MARKETING CONCEPT, ITS APPLICATION BY FINANCIAL SERVICE INDUSTRIES (A CASE STUDY OF ZENITH BANK NIGERIA LIMITED)

Abstract

This study was on marketing concept, its application by financial service industries. Using zenith bank as a case study. Five objectives were raised which included; To find out if customers of Zenith bank are satisfied with quality of services they received, to ascertain if the service behaviour of bank personnel is in consonance with the requirements of the marketing concept, to find out if zenith bank gives adequate training and instruction to their staff on the importance and mechanism for implementing the marketing concept, to find out if customers make their withdrawals or deposits quickly and with ease, to ascertain if the environment of the Zenith bank is comfortable and conducive for customer services and transactions and to determine if customer’s complaints and problems are adequately and effectively addressed.. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from zenith bank Enugu. Hypothesis was tested using Chi-Square statistical tool (SPSS).

 

Chapter one

Introduction

1.1Background of the study

The marketing concept is an important management philosophy used in the operation of business today.  But before this concept came to be accepted, there were other business philosophies such as the production and selling concepts.  However with the change of circumstances and prevailing competition in the business world the marketing concept emerged and came into focus.

As competition between businesses geared up it became imperative to turn attention to customers needs and wants.  The marketing concept arose to challenge all other previous concept, the marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors.

The marketing concept is a management philosophy, orientation or frame of mind which the marketer works with.  It is based on a market focus customer orientation co-ordinate and profitability (Kotler 1997, pp. 19 – 23).  Marketers have long argued that the marketing concept is the appropriate philosophy for conducting business.  Simply stated the marketing concepts suggest that an organization should satisfy consumer needs and wants in order to make profits.  To implement the marketing concept organizations must understand their consumers and stay close to them to provide products and services that consumers will purchase and use appropriately (Peter and Oston: 1996 p. 6).  From what is being seen and read today in the society not all business organization adopt the marketing concept for example midst of scarcity the customer is not the king rather it is the seller that is the king most companies do not relay grasp or embrace the marketing concept until they are driven to it by circumstances like sales decline, low growth, changing of patterns by customers competition and increase in market expenditure.  There is now fierce competition in the banking industry in Nigeria.  This competition could be traced to 1986.  The banking environment in Nigeria before the late 1980s was less turbulent than after wards.

However with the deregulation of the system in 1986 new banks were licensed.  This led to an increase in the number of commercial and merchant banks from 40 in 1985 to a total of 120 in 1991 when further licensing was stooped.  This fueled competition among banks (Asogwa: 1995, pp. 98 – 1001).

Today after the bitter incidence and experience of bank failures, the surviving banks are still pacing a very competitive environment.  There is now strong battle amongst banks to win customers patronage.

Every bank is facing stiff competition from other banks.  These banks operating in Enugu metropolis including the first generation banks ( Zenith bank, First bank, Afri bank, Union bank and UBA) the new generation banks (All States Trust Bank, Standard Trust bank ad Board bank) community bank, people bank and other financial houses (such as Alex Finance, Amex Savings and Loans Harvard Savings and loans).

Faced with competition, it becomes imperative to engage in sustained and appropriate marketing strategy.  So banks in Nigeria today appreciate the need for marketing their services because they know they cannot survive without using marketing strategies, unlike before when most banks did not consider marketing as being necessary departments which plan their marketing strategies, customer satisfaction has become the focus of banking operations.  This is evident in the way several banks have re-engineered their operations or introduced computers to facilitate their operations to enhance customers satisfaction.  In addition most banks today have introduced new products aimed at attracting and giving customers satisfaction.  In short banking business in Nigeria today has become marketing oriented or more specifically consumer oriented.

However there are still some lapses or gaps in the practice of marketing concept by banks.  Even though the practice of marketing concept has become adopted in banks, we still hear complaints from customers that their needs are not being satisfied.  This is especially the case here in Enugu metropolis where several banks like Zenith bank, first Bank, Standard Trust bank UBA and Union Bank are operating customers are dissatisfied with the service they receive from banks.  They are subjected to extreme discomfort before they can make their withdrawals.  They spend endless hours in the banks before they could effect withdrawals or deposits.  Quite often the behaviour of bank staff does not actually show that they are practicing marketing concept or attaching importance to customer satisfaction.

