Bank Services – Marketing In Nigeria

Bank Services – Marketing In Nigeria

Bank Services – Marketing In Nigeria

Employing a market executives in a bank a few decade past would have been improper, because marketing was considered applicable only to goods and not to services and banks belongs only to the service industry.

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However, banks are becoming more marketing conscious in this present years. Before further analysis of the essence of the marking of banks services, a brief discussion of the development of commercial banks in Nigeria will be made.

The business of modern banking started in Nigeria in 1892 with the establishment of African Banking Corporation. The Bank lasted for two years as its assets and liability were taken over by the banking British West Africa in 1894 which is known as first Banking of Nigeria Ltd.

In 1917, colonial Bank (Barclays bank, and now Union Bank of Nigeria Plc.) was established. Other banks that were established during the Neophtic Banking era are the Nigeria Merchant like Bank (19311) Agbommagba Bank 1945 (now Wema Bank), the African Continental Bank Ltd (1947) to mention few. The failure of many banks during the neophytic Banking era led to the regulated Banking era of 1952.

The activities of these banks centered on commercial Banking related to the financing of exports and imports and not much on industries until recently. Nigeria has got to the realm of world awareness with amazing speed in the recent time. The economy today present a vastly different picture to the situation twenty or thirty years ago, hence it caught the fancy of many industries and commercialist from every nook and cranny of the globe. There is the changing industrial and technological landscape in the attempt to diversify the economy, the changing management and administrative technique in all the sectors, the increasing international outlook of the business sector and above all, the changes test, expectation and increasing sophistication of the people, all of which have had tremendous impact on the marketing of goods and services in Nigeria.

Marketing is becoming increasingly in today’s banking competitive environment. Intensified rivalry from other institution has caused banks to think seriously about how they can compete effectively. This has led them to pay increasingly attention to marketing techniques.

“The marketing of the Banking Services relates to identifying and stimulating client needs which can be profitably satisfied by the banks” by Foluso Olalusi (1989) in his “The Practice of Banking”. Marketing search light in Banking focuses on increasing the deposit base of the banks and inducing credit worthy customers to borrow at profit.

This clearly differs from marketing of goods which is purely to stimulate customers to buy which the banks ‘buy’ the deposit of customers, it again ‘sells’ the deposit to borrowing customers at a rate slightly higher than the price paid for the deposit. In other words, banks lend at a rate slightly higher than the prime rate, the need for the marketing of bank services has become necessary in view of the continuous change in the social, economic, technological and political environment and this has impact on the shape and nature of markets served by the Banking industry. Equally the increase in the number of banks and her financial institutions and their operating branches has given rise to competitions among institutions producing financial services. Also banks operate in a near perfect market. No bank can substantially influence the market price and there is the homogeneity in service rendered. Therefore, the marketing require a calculated and planned orientation with best blend and effective market mix to know what , who, where and how to tackle this over dynamic situation for the survival of the banks and the marketing mix include pricing, promotion and distribution.

The achievement of the goods requires a team of staff members who are zealous, enthusiast, good spirited, have positive attitude, have marketing concept as their watch ward in their efforts to deliver the goods. Besides, marketing starts with the identification of the needs of the customers and not selling of goods or services, hence the team off staff needed in modern day marketing of banks services to be trained to have that orientation to enhance their performance in line with thee set plan of the banks as a whole.

Moreover, marketing of bank services is not just seeing the services from the eyes of the bank users, but also being in the right market at the right time with the services at the right place. This entails planning, support of top management, improved trend in banking customer relationship and organization of wide acceptance of the marketing philosophy.

The introduction and adoption of the concept of marketing principles as they apply to those of goods in marketing of bank services would therefore help the commercial bank in general to have an edge on their competitors.

However, this project is aimed at determining whether marketing concept as new business philosophy has been introduced and adopted by the commercial banks in the marketing of their services in Nigeria and the extent to which has been adopted.




1. Quick serve

2. Credit card

3. Cash evaluation from customers premises

4. Unisave account

5. Stallion express local money transfer

6. Vigo money transfer

7. Ria Express

8. Assets based financing



1. Equity Express Card.

2. Equity E – Pay

3. Consumer Leasing option

4. Phone Line

5. equity target savings account

6. Mobil bank account.



The essence of marketing bank service is to identify customers wants and plan low to satisfy them at a profit.

Banks need to be customer oriented in order to put play their competitors. The following problems are associated with the study.

1. Lack of introduction adoption of marketing concept in the commercial banks.

2. Lack of marketing research in identifying customers wants.

3. High cost of bank services

4. Much delays in rendering services

5. Low quality of services rendered that lead to unsatisfied customers.

6. The limited knowledge of the bank product

7. The low procedure for granting bank facilities.



This topic has been chosen because marketing of banks services in Nigeria is skill at low ebb. However, this study services us at finding out the following:

1. The role marketing plays in banking activities.

2. Why there are slow procedure for granting bank facilities.

3. The application of the concept of marketing in marketing its services.

4. Whether there are qualified professionals in the banks.

5. The problems faced in marketing banks services.



The working hypothesis I intend to test so as to enable me make a valid statement regarding this issue are:

1. Commercial banks do not carry out marketing research.

2. Marketing management has not been integrated in operation of commercial banks.

3. There is no good customer relationship between the commercial banks and the customers.



This study will make it possible to examine the operational efficiency of the commercial banks in Nigeria in order to evaluate the effect of the introduction and adoption of the marketing concept in the marketing of their services.

