The Relevance of Marketing in Post-Consolidation Banking in Nigeria: an Illustrative Approach
THE RELEVANCE OF MARKETING IN POST-CONSOLIDATION BANKING IN NIGERIA:
AN ILLUSTRATIVE APPROACH
BY
AMINU, S. A., A LECTURER IN THE DEPARTMENT OF MARKETING, LAGOS STATE POLYTECHNIC, ISOLO CAMPUS asabiod2001@yahoo.com Abstract The purpose of this article is to assess the relevance of marketing in post-consolidation banking in Nigeria. The study highlighted the fact that prior to the consolidations in 2004, majority of the banks paid little or no attention to marketing. However, with successful consolidation exercise in 2005, came the challenge of judiciously utilising the high capital base at the disposal of the emerged 25 banks. They needed to generate superior returns to their shareholders and marketing became an important competitive tool to achieve this. They, in varying degree, employed the marketing tools of marketing research, branding, new product development, pricing, distribution, marketing communications and so on. The study concluded that Nigerian banks and their teeming customers are really in new world – the world of marketing, where the rule of the game is continuous value creation, communication and delivery to ‘the king’, consumers. Therefore, the relevance of marketing in post-consolidation banking in Nigeria cannot be overemphasised.
Keywords: Marketing, Consolidations, Capitalisation, Bank, Customers/Consumers, Competitive Advantage.
INTRODUCTION
The word bank is derived from the Italian banca meaning 'bench ', the table at which a dealer in money worked. From this, Jhingan (1997) defines “bank” from the perspective of a commercial bank. A bank refers to a bench for keeping, lending and exchanging of money or coins in the market place by moneylenders and moneychangers. However, he is of the opinion that modern commercial banks carry out more important activities critical to national development. Consequently, he remarks that many scholars have identified the banking sector, as one driving most economies of the world. Banks, all over
AN ILLUSTRATIVE APPROACH
BY
AMINU, S. A., A LECTURER IN THE DEPARTMENT OF MARKETING, LAGOS STATE POLYTECHNIC, ISOLO CAMPUS asabiod2001@yahoo.com Abstract The purpose of this article is to assess the relevance of marketing in post-consolidation banking in Nigeria. The study highlighted the fact that prior to the consolidations in 2004, majority of the banks paid little or no attention to marketing. However, with successful consolidation exercise in 2005, came the challenge of judiciously utilising the high capital base at the disposal of the emerged 25 banks. They needed to generate superior returns to their shareholders and marketing became an important competitive tool to achieve this. They, in varying degree, employed the marketing tools of marketing research, branding, new product development, pricing, distribution, marketing communications and so on. The study concluded that Nigerian banks and their teeming customers are really in new world – the world of marketing, where the rule of the game is continuous value creation, communication and delivery to ‘the king’, consumers. Therefore, the relevance of marketing in post-consolidation banking in Nigeria cannot be overemphasised.
Keywords: Marketing, Consolidations, Capitalisation, Bank, Customers/Consumers, Competitive Advantage.
INTRODUCTION
The word bank is derived from the Italian banca meaning 'bench ', the table at which a dealer in money worked. From this, Jhingan (1997) defines “bank” from the perspective of a commercial bank. A bank refers to a bench for keeping, lending and exchanging of money or coins in the market place by moneylenders and moneychangers. However, he is of the opinion that modern commercial banks carry out more important activities critical to national development. Consequently, he remarks that many scholars have identified the banking sector, as one driving most economies of the world. Banks, all over
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