DEPARTMENT OF BANKING &FINANCE, IMPACT OF MARKETING OF FINANCIAL SERVICES ON NIGERIA BANKING SYSTEM “USING UNION BANK OF NIGERIA PLC







IMPACT OF MARKETING OF FINANCIAL SERVICES ON NIGERIA BANKING SYSTEM
 “USING UNION BANK OF NIGERIA PLC, ILORIN BRANCH AS A CASE STUDY,
TABLE OF CONTENT
Title Page
Certification
Dedication
Acknowledgment
Table of contents
CHAPTER ONE INDUCTION
1 .1   Historical background of the study https://www.facebook.com/obinotech
1 .2   Statement of the study
1 .3   Justification of the study
1.4    Objective of the study
1.5    Scope and limitation of the study
1.6    Definition of term
1.7    Research methodology
1.8    Capitalization
CHAPTER TWO LITERATURE REVIEW
2.0 Review of literature
2.1 Historical background of union bank plc 15
2.2 Strategy of marketing banks service. 18
23     Marketing philosophies in the context of services in the commercial bank.
2 4    Business advisory services
CHAPTER THREE RESEARCH METHODOLOGY
3.0    Research methodology
3.1    Types and source of data collection
3.2    Primary data
3.3    Secondary data
3.4    Method of data collection
3.5    Impact of marketing service on banking system
3.6    Problem of marketing banking services.
CHAPTER FOUR DATA PRESENTATION AND ANALYSIS
4.0    Data presentation and analysis
4.1    Introduction
4.2    Presentation and analysis of data according research Questionnaire
4.3    Data technique
4.4    Data design
4:5    Hypothesis
4.6    Generalization base on Tested hypothesis
CHAPTER FIVE: FINDING, SUMMARY, CONCLUSION,
RECOMMENDATION
5.0    Finding
5.1    Summary
5.2    Conclusion
5. 3   Recommendation
References
Appendix
CHAPTER ONE: INTRODUCTION
1.O   HISTORICAL BACKGROUND OF THE STUDY
The economic turbulence of the last decades has posed many challenges to marketing management all over the world. Changes in growth rate, relatively high inflation rate, high interest rate necessary more aggressive rivals are facing many firms and need to respond and adapt for survival and prosperity has made many firms in which banks are not exempted to appreciate the importance of a good marketing philosophy.
Success of a firm means finding way of doing things to achieve maximum effectiveness in the application of resources to meet customer’s need.
In this way, firms are obliged to scrutinize every area of expenditures to minimize waste and maximize returns.
The introduction of 13- point Reform Agenda in which 2 (two) out of them has been implemented i.e. with drawl of public fund from banks and introduction of .N100 billion re-capitalization has led to sanity in the banking industry and also made the sector to remain for the survival of the fittest. These has led to the introduction of a lot of restructuring and introduction of innovative services upon which good and comprehensive marketing strategies of various banking services are built to attract more customers and retain the patronage of the existing ones.
The introduction of this research work cannot be completed without looking or tracing the historical background of the commercial bank in Nigeria. The initiative for the establishment of bank was taken in the Lagos office of Eider Dumpster Company by the people who were merchants without any special knowledge of banking and with the support of the colonial government, the formation of bank of British West Africa (BBWA) was announced in may, 1893. The bank was renamed Bank of West Africa (BWA) in 1956 to reflect the new independent status of the West Africa countries served by the bank. In 1969, following changes in ownership structure of the parent company in the U.K. The bank was further renamed Standard bank Nigeria Limited (SBNL). Basic changes in the equity structure of the bank leading to majority equity holdings by Nigerian institutions and individuals during the period 1973 — 1978 necessitated further change of name and in 1978, the company was renamed First Bank of Nigeria Limited. Other important aspects of development took place in the equity structure, management and loans policies of the bank.
Commercial banking predicts central and merchant banking in Nigeria; hence the awareness for making institutionalized savings was primarily induced by the commercial banks. These banks form the nucleus of the banking system.
Their major sources of funds are deposit liabilities applied primarily to, investment in financial and fixed assets, loans and advances.
Commercial banking later spread to Europe and became more organized through the activities of Gold Smith in Britain.
In the quest for looking for a place to keep their valuables, the people have considered some members of the public for the purpose, including the Accountants, Solicitors (who were formerly called scriveners) the king and the Gold smith.
The Gold Smith issued receipts to cover various deposits made with them by the people, these receipts were in denominations and DEARER of the receipts.
The Imperativeness of this business to the Gold Smith attracted the king’s attention and subsequently led to the establishment of bank of England.
1.2 STATEMENT OF THE PROBLEM:
This research work will focus on the importance of the marketing of the bank services as well as the difficulties posed at achieving their marketing goals.. It is a known fact today that the banking industry is highly competitive and volatile in nature i.e. the bank will want to maximize its profit through the increase in the number of customers that patronize it.
In banking system of today, banks are faced with problem of marketing strategy to adopt, to increase the new trend of its customer.
The practice of universal banking in Nigeria is likely to create practical problems with regulatory and ethical standard.
It is Greed, insider abuse and sharp practices in the banking sector attributed to image banks
Banks customers are already complaining in excess bank charges and unexplained debit to their accounts.
Banks also faced with the problem of the kind of service to initiate so as to attract the customers.
This research work is all out to provide solution to all these stated problems, which faced the banks in the marketing of financial services.
1.3    JUSTIFICATION OFTHE STUDY:
Marketing is a concept, which has not be given due and serious attention among banks in Nigeria because of the seller’s market nature of Nigeria banking industry.
But, due to deregulation of the industry in 1985 and the implementation of the economic reform program of the present administration couple with the increased competition and persistent increase in the numbers of enlighten customers, banking has changed from “sit down” or “arm chair” to a more sophisticated, advance, mobile and electronic system. Hence, the need for banks to be more focused and conscious in formulating their marking programs in other words, banks need to build a strong and comprehensive marketing strategies in order to conquer large portion of the midst of competitors.