A way of monitoring and satisfying bank customers work through effective customers complaints management. The study will therefore reveal to banks especially Union Bank of Nigeria Plc, the importance of complaint management.



Nigerian economy, like other economics, is made up of very many sectors all interacting basically to the various sectoral activities is the need for fund. The need for financial transactions, procurement of goods and services, receipt for services rendered, particularly by factors of production, all make the financial sector, a focus of affection fro research studies and government control.

However, the banking system in Nigeria is categorized as follows.

1. The Central Bank

2. The commercial banks

3. The merchant bank

4. The development banks

5. The peoples’ banks

6. The community banks

This study which focuses on the marketing of banks services will be limited to commercial bank with a case study of union bank of Nigeria Plc.(Owerri branch office) and equity bank of Nigeria Plc.Owerri.

Also, union bank being one of the reputable commercial banks in Nigeria and one of the oldest bank established during the neophytic banking era is chosen because it is believed that it will serve as a true representative of other commercial banks in Nigeria.



Product – anything that can be offered to the market for attention, acquisition or consumption, it includes physical object, services, personalities, place, organizations and ideas.

New product- products that are new to the firm, major modification to existing products (relaunches) duplication of competitor’s products and the product line acquisition of which involves assimilation of something “new” into the product lines.

Intangibility: – that which cannot be touched or grasped by the mind.

Marketing mix:- the combination of elements which must be linked, or mixed together in a unique manner in devising marketing strategy.

Services: – is any activity of benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

Personal selling: – is the process of assisting and /or persuading a prospective client to buy a bank service or to act favourably on an idea that has commercial significance.




As started earlier that employing a marketing executive in a bank a few decade past, would have been considered a misnomer because marketing was considered applicable t goods and not services. However, some banks are becoming marketing conscious these days and the reasons for these developments are:

There is a continuous change in the social economic, technological and political environment and this has impact on the shape and nature of market served by the banking industry.

As the market change, it is necessary for the banks to change also.

The services rendered by the banks must be reflecting the changes in customer’s tests and preferences in the nature of services rendered.

Equally, increase in the number of banks and other financial institutions and their operating branches has given rise to competition among institutions producing, financial services. Commercial banks are thus faced with internal competition and competition with non-bank financial institution. It is therefore prudent for bankers t market their services.

Also the economic policies of the state seem to affect the disposable income of the citizens including consumers of financial saving via-a-vis producing other financial assets, or buying other assets given the inflationary trend. The more the level of inflation, the less the proportion of income that will be allocated to savings. Its therefore important to convince banks users that money saved will appreciate more in value than level of inflation to enable them commit their resources to savings. To be able to do this, effectively require marketing. Thus, banks can know the customers want and plan to satisfy the want at a profit.

Finally, the banks operate in a near perfect market no bank can substantially influence the market price and there is the homogeneity in service rendered. In other words, the services of the banks are alike in the minds of the customers. Marketing offers a unique opportunity to the banks to enable users distinguish the services of one bank from another.



Marketing as a discipline developed initially in connection with selling physical products such as tooth pastes, clothes and cars. When talking about marketing, there is this tendency to emphasize physical goods because they are more tangible and familiar. Marketing according to professor Kotler is defined as any human activity directed at satisfying needs and wants through exchange processes at a profit”. Customers needs and wants have to be satisfied and at a profit that is, those setting out to satisfy those needs and services must do so at profit so as to remain in business.

The purpose of which this project is to examine extent to which marketing concept has been adopted by the Union Bank and Equity bank Plc in marketing their services in Nigeria.

Marketing is identifying the most profitable markets now and in the future, assessing the present and future needs of customers, setting business development goods and making plans to meet them, managing various services and promoting them to achieve the plans.

Marketing concepts on other hand is management orientation that holds the task of the organization to determine the needs and wants of the target market and to adopt to the organization to delivering the desired satisfactions more effectively and efficiently than its competitors.

The marketing service function will therefore provide all levels of management wit relevant information about customer’s attitude and needs, change in market conditions and competitive activities as a basis for business development, ideas for the development of new products or services, sales communication materials designed to help achieve business development objectives and education of skills which are necessary for efficient performance of their jobs.

Commercial banks are in the service industry. They produce these service and market them to the consumers to enable them satisfy their wants. However, it is at this stage that it would be necessary to define service. Philip Kotler (1990) define services as any activity of benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything”

Services have a number of characteristics that must be considered when designed service marketing programme in relation to them.

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The characteristics among many others are:

1. Intangibility

2. Lack of standardization

3. Non-portability

4. Lack of market concept



Since services are essentially intangibility, it is often not feasible for customers to taste, feel or see them before they buy them. This feature of services places some heavy strain on the market. This burden often falls mainly on a company’s promotional programme where the sales force and advertising department must concentrate on, benefits to be derived from the services, rather than emphasizing the service itself.



