Marketing Research And Its Importance In The Nigerian Banking Industry

Project and Seminar Material for Marketing

Marketing Research And Its Importance In The Nigerian Banking Industry


Abstract


Due to the economic condition of Nigerian business environment, Banks undertaking new product and services are faced with an environment which is characterized by long lead times from basic research to industrial application, a commercialization phase with short lead times and an increasingly accelerated rate of obsolescence under the global competition of the Product and service development process. Marketing problems are numerous and inevitable as most products are not doing well to satisfy the consumers, as a result of poor marketing research to improve the quality of the product. The basic objective is to address the importance of marketing research on Product and service development and also examine the circumstances under which marketing research can likely be used in the stage of product and service development and its impact on profitability. The questionnaire and interview methods were used to collect data for presentation and analysis. The simple percentage justified the entire findings and the statistical techniques of chi-square explicitly show that market research is pivotal tool for new product and management decision. The entire findings of the study shows that in an attempt to evaluate the use of marketing assessment on new product, the entire area of the study needs a proficient market research development, more budgetary allocation is needed to propel marketing research to boost new product. And the finding of this study is that Bank’s Organizational structures, reveal lack of marketing research department of its own and budgetary allocation to marketing research is inadequate. The recommendation clearly stated that Banks should take note of the type of research approach to use at the stage which is concerned with comparing the concepts with or against existing market of the competitor. Bank PHB believe that new product/service is their life blood; it can be the better way to survive firmly and be more competitive. In addition, the strategy of how to manage new product/service process effectively and efficiently is becoming a powerful way of achieving a competitive edge.


Chapter One


Introduction

1.1 Background of the Study

African Banking Corporation which established its first branch in Lagos was the first bank to open its doors in 1892. The colonial masters established the bank solely for their trade in Nigeria which was then a British colony.
According to Ugwanyi (2002:66) other banks come into existence such as British bank for West Africa (BBWA) now first bank of Nigeria Plc in 1894, and other Barclay’s banks. Dominion colonial and oversees (D.C.O) now union bank of Niger Plc. The British and French bank that was established in 1949. The entire expatriate bank dominated the banking arena and was discriminatory against the indigenous customer service the expatriate banks, such as discrimination obviously resulted in the indigenes clamour for the establishment of indigenous banks.

According to Adeleanye (1983: 79 – 80) between 1930 and 1940 the Nigeria activists spearheaded the move to establish indigenous banks that would render creditable services to the indigenes, as the expatriate of such services. Their efforts yielded divided in the 1940’s with the establishment of many banks in Nigeria.

The importance of the banking industry became more pronounced with the establishment of the central bank of Nigeria (CBN) in July 1989, which was sequel to the promulgation of the CBN ordinance of 1958. As a result of various regional governments and co-operative movement established banks in order to enhance economic development of their regions in particular and country as a whole.

Accordingly, the growth of the banking industry become more vivid with the indigenization policy in the early 1970 when more banks were opened by the end of 1981, there were 27 banks with 1,213 branches in Nigeria.

The spring up and survival of the banking industry can be attributed to marketing research.

A systematic approach to the problem of management of modern business. One of the principal functions of management is to make decision. Marketing decisions are peculiarly difficult to make and their effect are felt throughout the business world.

The emphasis on the indispensable role of marketing research as a framework is principally accounted for in the growth and development of any organization. In recent years, interest in the role of marketing research to product, planning and development in banks has grown.

The American marketing Association (AMA) study showed that over 73 percent of larger companies have their own marketing research department. And to be precise each department has established in the past five years.

With the growing emphasis on supply the individual needs of particular kinds of customers, where ever they may be. It is essential that some organized research should be undertaken to identify market opportunity. The competitive conditions of trading which characterize practically every market today, both nationally and internationally, demands of flow of reliable marketing intelligence (CHISNALL 1981).

According to Tall and Hawkers (1980:1) marketing research has an adversary role in marketing management. It is used to acquire and analyze information and to make recommendation to management as to how market problems should be resolved.

According to Zikmund (1987:11) the prime managerial value of marketing research is that it reduces uncertainty by providing information that facilitate decision making about marketing strategies and tactics used to achieve an organizations strategic goals.

  1. Developing and implementing marketing strategy involves the following:
  2. Identifying and evaluating opportunities used
  3. Analyzing market segments and selecting target market
  4. Planning and implementing a marketing mix that will satisfy customers need and meet the objectives of the organization and analyzing market performance.