The major importance of this research work is to provide and enlightened materials for both management and staff of banks, students and the general public in appreciating the importance of an effective marketing concept.
This project will also be useful for any researcher who may want to make further Enquirer on this topic
1.4 OBJECTIVE AND PURPOSE OF THE STUDY:
The major aim and objective of this study is to identify, examine, highlight and analyze the importance of marketing of business advisory services in the Nigerian banking industry. Be side this, there are some other minor goals of this project. These include: -
1.      To evaluate the importance of marketing in banking service.
ii.       To highlight the peculiar challenges in marketing banks service.
iii.      To examine how marketing concept can be used in achieving hank’s objectives.
iv.      `To examine the roles of customers in drawing marketing program.
v.       To analyze the problem associated with marketing bank’s service.
vi.      To enumerate the impact of marketing bank services.
1.5    SCOPES AND LIMITATION OF THE STUDY:
The research work only focused on the banking industry with special emphasis on Union Bank Plc, llorin branch being the case study organization, It also restricts findings on relevance of marketing of banking services with emphasis on the business advisory service.
This project, like any similar academic research work, has some constraints.
These are:
i.        Time available is too short to combine this project work with any other academic programs.
ii.       Financial constraint: With current economic situation in the it impossible to get enough financial assistance, which also determines the extent to which the study can be carried out. jr
iii.      Material and data in adequacy: banks staff own their customers duties of screening.
These alone will make it impossible to get enough data and information as regard primary source of information.
1.6    DEFINITIONS OF TERM
1.      Marketing: A set of activities involve in getting the right goods or service to the right place at the right price in the right qualities and quantities at the right time.
2.      Market: - Numbers of current and prospective consumer of a product.
3.      Marketing philosophy: - The idea or system of formulating and implementing marketing policies.
4.      Marketing concept: - Marketing principles, which say that customer’s satisfaction must not be over — emphasis at all stages of production.
5.      Seller’s market: - a market where a producer has automatic customers for his product.
6.      Patronage:- The rate at which customer demand for a products.
7.      Marketing Strategies: - Marketing plan programs.
8.      Arm chair system: - Passive or quiet banking system with little or no marketing promotional activities.
9.      Sophisticated system: - Banking system that makes use of advance technology in marketing their products e.g. mobile banking and electronic banking.
10.    Financed wash — up: - financial hardship.
11.    Economics Turbulence: - Economics re- shake up or re — adjustment.
12.    Business Advisory service: -The areas covered commercial bank business advisory services.
I.7     RESEARCH METHODOLOGY:
This is descriptive and inferential in nature. The types and sours of data employed are both primary and secondary data. Those primary data collected directly from the staffs of Union Bank of Nigeria Plc, Ilorin through the administration of questionnaires, Interviews and observation etc.
The secondary data were those obtained from published
material like textbooks, personal records, newspapers and journal,.
etc.
1.8 PLAN AND ORGANIZATION
This project is divided into five chapters. Chapter one contains the introduction, statement of the problem, need for the study, objective of the study, limitation of the study, scope of the study and Definition of terms organization and plan of the study.
Chapter two treat past and current literature review which include review of literature, marketing philosophies in the context of banking services, strategy of marketing bank service, business advisory service, characteristic of marketing bank services.
Chapter three highlight research method and case study effect of the topic includes research methodology, types and sources of data collection, primary data, secondary data, method of data collection impact of marketing
Banking service on banking system, problem of marketing banking services.
Chapter four discusses, the data presentation analysis, data techniques, data design and hypothesis.
Finally chapter five throw light on the findings, summary, conclusion and recommendation
CHAPTER TWO
LITERATURE REVIEW
2.0 REVIEW OF LITERATURE
There are different definitions of marketing as given by different marketing scholars, institutions, and association e.t.c. According to Philip Kotler (1988) Marketing is a human activities directed at satisfying needs and want through the exchange process. For a better understanding of this definition we have to look at some marketing concepts.
Nwokoye (1991) defined marketing as a set of activities that facilitate exchange transaction involving economic goods and services for ultimate purpose of satisfying human needs.
British Institute of Marketing (BIM) defined it as managerial process for anticipation, identification and satisfaction of needs and wants of the target marketing at a profit to the organization.
Until recent, Nigerian banking industry has been characterized by what experts called “arm chair banking”, Arm Chair in the sense that, bank managers usually relax in their offices, expecting customers to come and discuss their business matters with them.
This feature of banking in Nigeria, according to Alli J.O. (1992) is not surprising when one considers the fact that the banking industry had hitherto been dominated “by few bigs” expatriate indigenous banks. This situation created what economists refers to as seller market where seller dictates the trend of the market as to what to sell, whom to buy his product and at what price.
Since competition was more or less unknown in the immediate post-banking era, there was little or no need for marketing techniques. But the introduction of Structural Adjustment program (SAP) pave way for the increase in the numbers of licensed banks as result of deregulation, made competition keener in the banking industry. The new generation banks according to All, (1999) came with sophisticated computer equipment which facilities business transactions thus, giving them an edge over the old generation banks in term of efficiency. Mostly probably, the new banks know quit well that old bank were already established and also occupied large part of the market. Hence, the need for aggressive marketing strategies to able to complete favorably and as well capture reasonable part of the market.
The new banks also saw the need to develop and package, a financial service which people want and not just sell to people what they (the banks) have as it was in the case of Alli J.O (1991)
With these trends, it is therefore, imperative for banks to market their Service as observed by Nwankwo G.O. (1991)
He said it is pertinent, indeed imperatwe that, practical bankers should understand and fully appreciated the importance and strategies of marketing in banking services.
Therefore, banking like any other service industry, depend largely on the marketing place for its profitability and survivals and must adapt to change in the business environment (economic, legal, Technological, political and social cultural) where it operates.