Not many services are portable. For example the banks or the amusement park cannot easily be brought to the consumers, the consumers must go t them. Though there are inceptions.



It is impossible to standardize output among several marketers of presumably the same service. Even, it is not output of one seller. For example, a bank does not give the same quality of service to the same customer on each day the customers go to the bank it varies from day to day.



Service firms’ usually small ones often do not really consider whether their locations happen to be convenient for the customers.

However, there are signs that the marketing concept is beginning to be applied in the field of services. For example the more progress banks are now appointing marketing manager.

Therefore, before a commercial bank can do effective marketing, it must put into consideration the above characteristics of the products it markets. All marketing activities would then be designed taking cognizance of the various consequences of each of the features.




The external environment factors are said to be non controllable because with very few exceptions, little can be done to after them or change their influences. Marketing planning begins with analyzing its environment.

However, the following external environment forces impinge considerably on any company’s marketing efforts.

– Economic condition

– Social and cultural forces

– Technology

– Demography

– Political forces

– Competition

These forces would be examined in the context of their relations to the marketing of bank services in Nigeria as commercial banks are influenced by them in the cou8rse of their day to day marketing efforts.



The market is not made of people alone but they must have money and be willing to spend it. Total purchasing power is a function of current income, price, savings and credit availability.

Marketing of commercial bank services should always be aware of the following trends would enable the marketers to design a good marketing mix to meet the need of the customers, but where it is not given due consideration, for instance, a bank might be busy creating new branches where the accounts in the existing ones are dwelling to the extent that such branches may no longer break- even.



Culture is said to be symbols, and artifacts created by man, handed down from generations to generation which serves as determinant of human behavior in a society.

Once a particular group have a set of values, it is always very difficult to change even after acute culture shock.

Marketers of commercial bank services should take cognizance of this factor in carrying not their business for example, it is always a belief among the rural dwellers that when a person dies leaving a bank account, it is impossible for the next of kin to withdraw such money this is a belief the marketers of bank services should make efforts to disprove, otherwise they would be doing a fruitless job by providing bank services in such areas.



Technology has impact on our life-style, consumption and the economy; it could be the most dramatic force shaping an organization and its destiny.

Some of the new banks in the country today take advantage of the experiences of the older banks while adopting the developing technology. In fact the bankers journal (1986) emphasized that the computerization of banking operatives for more speedier production of accurate information was apparently gathering momentum in the banking industry in Nigeria. Besides, a stage would be reached when no bank without modern computer would thrive.



Demography is the statistical study of human population and its characteristics. It is very importance to marketers because people are what constitute the market. The rate of increase of the Nigerian population has great importance to marketers of banking services, equally they need to follow the trend on demography as it would help in determining where they are to site their branches so as to cover their expenses and make profit through the satisfaction of their customers.



Development in the political environment is increasingly affecting decisions on the marketing of commercial banking services. Political system is a broad term covering rules and institution by which a nation is governed. It consists of interacting set of laws, government agencies and pressure groups that influence the conduct of various organizations and individual in the society.



In any industry, there is always competition between the firms that make up the industry. This competition arises out of sheer need to have largest share of the market by each of the competitors.

In banking industry, the situation is virtually not different. Banking is essentially a service industry competing with other services within the economic system. There is a sharp competition among firms that make up the banking industry S.O Banjo(1985) business concord. These are

– Threats of new entrants

– Bargaining power of suppliers

– Bargaining power of buyers

– Threats of substitute services or product

– Rivalry among existing firms

Relating these five forces to the Nigerian banking services one would observe that the establishment of new banks in recent years have increased competition within the industry.

There exist competition among the big banks (big in terms of assets and capital base), between them and the smaller ones and among the smaller banks themselves.

However, operators in the banking industry should note that the way to their success is to monitor continually the ever changing competitive environment because gone are the days when small urban and rural savers can only be attracted through mobile banking and seasonal saving scheme.

Marketers of banking services should realize that arm-chair banking has given way to aggressive banking whose marketing concept as a nucleus that sustain the production and sale of their services must fully be accepted so as to achieve organizational goals.



A bank that wishes to service must not only do things right, but find the right things to do. Implicit in this is that bank minimizes opportunity which leads to profit and allocate its resources on exploiting opportunities. To be able to achieve these, there is need for a corporate marketing philosophy which contributes to the general corporate objective. The corporate marketing philosophy could revolve around the following:

1. The customer must be recognized as prime to the service of the bank and hence bank customers must be made to feel satisfied with the services. Further, bank services should be developed around customer’s preferences.

2. The marketing philosophy of the banks should be defined in terms of the banks social responsibilities to its staff as well as the immediate environment. The bank cannot disassociate itself from the economic life of the community it is serving. The banks primary social responsibility t the community being served should be seen in terms of how it mobilizes savings, safety of community’s liquid resources, and making available essential credit needs to the community and

3. There must be integration of efforts of various departments. Each department must contribute no matter how insignificant, to the corporate marketing philosophy.



