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Academic Research Materials

A CRITICAL STUDY OF THE IMPACT OF STRATEGIC MARKETING 

IN NIGERIAN BANKING INDUSTRY

A THESIS FORMAT

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ABSTRACT

BLANK
 CHAPTER ONE 
INTRODUCTION
1.1 Background of the Study
To   survive   in   these   time   of   rapidly   changing   business   eliminate 
aggravated   by   deregulation   and   technological   break   through   innovation 
coupled with the very high awareness of the customer and stiff competition 
among   banks,   the   adoption   of   an   effective   strategy   marketing   will   come   in 
handy and help in the marketing of its services to attract patronage from the 
customers.   Marketing   is   the   business   function   used   to   identify   unfulfilled 
needs and wants and then defines and measure the magnitude at which to 
save these markets and cell upon everyone in the organisation to think and 
serve   the   customers.   It   basically   includes   getting   good   and   services   to   the 
final customer satisfactorily. Marketing in banking services is quite recently 
because it used to be ignore and only seen with a little level of importance.  
Traditionally, marketing was seen or regarded as not requiring adequate 
attention or planning and so was neglected. Due to few numbers of banks, the 
competition or rivalry was not stiff and so, banks did not utilise aggressive 
marketing. But all has changed because of the growing level of competition 
brought   about   by   deregulation   and   the   level   of   technological   innovation. 
Banks are no acquiring skills for aggressive and dynamic marketing or even 
resorting   to   employing   or   constructing   external   consultants.   Strategic 
planning and marketing in these banking services is now very indispensable 
in this era of competitive banking. The banking services are rapidly changing 
worldwide and gone is the era of iron­chair banking. The level of intensity of 
competition   in   this   industry   couple   with   the   financial   sophistication   of 
company   has   necessitated   the   development   and   adoption   of   the   best 
marketing   strategic   which   should   include   all   levels   of   employees   in   the 
organisation. If the bank must meet all the various challenges now and in the 
twenty   –one   century,   it   must   evolve   a   very   sound,   effective   and   efficient 
marketing strategy with the customer as the major focus.
To appreciate bank marketing better it scope and definition should be 
considered. According to Kotler (2005), marketing is a social and managerial 
process   by   which   individuals   and   group   obtain   what   they   need   and   want 
through   creating   and   exchanging   product   and   value   with   other.   Banking 
marketing can therefore be defined as the creation and delivery of services to 
satisfy the customers need at a profit to the bank. From the above definition it 
is obvious that the customer is and should be at the forefront in terms of the 
banks planning and corporate thinking. The customer is the life of a business 
as   an   organisation   can   not   be   talking   of   profit   without   considering   the 
people’s patronage that yields that profit. If the marketer is focus is not on the 
customer   the   application   of   the   marketing   technique   could   result   in   only 
temporary and limited effect.   The strategies or corporate planner, therefore 
has to take cognizance that the survival of  the business rests solely an or 
importance of marketing to the banking services cannot be overestimated.
1.2 Statement of the Problem 
Customers   confidence   and   trust   in   banks   has   been   eroded   with   the 
pervading   problems   of   distress   in   the   Nigerian   banking   sector.   The   stiff 
competition   among   banks   call   for   the   need   to   apply   or   embrace   strategic 
marketing   with   a   view  to   attract   new   customers   and   retain   old   customers. 
Bank strategic marketing is indispensable to economic stability and the day­
to­day running of business organisations. A strategic approach is thus seen 
as crucial and essential to the survival and growth of any organisation. 
1.3 Aim and Objectives of the Study
The aim of this study is to examine the impact of strategic marketing in 
Nigerian banking industry. The objectives of this study are as follows:
1. To explain what is meant by marketing and strategic marketing 
2. To   ascertain   the   extent   to   which   Nigerian   banks   apply   strategic 
marketing in their operations.
3. To describe the processes of strategic marketing in banking operations.
4. To highlight the benefits of strategic marketing in banking operations.
5. To   identify   and   explain   the   problems   encountered   by   banks   in   the 
application of strategic marketing.
6. To make recommendations as to how strategic marketing can continue 
to make meaningful contributions to bank’s performance and the overall 
growth and development of Nigerian economy. 
1.4 Significance of the Study
This study is significant not only to corporate planner’s bank marketers, 
researcher and students but also stimulate interest among policy makers. 
i.  It will promote and enhance corporate image, customer satisfaction and 
confidence in banking industry.
ii.  Promote organisational performance (productivity profitability and social 
responsibility.
iii.  It will serve as a reference to other researchers carrying out research on 
communication   role,   problems   and   resolution   of   conflict   in   business  
development.
a. Research Questions 
In order to carry out this study, the following questions are raised:
i) What is marketing and strategic marketing?
ii) What are the processes of strategic marketing?
iii) What is bank marketing?
iv) What   are   the   benefits   of   the   application   of   strategic   marketing   to 
banking operations?
v) What are the problems of strategic marketing in banking operations?
1.6 Scope of the Study
 The scope of this study is to examine the impact of strategic marketing 
on Nigerian banking Industry using Intercontinental Bank Plc as a case study 
(2002 – 2006). The study also covers 
1.7 Limitations of the Study
The limitations of this study  will include:
1. Fear of espionage: This informs the lukewarm attitude on the part of 
bank   workers   in   this   era   of   re­capitalisation,   distress,   mergers   and 
acquisitions   and   consolidation.   The   fear   of   not   divulging   strategic 
information   to   competitors,   as   they   do   not   know   the   true   picture   or 
identity of the researcher so as not to play to the hands of an industrial 
spy.
2. Hectic nature of bank work makes it tedious sometime to even attend to 
personal   matters   not   to   even   talk   of   attending   to   researcher’s   oral 
interview or getting a questionnaire filled. Because of the nature of work 
of bank workers and the hectic life of Lagos, the researcher’s have to pay 
several visits to the respondents of the bank in their various branches.
3. Failure to return some of the questionnaires despite several calls.
4. Improper  filling   of   some   questionnaires,   which   invariably  render  their 
usage for the study useless.
5. Finance and time are also another constraints to this study because of 
increased transportation costs as a result of hike in fuel price.
6. Some respondents even complained of the need to get permission from 
their   superior   before   they   can   interact   with   any   researcher   as   their 
organisation considers all information as “top secret”.
Despite   these   limitations,   through   good   human   relations   and   friends 
sufficient data was obtained in carrying out a meaningful research. 
1.8 Study Plan
This   project   is   divided   into   five   chapters.   Chapter   one   is   the 
introduction, which is made up of background, research problem, aim and 
objectives, significance, research questions, scope, limitations and study plan. 
Chapter two is the literature review which consists definitions of marketing 
and   strategic   marketing,     importance   of   strategic   marketing,   processes   of 
strategic   marketing,   effect   of   strategic   marketing   on   employees,   bank’s   top 
level   managers,   decision   makers   and   the   economy,   problems   of   strategic 
marketing.  
Chapter   three   is   research   methodology,   which   comprised   of   historical 
background of Intercontinental Bank Plc, research hypothesis, method of data 
collection,   population   and   sample   size,   sampling   technique,   and   method   of 
data analysis. Chapter four is data presentation and analysis while chapter 
five is summary, conclusion and recommendations.

CHAPTER TWO
LITERATURE REVIEW
2.1 Definition of Marketing And Strategy Marketing 
Marketing is the business function that identifies unfulfilled needs and 
wants,   defines   and   measures   their   magnitude   product,   services   and 
programmes   to   serves   these   market   and   customers.   Marketing   therefore 
means   different   things   to   different   peoples,   while   many  people   believe   that 
marketing   is   entirely   selling,   other   believe   it   includes   advertising,   another 
group   sees   marketing   as   distribution   while   others   believes   marketing 
comprises of the activities going on the market. However, each view might not 
be   entirely   wrong,   it   only   connotes   a   wider   and   deeper   explanation   than 
theories expressed. In fact, marketing encompasses more activities than most 
people realise. Based on the view of many authors and distinct scholar on the 
field of marketing different definition was given, but all the definition focus on 
the main core concept which is the consumers. According to Pride and Ferrel 
(1993)   defined   marketing   as   the   consists   of   individual   and   organisational 
activities   that   facilitate   and   expedite   satisfying   exchange   relationship   in 
dynamic   environment   through   the   creation   distribution,   promotion   and 
pricing of goods and services and ideas. Another definition of marketing by 
Mccarthy   (1996)   brought   in   the   objectives   of   marketing   activities,   that   is, 
marketing is the performance of business activities which direct the flow of 
good from the producer to the consumer or user in order to satisfy customers 
and accomplish the company’s objective. 
The   concept   of   bank   marketing   has   been   defined   by   various   bank 
marketers as that part of management that seeks to direct the flow of banking 
services profitably to selected customers. Banking marketing is an activities of 
relatively recent origin and this is not surprising since marketing itself is, as 
oppose to sales concept, also relatively news, Nwanko defined marketing as 
the   set   of   activities   that   facilitates   exchange   transaction   for   the   ultimate 
purpose  of  satisfying human   needs.  From  the  definition  above,  a universal 
and widely acclaimed definition has been built to serve the purpose of this 
study.   This  all  embracing definition   was  given  by  Deryk   Weyer  of   Barclay’s 
bank, one of the first senior bankers in England to recognise the importance 
of   marketing.   He   defines   bank   marketing   in   his   earnest   Eykes   memorial 
lecture of (1969) as:
a) Identifying the most profitable market now and in the future
b) Assessing present and future needs of the  customers
c) Setting   business   development   goals   and   marketing   plans   to   meet 
them
 d) Managing   the   various   services   and   promoting   them   to   achieve   the 
plans
In other words, marketing approach to banking services refers basically to 
four steps 
a. Research to determine customer’s financial requirement
b. Design new services or innovate old ones according to the finding
c. Marketer services to the customers for whom they were researched and 
designed (this include, pricing promotion, distribution at a profit)
d. In doing so, satisfy the customers financial needs.
Thus,   all   these   decision   must   be   evaluated   continually   if   the   total 
marketing programme is to succeed.
Strategic Marketing can be defined as the introduction of strategy and 
its imperatives in the application of marketing principles. Strategy is essential 
ingredient in attainment of marketing objectives. 
2.2 Marketing as Component of Bank Management its Functions and  
Objective.
Marketing is the one of the functions needed to be considered by the top 
management.   The   bank   majority   function   is   one   of   the   five   subsets   of 
management   controllable   variable   in   the   commercial   banks.   Bank 
management system is composed of fair major variables they are: (1) Bank 
objectives   (ii)   Bank   environment   (non   controllable   variables   (iii)   The 
controllable   management   variables   and   (iv)   Bank   organisation   and   control 
variables.   The   controllable   variables   are   decision   which   is   under   the 
jurisdiction of the management, that is, it is an internal variable, while the 
reverse   is   the   case   when   it   becomes   uncontrollable   ands   this   is   external 
variable to bank, example, the environment however for the purpose of this 
study   only   the   controllable   (within   the   management   influence)   facet   of   the 
management will be discussed:
 Marketing   objective   from   two   perspectives   i)   fixed   and   (ii)   flexible 
objectives, according to Arthur maiden:
i) Fixed objectives or Long run include the following:   profitability, increased 
marketing   share,   minimise   risk,   increase   range   of   services   to   stabilise 
revenue, developing bank image, spread customer types to minimize risk and 
business frustration.
ii) Flexible or Short run objectives are:
 increase /decreasing loans of certain types of customers
 increase/ decreasing deposits of certain kinds of customers
 return on investment
 direct customers to certain types of services/ products
The needs to maintain good business and public relations has made the 
general   banking   services   objectives   as   profit   sufficiently   high   to   protect 
depositors and shareholders. The return on investment require by the chief 
executive will influence the operational managements targets as will planned 
growth   and   size.   The   latter   is   more   competitive   advantage   than   economic 
lastly, he increased market share not only rings competitive advantages but 
also a large selected customers of the total market. 
The bank market function bases its attention on the following activities: 
i) Branch management, location and distribution
ii)  Customer’s behaviour, attitudes and segmentation 
iii)  Services product development and introduction 
iv)  Advertising , communication and publicity
v)  Defining marketing strategy administering and controlling the marketing 
programme and lastly.
vi)  Marketing   research   that   attempts   to   collect,   investigate   analysis   and  
interpreting market development
In each of the following six areas mentioned above so as to contribute 
maximally to the attainment of bank objectives in the light of existent non 
controllable factors and in the respect to the four other major functions of 
bank   management   enumerated   previously.   The   above   summarises   the 
marketing activities in a bank management system and how interrelated it is 
together   with   other   facet   of   management   controllable   to   achieve   the   banks 
objective. 
2.3 Bank Marketing Versus Good Marketing
What   is   bank?   Over   the   years,   it   has   been   difficult   task   to   find   an 
acceptable definition of bank. Thus the banking Act of 1969) defined banking 
as   the   business   of   receiving   monies   from   outside   sources   as   deposit 
irrespective of the payment if interest and the granting of money loans and 
acceptance   of   credits   or   purchase   of   bill   and   cheque   or   the   purchase   and 
sales   securities   for   the   account   of   loans   prior   top   their   maturity   or   the 
assumption of guarantees and other transactions as the commissioner may 
on the recommendation of the central bank, by order published in the Federal 
Gazette designated as banking service.
The distinct or difference between bank marketing and good marketing 
start from the views of point on the highlighted definition of bank or banker, 
the   basic   difference   lies   in   two   sided   nature   of   banking.   A   banker   has   to 
attract customers so as to sell deposits to the customers and needs to attract 
on influence the behaviour of the customers to buy loans and advance from 
them. But unlike other firms, the banks not only have to develop marketing 
strategies to all its services, it also have to develop these with which to buy. In 
goods marketing the producer have only to consider  the need of customer to 
buy the product, by looking at the main focus of banking marketing and good 
marketing   strategies   applicable   to   goods   marketing  could   be   applied   to   the 
bank, with the little or slight modification in some cases whether attracting 
deposit or granting a loan the bank is satisfying a need of the customers, just 
as the producer of goods is satisfying the needs of his buyer, looking at the 
difference between bank marketing and goods marketing, some questions can 
be raised  to expatiate an bank marketing. Does banking need to be sold? Do 
people not seek out a bank they require its services? These are the questions 
raised by Reckes two decades ago. No casual observer of the Nigeria economy 
will   fail   to   conclude   that   Nigeria   today   is   a   seller’s   market.   Therefore 
aggressive   marketing   is   imperative   to   enable   the   bank   attract   customer   to 
whom they can sell loans and advances.
2.4 Marketing For Customer: Industrial and Consumer
Basically,   there   are   five   types   of   bank   customers   they   are   private, 
commercial, industrial government and international customers. In satisfying 
the   categories   of   customers   through   marketing,   tow   methods   can   only   by 
used.   These   are   industrial   and   consumer   marketing.   That’s   any   method   of 
marketing depending on the degree of their operation.
2.4.1Industrial Marketing
However, the objectives of a bank is to make profit, thus the main factor 
here   is   that   the   bank   seek   to   direct   its   flow   of   services   profitabilities   but 
better   informed   customers.   The   element   of   personal   selling   as   opposed   to 
selling  through   advertising  or  other  communication   media,   based   on   small 
circle   of   the   customers   their   is   more   opportunity   and   more   need   for   an 
understanding of the way in which customers use product /services of the 
contribution, it makes to the profitability of his own business. Acquiring and 
satisfying a corporate customer require ranges of skills which differ in degree 
if   not   in   kind.   From   those   employed   in   attracting   an   satisfying   personal 
customers. The skills range from the ability to assemble analyse and interpret 
data from various source about a given market and the operation of a given 
company   within   the   market,   tendency   to   organise   and   apply   variety   of 
specialist   resources   to   satisfy   the   customer’s   requirement   at   an   acceptable 
rate of return better evaluation  of financial repair in comparism  of present 
with the past to project in the future. 

