
Abstract: ::: ::: ::: v-vii
Acknowledgement: ::: ::: ::: viii-ix
Table of Contents:: ::: ::: ::: x-xiii
List of Tables: ::: ::: ::: xiv
1.1 Background of the Study ::: ::: 1-6
1.2 Statement of Problem ::: ::: 6-7
1.3 Objective of the Study ::: ::: 7
1.4 Research Hypothesis ::: ::: 8
1.5 Significance of the Study ::: ::: 8-9
1.6 Limitation of the Study ::: ::: 9
1.7 Scope of the Study ::: ::: 9-10
1.8 Definition of Terms ::: ::: 10-14
Reference Chapter One :: :: 15-16
Review of Related Literature
2.0 Historical Background :: :: 17
2.1 Need for Marketing of Bank Services 17-19
2.2 Marketing and Services ::: 19-22
2.2.1 Intangibility ::: 22
2.2.2 Non Profitability ::: 22
2.2.3 Lack of Marketing Concept ::: 23
2.2.4 Lack of Standardization ::: 23
2.3 External Environmental Factors affecting
Marketing of Banking Services in Nigeria 24
2.3.1 Economic Conditions ::: 25
2.3.2 Demography ::: 26
2.3.3 Political Forces ::: 26
2.3.4 Competition ::: 27-28
2.4 Corporate Marketing Philosophy 28-30
2.5 Marketing Mix and the Nigerian Banker 31
2.5.1 Product ::: 31-32
2.5.2 Promotion ::: 32-37
2.5.3 Pricing ::: 37-38
2.5.4 Distribution and Place :: 38-39
Highlights on the First Bank Nig. Plc., Union Bank of
Nigeria Plc and the Chartered Bank of Nig. Plc.
2.7 Banking and Financing Systems in Nigeria 42-44
2.8 History of Banks under Study :: 45
2.8.1 First Bank of Nigeria Plc. :: 45
2.8.2 Union Bank of Nigeria Plc. :: 46
2.8.3 Chartered Bank of Nigeria Plc. :: 46-47
Reference Chapter Two :: :: 48
Research Methodology
3.0 Introduction :: :: :: 49
3.1 Area of Study :: :: :: 49
3.2 Sample Size :: :: :: 50
3.3 Sources of Data :: :: :: 50
3.4 Design of Questionnaire :: :: 51
3.5 Method of Data Collection :: :: 51-52
3.6 Method of Data Analysis :: :: 53
3.7 Hypotheses / Statistical Techniques:: 53
Data Analysis, Interpretation and Presentation
4.0 Introduction :: :: :: :: 54
4.1 Test of Hypotheses 1 :: :: 54-58
4.3 Test of Hypotheses 2 :: :: 58-62
4.4 Summary :: :: :: :: 62-65
5.0 Findings, Conclusion and Recommendations 66
5.1 Findings of the Research :: 66-70
5.2 Conclusion :: :: :: :: 71
5.3 Recommendation :: :: :: 72-74
5.4 Bibliography, Questionnaire and Appendix 75-77

4.2 Presentation of Evidence – CUSTOMER
4.3 Presentation of Evidence – STAFF
Engaging an expert with marketing orientation in a
bank many years ago would have been considered a
misnomer. This is because marketing was considered
applicable only to goods and not services for which
commercial banks belonged. In order words, banks are now
fully marketing conscious and have an equipped marketing
department with an expert in the field at the helm.
However, before inept insight on “the Role of Marketing in
the Commercial Banks in Anambra State” a purview of the
development of commercial banks industry in Nigeria is
The business of modern banking started in Nigeria
in1892 with the establishment of African Banking
Corporation. The bank existed for two years and had its
assets and liabilities taken over by the bank of British West
African in 1894, which later changed to the Standard Bank
and is now known as the First Bank of Nigeria Plc.
In 1917, Colonial Bank (Barclays Bank and now Union
Bank of Nigeria Plc.) was established.
Other banks that were established during the
Neophytic banking era include, the Nigeria Merchant Bank
(1931), Agbommagbe Bank, 1945 (now Wema Bank), the
African Continental Bank Plc (now ACB International Bank
Plc. 1947) to mention a few. The failure of many banks
during the outset of the neophytic banking era led to the
regulated banking era of 1952. it is on record that the
activities of these banks centered on commercial banking
with much emphasis on the financing of exports and
imports activities and does not contribute much on
industries until recently.
