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A SURVEY ON PROBLEMS OF MARKETING COMMERCIAL BANK SERVICES

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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

For bank to survive in   today’s growing dynamic highly competitive bank environment the marketing  of the banking service is indeed inevitable so that they can serve its customers with a well tail over package and creating programme in order to meet adequately  the various needs of its customers and other company specific requirements. Marketing starts when one social unit anticipates identifies  and designs the feature of a product or services to march the need structure of other social units.  These efforts are made with the intent to obtain a transaction between competent social units Okafor U. (2014)

The marketing concept as a management orientation according to Philip kofler holds that the key to achieving organization goal is imbibed in the organization determining the need and wants of target market undercutting  itself to delivering the desired  satisfaction more effecting and efficiently than its competitors.  Bank marketing therefore could be described as the process through which banks affect and keep customers by designing  and offering service and inventions that make banking advantages to those customers. Marketing  did not come into banks with “marketing  concept but with the advertising and promotion concept.

Banks were facing increased completion and a few stinted to embark on aggressive advertising people to a    bank in easy but converting them to loyal customers is difficult hence the interdiction of the marketing concept. Here they had to formulate programmes to please these customers and in achieving this they tried to offer a veracity of financial and specialized service to them. They used tried to install a lot of effective systems for efficient marketing analysis implementation and control (kotler, 2014) The central bank of Nigeria (CBN) has the responsibility of defining the requirements for the establishment of various classes of bank have on their own defined  their service requirement some example are shown in the table over-leaf

TABLE OF SERVICE REQUIREMENTS

Name of bank

Classification of services

Nature of financial requirement

Nature of services required

NAL merchant bank

Whole sale banking

Accept large deposits for major financiers

Provisions of leans for long term projects and ensuring the service of such leans.

Nigeria bank for commerce and industry (NBC)

financing and merchant banking

Equity capital grant from federal government and CBN plus short falls on loans to small and medium seals enterprise

Cranking of loans share under writing , project identification and feasibility studies.

Union bank of Nigeria plc

Commercial

Required to deposit 200,000,000,as capitalization fee

Provision of loans and short term credit facilities  the needing public

Nigeria industrial development bank

Aiding industrial development

Total assets are 50.4 billion naira

Provides credit and other facilities to industries

First bank Nigeria plc

Commercial

Required to deposit 200,000,000 as capitalization fee.

Provision of loans and short term credit facilities to the needing public. Form this we discover that different kinds of banks provide different service and the service of commercials banks are unique because they meet the personal needs of their customers.  It is an the strength of this uniqueness that a definition of commercial banks and their services will be given.

Commercial bank can be defined as those banks whose naira purpose is to grant short term loans to individuals grounds organizations and government agencies and channel them to more profitable investments (Okafor. U  2014) commercial  banks provide a wide range of service to their different customers.  There service identified separately via the provision of satisfaction and they have the  following characteristics.

(a) inseparability: The provider of  each service cannot be separate from the service itself .

(b) perish ability: service cannot be stored till later without loss of revenue no matter have much business is generate on subsequent days.

(c) heterogeneity: The service differ since it is impossible for a customer to get the same level of service on each trip to his bank.  This make it difficult for the bank to standardize each unit of the same service package to different customers.

(d)  intangibility: these service rendered cannot  be touched or felt. Through research   discoveries commercial.

PROFILE OF UNION BANK OF NIGERIA PLC

Union  bank of Nigeria plc was established as a commercial  bank in Nigeria in 1917 with the name colonial bank. After a merger with some other banks in the union kingdom  in 1925 the was christened “Bardays” bank dominion.

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