2.4.2Consumer Marketing
According to Colins and Nylon, early days of banking in the U.K, much 
emphasis   was   placed   on   attracting   and   serving   personal   customers.   The 
logical reason behind this is the categories of personal customers is the most 
conspicuous due to its extensive reliance in  medium advertisement so as to 
taps   the   grass   root   customer   and   also   this   is   the   categories   in   which 
marketing techniques are made progressive.
However, emphasis on personal customer also assists in building up a 
good image for the corporate sectors. Since each bank customers constitute 
the   corporate   sectors.   These   banks   offer   their   customers   in­term   of   their 
personal experience that will determine their decision on the choice of a bank 
for the corporate body. Furthermore, looking at the contribution of industrial 
and consumer marketing profitably, the formal contribution are more profits 
to the bank hence within small scope, but the largest proportion of bank staff 
are concerned with   customer. Because many techniques developed towards 
consumer can also be applied to industrial marketing. It includes marketing 
and   attitude   research   techniques,   method   of   new   services   product 
development,   packing   and   presentation,   marketing   segmentation   and   mass 
market communication. 

2.5 Reasons for Bank Marketing
Looking at the economy trend in Nigeria some will conclude that Nigeria 
today   is   a   seller’s   market.   It   is   a   place   where   problem   is   not   selling   but 
producing because anything and everything sell. Banking is not an exception 
one would therefore question the need for bank marketing since banking, like 
marketing or other business in the country is in a sellers market. As earlier 
mentioned that the banker attract customers from whom he can buy “deposit” 
and customers to whom he sell loan and advances within the excess liquidity 
it can therefore be said that the banks have failed in effective marketing, there 
is need for effective marketing to attract customers to whom they can sell loan 
and advance thus, mop up excess liquidity, competition is appearing  with the 
emergence   of   other   and   new   financial   institutions,   the   bank   industrial     in 
developing countries include Nigeria is characterised by the sales orientation 
this has been effective in enabling banks to make profit because they have 
operated in the context of a seller’s market in which the consumers have no 
choice.
Moreover,   as   the   economy   expands   and   develops,   new   horizons   will 
unfold, and new opportunities and challenges will open up that environment 
will   have   no   room   for   the   stagnant   banker   that   is   armchair   banker, 
hamstrung with age old traditions. The day will favour the progressive and 
dynamics banker who is improving his skills, all the time, which is constantly 
scanning   the   environment   and   identifying   customers   and   competing 
priorities. All these cannot be achieved without effective marketing. Assessing 
the development in banking sector, in the world, the advanced countries such 
as U.K and the United State of America, there is a mark of awareness among 
both customers and non customers about the services provided by the banks. 
If this is so in the developing countries like Nigeria can be better imagined 
than described.
Finally,   marketing   is   essential   not   only   because   if   the   existence   of 
competitors   but   also   because   of   the   existence   of   great   quantity   of   funds 
outside the banking system. To illustrate the very high percentage of currency 
outside the banks in relation to the total money supply. In Nigeria this is over 
80 percent compared with some 10 percent in some developed countries such 
as the united kingdom and United states. Besides it is far fetched to assume 
that   out   of   about   eighty­eight   million   (88million)   Nigerians   at   least   ten 
millions have N10,000 in their pocket at any point in time. If banks were to 
market   their   services   effectively,   such   that   these   people   are   persuaded   to 
deposit N10,000 each with the banks about N150million would be generated 
immediately,   given  a  credit   multiplier    to   create   credit  to  the   time   of  N150 
million it must yield profit. This is high contribution to economy hence it will 
fight inflation. 
In   conclusion,   the   emergency   of   the   fiancé   and   mortgage   houses 
compete highly with the commercial banks even to the extent that most of the 
services   rendered   by   commercial   banks   are   also   being   performed   by   these 
financial institutions and this shows that bank should embark on effective 
marketing of their services or products.
2.6 Strategy for Effective Bank Marketing
The   modern   day   banking   marketing   is   getting   more   dynamic   and 
sophisticated in terms of its competitiveness and general economic recession, 
that it has become  a question of not only the fittest can survive. According, 
effective marketing   must have its foundation in knowledge, in order to meet 
the prevailing problem. For effective marketing strategy, the bank must have 
the   knowledge   about   where   their   problems   or  what   to   develop   on,   without 
understanding  whether  he   has   the   natural   aptitude   or  gift   in   that  line     of 
endeavour. For example, the success of A in an activity does not guarantee the 
success   of   B   in   the   same   activity.   This   is   because   people   are   differently 
talented or gifted and not because people are differently talented or gifted and 
not because anyone is created to fail. People succeed very well if they can be 
able to study themselves to identify and act according to their natural talents 
or gifts.
Marketing, as a part of central course in management cannot be effect 
unless it derives from the corporate plan. Since corporate planning normally 
start with a position audit which identifies and appreciates the strength and 
weakness of the corporation, it follows that a strategy for effective marketing 
has to emate from the  position audit or psycho analysis of the business. The 
under­mentioned   figures   can   be   used   to   expatiate   on   strategy   for   effective 
marketing.   These   figure   are   summarized   in   1&2   respectively.   The   resource 
Bank Data as figure 1 clearly shows can be summarised in the word BEP. 
This   is   bank   resources   environment   and   psychology   of   finance   “Bank 
Resource”  is further explained and subdivided into CDAMi capital, Deposits, 
Assets and management. These constitute the psychoanalysis of the bank and 
summarises its strength and weakness. And all this implies is that effective 
marketing required a through knowledge of the legal requirement and of the 
significance and structure of bank capital. It also requires an analysis of the 
structure liquid and profitability of the bank or branch has to be praised in 
terms of motivation, orientation and development. This is important because 
banking in Nigeria as in many developing countries is facing two fundamental 
and   related   problems.   One   is   resistance   to       change   on   the   part   of   many 
within  the  industry,  and  the   other is  a lack  of  people   trained  in  the  skills 
required in the new situation. This there is no alternative to change and they 
has to be adaptation to changing requirement.
Environment   can   be   analysed   as   political   Economic   and   Financial 
environment PEF. Since politics is for power and power is require to acquire 
material resources, it means that the banker to be effective has to study and 
understand   the   political   structure,   the   government   structure,   the   political 
philosophy and the major critical political issues. The analysis of the political 
environment   will   throw   up   such   question   as,   is   the   government   structure 
unitary on a federation? What are the powers and limits of the sub­sectors? Is 
the   political   philosophy   dynamic,   progressive,   conservation   sovialist   or 
capitalist?   In   which   sectors   does   the   political   arrangement   permit   or 
encourage investment? Is there any policy of even development? What are the 
burring   or   critical   political   issues?   What   are   the   implication?   These   are 
related issues can only be ignored by any banker, indeed by corporate planner 
activists   to   his   utter   detriment.   After,   analysis   political   environment,   the 
economic   implication   is   also   imperative.   This   include   the   analysis   and   the 
implications of the topography of the economy. Its   resources and the location 
as   well   as   their   economic   significance,   the   main   economic   indicators   and 
sectors   and   the   critical   economic   issues.   Indeed   as   a   service   industry, 
banking   cannot   operate   in   vacuum.   The   economy   is   the   theatre   and   to 
effective marketing  is possible without this environmental appreciation.
The same thing also applies in the case of the financial system. Effective 
marketing requires a  through analysis of the money and capital market, the 
banking   system   and   central   banking   arrangement.   The   reason   for   this   are 
obvious, Such  analysis throw up the instrument of effective marketing or the 
existence or otherwise of money and capital money assets, competitive or rivet 
institutions in the existence of other banks, and other instruments, and  the 
prospects   and     limits   on   marketing   in   term   of   central   bank   directives, 
guidelines, supervision and controls.
Another very important information input in effective marketing is the 
psychology of finance, its significance derives from the fact that the resources 
may   be   there   and   the   environment   may   be   favourable   but   unless   the 
psychology is agreeable or permissive, not much can be done. This psychology 
can be BCE, business of banking; customer profile and environment inputs. 
Banking business requires a through knowledge of the objectives of the bank 
and conflicts in banking. Banking is a business and like any other business it 
has the interest of the shareholders. But it stick in trade and deposits which 
it has collected on the promise that they are repayable on demand or as agree 
after very short notice. Therefore, the banker must have maximum liquidity in 
the interest of its depositors, but there is the third objective the development 
of   the   economy  or  of   the   country   as   a   whole.   The   conflicts   in   these   three 
objectives   are   obvious,   project   that   guarantee   maximum   liquidity   cash   are 
barren   of   income   and   profit   –loans   and   advances   which   are   the     most 
profitable   to   bank   assets   are   usually   the   most   liquid.   Similarly   the   most 
profitable and apparently very liquid investment  in trading and commerce, for 
instance, this may contribute to the development of the economy while the 
projects which have the most development potential, such as investment in 
agriculture   and   medium   and   long   term   industrial   financing   may   appear 
unfavourable to established banking  Cannons and traditions. Alternatively, if 
the bank has attempted and successfully reconciled the three objectives, the 
marketing manager must equally understand and take into account how the 
conflicts  have been resolved. This,  of course,  has  a bearing on Head office 
directives   indeed,   the   strategist planner  or  marketing  manger can   never  be 
effective i he constantly flouts head office directive, likewise will the three C’S 
in   banking,   costs,   convenience   and   confidence.   The   marketing   manager 
cannot go on promising everything mindless of the cost and implications on 
his or the bank ability to deliver the goods. In finance, “my word is my bond” 
this means that the banker must live up to his promise and undertakings.
Finally,   the   customer   profile   and   the   environmental   inputs   need   to 
consider   when   analysis   the   psychology   of   finance,   that’s   the   attitudes   and 
outlooks, their turnover, idiosyncrasies and their gossip and on the part of 
the environmental inputs which is an understanding of the leading political 
and   economic   issues   at   any   point   in   time   and   government   thinking   and 
approach on ways and means of dealing with the issues.
In summary, therefore, effective marketing requires an effective resource 
management bank data. This is provided by the formular BEP­ CDAM+ PEF + 
BCE= total information inputs.
2.7 Bank Strategic Management and The Marketing Mix
On detecting that advertising is not synonymous with or a replacement 
for  marketing  bank   all   over   the   world   are   now   adopting   the   full   marketing 
concept, and also continuously bringing into focus, the need for application of 
the complete marketing mix of package, price, place and promotion.
Bank’s objective of promoting effective banking habit through effective 
marketing   of   their   services   can   be   meaningfully   achieved,   if   the   “4ps 
marketing strategy” is vigorously adopted. This implies that banks will have to 
come  up  with  appropriate  product  strategy, pricing strategy,  place strategy, 
promotion strategy (which are the components of the marketing strategy) and 
also implement such strategies very extensively. 
Product strategy: this lists the various services that a bank can provide 
and also spells out how the service would be performed in such a way that 
the   customer   would   derived   maximum   satisfaction   in   the   course   of   his” 
Consumption” of such services. An appropriate product strategy therefore will 
provide deposit and lending facilities in the most efficient way as perceived by 
customers. Furthermore, the strategy should make it easy for customers to: 
i. Withdraw money smoothly and quickly 
ii. Pay   in   money   within   to   make   his   monetary   transaction   by   using 
cheques rather than cash.
iii. Be more willing to make his monetary transaction by using cheques 
rather than cash.
iv. Know his regularly and correctly too.
However,   it   should   be   noted   that   information   and   innovation   should   be 
given   serious   consideration   by   banks   ion   the   implementation   of   an 
appropriate   product   strategy.   Example   of   such   automation   and   innovation 
include derives like, the magnetic ink character recognition (MCR); the card; 
fully   automated,   Branches;   Automated   teller   machines   (ATMs)   intelligent 
terminal etc.
An example of appropriate pricing strategy may involve a reduction in 
the   mark   up’   for  each   service   rendered.   Such  a   reduction   is   make­up   and 
could   lead   to   a   greater   compensatory   increase   in   the   demand   for   such 
services with the end result that the net profit on cash services or on the mix 
of services will increase. As a result of the foregoing, the overall marketing 
strategies will then need to be designed utilising pricing policy as essential 
ingredient to meet the needs of specific customer segments. Place strategy: 
the   choice   of   place   for   the   individual   bank   has   become   a   critical   strategic 
issue. Bank delivery systems can be classified according to size, type and the 
range   of   services   they   provide.   The   most   important   variants   are   the   fully 
services   branch,   fully   automated   branch,   thin   branch,   automated   teller 
machine, financial supermarket, department store and financial superstore.
In determine the place strategy, the bank must first evaluate its overall 
product   market   strategy   and   determine   the   most   appropriate   geographical 
coverage   and   outlet   type   to   meet   the   service   needs   of   its   serviced   market 
customer base. Care must also be taken to evaluate the future trends in those 
served market customer needs in various delivery system cost structure. The 
determination of specific outlet site should be done in a national manner, by 
evaluating   various   services   modes   and   estimating   the   economics   of   such 
alternatives. 
In   particular,   care   must   be   taken   not   to   treat   the   existing   branch 
network as an inflexible system which must be preserved at all costs. This 
might have and to agile competitors potentially gaining and using important 
cost   advantages   to   achieve   competitive   edge.   Promotion   strategy:   The 
promotion strategy can be otherwise referred to as communication strategy 
which   will   include   personal   selling,   advertising,   public   relation   and 
promotion. The personal selling element would involve greater use of account 
managers’ relationship mangers.
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Historical Profile of Intercontinental Bank Plc
Intercontinental Bank Limited, formerly Intercontinental Merchant Bank 
Limited, commenced operations in 1989. The bank is made up of a group of 
professionals   who   came   together   to   offer   excellent   and   innovative   banking 
service   to   its   numerous   clients.   Following   the   approval   granted   merchant 
banks wishing to convert to retail banking, intercontinental stunned market 
watches when in July 1999, it converted to a commercial bank. The decision 
was epoch­making, as already intercontinental has become one of the most 
diversified   financial   supermarkets   in   the   country.   Intercontinental   has 
continued to grow in size and strength. It has controlling shares in Equity 
Bank Limited. Intercontinental  Securities Limited (intersect)  and Associated 
Discount   House   Limited   (ADHC).   The   bank   boasts   of   the   best   information 
technology infrastructure in the banking sector till date. Enabling it provide 
real time online services in all intercontinental locations nation wide. It is on 
record that Intercontinental Diamond Fund, (IDF) which debuted in 1992, has 
a total portfolio in excess of N1.3billion. Other products provide by the bank 
include intercontinental valuable yield (IVY) account, corporate IDF and the 
banking on­site services (Boss) concept. Intercontinental Bank Limited report 
for the period ended 31st December 2000, shows asset soaring to N23.5billion 
from N16.3billon,  while shareholders fund attained a record high ofN2.8billon 
from N2.2billon previously. Gross earning improved by over N1billion mark, 
from   N4.2billion   to   N5.2billion   currently.   Profit   after   tax   exceeded   the 
N1billion   mark,   from   N600million   in   1999.   It   is   appropriating   the   sum   of 
N404.6million in dividend payment.
3.2 Research Hypothesis 
H0: Strategic marketing does not have impact on bank’s performance.
Hi: Strategic marketing have impact on bank’s performance.
3.3 Method of Data Collection 
The basic source of data collection for the purpose of this research work 
were primary data and secondary data.  Primary data was obtained through 
other   interview   and   in   questionnaire.   The   questionnaire   consists   of   20 
questions   which   are   divided   into   two   sections   namely   demographic   and 
strategic marketing. Secondray data made the use of principal textbooks on 
marketing   and   strategic   marketing,   journals,   bulletins,   magazines,   annual 
report and statement of accounts of Intercontinental Bank Plc. etc.
3.4 Population and Sample Size
The   population   of   this   study   is   made   up   of   all   the   workers   and 
customers of Intercontinental Bank Plc while the sample size is 200.
3.5 Sampling Technique
Simple random sampling technique was used to select the respondents 
among   staff   and   customers   of   the   bank   without   favour   or   bias   as   every 
member of the population has equal chance of being selected as respondent. 
3.6 Method of Data Analysis
Simple percentages and student ‘t’ test are used in analysing the data 
obtained   from   this   study.   The   ‘t’   test   was   used   to   test   the   hypothesis 
formulated. 
‘t’ – test formula
T = P – U 
U(1­U)
N – 1 
Where P = No of Affirmative response (Yes)
U = Population Proportion
N = Sample Size.
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Demographic Analysis 
TABLE 4.1 SEX 
SEX NUMBER OF RESPONDENTS % 
Male 122 61
Female 78 39
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.1 shows that males are 122(61%) while females are 78 (39%).
TABLE 4.2 AGE
AGE NUMBER OF  % 
RESPONDENTS
Below 25 ­ ­
25 – 35 Years 46 23%
36 – 45 Years 104 52%
46 – 55 Years  50 25%
56 Above ­ ­
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.2 reveals that 25­35years of age were 46 (23%), 36­45years were 
104 (52%), 46­55years were 50 (25%). The implication of this is that most of 
the workers falls within the productive ages of 25­45years.
TABLE 4.3: EDUCATIONAL QUALIFICATIONS
EDUCATIONAL  NUMBER OF  %
QUALIFICATIONS RESPONDENTS
WASC/ SSCE/GCE ­ ­
ND/HSC/NCE 30 15%
B.SC/HND 96 48%
M.SC, M.A, PhD 56 28%
Professionals   (ICAN,   ACIB,   CIS,  18 9%
MBA)
TOTAL  200 100
Sources: Researcher Field Survey (2007)