Nigeria has got to the realm of world awareness with
amazing speed in the recent past. The present economic
situation in Nigeria portrays different pictures to what the
situation was some twenty to thirty years ago; hence, it
caught the fancy of many industries and commercialists
from every sector of the global activities.
There is the changing industrial and technological
landscape in the attempt to diversify the economy, the
changing management and administrative technique in all
the sectors, the increasing international outlook of the
business sector and above all, the changing tastes
expectation and increasing sophistication of the people all
of which have had tremendous impact on the marketing of
goods and services in Nigeria.
Marketing has increasingly become necessary in
today’s banks competitive environment. Competition from
other financial institutions has forced banks to think
seriously on effective competition. This has made them to
pay increasing attention to marketing techniques required
for banking services.
However, as emphasized by FOLUSO OLALUSI (1989)
in his book, “The practice of banking” the marketing of
banking services relate to identifying and stimulating client
needs which can be profitable satisfied by the banks”.
Marketing search light in banking focuses on increasing the
deposit base of the banks and inducing credits worthy
customers to borrow at a profit.
This differ clearly from marketing of goods which is
merely to stimulate customers into buying while the banks
‘buys’ the deposit of customers, it again ‘sells’ the deposit
to borrowing customers at a rate slightly higher than the
price paid for the deposit. In other words, banks lend at a
rate slightly higher than the prime rate.
The need for the marketing of banking services has
become necessary as a result of the continuous change in
the social economic technological and political environment
and this has effect on the shape and nature of markets
served by the banking industry. Equally, the increase in the
number of banks and other financial institutions and their
operating branches has given rise to competition among
institutions producing financial services. Also, banks
operate in a near perfect market. No bank can substantially
influence the homogeneity in services rendered.
Therefore, the marketing of banking services by the
commercial banks require a calculated and planned
orientation with best blend and effective marketing mix to
know what, who, where and how to tackle this over
dynamic situation for the survival of the banks and the
achievement of their corporate objective. No wonder
Joseph C. Massie 1979 describes marketing mix as the
apportionment of effect and the combination designed and
integration of the element of marketing into a programme
which on the basis of appraisal of the market forces will
best achieve the objective of an enterprise in a given
period. The marketing mix includes pricing, product,
promotion and distribution.
Marketing of banking services is not just seeing the
services from the eyes of the bank users, but also being in
the right market at the right time with the right service at
the right place. This entails planning, support of top
management, improved trend in banker – customer
relationship and organization of wide acceptance of the
marketing philosophy.
The introduction and adoption of the concept of
marketing principles as they apply in the marketing of bank
services would therefore, help the commercial banks in
general to have an edge over their competitors.
Banks do not consider marketing necessary. But with
competition, changing taste, desires and needs of
customers, banks are now marketing conscious and they
are up on their toes, in their attempt to deliver value to
their customers.
However, it looks like most banks have not adopted
the marketing concept, or integrated Marketing in their
Therefore, banks need to be customer oriented in
order to create and maintain customers, whose patronage
will always be assured or guaranteed.
In the light of the foregoing, it has become necessary
to determine the role (s) which marketing play in
commercial banks vis-à-vis the three selected banks under
This topic has been chosen because marketing of
banking services in Nigeria is now facing serious
competition. However, this study is aimed at finding out the
following: –
1. To find out the role which marketing plays in banking
2. To find out why are there slow procedures for
granting bank facilities.
3. To find out the extent to which marketing concept
has been adopted by commercial banks.
4. To find out whether there are qualified marketing
professionals in the banks.
Under the working hypotheses the under listed items
will be used for Null Hypotheses (H0) and alternative (Hi).
These include:-
1, Hi – Banks that apply marketing concept do not have
satisfied customers.
Hi – Banks that apply marketing concept have
satisfied customers.
2. Hi – Cordial relationship between bank staff and bank
customers will result in high customer loyalty.
This study will make it possible to examine the
operational efficiency of the three selected commercial
banks in Onitsha Metropolis in order to evaluate the effect
of the introduction of marketing concept and adoption of
integrated marketing in their operations and their services.
The three selected commercial banks will know how
to satisfy their customers. The studies will therefore, reveal
to the three-selected commercial banks the importance of
customer relationship and complaint management. Also the
importance of marketing in the banking industry will be
exposed through this study. The study will benefit the three
selected banks, as findings of this study will improve their
services to their customers and profit for the banks.
The study of this nature entails that a lot of hurdles
will have to be crossed. For the success of this study,
several hindrances were encountered. These include
constraints, difficulties and financial predicaments.