Marketing mix or the 4p’s is traditionally defined as the blending of product, price, place or distribution and promotion in achieving marketing objectives.


This is the tangible and intangible aspects of banks services acceptable to the bank customers as wants satisfying. A starting point in product development is the identification of demand for bank services, then plan and develop the product or services and launch the service, for example, lending for traveling prone customers, granti8ng education loan, lending for chattels mobilizing savings for special occasions(wedding, burial, religious festivity or even holidays,)

A bank in producing a new deposit account when the market is saturated with company shares may fail.

However, it was found out during the course of my research work that new bank product tend to fail because of the following reasons:

ii. Inadequate market analysis and the over reliance of researchers on their personal induction to the exclusion of the actual needs of the bank users.

iii. Some banks plan their products on their needs instead of the customers.

iv. Poor communication between the banks and customers.

v. Other limitation to product development include the bank location, its size, managerial capabilities, liquidity base and the inability of the bank to realize the innovation potentials of the staff.



This is an exercise in information (that is about available bank services, persuasion (that is, it is beneficial for customers to serve or borrow) and influence (that is assuring bank customers of the positive influence of their borrowing or saving division on their well being) promotion entails personal selling and advertising.


a. Personal Selling

It is the process of assisting client to buy a bank service or to act favourably on an idea that has commercial significance. However, personal selling in bank service is appropriate.

i. When the bank is relatively new and there is need to win more customers through introduction of service that never existed in the market.

ii. When the personality of sales person is likely to persuade and influence the client in its saving decision and

iii. As an alternative to promotion through television and newspapers, particularly when there is insufficient funds to carry out such promotional activities.


b. Advertising

This is a direct effort to create and increase sales Onoucha K.(2002) defined it as my paid form of non-penal presentation and promotion of ideas, goods and services by an identified sponsor.


Advertising in banks are two types:

i. Service Advertising

Service advertising in the banks is simply informing the public about the existence of a service and attempting to stimulate the customers demands for the service over a long period.

The nature of service advertising is indirect because it is either at the populace at large at the initial stage of the service (primary demand advertising), or when the market is segmented based on certain criteria (selective demand advertising).

Advertising in this respect by Nigerian banks are quite stimulating and have informational contents, for example, UNION BANK OF NIGERIA says it ‘Big, Strong, Reliable”, Equity Bank of Nigeria Plc says “Strength in Service”.


ii. institutional advertising

This is primarily intended to attract clients through a charge attitude of clients to the services of the banks and also build a better image and goodwill for the bank.

Banking environment.

ii. Patronage- to attract customers

iii. Public relation- to create a good image of the bank among employees.

iv. Public service – this is when banks partake in activities outside the scope of banking for example, financing sporting activities and educational programmes.



In a typical manufacturing company, the price of the product offered for sale depend on the cost of production, the margin between supply and demand, comparative price or price based on break-down analysis. This may not be applicable to pricing of banking services.

In practice, service charges are determined by the central bank of Nigeria in the credit guidelines and the banks tariff. In fact, section, 14(1) OF CBN Act 1958 rest in the central bank of Nigeria determination of the minimum discount rate. This rate if linked to the rate of interest charged on advances or paid on deposits by any limited bank. Thus, there is a uniform pricing systems no bank services in Nigeria. For example, the 1999 monetary and credit policy guidelines as contained in the CBN Billion Volume 24 No 1 set the following guidelines for interest rate policy in 1999.

i. Minimum saving/deposit rates = 4-12.5%

ii. Maximum lending rate of 18-20% inclusive of all administrative and other charges.



Place or distribution are two terms that are often taken for each other in marketing literature. While place refers to creation of a business to the market served, distribution channel is the sequence of intermediates involved in moving a product from the producers to the ultimate consumers. Any method of increasing the availability of bank service or convince bank users aimed at repeated patronage is a distribution for the bankers service. The basic objectives of designing an effective channel for distributing banks services is to maximize profit and minimize cost.

There marketing strategy must follow up these divisions (marketing mix) to succeed and yield fruits in the organization on according to Gregory Ekwunife (1994) in business times.



The Nigerian commercial banking system is failure towards that of the United Kingdom, that is branch banking system, unlike what is obtained in the United States where all banks except a few ones operate unit banking system.

However, the services listed below include the of the Union bank, equity bank and other commercial banks, since their service mix are almost the same with a few exceptions.

They are:

– Conducting of current, savings and time deposit account.

– Grant loan

– Granting of overdraft

– Clearing of cheques

– Issue of bank chaques

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– Countermand of payment

– Prestige account for children

– Mobile bank account

– Equity consumer leasing option

– Honouring of chaques

– Loan syndication

– Domiciliation of accounts

– Operate of credit cards facilities

The bankers’ tariff has stipulated charges or interest payable on these services and the tariff is within the central bank of Nigeria (CBN) credit and money policy guidelines. The bankers’ tariff is a list containing approved bank charges and commissions.



Immediately a society moves away from barter all economic transaction will involve both a real flow and a financial flow unless the transaction is purely of financial nature, like selling securities, where no real flow is involved. Therefore, importance of finance lies in the fact it fuels or facilitates transaction in real sector.

