Marketing Concept And It’s Application In Customer Services

Marketing Concept And It’s Application In Customer Services
Abstract
The need for marketing in banking was not recognized because for a very long time, banking was a seller’s market while most customers had the impression that they were privileged to enjoy the services of a bank. In addition, bankers have traditionally been bank-oriented (or service oriented), and only in recent years have they become customer-oriented. Based on the literature, the study conducted to examine how the commercial banks understand and apply the marketing concept in their operations. It also attempted to uncover the differences in the application of the concept to service and products. The findings of this study through the administration of questionnaire and oral interviews of some staff and customers of United banks showed that the application of marketing concept is relevant in banking operations. The research further revealed that banking industry applied the marketing concept in the operations in terms of researching into customer needs, and consulting them in decision marking. In the light of the findings, a number of recommendations were made. That the banks should be aware that services are intangible and consumption and sales are the major determinants of the good delivery to bank services. The banking industry should establish a marketing department, that is good, adequate and efficient that will see to the satisfaction of customers needs. The major aim of marketing is “customer satisfaction”. Banks should try and utilize professional marketing graduates in top banking management post, apart from the marketing departments.
Chapter One
1.0 Introduction
1.1 Background to the Study
To stay in business entails continuous business transaction between a company and its various customers. much is involved in achieving a big term survival needs.
Customers patronage is one of the major ingredients for a company’s long existence .patronage is one of the major ingredients for company’s long existence .patronage from the customer is achieved only when a company provide products and services that are able to satisfy the needs of such customer’s. This is the essence of employ marketing.
Marketing is define, by the American Marketing Association (AMA) as the performance of business activities that direct the flow of goods and services from the producer to the final consumer or user.
The institute of Marketing Britain defines marketing as management process which identifies, anticipates, and satisfies consumer requirement profitably. As economic environment changes so also does the underlying, philosophy of business operation changes initially business emphasis was on production which was actually spurred by the advent of industrial revolution of 1700 AD. Later, emphasis was shifted from production to product and to selling concepts .However, it is necessary to explain what the philosophy so if relates to production concept was all about them.
The first philosophy which was based on product orientation made management to reason in order to make profits, a business organization should seek to produce well and a fairly priced product .The emphasis was on mass production of goods as a way of reducing cost. It was established that mass production only led to excess products.
Attention then shifted from the product to selling orientation which was then solely reached upon to despise of the excess created by mass production. under the sales Orientation ,the emphasis was on selling techniques such as advertisement, sales promotion and the uses of salesmen. The inability of the sales orientation to solve the problem of glut eventually led to the emergency of marketing concept. Unlike the two earlier business philosophies of the customers. It states that the business Organization should take its direction from the market (transaction point) place by seeking to identify and satisfy the needs of Customers. By so doing, the attainment of the Long —term goals of the organization is enhanced. This is so Since customer patronage is pre-requisite for the organization survival and for the achievement of its goals further more, the marketing concepts, presupposes that the profitable satisfaction of the needs of customers can best achieved by co-ordinating and integrating all the activities of the organization.
The realization that the roots of continuing sales success stem back into the heart of the business led to the condition whereby customers needs satisfaction was taken into consideration by companies. Hence the modern marketing concepts which was Originated in 1950.
To a considerable degree, marketing concept has become a key ingredient of business philosophy, Mc Carthy (1964) view the concept as a central guide for action and planning by general management. Foster (1984) maintains that the basics of marketing concepts applies to services industries as such as to manufacturing .He went further to say that there might only be need to modify the techniques and tactics to suit the unique quality of intangible produce of servicing industries.
Services are those seqparately identifiable essentially intangible activities that provides want satisfaction .Banks are services oriented and need to supply marketing concept as a guide to their effective operation. However, significance differences do exit between product marketing and service marketing .The strategies and practices used in conventional product marketing often are in appropriate for service marketing due to unique special characteristics of services between which are different from those of the product.
Service are INTANGIBLE .It is highly impossible for smell before they purchase them. The intangible of service makes ownership not transferable.
Service are INSEPARABLE from the seller, hence they are sold and consumed almost at the same times.
Heterogeneity is another characteristic of services .it is not possible for service provided or rendered by service industries to be standardized .the quality of services rendered at different time differ.
Finally services are highly PERISHABLE in nature and therefore cannot be stored.
The researcher look at marketing concept as applied by financial serve industry with particular reference to commercial banking activities and a case study of United Of Bank Africa.
1.2. Statement of the Problem
Commercial Banks need marketing their services to their various customers. As performance is the key word, bank staff especially the cashiers and other clerk serve as the image maker of Commercial banks as they deal directly with the customer.
Customers in nearly all the banks in Nigeria have at least for one time or the other complained about the poor services rendered as many customers have become less aggrieved with the services received from these banks.
