CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

for bank to survive in today’s growing dynamic highly competitive bank environment the marketing of the banking service is indeed inevitable so that they can serve its customers with a well tail over package and creating programme in order to meet adequately the various needs of its customers and other company specific requirements.

Marketing starts when one social unit anticipates identifies and designs the feature of a product or services to march the need structure of other social units. These efforts are made with the intent to obtain a transaction between competent social units Okafor U. (1994:9)

The marketing concept as a management orientation according to Philip kofler holds that the key to achieving organization goal is imbibed in the organization determining the need and wants of target market undercutting itself to delivering the desired satisfaction more effecting and efficiently than its competitors. Bank marketing therefore could be described as the process through which banks affect and keep customers by designing and offering service and inventions that make banking advantages to those customers.

Marketing did not come into banks with “marketing concept but with the advertising and promotion concept.

Banks were facing increased completion and a few stinted to embark on aggressive advertising people to a bank in easy but converting them to loyal customers is difficult hence the interdiction of the marketing concept.

Here they had to formulate programmes to please these customers and in achieving this they tried to offer a veracity of financial and specialized service to them.

they used tried to install a lot of effective systems for efficient marketing analysis implementation and control (kotler, 1994: 28)

The central bank of Nigeria (CBN) has the responsibility of defining the requirements for the establishment of various classes of bank have on their own defined their service requirement some example are shown in the table over-leaf

TABLE OF SERVICE REQUIREMENTS

Name of bank Classification of services Nature of financial requirement Nature of services required

NAL merchant bank Whole sale banking Accept large deposits for major financiers Provisions of leans for long term projects and ensuring the service of such leans.

Nigeria bank for commerce and industry (NBC) financing and merchant banking Equity capital grant from federal government and CBN plus short falls on loans to small and medium seals enterprise Cranking of loans share under writing , project identification and feasibility studies.

Union bank of Nigeria plc Commercial Required to deposit 200,000,000,as capitalization fee Provision of loans and short term credit facilities the needing public

Nigeria industrial development bank Aiding industrial development Total assets are 50.4 billion naira Provides credit and other facilities to industries

First bank Nigeria plc Commercial Required to deposit 200,000,000 as capitalization fee. Provision of loans and short term credit facilities to the needing public.

Form this we discover that different kinds of banks provide different service and the service of commercials banks are unique because they meet the personal needs of their customers. It is an the strength of this uniqueness that a definition of commercial banks and their services will be given.

Commercial bank can be defined as those banks whose naira purpose is to grant short term loans to individuals grounds organizations and government agencies and channel them to more profitable investments (Okafor. U 1994 pg .10) commercial banks provide a wide range of service to their different customers. There service identified separately via the provision of satisfaction and they have the following characteristics.

(a) inseparability: The provider of each service cannot be separate from the service itself .

(b) perish ability: service cannot be stored till later without loss of revenue no matter have much business is generate on subsequent days.

(c) heterogeneity: The service differ since it is impossible for a customer to get the same level of service on each trip to his bank. This make it difficult for the bank to standardize each unit of the same service package to different customers.

(d) intangibility: these service rendered cannot be touched or felt. Through research discoveries commercial.

PROFILE OF UNION BANK OF NIGERIA PLC

Union bank of Nigeria plc was established as a commercial bank in Nigeria in 1917 with the name colonial bank. After a merger with some other banks in the union kingdom in 1925 the was christened “Bardays” bank dominion colonial overseas” other wise known as Bardays bank D.C.O. in 1969 the bank was legally incorporated in international limited of loudon and was renamed Bardays bank of Nigeria limited.

In 1978 due to some national and poetical restructure the bank assumed the new name union bank limited with its ownership structure at 80% Nigeria and 20% foreign. Bardays bank plc later divested it 20% equity share holding in the union bank of Nigeria limited by offering for sale its 50.8m ordinary share to the Nigeria public. Hence union bank is now 100 percent Nigeria owned. The company was converted to a public company in 1970 with all over her shares quoted on the Nigeria stock exchange. Due to some socio-political and economic changes in 1989, the banks name was changed to the present “UNION BANK OF NIGERIA PLC”

Union bank of Nigeria plc has its registered office of stallion plaza 36, marina Lagos. It currently has 28 branches and 11 area offices nationwide. The banks staff strength as at 30th September 1999, stood at 8,593 country wide. By the end of the 1999 financial year the bank deterred a profit after taste of # 3.1 billion showing as increase of 80% over the previous years sum of #1.7 billion. Similarly under the same period there was a remark improvement with the company’s total assets which stood at # 126.2 billion. The bank, till date remains the most capitalized in the industry with its come capital at # 7.6 billion, an on salvation that corroborates the banks robustness and its ability to balance back from any adversity. Union bank of Nigeria Plc provides a full range of normal commercial banking services. As a financial service conglomerate, the bank operates a merchant banking outfit recently represented union merchant bank limited and the primary mortgage institution known as union house savings and loans LTD. In addition, it operates an international money transfer service called rage

To achieve a, corporate repositioning that will match the new millennium, Union bank of Nigeria Plc and re-equipping of its staff and branches to fit into the new culture of technologically driven, anywhere banking. It is this need to be customer – focuses more flexible that the bank embarked, in 1999, its business process improvement. (BPI) project code-named the stallion- 2000 project. These positive indices underscore the public confidence in the bank in discharging its care functions under high conditions of risk and banking fragility. Banks have come to realize that they can only remain in business, profitability if they give to the custom what he wants, when he want it and at an affordable competitive price. According customer need to be informed and convinced that a persecutory bank has facilities that help provide extra ease and comfort to customers. For instance, most banks provide computerized identity cards through which customers could withdraw money even from far off locations bank office. Some commercial bank also have introduced weekend (Saturday) banking as extra services to their customers. They as well make their interest rate flexible for certain categories of customers.