Marketing

CORPORATE ADVERTISING AS AN EFFECTIVE PROMOTIONAL TOOL IN THE MARKETING OF BANKING SERVICES

CORPORATE ADVERTISING AS AN EFFECTIVE PROMOTIONAL TOOL IN THE MARKETING OF BANKING SERVICES (A CASE STUDY OF SELECTED COMMERCIAL BANK IN DELTA STATE)

ABSTRACT

This study on “Corporate Advertising as an effective promotional tool in the marketing of banking services, has tried to seek answers to the crucial question that plaques the memory of readers. Questions on how corporate advertising acts as an effective promotional tool in the marketing of banking services, its values and importance. Chapter one of the study deals with the general introduction of the study, it’s background and analyses, statement of the study, significance, the research question and most importantly the definition of terms. Chapter two of the study examines extensively different views such as literature review, observations and comments of economist on the effectiveness of co-operate advertising. The third chapter is about the method to be used in conducting the research study. The type of method of study to be used which is survey method, design, sample size and population. Chapter four is about data analysis and result. Chapter five summarizes it and deals with recommendation.

CHAPTER ONE

1.0  INTRODUCTION

BACKGROUND OF THE STUDY

Business is like a bicycle either you keep moving or you fall down.

Over the century, man have been able to achieve so many fears, one of those great fears is the ability to like the whole world together through invisible thread called communication, without communication we would merely be isolated groups without any coordination we have today. In prehistoric time communication was haphazard and primitive. With time however the need for a better organized and developed system of communication become more and more crucial.

In marketing, the need for communication cannot be over emphasized. When a firm has developed the perfect product or services, have priced it attractively and has made I accessible to the target customers yet they customers are unaware of all these, the success of such effort may be unwanted.

Marketing communication is used to achieve these aims and various tools are employed to achieve the firms communication objectives such tools are advertising, sales promotion, personal selling and publicity, it has been used by firms in the marketing communication, however advertising has often been employed, it reaches a much wider audience than any of other tools would normally reach. Ceyman (1969). Contends that advertising is concerned with conveying about a product or service and the company producing that product or services to the potential buyers.

Bank provide array of services for the customers. It is hence necessary, to communicate information about these     service, their benefit and new features a customer considering the financial   aspect of the banking services, bank also have to build up an image of respect ability and viability through co-operation advertising . When confidence reposed in banks the customers would be better disposed to have dealings with them. Hence a bank has to constantly inform its customers. (Present and potential) about its services and about itself in order to build an image.

STATEMENT OF THE PROBLEM

Banks are custodians of the customer trust. They don’t simply provide financial service’ they provide peace of mind of the customer with this on mind, the banks corporate advertising plans should ensure that the customer is well inform of its offers, solution to solve problem. A good number of banks are seeing the importance of advertising, but some still see it as an adhere affair not something that should be done all of the time based on the above, this study aim at examining the extent to which banks carry out advertising co-operative and the effectiveness of such campaign.

PURPOSE OF THE STUDY

This study is aim at finding out the extent to which certain have gone in exchanging corporate advertising as a part of the marketing strategy used the effect by some bank customer.

Making recommendation for effective corporate advertising in banks.

SIGNIFICANCE OF THE STUDY

The age-old banking tradition was to sit down and wait for customers. Such a step those days would be suicidal. A bank with state of the art facilities and service my still not make such heavy profit if it does not talk. And with problem arise step to correct the situation may be taken a little too late. It is hoped that through this study, insight can be gained as to how to effectively established, maintained and improve line of communication between the bank and its public. When its public understand a bank policies aspiration etc a more efficient banking system can be hoped for with room still for further improvement.

RESEARCH QUESTION

It is expected that research work should be able to provide answers to the following research question.

  1. Do bank advertise from head office?
  2. Are bank truthful in their corporate advertising?
  3. Does corporate advertising influence the customer’s choice of bank?
  4. Which of the promotional tools is the most effective for bank marketing?
  5. Does corporate advertising by banks’ increase their customer’s awareness?

HYPOTHESIS

In carrying out the study, the researcher will Work with the under listed hypothesis so formulated shall be the end of the study.

  1. The Customers awareness of bank activity is not increase with more corporate advertising.
  2. Customers awareness is not the most effective promotional tools in the marketing of bank service. Banks are not truthful in the corporate advertising?

SCOPE OF THE STUDY

Through literatures have not been written on the topic corporate advertising as all effective promotional tools in the marketing of banking services. There is banking business the foundation of which is trust means that a bank can not afford to pay lip services will tend to be sough. The only way to stay in business is to move profit and corporate advertising help to achieve the profit goal.

Bank can only continue to make profit in so far as its public that it is deserves to continue its operation by corporate advertising generally seeks to achieve the following.

DEFINITIONS OF TERMS

BANK:            This is an organization authorized by the central bank of Nigeria [C B N]. Through the insurance banking license to accept deposit from members of the public as well as to carry out the banking business generally.

