INTRODUCTION
There are many definitions of the concept of marketing and it will be an exercise in futility in trying to have a universally accepted single definition of the concept of marketing here.
However, according to Mr. J.B. Ola, AGM Afribank Nig. Plc Ilupeju Branch give the definition of marketing. It can be grouped into three:
According to the marketing concept
According to the marketing management
According to functions of marketing
Marketing according to the concept is of the view that “all business exist in order to satisfy consumers” deem and i.e. marketing is the whole business seen from the point of view of customers or the final result (satisfying customers). It can be seen this definition that all marketing activities should be viewed as KING is always RIGH, hence customers should be satisfied.
Marketing according to management is the process of determine customers demand for a product or service, motivating its scales and distributing into ultimate consumption at a profit.
Looking at this functional definition of marketing, it can be said that marketing is concerned with identifying customer’s needs for a product or services and transferring this identified needs into derived demand and also bringing buying, into contact with the sellers at a profit to the organization.
Finally, looking at marketing management view, “marketing can be viewed as the performance of business activity which directs the flow of goods and services from producers to customers in other to satisfy customers and accomplish the company’s objectives.
According to American Marketing Association (AMA) marketing management is the analysis, planning, implementation and control of programmes designed to bring about desired exchange with target audience for the purpose of co-ordination of products, price, promotion and place for the achievement of effective response. In addition, marketing management according to Joseph Seiber is concerned with the exchange of process; this includes the relationship between and its customers and that between the marketing function and the others of business.
According to British Institute of Marketing (B.M) marketing is the “anticipating, identifying and satisfaction of customers, wants profitably.
Marketing Mix or Tools: are regarded as marketing decision variable and these can used in varieties of ways, achieve a marketing objective. The mix is the price, place, promotions, products and packaging. According to Phillip Kotler, marketing mix is the setting of a firm marketing decision at a particular point time. These variables can be arranged in varieties of ways to achieve varying marketing objectives.
The banking industry on the other hand is responsible for provision of financial services to their customers. These services include and are derived from their landing function and whereby they grant loans overdraft, discounts, bill of exchange , providing facilities for making payment via Bank notes and cheques safe depository of customers monetary and other valuable assets.
The banking ordinance of 1958 defined banking as “the business of receiving from the public or current account money which is payable on demand by cheque and of making advances to customers”. The practice of banking then was restricted to banks that are licensed and having a pay-up capital of $12,500 for indigenous banks and 100,000 for expatriate’s banks with statutory reserve of 20%. The banking ordinance of 1952 was amended by the business of receiving money from outside sources, irrespective of payment of interest and granting of money, loans and acceptance of credit, or the purchases and sales of securities for account of others or the incurring of the obligation to acquire claims in respect of loans to maturity on assumption of guarantees and other warranties for others or for effecting or transfers and clearing such other transactions as the commissioner of what may allow or recommendation of the Central Bank by order published in the federal Gazette and designated as banking business.
Banking business in Nigeria can be classified into two:
Wholesale Banking
Retail banking
Wholesale banking can be defined as financial institutions providing specialist banking services function of accepting bills of exchange, corporate financing, portfolio management and equipment liaising. According to Mr. J.B. Ola, Assistant general Manager (AGM) of Afribank “we are a wholesale bank and we deal with corporate clients. Only a minimum balance of N50, 000 earns interest”. This description can be adopted for wholesales banking in the Country. Retail banking involves commercial banks, they perform, the functions of accepting deposit from customers and giving loan and overdraft plus other customers services.
The need to market commercial bank services cannot be over emphasized due to the countless number of services which they provide and according to Chief Ola Falae, former Finance and Economic development minister, he said, as for bank in 1996 that “ the banking industry abounds with 150 new products and services all packaged to attract customers. Hence, there is need for a bank that wants to survive beyond 90’s to develop marketing strategies that cut across to the customers’ needs and satisfaction profitability.
