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The primary objective of this research work is to carry out proper investigation on “the application of marketing concept in commercial banking and its effectiveness in consumer satisfaction” at Guaranty Trust Bank Murtala Muhammed Square Branch Kaduna. To highlight the result of the investigation of the subject matter. Background, statement of general problem, purpose, significance, research question and delimitation of the study. Chapter two is the literature review relevant material were used in order to acquire full information about marketing, the marketing concept. Nigeria financial system and banking. Author whose book were consulted in this research work were acknowledge, chapter three deals with the research methodology, primary data were gathered through the utilization of personal interview and detailed questionnaire. The total population size of Guaranty Trust Bank Management/staff in the branch is 40 out of which 15 were randomly selected and administered questionnaire. 20 respondent of the total customers population were also randomly selected. All the respondents responded to the questions asked which were later tabulated. The simple random sampling is the method employed by the researcher in determining the sample size, the statistical technique used in testing the hypothesis was simple percentage method justification of samples, sampling method employed etc. were all discussed extensively. The hypothesis tested is;

Ho:  Marketing concept has no effect on the customer’s satisfaction.

H1:   Marketing concept has effect on the customer’s satisfaction.

Chapter four deals with data presentation and analysis; all the data collected were analyzed in this chapter, result obtained from the data and proof of hypothesis was accepted often careful analysis of the alternate hypothesis, this chapter result obtained from the data and proof of hypothesis was accepted often careful analysis of the alternate hypothesis. It proved that marketing concept. Application has effect on consumer satisfaction. Finally chapter fiver contain the summary of the major finding of the research and recommendation were made based on conclusion. The recommendation include A well coordinated marketing planning programme must be adopted by Guaranty Trust Bank to ensure that all departments are giving total participation towards customer’s satisfaction. All effort should be directed towards reducing customer waiting time to the barest minimum which is highly important. These can assist management in marketing their products effectively while ensuring customer satisfaction.




Title page                                                                         i

Declaration                                                                      ii

Approval page                                                                  iii

Dedication                                                                       iv

Acknowledgement                                                            v

Abstract                                                                           viii

Table of contents                                                             x



1.0   Introduction                                                             1

1.1   Background of the study                                          3

1.2   Statement of the study                                             5

1.3   Purpose of the study                                                        7

1.4   Significance of the study                                          9

1.5   Research questions                                                  11

1.6   Statement of Hypothesis                                          12

1.7   Delimitation of the study                                         12

1.8   Definition of terms                                                   13


CHAPTER TWO: LITERATURE REVIEW                               

2.0   Introduction                                                             16

2.1   Historical Perspective of Research Area                   16

2.2   Review of current Literature                                     18

2.2.1        Marketing Concept                                                  22

2.2.2        Contrast Between sales and Marketing Concept      23

2.2.3        An Overview of Nigerian Financial System                       24

2.2.4        Classification of the Nigerian Financial System               25

2.2.5        The Role of Marketing in Nigerian Financial            26

2.2.6        Marketing of Banking Service in Nigeria                 27

2.2.7        Application of marketing mix in the Banking Industry    28

2.2.8        Total Quality Management                                       41

2.2.9        Customer Satisfaction                                             46

2.2.10 State of the Banking Industry                                      48


3.0   Introduction                                                             53

3.1   Area of study                                                            54

3.2   Research design                                                       54

3.3   Population of the study                                            55

3.4   Sample and sampling technique                              55

3.5   Instrument for data collection                                  56

3.6   Administration of the instrument                            58

3.7   Method of data analysis and presentation               58


4.0   Introduction                                                             59

4.1   Characteristics of respondents and classification    59

4.2   Data presentation and analysis                                       61

4.3   Answer to research question                                    75


5.0   Introduction                                                             78

5.1   Summary                                                                         78

5.2   Conclusion                                                              80

5.3   Recommendations                                                   81

Bibliography                                                            84

Appendix/Questionnaire                                         86






Marketing concept is a customer oriented philosophy which states that customer’s satisfaction is the economic and social justification of firm’s corporate existence. These philosophies hold that the company should be customer oriented. Strive for profitability. Sales volume and coordinate all its marketing activities. Marketing management however is the vehicle that business uses to capture the marketing concept.


Kurtz (1992. Pg 3) defines marketing management as a unifying approach marshalling and directing the total resources of a business firm towards the determination and satisfaction of a customer and consumer wants in a way planned to enhance the firm overall profit position.