Marketing a product or service is different from selling a product or service selling a product, according to Olatunji, S.O (1991) simply implies putting a product across to customers, marketing a product mean more than that. It involves identifying customer’s needs and tailoring the product or services toward the needs.
Kotler P. (1988) definer marketing as a social and managerial process by which individual and groups obtain what they needs want through the creating and promotion.
Nwankwo G.O. (1991) defines marketing as management process that identifies, anticipates, and satisfies customer’s requirements profitably. Contained in this definition are a concept and a several techniques. The concepts place the customers in the forefront of the corporate thinking while the techniques permits the concept to be successfully, economically a profitably implemented.
From the definition above, it can be deduced that he marketing to be effectively and efficiently done, there is need to embrace and appreciate the role of marketing mix i.e. the appropriate and profitable combinations factors that aids the achievement of marketing objectives otherwise know as 4ps of marketing (product, place, price and promotion) Boom and Bither. Olatunji S.c. Year 19991 even proposes 7ps for services marketing mix by including other, 3ps, which are people, process and physical evidence (environment) to the original 4ps. He argues that marketing mix of 4ps is rather inadequate for service marketing.
Kotle P. (1988) described customer’s satisfactions as the “peak” of marketing concept; the largest hurdle a firm has to overcome to develop a marketing orientation. Therefore banks must see themselves as existing to satisfy the financial needs of individuals, business and other entities. Customers are the central theme of any business and survival of any business begins and ends with the customers without his or her support the business would inevitably fail. Nwankwo G.O. (1991) in effective marketing therefore, the focus should be on the customer for without a total commitment to him on the part of the company as a whole, the application of advanced marketing techniques on banking service will only have limited and brief effects.
Nwankwo G.O. (1991) observed that effective marketing starts with need identification once a need has been identified, for the customers, the firm develops product to suit this need. Profit is therefore made through the satisfaction of the need of the firms product or services in dynamic situation in which the firm has to keep scouting the environment to see whether it’s service is still satisfying a need and to know about the emerging need of the customer. Guiding by the marketing concept, bank would satisfy customer financial need. This would allow banks to realize that financial needs vary among different groups of people and that the services to meet those needs should be differentiates according to the customer type. Nwankwo G.O (1991) further identified some strategies for effective marketing of banking services.
2.1    HISTORICAL BACKGROUND OF UNION BANK PLC
BRIEF HISTORY OF UNION BANK OF NIGERIA, PLC
The present day union bank of Nigeria, plc is one of the first generation banks in Nigeria establishes in1917 during the colonial  era. Its first office in Nigeria was located at the old marina Lagos. The other branches were opened in Jos and Port Harcourt the same year. In those days, it was known as Barclay bank DCO that is Dominion colonial oversea.
The period of 1958 —1978 was a landmark ion the history of the Nigeria banking industry, as it marked the establishment of central bank of Nigeria in 1958 and in enactment of CBN act of the same years which among other things introduce mandatory liquidity ratio in the banking system.
The period marked the transformation of union bank to its present position. Asa result of this, development the bank was able to set up over 50 additional branches between 1959 and 1970. This trend has a since continued.
Today, the union bank of Nigeria, has well over 250branch throughout the country
In 1969 a banking Decree was enacted to repeal the earlier Banking legislation in the country .the new low made it mandatory for bank to register as Nigeria companies like other foreign business operating in the country.
After complaining with the new law the bank change it name to
Barclays Bank of Nigeria Limited but then it was still a wholly owned subsiding of Barclay Bank International Limited London.
One of the landmarks of the Bank’s took place in 1979 when Barclay’s bank decided to sell 50% of it shareholding in the Bank to Nigeria thus reduced their equity shareholding to 20%. As a result of the development name of the bank was changed in 1979 from Barclays Bank of Nigeria Limited to Union Bank of Nigeria Limited to reflect to the new image and new ownership structure of the bank.
In 1986, the bank was the first Nigeria Bank to record Ni billion marks in saving deposits. It won the Nigerian stock exchange merit award in the financial sector for six consecutive years from 1989- 1994 for quality presentation of its annual account and the conduct of its Annual General Meeting.
The Bank has a dynamic organizational structure, which can with stand the challenges of our time. Union Bank is made up of thousand of people working together for a common goal, profit, through efficient services. The various levels of official cannot function effectively without the co-operation of one another. The area manages for instance cannot function successfully alone unless his branch managers perform. In the same vein, Branch manager relies to a large extent on his accountant and heads of department in order to perform efficiently. Likewise the head office relies heavily on both the area and branch offices.
The introductions of the new capital base of banks (N25 million in year 2005 necessitated the merging of the bank with its subsidiaries such as Union Merchant Bank Limited Union saving and loan limited in order to survive the huddles and challenges of re-capitalization and consolidation Union Bank is among the 25mega banks that were able to escape the huddles of re-capitalization
The Bank was announced to be the most capitalized bank in the country at the floor of exchange.
In the current bank capital base requirement, union Bank has been the largest capital base bank with the sum of N100 billion and only Union Bank has the best share price now.
2.2 STRATEGIES OF MARKETING BANKING SERVICES
Nkwankwo G.O (1991) further identified some strategies for effective marketing of bank services, includes among others: -
1.      Knowledge:- In marketing as in ordinary ways of life, no planning, or strategy has any chance of success or like by to effective, if it does not derive from knowledge. Knowledge alone
of course, is not enough, but its absence in any endeavor spells doom out is catastrophic in effect. Effective marketing must have its foundation in knowledge.
2.      Banking Environment:- Banks operate in an environment. The environment defined the strength and aggravates the weaknesses, but if the environment is properly analyzed, understood and appreciated, it can prove an invaluable asset to the achievement of cooperate goals of which effective marketing is one. It follows therefore, that effective marketing enquire a through analysis and appreciation of the environment in which the bank operates. Banking environment includes, political, economic, legal technology, and social, cultural environment.