Table 4.3 shows that 30 (15%) were holders of ND/HSC/NCE, 96(48%) 
of   the   respondents   are   B.Sc/HND   holders,   56(28%)   have   post­graduate 
qualifications and 18(9%) have professional qualifications such as ACA, ACIB, 
MBA, CIS etc.
TABLE 4.4: POSITION/LEVEL OF OCCUPATION 
LEVEL  NUMBER OF  % 
RESPONDENTS
Management Staff 30 15%
Intermediate Staff 100 50%
Junior Staff 70 35%
Total  200 100
Sources: Researcher Field Survey (2007)

  Table 4.4 shows that 30(15%) of the total respondents are management 
staff,   100(50%)   intermediate   staff   while   the   remaining   70(35%)   are   junior 
staff. 
TABLE 4.5: LENGTH OF SERVICE
LENGTH OF  NUMBER OF  % OF RESPONDENTS
SERVICE RESPONDENTS
Below 5 Years 40 20%
5 – 10 Years 82 41%
10 – 15 Years 54 27%
15 & Above  24 12%
Total  200 100
Sources: Researcher Field Survey (2004)

Table 4.5 shows that 40(20%) of the member of staff have spent below 5 
years, 82(41%) have spent between 5 – 10 years, while 54(27%) have spent 10 
­ 15 years and 24(12%) have spent more than 15 years.
4.2 Strategic Marketing and Bank Performance Analysis 
Q 6: Are you satisfied with the strategic marketing process of the bank?
TABLE 4.6 WORKERS SATISFACTION AND STRATEGIC MARKETING PROCESS 
Option Responses  %
YES 172 86
NO 28 14
TOTAL 200 100
Sources: Researcher Field Survey (2004)

Table 4.6 reveals that 172 (86%) of the respondents were satisfied with the 
banks’ strategic marketing process while 28(14%) says No. The implication of 
this was that the improved performance of the bank was as a result of good 
strategic marketing process.
Q   7:  Does   strategic   marketing   helps   in   achieving   management   functions 
(planning, organizing, staffing, directing controlling and coordinating).
TABLE 4.7 STRATEGIC MARKETING AND MANAGEMENT FUNCTIONS
Option Responses  %
Strongly Agree (SA) 136 68
Agree (A) 46 23
Indifference (ID) 10 5
Disagree (D) 6 3
Strongly Disagree (SD) 2 1
Total 200 100
Sources: Researcher Field Survey (2004)

Table   4.7   shows   that   136   (68%)   strongly   agree   46   (23%)   agree   10   (5%) 
undecided 6 (3%) disagree and 2 (1%) strongly disagree respectively with the 
fact   that   strategic   marketing   helps   in   achieving   management   functions 
(planning, organising, staffing, directing, controlling and coordinating.
Q 8: Does strategic marketing that exist in the bank enables you to take part 
in the decision making process?
TABLE 4.8 STRATEGIC MARKETING AND DECISION MAKING
Option Responses  %
SA 130 65
A 52 26
ID 8 4
D 6 3
SD 2 1
Total 200 100
Sources: Researcher Field Survey (2007)

Table 4.8 indicates that strategic marketing that exist in the bank paves 
way for open door policy and ability to participate in decision­making. This is 
supported   by   their   responses   as   130(65%)   strongly   agree   52   (26%)   agreed 
8(4%) indifferent 6(3%) disagree and 2(1%) strongly disagree.
Q   9:    Does   effective   strategic   marketing   that   exist   in   the   bank   leads   to 
managerial efficiency?

TABLE 4.9 STRATEGIC MARKETING AND MANAGERIAL EFFICIENCY
Option Responses  %
SA 136 68
A 48 24
IN 8 4
D 6 3
SD 2 1
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.9 reveals that 136 (68%) strongly agree with the fact that effective 
strategic marketing that exist in the bank leads to managerial efficiency. 48 
(24%)   agree,   8(4%)   indifferent,   6(3%)   disagree   and   2(1%)   strongly   disagree. 
The implication of this responses is reflected the performance indicators of 
the bank which shows growth throughout in relation to gross earnings, loans 
and   advances,   investment   dividend,   profit   before   tax   profit   after  tax,   share 
price appreciation etc
Q 10:  Does strategic marketing helps in solving work problems encountered 
in the course of performing your duties.
TABLE 4.10 STRATEGIC MARKETING AND HARMONIOUS RELATIONSHIP 
Option Responses  %
SA 103 56
A 74 38
IN ­ ­
D 12 6
SD ­ ­
Total  200 100
Sources: Researcher Field Survey (2007)

Table   4.10  shows   that   103  (56%)   strongly  agree  that  strategic  marketing 
helps   in   solving   workplace   problems   and   promotion   of   harmonious 
relationship among the work force, 74 (38%) agree and 12(6%) disagree.
Q 11:  Does strategic marketing helps in creating mutual understanding and 
rapport between the members of staff management and customers?
TABLE 4.11 STRATEGIC MARKETING AND MUTUAL UNDERSTANDING 
Option Responses  %
SA 128 64
A 56 28
IN 6 3
D 10 5
SD ­ ­
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.11 indicates that 128(64%) strongly agree that strategic marketing 
helps in creating mutual understanding and rapport between the members of 
staff   management   and   customers,   56   (28%)   agree,   6(3%)   indifferent   and 
10(5%) disagree.
Q 12:  Do you always understand the content of what is strategic marketing 
entails?
TABLE 4.12 CONTENTS OF STRATEGIC MARKETING 
Option Responses  %
SA 140 70
A 50 25
IN 10 5
D ­ ­
SD ­ ­
Total  200 100
Sources: Researcher Field Survey (2007)

Table   4.12   shows   that   140(70%)   claimed   that   they   have   thorough 
understanding of what strategic marketing is all about that is why they are 
meeting their target, 50(25%) agree while 10(5%) are indifferent.
Q 13: Do you have foreknowledge on the application of strategic marketing in 
banking operation? 
TABLE 4.13 FOREKNOWLEDGE OF STRATEGIC MARKETING
Option Responses  %
SA 124 66
A 46 23
IN 8 4
D 10 5
SD 4 2
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.13 indicates that 124 (66%) strongly agree, 46(23%) agree, 8(4%) 
indifferent, 10(5%) disagree and 4 (2%) strongly disagree with the facts that 
they   always   have   foreknowledge   or   briefed   about   happenings   in   the 
organisation.
Q 14: Does strategic marketing lead to the achievement of bank’s objectives?
TABLE 4.14 STRATEGIC MARKETING AND BANK’S OBJECTIVES
Option Responses  %
SA 122 61
A 58 29
IN 10 5
D 10 5
SD ­ ­
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.14 indicates that 122 (61%) strongly agree that strategic marketing 
always lead to the achievement of the bank’s objectives, 58 (29%) agree, 10 
(5%) indifferent and 10(5%) disagree.
Q 15: Do your superiors encourage feedback?
TABLE 4.15 STRATEGIC MARKETING AND FEEDBACK
Option Responses  %
SA 92 46
A 60 30
IN 16 8
D 26 13
SD 6 3
Total  200 100
Sources: Researcher Field Survey (2007)

Table   4.15   reveals   that   92(46%)   and   60(30%)   respectively   strongly   agree 
and   agree   with   the   fact   that   superior   encourages   feedback,   16(8%)   were 
indifferent, and 26(13%) and 6(3%) respectively disagree and strongly disagree 
that   superior   wedge   their   authority   by   not   encouraging   feedback   when 
strategic marketing is applied in banking operations.
Q16:  Does   effective   strategic   marketing   led   to   increase   in   the   company’s 
profit?