This study is an effort to determine or discover if Zenith bank of Nigeria PLc operating in Enugu metropolis is actually practicing the marketing concept or whether they are just paying lip service to it, broad bank is used to examine the customers point of view with giving their customers satisfaction.

1.2    STATEMENT OF THE PROBLEM

For many years the marketing concept has not been fully understood or implemented by firms in Nigeria especially in the banking industry often even firms the accepted the marketing concept in principle did recognize that the marketing concept required the organization to change its existing practices dramatically.  In general these firms viewed implementing the marketing concept as a marketing task rather than something in which the entire organization has been involved.

There is poor implementation of the marketing concept by banks in Nigeria.  Most consumers of bank services are not actually satisfied.  There has been a lot of complaints range from those of inefficiency favouritism, long delays in cashing cheques or making withdrawals tardiness in granting loans and/or credits to unfriendly attitude of bank workers.  Considering Broad bank operating in Enugu metropolis could we say that these criticism and complaints are justified?  Has Zenith bank failed to implement the marketing concept?  Are customers dissatisfied with the service they receive from the bank?

1.3    OBJECTIVES OF THE STUDY

The major objective of the study is to ascertain Zenith bank adopt the marketing concept of marketing management philosophy as a corporate policy and whether this concept is being implemented accordingly by bank personnel.

More specifically the objective of the study include:

1. To find out if customers of Zenith bank are satisfied with quality of services they received.
2. To ascertain if the service behaviour of bank personnel is in consonance with the requirements of the marketing concept.
3. To find out if zenith bank gives adequate training and instruction to their staff on the importance and mechanism for implementing the marketing concept.
4. To find out if customers make their withdrawals or deposits quickly and with ease.
5. To ascertain if the environment of the Zenith bank is comfortable and conducive for customer services and transactions.
6. To determine if customer’s complaints and problems are adequately and effectively addressed.

1.4    FORMULATION OF HYPOTHESES

H1:     Zenith bank application of marketing concept leads to increase profitability of Broad bank.

H2:     Customers are satisfied with quality service rendered by Zenith bank.

H3:     Poor management of customer complaints result to decrease in the patronage level of Zenith bank.

1.5    SIGNIFICANCE OF THE STUDY

The most critical factor in satisfying bank performance is giving satisfaction to its customers.  This is especially true in recent times where many banks are now operating in the country and contending or competing for customer’s patronage.  And here in Enugu State we have many of such banks.  The battle to win customers patronage survive and grow is predicated in the ability to give the expected or required satisfaction to customers.  This is why this study is very crucial so that the management of each Zenith bank of Nigeria Plc would know where it actually stands in its ability to give quality and satisfactory services to its customers and then be able to determine the remedial and tactical policies to adopt.

The study will help to enhance the performance of Zenith bank and to give competitive edge over other bank.  In other words, the study will help to expose the short comings of the bank in terms of implementing the marketing concept in discovering their areas of deficiency they will be in a better position to make amends.

It is necessary to implement the marketing concept in modern banking business that involves very stiff competition.  No bank can survive in Nigeria which does not address the issue of consumer or customer satisfaction.  Every bank must use all its resources and work towards giving delightful satisfaction to its customers.

This study will help the Zenith bank in understanding the customer rating of the quality of services they receive and whether they are actually satisfied or not.  It will also enable the bank to evaluate the service behaviour of their personnel who are the ones to implement the marketing concept.

1.6    SCOPE OF THE STUDY

This study is restricted to Enugu metropolis and surveyed the customers and personnel of the Zenith bank.  The study is focused on determining whether the bank has adopted and are implementing the marketing concept and the extent to which the bank is giving satisfactory services to customers.  In this study only individuals operating current and saving accounts were surveyed corporate and government account holders were excluded.

LIMITATION OF THE STUDY

This study was confirmed with some constraint below are some of the factors that delayed the progress and early completion of this work.

1. TIME:This work would have been better that what it is if enough time was given to travel to different part of the country and companies for collection of data.
2. TRANSPORTATION:Due to the high cost of transportation fares caused by bad roads, fuel scarcity, it was not possible to travel to different parts of the country in collection of more data.
3. LACK OF MATERIALS:The unavailability of goods and up to-date textbooks, journals etc libraries and in accessibility of the internet to the common man also hampered the progress of this work.
4. Financial Constraint:As students, there was not enough capital to spend in transportation and fact finding for the research work

DEFINITION OF TERMS

MARKETING: Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience

FINANCIAL SERVICES INDUSTRIES: Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies

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