3.      Another very important information put in effective marketing as NWANKWO G.O (2001) identifies is the psychology of finance.
This is summarized as business banking customer profile and environment inputs. Business of banking as any other business has the interest of shareholders. But it has other important objectives of minimizing liquidity in the interest of its depositors and the objective to contribute to the country. The conflicts in these most attempt and successfully reconcile the three objectives.
Customers profile involves identification of the types of customer, what are their financial needs? What is their level of awareness of band services? Where, when and what price to sell the project? Environment input require an understanding of the prevailing political and economic issues at any point in time and government policies and approach on ways and means of dealing with the issues.
4.      Another weapon identified by Nwankwo is market research to determine among other things the level of market penetration achieved by the banks various services. It is also necessary to identify the gap or gaps in the market in which new products are most likely to be successful and to measure customer reaction to and customer’s satisfaction with the new product.
5.      Segment is another strategy with the information acquired in market research, the level and extent of market segmentation can be determined to enable groups of customer with broadly similar interest to be identified, so that services can be tailored to their specific requirements and product customers groups, which can be emphasized or de-emphases, can be identified.
6.      Public relations and advertising are the last instruments identifid by Nwankwo. They are the tools the marketing manager uses to “Puch” his services to the customers.
CHARACTERISTIC OF MARKETING BANKING SERVICE
Banking services have certain characteristic which makes their marketing different from that of tangible products which are identified by Olatunji S.O (1991) as: -
A.      Intangibility: - This mean that services cannot be seen, felt, tasted, touches or otherwise experience by the senses.
B.      Inseparability: - This implies that services cannot be separated from their services or selling.
C.      Heterogeneity: - This refers to the fact services product cannot be standardized, for example it is not possible to deliver the same standard of banking service in all branches.
0.      Perishability: - These mean that services cannot be stored. The four characteristic of service product stated above, pose marketing challenges in planning price, promotion and distribution.
However, banks marketing must perform two major functions, it must attract deposits on one hand and attracts borrowers and users of other bank services on the other essentially, a bank has to device marketing strategy to attract deposit which stands as the raw materials input and also market its output in the form of loan and advance, and other annularly services targeted market. The intermediation nature of banking services (i.e. double sided nature) creates special marketing problems which appears more complex than those normally faced by commercial enterprises.
The post Structural Adjustment Programme (SAP) era Nigeria witnessed great effort by banks to embrace the marketing concept. Also the reforms of the banking industry necessitated the invention of many innovative products such as computer networking, electronic banking (E. Banking) flash card of first inland bank, vault card, Automated Teller Machine (AT M). Money grams etc. are such ways of managing the input and output end for banking service using marketing concept.
2.3 MARKETING PHILOSOPHIES IN THE CONTEXT OF BANKING SERVICES
Marketing banking services have certain marketing philosophies which at sometime or another have been held by the managers of business organization. These are the product concept, the production concept, the selling concept and the marketing concept. These could been describe as follows:
iii.      THE PRODUCT CONCEPT: - Consumers will buy those services that offer the best quality and value for the price. According to this approach, a bank should therefore direct its efforts at improving their quality of this approach, a bank should therefore direct its efforts at improving their quality of service, and by doing so, customers will ‘buy’ them.
ii.       THE PRODUCTION CONCEPT: - Managers assume that customers will ‘buy’ the services that a bank offers to them, provided that they are accessible and affordable.
According to this approach, banks should therefore develop services that they consider useful, at an affordable price, and they will easily sell them.
iii.      THE SELLING CONCEPT: - Banks assume that customers will not buy their services, or will not buy enough of them, unless a positive effort is made by the bank to sell them. The production and product concepts are based on the view that customers will buy if the product or services is available at the right quality. The selling concept, in contrast, is that a bank should develop its services, but then goes out and sell them hard. For bank, this concept implies the need not only for advertising and other sales promotion activities but also the aggressive selling or active “persuasive” selling of services by branch managers. The selling concept does not properly consider whether customers really want the services in the first place, it is concerned with selling them to anyone who can be persuaded to buy.
iv.      THE MARKET CONCEPT: -This is a concept which has been developed since 1950’s and which is now regarded as the ‘correct’ philosophy for long-term commercial success. Bank accept that the task is to find out the needs and wants of target market, and to adapt to their organization and products or services to satisfying those needs and wants more effectively and efficiently than competitor. The task of persuading customers to buy the services that the bank is offering will therefore be much easier.
2.4    BUSINESS ADVISORY SERVICES
In the business world, there is no all — knowing self-sufficient and embodiment of leer in the business. At one time or the other, there will be need for advice or word of knowledge from those business people who know better and more experienced in that field more than the person seeking the idea,
Banks provides business advisory service to their customers since the bank or banker is regarded as epitome of business acumen, so many people behave in their banker when it comes to business advisory services.
Corporate advice is also available to businesses from merchant
banks, for example on: -
(a)     Raising loan capital or equity capital;.
(b)     The prospects for a stock market S. S. M flotation.
(c)     Take-over and mergers.
A merchant bank often represents the ‘predator’ company.
In this chapter, we shall concentrate on the more general range of business advice that commercial bank might offer:
(I)      Through its branch managers.
(ii)      Through its bank advisory specialists. What sort of advice provided?
The areas covered by a commercial banks include the following:
1.      Objectives of the business: - Helping the business to identify
its corporate objectives, to establish a corporate (long term) plan for the achievement of those objectives, the communication of objective to manager and other employees responsible for their achievement and the measurement of actual results against corporate planning targets.
2.      Budgeting: - emphasizing and explaining the importance of budgets for a business, as a means for planning in detail for the achievement of corporate objectives; explaining’ how budgets are prepared and the assumption’ that might be made to prepare them, measuring actual performance against the budget and perhaps quantifying variations, in a system of budgetary control.
