CHAPTER ONE
INTRODUCTION
Marketing strategy is a method by which a firm attempting to reach its target market adopt to attract and retain customers. Marketing strategy starts with market research, in which needs, attitudes and competitor’s products are assessed and the firm concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage (Nymous, 2006).
Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost however quantifying the return on investment from marketing expenditure on activities such as advertising, promotion and distribution is one of the most complex issue facing decision makers. Marketing performance is central to success in today’s fast moving competitive markets, and measuring marketing performance is critical to managing it effectiveness (Chiliya, 2009).
Marketing strategies serve as the fundamental component of marketing plans designed to fill market needs and reach marketing objective. Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include marketing mix, plus performance analysis and strategic constraints. While external environmental factors include customer analysis, competitive analysis target market analysis as well as evaluation of the element of technological, economic, cultural or political/legal environment likely to impact success.
The banking industry is highly competitive, with banks not only competing among each other, but also with non-banks and other financial institutions. Most banks product developments are easy to increase and when banks provide nearly similar services, they can only distinguish themselves based on price and quality. Therefore, customer marketing strategy is an effective and importance tool that banks can use to gain a strategic advantage and survive in today’s ever increasing banking competitive environment.
The Subject of marketing strategy is relatively global issue. It is more rational to keep customers as well as acquiring customers to replace those who have been lost. The main factors influencing marketing strategy of First bank and Zenith bank include the range of services, rates, fees and prices charged . It is clear that superior service, alone, is not sufficient to satisfy customers.
Prices are essential, if not more important than service and relationship quality. Therefore, service excellence, meeting client needs and also providing innovative products are essential to earn success in the banking industry. Most private banks claim that creating and maintaining customer relationships are important to them and they are aware of the positive values that relationships provide . While there have been several studies confirming the significance of marketing strategy in banking industry , there has been little research regarding staff perception of marketing strategy in their organization.
It is against this, that the researcher considered the subject matter worthy of investigation.
The banking industry is highly competitive, with banks not only competing among each other, but also with non-banks and other financial institutions. In Nigeria most banks product developments are similar hence they provide nearly similar services, they can only distinguish themselves based on price and quality. Therefore, bank marketing strategies are develop based on similar criteria. As such staff of First bank and Zenith Bank perception of their organization’s strategy is centered around the formulation of strategic plans aimed at acquiring new customers than retaining existing customer. Hence The Subject of customer retention and loyalty is relatively an issue in these banks. As such the problem of customer deflection is high and the banks incur high costs of acquiring customers to replace those who have been lost .
It is against this that the researcher sees the subject matter of this research worthy of being investigation.
The following research question guided this study:
The central objective of this study is to examine the perception staff of FBN and ZBN on their organisations’ marketing strategies on. The specific objectives are to:
The study will give insight on strategic planning to attract and retain existing customer in banking industry most especially First bank and zenith bank. This is in accordance with the views of Okoh (2009) who opined that Marketing strategy plays a central role in winning and retaining customers, ensuring business growth and renewal, developing sustainable competitive growth and renewal, developing sustainable competitive advantages, and driving financial performance through business processes
This study will contribute to existing body of knowledge on the subject matter by showing the relationship between marketing strategy and productivity. As such it will be a good reference material to students, scholars and the general public.
The study would also be beneficial to first bank, by way of improving their strategic planning especially as they utilize the finding of this study.
The research will also be beneficial to students, members of the public and individual who may wish to undertake their own research as it will be a springboard and a basis for further study.
H1: FBN and ZBN staff perceive the marketing performance of their organization to be very effective.
H1:The optimal marketing mix used in attaining organizational objective in FBN and ZBN is centered on product and pricing policies.
H1: FBN and ZBN’s staff respond positively to their marketing strategy.
H1: There are no threats militating against the marketing strategies used by FBN and ZBN.
The study covers the examination of marketing strategies of first bank and zenith bank in Kaduna metropolis of Kaduna state. In this regards the researcher shall examine the strategic marketing model adopted by FBN and ZBN as well as the optimal marketing mix used in attaining organizational goal in FBN and ZBN. The study equally identifies the factors threatening marketing strategies used by banks in Nigeria. The study covers a period from 2006 – 2011.
1.8 Definition of Terms
Marketing strategy: This is a method by which a firm attempts to reach its target markets.
Productivity: The rate at which a firm produces and markets its products
Marketing mix: Four Ps of marketing; price, promotion, product and public relation.
Marketing: The performance of business activities that direct the flows of goods and services from the manufacture to the consumer.
Price: Price refers to the monetary values of product.
PLC: Public Limited Company.
Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes objects, services, person’s places, organization and ideas.
Service: Is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of any thing. Its production may or may not be tied to a physical product.
Consumer value: Is the different between the values the customer’s gains from owing and using a product and the cost of obtaining the product.
Customer satisfaction: The extent to which a product perceived performance matches a buyer’s expectations. If the product does not perceive performance, the buyer is dissatisfied. If performances match or exceed expectations, the buyer is satisfied or delighted.
Manufacturer: the owner of a factory or company that produced goods or services for sale to consumers.
Distribution: The function of disbursing the goods manufactured or warehouse to the location where they will be consumed or received by consumers.
Re-engineering – re-design of work process
Workflow – work process or procedures
BPR – This is an acronym for business process re-engineering
BPM – This is an acronym for business process management
Process innovation – Introduction of new technique in work procedure
Process improvement–This is the incremental, gradual and constant change or innovation in workflow
TQM – This is an acronym for total quality management
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