However, J.U. Osubor (2003) in his book “finance” defines the financial system as “a conglomeration of financial institution, instrument and operates that help in fostering economic growth and development of the nation” the instrument that are used to transfer funds from the known as financial instruments involved are called financially institutions.

The financial system consists of many institutions and the active one could be differentiated based on the following parameters.



Some financial institutions are banking institutions in the sense that they are duly licensed as banks under the banking Acts or are specialized banking institutions established by status. Commercial and merchant bank for example, are banking financial institutions deriving their banking right from the licensed granted then after satisfying the conditions laid down in the banking Act while the Federal mortgage financial institutions by deriving their existence from the specific status creating them.

The non-banking financial institutions are other institutions that facilitate the mobilization of funds but are not banks. Notable ones are insurance companies, pension fund, credit societies etc.



The financial market is usually divided into two broad frameworks based on the maturity period of the deals with sale and acquisition of short term financial assets and liabilities and the name “money market” arises from the liquidity of the instrument of the money market include certificate deposit, treasury bills, and other short term bonds.

The capital that facilitates the transfer of medium and long-term fund from the surplus sector to the deficit sector. The main distinction here is the long and medium term nature of the capital market.

However, some non-commercial banks in the country today perform some functions of commercial banks thereby increasing competition in the industry. Hence, the need to have an effective marketing department in the commercial banks.



In a study of this nature, it is advisable to adopt many techniques to collect enough data useful to the research work. However, the techniques employed in this particular study are:



The principal methods of data collection in Nigeria are through questionnaires, interviews and observations. Data are also collected from documents. Ezejelu and Ogwo (1990)

A research in any field is faced with two types of data. Namely, primary and secondary both, depending on the decision he wants to take. Secondary data refers to information assembled for some other purpose.

Primary on the other hand refers to information assembled specifically for the problems under consideration (Anyanwu, 1994).



Data analysis refers to that technique whereby the investigator from the data information that was not apparently enables a summary description of the subject studied to be made. Anyanwu (1994) stated that “data analysis deals with the conversion of raw data into useable information. A good researcher must anticipate in precise form what he intends to do with the data collected imprecise form what he intends means to “break apart or the examine the part critical”. From the above, it can be seen that data analysis refers to looking into the data collected with a view of interpreting them.

The tool of data analysis is the percentage distribution.

The calculation of simple percentage is derived thus:

Let x = true outcome

N = total number of possible outcomes.

Percentage of true outcome to total possible outcome is X x 100

N 1

The hypothesis formulated are tested by means of the chiSquare (X2 ) chi-Square (X2 ) test apply only to discrete data, counted rather than measured values. In their own contribution, its application is where the values are not continuous but are expressed in at least two categorize of yes and no, provided it is relatively easy to apply.Ezelueand Ogwo (1990).

Furthermore, Chi-Square test, which is aimed at measuring the extent of agreement between the observed and expected frequencies has the following formulars:

X2 = (oi – ei)2


Where X2= Chi-Square test (Test statistics)

E = Summations

Oi = observed frequencies

Ei = expected frequencies

The degree of freedom will be determined by the number of rows and columns in the contingency table to be used then formulate for determining the degree of freedom is thus:

Df = (n-1) (k-1)

N = number of rows

K = number of columns

The hypothesis will be tested at the 5% level of significance.

In order to accept or reject (X2), it is necessary to check the values of X2 from the test with the tabulated values from the X2 table.

The decision rule is that if the calculated value is greater than the tabulated value we reject the null hypothesis (Ho) and accept alternative hypothesis Ha). On the other hand, if the calculated value is less than the tabulated value we accept the null hypothesis and reject alternative hypothesis.

The value obtained from the test here recorded. Based on these conclusion were drawn and recommendations were also made.

• Questionnaires

• Observation

• Oral interview

• Desk research





Questionnaires is a formalized schedule for collecting data from respondents and can be used to measure past behavoiur, attitudes and respondents characteristics. I helped me immensely in gathering the relevant data which are necessary for this study.

A series of questions dealing with matters relevant to the marketing of bank services were asked in two different sets, one directed to the bank staff and the other to the customers of the banks.

Equally, a total of twenty (20) questionnaires were administrated, ten (10) to the banks staff, while the other (10) went to customers. The table below will throw more light on the distribution and collection of questionnaires.


Distribution and Collection of Questionnaires


Banks staff 10 10

Bank customer 10- 10

Total 20 20


The collection of the questionnaires was by personal contact which I considered more appropriate compared to mailing in view of the delay in submitting this project.



The visit to Union Bank of Nigeria Plc. And Equity Bank Plc placed me in a position to observe how the banks attend to their customer and the services rendered by the bank.

Observation become obvious to agree or disagree with some of the answers from the oral interview.

Equally, the site of the bank was seen one. One important feature to note about the bank is that they are site in such place that leaves little parking space for customer and consequently the cars of the customers cause obstruction to other road users.



During the course of the research work, I visited Union Bank Plc. (Owerri Branch Office) and Equity Bank Plc. To interview the customer and staff of the bank. The essence of the oral interview is to enable me have face-to-face interaction with the respondents. However, the oral interview with some of them were met with staff rebull as some of them were not willing to make useful statement to me. They regarded some of the questions as probing.