3.      Costing:- Helping the customer to choose a costing system and giving advice on how to set it up in operation. Costing techniques such as marginal costing, absorption, costing and standard costing and costing contract work e.g. building construction contracts can be explained.
4.      Pricing policy: - Advice may cover explanations of various ways of setting prices, the sensitivity of market demand to price changes and providing the customer with market data that may assist pricing decisions. (Advice on pricing policies may be needed if the customer’s turnover and / or profits are suffering from poorly-conceived pricing of products and services).
5.      Credit Control: - the client may be given advice on the amount and length of credit offered to trade customers, the client’s debt experience and the efficiency of his debt collection procedures.
6.      Cash Flow:- Adequate management of the planning and control of cash flow is essential to every business. The client may be given advice on the importance of cash flow, forecasting the frequency and the forecast period (e.g. weekly cash flow forecasting, or monthly, quarterly, annual forecasting etc)
monitoring actual cash flow by comparing it with the budget.
7.      Stock control: - Helping the client to determine the appropriate
level of stock to hold, keeping adequate and accurate stock records, liaison between production, control and the sales staff for control of finished goods stock levels in a manufacturing business, advice on the insurance of stock.
8.      Management accounting reports: - If the client is poorly served with management accounting reports, advice might be offered on the type of information system that ought to be established within the business. (e.g. on the profitability of the business, and of different sectors of the business).
9.      Book keeping and financial accounting: - where a client has an inadequate book keeping system, advice can be given about the installation of a suitable system and the office equipment needed to operate it, audit procedures and the preparation of financial account (P& L account, balance sheet etc).
10.    Capital investment appraisal: - Advice and assistance could be offered about the evaluation of projects for capital spending, including the techniques of investment appraisal such as DCF.
11.    Financing: - Advice on sources of finance including loans, sale and leaseback, leasing and bill discounting. Also advice, on whether the client is utilizing his assets efficiently, or whether too much finance is being used (i.e. too many assets are being used) to carry out the operation of the business.
12.    Import /export business:- Methods of financing international trade, finding agents or distributors abroad, providing information about overseas markets and advice on the use of N E X I M facilities or international factor.
CHAPTER THREE
RESEARCH METHODOLOGY
3.0    RESEARCH METHODOLOGY
3.1    TYPES AND SOURCES OF DATA COLLECTION
The research will use both primary and secondary source of information.
Primary sources are those methods collect data to directly used from the staff of Union Bank of Nigeria Plc, Ilorin, through the. Administration of questionnaire which was done mainly buy hand to various individual respondents.
Secondary sources were those obtained from published materials, like textbooks, journals, records, financial report, newspapers and Internets database etc.
3.2 PRIMARY DATA
In the process of the data collection, the primary data is based on questionnaires, which were responded to accurately by the staff and management of the case study. The researcher also carried out personal interview with the management and staff of Union Bank of Nigeria Plc.
Primary source is when a research makes a surucy to gather information on a particular issue, to ask question through personal interviews, observation, discussion, questionnaire Generally, information obtained through personal contact or by sending questionnaire is called primary data. These include the used of company records, Annual report notes and letter. Primary data determine the originality if research work. They enable the researcher to express himself in his own way without following the bases of other people. Primary data must be used with caution since they need a lot of imagination annualizing and interpreting the materials to suet the subject of the research.
To sit the purpose of this research one type of questionnaire was printed and distributed to the staff of the Union Bank in Ilorin. The questionnaire contains general question where respondent will simply tile the appropriate choice or option however, not all the questions are related to the hypothesis some questions are to confirm or disconfirm the researcher’s previous assumptions whole others are to test the objectivity of the respondents in previous question. But the researcher has more in using questionnaire as the main source of getting primary information on the research topic. 30 questionnaires has been administered in the course of carrying out  the research, they were distributed to the appropriate personnel (Union Bank staff).
3.3 SECONDARY DATA
These are data that others have already documents including books, magazine, journals, Annual report, newspaper, miscellaneous sources and Internet.
3.4 METHOD OF DATA COLLECTION.
As pointed out earlier that the main source of data are both the primary and secondary sources. This was done through the administration of questionnaire completed by bank staffers of different status and customer of Union Bank of Nigeria Plc.
The method used in analyzing the data are both description and inferential statistics.
The descriptive method involves the use of tables and bar graph while the inferential statistic method involves the use of chi- square and hypothesis distribution of model was used to test whether the data collection would lead to the acceptance or rejection of either the null hypothesis (Ho) and alternative hypothesis (Hi).
Chi-square test:- x2 = E (Fo - Fe)2
Fo
Where Fo = Observed frequency.
Fe = Expected or theoretical frequency.
E = Expected Outcome.
X2 = E(x-m)2
            O
Where X = Variable
M =   mean.
Fo — Fe = Observed frequency — expected frequency.
X2 2 = Chi square calculated
X2 Chi square table.
V = degree of freedom (Row—i) (Column—i)
The level of significance to be used is 5% where expected = rt + ct
N
FE expected frequency = £ rt x ct decision
N
RULE OPTION.
If X2 C <X2 + accept H1 and reject H0
If X2 C > X2 + accept H0 and reject H1.
3.5 THE IMPACT OF MARKETING FINANCIAL SERVICES ON
BANKING SYSTEM.
Marketing of financed service has impacted the economy in a tremendous way. The essence of marketing is to make people aware of the benefit accrued to them by banking with a particular banks using union bank of Nigeria as a case study. This bank has impacted the economy through the availability of numerous customers. The following are the inapt of marketing financial service;
i.        Marketing of financial service enable the customers of a particular bank to have access to some required service. Corporate customers of bank through the available service makes the enayury on their account down load and print statements from the comfort and convenience of their offices. This service offered by bank has helped the corporate bodies to have access to their accent all the time.
ii.       Marketing of financial service has improved or developed
banking habit in the society because most people are ignorant, of the relevance of the bank to the society so they fond it difficult to bank with any bank. But through the unbroken  marketing strategy adopted by banks they started banking with banks.
iii.      Marketing financial service has brought about new innovation in the banking industry. Banking industry is competitive in nature, many bank would like to increase their patronage and also maintain the existing customer. They can only increase the patronage by effective marketing of their services i.e new products introduced that others have not invented.
lv.      Marketing of financial service has brought good relationship between the banks and their customers. Most banks of nowadays always have marking department, this department moves out of banking’ halls to the people in the town or city to relate with them and accept their saving.