As a means of implementing marketing concept, marketing research helps in obtaining information that identifies the consumer’s problem and needs, bridge gap between marketing executives and the customers.

In the long history of business enterprise, management has devoted most of its attention to managing money, material, machines and men. Management has paid less attention to the fifth recourses of the form information.

Many firms in Nigeria have not yet adapted to the intensified information requirement for effective and efficient method of harnessing their resources. This will also make for speedy economic development of the country.

Marketing research is the systematic, gathering; recording and analysis of data about issues relating to marketing products and services. The term is commonly interchanged with market research however; expert practitioner may wish to draw a distinction in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.

Marketing research is often partitioned into two sets of categorical pairs, either by target market.

  • Consumer marketing research and
  • Business – to – business (BzB) marketing research.

Or, alternatively, by methodological approach

  • Qualitative marketing research and
  • Quantitative marketing research.

Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences, attitudes and behaviors’ of consumers in a market-based economy and it aims to understand the effect and comparative success of marketing campaigns. The field of consumers marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the AC Nielsen Company in 1923.

The Goals Of Marketing Research

The goal of marketing research is to identify and asses how changing element of the marketing mix impacts customer behavior.


1.2 Statement of the Problem

Marketing research is a crucial aspect in Product and service development it‟s the very first step to which determines the success of any product. It acts as the foundation and cornerstone of any product.

Unfortunately the importance of marketing research is the aspect that receives the least attention; business need not only rely on promotional strategies, but have to fine tune their marketing research programme with view of improving the quality of theirproduct.

To obtain the desired and appropriate results from marketing research, an Bank must be guided by certain plans to satisfy all or at least most of the Bank objectives for it to be worthwhile.

Thus marketing research if well defined, and formulated has an impact on Product and service development of an Bank and extent to which the firms put marketing research into practice or effect in solving their marketing problems is what this study intends to examine.

Marketing research is now widely accepted as one of the most important asset possessed by Banks


1.3 Objectives of the Study

  1. Highlighting and emphasizing the importance of marketing research on Product and service development on the Nigerian banking sector.
  2. To examine the effect / extent of marketing research contribution to Product and service development in Bank PHB
  3. Examine circumstances under which marketing research is more likely to be used in the stage of Product and service development in Bank PHB
  4. Identify the factors that influence marketing research on Product and service development in Bank PHB.

1.4 Research Questions

  1. What are the importance of marketing research on Product and service development on the Nigerian banking sector?
  2. What is the effect / extent of marketing research contribution to Product and service development in Bank PHB?
  3. What are the circumstances under which marketing research is more likely to be used in the stage of Product and service development in Bank PHB?
  4. What are the factors that influence marketing research on Product and service development in Bank PHB?

1.5 Significance of the Study

The important area focused by the study is the importance of marketing research on the Nigerian Banking sector; it is intended to achieve two aims; to contribute to both theory and practice of marketing in Nigeria.

One of the greatest and surest ways of achieving customer satisfaction is the planning and implementation of proper marketing research programme in any business Bank.

Moreover, the new marketing concept emphasizes on customer satisfaction and integration in the Bank towards achieving the single purpose. Therefore, to make these possible, marketers must research properly so as to know the changing need of their customers and the activities of their competitors.

Also the need to re-examined other tools which could be used to reduce the high rate of product failure instead of relying heavily on promotional activities with other tools in marketing to establish whether or not new product will be accepted in the market, it will also expose other areas that have inherent characteristics that make marketing research inevitable instrument for product development.


1.6 Scope of the Study

This study is analytical in nature to Product and service development found in commercial Banks; the reason behind this delimitation is because the study intends to assess the importance of marketing research on Product and service development in the Nigerian banking sector.

The scope of this study is limited in four respects: the unit of measure for this research, the classification of the firm, the type of technology of the firm and identification of firms for the study. First, consider the unit of measure for this research. The unit of measure for this research is the product/service of the firm, classification of the firm is financial institution, type of technology is ICT and identification of firm is bank PHB.


1.7 Limitations of the Study

Some constraints were encountered, during this project. These limitations do not suggest that it is an unfulfilled activity, it only suggest that the activity was conducted with proper care and caution which will make the activity meaningful and result oriented;

Miscellaneous limitation problem developed due to changing environment.

Uncertainty of conclusions consumer is the focal point, buying motives are difficult to judge precisely and accurately which bring some sort of uncertainty.