TABLE 4.16 EFFECTIVE STRATEGIC MARKETING AND PROFIT
Option Responses  %
SA 120 60
A 58 29
IN 12 6
D 10 5
SD ­ ­
Total  200 100
Sources: Researcher Field Survey (2007)

Table 4.16 relates the importance of effective strategic marketing on profit 
120(60%)   and   58(29%)   strongly   agree   and   agree   respectively   that   effective 
strategic marketing lead to increase profit, 12(6%) were indifferent and 10(5%) 
disagree with the option that effective strategic marketing can led to increased 
profit.
Q17: Does Strategic marketing has impact on bank’s performance 
TABLE 4.17 IMPACT   OF   STRATEGIC   MARKETING   ON   BANK’S 
PERFORMANCE 
Option  Responses %
Yes 190 95
No 10 5
Total 200 100
Sources: Researcher Field Survey (2007)

Table   4.17   reveals   that   strategic   marketing   has   impact   on   the   bank’s 
performance as this accounted for the yearly increase in bank’s profit, total 
asset, dividend, gross earnings and shareholder’s funds.
4.3 Performance Indicators Analysis 
INTERCONTINENTAL BANK PLC
Fiscal year ending  2006  %  2005 %  2003 %  2002 
February 28 12mont change 12mont change 12months change 12mont
h hs hs
Income Statement 
Net Interest Income 17,420 47.3 11,826 75.7 6,730 19.6 5.6
Loan Loss provision 823 ­59.7 2,044 37.1 1,491 50.0 1.0
Net Funds 16,597 69.7 9,782 86.7 5,239 15.5 4.5
Total non­interest inco 15,272 24.1 12,308 55.5 7,917 84.0 4.3
Total non­interest 22,083 55.0 14,244 58.0 9,016 51.6 2.6
Pre Tax profit (loss) 10,263 25.9 8,150 87.6 4,345 65.6 2.6
After tax profit (loss) 7,561 23.5 6,121 83.4 3,338 65.0 2.0
Gross Earnings  41,039 26.3 32,491 53.2 21,204 46.0 14.7
BALANCE SHEET
Assets
cash   and   balances   with  107,115 35.9 78,838 91.5 41,174 214.0 13.1
other banks
Short­Term Investment 43,134 14.4 37,704 207.0 12,282 ­12.7 14.1
Loans and advances net 161,357 135.9 68,396 207.0 12,282 88.8 17.0
Total Earning Assets 357,838 80.6 198,111 113.2 32,076 55.9 59.2
Permanent Assets 11,395 105.8 5,536 24.0 4,464 12.5 4.0
Total Assets 369,233 81.3 203,647 110.4 96,786 50.9 64.1
Liabilities and Capital 
Total deposit liabilities 252,281 87.7 134,383 102.4 66,387 41.9 46.8
Total liabilities  313,898 87.4 167,459 95.9 85,478 56.0 54.8
Equity Stock 54,467 57.1 34,678 243.0 10,110 9.0 9.3
liabilities   and   equity  369,233 81.3 203647 110.4 96,786 50.9 64.1
stock

PERFORMANCE RATIOS
Fiscal Year Ending Feb. 28 2006  2005  2003  2002 
 (%) (%) (%) (%)
Asset quality
Gross loans and advance Nm 172,662 73,828 35,533 21
classified loan (Nm) 9,738 7,912 4,944 5
% of classified loans 5.6 10.7 13.9 24.0
loan   loss   res./classified  96.5 52.3 52.6 75.5
loans
classified loans/equity stock 17.9 22.8 48.9 60.7
Capital Adequacy 
Equity /Total assets 14.8 17.0 10.4 13.5
Equity/Loan and advances 33.8 50.7 31.5 50.0
Permanent Assets/Equity 20.9 16.0 44.2 46.8
Liquidity Ratios
Loans   &   Advances/Toal  43.7 33.6 33.1 27.0
Assets
Cash   &   Bank   Bal./Total  34.1 47.1 48.2 24.4
Liab.
Loans   &   Advances/Total  64.0 50.9 48.3 36.2
Deposits
Profitability Ratios
Pre­tax profit margin  25.0 25.1 20.5 17.9
return on total asset 2.1 3.0 3.5 3.1
return on equity 13.9 17.7 33.0 21.9
net interest margin 67.6 58.6 50.7 53.5
interest   income   /   loans   &  11.7 21.9 26.1 61.4
advance
interest paid/total deposits 3.3 6.2 9.9 10.3
operating   expenses/total  53.8 43.8 42.5 42.0
revenue 
Non­Interesting  37.2 37.9 37.3 28.9
Income/Total Rev
Pre­Tax   Prof.   Per   Employee  3.03 6.25 3.9 1.24
(Nm)
Staff Cost Per Employee (Nm) 2.59 3.21 2.5 1.10
Staff Costs/Gross Revenue 21.5 12.9 12.9 15.8

Intercontinental Bank Plc braced the challenges of its recapitalisation and 
subsequent acquisition of three other banks to sustain its upwardly growth 
trend. The successor bank risk management and profitability and sustain the 
unbroken   record   of   returns   to   shareholders,   three   key   challenges   that 
bedeviled the post­consolidation banking industry. Audited results of the post 
consolidation Intercontinental Bank Plc for the year ended February 28, 2006 
showed   appreciable   growths   on   the   top­line   and   the   bottom­line   while 
reducing risks associated with its expanding core banking operations.
Capital Adequacy 
Following   the   new   issues   and   consolidations   during   the   period,   group's 
paid   up   capital   tripled   to   N5.36billion   in   2006   as   against   N1.790billion   in 
2005. Outstanding paid up shares had risen from 3.59bilion shares by 2005 
year­end to 10.72billion share in 2006, largely due to public offer and new 
share issued to acquired bank shareholders' fund followed with an increase of 
57percent to N54.47billion in 2006 as against N34.68billion in 2005. Group 
balance sheet size expanded by 81percent to N369.23billion compared with 
N203.65bilion   in   2005   while   deposit   base   rose   by   88percent   from 
N134.38billion to N252.28billion in 2006. as total asset growth rate outpaced 
equity  funds,  the  proportion  of  equity  to assets   dropped  from  17percent  in 
2005 to 15percent. Branch expansion drive also saw the proportion of equity 
funds   tied   down   as   fixed   assets   to   21percents   in   2006   compared   with 
16percent in 2005. With  an increase of 136percent in loans and advances, 
equity finance in risk assets dropped from 51percent in 2005 to 34percent in 
2006.

Asset Quality 
Intercontinental Bank sustained its good asset quality profile during the 
year as proportion of bad loans to overall loan portfolio dropped to a low in 
spite of strong growth in loan assets. Gross loans and advances jumped by 
134percent   to   N172.7billion   in   2006   as   against   N73.8billion   in   2005   while 
classified loan lagged behind with 23percent growth from N7.9billion in 2005 
to N9.74billion in 2006. The proportion of classified loans to total loans has 
continuously dropped from 13.9percent in 2003 to 10.7percent in 2005 and 
closed 2005 at a low of 5.6percent. this, with growth in capital based, reduced 
the threat of non­performing loans to shareholders' fund from 49percent in 
2003 to 23percent in 2005 and lower at 18percent in 2006.
Profitability 
Group gross earning rose by 26percent to N41.04billion in 2006 compared 
with N32.49billion in 2005. this followed appreciable growths in core banking 
operations   and   other   operations.   Interest   income   had   grown   by   28percent 
from   N20.18billion   in   2005   to   N25.77billion   in   2006   while   non­interest 
earnings rose by 24perecnt from N12.31billion to N15.27billion. Consolidation 
costs kept operating expenses on the high side with an increase of 58percent 
in 2005 to N14.24bilion. the bank was however able to moderate operating 
costs   by   sourcing   cheaper   funds   as   interest   expense   dropped   from 
N8.35billion in 2006. this nudged the bottom­line as pre­tax profit rose by 
26percent   from   N8.15billion   in   2005   to   N10.26billion.   net   profit   grew   by 
24percent to N7.6billion in 2006 as against N6.12billion  in 2005. 
Key profitability ratios supported the growth outlook as net interest margin 
sustained   its   build   up   to   close   2006   at   67.6percent   compared   with 
58.6percent   and   50.7percent   in   2005   and   2003   respectively.   Pre­tax   profit 
margin also defended its momentum in spite of high operating expenses at 
25percent,   the   same   rate   in   2005,   4.5percentage   points   above   20.5percent 
recorded   in   2003.   average   cost   of   funds   halved   to   3.3percent   in   2006   as 
against 6.2percent in 2006, although average lending rate followed the trend 
at 16percent in 2006 compared with 29.5percent and 26percent in 2005 and 
2003 respectively.
Liquidity 
The   liquidity   position   of   the   bank   remained   within   acceptable   range, 
although slightly lower as cash retention failed to meet with rapid expansion 
in   liabilities.   Cash   and   bank   balances   as   a   proportion   of   total   liabilities 
dropped   to   34percent   in   2006   as   against   47percent   in   2005.   Risk   assets 
however constituted 44perent of total assets in 2006 as against 34percent and 
33percent in 2005 and 2003 respectively. Loans and advances/total deposits 
ratio rose from 51percent in 2005 to 64percent in 2006
The performance of the bank is commendable and set good outlook for the 
new   bank.   Synergies   from  the   business   combination   are   expected   to   really 
impact on performance in the on­going year, a situation that should see the 
bank with better performance this year. 
4.4 Testing of Hypotheses 
H0: Strategic marketing does not have impact on bank’s performance.
Hi:Strategic marketing have impact on bank’s performance.
The   hypothesis   was   test   using   the   responses   obtained   from   the 
respondents   student   “T”   teste   formula   of   hypothesis   was   used   a   95% 
confidential   interval.   Out   of   220   administered   questionnnaires;   200   was 
received and found useful for the study. Therefore, the sample size used waas 
200.
The   null   hypothesis   (H0)   was   subjected   to   test.   Alternative   hypothesis 
(H1) is accepted when H0 is rejected.
T =   P – U  P =  190
U(1 – U) 200 0.95
N – 1 U =  0.05
 = 0.95 – 0.05
200 ­ 1
= 0.90
0.05(0.95)
200 – 1
= 0.90
0.0475
199 = 3370.5
T = 3770.5
 Since the calculated ‘T” is greater than the tabulated T i.e. 1.96, then, 
we reject H0  and accept H1  that strategic  marketing have impact  on  bank’s 
perfformance.
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
The main focus of this study has been to examine the strategic marketing 
of   banking   services   by   pointing   out   reason.   Why   the   marketing   strategy 
should adopt its services. The main aim for the choice of this project topic as 
enunciated above is a sincere desire to have in debts insight into what type of 
marketing strategy adopt in banking sector.
The summary of findings are as follows:
­ That  strategic   marketing  has   impact   on   bank’s   performance   as   reveal 
from result  of “T” – test of 3770.5
­ That strategic marketing existence in th bank paves way for open door 
policy  foster friendship and good interpersonal relationship and sense of 
bleonging.
­ That   strategic   marketing   at   Intercontinental   Bank   Plc   leads   to 
managerial  efficiency.
­ That majority of the work foce has a thorough understanding of strategic 
marketing which in variably leads to credible perforamnce in terms of 
growth in  profit,   gross   earning,   dividends,   social   responsibility   (donation) 
and taxes to the  government.
­ That aggressive strategic marketing enables the bank to accomplishing 
their set  out objectives.
5.2 Conclusion
The objective of effective bank marketing can be summarised up as a new 
way of responding to new demand in the present day diverse market. And to 
contend with these diversities, bank manager must be dynamic and scientific 
by drastically after how they design, motivate, market and sell their services 
to the various type of their customers.
 Marketing in this stage of diversity means, more options for bank mangers 
in   term  of  services   and   choices.   For  instance,   less   perceived  differentiation 
among   similar   product   intensified   competition   with   promotional   efforts 
sounding   more   and   more   like   approaching   “masquerades”   in   the   market 
place, newly minted meaning forward, and phrases as bank marketers try to 
invest   differentiation,   disposal   information   as   to   customer   try   to   cope   with 
information   deluge   from   points   to   television,   computer   terminal,   telephone 
etc.
Customisation   by   users   of   flexible   inche   service   offerings   every   bit   as 
economic   as   the   total   services   available   changing   leverage   criteria   as 
economic of scale give way to economic of knowledge –knowledge of customers 
business,  of  current and  likely future technology trends  and of competitive 
environment   that   allows   the   rapid   development   of   new   services   changing 
company   structure   as   large   banks   continue   to   downsize   to   compete   with 
smaller   inches   players   like   Wema   bank   Plc   that   nibbles   at     their   markets. 
Finally, smaller banks needs fewer chances, for gigantism banks, bank like 
UBA   wins   in   mass   market,   but   more   opportunities   for   healthy   profit   in 
smaller market for smaller banks and that is why the rate at which smaller 
banks in the country are making profit faster than the larger banks year in 
year out.
5.3 Recommendations
After a consideration of bank marketing from the corporate planner view 
points and also establishing the necessity for such an approach, the following 
are crucial points to observe in effecting a sound effective strategies marketing 
in banking services.
Banks need to make their corporate planning division effectively function, 
so as better still, equip them by exposing the current staff of the division to 
the   principles   and   practise   of   strategic   marketing.   Such   training   could   be 
provided   by   local   experts   (private   consultant,   academician   from   university 
etc.) who will organise workshops of about week duration for such staff. 
Banks marketing plan should include proper identification of what really, 
motivates   the   customers.   And   the   attribute   that   future   conspicuously 
includes   banks   reputation,   location   availability  of   credit   friendness,   service 
changes, full service offering, special services, and pearking space.   
There   should   be   proper   organisational;   marketing   structure   in   the   bank 
that will cater property for planning, direction and controlling of marketing 
activities in the bank. 
A   look   at   the   trend   of   increase   in   financial   institutions   and   competition 
from   the   finance   houses   on   the   services   rendered   by   commercial   banks: 
Wema   bank   should   make   conscious   and   vigorous   marketing   research.   For 
objective of their search, certain questions were asked such as who are the 
customers?  What does the market buy? Why does the customer buy and how 
does   the   market   buy?   If   these   question   are   given   answer   to   and   proper 
research are carried out and analysed, this would give an insight on how to 
facilitate design services, relationship and bank recommendations.
Different forms of sales promotion and publicity should be carried out in 
the   rural   area   in   order  to   enhance   the   effectiveness   and   efficiency   of   their 
rural branches. These will attract more customers and improve the banking 
habit   of   the   rural   populace,   since   the   majority   of   them   engage   in   farming 
some agricultural enlightment programme   should be sponsored on how to 
improved   their   method   on   farming   thus   increasing     their   lowest   and 
subsequent   income.   Based   on   the   directive   of   the   C.B.N   that   certain 
percentage of loadable fund of the bank should go agriculture most especially 
to the rural area. The profitability and rural area. The profitability and invest 
must be ensured not only in term of repayment and interest but mobilisation 
of the surplus from the rural dwellers to the bank for investment.  
It should be noted that bank marketing is not limited only to the marketing 
manger. All the bank staff, from the board directors to the counter clerk and 
cleaners has the responsibility for selling the bank staff.
Finally,   bank   should   meaningfully,   design   and   implement   a   balance 
marketing   mix,   which   should   be   in   perfect   harmony   to   promote   effective 
banking habit in the country. And more so, it dealt to develop the marketing 
strategy within a strategic management framework.
 BIBLIOGRAPHY 
Intercontinental Bank Plc Annual Report and Statement of Accounts (2006)
Meidan A. Banking Marketing Management London: Macmillan 
Nwankwo G.O (1985), The Nigeria Financial System, London: Macmillan
Oliver .G (1990) Marketing Today, India, Prentice Hall.
Reckie W.G Marketing in Banking, the Banks Magazine.
Kotler .P. (1984) Marketing Management, Analysis Planning and Control India: 
Prentice  Hall 
Melver C. Naylor G.T. (1986) Marketing of Financial Services International of 
Banker
Hume D. (1980) Competition and Marketing Business Week.
Herberb et al (1987): Managment Policies for Commercial Bank  
Oyi. O(1987) Regional Banking and Economic Development in Nigeria
Cannot   D.   (1986)   Bank   Strategic   Management   and   Marketing:   USA:   John 
Wiley and  Sum.
 QUESTIONNAIRE
Faculty   of   Business   and   Social 
Sciences, 
Department   of   Business 
Administration,
University of Ilorin,
PMB 1515,
Ilorin, Kwara State