3.6 CONSTRAINTS OR PROBLEMS OF MARKETING BANKING
SERVICES
Marketing of financial services has encountered a quite number of problems in the available services.
To mention but few out of those problem are:
i.        Misconception: people have misunderstood the marketing the marketing strategy being used by bankers eg Banks using female personnel as marketing craw, people have mistaken them for corporate prostitution.
ii.       In ability to realize fully the purpose of inventing a product or service.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0    DATA PRESENTATION AND ANALYSIS
4.1    INTRODUCTION.
This chapter contains the descriptive and inferential statistical presentation, interpretation and analysis of the data collection through the questionnaire using chi-square method of data analysis, simple bar — chart and hypothesis.
The data were collected through the questionnaire administered to various officials of the union bank Plc, liorin branch.
A total number of questionnaire is thirty (30) but only twenty five were returned and so data were analyzed based on the numbers of questionnaire returned.
4.2 PRESENTATION AND ANALYSIS OF DATA ACCORDING TO RESEARCH QUESTIONNAIRE.
The total number of questionnaire administered was thirty (30) however twenty-five (25) were returned while five were not returned at all.
Percentage of questionnaire returned = 25130 x 100 = 83%
Percentage of questionnaire not returned = 5130 x 100 17%
The table below shows the distribution of the respondents’ intern of the above listed data i.e. sex, age and marital status.
SECTION A
PERSONAL DATA OF RESPONDENTS
Table 1. In analyzing the data collected through the administered questionnaire, the sex of the respondents were classified in to male and female, the table below shows the sex distribution of the respondents.
Table 1
From the table 1, out of the total numbers of respondent who returned their questionnaire 18 (72%) are males while 7 (28%) are females.
Bar chart representing sex distribution of the respondent
Figure 1
Froth the table above, out of the twenty-five (25) respondents, Eighteen (18) are males while seven (7) are females. This means that
the greater numbers of respondents in the Union Sank Pie. Ilorin
branch are male.
This implies that male has the highest population than female.
Marital status. This classification is show below:
TABLE II
From the table II, out of the total numbers of respondents who returned their questionnaire 21 (84%) are married which 4 (16%) one single.
Bar chart representing marital status of the respondents.
The above table represents the market status bar chart of the respondents in Union Bank Plc, Ilorin. The married are 21(84%) while single was 4(16%). This shows that the number of married respondents is higher than single, This shows that married people has the greater number at union bank Plc liorin.
TABLE Ill: In the analysis, data collected through the administration of questionnaire, the age of the respondents were classified into various categories.
Table iii
From the above, out of the total numbers of respondent who returned their questionnaire, 22 are between the age of 18-30 (88%), 3 are between the age of 31-40 years which is 12%.
Bar char representing age distribution of the respondent.
From the table above, out of the twenty (20) respondents 13-30 years of age were 22 with 88% while the 31-40 years of age, which is 12%s.
Conclusion, this means that greater part of the respondents are
18-30 years age classified above at Union Bank Plc Ilorin which
means that the highest number of Union Banks Plc Ilorin is between
31-40 years of age.
Questionnaire, according to impact of marketing of financial service on Nigerian banking system. it contains section B questions relating to subject of the study. Marketing of banking services will emphasis on business advisory services.
THE IMPACT OF MARKETING OF FINANCIAL SERVICE ON NIGERIA BANKNG SYSTEM
TABLE IV
From the above table 89.7% of the respondent favour questions asked by answering “yes” while 10.3% respondent by answering “No” which show that they disagreed.
The graphical representation of the analysis is as follows: -
Note: - “Y” axis represents percentage of “Yes” or “No” ticked by respondents “X’ axis represents the alternations Le. Yes / No.
The Impact of banking service on banking system
Both the table and the graph revealed that marketing of banking services has great impact on the bank itself.
SECTION C: - According to the respondents of this section, it contain problem of marketing banking service with solution to their problem.
PROBLEM OF MARKETING OF BANKING SERVICE WITH SOLUTION
TABLE V
This table and the graph reveal that marketing has a great effect on marketing banking services. This shows that marketing strategies employed by banks really influence and motivate customer’s patronage and this result to positive solution on banks.
4.3    DATA TECHNIOUES
The techniques used in analyzing the data collected through the data collection instrument (questionnaire) include simple bar charts.
Inferential statistics was used to test the working hypothesis formulated from the general hypothesis. The technique used is chi -square (X2) to analyze the research hypothesis and the following formula were applied.
ef =  (r - I) (c -1)
Where df = Degree of frequency
f= Number of rows
c = Number of columns
fe (a,bc) (RT) (CT)
CT
Where te = frequency expected
CT = Column total
CT =           Total Population of the sample
a =    Column Position of the observed frequency
b =    Row Position of the observed frequency
 X2C= (fo-fe)
  Fe
Where fe = frequency expected
Fo = frequency observed
x2c = Calculated Chi-square
4.4 DATA DESIGN
This research work was carried out at the Union Bank Plc,Ilorin branch. The study was conducted basically through administration of questionnaire to the staffs and management of the bank.
This research used bottle structured arid the needed information for the project work. The analysis of the data collected was tasked through the use of descriptive and inferential techniques. The conclusion arrived out will enable the researcher to draw an appropriate recommendations and conclusion on the study.
GENERAL COMMENT
Marketing of financial services is what can make people aware of banks products and services.
Marketing at financial service is an essential tool towards an improved profitability.
