Relationship Marketing in Mainstream Bank Plc an Evaluation

Relationship Marketing in Mainstream Bank Plc an Evaluation

Abstract of Relationship Marketing in Mainstream Bank Plc an Evaluation

This project work was an attempt to investigate the relationship marketing in mainstream bank plc Enugu.

The objectives were:

1.   To determine the impact of relationship marketing in banking industry.

2.   To evaluate the level of relationship that exist between the bank with their customers.

3.   To identify those problems that may hinder the success of relationship marketing in banking industry.

Based on the objectives of the study, three hypothesis were formulated. Questionnaires and personal interviews were used to elicit data from respondents. Simple tables and percentages were used to analyzed data collected. Based on the analysis, the following findings were made.

1.   It is discovered by the researcher that advance in technology help to facilitate relationship marketing in the banking industry.

2.   The researcher also discovered that network failure is a serious interference to relationship marketing communication flow.

The researcher therefore made the following recommendations;

1.   In respect to relationship marketing, the researcher recommend for provision of adequate information to customers at the right time.

2.   The bank management should embark on proper supervision so as to monitor the activities of their staff at every point in time.

Chapter One of Relationship Marketing in Mainstream Bank Plc an Evaluation

INTRODUCTION

BACKGROUND OF THE STUDY

According to Kotler P. (2010:215), Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions. He then define relationship marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.

With the growth of the internet and mobile plateforms, relationship marketing has continued to evolve and move forward as technology opens more collaborative and social communication channels. This includes tools for managing relationship with customers that goes beyond simple demographic and customer service data. Relationship marketing extends to include inbound marketing efforts ( a combination of search optimization and strategic content), public relation, social media and application development.

Relationship marketing is a broadly recognized and widely implemented strategy for managing and nurturing a company’s interaction with clients and sales prospect. It also involves using technology to organize, synchronize business, processes (principally sales and marketing activities) and most importantly, automate those marketing and communication activities of concrete marketing sequences that could run in autopilot (also known as marketing sequences). The overall goals are to find attracted and win new clients, nurture and retain those the company already has entice former clients back into the fold and reduce the cost of marketing and client services.

According to Armstrong G (2006: 201) Relationship marketing refers to a short term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. This approach tries to disambigiously transcend the simple post purchase exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalized purchase and uses the expense to create stronger ties.

According to Adirika E.O and Ayionu S. O (2009:115) Relationship marketing can be applied when there are competitive product alternative for customers to choose from and when there is an ongoing and periodic desire for the product or services thus, relationship marketing migrate back into direct mail, allowing marketers to take advantage of the technological capabilities of digital, toner-based printing presses to produce unique, personalized pieces for each recipient through a technique called “variable data printing.

STATEMENT OF THE PROBLEMS

Nigeria as a whole, there are many financial institutions that provide different kinds of services to their customers in which mainstream bank is not exceptional. Indeed the completion level is said to be high leading to high level of relationship marketing among the customers so as to retend them on their service delivering.

Adoption of relationship marketing in mainstream bank has make a lot of impact towards the actualization of the organizational goals and objective which give rise to growth, profit, survival an social responsibility. However, despite the impact of relationship marketing in banking industry, there are some challenges which the bank encountered in the course of relationship marketing which has to do with cost, time, customers differences, administrative problem as well as management problem and all these mention problem are what the researcher will intend to solve in the course of the study.

OBJECTIVE OF THE STUDY

The objective of the study on the relationship marketing in mainstream bank plc include the following:

1.   To determine the impact of relationship marketing in banking industry.

2.   To evaluate the level of relationship that exist between the bank with their customers.

3.   To identify those problems that may hinder the success of relationship marketing in banking industry.

4.   To recommend possible solution to the identified problems to relationship marketing.

5.   To determine the perception of customers in respect to the relationship marketing in practice.

SCOPE OF THE STUDY

The scope of the study on the impact of relationship marketing in the banking industry will be based on mainstream bank plc Enugu. An evaluation for extensive study by the research.

RESEARCH QUESTIONS

1.   Whether customers are satisfied with the relationship marketing practice in mainstream bank?

2.   Whether relationship marketing increase the numbers of customers to the banking industry?

3.   Does technology facilitate relationship marketing in the banking industry?

4.   Whether attention is giving to all customers in terms of relationship marketing?

5.   Whether mainstream bank practice relationship marketing due to their competitors?

SIGNIFICANCE OF THE STUDY

The study will be of significant mostly to the financial institutions as well as the researcher when taking the investigation. Indeed, the study will benefit all the banking industry and not just mainstream bank on the necessary step to take in order to achieve and establish an effective customer relationship marketing.

Moreso, the study will benefit the decision makers of the banking industry based on when and when not to use relationship marketing on their transaction. Thus, relation management guidelines will be unveil.

Furthermore, the researcher as a potential marketer will likewise benefit from the study hence it is a part of her discipline more knowledge will be acquired in the course of the study on issue that has to do with relationship marketing.

Finally, the study will be of benefit is other forth coming researchers who may wish to research on a similar topic with the above and as such serve as a reference material to such researcher. Also it can be documented and kept as reading material at library.

FORMULATION OF HYPOTHESIS

The research formulate both null and alternative hypothesis from the above research questions.

H0:    Customers are not satisfied with the relationship marketing practice of mainstream bank.

HI:    Customers are satisfied with the relationship marketing practice of mainstream bank.

H0:    Advance in technology does not facilitate relationship marketing in banking industry.

H2:    Advance in technology facilitates relationship marketing in banking industry.

H0:    Relationship marketing does not increase the numbers of customers to the banking industry.

H3:    Relationship marketing increases the numbers of customers to the banking industry.

H0:    Mainstream bank does not practice relationship marketing due to their competitors.

H4:    Mainstream bank practices relationship marketing due to their competitors.

H0:    Relationship marketing does not have much impact in the banking industry.

H5:    Relationship marketing has much impact in the banking industry.