Dear Sir/ Madam,
QUESTIONNAIRE OF RESEARCH ON STRATEGIC MARKETING OF 
BANKING SERVICE IN NIGERIA
I am Adedeji Joseph Adeyemi a student of the above named institution 
writing   on   the   project   entitled:  The   Impact   of   Strategic   Marketing   on 
Nigerian   Banking   Industry   A   Case   Study   of   Intercontinental   Bank   Plc 
(2002 – 2006). The research work is in partial fulfilment of the requirements 
for the award of Postgraduate Diploma in Strategic Marketing. Be assured that 
the information supplied shall be treated with utmost confidentiality and shall 
be used for the purpose of this research alone. 
Thanks for your cooperation.
Yours Faithfully,
ADEDEJI JOSEPH ADEYEMI
SECTION A
Introduction: Please tick appropriate answer among alternatives provided.

Please answer the following questions by ticking (X) in the appropriate box.
1. SEX: MALE    (    )      FEMALE (    )
2. AGE: BELOW 25 YEARS (    )   25 ­35 YEARS  (     )
35­45 YEARS  (     )   45­55 YEARS  (     )  ABOVE 55 YEARS ()  
3. EDUCATIONAL QUALIFICATIONS: WASC/GCE(  ) ND/HSC/NCE(    )    
B.SC/HND (     ) M.SC, M.A Ph. D (     )  Professional ACA, ACIB, CIS, 
MBA,  MPA, MBF (   )
4. LEVEL OF OCCUPATIONS:  MANAGEMENT STAFF  (   )
INTERMEDIATE STAFF (   )   JUNIOR STAFF        (    )
5. LENGTH OF SERVICE:     BELOW 5 YEARS (   )   5­10 YEARS  (   )11­15 
YEARS         (   )  15 YEARS & ABOVE (   )
 SECTION B
Please read the following questions carefully and rate them according to 
how they apply to you. Tick (X) in the space below.
6. Are you satisfied with strategic marketing process of the bank? Yes( ) No( 
)
7. Does   strategic   marketing   helps   in   achieve   management   functions 
(planning,  organizing,   staffing,   directing,   controlling   and   coordination)? 
Strongly agree ()  Agree (       )     Indifferent (       ) Disagree (     ) Strongly 
disagree (   )
8. Does the strategic marketing that exists in bank enable you to take part 
in  decision making process? Strongly agree(    ) Agree(    )Indifferent (    )
Disagree ()   Strongly disagree  (     )
9. Does   effective   strategic   marketing   that   exist   in   the   bank   leads   to 
managerial  efficiency? Strongly agree (    ) Agree (    ) Indifferent   (         )
Disagree(     )  Strongly disagree  (     )
10. Does strategic marketing helps in solving work problems? Strongly agree 
() Agree  (    ) Indifferent (    )Disagree (     ) Strongly disagree  (     )
11. Does strategic marketing helps in creating mutual understanding and 
rapport  between members of staff, management and customers? Strongly 
agree (    ) Agree (  ) Indifferent (     ) Disagree (     ) Strongly disagree (   )
12. Do you understand the contents of strategic marketing? 
Strongly  agree   (   )Agree(        )         Indifferent(         )Disagree(           )Strongly 
Disagree ( ) 
13. Do you have foreknowledge about the application of strategic marketing 
in  banking operations? Strongly agree(    )Agree(    )Indifferent(    )Disagree 
()  Strongly Disagree (     )
14. Does strategic marketing lead to the achievement of bank’s objectives?
Strongly agree(    )Agree (    )Indifferent(    )Disagree(     )Strongly disagree 
(     )
15. Do   your   superiors   encourage   feedback?   Strongly   agree(         )   Agree(   ) 
Indifferent 
(        ) Disagree(     ) Strongly disagree(     )
16. Does   strategic   marketing   led   to   increase   in   the   company’s   profit? 
Strongly agree 
(    )Agree(    )Indifferent(         )Disagree(     ) Strongly disagree(     )
17. Does strategic marketing has impact on bank’s performance? Yes   ( 
) No ()
 CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
To survive in these time of rapidly changing business eliminate aggravated by
deregulation and technological break through innovation coupled with the very high
awareness of the customer and stiff competition among banks, the adoption of an
effective strategy marketing will come in handy and help in the marketing of its services
to attract patronage from the customers. Marketing is the business function used to
identify unfulfilled needs and wants and then defines and measure the magnitude at
which to save these markets and cell upon everyone in the organisation to think and serve
the customers. It basically includes getting good and services to the final customer
satisfactorily. Marketing in banking services is quite recently because it used to be ignore
and only seen with a little level of importance. Traditionally, marketing was seen or
regarded as not requiring adequate attention or planning and so was neglected. Due to
few numbers of banks, the competition or rivalry was not stiff and so, banks did not
utilise aggressive marketing. But all has changed because of the growing level of
competition brought about by deregulation and the level of technological innovation.
Banks are no acquiring skills for aggressive and dynamic marketing or even resorting to
employing or constructing external consultants. Strategic planning and marketing in these
banking services is now very indispensable in this era of competitive banking. The
banking services are rapidly changing worldwide and gone is the era of iron-chair
banking. The level of intensity of competition in this industry couple with the financial
sophistication of company has necessitated the development and adoption of the best marketing
strategic which should include all levels of employees in the organisation. If the bank must
meet all the various challenges now and in the twenty –one century, it must evolve a very
sound, effective and efficient marketing strategy with the customer as the major focus.
To appreciate bank marketing better it scope and definition should be considered.
According to Kotler (2005), marketing is a social and managerial process by which individuals
and group obtain what they need and want through creating and exchanging product and value
with other. Banking marketing can therefore be defined as the creation and delivery of services
to satisfy the customers need at a profit to the bank. From the above definition it is obvious that
the customer is and should be at the forefront in terms of the banks planning and corporate
thinking. The customer is the life of a business as an organisation can not be talking of profit
without considering the people’s patronage that yields that profit. If the marketer is focus is not
on the customer the application of the marketing technique could result in only temporary and
limited effect. The strategies or corporate planner, therefore has to take cognizance that the
survival of the business rests solely an or importance of marketing to the banking services
cannot be overestimated.
1.3 Statement of the Problem
Customers confidence and trust in banks has been eroded with the pervading problems
of distress in the Nigerian banking sector. The stiff competition among banks call for the need
to apply or embrace strategic marketing with a view to attract new customers and retain old
customers. Bank strategic marketing is indispensable to economic stability and the day-to-day
running of business organisations. A strategic approach is thus seen as crucial and essential to
the survival and growth of any organisation.
1.3 Aim and Objectives of the Study
The aim of this study is to examine the impact of strategic marketing in Nigerian
banking industry. The objectives of this study are as follows:
1. To explain what is meant by marketing and strategic marketing
2. To ascertain the extent to which Nigerian banks apply strategic marketing in their
operations.
3. To describe the processes of strategic marketing in banking operations.
4. To highlight the benefits of strategic marketing in banking operations.
5. To identify and explain the problems encountered by banks in the application of
strategic marketing.
6. To make recommendations as to how strategic marketing can continue to make
meaningful contributions to bank’s performance and the overall growth and
development of Nigerian economy.
1.4 Significance of the Study
This study is significant not only to corporate planner’s bank marketers, researcher and
students but also stimulate interest among policy makers.
i. It will promote and enhance corporate image, customer satisfaction and confidence in
banking industry.
ii. Promote organisational performance (productivity profitability and social
responsibility.
iii. It will serve as a reference to other researchers carrying out research on
communication role, problems and resolution of conflict in business development.
b. Research Questions
In order to carry out this study, the following questions are raised:
vi) What is marketing and strategic marketing?
vii) What are the processes of strategic marketing?
viii) What is bank marketing?
ix) What are the benefits of the application of strategic marketing to banking operations?
x) What are the problems of strategic marketing in banking operations?
1.6 Scope of the Study
The scope of this study is to examine the impact of strategic marketing on Nigerian
banking Industry using Intercontinental Bank Plc as a case study (2002 – 2006). The study also
covers
1.7 Limitations of the Study
The limitations of this study will include:
1. Fear of espionage: This informs the lukewarm attitude on the part of bank workers in
this era of re-capitalisation, distress, mergers and acquisitions and consolidation. The
 fear of not divulging strategic information to competitors, as they do not know the true
picture or identity of the researcher so as not to play to the hands of an industrial spy.
2. Hectic nature of bank work makes it tedious sometime to even attend to personal matters
not to even talk of attending to researcher’s oral interview or getting a questionnaire
filled. Because of the nature of work of bank workers and the hectic life of Lagos, the
researcher’s have to pay several visits to the respondents of the bank in their various
branches.
3. Failure to return some of the questionnaires despite several calls.
4. Improper filling of some questionnaires, which invariably render their usage for the
study useless.
5. Finance and time are also another constraints to this study because of increased
transportation costs as a result of hike in fuel price.
6. Some respondents even complained of the need to get permission from their superior
before they can interact with any researcher as their organisation considers all
information as “top secret”.
Despite these limitations, through good human relations and friends sufficient data was
obtained in carrying out a meaningful research.
1.8 Study Plan
This project is divided into five chapters. Chapter one is the introduction, which is made
up of background, research problem, aim and objectives, significance, research questions,
scope, limitations and study plan. Chapter two is the literature review which consists
definitions of marketing and strategic marketing, importance of strategic marketing, processes
of strategic marketing, effect of strategic marketing on employees, bank’s top level managers,
decision makers and the economy, problems of strategic marketing.
Chapter three is research methodology, which comprised of historical background of
Intercontinental Bank Plc, research hypothesis, method of data collection, population and
sample size, sampling technique, and method of data analysis. Chapter four is data presentation
and analysis while chapter five is summary, conclusion and recommendations.