BANKING:      Banking can be said to be the business of receiving money from outside source as deposit irrespective of the payment of the interest and granting of money, loan and acceptance of credit or the purchase of bills and cheques or the purchase and sales of securities for the account of others or the incurring of the obligation to the acquire claims in respect of loans prior to their maturity or the assumption of guarantee and other warranties for others or the effecting of transfer and clearing and such other transaction are the commissioners may on the recommendation of the central bank by other published in the Federal Gazett Designates as banking business.

BANK MARKETING: The creation and delivery of customers satisfying services at a profit.

CORPORATE ADVERTISING: This is advertisement focused on the creation of good image for the company in the minds of the public.

CHAPTER TWO

LITERATURE REVIEW

  • HISTORICAL MILESTONES IN ADVERTISING

Advertising roots can be traced to early history. Although advertising is primarily a private enterprise marketing tools, is used in all the countries of the world including socialist countries. It is a cost effective way to dissemination message. Whether it be to build brand preference for coca-cola all over the world or to motivate a development nations consumer to drink milk or practice both control advertising practice goes back to the very beginning of recorded history.

A pompeian wall painting praised a politician and asked for the peoples notes other forms of advertising such as town criers were also used on the early history of advertising (Philip Kotler).

  • HISTORY AND DEVELOPMENT OF ADVERTISING IN NIGERIA

The development of modern advertising in Nigeria is synonymous with the development of Links Limited Lagos.

In the 1980’s advertising in Nigeria gathered momentum. This was due to the emergence of conventional retail out let.

Customers where able to choose and pick the goals they like. The first radio commercial was sponsored by level brothers Nigeria Plc for one detergent and product by WAI in 1960.

In the same year, television arrived on Nigeria and the first TV commercial was sponsored by Nigeria breweries make of star larger beer and coca-cola of drink at that time.

Today in Nigeria, advertising has become so phistcated both in design and presentation of commercial message.

There has also been a tremendous increase in number of advertising agencies in the country. The increase in the number of agencies in the county necessitated the formation of a regulation professional body called the Association of advertising practitioners of Nigeria (A.A.P.N). This AAPN is charged with the overall regulation and proper conduct of advertising in Nigeria.

SOURCE: Paraphrased from lintas Lagos (1928-1978) publication on it fifty years of growing as in Aham Anyanowu (1993) page 95.

What is bank marketing?

The word marketing conjures up different images to different people in various fields. To the casual reader marketing would seem but a glossy term for selling and advertising to the informed mind however, marketing involves the continued monitoring of customers need with a view of providing better products services at a profit. Ogunsanya G. (1986).

Malcan Mcmam (1968) also once called market. The creation and delivery of a standard of living so more may other definitions of marketing exist and more may be evolved over time but the substance of marketing in its overall operation, a firm that is not marketing oriented will soon seem. The prophetic handwriting on the wall.

Just as marketing is vital in the manufacturing oil and other sectors it is also important that the services industries and moreso in banking. The defining marketing with special reference to bank wafer (1973) give a 5-point definition.

  1. Identifying the profitable market now and in the future.
  2. Assessing the present and future need of customers.
  3. Setting business development goals and making plan to met them.
  4. Managing the various banking services and promoting them to achieve the plan.
  5. Adoption to the past changing environment.

From this definition, it is clear that different banking service is changed on marketing from the step by step definition above, bank must know the direction they are headed, know their customers, very well the very dynamic environment.

All business arms at profitability and these include banks. Such profit can only be achieved if may be made at the statement of the customer but in free market condition to stay longer in business bank must continually assess their operations and see how far they are meeting the needs of their customers and society in general.

In making use of product or services, customers derive various utilities, time, place, possession and from utilities. Bank marketing seeks to provide in the from the customer wants. The right place and the right time world (levy H.B. 1984).

The marketing services in the right from place and time would involve analysis research, training and some other factors. According to Onwuzuruoha (1984). Bank marketing has to concern itself with product development, effective training of personal to seek the various (services). Research to determine the acceptability of proposed service or modification of existing ones (provision of end) maintenance of branch offices that are not enable. Bank draws their customers from broadly the same population but their publics are by no mean homogenous.

Thus, in the marketing of banking services, bank must be conscious of the fact. Bank marketing should therefore try to define the various markets the bank arms at saving, the bank should thus segment its markets.

Stanton, (1981) define marketing segmentation as the process of dividing the total of a heterogeneous market for a product into several sub-market or segments, each of tends to be homogenous in all signification aspect.

Due to recent development in the banking, industry the marketing oriented bank would endeavour to segment its market.

Ekemezie mentioned some of these development. The great increase both in the number of customers requiring banking and other financial services on the complexity of service they required. The more sophisticated use of computer, not only to handle electronically transactions which will previously handle manually (encouraging aims length impersonal banking) but to give central management much more information on and control over the details and profitability of customer transaction and commercial initiatives. It should be noted at this stage that customers generally view service as fairly homogenous. Thus as Kotler (1988) say “The careless about the provider than the price” this be the case bank would need to arrive at a solution to beat price competition.