Desk research (also known as secondary research) involves the location and examination of available (usually published) data of relevance to the research work.

Desk research materials relevant to this study provided me with a great deal of general information on the marketing of bank services which would not be obtained by using other technology to this effect, newspapers publicity, journals, textbooks and other financial material were consulted.



In analyzing the data collected, I intend to make use of the (%) percentage distribution table to summarize response from the field, and the chi-square tool will be used to test the statistical significance of the distribution of responses obtained from the field.



In this study, 20 questionnaires were administered to both staff and customer of the bank under study. The 20 questionnaire were returned.

However, in analyzing the data collected, the methods of percentage distribution (as stated earlier) was used to analyze some of the responses to the questions contained in the questionnaire to both staff and customers of the bank.


Question 1 Do you have bank accounts?

Table 4.0.

Options Numberof respondents Percentage

Yes 10 100

No 0 0

Total 10 100

The above table reveals that all the respondents have bank accounts.


Question 8. If yes, what types of account do you operate?

Options Number of respondents Percentage

Current 4 40

Deposit 0 0

Savings 6 60

Total 10 100

The above table reveals, that four respondents operate current and six operate savings accounts.


Question 3. Do you have a marketing department in your bank?

Options Number of respondents Percentage

Yes 8 80

No 2 20

Total 10 100

The respondents from the above table revealed that 80% of the respondents who are bankers agree that there is a marketing department in their bank while 20% maintain that it does not exist in the bank.


Question 4: What types of advertising media does you bank use?

Options Number of respondents Percentage

Television only 0 0

Radio only 0 0

Newspaper only 0 0

Outdoor only 0 0

Combination of all 10 100

Total 10 100

From the table, it would be seen that 100% of the respondents agreed that the bank use the combination of all advertising media listed in marketing here product and services.


Question 5: What problems do you encounter in marketing your services?


This question elicited the following answerer from the respondents:

1. Illiteracy on the part of the public

2. unawareness of banking habit;

3. rigid government policies

4. aloofness of some staff to customer needs

5. Disserting of the technicality of terms to public.

Therefore, they could be said to be the major problems encountered by the bank in marketing its services.


Question 6: Does you bank carryout marketing research?

Options Number of respondents Percentage

Yes 8 80

No 2 20

Total 10 100

This shows that 80% of the respondents agree that the bank carryout marketing research while the remaining 20% were silent on the questions.


Question 7: Bankers’ relationship with their customer is always very cordial?


Options Number of respondents Percentage

Strongly agreed 10 100

Agreed 0 0

Neutral 0 0

Disagreed 0 0

Total 10 100

As seen above, the 10 r 100% of the respondents answered strongly agreed which means that the relationship of the banks staff with their customers is very cordial.


Question 8: Are the charges on the service provided by the bank fair?

Options Number of respondents Percentage

Yes 9 90

No 0 0

Don’t know 1 10

Total 10 100

Looking at the above, it could be seen that out of the10 respondents, 9 or 90 believes that charges are fair while 1 (10%) don’t know whether charges are flair or not.


Question 9: Are the statement of account sent regularly?

Options Number of respondents Percentage

Yes 10 100

No 0 0

Total 10 100


The responses is that statement of account of the bank are sent regularly to the customer and equally sometimes quarterly.


Question 10: List some of the latest innovation(s) which your bank has developed to meet the increasing needs of its customer.


Eighty of the respondent answered that the serve has computerized its operated to improve customers service and efficiency.

Equally, the respondents listed among other are followings: –

1. Unicard /ATM card

2. rural banking scheme;

3. express counter service

4. prompt service

5. speed money transfer.



Question 11: What is your pricing policy?

Options Number of respondents Percentage

Single pricing policy 0 0

Variable pricing policy 0 0

Based on bankers tariff 10 100

Total 10 10


The responses from the bankers to the above question show that the pricing policy of the bank (and other commercial banks) are base on bankers tariff. The bankers tariff has been defined in chapter two.


Question 12: Are marketing courses in your training programme?

Option Number of respondents Percentage

Yes 8 80

No 2 20

Total 10 100


To this question, 80% of the respondents of he bank are of the option that marketing courses are offered in the training programmes, while the remaining 20% answered otherwise.

However, with situation, it could be said that marketing courses are offered I the training programme of the banks.



Question 4. Do you have an account with any bank?


Options Number of respondents Percentage

Yes 10 100

No 0 0

Total 10 100

The respondents have accounts with the bank


The respondents have accounts with the bank.


Question 5: If yes what types of account do you operate?

Option Number of respondents Percentage

Currency 4 40

Savings 6 60

Deposits 0 0

Total 10 100


This indicate that s40% operate current account 60% operate savings accounts and non operate deposit account.


Question 8: As a customer, what type of relationship do you have with the bank?

Options Number of respondents Percentage

Very good 3 30

Good 5 50

Satisfactory 2 20

Fair 0 0

Poor 0 0

Total 10 100


In the above table, it could be reserved that 30 of the respondents are of the opinion that the customer relationship is very good, 50% believe that it is good, 20% see it to be satisfactory.