Marketing in commercial bank is of great importance in that with that present awareness of banking services there is need for the industry to engage in vigorous awareness programmes, aims at its customers. The increase in the number of banks in the country has made marketing to something that has to be done else they would fold up, as witnessed by vigorous banks folding due to fierce competition existing in the sector.
Furthermore, prior to increase in number of banks operating in the country and deregulation of interest rates, banks did not engage much in marketing of their products. However, with increase in the number of banks did operating in the country, advertising alone was found to be inadequate, hence the need to use strategies which have hither to not being used.
LITERATURE REVIEW
2.0HISTORICAL BACKGROUND OF BANKING IN NIGERIA
The banking industry is responsible for provision for financial services to their customers, these services is derived from lending function whereby they grant overdraft facilities, discount bills of exchange, providing facilities for making payment via banknotes and cheques safe depository of customer monetary and other valuable assets. Decree 25 of 1979 defines banking services as the business of “receiving deposit on current account, saving and other similar accounts paying and collecting cheques drawn by or paid in by customers. The 1979 Decree 25 pegs the minimum paid up capital of banks as follows:
COMMUNITY BANKSN250, 000
MERCHANT BANKSN40, 000,000
PROFIT AND LOSS SHARING BANKSN50, 000,000
The first commercial bank established in Nigeria was the African Banking Corporation which was opened in 1982 by Messrs Elder Dempster and Company in 1893 as a result of financial difficulties encountered and the name was changed to the British Bank of West Africa (BBWA) with initial capital of 10,000 pounds and later increased to 100,000 pounds during the same year and it was later registered as a limited liability company.
Over a century ago, there were no banks in the country. However, with continuous development of West African market and advent of the European in Nigeria and other West African countries, having trade links with the North and East via Sahara trade use of commodity money was not uncommon. In 1876, 25% of the Royal total mint silver coins were circulated in West Africa and at this time, the idea of establishing a bank similar to those in Britain was noted by British Business Men.
With introduction of British Banks for West Africans (BBWA) in 1893, it led to introduction of other banks in Nigeria, and in 1899 another banks was established by the Royal Niger company, then Anglo African Bank which was later changed to Bank of Nigeria established branches in Burulu, Lokoja and Jebba and mode, old Calabar as its head offices to compete with BOT both bank for West Africans but due to force competition it had with BBWA and because of the latter monopoly on the importation of Silver from the Royal mint. It enjoined the Bank of Nigeria in 1912. From 1912 to date, a lot of commercial banks have spring up and have been contributing to the economic development of the country.
In understanding the evolution, commercial banks have sprung up and have contributing to the economic development of the country.
In understanding the evolution of banks in Nigeria there is a need classify the periods into two:
1.NEOPHYTIC BANKING ERA (1892-1952)
2.REGUALTED BANKING ERA (1952-DATE)
NEOPHYTIC BANKING ERA (1892-1952)
According to Mr. Foluso Olalusimbo book “Introduction to Banking” the Neophytic banking era in which the banking sector had little or no regulation, then the banking institution was subject to the provision of section 2(7) of the company ordinance. The first indigenous and fully owned Nigeria bank was set up in 1931 b y Dr. Amana T.A. Doherly and if a Subair and it was called the Nigerian Merchandise bank and if a Subair and when it folded up in 1936, its shareholders formed the National Bank of Nigeria (NBA) with authorized share capital of 250,000 pounds. Chief Okupe in 1945 established the Agbonmagbe Bank (now known as Wema Bank since 1969) this led to the formation of other banks by other Nigerians.
During this period a lot of banks sprang up and died as a result of lack of adequate regulation of the banking industry as it was run by non-professionals and non-competent individuals.
The patron commission was set up in 1984 to recommend to government after through enquiry into the banking environment on the need for nature of control the government should introduce into the banking industry. The first banking legislation in Nigeria was enacted in 1952, draining mostly from the patron commissions report was submitted in 1948. The law was necessary at the time because of the need to protect the interest of customers and repose people’s confidence in the banks in view of the wave of bank failures in the 1940s which was further actuated in the early 1950s.