Bank for instance can add innovation features to distinguish its offer from that of other banks. In addition to the primary service, packaging secondary feature may also be added. In marketing its services, a bank should endeavour to development complete marketing mix strategies for its services to help to achieved this. They must undertake certain step these in include;

  1. Conducting marketing analysis and research: The bank should be able to who is its customer. Who does the buying? Why? And so many others, though analysis and research corrects answers to this question are found and the bank is able to gain proper direction.
  2. Product planning: This refers to all planning activities designed to prepare an assortment of product to meet the market demand Stanton product development refer to a firm seeking increased sales by developing new or improved product for its current marketing.
  3. Pricing of service: This should take into account supply demand relationship in various areas of various time. Price should constantly monitored in order to accommodate such consideration as location, season and psychology of the customer.

Finally, it can be said that days of traditional banking are over. Bank should now be more alert to various avenues, techniques and strategies of insuring maximum customer satisfaction essentially bank can be do this by planning effective marketing strategies while considering a multitude of other factor both within and outside the industry. Banks must realize that with service, customers buying performance rather than a physical product since service are so abstract, the marketing presented banker must find a way to make concept come for a customer.

  • THE CORPORATE ADVERTISING OBJECTIVE

The aims of advertising generally are to inform, to persuade and convince and to remind. The broadly comprise the aim of corporate advertising as well. However, like with many area of marketing corporate advertising has grown to such a stage where this broad aims have to narrowed in other to got a dipper understanding of the subject. For instance, who are we informing what are we persuading or reminding them about any why?

Before delivering any details one needs to know just what corporate advertising really is. Kotter (1988) sees its has the long term build up of an organization corporate image.

Kogen (1973) believes that corporate advertising explains the continues researcher. Engineering and management effort a company makes to improve the product or service form. These two definition one gets the impression that corporate advertising is not an adhoc after but long term continue. It is concern with research to improve its product and its corporate images enhancing banks corporate image is important.

George F. (1989) summed up the importance of goods corporate image. The part that corporate advertising plays in enhancing the corporate image vital. It may be said to be overriding arms of corporate advertising seeks to product a firms repetition. The argument for corporate advertising is based primarily on its preventive. It is perspective because you do it before it is needed. The right definition of corporate perspective advertising. Though the ultimate goal of corporate advertising is to increase sales such device objective as better labour relation goods will is areas of operation interest in the company by investors and so are not left out.

The major objective of corporate advertising however is designed to;

  1. Enhance or maintain the company reputation or good will among specific publics or business audience.
  2. Establish or maintain a level of awareness of the company’s name and nature of business.
  3. Establish the company’s concern for environment and social issues.
  4. Educate the audience on subject of importance to the company feature and e.g. profit, free enterprise economy.
  5. Ring about towards the company or its product.

With stereotype idea gradually fasting out corporate advertising has sized to be a second rate marketing function grudgingly delegated to the P.H. department but very important management advertising. With the mention objectives and important of corporate advertising it is no wonder that banks are beginning to sit up and take their corporate advertising seriously.

Thus as early as 1982, 7 banks spent 75 billion in foreign media for advertising mostly spent in building up the banks corporate image.

  • MEASURING THE EFFECTIVENESS OF CORPORATE ADVERTISING

The simple communication model show that from the sender and receiver of the message there is also room for feedback.

Nylen D.W. (1980) thus, in advertising there should be an avenue not just for feedback but more importantly or measuring or assessing how effective the corporate advertising programme of bank is Evaluating the effectiveness of advertising is not easy task for it is not always possible to take into account. The many other marketing mix factor which may have been used to achieved a successful outcome.

John Marah postulates that the impact of advertising can be assessed before it is used (pre-testing).

Pre-testing can be carried out in a number of ways:

  1. Showing advertising(s) to a representation sample of the target audience in order to get a reaction before the motor advertising campaign.
  2. Showing a profit of advertising(s) to a group of consumers to set which one(s) make the best impact using recolor memory techniques.

Often however, advertising effectives is measured the effectiveness of adverts, two schools of taught may be considered one school recognizes that the overall objectives of advertising is profitable sales and thus they rear measurement of advertising effectiveness would be found in the profit and loss account of the bank.

In bank words how much sales were we able to achieve in this period using this advertising campaigns? This the stimulus in what is actually being evaluated.

Nylen D. (1980) point out some problem that hinder this approach to assessing advertising these are:

  1. Advertising does not always have the sale objective in mind, in short term (long term objective and justification for advertising is profitable sales) some other objective of advertising may include enhance the bank image. Information the public about a new experience or change of address etc. measuring advertising effectiveness based on sale alone would not indicate. If these objectives have been meet or not.
  2. How is the measurement done? Since sale are influenced by a multitude of factors how do we then isolate the sales generated by one of those elements advertising, such factors as government politics economic conditions and so on effect.
  • Media evaluation did the programme perform as planned. Area there other media approaches that could yield more effective result.
  1. Creative evaluation was the creative programme the was executed are there alternative programme that may be more effective.
  2. Total plan evaluation: The overall evaluation of the overall objective. Several other elements are also evaluated to see how effective a back advertising has bee.

These include readership measurement, media audience measurement, market tests, sales analysts attitude measurement. There is various techniques used in assessing the impact of any advertising campaign.



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