CHAPTER TWO
 LITERATURE REVIEW
2.1 Definition of Marketing And Strategy Marketing
Marketing is the business function that identifies unfulfilled needs and wants, defines
and measures their magnitude product, services and programmes to serves these market and
customers. Marketing therefore means different things to different peoples, while many people
believe that marketing is entirely selling, other believe it includes advertising, another group
sees marketing as distribution while others believes marketing comprises of the activities going
on the market. However, each view might not be entirely wrong, it only connotes a wider and
deeper explanation than theories expressed. In fact, marketing encompasses more activities
than most people realise. Based on the view of many authors and distinct scholar on the field of
marketing different definition was given, but all the definition focus on the main core concept
which is the consumers. According to Pride and Ferrel (1993) defined marketing as the consists
of individual and organisational activities that facilitate and expedite satisfying exchange
relationship in dynamic environment through the creation distribution, promotion and pricing
of goods and services and ideas. Another definition of marketing by Mccarthy (1996) brought
in the objectives of marketing activities, that is, marketing is the performance of business
activities which direct the flow of good from the producer to the consumer or user in order to
satisfy customers and accomplish the company’s objective.
The concept of bank marketing has been defined by various bank marketers as that part
of management that seeks to direct the flow of banking services profitably to selected
customers. Banking marketing is an activities of relatively recent origin and this is not
surprising since marketing itself is, as oppose to sales concept, also relatively news, Nwanko
defined marketing as the set of activities that facilitates exchange transaction for the ultimate
purpose of satisfying human needs. From the definition above, a universal and widely
acclaimed definition has been built to serve the purpose of this study. This all embracing
definition was given by Deryk Weyer of Barclay’s bank, one of the first senior bankers in
England to recognise the importance of marketing. He defines bank marketing in his earnest
Eykes memorial lecture of (1969) as:
e) Identifying the most profitable market now and in the future
f) Assessing present and future needs of the customers
 g) Setting business development goals and marketing plans to meet them
h) Managing the various services and promoting them to achieve the plans
In other words, marketing approach to banking services refers basically to four steps
e. Research to determine customer’s financial requirement
f. Design new services or innovate old ones according to the finding
g. Marketer services to the customers for whom they were researched and designed (this
include, pricing promotion, distribution at a profit)
h. In doing so, satisfy the customers financial needs.
Thus, all these decision must be evaluated continually if the total marketing programme
is to succeed.
Strategic Marketing can be defined as the introduction of strategy and its imperatives in
the application of marketing principles. Strategy is essential ingredient in attainment of
marketing objectives.
2.2 Marketing as Component of Bank Management its Functions and Objective.
Marketing is the one of the functions needed to be considered by the top management.
The bank majority function is one of the five subsets of management controllable variable in
the commercial banks. Bank management system is composed of fair major variables they are:
(1) Bank objectives (ii) Bank environment (non controllable variables (iii) The controllable
management variables and (iv) Bank organisation and control variables. The controllable
variables are decision which is under the jurisdiction of the management, that is, it is an
internal variable, while the reverse is the case when it becomes uncontrollable ands this is
external variable to bank, example, the environment however for the purpose of this study only
the controllable (within the management influence) facet of the management will be discussed:
Marketing objective from two perspectives i) fixed and (ii) flexible objectives, according
to Arthur maiden:
i) Fixed objectives or Long run include the following: profitability, increased marketing share,
minimise risk, increase range of services to stabilise revenue, developing bank image, spread
customer types to minimize risk and business frustration.
ii) Flexible or Short run objectives are:
 increase /decreasing loans of certain types of customers
  increase/ decreasing deposits of certain kinds of customers
 return on investment
 direct customers to certain types of services/ products
The needs to maintain good business and public relations has made the general banking
services objectives as profit sufficiently high to protect depositors and shareholders. The return
on investment require by the chief executive will influence the operational managements
targets as will planned growth and size. The latter is more competitive advantage than
economic lastly, he increased market share not only rings competitive advantages but also a
large selected customers of the total market.
The bank market function bases its attention on the following activities:
i) Branch management, location and distribution
ii) Customer’s behaviour, attitudes and segmentation
iii) Services product development and introduction
iv) Advertising , communication and publicity
v) Defining marketing strategy administering and controlling the marketing programme
and lastly.
vi) Marketing research that attempts to collect, investigate analysis and interpreting
market development
In each of the following six areas mentioned above so as to contribute maximally to the
attainment of bank objectives in the light of existent non controllable factors and in the respect
to the four other major functions of bank management enumerated previously. The above
summarises the marketing activities in a bank management system and how interrelated it is
together with other facet of management controllable to achieve the banks objective.
2.3 Bank Marketing Versus Good Marketing
What is bank? Over the years, it has been difficult task to find an acceptable definition
of bank. Thus the banking Act of 1969) defined banking as the business of receiving monies
from outside sources as deposit irrespective of the payment if interest and the granting of
money loans and acceptance of credits or purchase of bill and cheque or the purchase and sales
securities for the account of loans prior top their maturity or the assumption of guarantees and
other transactions as the commissioner may on the recommendation of the central bank, by
order published in the Federal Gazette designated as banking service.
The distinct or difference between bank marketing and good marketing start from the
views of point on the highlighted definition of bank or banker, the basic difference lies in two
sided nature of banking. A banker has to attract customers so as to sell deposits to the
customers and needs to attract on influence the behaviour of the customers to buy loans and
advance from them. But unlike other firms, the banks not only have to develop marketing
strategies to all its services, it also have to develop these with which to buy. In goods marketing
the producer have only to consider the need of customer to buy the product, by looking at the
main focus of banking marketing and good marketing strategies applicable to goods marketing
could be applied to the bank, with the little or slight modification in some cases whether
attracting deposit or granting a loan the bank is satisfying a need of the customers, just as the
producer of goods is satisfying the needs of his buyer, looking at the difference between bank
marketing and goods marketing, some questions can be raised to expatiate an bank marketing.
Does banking need to be sold? Do people not seek out a bank they require its services? These
are the questions raised by Reckes two decades ago. No casual observer of the Nigeria
economy will fail to conclude that Nigeria today is a seller’s market. Therefore aggressive
marketing is imperative to enable the bank attract customer to whom they can sell loans and
advances.
2.4 Marketing For Customer: Industrial and Consumer
Basically, there are five types of bank customers they are private, commercial, industrial
government and international customers. In satisfying the categories of customers through
marketing, tow methods can only by used. These are industrial and consumer marketing. That’s
any method of marketing depending on the degree of their operation.
2.4.1 Industrial Marketing
However, the objectives of a bank is to make profit, thus the main factor here is that the
bank seek to direct its flow of services profitabilities but better informed customers. The
element of personal selling as opposed to selling through advertising or other communication
media, based on small circle of the customers their is more opportunity and more need for an
understanding of the way in which customers use product /services of the contribution, it
makes to the profitability of his own business. Acquiring and satisfying a corporate customer
require ranges of skills which differ in degree if not in kind. From those employed in attracting
an satisfying personal customers. The skills range from the ability to assemble analyse and
interpret data from various source about a given market and the operation of a given company
within the market, tendency to organise and apply variety of specialist resources to satisfy the
customer’s requirement at an acceptable rate of return better evaluation of financial repair in
comparism of present with the past to project in the future.

2.4.2 Consumer Marketing

According to Colins and Nylon, early days of banking in the U.K, much emphasis was
placed on attracting and serving personal customers. The logical reason behind this is the
categories of personal customers is the most conspicuous due to its extensive reliance in
medium advertisement so as to taps the grass root customer and also this is the categories in
which marketing techniques are made progressive.
However, emphasis on personal customer also assists in building up a good image for
the corporate sectors. Since each bank customers constitute the corporate sectors. These banks
offer their customers in-term of their personal experience that will determine their decision on
the choice of a bank for the corporate body. Furthermore, looking at the contribution of
industrial and consumer marketing profitably, the formal contribution are more profits to the
bank hence within small scope, but the largest proportion of bank staff are concerned with
customer. Because many techniques developed towards consumer can also be applied to
industrial marketing. It includes marketing and attitude research techniques, method of new
services product development, packing and presentation, marketing segmentation and mass
market communication.

