EFFECT OF MARKETING COMMUNICATION ON THE MARKETING OF FINANCIAL INSTITUTIONS SERVICE IN NIGERIA
1.1 Background to the Study
Marketing facilitates an exchange process and the development of relationship by carefully examining the needs and want of consumers, developing a product or service that satisfies the needs, offering it at a certain price, making it available through diverse channels or channel of distribution and developing a programme of promoting it to create awareness and interest.
Every organisation expects to achieve financial growth, both in the short and long runs, in the face of market competition. According to Kotler & Armstrong (2010), marketing is essential because a sustainable financial performance is not possible without a firm’s adoption of suitable marketing practices. Meanwhile, a sustainable financial performance is the primary target of the management of every business. Meanwhile, a business’s service quality, custo mer satisfaction and customer loyalty is dependent on its marketing communication practice (Frimpong, 2014; Manisha, 2012; Rawal, 2013).
Marketing communication is generally considered an efficient business model for achieving desired financial growth through service quality, customer satisfaction and loyalty. This is because it serves as a major tool for serving and relating to customers, who are practically the most valued asset of the business. Assuming a business’s customers cannot be communicated with there is no possible means of generating sales. In view of this, Frimpong (2014: 38) argues that marketing communication plays a vital role in financial performance. Besides, other empirical, theoretical and practical evidences support this argument.
Based on a study conducted in a Ghanaian context, Frimpong (2014) posits that each item of the marketing communication mix is relevant to service quality achievement in a financial firm. Wellman & Molander (2008) also provide related empirical evidence in a developing country context, with support from Rawal (2013). At the level of theory, Schultz et al. (2007) and Porcu et al. (2012) conceptualise a model that points to the significant effect of each aspect of marketing communication mix on service quality, customer satisfaction and customer loyalty. In most of the empirical studies (e.g. Frimpong, 2014; Wellman & Molander, 2008; Rawal, 2013), advertising is identified as one of the most dominant elements of the marketing communication mix in terms of effect on service quality, customer satisfaction and customer loyalty. Yet, it is admitted by Schultz et al. (2007) that empirical studies focused on the effect of marketing communication mix on business performance in terms of service quality, customer satisfaction or customer loyalty are few.
A personal survey of related academic literature shows that researches on marketing communication mix and its effect on businesses have been conducted at the qualitative level, with most being merely literature reviews. Schultz et al. (2007) and Porcu et al. (2012) particularly focused on the development of models and theoretical frameworks that argue the effect of marketing communication mix on service quality and customer satisfaction and loyalty. Schultz et al. (2007) is of the view that their theoretical frameworks and conceptual models need to be tested in the context of empirical research. Currently, there is a huge gap in the literature of the subject because few empirical studies are identifiable on it.
HISTORICAL OVERVIEW OF FIDELITY FINANCE COMPANY LIMITED
Fidelity Finance Company Limited (FFCL) was incorporated on 2nd October, 1987 as a private liability company with the main objective of carrying out stockbroking and allied financial services. The initial authorized paid up capital of ₦50 million was increased to 3.5 billion few years after due to rapid expansion in our scope of business which include handling huge transactions such as public offerings, This was before the introduction of a new capital base for various categories of players in the capital market by Securities & Exchange Commission. As an Is’suing House and Broker/Dealer, we now have a total asset base of over ₦4 billion.
The company is a member of the Nigeria Stock Exchange (NSE) and is duly registered with the Securities & Exchange Commission (SEC) as a Broker/Dealer and Issuing House. Fidelity Finance Company Limited is one of the stockbroking firms selected to deal in Nigerian Treasury Bills by the Central Bank of Nigeria (CBN).
It is the belief of many writers that until the consumer derives final utility, there are really no products there are only raw materials. This is because the marketing view looks at business as directed towards the satisfaction of consumer wants (Jakada, 2006). Marketing is a major important activity within organizations because profits and survival of these organizations are inevitably tied to the satisfaction of consumer wants and needs. Marketing has become a major consideration in the present day service industry as a result of dynamism and competitiveness of the economy. Competition in this sector of the economy grows more intense and steadily more professional especially in the banking and other financial institutions. The age of specialization in the banking industry has changed to one where most organisations offer a wide range of services in competition with each other (Abdulqadir, 2010). It has, therefore become essential to use all the resources and techniques that marketing offers to survive and succeed in the ever changing business environment in the world with reference to our country Nigeria (Bale &Akpan, 2009). Thus marketing communication comes into consideration as it is intended both to communicate with and to sell to customers
1.2 Statement of the Problem
The problems associated with marketing communication on the marketing of financial services in Nigeria are:
- Sourcing of deposits from clients
- Absence of efficient and effective marketing practice
iii. Competition among financial institutions
- Fraud and embezzlement of fund
- Jncreased cost of meeting clients needs and wants
1.3 Research Questions
The questions that arose from this project are:
- Do Fidelity finance company encounter problems in sourcing deposit from clients?
- Is there an absence of efficient and effective marketing practice in Fidelity finance company?
iii. Is there competition among financial institutions in the marketing of their services?
iv; Do fraud and embezzlement constitute a cog in the wheel marketing
1.4 Objective of the study
The main objective of this study is to analyze the effect of Marketing Communication On The Marketing Of Financial Institutions Service In Nigeria . A Study Of Fidelity Finance Company LTD Akwa Ibom, Uyo
1.5 Hypothesis of the study
Ho: Fidelity finance company do not encounter problems in sourcing fund from clients
Hi: Fidelity finance company encounter problems in sourcing fund from clients.
1.6 SIGNIFICANCE OF THE STUDY
The importance of this study cannot be over-emphasized due to the need for marketing of services in the financial sector. If a product is manufactured or service put in place without the effective marketing communication of such product or service, it is doomed to fail.
The significance of this research therefore lies in the fact that we should create an enabling environment for our services to thrive. In other words, research on possible avenues to increase marketing of financial services will be good
This study will thus act a reference material/tools to future researchers embarking on similar topics.
1.7 SCOPE /LIMITATION OF THE STUDY
The scope of this study is on Effect of Marketing Communication On The Marketing Of Financial Institutions Service In Nigeria . It was restricted to Fidelity Finance Company Limited in Akwa Ibom, Uyo
1.8 D’EFINITION OF TERMS AND CONCEPT
Marketing: There are those activities of individuals or organizations, whether profit or non-profit, that enables, facilitate and encourage exchange to the satisfaction of all the parties involved. The marketing objective of every organization is the satisfaction of consumers.
Services: It is what is rendered to customers in the bank and it is paid for. Service is intangible; inseparable from the performer of services, to maintain quality and it cannot be stored. Anything done in the bank for the interest of the customers is a service.
Clients: He is the person using the services of a professional person, customers. In other words, there are those that patronize the services of the bank by embarking on bank transactions both local and international.
Product: A product is anything that has value and can be exchanged for money to satisfy given needs and wants of the consumer. It could be tangible or intangible. The intangible products are called services e.g. banking services.
Strategy: It is a plan of action to be taken for accomplishing the stated objectives and goals sought by an organization. It reflects basic organizational objectives as well as courses of action to be followed in pursuing these objectives.