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Impact Of Promotional Activities On The Marketing Of Golden Morn Products
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CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The
deregulation of the Nigerian economy came into being in 1986. By that
time, the banking industry was one of the most vibrant and most sought
after by investor in Nigeria. According to Nwankwo (1991:2), the number
of commercial and merchant banks rose from 33 (thirty three) commercial
banks and 15 merchant banks in 1987 to 65 (sixty five) and 47 (forty
seven) respectively in 1991.
The bank industry entered this decade
with less caution but aware of global economic changes. According to
Clausen (1990:12) the industry entered the new decade well aware that
the world was about to change but in retrospect not fully realizing the
far- reaching extent of that change nor its velocity and impact. In the
ensuring six years the industry was unable to respond rapidly enough to
the wrenching dislocation brought by deregulation, fierce new
competition and unstable world economy. Crisis erupted within the first
quarter of this decade and the condition deteriorated in the following
area:
1. The industry was losing money, with not losses in billions since mid nineties.
2. Some of the banks suspended payment of dividends on their common stocks:
3. Some of the banks were facing hostile takeover attempts by the regulatory bodies (NDIC and CBN)
4. Regulatory bodies had directed several banks boards of Directors to redress the worsening capital base and
5. Questions were raised about some of the banks ability to survive independently.
Marketing
in the banking industry in Nigeria as we know today, owes much to the
survival strategies of some new generation commercial and merchant banks
after the banking distress of 1992 through 1996. This development
attends the tastes and demands of the society stimulated competition and
created selling opportunities and rewards. The banking habits now
spread throughout the social classes.
New services have been
introduced as the bank met competition, fill gaps in their services
range, or try to steal a march on the competition by endeavouring to
discover and satisfy the needs of new niche markets. Business customers
have also witnessed the wind of change as the banks gained a greater
appreciation in its highly profitable corporate markets. Thus, the banks
own marketing expertise has been pushed along by competition and a
desire to gain market share. It has also been pulled along it’s
customers demanding more flexible advantageously priced and
comprehensive facilities.
The needs of customers, and prospective
ones, cannot be ignored by any bank especially in larger markets like
Lagos and Aba environment. Relying merely on selling only those services
which are already available is, at best, a short-term expedient, as
market attitudes preference, technology and environmental factors are
constantly changing.
To survive profit must be earned by banks and
part of this process involves containment of cost when seeking the most
profitable markets to exploit. Therefore, banks resources must be
channeled towards the potentially more profitable “Banking marketsâ€
which in turn, necessitates making a choice among larger markets like
Lagos, Aba, Kano, Onitsha, Kaduna etc. It is the identification of the
right balance of resources that calls for the marketing skills of
research, planning and assessment.
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ABSRACT - [ Total Page(s): 1 ]Banks are established to make profits. Are these profits made at me expense of the customers or is it as a result of the seminar provided by these banks.This study attempts to highlight those key factors that different banks managements will consider in their choice of branch locations and customers preferences for their choice of banks to serve them. This will enable banks to focus on the critical factor that affect market preferences.The study was done using survey research design with questio ... Continue reading---
