17-12-2012, 12:02 PM
THE EFFECTIVENESS OF TARGET SETTING IN MARKETING OF BANKING SERVICES IN NIGERIA
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ABSTRACT
This research work studies the effectiveness of target setting in marketing of banking services in Nigeria. The objective of this study is aimed at knowing the importance of effective target setting on bank efficiency as well as the effect of target setting in marketing of banking services on bank profitability and to determine the efficiency of target setting in marketing of banking services in Nigeria economy. Necessary data for the study was from the questionnaire distributed to T-test Model using mean and variance of the data based on the empirical analysis the result obtained were tempted to believe that target setting in marketing of banking services have make the Nigeria banking sector to be more committed in order to increase liquidity, sustainable and increase shareholders wealth, it was also found out that effectiveness of target setting in bank marketing do not affect the Nigeria economy positively but rather have created chaos in the Nigerian banking market due to the poor application of target setting that is, using every tactics by the bank marketers in order to get customer to deposit their funds even if the tactics is fraudulent and this has made customers to loose confidence, based on the findings the following recommendations made were:
INTRODUCTION
The practice of marketing of banking services in Nigeria banking industry has to some extent been entwined with the historical development of the banking industry in first bank that was established in Nigeria was Bank of British West Africa (BBWA) with aim is to serving British commercial interest in the territory. In 1899 another bank called Bank of Nigeria was established but was also Foreign bank and it was absorbed by BBWA in 1912. BBWA had the banking market in Nigeria to itself for 4years, from 1912 to 1916, in 1925 Barclays Bank entered the Nigeria Banking market through the merger between the colonial bank. These bank focus on foreign commercial interest and establishes branches in localities where British commercial interest predominated, at that time, the bank was registered and have their headquarters in London (Uche, 1997). This was possible because there were few legal provisions regulating the operation of banks in Nigeria at that time, there was also no regulation in respect to marketing of banking services in the colony.
THE CONCEPT OF TARGET SETTING AND BANK MARKETING
Target setting as it relate to bank marketing is as a financial figure given to the various branches of the bank to be actualized at a stipulated time either yearly or quarterly (Zenith Bank, 2004) Lawson (2005) opines that target setting is the amount of money which each branch of a bank is expected to realize at a given period of time and when put together it will be overall target of the bank. In order to evaluate the performance and the staff efficiency it is necessary that every bank set target to be met in order to remain in business and to be able to meet the Central Bank of Nigeria capital based requirement (CBN, 2002).
It also sees target setting as a quantified objectives or goal often set by the management of a bank with a plan to be attained at the future data (CBN, 2002). Lawson (2005) still stress that for any bank to compete favourably in Nigerian banking arena it must have a well define target and incentive to motivate the staff to strive and reached their expected goal, Lawson is of the view that the amount stated to be generated by the bank is not under compulsion that the staff must meet it at all cost but they must strive to generate favourable percentages of the amount targeted.