AN EVALUATION OF STOCKS MARKETING IN THE NIGERIA STOCK EXCHANGE (A STUDY OF ENUGU AND ANAMBRA STATES)

AN EVALUATION OF STOCKS MARKETING IN THE NIGERIA STOCK EXCHANGE (A STUDY OF ENUGU AND ANAMBRA STATES)

ABSTRACT

Marketing of stocks extend beyond buying and selling of stocks on the floor of the Stock Exchange Market. It starts with and ends with investors but facilitated by stock brokers. It involves the adoption of marketing strategies which comprise a planned and systematic activity aimed at identifying, anticipating and satisfying investor’s stock needs and wants profitably. However, this study focuses on the marketing of stocks in the Nigerian Stock Exchange Market vis-à-vis the experience of the stock brokers in Enugu and Onitsha. The problems tackled revolved around marketing effort of the stock brokers especially as it concerns application of marketing strategies in stock marketing. Some of the objectives of the study include: To identify and examine various types of stocks traded in the stock exchange; to ascertain whether stockbrokers employ personal selling as a marketing of stock. To determine whether stock brokers use marketing communication strategies such as financial public relations in their efforts to market stocks in the Exchange. To identify and examine the extent stock brokers use relationship marketing in marketing stocks to clients/ investors.

Literature relevant to the topic where extensively reviewed and this formed the bulk of chapter two of the study. Both primary and secondary data sources were gainfully employed. Primary data course used are questionnaire and interviews. Both were used to elicit response from the respondents. Descriptive statistics were employed in the data presentation and analysis, while chi-square was used in testing the hypotheses. At the end, some findings were made. First, stock brokers use different marketing strategies in their effort to market stocks in the stock exchange market. They also use financial public relations on investors. It is therefore, recommended that, stockbrokers, especially those who do not have deep knowledge of the marketing concept should always go for National Courses annually, organized by National Institute of Marketing of Nigeria (NIMN) and the Nigerian Institute of Public Relations (NIPR).

TABLE OF CONTENTS
Title Page – – – – – – – – – i
Certification- – – – – – – – – – ii
Approval Page – – – – – – – – iii
Dedication – – – – – – – – – iv
Acknowledgements – – – – – – – – v
List of Tables – – – – – – – – vii
Abstract – – – – – – – – – vi
Table of Contents – – – – – – – – vii

CHAPTER ONE
1.0 Introduction – – – – – – – – 1
1.1 Background of the Study – – – – – – 1
1.2 Statement of the Problem – – – – – – 4
1.3 Objectives of the Study – – – – – – 4
1.4 Research Questions – – – – – – – 5
1.5 Formulations Hypotheses – – – – – – 5
1.6 Scope of the Study – – – – – – – 6
1.7 Limitations of the Study – – – – – – 6
1.8 Significance of the Study – – – – – – 7
1.9 Definition of Terms – – – – – – – 7
References – – – – – – – – 9

CHAPTER TWO
CHAPTER TWO – REVIEW OF RELATED LITERATURE
2.1 The Scope of Marketing – – – – – – 10
2.1.1 What is Marketing – – – – – – – 10
2.1.2 What is Marketed – – – – – – – 11
2.1.3 The Marketing Concept – – – – – – 12
2.1.4 Relationship Marketing – – – – – – 12
2.1.5 The Marketing Mix – – – – – – – 13
2.1.6 Public Relations – – – – – – – 14
2.2 The Nigerian Capital Market: A Focus on the Secondary Market- 14
2.3 Historical Background of Nigeria Stock Exchange – – 18
2.4 The Nigerian Stock Exchange in the Millennium – – 21
2.5 Types of Securities Traded in the Millennium – – – 23
2.6 The major participants in the NSE – – – – – 27
2.7 The Stock Brokers: Who are they and what do they Do?- – 28
2.8 Application of the Marketing Concept in the Marketing of Stocks- 33
2.9 Marketing Strategies Employed by Stock Brokers in Marketing
Stocks in the Exchange Market – – – – – – 35
References – – – – – – – – 38

CHAPTER THREE
3.0 Research Design and Methodology – – – – 41
3.1 Introduction – – – – – – – 41
3.2 Research Design – – – – – – – 41
3.3 Population of the Study – – – – – – 41
3.4 Sampling Procedure – – – – – – – 42
3.5 Sample Size Determination – – – – – – 42
3.6 Data Collection Instrument/Procedures – – – – 43
3.7 Method of Data Analysis – – – – – – 44
References – – – – – – – – 45

CHAPTER FOUR
4.0 Data Presentation and Analysis – – – – – 46
4.1 Introduction – – – – – – – 46

4.2 Analysis of Questionnaire Distribution- – – – – 46
4.5 Test of hypotheses – – – – – – – 63

CHAPTER FIVE
5.0 Summary of Findings, Conclusion and Recommendations – – 70
5.1 Summary of Findings – – – – – – 70
5.2 Conclusion – – – – – – – – 71
5.3 Recommendations – – – – – – – 71
Bibliography – – – – – – – – 73
Appendix – – – – – – – – 77

CHAPTER ONE

1.0 Introduction

1.1 Background of the Study

The term, “the Stock Market, is a concept for the mechanism that enables the trading of company stocks (collective shares), other securities and derivatives. Hence, the purpose of Stock Exchange (also called the Exchange) is to facilitate the exchange of securities between buyers and sellers, thus, providing a market place (virtual or real). The real market place is the physical locations where transactions are carried out on a trading floor, by a method known as open outcry. The virtual kind of market is composed of a network of computers where trades are made electronically via traders at computer terminals (Okafor 1983: 89, Okafor 1996:90, Kee 2000: 2).

AN EVALUATION OF STOCKS MARKETING IN THE NIGERIA STOCK EXCHANGE (A STUDY OF ENUGU AND ANAMBRA STATES)