Locational Factors Influencing The Marketing Of Financial Service

INTRODUCTION
BACKGROUND OF THE STUDY
The deregulation of the Nigeria economy came into being in 1986. by that time the banking industry was one of the most vibrant and most south after by investor in Nigeria. According to Nwankwo (1991.2) the number of commercials and merchants banks rose form 33( thirty three) commercial bank and 15 merchant banks 1987 to 65 (sixty five ) and 47 (forty seven) respectively in 1991.
The bank industry entered this decade with less caution but aware of global economic changes according to Clausen (199:2) the industry entered the new decade well aware that the world was about to change but in retrospect not fully realizing the far reading extent of that change nor its velocity and impact. In the ensure six years the industry was unable to respond rapidly enough to the wrenching dislocation brought by deregulation fierce new competition and unstable world economy cribs erupted within the first quarter of this decade and the condition deteriorated in the in the following area.
i. The industry was losing money with losses in billion since mid nineties
ii. Some of the banks suspended payment of dividends on their common stocks
iii. Some if the bank were facing hostile take over attempts by the regulatory bodies (NDIC AND CBN )
iv. Regulatory bodied had directed several bank boards of directors to redress the worsening capital base and
v. Questions were raised about some of the banks ability to survive independently
Marketing in the banking industry in Nigeria as we know today owes much to the survival strategies of some new generation commercial and merchant banks after the banking distress of1992 through 1996. this development attended the tastes and demand of the society stimulated competition and created selling opportunities and reward. The banking habits new spread throughout the social classes.
New service have been introduces as the bank met competition fill gaps in their service ragge or try to steal a march on the competition by endeavoring to discover and satisfy the needs of new riche markets business customer have also wittiness the wind of change as the bank gained a greater appreciation highly profitable corporate mar let. thus the banks own marketing expertise has been pushed along by competition and a desire to gain market share. It has also been full along its customer demanding more flexible advantageously priced and comprehensive facilities.
The need of customer and prospective ones cannot be ignored by any bank especially in larger market like Lagos and Aba environment. Relying merely on selling only those service which are already available is at best a short term expedient as market attitudes preferences technology environmental factors are constantly.
To survive profit must be earned by banks and part of this process involves containment of cost when seeking the most profitable market to exploit. Therefore banks resources must be channeled towards the potentially more profitable banking markets which in turn necessitates making a choice among larger markets like Lagos Aba Kano Onitsah Kaduna etc. it is the identification of these chosen larger market and the allocation of the right balance of resources that calls for the marketing skills of research planning and assessment.

STATEMENT OF THE PROBLEM
Without customer banks would have no revenues marketing is directed at protecting and expanding this stream of revenue organization (inducing banks) regards customers wherever they may be as their single most important reason for existing. They operate in a rapidly changing regulatory and economic environment consequent upon this it is the job of the market to under study and understand the purchase decision/ patterns of these customers who have been know to be difficult and complex in nature. The task become even different in the light of increasing competitions growing customers sophistication and innovation in an environment of trade liberalization financial deregulation and internalization.
The problem was further compounded by the recession in the economy which led to the introduction of S.AP (structural) adjustment programme) in 1986. as Effion (1990:15) pointed out between 1986 and 1992 there were low capacity utilization in most industries declining per capital income and reduce disposable income.
The bank sector thus become more competitive and business environment like Lagos Aba Onitsha port-Harcourt Kano etc developed peculiar business climates/ markets and attracted and larger number of bank braches to their areas.
Against this background it became necessary for us to establish the location factor that influence banks in the marketing their financial services with particular reference to Lagos and Aba market.

OBJECTIVE OF STUDY
The objective of this study is to examine the location factors influencing the marketing of financial service in Lagos and Aba markets it will seek to do the following
i. Examine if there are locational differences between factors affecting banks preference for Lagos and Aba marke
ii. Consider the factors that determine banks preference for a particular location in both Lagos and Aba market.

RESEARCH QUESTION
For the purpose of his research the following question will act as guide
i. Why are banks establishment many branches in Lagos and Aba market.
ii. Do banks through various branch lend more in Lagos and Aba market and make more profit.
iii. Does accessibility to these bank branches influence the patronage of customers in these markets?
iv. Is response time to customer enquires and transaction in these area an important attraction?
v. How important is technology (system support computer etc) to the customer in these area?

FORMULATION OF HYPOTHESIS
i. Ho: Banks are not establishing many branches in Lagos and Aba
markets
Ho: Banks are establishing many branches in Lagos and Aba
Markets
ii. Ho: bank do not lend more in their branches in Lagos and markets and
make more profit
iii. Ho: Accessibilities to these bank branches does not influence their
patronage in these market.
Accessibilities to these bank branches influence their
patronage in these market.
iv. Ho: Response time to customers enquires and transaction is not an
attraction to bank customers in Lagos and Aba market
Hi: Response time to customers enquires and transaction is an
attraction to bank customers in Lagos and Aba market
v. Ho: Technology is not an important factors affecting customer
preference in these area
Hi: Technology is not an important factors affecting customer
preference in these area

SCOPE AND LIMITATION OF THE STUDY
This study shall be restricted to Lagos and Aba business/banking environment Lagos and Aba market were chosen because.
i. The head official of about 90% of the banks are in Lagos
ii. The banks that do not have their head offices in Lagos have regional offices and /or head office annexes
iii. Many banks have either regional office and /or area office in Aba
iv. Lagos is the nations industrial capital with over 75% of the industrial base of the nation which have led to more banks user
v. The under listed 10 (ten) banks (by number of branches) have at least five branches in Lagos and at least two branches in Aba (excluding their cash enters ).
Banks Branch net work Ranking Marketing slogans
First bank of Nig Plc 319 1 Truly the first
Union bank of Nig plc 284 2 Big strong reliable
United bank for Africa 219 3 The wise choice in banking
Africa bank Nig plc 137 4 The one stop bank
87 5 We treat you like a person
Bank of he north ltd 86 6 We earn your confidences
Wema bank plc 86 7 Vision to be become a role
Standard trust banks 77 8 Model for Africa B12
Habib Nig bank Ltd 55 9 The bank with a difference
Ailstable trust bank Plc 47 10 The professional banks
Respondents for the study will be drown from banks senior official and individual bank customers and the objectives will be to find out what information their bank ( branch) locational considerations the under listed have been identified as some of the limited factors.
1. Bas of respondents: The respondents are form different backgrounds with their own prejudices since they have no direct stake in this study the reliability of data generated from them is suspect and will be fraught with many inconsistencies.
2 Sample error: I have only a sample to represent the entire population the sample was selected using convenience sampling technique since the sample is just a small representation of the entire population sampling error is therefore inevitable.

SIGNIFICANCE OF STUDY
This research will attempt to show the locational factor influence the marketing of financial service in Lagos and Aba markets issue to be analyzed will include people banking habits branch net works technology application interest rates on loans security of funds response time amongst others the customers will be classified into 2 (two) broad group for analysis viz
i. Corporate bodies and
ii. Individuals
We shall therefore strive to establish the existence of difference in factor that influence various bank choice of location in Lagos and Aba business banking environment.
Having established the existence of a difference or lack of it.
The research will then make suggestions that would help banks price their product better in the lagos and Aba competitive banking environments improve on their technology applications ensure security of customers funds and other general attributes that customers consider vital