CHAPTER TWO
2.1 LITERATURE REVIEW
Every marketing element in the marketing mix communicate something to consumer. Therefore one of the function of marketing management is to ensure that the consumer does not receive contradictory or confusing message from the element of the marketing mix. The marketing communication or promotion mix comprises of complex techniques that may use by management to communicate with consumer and to promote, inform, persuade and remind about the firm product or service (financial services) to the consumers.
This part of the study wish delve into the concept and content of the study i.e. the concept of promotion and promotional mix, the role of promotion and promotional mix, the role of promotion in the banking sector, the promotional mix and the financial service products, the determinant of choice of promotional mix etc.
2.2 REVIEW OF THE GENERAL TEST ON CONCEPT OF PROMOTION
Modern marketing is more than developing a good product, pricing it attractively and making it ready available to targeted customers. In addition to all these things, management must ensure that its product, employees and actives are promoted to the market. Through an effective marketing communication effort and strategy to communicate something to the consumer. What is communicated must be well planned and not left to chance.
According to foxall (1998), marketing communication is that complex technique under the control of management which may be used to communicate directly with buyers and potential buyers this information is not just ordinary information but a persuasive communication.
Marketing communication therefore is an extension of interpersonal communication. It is the process through which marketers may or are able to send out information or meaningful message form their and to garget customers. The customers can be individual a group or an organization such as enterprises, government agency and so on. The marketers may be producers of goods and services such as the provider of financial services products, a marketing intermediary or a non-profit organization.
Promotion can be described as any form of communication, which is meant or intended to inform, educate, persuade and remind with the ultimate objective of bringing about and facilitating the transaction. It can be as well being described as the means by which we make known what we have to sell or what we want to buy.
Commercial companies, trade association, government bodies, educational institution, political parties and so on undertake promotional activities. It is an important of of study of the marketer because of the large financials investment (expenditure) made in promotional activity. The advertising industry is a large and important sector in any western economy.
We must note that all promotional activities are form of marketing communication.
2.2.1 PROMOTIONAL MIX IN THE BANKING SECTOR
As the promotion for financial services product differs from physical goods or tangible product so all so does the promotional mix variable for the financial services differs from that of physical product in term of total marketing program. The choice of media mix to promote financial services product must be ones that have staying power i.e. such message that will be imprinted in the memory or psycle of the prospective customers.
The set of promotional mix variable that can simply be employed or combined in the marketing of financial services product are:
i. Advertising
ii. Sales promotion
iii. Pubic relations
iv. Word of mouth
v. Direct mail
vi. Permission marketing
vii. Customer services
ADVERTISING: according to Amerke marketing Association (AMA): “advertising is defined as any paid form of non personal presentation and promotion of idea goods and services by an identified sponsor†the advertising mix variable or promotion is common to both tangible and financial services product but that of financial services product is more strategically used and amended to concretize the product from abstract nature to concrete nature.
SALES PROMOTION: this is said to be the act of giving out some short-terms in incentives in order to call for customer attention towards the presented offering.
PUBLIC RELATION: this involves and organization effort to influence peoples opinion or impression toward the organization. The financial adopt this strategy to build good imade and create good will for the companies’ image and service. The image of the company is as important as selling a product.
WORD OF MOUTH: like personal selling for tangible product is a district strategy use to promote financial service by engaging in a face to face communication with the customers to present the product, persuade and explain the use and benefit of the products (services) to the customer.
DIRECT MAIL: this involves an online marketing in which the financial services provided communicate with the prospective customer through main on the net on other fast means.
CUSTOMER SERVICE: this is one of the current strategies adopted by banks as a means of promotion that innovates all effort and activities perform in other to ensure customers satisfaction this helps to have better idea and knowledge of the customer as to how best to ensure satisfaction.