However, in spite of all this impediments, several
materials were eventually sourced by the researcher
including information from the commercial banks, which
include: – (First Bank of Nigeria Plc., Union Bank of Nigeria
Plc., and Chartered Bank of Nigeria Plc., all in Onitsha
This study aims at the role of marketing in commercial
banking services will be limited to the following banks, First
Bank of Nigeria Plc., Union Bank of Nigeria Plc., and
Chartered Bank of Nigeria Plc., all located within the
Onitsha metropolis.
In view of the foregoing, the scope of the study
among others covered the following areas:-
1. Role of marketing in commercial banking services.
2. The need for marketing of banking services.
3. The need for cordial relationship between the bank
customers and bank staff.
Banks: – A bank is simply an institution, which
accepts deposits from the public and in turn advances loans
by creating credit.
Again, ordinary banking business consists of changing
cash for bank deposits and bank deposits for cash;
transferring bank deposit from one person to corporation
(one depositor) to another giving bank deposits in
exchange e.g. government bonds etc.
Old Generation Banks
Old generation banks are banks established during
the colonial government.
New Generation Banks
They are banks, which sprang up and got quoted in
the Nigerian Stock Exchange during 1980s and 90s.
Marketing involves identifying customers’ needs and
providing goods or services to meet those needs profitably.
Marketing Services
This may be different from marketing goods because
services are intangible, different from each individual buyer
and often dependent on the person providing the service.
Marketing Strategies
Successful bank marketing needs to be related to the
bank’s overall strategy.
Marketing Plan
Marketing should be based on a plan, which uses an
analysis of the present situation to identify objectives,
which can in turn lead to action plans. Marketing plan needs
to be flexible enough to meet the needs of different levels
of the organization as circumstances changes.
Marketing Research
This involves carrying out research to make sure
marketing plans are relevant to customers needs. This may
take the narrow form of market research or the broader
marketing research.
Marketing Decision
Most marketing decisions are related to four key
areas, the four elements of the marketing mix, product,
price, place and promotion.
Marketing Mix
Is defined as the blending of product, place or
distribution and promotion achieving marketing objectives.
Anything that can be offered to the market for
attention, acquisition or consumption. It includes physical
object services, personalities, place organizations and ideas.
New Product
Products new to the firm major modifications of
existing products (re-launches) duplication of competitors
produce and the product line acquisition of which involves
assimilation of something “new” into the product line.
Bank Product
In banking, the term product refers to the services
offered to customers. Product ranges need to be changed
continuously as new products are developed and old
product dropped.
Pricing Decision
Pricing decision are not simple a matter of calculation
costs and adding on some profit. A number of factors
influence pricing decision, in particular customer attitudes.
Different pricing methods are used according to the
In banking promotion of financial services has
increased enormously:- The most important of promotion is
advertising, for the major banks, this includes extensive
television and press advertising. Banks have also tried a
number of other forms of promotion.
Personal Selling
Personal selling is the process of assisting and/or
persuading a prospective client to buy a bank service or to
act favourably on an idea that has commercial significance.
In banking, personal selling is of special importance in
financial services because customers expect good advice
and may see branch staff as financial experts.
That which cannot be touched or grasped by the
All activities, benefits or satisfactions, which are
offered for sale or are provided in connection with the sales
of goods.
1. Chartered Bank Annual Report and Accounts, June, 2003,
P. 4
2. Ekezie, E.S. (1999) “The Elements of Banking” Africana
Fep. Publishers Ind., Onitsha, P. 122
3. First Bank (1998) In House journal, Lagos, Nigeria P. 4 –
4. Henderson, M.J. (1988) “Banking Operations” D.P.
Publications Ltd., London P. 104
5. Massie, Joseph C. (1979), “Essentials of Management”,
Prentice – Hall, U.S.A., P. 10
6. Nkem, K.N.I. (1999) “Sales Promotion, Onitsha: Kinin
Publishing Company.
7. Nkem, K.N.I. Lecture Practicum, MBA 2000/2001 class
works on “Marketing Management” Dept. of Marketing,
Unizik P.G. School, Awka.
8. Olalusi, Faluso (1989) “The practice of banking”, Tradon
Publishers Nigeria P. 24
9. Onuigbo, Okonkwo (1986) “Banking & Finance for
Professional Examination” Vol. 1 (Aba), JONKES Standard
Press Ltd., P. 216


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