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Question 10: Are you conformable with the banks working hours?

Option Number of respondents Percentage

Yes 8 80

No 2 20

Total 10 100


The response shows that 80% believe that the banks working hours are alright while the remaining 20 think otherwise.


Question 11: Your bank statement and report, how promptly do they come to you?

Options Number of respondents Percentage

Monthly 0 0

Quarterly 0 0

Annually 0 0

Per-request 10 100

Total 10 10 0



Question 13: Is the banking environment conducive for you?

Option Number of respondents Percentage

Yes 10 100

No 0 0

Total 10 100

The responses shows that the environment is conducive but setting spaces are not enough considering the large number of customer that visit the bank daily.




In testing the hypothesis, chi-square (x2) was used at 5% level of significance. In other words, the test that any test which fall within the area covered by 95% will be accepted while those which fall in the initial region (5%) will be rejected.

Chi-square is a method of testing a particular hypothesis and it is given by the formular.

X2 = (oi-ei)2

Ei = atv.

Where oi = observed frequency

Ei = expected frequency

V = degree of freedom

To get v = (r-1) c-1)

Where r, = number of rows

C = number of columns

HO = null hypothesis

Ha = alternative hypothesis



Accept Ho if x2c < x20.05 = (v) if x2 calculated is equal to x2 tabulated.

Reject other wise x2c > x2 (v)


Testing Hypothesis

Question 12 of the questionnaires administered on the bank staff was used to test the hypothesis. Based on the response of this question, it was found out that 80% of the research while the remaining 20% answered otherwise.




Table of observed frequencies

Options Number of respondent Total

Union bank Equity bank

Yes 3 8 8

No 2 0 2

Total 5 8 10

Table of the expected frequencies.


Options Number of respondents Percentage

Union Bank Equity Bank

Yes 4 4 8

No 1 1 2

Total 5 5 10

Ho: commercial bank do not carryout marketing research,

Ha: commercial bank carryout marketing research.

V = (2-1) = df

Ell = 5+8 = 40 = 4

10 10

E12 = 8 x 5 = 4


E21 = 2×5 = 10


E22 = 2×5

10 = 1

x2c = (3-4)2 + (5-4)2 + (2-1)2 + (0-1)2

4 4 4 4


0.25 + 0.25 + 1+1 = 2.5.

This is compared wit x2 null df at o.5 level of significance x20.05, 0=3.841. based on this however, the null hypothesis is rejected since the value of significance (3.84). This means that commercial banks carryout marketing research.



In testing the second hypothesis, question 13 and 8 of the questionnaire administered to staff and customer of the bank respectively were used for this purpose.


Hypothesis 11

Options Number of respondents percentage

Response Bank staff Bank customer Total

Yes 10 8 18

No 0 2 2

Total 10 10 20

Source: field data


Table 14, 176 expected frequencies

Options Number of respondents Percentage

Response Bank staff Customer Total

Yes 9 9 18

No 1 1 2

Total 10 10 20

Source: field data

Ho; there is no good customer relationship between the commercial bank and the customers;

Ho; there is good relationship between the commercial bank and the customers;

F 11 = 10×5

20 = 9

F12 = 18×10

10 = 9

F21 = 10X2

20 = 1

X2C = (10-)2 +(9-9)2 +(1-0)2 +(2-1)2

9 9 9 9

= 0.1111 + 0.1111 + 1+1 = 2.2222


X2 5%, 1 = 3.841

We should reject the HO since the calculated x2 of 2.222 is less than 3.841. this means that there is good customer relationship between the commercial banks and the customers.



In testing the third hypothesis, question 9 and 5 administered to banks customers and staff respectively were used. However, it was observed that out of the 20 respondents, 16 representing 80% answered yes while the remaining representing 20% answered otherwise.


Hypothesis three

Table 4.18a

Observed frequencies

Option Number of respondent Percentage

Response Bank staff Bank customer Total

Yes 9 7 16

No 1 3 4

Total 10 10 20


Source: computed from field data

Ho: marketing management has not been integrated in the operations of the commercial bank;

Ha: marketing management has been integrated in the operations of the commercial bank;

X2c = (9-8)2 +(7-8)2 +(1-2)2 + (3-2)2

8 8 8 8

= 0.128 + 0.128 += 1.225

x2c = %, 1 = 3.841.

we should reject the Ho since the calculated x2 of 1.255 is less than 3.841. this then means that marketing management has been integral in the operation of commercial bank.



Using the result of hypothesis, one which has Ha is propose that commercial bank do not carry out marketing research and are ha that commercial carryout the market research and the result in which Ho has x2 calculated of 1.255 less than x2 tabulated of 3.841.

This means that the marketing management has been integrated in the operation of commercial banks. Therefore, the banks should have their customer as their main focus and be able to reach the unbanked.

It is clear that banks cannot be in the office and know what the customer needs, therefore, the banks must have to identify the needs of the customer, and prepare to meet such needs. This is a jet age and banks must try to develops high quality products, and try to find out the prices at which the customers are willing to buy without them running at a loss.

