THE IMPACT OF ADVERTISING ON THE MARKETING OF BANKING SERVICES.
(A CASE STUDY OF MICRO FINANCE BANK OKO)
ADVERTISING AND BANKING INDUSTRY (MICRO FINANCE BANK)
Banking are economic decision units that are set up for the provision of financial services and products to targeted market. This service tendered to both public and private sector of the economy includes: collection of deposits, clearing of cheques and other exchange, granting of loans and over drafts guarantee of joint financing by two or more banks foreign exchange transaction, fund transfer and insuring drafts services rendered include safe keeping facility and financial advice to customers.
The operation of micro finance bank initially community bank were perceived to be incorporated for efficient sustainable economy. Micro finance bank help to provide financial assistance and credit to its customers, including formal and informal self – help groups, individuals and association: except public sector deposits from government agencies.
To this end, micro finance bank have to come up with more efficient and effective services for example, full-fledged computerization becomes the order of the day, processing of loans and advances reduction in member of clearing day for clearing instrument.
However, to communicate these services effectively in enhancing profitability the need for advertising in Micro Finance bank becomes inheritable. Advertising which until this time had little or no significance in the banking industry becomes strong information and persuade tool to reach target customers.
1.1 BACKGROUND OF THE STUDY
Advertising is one phrase that has been given different definitions by authors. A critical analysis of all the variable definitions shown that they have something in common.
Talking about the importance and relevance of financial services in every one’s life. This includes ordinary life circle events like, birth, marriage and deaths; it also includes the possibility to invest, to increase our wealth.
Micro finance target people who do not have access to the formal financial sector and are under-banked at the moment. This affects not only their economic activities but also improves their health, education and living circumstances. In the end, the overall objectives are to elevate poverty.
The practice of micro finance is not new and has probably been around for as long as currency itself has. Informal credit and savings services probably formed around social services where the members got together to help one another as a community. Savings and credit groups that have operated for Centuries include the “Susus” of Ghana, “Chit fund” in Idia, “Tarda” in Mexico, “Asian” in Indonesia, “Cheetu” in Sri Lanka tontines” in West Africa, and “Pasanaku” in Bolivia
1.2 STATEMENT OF THE PROBLEM
Generally speaking, the use of advertising is cost effective for promoting, bank services. Most crises, even executives in services firms see advertising as a massive waste and neglect its need when assessed against results.
There is also argument that advertiser designed to indulge customer against their wish. It is further argued that successful firms use heavy advertising to create a barrier to entry of smaller firms, to these successful firms gain monopoly of the market. These advertising view and crusade do not see the need for advertising in organization and the economy as a whole. These and some other problem are what the researcher set out to solve.
1.3 OBJECTIVE OF THE STUDY
The researcher intends to find out the following:-
– Whether advertising is important to banking services especially micro finance bank Oko branch, Anambra State.
– Ways of improving the present use of advertising by micro finance banks.
– Media selection factors
– The best of combinational mix appeals.
– What makes customer to patronize the bank.
1.4 SIGNIFICANCE OF THE STUDY
This research work will be great relevance and benefit to various categories. First, the banking industry, particularly the bank under the study can access the application of advertising to a service organization, like in view of new land on the industry, competition being a top phenomenon, and secondly, customer, which form the bedrock of any business is also taking into account in the research. They too will benefit as reaching them with the right combination of advertising programme action and result message sill stimulate action and result in the desire satisfaction they seek to derive from the industry.
Thirdly, lectures, students will derived maximum benefit from this research as the member of brokers and literature available looks scanty.
1.5 ASSUMPTION OF THE STUDY
These problems placed limitations on the author, though; they did not permanently render the study success. Thus areas the following assumption regarding the investments:
i. That the respondents cooperated by giving the required information
ii. That the responses to the questionnaires were to the best of the respondents knowledge true and accurate.
iii. That the head of the marketing unit or the bank has adequate knowledge of the banks marketing practices.
iv. That the responses to the questionnaires in the branches chosen were representatives of the other branches not student.
1.6 RESEARCH QUESTION
i. What is the customers knowledge of the product or service in terms of its features?
ii. What is the degree of awareness of the product service or advertising campaign we have invested in?
iii. How acceptable is the advertising to the consumer?
iv. What is the image of the product or service in terms of whether the advertising has strengthened or weakened its image?
v. What is recalled and it is essential in providing the customers with the relevant reassurance?
vi. Which aspects of the communication messages persuade the consumer to buy the product or use the company service?
Ho: The use of advertising does not enhance the quality of services to your business
Hi: Advertising enhances the quality of services to your business.
Ho: Workers effort is not justified with advertising.
Hi: Advertising justified the effort of workers
Ho: The use of advertising does not reduce cost in financial industry
Hi: The use of advertising reduces cost in financial firms.
Ho: efficiency does not measure the advertising services
Hi: efficiency measures the advertising services.
1.8 DEFINITION OF TERMS
IMPACT: According to Longman Advance Learners dictionary of contemporary English defines impact as the effect or influence that an event, situation e.t.c. has on someone or something.
ADVERTISING: Defined as non-personal form of communication, presentation and promotion of ideas, goods and services by an identified sponsor.
BANK: This is an organization that comes out business of banking such as keeping money and lending services.
MICRO FINANCE: Financial institution that receives savings and giving of loans or credit to SME at a small interest rate.