2.5 Reasons for Bank Marketing

Looking at the economy trend in Nigeria some will conclude that Nigeria today is a
seller’s market. It is a place where problem is not selling but producing because anything and
everything sell. Banking is not an exception one would therefore question the need for bank
marketing since banking, like marketing or other business in the country is in a sellers market.
As earlier mentioned that the banker attract customers from whom he can buy “deposit” and
customers to whom he sell loan and advances within the excess liquidity it can therefore be
said that the banks have failed in effective marketing, there is need for effective marketing to
attract customers to whom they can sell loan and advance thus, mop up excess liquidity,
competition is appearing with the emergence of other and new financial institutions, the bank
industrial in developing countries include Nigeria is characterised by the sales orientation this
has been effective in enabling banks to make profit because they have operated in the context
of a seller’s market in which the consumers have no choice.
Moreover, as the economy expands and develops, new horizons will unfold, and new
opportunities and challenges will open up that environment will have no room for the stagnant
banker that is armchair banker, hamstrung with age old traditions. The day will favour the
progressive and dynamics banker who is improving his skills, all the time, which is constantly
scanning the environment and identifying customers and competing priorities. All these cannot
be achieved without effective marketing. Assessing the development in banking sector, in the
world, the advanced countries such as U.K and the United State of America, there is a mark of
awareness among both customers and non customers about the services provided by the banks.
If this is so in the developing countries like Nigeria can be better imagined than described.
Finally, marketing is essential not only because if the existence of competitors but also
because of the existence of great quantity of funds outside the banking system. To illustrate the
very high percentage of currency outside the banks in relation to the total money supply. In
Nigeria this is over 80 percent compared with some 10 percent in some developed countries
such as the united kingdom and United states. Besides it is far fetched to assume that out of
about eighty-eight million (88million) Nigerians at least ten millions have N10,000 in their
pocket at any point in time. If banks were to market their services effectively, such that these
people are persuaded to deposit N10,000 each with the banks about N150million would be
generated immediately, given a credit multiplier to create credit to the time of N150 million it
must yield profit. This is high contribution to economy hence it will fight inflation.
In conclusion, the emergency of the fiancé and mortgage houses compete highly with
the commercial banks even to the extent that most of the services rendered by commercial
banks are also being performed by these financial institutions and this shows that bank should
embark on effective marketing of their services or products.
2.6 Strategy for Effective Bank Marketing
The modern day banking marketing is getting more dynamic and sophisticated in terms
of its competitiveness and general economic recession, that it has become a question of not
only the fittest can survive. According, effective marketing must have its foundation in
knowledge, in order to meet the prevailing problem. For effective marketing strategy, the bank
must have the knowledge about where their problems or what to develop on, without
understanding whether he has the natural aptitude or gift in that line of endeavour. For
example, the success of A in an activity does not guarantee the success of B in the same
activity. This is because people are differently talented or gifted and not because people are
differently talented or gifted and not because anyone is created to fail. People succeed very
well if they can be able to study themselves to identify and act according to their natural talents
or gifts.
Marketing, as a part of central course in management cannot be effect unless it derives
from the corporate plan. Since corporate planning normally start with a position audit which
identifies and appreciates the strength and weakness of the corporation, it follows that a
strategy for effective marketing has to emate from the position audit or psycho analysis of the
business. The under-mentioned figures can be used to expatiate on strategy for effective
marketing. These figure are summarized in 1&2 respectively. The resource Bank Data as figure
1 clearly shows can be summarised in the word BEP. This is bank resources environment and
psychology of finance “Bank Resource” is further explained and subdivided into CDAMi
capital, Deposits, Assets and management. These constitute the psychoanalysis of the bank and
summarises its strength and weakness. And all this implies is that effective marketing required
a through knowledge of the legal requirement and of the significance and structure of bank
capital. It also requires an analysis of the structure liquid and profitability of the bank or branch
has to be praised in terms of motivation, orientation and development. This is important
because banking in Nigeria as in many developing countries is facing two fundamental and
related problems. One is resistance to change on the part of many within the industry, and the
other is a lack of people trained in the skills required in the new situation. This there is no
alternative to change and they has to be adaptation to changing requirement.
Environment can be analysed as political Economic and Financial environment PEF.
Since politics is for power and power is require to acquire material resources, it means that the
banker to be effective has to study and understand the political structure, the government
structure, the political philosophy and the major critical political issues. The analysis of the
political environment will throw up such question as, is the government structure unitary on a
federation? What are the powers and limits of the sub-sectors? Is the political philosophy
dynamic, progressive, conservation sovialist or capitalist? In which sectors does the political
arrangement permit or encourage investment? Is there any policy of even development? What
are the burring or critical political issues? What are the implication? These are related issues
can only be ignored by any banker, indeed by corporate planner activists to his utter detriment.
After, analysis political environment, the economic implication is also imperative. This include
the analysis and the implications of the topography of the economy. Its resources and the
location as well as their economic significance, the main economic indicators and sectors and
the critical economic issues. Indeed as a service industry, banking cannot operate in vacuum.
The economy is the theatre and to effective marketing is possible without this environmental
appreciation.
The same thing also applies in the case of the financial system. Effective marketing
requires a through analysis of the money and capital market, the banking system and central
banking arrangement. The reason for this are obvious, Such analysis throw up the instrument
of effective marketing or the existence or otherwise of money and capital money assets,
competitive or rivet institutions in the existence of other banks, and other instruments, and the
prospects and limits on marketing in term of central bank directives, guidelines, supervision
and controls.
Another very important information input in effective marketing is the psychology of
finance, its significance derives from the fact that the resources may be there and the
environment may be favourable but unless the psychology is agreeable or permissive, not much
can be done. This psychology can be BCE, business of banking; customer profile and
environment inputs. Banking business requires a through knowledge of the objectives of the
bank and conflicts in banking. Banking is a business and like any other business it has the
interest of the shareholders. But it stick in trade and deposits which it has collected on the
promise that they are repayable on demand or as agree after very short notice. Therefore, the
banker must have maximum liquidity in the interest of its depositors, but there is the third
objective the development of the economy or of the country as a whole. The conflicts in these
three objectives are obvious, project that guarantee maximum liquidity cash are barren of
income and profit –loans and advances which are the most profitable to bank assets are usually
the most liquid. Similarly the most profitable and apparently very liquid investment in trading
and commerce, for instance, this may contribute to the development of the economy while the
projects which have the most development potential, such as investment in agriculture and
medium and long term industrial financing may appear unfavourable to established banking
Cannons and traditions. Alternatively, if the bank has attempted and successfully reconciled the
three objectives, the marketing manager must equally understand and take into account how the
conflicts have been resolved. This, of course, has a bearing on Head office directives indeed,
the strategist planner or marketing manger can never be effective i he constantly flouts head
office directive, likewise will the three C’S in banking, costs, convenience and confidence. The
marketing manager cannot go on promising everything mindless of the cost and implications
on his or the bank ability to deliver the goods. In finance, “my word is my bond” this means
that the banker must live up to his promise and undertakings.
Finally, the customer profile and the environmental inputs need to consider when
analysis the psychology of finance, that’s the attitudes and outlooks, their turnover,
idiosyncrasies and their gossip and on the part of the environmental inputs which is an
understanding of the leading political and economic issues at any point in time and government
thinking and approach on ways and means of dealing with the issues.
In summary, therefore, effective marketing requires an effective resource management
bank data. This is provided by the formular BEP- CDAM+ PEF + BCE= total information
inputs.
2.7 Bank Strategic Management and The Marketing Mix
On detecting that advertising is not synonymous with or a replacement for marketing
bank all over the world are now adopting the full marketing concept, and also continuously
bringing into focus, the need for application of the complete marketing mix of package, price,
place and promotion.
Bank’s objective of promoting effective banking habit through effective marketing of
their services can be meaningfully achieved, if the “4ps marketing strategy” is vigorously
adopted. This implies that banks will have to come up with appropriate product strategy,
pricing strategy, place strategy, promotion strategy (which are the components of the marketing
strategy) and also implement such strategies very extensively.
Product strategy: this lists the various services that a bank can provide and also spells
out how the service would be performed in such a way that the customer would derived
maximum satisfaction in the course of his” Consumption” of such services. An appropriate
product strategy therefore will provide deposit and lending facilities in the most efficient way
as perceived by customers. Furthermore, the strategy should make it easy for customers to:
v. Withdraw money smoothly and quickly
vi. Pay in money within to make his monetary transaction by using cheques rather than
cash.
vii. Be more willing to make his monetary transaction by using cheques rather than cash.
viii. Know his regularly and correctly too.
However, it should be noted that information and innovation should be given serious
consideration by banks ion the implementation of an appropriate product strategy. Example of
such automation and innovation include derives like, the magnetic ink character recognition
(MCR); the card; fully automated, Branches; Automated teller machines (ATMs) intelligent
terminal etc.
An example of appropriate pricing strategy may involve a reduction in the mark up’ for
each service rendered. Such a reduction is make-up and could lead to a greater compensatory
increase in the demand for such services with the end result that the net profit on cash services
or on the mix of services will increase. As a result of the foregoing, the overall marketing
strategies will then need to be designed utilising pricing policy as essential ingredient to meet
the needs of specific customer segments. Place strategy: the choice of place for the individual
bank has become a critical strategic issue. Bank delivery systems can be classified according to
size, type and the range of services they provide. The most important variants are the fully
services branch, fully automated branch, thin branch, automated teller machine, financial
supermarket, department store and financial superstore.
In determine the place strategy, the bank must first evaluate its overall product market
strategy and determine the most appropriate geographical coverage and outlet type to meet the
service needs of its serviced market customer base. Care must also be taken to evaluate the
future trends in those served market customer needs in various delivery system cost structure.
The determination of specific outlet site should be done in a national manner, by evaluating
various services modes and estimating the economics of such alternatives.
In particular, care must be taken not to treat the existing branch network as an inflexible
system which must be preserved at all costs. This might have and to agile competitors
potentially gaining and using important cost advantages to achieve competitive edge.
Promotion strategy: The promotion strategy can be otherwise referred to as communication
strategy which will include personal selling, advertising, public relation and promotion. The
personal selling element would involve greater use of account managers’ relationship mangers.
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Historical Profile of Intercontinental Bank Plc
Intercontinental Bank Limited, formerly Intercontinental Merchant Bank Limited,
commenced operations in 1989. The bank is made up of a group of professionals who came
together to offer excellent and innovative banking service to its numerous clients. Following
the approval granted merchant banks wishing to convert to retail banking, intercontinental
stunned market watches when in July 1999, it converted to a commercial bank. The decision
was epoch-making, as already intercontinental has become one of the most diversified financial
supermarkets in the country. Intercontinental has continued to grow in size and strength. It has
controlling shares in Equity Bank Limited. Intercontinental Securities Limited (intersect) and
Associated Discount House Limited (ADHC). The bank boasts of the best information
technology infrastructure in the banking sector till date. Enabling it provide real time online
services in all intercontinental locations nation wide. It is on record that Intercontinental
Diamond Fund, (IDF) which debuted in 1992, has a total portfolio in excess of N1.3billion.
Other products provide by the bank include intercontinental valuable yield (IVY) account,
corporate IDF and the banking on-site services (Boss) concept. Intercontinental Bank Limited
report for the period ended 31st December 2000, shows asset soaring to N23.5billion from
N16.3billon, while shareholders fund attained a record high ofN2.8billon from N2.2billon
previously. Gross earning improved by over N1billion mark, from N4.2billion to N5.2billion
currently. Profit after tax exceeded the N1billion mark, from N600million in 1999. It is
appropriating the sum of N404.6million in dividend payment.
3.2 Research Hypothesis
H0 : Strategic marketing does not have impact on bank’s performance.
Hi : Strategic marketing have impact on bank’s performance.
3.3 Method of Data Collection
The basic source of data collection for the purpose of this research work were primary
data and secondary data. Primary data was obtained through other interview and in
questionnaire. The questionnaire consists of 20 questions which are divided into two sections
namely demographic and strategic marketing. Secondray data made the use of principal
textbooks on marketing and strategic marketing, journals, bulletins, magazines, annual report
and statement of accounts of Intercontinental Bank Plc. etc.
3.4 Population and Sample Size
The population of this study is made up of all the workers and customers of
Intercontinental Bank Plc while the sample size is 200.
3.5 Sampling Technique
Simple random sampling technique was used to select the respondents among staff and
customers of the bank without favour or bias as every member of the population has equal
chance of being selected as respondent.
3.6 Method of Data Analysis
Simple percentages and student ‘t’ test are used in analysing the data obtained from this
study. The ‘t’ test was used to test the hypothesis formulated.
‘t’ – test formula
T= P–U
U(1-U)
N–1
Where P = No of Affirmative response (Yes)
U= Population Proportion
N= Sample Size.
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Demographic Analysis
TABLE 4.1 SEX
SEX NUMBER OF RESPONDENTS %
Male 122 61
Female 78 39
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.1 shows that males are 122(61%) while females are 78 (39%).
TABLE 4.2 AGE
AGE NUMBER OF RESPONDENTS %
Below 25 - -
25 – 35 Years 46 23%
36 – 45 Years 104 52%
46 – 55 Years 50 25%
56 Above - -
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.2 reveals that 25-35years of age were 46 (23%), 36-45years were 104 (52%), 46-
55years were 50 (25%). The implication of this is that most of the workers falls within the
productive ages of 25-45years.
TABLE 4.3: EDUCATIONAL QUALIFICATIONS
EDUCATIONAL NUMBER OF %
QUALIFICATIONS RESPONDENTS
WASC/ SSCE/GCE - -
ND/HSC/NCE 30 15%
B.SC/HND 96 48%
M.SC, M.A, PhD 56 28%
Professionals (ICAN, ACIB, CIS, MBA) 18 9%
TOTAL 200 100
Sources: Researcher Field Survey (2007)
Table 4.3 shows that 30 (15%) were holders of ND/HSC/NCE, 96(48%) of the
respondents are B.Sc/HND holders, 56(28%) have post-graduate qualifications and 18(9%)
have professional qualifications such as ACA, ACIB, MBA, CIS etc.
TABLE 4.4: POSITION/LEVEL OF OCCUPATION
LEVEL NUMBER OF RESPONDENTS %
Management Staff 30 15%
Intermediate Staff 100 50%
Junior Staff 70 35%
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.4 shows that 30(15%) of the total respondents are management staff, 100(50%)
intermediate staff while the remaining 70(35%) are junior staff.
TABLE 4.5: LENGTH OF SERVICE
LENGTH OF SERVICE NUMBER OF RESPONDENTS % OF RESPONDENTS
Below 5 Years 40 20%
5 – 10 Years 82 41%
10 – 15 Years 54 27%
15 & Above 24 12%
Total 200 100
Sources: Researcher Field Survey (2004)
Table 4.5 shows that 40(20%) of the member of staff have spent below 5 years, 82(41%)
have spent between 5 – 10 years, while 54(27%) have spent 10 - 15 years and 24(12%) have
spent more than 15 years.
4.2 Strategic Marketing and Bank Performance Analysis
Q 6: Are you satisfied with the strategic marketing process of the bank?
TABLE 4.6 WORKERS SATISFACTION AND STRATEGIC MARKETING PROCESS
Option Responses %
YES 172 86
NO 28 14
TOTAL 200 100
Sources: Researcher Field Survey (2004)
Table 4.6 reveals that 172 (86%) of the respondents were satisfied with the banks’ strategic
marketing process while 28(14%) says No. The implication of this was that the improved
performance of the bank was as a result of good strategic marketing process.
Q 7: Does strategic marketing helps in achieving management functions (planning, organizing,
staffing, directing controlling and coordinating).
TABLE 4.7 STRATEGIC MARKETING AND MANAGEMENT FUNCTIONS
Option Responses %
Strongly Agree (SA) 136 68
Agree (A) 46 23
Indifference (ID) 10 5
Disagree (D) 6 3
Strongly Disagree (SD) 2 1
Total 200 100
Sources: Researcher Field Survey (2004)
 Table 4.7 shows that 136 (68%) strongly agree 46 (23%) agree 10 (5%) undecided 6 (3%)
disagree and 2 (1%) strongly disagree respectively with the fact that strategic marketing helps
in achieving management functions (planning, organising, staffing, directing, controlling and
coordinating.
Q 8: Does strategic marketing that exist in the bank enables you to take part in the decision
making process?
TABLE 4.8 STRATEGIC MARKETING AND DECISION MAKING
Option Responses %
SA 130 65
A 52 26
ID 8 4
D 6 3
SD 2 1
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.8 indicates that strategic marketing that exist in the bank paves way for open door
policy and ability to participate in decision-making. This is supported by their responses as
130(65%) strongly agree 52 (26%) agreed 8(4%) indifferent 6(3%) disagree and 2(1%)
strongly disagree.
Q 9: Does effective strategic marketing that exist in the bank leads to managerial efficiency?

TABLE 4.9 STRATEGIC MARKETING AND MANAGERIAL EFFICIENCY

Option Responses %
SA 136 68
A 48 24
IN 8 4
D 6 3
SD 2 1
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.9 reveals that 136 (68%) strongly agree with the fact that effective strategic
marketing that exist in the bank leads to managerial efficiency. 48 (24%) agree, 8(4%)
indifferent, 6(3%) disagree and 2(1%) strongly disagree. The implication of this responses is
reflected the performance indicators of the bank which shows growth throughout in relation to
gross earnings, loans and advances, investment dividend, profit before tax profit after tax, share
price appreciation etc
Q 10: Does strategic marketing helps in solving work problems encountered in the course of
performing your duties.
TABLE 4.10 STRATEGIC MARKETING AND HARMONIOUS RELATIONSHIP
Option Responses %
SA 103 56
A 74 38
IN - -
D 12 6
SD - -
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.10 shows that 103 (56%) strongly agree that strategic marketing helps in solving
workplace problems and promotion of harmonious relationship among the work force, 74
(38%) agree and 12(6%) disagree.
Q 11: Does strategic marketing helps in creating mutual understanding and rapport between the
members of staff management and customers?
TABLE 4.11 STRATEGIC MARKETING AND MUTUAL UNDERSTANDING
Option Responses %
SA 128 64
A 56 28
IN 6 3
D 10 5
SD - -
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.11 indicates that 128(64%) strongly agree that strategic marketing helps in creating
mutual understanding and rapport between the members of staff management and customers,
56 (28%) agree, 6(3%) indifferent and 10(5%) disagree.
Q 12: Do you always understand the content of what is strategic marketing entails?
TABLE 4.12 CONTENTS OF STRATEGIC MARKETING
Option Responses %
SA 140 70
A 50 25
IN 10 5
D - -
SD - -
Total 200 100
Sources: Researcher Field Survey (2007)
 Table 4.12 shows that 140(70%) claimed that they have thorough understanding of what
strategic marketing is all about that is why they are meeting their target, 50(25%) agree while
10(5%) are indifferent.
Q 13: Do you have foreknowledge on the application of strategic marketing in banking
operation?
TABLE 4.13 FOREKNOWLEDGE OF STRATEGIC MARKETING
Option Responses %
SA 124 66
A 46 23
IN 8 4
D 10 5
SD 4 2
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.13 indicates that 124 (66%) strongly agree, 46(23%) agree, 8(4%) indifferent,
10(5%) disagree and 4 (2%) strongly disagree with the facts that they always have
foreknowledge or briefed about happenings in the organisation.
Q 14: Does strategic marketing lead to the achievement of bank’s objectives?
TABLE 4.14 STRATEGIC MARKETING AND BANK’S OBJECTIVES
Option Responses %
SA 122 61
A 58 29
IN 10 5
D 10 5
SD - -
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.14 indicates that 122 (61%) strongly agree that strategic marketing always lead to
the achievement of the bank’s objectives, 58 (29%) agree, 10 (5%) indifferent and 10(5%)
disagree.
Q 15: Do your superiors encourage feedback?
TABLE 4.15STRATEGIC MARKETING AND FEEDBACK
Option Responses %
SA 92 46
A 60 30
IN 16 8
D 26 13
SD 6 3
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.15 reveals that 92(46%) and 60(30%) respectively strongly agree and agree with the
fact that superior encourages feedback, 16(8%) were indifferent, and 26(13%) and 6(3%)
respectively disagree and strongly disagree that superior wedge their authority by not
encouraging feedback when strategic marketing is applied in banking operations.
Q16: Does effective strategic marketing led to increase in the company’s profit?