Marketing of banking services is one of the ways to solve the problem of bank liquidity.
The use of halt naked of female staff to market bank services should be discouraged.
Finally, as matter of fact marketing services is very crucial in the banking industry and it has to be done regularly.
4.5    HYPOTHESIS
This section aims at analyzing data gotten from section B — D of the questionnaire. Section B discussed the impact of marketing of financial service on Nigerian banking system and section C discussed problems of marketing of financial services with solution and section JJ discussed general comments.
All the questions in each section were cross tabulated and similarities stated.
An alpha and value were set out from the table at 5%, which are our expected values. Any working hypothesis falling within the set value will be accepted while those that falls after the set value will be rejected base on the decision rule to be made.
WORKING HYPOTHESIS FOR SECTION B
Ho     = marketing does not have any impact on bank services.
Hi      = Marketing has impact on bank service.
Where Ho= Null hypothesis
Hi      = Alternate hypothesis.
Fo (a) = 25, Fo (b) 0, Fo (c) 25, Fo (d) =0
Fo (e) =25, Fo (f) = 0, Fo (g) 24, Fo (h) =1
Fo (i) =16, Fo(j) = 9, Fo (k) =21, FO (L) 4
Fo (m) 21, Fo (n) = 4
Fe (a) = (157) (25) 22.4, Fe (b) = (18) (25) 2.57
175                                175
All cells under “YES” Le a, c, e, g, I, k, m.
= 22.4 each
All cells under “NO” i.e b, d, f, h, j, I, n.
= 22.57 each
df= (r-1) (c-I)
Where r = rows = 7
C = columns = 2
df= (7-1)(2-1)
(6) (1)
df = 6
Using 5% level of significance, therefore, 6,0.05 from the table 12.59: X2t= 12.59.
Level of significance = 5% or the critical region is 6, 0.5 from the table
= 12.59.





Decision Rule
It chi-square calculated is greater than chi-square tabulated (x2c>x2t) Now the value of x2 is 29.325 and is greater than value of critical which is 12.592.
Therefore, Hi (i.e. alternative hypothesis) which says that “marketing has impact on banks service is accepted”.
4.8 WORKING HYPOTHESIS FOR SECTION C
Ho = marketing does not have problem in bank services.
Hi = marketing has problem in the bank services.
Fe = Data generated from questionnaire
Fe = Expected Frequency
Fo (a) = 25 Fo (b) = 0, Fo (C), = 8, Fo (d) 17
Fo (e) = 23, Fo (j) = 2, Fo (g), = 23, Fo (h) = 1,
Fo (I) = 10, Fo, (j) = 15, Fo (k) = 20, Fo (L) = 5, Fom = 25,
Fo (n) = 0, Fo (o) 23, Fo (p) = 2.

Fe (a) = (1 58) (25) = 19.75, Fo (b)= (42) (25) = 5.25
200                                     200
All cells on “Yes” column = 19.75 each
All cells on” No column = 5.25 each
df= (r -1) (c-I)
Where df = degree of freedom
r = rows
c = columns
r = 8, c 2
df      =(8-1) (2-I) 7 1
=7
Using 5% level of significance, therefore 7, 0.05 from the table
 = 14.067x2t
Note:
Level of significance = 5% and critical region is 7,05 from the table
 = I 4.049x2t
4.6 GENERALIZATION BASE ON TESTED HYPOTHESIS
It can be generalized that marketing of banking service has impact on banking services. That results to the reacceptance of alternative hypothesis (Hi), and reject null hypothesis (Ho) that says marketing does not have input on banking service.
It is also formulated the test hypothesis that marketing does not have problem on the bank services, this result to the reject of null hypothesis (Ho) and acceptance of an alternative hypothesis, (Hi) says that marketing has problem on bank services.
Decision rule:
If x2c (1.0 chi-square calculate) is greater than x2t (i.e chi - square table) the value of boundary is the critical region, which is 14.049x2t and the value of chi- square is 46.2644. Which is greater than the critical region of x2t.
Therefore marketing of banking services has problem on bank service accepted.

CHAPTER FIVE
 Finding, Summary, Conclusion and
Recommendation.
50     Finding, Summary, Conclusion and Recommendation.
5.1    Findings
Base on the outcome of the tested hypothesis, it is now found out that marketing is relevant or has major impact on banking services which has been shown in the rejection of null hypothesis to the acceptance of the alternative hypothesis.
These are issues discovered in the course of research carried out in chapter three and four.
The impacts of marketing on banking service are: -
Banks. should engage in marketing of bank service for them to increase the number of the customer in term of patronages.
Also, banks needs marketing of bank services to boost their profit through the large number of patronage enjoyed. It is also discovered that bank needs marketing of bank services to keep the public more informed about the service and products of such bank.
Some problems of marketing strategies are also discovered during the research process, which include the following:
Banks are faced with the problem of marketing strategies to adopt or increase the new trend of its customer’s growth. Banks are also faced with the problem of the kind of service to initiate so as to attract the customers.
As regards the above problems the following possible solutions can make.
The creation of customer complaint unit and establishment of public complaint desks where customer’s complaint could be lodged.
There should be frequent re-organization of marketing orientation programs such as seminars, workshop for both the management and the staff of banks.
5.2 SUMMARY:
In summary, this research work has been able to identify the relevance of marketing of bank services to the banking industry. Through the research, the strategies of marketing of banking service which include knowledge banking environment and other very important information inputs in effective marketing. The characteristic of marketing of banking service were discussed which are intangibilfty, inseparability, heterogeneous and Perishability.
The marketing philosophies were also highlighted; they are the production concept, product concept, selling concept and lastly marketing cohcept.
The areas such as objective of the business, budgeting, costing, pricing policy and cash flow etc.
It is evident that marketing of banking services has impacted the banking system in a positive manner in terns of their profitability, patronage by customers and services being rendered by banks to the general public.