Complexity of the subject it fails to give complete and correct guidance to the management on marketingissues.

Also cost expensive and time consuming activity it take longer period for completion and the finding when available may prove to be outdated due to fast changing market environment and cannot study all new marketingproduct


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

The research is an assessment of the Importance of marketing Research on the Nigerian Banking sector, which is divided into five chapters.

  1. Chapter one introduced the study, it states how marketing has been an important tool for determining the success rate of a new product generating more revenue for the entire success of Bank PHB. It also consists of the statement of the problems, significance of study, limitation of the study, scope of the study, limitation of the study and definition of terms. The objective of the study was to examine the contribution and the importance of marketing research on Product and service development, and examine circumstances under which marketing research is more likely to be used in the stage of new products development and the importance of marketing research on the profitability.
  2. The chapter two explains why the researcher has decided to go into the area of study. The literature consists of the area of product control, sales, targeting and sales forecasting, it states that although, marketing performance in the market, not much emphasized in most Banks. Attempt has been made to look at some theories, research in marketing and the types of research that exist in the field of marketing such as product research, consumer marketing analysis, sales promotion, primary research, distribution researchetc.
  3. Chapter three explain the research design of study, techniques and sample size, methods of data collection, method of data analysis and research instruments used. In all, the chapters explain how the research came about, how the data was collected and how the data was analyze to help solve the problem at hand.
  4. Chapter four dealt with the analysis of the relevant data collected for the research, the chapter also dealt with interpretation of the data.
  5. Chapter five is just the summary of all that is contained in the first four chapters. It contains the summary, conclusion, recommendation and references.

5.2 Conclusion

Despite the huge amount of money spent for the promotion activities in most Banks, the products are not well recognized. This means that the planning and development stage of the Bank are the most important areas to consider before any other thing.

Banks succeed more with uniqueness rather than uniformity. Uniqueness entails doing things completely different from the usual way adopted by competitors and other Banks. To have uniqueness in methods, procedures, processes and systems, Banks need to have the right caliber of people to bring about these changes to stimulate them and to live with them for the purpose of gaining a competitive edge and advantage over the competitors. To achieve these, Bank must spend a lot on marketing research to achieve uniqueness and product delivery.

If sufficient research is undertaken, then the chances of failure are reduced. Indeed, the danger that many Banks wish to avoid is the development of products without any consideration of themarket.

Marketing research would lead to higher new product/service success, and that the integration of marketing research would be the most important of the factors contributing to success in new product/service of Bank PHB. Banks which use marketing research intensively and understand consumer response in great depth are more likely to have higher success rates. The more extensive use of marketing research appears to be related to more experience in doing new product/service and a larger role for new products in the Banks. Use of marketing research also allows Banks to set quantitative goals for new products, and more carefully evaluate performance after launch.

Also most Banks can be regarded as pace setters or market leaders in their various markets, if only they take time in doing marketing research on Product and service development.


5.3 Recommendations

In order to undertake a systematic product planning and development, in marketing research, the researcher is making the followingrecommendations.

  1. Most Banks should invest in promotional activities to enable the product sell in the market and to increase the profitability of theBank.
  2. Also Banks should adopt the scientific method of product planning and development within the context of marketing research.
  3. Another recommendation that can be put forward is that, more money should be invested in promotional activities to enable the product sell in the market.
  4. That they should also conduct gap analysis of the existing products by interviewing a representative of consumers to find out their views about the Bank’s existing products before thinking of producing another one.
  5. They should also take note of the types of research approach used at the stage which includes monadic approach which is concern with comparing the concept with or against existing market after of the competitors. The Holistic approach of data about the marketing mix variable such as price, promotion package and distribution.

Although the Banks conduct testing, it may suggestion that the Bank studies very well the procedure of product testing which varies from Bank to Bank and product to product. It is also expensive since it involves raw materials, machinery, and accuracy of new skillproduction.

Like product testing, marketing test also involve some procedure of which I will suggest Banks to adopt to ensure successful marketing test, and take note of the information required during the marketing test.


Get Complete Project Material

5,000 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…


Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to the Account Below

Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card


FOR STUDENTS OUTSIDE NIGERIA
CLICK HERE To Purchase Material ($15)

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: Marketing Research And Its Importance In The Nigerian Banking Industry

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply


  Contact Our Help Desk


Need a Different Topic? Perform a Quick Search



List of Related Works

Click on Any Topic to Preview the Content

samphina.academy

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.