TABLE 4.16 EFFECTIVE STRATEGIC MARKETING AND PROFIT

Option Responses %
SA 120 60
A 58 29
IN 12 6
D 10 5
SD - -
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.16 relates the importance of effective strategic marketing on profit 120(60%) and
58(29%) strongly agree and agree respectively that effective strategic marketing lead to
increase profit, 12(6%) were indifferent and 10(5%) disagree with the option that effective
strategic marketing can led to increased profit.
Q17: Does Strategic marketing has impact on bank’s performance
TABLE 4.17 IMPACT OF STRATEGIC MARKETING ON BANK’S PERFORMANCE
Option Responses %
Yes 190 95
No 10 5
Total 200 100
Sources: Researcher Field Survey (2007)
Table 4.17 reveals that strategic marketing has impact on the bank’s performance as this
accounted for the yearly increase in bank’s profit, total asset, dividend, gross earnings and
shareholder’s funds.
4.3 Performance Indicators Analysis
INTERCONTINENTAL BANK PLC
Fiscal year ending February 28 2006 % 2005 % change 2003 % change 2002
12month change 12months 12months 12months
Income Statement
Net Interest Income 17,420 47.3 11,826 75.7 6,730 19.6 5.6
Loan Loss provision 823 -59.7 2,044 37.1 1,491 50.0 1.0
Net Funds 16,597 69.7 9,782 86.7 5,239 15.5 4.5
Total non-interest inco 15,272 24.1 12,308 55.5 7,917 84.0 4.3
Total non-interest 22,083 55.0 14,244 58.0 9,016 51.6 2.6
Pre Tax profit (loss) 10,263 25.9 8,150 87.6 4,345 65.6 2.6
After tax profit (loss) 7,561 23.5 6,121 83.4 3,338 65.0 2.0
Gross Earnings 41,039 26.3 32,491 53.2 21,204 46.0 14.7
BALANCE SHEET
Assets
cash and balances with other 107,115 35.9 78,838 91.5 41,174 214.0 13.1
banks
Short-Term Investment 43,134 14.4 37,704 207.0 12,282 -12.7 14.1
Loans and advances net 161,357 135.9 68,396 207.0 12,282 88.8 17.0
Total Earning Assets 357,838 80.6 198,111 113.2 32,076 55.9 59.2
Permanent Assets 11,395 105.8 5,536 24.0 4,464 12.5 4.0
Total Assets 369,233 81.3 203,647 110.4 96,786 50.9 64.1
Liabilities and Capital
Total deposit liabilities 252,281 87.7 134,383 102.4 66,387 41.9 46.8
Total liabilities 313,898 87.4 167,459 95.9 85,478 56.0 54.8
Equity Stock 54,467 57.1 34,678 243.0 10,110 9.0 9.3
liabilities and equity stock 369,233 81.3 203647 110.4 96,786 50.9 64.1

PERFORMANCE RATIOS
Fiscal Year Ending Feb. 28 2006 (%) 2005 (%) 2003 (%) 2002 (%)
Asset quality
Gross loans and advance Nm 172,662 73,828 35,533 21
classified loan (Nm) 9,738 7,912 4,944 5
% of classified loans 5.6 10.7 13.9 24.0
loan loss res./classified loans 96.5 52.3 52.6 75.5
classified loans/equity stock 17.9 22.8 48.9 60.7
Capital Adequacy
Equity /Total assets 14.8 17.0 10.4 13.5
 Equity/Loan and advances 33.8 50.7 31.5 50.0
Permanent Assets/Equity 20.9 16.0 44.2 46.8
Liquidity Ratios
Loans & Advances/Toal Assets 43.7 33.6 33.1 27.0
Cash & Bank Bal./Total Liab. 34.1 47.1 48.2 24.4
Loans & Advances/Total Deposits 64.0 50.9 48.3 36.2
Profitability Ratios
Pre-tax profit margin 25.0 25.1 20.5 17.9
return on total asset 2.1 3.0 3.5 3.1
return on equity 13.9 17.7 33.0 21.9
net interest margin 67.6 58.6 50.7 53.5
interest income / loans & advance 11.7 21.9 26.1 61.4
interest paid/total deposits 3.3 6.2 9.9 10.3
operating expenses/total revenue 53.8 43.8 42.5 42.0
Non-Interesting Income/Total Rev 37.2 37.9 37.3 28.9
Pre-Tax Prof. Per Employee (Nm) 3.03 6.25 3.9 1.24
Staff Cost Per Employee (Nm) 2.59 3.21 2.5 1.10
Staff Costs/Gross Revenue 21.5 12.9 12.9 15.8

Intercontinental Bank Plc braced the challenges of its recapitalisation and subsequent
acquisition of three other banks to sustain its upwardly growth trend. The successor bank risk
management and profitability and sustain the unbroken record of returns to shareholders, three
key challenges that bedeviled the post-consolidation banking industry. Audited results of the
post consolidation Intercontinental Bank Plc for the year ended February 28, 2006 showed
appreciable growths on the top-line and the bottom-line while reducing risks associated with its
expanding core banking operations.
Capital Adequacy
Following the new issues and consolidations during the period, group's paid up capital
tripled to N5.36billion in 2006 as against N1.790billion in 2005. Outstanding paid up shares
had risen from 3.59bilion shares by 2005 year-end to 10.72billion share in 2006, largely due to
public offer and new share issued to acquired bank shareholders' fund followed with an
increase of 57percent to N54.47billion in 2006 as against N34.68billion in 2005. Group balance
sheet size expanded by 81percent to N369.23billion compared with N203.65bilion in 2005
while deposit base rose by 88percent from N134.38billion to N252.28billion in 2006. as total
asset growth rate outpaced equity funds, the proportion of equity to assets dropped from
17percent in 2005 to 15percent. Branch expansion drive also saw the proportion of equity
funds tied down as fixed assets to 21percents in 2006 compared with 16percent in 2005. With
an increase of 136percent in loans and advances, equity finance in risk assets dropped from
51percent in 2005 to 34percent in 2006.

Asset Quality
Intercontinental Bank sustained its good asset quality profile during the year as proportion
of bad loans to overall loan portfolio dropped to a low in spite of strong growth in loan assets.
Gross loans and advances jumped by 134percent to N172.7billion in 2006 as against
N73.8billion in 2005 while classified loan lagged behind with 23percent growth from
N7.9billion in 2005 to N9.74billion in 2006. The proportion of classified loans to total loans
has continuously dropped from 13.9percent in 2003 to 10.7percent in 2005 and closed 2005 at a
low of 5.6percent. this, with growth in capital based, reduced the threat of non-performing
loans to shareholders' fund from 49percent in 2003 to 23percent in 2005 and lower at 18percent
in 2006.
Profitability
Group gross earning rose by 26percent to N41.04billion in 2006 compared with
N32.49billion in 2005. this followed appreciable growths in core banking operations and other
operations. Interest income had grown by 28percent from N20.18billion in 2005 to
N25.77billion in 2006 while non-interest earnings rose by 24perecnt from N12.31billion to
N15.27billion. Consolidation costs kept operating expenses on the high side with an increase of
58percent in 2005 to N14.24bilion. the bank was however able to moderate operating costs by
sourcing cheaper funds as interest expense dropped from N8.35billion in 2006. this nudged the
bottom-line as pre-tax profit rose by 26percent from N8.15billion in 2005 to N10.26billion. net
profit grew by 24percent to N7.6billion in 2006 as against N6.12billion in 2005.
Key profitability ratios supported the growth outlook as net interest margin sustained its
build up to close 2006 at 67.6percent compared with 58.6percent and 50.7percent in 2005 and
2003 respectively. Pre-tax profit margin also defended its momentum in spite of high operating
expenses at 25percent, the same rate in 2005, 4.5percentage points above 20.5percent recorded
in 2003. average cost of funds halved to 3.3percent in 2006 as against 6.2percent in 2006,
although average lending rate followed the trend at 16percent in 2006 compared with
29.5percent and 26percent in 2005 and 2003 respectively.
Liquidity
 The liquidity position of the bank remained within acceptable range, although slightly lower
as cash retention failed to meet with rapid expansion in liabilities. Cash and bank balances as a
proportion of total liabilities dropped to 34percent in 2006 as against 47percent in 2005. Risk
assets however constituted 44perent of total assets in 2006 as against 34percent and 33percent
in 2005 and 2003 respectively. Loans and advances/total deposits ratio rose from 51percent in
2005 to 64percent in 2006
The performance of the bank is commendable and set good outlook for the new bank.
Synergies from the business combination are expected to really impact on performance in the
on-going year, a situation that should see the bank with better performance this year.
4.4 Testing of Hypotheses
H0:Strategic marketing does not have impact on bank’s performance.
Hi: Strategic marketing have impact on bank’s performance.
The hypothesis was test using the responses obtained from the respondents student “T” teste
formula of hypothesis was used a 95% confidential interval. Out of 220 administered
questionnnaires; 200 was received and found useful for the study. Therefore, the sample size
used waas 200.
The null hypothesis (H0) was subjected to test. Alternative hypothesis (H1) is accepted
when H0 is rejected.
T= P–U P= 190
U(1 – U) 200 0.95
N–1 U= 0.05
= 0.95 – 0.05
200 - 1
= 0.90
0.05(0.95)
200 – 1
= 0.90
0.0475
199 = 3370.5
T = 3770.5
 Since the calculated ‘T” is greater than the tabulated T i.e. 1.96, then, we reject H 0 and
accept H1 that strategic marketing have impact on bank’s perfformance.
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
The main focus of this study has been to examine the strategic marketing of banking
services by pointing out reason. Why the marketing strategy should adopt its services. The
main aim for the choice of this project topic as enunciated above is a sincere desire to have in
debts insight into what type of marketing strategy adopt in banking sector.
The summary of findings are as follows:
- That strategic marketing has impact on bank’s performance as reveal from result of “T”
– test of 3770.5
- That strategic marketing existence in th bank paves way for open door policy foster
friendship and good interpersonal relationship and sense of bleonging.
- That strategic marketing at Intercontinental Bank Plc leads to managerial efficiency.
- That majority of the work foce has a thorough understanding of strategic marketing
which in variably leads to credible perforamnce in terms of growth in profit, gross earning,
dividends, social responsibility (donation) and taxes to the government.
- That aggressive strategic marketing enables the bank to accomplishing their set out
objectives.
5.2 Conclusion
The objective of effective bank marketing can be summarised up as a new way of
responding to new demand in the present day diverse market. And to contend with these
diversities, bank manager must be dynamic and scientific by drastically after how they design,
motivate, market and sell their services to the various type of their customers.
Marketing in this stage of diversity means, more options for bank mangers in term of
services and choices. For instance, less perceived differentiation among similar product
intensified competition with promotional efforts sounding more and more like approaching
“masquerades” in the market place, newly minted meaning forward, and phrases as bank
marketers try to invest differentiation, disposal information as to customer try to cope with
information deluge from points to television, computer terminal, telephone etc.
Customisation by users of flexible inche service offerings every bit as economic as the total
services available changing leverage criteria as economic of scale give way to economic of
knowledge –knowledge of customers business, of current and likely future technology trends
and of competitive environment that allows the rapid development of new services changing
company structure as large banks continue to downsize to compete with smaller inches players
like Wema bank Plc that nibbles at their markets. Finally, smaller banks needs fewer chances,
for gigantism banks, bank like UBA wins in mass market, but more opportunities for healthy
profit in smaller market for smaller banks and that is why the rate at which smaller banks in the
country are making profit faster than the larger banks year in year out.
5.3 Recommendations
After a consideration of bank marketing from the corporate planner view points and also
establishing the necessity for such an approach, the following are crucial points to observe in
effecting a sound effective strategies marketing in banking services.
Banks need to make their corporate planning division effectively function, so as better still,
equip them by exposing the current staff of the division to the principles and practise of
strategic marketing. Such training could be provided by local experts (private consultant,
academician from university etc.) who will organise workshops of about week duration for
such staff.
Banks marketing plan should include proper identification of what really, motivates the
customers. And the attribute that future conspicuously includes banks reputation, location
availability of credit friendness, service changes, full service offering, special services, and
pearking space.
There should be proper organisational; marketing structure in the bank that will cater
property for planning, direction and controlling of marketing activities in the bank.
A look at the trend of increase in financial institutions and competition from the finance
houses on the services rendered by commercial banks: Wema bank should make conscious and
vigorous marketing research. For objective of their search, certain questions were asked such as
who are the customers? What does the market buy? Why does the customer buy and how does
the market buy? If these question are given answer to and proper research are carried out and
analysed, this would give an insight on how to facilitate design services, relationship and bank
recommendations.
 Different forms of sales promotion and publicity should be carried out in the rural area in
order to enhance the effectiveness and efficiency of their rural branches. These will attract
more customers and improve the banking habit of the rural populace, since the majority of
them engage in farming some agricultural enlightment programme should be sponsored on
how to improved their method on farming thus increasing their lowest and subsequent income.
Based on the directive of the C.B.N that certain percentage of loadable fund of the bank should
go agriculture most especially to the rural area. The profitability and rural area. The
profitability and invest must be ensured not only in term of repayment and interest but
mobilisation of the surplus from the rural dwellers to the bank for investment.
It should be noted that bank marketing is not limited only to the marketing manger. All the
bank staff, from the board directors to the counter clerk and cleaners has the responsibility for
selling the bank staff.
Finally, bank should meaningfully, design and implement a balance marketing mix, which
should be in perfect harmony to promote effective banking habit in the country. And more so, it
dealt to develop the marketing strategy within a strategic management framework.
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