This research examined innovative advertising strategies and service performance in the banking sector. The study adopted the survey method. The population of this study was the staff of Unity Bank in Port Harcourt: the population therefore is unknown. The research adopted the judgmental sampling method which is a type of non-probability sampling. By this, the researcher selected 100 respondents from Unity Bank Plc. The findings of the study revealed that there is significant relationship between innovation advertising strategies and service performance in the Nigerian banking sector: the innovative advertising strategies employed have helped to improve the performance and growth of the banking sector, especially Unity Bank Plc. The researcher concludes that financial institutions should increase the extent to which innovative advertising strategies are used. It was also recommended among others, that bank marketers should be alive to their responsibilities by displaying high level of professionalism in terms of credibility, competence, commitment and integrity. In addition, adequate feedback machinery should be put in place to address complaints.
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY
The globalization concept, which hitherto had been viewed as a slow and gradual process, has overtime been discovered to be more rapid than previously assumed. It is without doubt that the world is fast becoming a “global village” and a necessary tool for this process which banking is a key factor. The quantum developmental innovations being witnessed in the banking industry all over the world is quite amazing, as one innovation replaces another in a matter of time.
One function of the mass media which is becoming increasingly important in the banking sector and the business world in general, is the economic functions of innovative advertising.
Again, the world is fast becoming a common market place of ideas. Many multinational companies and financial institutions in particular have come to realize that people have basic needs and desires. Consequently, they have heeded to call for global innovative strategies that can promote their goods and services using advertisements.
Drawing from the above assertions, Hargical, (2007) expressed the view that in the world of banking in recent time, it is not enough to produce a product or service, package it attractively, price it right, efficiently distribute and display it to adequately meet the needs of consumers, without creating adequate awareness through advertisement.
Also, Williams, (1984) states that advertisement is an audio and visual form of marketing communication that employs an openly sponsored non-personal message to promote or sell a product, service or idea. As if that was not enough Gilbert, (2010), proposed that advertising is non-personal presentation of goods and services that is paid for by an identified sponsor.
On the other hand, Richard, (1996) added that innovation is a creation and subsequent introduction of goods and services or the development of new ideas, service products as in the manufacturing of established product.
Abdulahi, (2001) contended that banks innovative advertising strategies consist of the use of electronic and internet advertising to successfully execute mobile banking Personal communication service (PCS) together form local and wide Area network (LWAN) through client – server technology.
Others include the use of social media network through a process of interaction among people in which they create, share and exchange information and ideas in virtual communities, and networks in relation to the Banking offices.
Consequently, Grönroos, (1994) states that in spite of the increasing importance of the bank’s services in the industry, not enough research has been carried out in the field of effective innovation advertising strategies and new service development, as even traditional banking practices have equally failed and the reasons for the failure of the nature of innovative advertising strategies are poorly understood.
Meanwhile, it is on this scenario that Peter (1974) postulates that, the financial service institutions that are not responding to the changing environment by building and protecting their present position by focusing on better service, quality product innovation, innovative advertising strategies, serve, differentiation and customer retention will face difficult futures.
Conclusively, Marche (2012) held that the banking industry is now giving high priority to innovate their services and develop effective advertising strategies for the retention and management, and to attract customers back to the business and retain them for life. Hence this study discusses the innovative advertising strategies and performance in the banking sector with particular reference to Unity Bank in Port-Harcourt, Nigeria.
1.2 STATEMENT OF THE PROBLEM
Over the years the banking sector had faced a number of
problems which had caused bottle necks on its operation.
In Nigeria, particularly as it relates to creating awareness via advertising campaigns some of such problems include; liberalized domestic advertising regulation, intensified national and international competition, rapid innovations in advertising strategies, and advertising slot, as well as explosive growth in information technology, which have brought increasing pressure on managers and workers to dramatically improve productivity and financial performance. More severely, there has been limited and flexibility of internet technology after unprecedented opportunities for banks to reach out to it’s customers.
1.3 OBJECTIVE OF THE STUDY
The broad objective of this study is to evaluate innovative advertising strategies and service performance in the Banking Sector (Particularly United Bank Plc, Port-Harcourt). Specially, the research seeks to ensure that bank innovative advertising will go a long way in improving the banking sector and enhancing economic growth and sustainability in Nigeria. Hence the specific objectives of this study include;
1.4 SIGNIFICANCE OF THE STUDY
This study finds out how competitive advertising influence the choice decisions made by consumers of banks and their services. It will be useful to marketing and other financial institutions operating within the confines of the Nigeria economy, as it will give them the knowledge on how to strategically create awareness via the utilization of advertising tools.
In the same vein, this study aims at availing banks the opportunity to determine the extent to which their advertisements motivate customers with a view to make improvements on the services provided.
The study will also go a long way to encourage and improve internet within the sector in Nigeria which will significantly affect the delivery channel on opportunity for high understanding of common problems that are prevalent in advertising practice and techniques or innovation as valuable materials for further research on the topic or relevant topics by both students and scholars.
1.5 RESEARCH QUESTION
The following research questions for the study are postulated:
1.6 RESEARCH HYPOTHESES
To direct the research focus, the following hypotheses were formulated using the null hypothesis.
Ho: There is no significant relationship between innovative advertising strategies and the Nigeria banking sector.
Ho: There is no significant relationship between customers’ reaction and the success of the banking sector.
Ho: There is no significant relationship between the role of advertising and boosting of banking image.
1.7 SCOPE OF THE STUDY
To some extent, this study will basically focus on the application of innovative advertising strategies to ensure the growth and development of the banking industry in Nigeria.
The area of dimension or geographical coverage is limited to selected commercial banks in general and Unity bank (Port Harcourt) in particular.
1.8 LIMITATION OF THE STUDY
Several factors were at play to limit research project during the time or composition. The challenges encountered include:
1.9 DEFINITION OF TERMS
Some key terminologies in the study that require specific definition are;
ADVERTISING: This is relatively indirect persuasion based on information about product and product benefits which is designed to create favourable mental impression in the minds of consumers in order to attract patronage.
BRAND: Product manufactured by a company under a particular name.
GLOBALIZATION: Technological based advancement development that enables business transactions over long distances thereby bridging geographical divides.
INFLUENCE: The effect of advertising on decision of consumers especially informational purchase motivation. Consumers positive disposition towards a good or service based on information gotten through advertisement.
INNOVATION: The conversion of new knowledge into new products and services. The process or act of introducing new ideas, device or methods.
BANKS: An establishment for the custody of loan, exchange, or issue of money, for the extension of credit and for facilitating the transmission of funds.
STRATEGIES: A careful plan or method for achieving a particular goal usually over a long period of time. The skill of making or carryout plans to achieve a goal.
MASS MEDIA: A medium of communication like radio newspaper or television, that is designed to reach the mass of the people.
SOCIAL MEDIA: Forms of electronic communication like websites for social networking and micro blogging, through which users create online communities to share information, ideas, personal messages, and other content (as videos)
INTERNET; An electronic communications network connects computer networks and organizational computer facilities around.