Example of such products may be home services of coming to pick individually, money from their different houses.

The bank should be able to concern itself within the social activities of the community which it is cited and their customer as to attract the unbanked when the bank identify with the people, there is every likelihood that the people will in return patronize the banks.


Having tested the hypothesis and analyzed the various data gathered, the researcher came up with the following findings:

• Union bank and equity bank carryout marketing research.

• Marketing management has been integrated in the operation of the bank.

• There is good customer relationship between the bank and the customer.

• The bank is constantly anticipating customers needs and seeking to device profitable new service to meet them,.

• The staff are always ready to answerer questions and listen to the complaint of the customer.

• Majority of the bank customer patronize the bank because it has been in existence for long.

• Marketing courses are offered in the banks training programme.

• The pricing policy of the bank is based on the bankers tariffs.

• Security, large concentration of existing and potential customer and easy accessibility are the major factors that determines the bank choice of branch offices.

• The bank is customer oriented.

• Marketing of money market instrument, reveal banking scheme, unicorm, express cashier and computerization of its operations are some of the latest innovation which the banks have developed to meet the needs of its customers.

• The bank uses the combination of radio, televisions, out door and newspaper and their advertising media.

• The state of the economy has a significance effect on the volume of commercial bank business.



Marketing is more of art than science, successful decision making in marketing depends on the skill and judgment of the individuals involved,.

In physical science, objectivity of investigation, accuracy of measuring device and the exhaustiveness of the study are attainable. While in marketing as a social science, an investigators, subjecting human element and non-exhaustive study of the phenomenon under valid result to be attained.

However, in this research work, some problem were encountered during the data collection period. Most of the request for information in most of the issues were turned douch. Some staff of the bank approached refused to give any assistance and even individuals mapped out for interview because of their position were co-operative.

Another problem is that of fund, lack of finance did no afford the opportunity for extensive study as the researcher would have done.

Finally, the union Bank of Nigeria plc and Equity Bank plc are not enough to study the whole state of all the commercial bank in the industry.

Therefore, using only two banks result to generalize on the remaining commercial banks maybe statistically wrong.




A bank which produces and renders good services efficiently will embrace the patronage of the public and would have created a good image for itself.

On the contrary, eve when a bank produces good services but reders them poorly it will have anything that will appeal to customers.

Union Bank and Equity bank must re-define their markets or operations and be customer oriented. There is the need for more personalized, services and improved banker customer relationship.

However, to be able to cope with the increasing demand of the bank customer and infact the general public, the bank should re-assess their products and see whether they hall meet tastes of the time. They should as a matter of necessity innovate and improve on the on the services rendered and the method f operations.

Being custodians of publics wealth, the commercial banks, in general should be able to advice, help and give guidance when it affected the wealth of the society. They should be equally identify the needs of the society and direct efforts towards providing the needs on advising on how the needs can be provided for.

Finally, given the prevailing economic and political situation in the country, the banks must structure their strategies and market mix in achieving optional reputation and position within the industry.



The commercial bank particularly, Union Bank and Equity Bank perception of marketing should shift rapidly from advertising and focus more n market research and product development especially towards attracting the unbanked.

The bank should employ the services of intelligent agents who would serve the character and family backgrounds of would be bank staff in order to minimize staff involvement in bank fraud.

Also, the management of the bank should leave no stone unturned to ensure that the legitimate needs and aspiration of their staff are met to the best of their ability.

It is only when the staff are themselves contented that they can be relied upon to attain a high level of efficiency and behavoiur.

Occasionally, trade fair and exhibitions of various standards could be organized all over the country. Bearing in mind that this attracts people of various walk of life. It is advisable that Union Bank and equity bank act as sponsors to some of these inhibitions, through this, the bank can have its staffs where one could talk to people about its services.

Another means of reaching customers could be by counter display that is a process whereby leaflets explaining each services is printed and displayed on the bank counters, customers, should be free to pick –up the leaflets for their pervsal.

Moreso, complainants management should be of important to union Bank and Equity Bank because it offers opportunity to understand the customers problems, provided constructive ideas for improved service, enhance its reputation, buids clients confidence and loyalty and can attract customers.

Effective complaints management can be a cheap sources of marketing information, reduce unnecessary cost, reveal services defects, heightens business sensitivity to the needs of the banks customer and lead to improvised personnel performance.

The bank should be able to identify customers needs through constant sampling of customers, opinions as to the quality of services and how they should be improved upon.

This to some extent has not been carried out by most of all the commercial banks, due to the fact that they (the banks) are in the sellers market.

It is important for the bank to actively facilitate the transformation of rural environment by promoting rapid expansion of banking facilities and service and banking habits in the rural areas.

The bank will serve as the vehicles for the creation of credit in the rural communities.

This credit will take the form of equity in loans for small farmers and enterprises.

Finally, the commercial bank should map out strategies, full automation of their branches throughout the country. This will entail stepping up staff education and training, developing better, accounting system and planning to improve banking premises to suit the new technology in baking system and practices.



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 Bank Services – Marketing In Nigeria

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