However, marketing of banking services are faced with problems in the banking industry. But in the course of the study the following problems were discovered:
i.        Inadequate support by the top management of banks in adopting and implementing marketing philosophy general in marketing their services of banks in adopting and implementing marketing full blown in marketing their service of banks in adopting and implementing marketing philosophy full blown in marketing their service.
ii.       There is no serious attention or provision for appraising, monitoring and analyzing the result expected product from a target market and certain product.
iii.      It was also discovered that there was no customers care unit and complaint desk where customers’ complaints could be lodged and addressed.
iv.      Also, there is lack of effective model, which can speed up the rate, and time of attending to customers to reduce the usual long queue observed in the banking hall.
However, if all the above highlighted problems are adequately taken care of, bank will be able to secure position for them selves in the new generation competitive environment.
5.3 CONCLUSION: -
The activities of modern marketing should cover marketing research and other marketing information system, marketing planning, marketing philosophy and how to organize activities and control, and of course, other issues relating to product, prices, promotion and distribution decisions. Only few banks in Nigeria could be said to have embraced marketing activities as required looking at the current economic condition and the under developed nature of the Nigerian economy, the operators of the economy are bound to change.
In view of the above mentioned points it is essential that each bank was a vision of what its takes to be in the future. It must go beyond its present’s situation and develop a long term stately to meet changing conditions.
5.4 RECOMMENDATION
In the era of “arm — chain “system where there is quite banking system i.e. when there is little or no marketing promotional activities then banking system has gone for good. But one-way by which banks can service he challenges of recent reforms is to adopt and implement all the marketing concept philosophy. In order to overcome the discovered problem observed in the course of conducting this study, the following measures as to be put in place.
i.        Top management must support the adoption and application of all the marketing principles.
ii.       There should be frequent re-organization of marketing orientation programs such as seminars, workshop for both the management and the staff of the banks.
iii.      There should be constant monitoring, appraisal and analysis of result expected from a target market or particular product.
iv.      Creation of customer complaint unit and establishment of public of complaint desk where customer complaint could be lodged and addressed.
v.       Banks to discard and reduce the problem of long and cumbersome the always-witnessed in banks should adopt effective queuing modal.
vi.      Total quality should be offered to customers.
APPENDIX
LETTER OF INTRODUCTION
BANKING AND FINANCE, I.B.V.S
KWARA STATE POLYTECHNIC,
ILORIN
P.M.B 1375,
KWARA STATE, ILORIN
The Manager,
Union Bank Plc.
Muritala Muhammed Road
Ilorin Branch,
Kwara State,
Dear sir/Ma,
QUESTIONNAIRE
I am a final year student of the department of Banking and Finance, Kwara State Polytechnic ilorin, and am writing a research project on “Marketing of Banking Services in Nigeria with emphasis on business advisory services. “Using Union Bank of Nigeria PLC, Ilorin Branch as a Case study, as part of the requirement for the partial award of HND Higher National Diploma in Banking and Finance.
I shall therefore be very grateful if the attached questionnaire could be responded to as objectively as possible.
Please be assured that any information given in this regard will be treated confidentially and use only for the purpose of this academic exercise.
Thanks for your co-operation.
Yours faithfully,
QUESTION ON MARKETING OF BANKING SERVICE WFFH EMPHASIS ON BUSINESS ADVISORY SERVICE
Kindly complete the question below by putting letter X in the
appropriate boxes and write in space provided.
SECTION A: PERSONAL INFORMATION
1.      Name of the organization…………………………………………
2.      Department……………………………………………………………
3.      Sex: Male ( ) Female ( )
4.      Age…………………………………………………..
5.      Marital Status (a) Married ( ) (b) Single ( )
6.      Education Qualification
7.      Present Position in the organization
SECTION B:
 IMPACT OF MARKETING OF FINANCIAL SERVICES ON NIGERIA BANKING SYSTEM
8.      Is it true that marketing of financial service have positive
impact on the Profit of Banking Industry. (a) Yes ( )         
 (b) No ( ) (C) I don’t Know ( )
9.      Do you think effective Marketing can be realized by bank
through the use of friend and qualified staff. (a) Yes ( )
 (b) No ( ) (C) I don’t know ( )
10.    Do you think Marketing of financial Service has rally promoted Banking Culture in Nigeria. (a) Yes ( ) (b) No ( )
(C) I don’t know ( )
II.       In your own view, Marketing of financial service has positively impacted Nigeria economy. (a) Yes ( ) (b) No ( )
(C) I don’t know ( )
SECTION C: PROBLEM OF MARKETING OF FINANCIAL
SERVICE
12.    Do you  think government regulation on bank pose any problem
on bank on the marketing of financial service. (a) Yes ( ) (b)
No()  (c) I don’t know ( )
13.    Are you of the opinion that many Bank go extract length in convincing Customer which brings about bad image of such banks. (a) Yes ( ) (b) No ( ) (c) I don’t Know ( )
14.    Do you think inability to initiate new product in Banking Service poses a problem on Banks Marketing of service. (a)        Yes ( )
(b) No (      ) (c) I don’t know (       )
15.    Do you have any other related problems on marketing of financial service. (a) Yes (b) No ( ) (c) I don’t know (    )
16.    If yes, Mention Few………………………………………………………………………………………………………………………………………………………………………………………………………………………..
SOLUTION TO THE PROBLEM
17.    Do you think involvement of government in marketing of financial services can bring any form of solution. (a) Yes
(b) No( ) (C) I don’t know ( )
18.    How do think government can be involved………………………………………………………………………………………………………………………………………
19.    Do you think introduction of new products can solve the problem faced by marketing financial service. (a) Yes ( b) No
(c)     l         don’t know(                   )
SECTION D
21.    If you were to excess Bank marketing activities will then say it
has enhance bank performance. (a) Yes ( ) No ( )
22.    General Comment…………………………………………………………………………………………………………………………………….

Comments

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