IMPACT OF MARKETING STRATEGIES ON DEPOSIT MOBILIZATION IN ZENITH BANK IN UYO AND EKET, AKWA IBOM STATE
This study examined the impact of marketing strategy on deposit mobilization in Nigeria banks with restriction on Zenith bank, Akwa Ibom State. The study made use of the survey research design. The population of the study consisted of staff of Zenith Bank branch, Uyo and Eket Akwa lbom State. The study aimed at identifying and analyzing marketing strategies for deposit mobilization of banking industry in Nigeria. A random sampling technique was used in drawing the size of 120 respondents. Data collection was with the use of structured questionnaires for deposit marketing strategies used in banking industry in Nigeria. Two hypothesis were formulated and tested at 0.05 alpha level of significance.
Chi-square statistical tool was used to test the influence of the research variable. The stated hypothesis were rejected in favour of the alternative hypothesis which stated that marketing strategies aid and improved deposit mobilization in the banking industry. It was recommend that marketing strategies in the banking industry of Nigeria should be improved and given adequate attention for high performance.
Impact of Marketing Strategies on Deposit Mobilization in Zenith Bank
1.1 Background of the study
The application of marketing concept in business organization in Nigeria today is yet to reach its complete awareness, talk more of banking industry where it is believe that marketing can only practice as a minima level of exceptional classes. A well-designed marketing strategy can make all the difference between success and failure in the market place, ideally drawn from the market research, it focus on the ideal product mix to achieve maximum profit potential. The members of families posing discretionary income are increasing and the amount of money available for various essential buying decision can be withdrawn if not post at will by the customers. Only adequately sustain increase productive capacity and ensure profitable operation in the banking industry.
Achieving marketing excellence in an organization is difficult but its effects is felt throughout every organization with the growing emphasis on satisfying customers. Here emphasis has therefore been shifted to the total business performance, the coordinate management effort of producing for the market. The success of a bank depends upon the ability to satisfy customers financial instrument to a successful banking operation.
The need for a marketing strategy in banks started because of intense competition, not from other banks but also from other financial companies, building society, credit loans insurance companies etc. also this completion within and outside the banking sector had resulted into reforming strategies that is marketing strategies. It is very necessary 1or organizations to understand customer’s behavior, his wants, the price he is ready to pay for satisfying those wants, his alternative in terms of suitability, quality, value, availability etc. All these do change overtime as the interacting variable change.
Marketing must constantly seek to identify and measure the dynamics of the societal behavior. It is to this end that I have chosen to write a project and the subject matter, marketing at all levels of dealings, be it Banking or No-Banking industry are pleased with the options and zenith international bank is not an exception to this golden injunction.
This research work however will tend to evaluate the impact strategies on the performance of the organization with a locus on the deposit banks in Nigeria.
1.2 Statement of Problem
After series of consultant and discussions. we are made to understand that marketing strategy has taken the base firm from the publication of reasoned analysis of the likely consequence of unconstrained consumption. But in his context, it will be helpful to review the board argument in order to support the basic economic growth as necessary condition for improving standards of living, and the market has a vital role to play in optimizing the growth process.
Effective advertisement is also lacking in the contemporary deposit banking system which has also taken a paramount and salient feature in determining the survival of bank among competitors. Most of these banks failed to choose an effective medium of advertisement as one of the strategic marketing process to counter their competitors in the banking sector.
The study is aiming at find out several challenges facing the bank and these arise from the following problems areas. Inability of organizing to fully identify and understand customer needs, develop product(s) and satisfy these needs profitably. Similarly, the wrong application of a marketing strategy on certain segment of the market were such application require a careful use of the marketing mix had also been observed as one of the limiting factors against the achievement of an improve performance in the banking sector, for instance, the 4ps (price, place, product and promotion). Most deposit banks performance has been hindered because they failed to conspire and placed high importance to these concepts.
Effect of Marketing Strategies on Deposit Mobilization in Zenith Bank
1.3 Purpose of the Study
The objectives of this project is to examine the impact of marketing strategy on deposit mobilization in Nigeria banks, which includes: The degree of awareness among the banks as to who their customers are, the quality of the deposit rendered and the profits recorded from marketing operations compared with their competitors. A redefinition of the bank’s market to be customers deposit oriented rather than service oriented and how the various related problems dully identified, can be addressed and the future prospect for a more economic within the system.
An examination of the extent to which policy and regulatory guidelines effect market operations as well as the bank’s own marketing strategies and organization polices. Finally, to impact the marketing of bank’s deposit on the development of the banking industry in particular, and the Nigeria economy in general.
1.4 Research Questions
In line from the problem stated above, this research work would examine the following specific questions.
- Does intensive advertising have significant impact on the deposit bank performance?
- How does bank deposit mobilization identify and understand the customers need and desire to satisfy them profitably?
- Does market strategy have a prudent management in the banking Sector?
- How will market strategy affect the operational efficiency in the banking sector?
The Influence of Marketing Strategies on Deposit Mobilization in Zenith Bank
1.5 Research Hypotheses
The hypothesis that constitutes the bottom line of this research with regards to the study objective is stated below.
Ho: That marketing strategy will not bring about prudent management in the banking industry
H1: That marketing strategy will bring about prudent management in the banking industry
Ho: The marketing strategy would not affect the operational efficiency in the banking industry.
HI: The marketing strategy would affect the operational efficiency in the banking industry.
1.6 Significance of the study
In Nigeria, deposit banks are very important because they are responsible in conjunction with central bank of Nigeria (CBN) for the supply and redistribution of money in the economy. This research work is of immense importance to marketing managers as it serves as a reference for them in terms of finding solutions to most problems that hinder the development of banking services. The research is also of importance to the staff of (Zenith International bank) as it provides and empower them on how to improve their services rendered to customers and to market these services better.
The study is also important to the management of Zenith international bank and other banks as it will give an insight into some of the problems that retard profitability, efficiency and effectiveness which bring about low performance level. Being an academic researcher, the study will be of great importance to the academic community as it will contribute to the existing knowledge in the area of marketing strategies, other researcher will also benefit from this research work as it will enhance their knowledge, perception and understanding of market strategy concept. The research will also serve as a basis for further research into market variables that influence performance.
1.7 Scope of the Study
The gamut of this study will cover the deposits banks in Nigeria as a major catalyst to economic growth in Nigeria with an emphasis of zenith international bank at Akwa Ibom State all other financial institution will not be covered by the scope of this study. The research will limit itself to studying the effect of marketing strategies on deposit bank mobilization only; all other variables that affect performance of banks in Nigeria will not be considered.
1.8 Limitation of the study
Limitations envisage in this research work are:
- Restriction on data generations, the data obtained was restricted to the case study.
- Time frame of this research work in another limitation as more time may be required to make more finding
- Distribution and retrieval of questionnaires from respondents (bank official and clients) might also constitute limitation as we may not be able to retrieve all questionnaires.
- Also there might be financial and transportation constraints to this study as these two factors will be at our capacity which might not be enough to give us desired results.
1.9 Definition of terms
Marketing: the action of business or promoting and selling product and services
Marketing Strategies: A process that can allow an organization to concentrate it limited and scare resources on the greatest opportunities to increase sale and achieve a competitive advantage
Marketing mix: A planned mix of controllable element of a product marketing plan commonly terms as 4ps: Product, price. place and promotion
Deposit: When you put money into a bank account
Deposit Mobilization: This is related to the creation of credits by making finances and by investing in various financial markets through the bank.
Customer: A person or organization that buys goods or services from a store or other business.
Lawson Peter – Chief Editor in Projectvilla Nigeria. A writer and academic researcher.