Customer’s complaints centre around unnecessary waste of their time by bank officials during deposits, withdrawals, and other banking services, preferential treatment, Poor human relation and rudeness of bank officials to customers, difficulties in securing overdrafts and inadequate infrastructure facilities (like parking space for customer’s convenient waiting hall, toilet etc).
The inefficiency of banks and their poor performance are result of non-applicability or lack of knowledge of the modem marketing concept. And it is on this basic that this research topic was chosen to find out how marketing concept in United Bank of African was applied to improve better performance.
1.3 Purpose of the Study
The major aim of this research work is to carry out a critical study of united bank plc operations Onitsha main branch.
The study is intended to fmd out.
- Whether the relationship between bank officials and customer are cordial.
- The activities of marketing department of the bank if such exist at all.
- How the customer get informed on the availability of the services rendered by the bank.
- Lastly, to evaluate the customer’s view and complaints about the banks services as said in statement of the problem.
1.4. Research Question
The following research questions were formulated to enable the researcher to carry out appropriate investigation.
- How long do customers spend during business transaction.
- What is the average duration period for current account transaction?
- How do you differentiate this bank and others banks, in terms of treating customers.
1.5 Significance of the Study
The result obtained from the study will be of benefit to the Management of Commercial Banks and the entire banking industry; the government; non-financial institutions; business entrepreneurs; students of Marketing Department and other related courses and the general public as a whole.
1.6 Scope of the Study
The study centers on the marketing concept applied by the banking industry, with particular focus on united bank plc Onitsha main branch.
1.7 Limitations of the Study
The researcher achieved quite a great success with the use of the questionnaire, since most of the respondents that filled the questionnaire were quite skeptical with united bank plcand the entire banking industry in Nigeria.
They were eager to air views to toward this direction
However, this study could have been more comprehensive and elaborate, but for the uncooperative attitude of the bank. The bankers found it difficult to give out vital information, which would have been useful to this study and the commercial banks in Nigeria.
Another limitation is inadequate funds at the disposal of the researcher and also, the researcher was carrying out this study in her final semester and enough time was not available. Whatever information that is contained in this paper was made more possible by the fact that the researcher later gave all respondents an assurance that all information obtained will be treated in the strictest confidence and that it was a mere academic exercise.
1.8 Definition of Terms
Some of the terms used in this research work are defined below for easy understanding and interpretation.
Marketing Concept:
The philosophy which states that customers satisfaction is the economic and social justification for a firm existence.
Chapter Five
Summary, Conclusions and Recommendations:
5.1 Introduction
This chapter summarizes the findings on marketing concept and it’s application in customer services using United Bank PLC Onitsha main branch, Anambra State as case study. The chapter consists of summary of the study, conclusions, and recommendations.
5.2 Summary of the Study
In this study, our focus was on marketing concept and it’s application in customer services using United Bank PLC Onitsha main branch, Anambra State as case study. The study is was specifically set to ascertain whether the relationship between bank officials and customer are cordial, the activities of marketing department of the bank if such exist at all, how the customer get informed on the availability of the services rendered by the bank, and evaluate the customer’s view and complaints about the banks services as said in statement of the problem.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are customers and staff of United Bank PLC Onitsha main branch, Anambra State.
5.3 Conclusions
In the light of the analysis carried out, the following conclusions were drawn.
- Marketing concept is relevant in banking operations.
- There is an existing formal marketing and customer service department in united bank plc.
- The application of marketing concept facilitate researching into customers needs.
- The banks do not meet up with all the their services.
- Customers do spend much time when performing business transaction.
- Customers do not respond favorably to services provided.
- The common customer’s view and complaints about the banks services include; Preferential treatment, Poor human relation, rudeness of bank officials to customers, difficulties in securing overdrafts, inadequate infrastructure facilities, and unnecessary waste of their time by bank officials during deposits, withdrawals, and other banking services.
5.4 Recommendation
Based on the findings the researcher recommends;
- Branch manager should lead by example by providing good and effective leadership as this is one of the determining factors with regard to quality of services offered to customers. Again, the bank should embark on intensive training programme for all categories of its staff, especially in the areas of public relations and human relations management so that at each time while at work, the workers could know the importance of being customer-oriented.
- The banks should be aware that services are intangible and consumption and sales are the major determinants of the good delivery to bank services. The banking industry should establish a marketing department, that is good, adequate and efficient that will see to the satisfaction of customers needs. The major aim of marketing is “customer satisfaction”. Banks should try and utilize professional marketing graduates in top banking management post, apart from the marketing departments.
- The banks should segment its market and work towards meeting the needs of all categories of its potential and actual customers, because the more characteristics the market is segmented by the more practice the manager’s knowledge of customers is. The customers especially the unenlightened ones should be made to feel as part and parcel of the business because they are customers and without them, the bank cannot exist.
- The delays in cashing cheques or in doing other transactions should be reduced by computerizing. The bank should embark on aggressive promotional activities so that the customers could be informed more regularly about the services and bank offers. This will help the bank to be on its proper footing in this era of competitive banking.


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