Where the marketing concept is recognized, there is a total change in the basic philosophy of business. Instead of trying to sell what can be produced. Management produces what is really needed by the customer though profit criterion is there. The element of serving and keeping the customer satisfied are equally important to the company. By realizing that it is not merely selling a particular product but particular need of a customer is satisfied effectively. The essence of banking services marketing is to provide the desired satisfaction to customers and make the business of banking maintain a sound footing and sustainable growth in the short and long run.


The current industrial, commercial and technological metamorphosis with increased competitive pressure. Customer expectation and other unstable environmental faces are clear indications that a business either adopts marketing concepts philosophy or goes out of existence. The recent proliferations of banks in Nigeria denote a more intense competition in which only those capable of adopting dynamically would be able to maintain a sustained growth and profitability. The present economic changes in Nigeria no doubt, pose greater challenges to commercial banks. These trends of changes have made banks to realize that their customers can no longer just be treated in an off head manner. Banks therefore employs marketing experts who actually go out and solicit customers patronage and loyalty. Banks now realized the importance of maintaining close relationship with customers and getting the service closer to them as possible. Most banks set up marketing research department or as the case maybe in order to gather more facts about customer needs, attitude, motives and preference.



This study tries to examine the contribution of marketing concept philosophy and the marketing mix elements in the effort of satisfying customer’s need effectively in commercial banking. The orientation of banking service started with production concept which believes that customer would buy the services offered to them by banks provided it is accessible and affordable. Thus banks thinks of offering useful services and open out more branches to make their service accessible.

Later the bank moves to product concept under the assumption that customers would buy such services that offers the best quality and value for the price that is being offered. Thus banks direct their efforts in improving the quality of their services.


However, at the later stage of their development, sales orientation comes into effect i.e. selling concept which believes that customers would not buy enough from them unless a positive extra effort is made to sale the product due to increase in competition and awareness. Today, the application of marketing concept makes banks to accept the fact of finding out the needs and wants of customers and to provide banking service package that will best satisfy such needs and wants profitably.


The marketing concept has been viewed as the correct philosophy in achieving a long – term commercial success. Thus making the task of persuading customers to buy the service that bank offered very easy. Therefore customer satisfaction becomes inevitable. The marketing concept is directed towards answering the question as to, who are our customers. To whom do we produce? What marketing techniques do we employ? Why are we selling this product? Who do we sell to? Also to find out what the customer want and where he wants to buy the product and how he want it delivered in order to create a cordial relationship between the organization and its customer so as to achieve maximum satisfaction.



The marketing concept doesn’t seem to receive complete recognition by the Nigeria commercial banks. The integrated marketing idea that business should be organized in such a way as to satisfy the customers by committing the whole system of the organizations activities towards a single objective has been a myth to the commercial banks rather than a reality. Consequently, customers are not given the adequate attention they required in the banks as that which is appropriate in the service organization. Furthermore, banks charge discriminatory interest rates on borrowed funds which causes untold hardship to customers. The banking profession in Nigeria had until – recently been characterized by what expert refers to as arm chair banking, where bankers are waiting in their offices for work to come and meet them. This approach to banking business is deficient because the bank had not fully embraced marketing concept: its philosophy and function. Their perception of marketing is still narrowly defined. Marketing of bank services actually transcend these myopic ends.


Nigeria commercial banks need to adopt the marketing concept programmes for a purposeful and customer oriented approach to the business of banking.


As a result of the above factors, this research is designed to answer the following questions.

  • To research into and find out those areas the banks have found to be of interest in satisfying customers.
  • To ascertain the opinions of banking staff towards their customers and vice – versa.
  • To find out the place and role of marketing in the organizational structure of commercial banks and to what extent marketing functions have been applied.
  • To ascertain the effectiveness and efficiency of marketing concept application.
  • To make useful recommendation towards improvement



The marketing concept has not received the attention it deserved in most commercial banks in the country. The importance of this research focuses on the effect of marketing concept on the Nigerian banking sector using Guarantee Trust Bank Plc Kaduna as a case study. The research attempt to highlight the importance of the marketing in the banking industry. Accordingly, attempt will be made to critically examine the various marketing mix elements and their effect on the banking sector.


The researcher is essentially interested in looking at marketing as a critical factor for the increase in patronage of the banking industry. And equally ascertains the extent of marketing in the sector. The concept of marketing is directed towards customer satisfaction. Marketing is a consumer oriented programme which start by focusing on the consumer wants. How best to satisfy him and how best to communicate and bring service to him at the price he can be willing to pay with added emphasis on convenience.

