ACHIEVING OPTIMUM SALES TARGET AND PROFITABILITY IN FINANCIAL SERVICES MARKETING THROUGH EFFECTIVE MARKETING STRATEGIES

ACHIEVING OPTIMUM SALES TARGET AND PROFITABILITY IN FINANCIAL SERVICES MARKETING THROUGH EFFECTIVE MARKETING STRATEGIES

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Promotional strategies are one of the most important ingredients, which enhance growth, development, and survival of any organization. Therefore, for any business enterprise to succeed in the market there is the need for it to always device new promotional techniques to meet the challenges of times. One of the biggest challenges facing services industries such as bank today is how to maintain their market share in today’s largely dynamic and competitive environment.

Before going further, it will be important to point at the fact that customers are the live wire of any organization and they are the primary session why an organisation survives without their repeated patronage, the organisation cannot go beyond the initial turnover of the promoter’s equity. If an organisation does not treat customer well they will move to the next competitions.

In the past the use of promotional concept or techniques were not considered necessary due to the shortage of supply of product and services, whatever was produced was consumed up. The service industry did not realize the importance or even the relevance of finding out what customers wanted or needed and then producing a product or service that best satisfies the need and  want of the customer. The promotional concept holds that the key to achieving organizational goals consist in determining the desired   satisfactions” Kotler (1984:67).

The banking industry employ a variety of promotional mix strategies in that suit their product offerings for example, the  banks are moving away from their traditional range of products such as ordinary current account, granting loans. Overdraft corporate finance to move customers orientated products. In this direction banks have gone to segment (device) the large nitrogenous market into homogeneous sub-market to banks also specialized in specific services to cater for the few segment. Due to the increased level and complexity of Competition and that changing characteristics of the market, Services industry such as the bank have now restored to Intensive promotional strategies.

1.2     Statement of General Problem

The Nigerian banking industry is highly competitive and participating banks have the task of designing and implementing appropriate promotional strategy to ensure survival and growth within.

To specific extent, UBA is amongst the leading banks in Nigeria, but its competitive strength is being weakened by a number of factors, thus including the following:

Poor commitment to organized promotional research to determine, on continuous basis evading threats and emerging opportunities within the industry, Poor customer relationship management resulting in customer attrition and lost of vital resources, In appropriate choice of promotional and promotional strategy to suite the dynamic banking services promotional.

In view of these constraints, this research project makes an attempt at determining the causes and effect of these shortcomings and to provide realistic solutions to them to enhance the banks’ performance within the Nigerian banking sector.

1.3     Objectives of the Study

The main objectives of this study are to identify the promotional strategies in the service industry with focus on banking industry that apply not only computerization but promotional concepts and techniques in its promotional activities.

-              To identify the promotional strategies that is peculiar to the promotional of banking industry.

-              To examine the implementation of promotional techniques, principles and other promotional strategies in the promotional activities of UBA.

-              To find out the prospects in term of sales profitability of the bank since the application of marketing strategies in its promotional strategies in its marketing activities.     

-              To identify the problems facing financial services industries. In its promotional environment particular in Northern State of Nigeria.

1.4     Scope of the Study

For the purpose of this research work, the researcher limits the study to UBA branch at Yakubu Gowon Way, Kaduna North local government area. The researchers also cover some areas like element of promotional strategies; procedure for effective promotional strategies, benefits derived form promotional mix etc.

1.5     Statement of Hypothesis

Hypothesis is a testable, tentative probable explanation of the relationship between two or more variables that create a state of affairs.  The following hypothesis is formulated to facilitate the research objectives;

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