DEPOSITS MOBILIZATION THROUGH MARKETING OF BANKING SERVICES

CHAPTER ONE

1.1   INTRODUCTION       

  Deposit mobilization is the bedrock of the present future growth of banks. In the past emphasis was on marketing and distribution of goods but with recent development which arises due to technological economical and social changes as well as changes in the people expectation marketing of financial services has gone beyond these for the continuous survival of financial institution.    

    The traditional approach to banking began to chances as bankers come to realize that marketing has a role to play in any modern organization whether such organization is profit oriented or not profit oriented. The role of marketing becomes important in Nigeria as the business of banking grow from the function of taking deposit; lending money transmission service to include a host of other financial services. Profit making activities in an organization is very important, profit have to be made ensured survival and to finance development.   

      In an organization like commercial banks profit marketing strategy in business. It involves the effort to understand and satisfy the need of both present and potential customers. In order to satisfy customer, the need for the application of different element knows as marketing mix.         The marketing mix which can be define as the combination of element which must be linked of mix of together in a unique manner of devise marketing strategy. Decision made in each of these arenas are design to provide the most promising means of meeting the needs of target market, that is a well defined set of customer whose needs the marketing want to satisfy.      

   The banking industry in Nigeria is highly competitive, the establishment of new bank like Oceanic bank, Zenith bank, Diamond bank etc. in recent years and the opening of numerous rural branches by the  bank has increases completion within the banking industry. The completion centers around quality of services provided location, building and tradition, contracts, other area of competition include innovation and adoption of modern technique like computerization of their services.         Unlike the marketing of tangible good whose main task is to formulate strangles for pushing their goods to the final consumers, marketers of banking service have tow to achieve in their marketing strategies.    

     The primary function is to mobilize funds for lending purpose by an accepting various account like savings time or fixed deposits and current demand deposit.      

   These functions are not limited to the trust banking alone. Furthermore the marketers of banking service also needs to design strategy for investing their funds just like marketers of tangible ways were each subset may be regarded as largest market. The banking market is also segmented into money and capital market and this according to the type of financial and required by the customers.