Background to the Study

Marketing has become increasingly a vital ingredient for business success. Marketing virtually affects our day-to-day lives, it is embedded in everything we do (Kotler, 2006) Marketing practices are continually being refined and reformed in virtually all industries to increase the chances of success. Marketing is very important in an organization, that one could equate it with finance. While finance may be considered as the life wire of business, especially startup capital, marketing is the only thing needed so that the capital invested could be recouped and for the business to continue to exist. There is no business that exists except there is market for such business. While market may be viewed as a point where exchanges takes place, marketing is considered as a set of human activities directed at facilitating and consummating mutually satisfying exchange relationship between the marketer and the market (Linus, 1997). This definition justifies the dependence of business on marketing. Marketing being the bedrock for business survival is commonly believed to have progressed through five distinct phases of evolution since the beginning of the time.

A brief history of marketing in Nigerian banking, shows how economic, political and social environment have influenced the marketing of financial services in Nigeria. Although conventional banking began in Nigeria in 1891 with the establishment of the African Banking Corporation which later became Bank Of British West Africa, little has been done in marketing because the banks were established mainly to serve the foreigners (that is the British) commercial interests that existed then in the Nigerian colony; so they were not interested in developing new banks or clients (Abdullahi, 2012). 

Studies have shown that Nigeria has the second largest financial services sector in Sub-Saharan Africa, after South Africa and it is fast growing and expanding internationally (Becker, 2008). Marketing in years past has played a significant role in the banking system of any country and Nigeria is not an exception. Marketing is the most useful and prime tool for the banking sector and it aims at satisfying customers and bankers since the products of banks have to be marketed in order to tap the potential customers. Due to the level of globalization which has turned the world into a global village, the Nigerian banking system is facing tough competition from global banks. In this situation it is a must to have a functional marketing department and appropriate marketing strategy. In the current scenario, marketing is a very useful tool for the banking sector in attracting customers for their various products. The old days are gone for banking wherein the customer had to walk into his bank and ask for services, due to increased competition, it has become imperative for banks to use marketing practices to increase their market share by providing awareness of their products to their prospective customers. Banks have to provide knowledge of their products to their customers and create enlightenment of their products among the prospective customer and for that marketing has become an important tool which connects the customers and products offered by the bank. Banks need to break their shell and design new avenues for reaching their target group. The emergence of new generation banks and other foreign players have also increased the competition amongst banks thus a clear alignment of the needs and wants of the target group and the marketing strategies of banks is the key to revenue generation and also the solution necessary to attain growth and survival (Mohan, 2009).

The importance of marketing is viewed to the extent that financial success is said to depend on marketing ability. Finance, operation, accounting and other business functions will not really matter if there is not sufficient demand for products and service so the company can make a profit. 

According to Kofo (2006), marketing provides the necessary cash and credit to produce, transport, and store, promote, sell, and buy products. The foregoing are however achieve through revenue generated from sales. The traditional business focus is to produce and sell to the market (customer), whereas, a firm can never be sure that customers will want to buy its product. Therefore, the modern marketing idea emphasizes the identification and understanding the needs and wants of customer in the market, and adapting the operation of the organization to deliver the right goods and services more effectively and efficiently than its competitors for their satisfaction and mutual benefit. 

According to Paul (1995), satisfying the customer is what marketing concept is basically all about. Marketing fuels competition and better deals for consumers, it encourages innovation in an attempt to satisfy customers better. The basic premise of the marketing concept is that its adoption will improve business performance. Marketing is an acid test of the effect that its use has key corporate indices such as profitability and market share. In line with this, banks today are operating in a highly competitive and rapidly changing environment. In the changing economic scenario, a professional approach to business development is essential and the survival of a banking institution depends on its ability to take up challenges coming up in the environment. Developing business through marketing of bank’s services is one of the crucial areas which need attention of the bankers to ensure profitable survival. Bank marketing like any other marketing philosophy, in any context, refer to the need satisfaction of the institution clients. The basic step involves identifying the needs of the customers and developing products to suit their needs or modifying the existing products accordingly. It also requires the need for foreseeing wants of the customers in future and developing suitable products of their requirements.