In fact the purpose of the study is

  • To provide a valid picture of what is happening in the commercial banks in term of marketing and customer satisfaction.
  • To analyses customer response as to service rendered by commercial banks.
  • To evaluate the compatibility of bank resources with the environmental factor. (service and customers)
  • To measure commercial banks corporate offer and customer acceptability.
  • To recommend on solving problems based on findings which will help to improve other marketing strategies implementation.



This research is necessary because some officials have not fully displayed through their attitude the relevance of the customer as the key player in the banking service.


The research is timely and important because of the role marketing plays in the banking industry. It will also prove or refute the hypothesis that Banks believes in the application of marketing concept in order to bring about objective satisfaction to customers needs.


Customer’s needs and wants are dynamic in nature. Some customers are not aware of various products and services rendered by banks apart from mere deposit and withdrawal from their accounts. The effect of marketing will therefore serve as impetus for drawing the attention of the customer to the existence of their services. It will also serve as a useful tool in setting overall corporate objective, prosperity, growth and continued existence of business. The commercial banks needs to constantly structure their services in such a way that they cater for the financial needs of not only the customers but also the prospective customers.


The research finding is hoped towards providing qualitative and quantitative knowledge and idea in applying the concept of marketing in achieving corporate objective and customer satisfaction. Also student of marketing can use this research work as a guide or reference when information on marketing concept and the marketing mix element are desired in customer satisfaction. It is often said that the end of research work is the beginning point of another, so it will act as a fore ground for staff and students who will find this philosophy worth while or unavoidably expedient.



The research questions are formulated on the basis of the purpose of the study to guide the entire research work. These questions will serve as guide to the researcher in designing the questionnaire and in providing solution to the problems discovered. Thus the questions are set as follows;

  • What is the status of marketing concept in GT bank
  • How long have GT bank adopt the marketing concept
  • Does the concept increases patronage by customers
  • What is the effect of the concept to the organization
  • How would the concept improve customers satisfaction
  • What is the nature of relationship that exist between GT bank staff and its customers?
  • What effort is the management of GT bank doing to improve that relationship



Two hypotheses have been formulated and would be tested in the course of this study, which are the Null hypothesis and the Alternate Hypothesis.

Ho:  Marketing concept has significant effect on customer satisfaction.

Hi:   Marketing concept has no significant effect on customer satisfaction.



In conducting a research of this nature, definitely one is bound to face some challenges. Therefore the research focuses only on the management and customer of GT Bank Murtala Mohammed Square Branch Kaduna due to financial constraint. Time limits and other environmental constraints.

  1. Finance: Due to the high cost associated with transportation, visitation was only restricted to the branch office in question. Also materials that are needed have to be bought, while some are obtainable from the net. Typing and binding of the entire work is another area that needs serious consideration.
  2. Time Constraint: Time was a major constraint to the research and this was compounded by the fact that the research work was to be conducted and its report submitted within a short period of time. Data collected analysis classification of such data’s, interview was also conducted and the respondent’s attention based on their most convenient time.
  3. Inadequate Material: Research work of this nature requires information from textbooks, journals and periodic reports of which some of these materials are either confidential, difficult to obtain or too expensive.



Some of the terms used in this research work are defined below for easy understanding and interpretation.

  • Marketing Concept: The philosophy which states that customers satisfaction is the economic and social justification for a firm existence.
  • Marketing: The management process responsible for identification, anticipation and satisfaction of customers needs profitably.
  • Product: Bundle of utility satisfaction, which takes the form of tangible or intangible object offered for exchange.
  • Service: Any activity or benefit that one party offers to another that is essentially intangible and does not result in the ownership of anything.
  • Advertising: Non personal paid form of awareness creation directed at target audience by mean of persuading them to take a particular course of action.
  • Analysis: A resolution into simple element. E.g summary of data into a tabulated form chart or diagram.
  • Attitude: State of mind reflecting a negative or positive personal view about an object of concept.
  • Bank Marketing: The process at attracting customers to sell deposit and buy loans and advances from the bank.
  • Customer Orientation: The identification of what customer wants and how to deliver it to consumer’s satisfactorily, which is the means of corporate survival.
  • Banking Ordinance: Law passes by Federal government of Nigeria between 1928 and 1952 which states how banking activities should be conducted.
  • Bank Note: Paper issued by bank in denomination for the purpose of exchange of goods and service.
  • Bank Charge: Commission charged by bank to customer for the safe keeping and management of their accounts.


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