THE IMPACT OF MARKETING ACTIVITIES ON DEPOSIT MOBILIZATION AND PROFITABILITY IN NIGERIA BANKS

CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND TO THE STUDY
With the current level of competition in the banking industry, the area which make the banking comfortable is definitely over the threat posed by the announcement of a new capitalization requirements of #25 billion for all banks by the Central Bank of Nigeria in July, (2004) introduced a fundamental challenge the altered the operating dynamics of the banking industry. As part of the wider agenda by the monetary authorities to engender the consolidation of the banking industry. This project work is intended to examine the impact of marketing activities on Deposit Mobilization and Profitability in Nigeria Banks.
Marketing itself is defined as the performance of business activities that direct the flow of goods and services from producer to consumer or user. This definition was given by the “American Marketing Association”. According to Steven Hillested and Eric (2015) both defined marketing as the “process of understanding customers” wants and needs and designing appropriate programmes and services to meet those wants and needs in a timely, cost effective competitive fashion. The financial repressions theory developed by Kinnon and Shaw (1973) indicated that low interest rate lead to capital flight theory reducing the availability of lend able funds for investment and growth in the domestic economy. On the other hand, an increase of real interest rate will increase the cash inflow and deposit base of bank for investment and growth in the domestic economy.   
Furthermore, the removal of controls on interest rate and credit ceiling can be expected to greatly enhance the efficiency of financial intimidation by channeling credit to high yielding investment opportunities. It is also expected “That by restructuring the banking sector and training banking officials and staff, having their own, marketing and also a competent bank marketing manager, capacity of the banking sector will be improved with the increase banking services available to the public. It is argued that competition will not be possible if the banking sector is dominated by government owned banking institution and that risk of inefficiency is associated with direct credit controls with pre-reform government intervention.    
The marketing approach providing any type of product or services is to identify the need of a particular customer and offer a particular product or services that will satisfy the need. The provider of the product or services should be able to make a profit while satisfying a customer need at the same time. Finally, the opening of financial markets to foreign competition will provide an incentive for banking institution to adopt efficient means of delivering banking services. A close look at the banking industry will show that some of the banks have fully responded to the development within their business environment. They should not remain static to the old philosophy in a dynamic environment but cherishing a system of looking beyond present period and not leaving every thing to change.  
1.2   JUSTIFICATION OF THE STUDY
It is helped that this research work will contribute in no small measure to both the academic endeavour and practices of related profession especially in the banking sector. Among the areas which the research work contributes are:
Setting of the organizational goals and objective 
Implementation of marketing activities
Actions towards increasing the profitability of banks.
1.3    STATEMENT OF THE PROBLEM  
The non-chalant attitude of our banking industry to make cognizance of environmental changes have make their executives to pay little or no attention to the importance of marketing activities on deposit mobilization of bank and it’s profitability. This is something that has led to services of problem in our banking industry and which has done an untold damage to the sectors and economy in general. The problems that will be identified in this project are as follows:
-  Lack of proper marketing objectives.
-  Unplanned marketing activities  
- Inability to spot adequately market performance and threat in the market.
- Inadequate evaluation of proper marketing activities result.
- Inability to establish organizational goals and objectives.
- It prevents them from identify the failure business characters and the development of marketing strategy.
- Poor implementation of marketing programme toward achievement of organizations goals and objectives.
1.4    OBJECTIVE OF THE STUDY
The objective of this project is to examine the impact of marketing activities on deposit mobilization and profitability of the Nigeria banks are case study of intercontinental bank plc and to make recommendations.
1.5  METHODOLOGY OF THE STUDY AND STATEMENT OF HYPOTHESIS
The research works are going to be tested through the questionnaire. And the following were therefore propounded for testing.    
a. Ho:      Marketing activities has not contributed to the ways banks mobilize deposit. 
Hi: Marketing activities has contributed to the way banks mobilize deposit. 
b.  Ho:      Marketing activities has not increase the profitability of banks.
     Hi:       Marketing activities has increase the profitability of banks.
c. Ho:      Deposit mobilization has no significance effect on the profitability of banks.
  Hi:       Deposit mobilization has significance effect on the profitability of banks.
1.6   SCOPE OF THE STUDY
The research study will focus it’s attention on the activities of marketing in the banking sectors and how their introduction and implementation can help the performance of the banks in the economic condition. The deposit mobilization and profitability being the basic objectives of management in an organization will make the research work to cut across virtually all the management functions and their application in the banking industry. The issue of deposit mobilization and the effect it has on banks profits will be duly covered in this research work.     
1.7   LIMITATION OF THE STUDY
In every human activity, there is bound to be some hindrances that make aims and objective difficult if not possible to achieve some of the following are the militating factors that could bring untimely to this research work. 
- Time return of the questionnaire by the respondent.
- Many of the respondents have tight schedule, hence there was great and difficulties in seeing them.
- A lot of offices were unit of bound to non-staff security reasons.
- Some facts could not be disclosed for security reasons. 
The sensitive nature of the topic may make the respondent unwilling to provide the required data.
1.8   LITERATURE REVIEW
2.1   Introduction
2.2   Review of related Literature
2.3   What is Marketing Activities?
2.4 Various ways at which marketing activities is being carried out by bank’s.
2.5 Problem encounter in marketing activities
2.6 The impact of marketing activities on deposit mobilization.
2.7 The impact of marketing activities on bank profitability.
2.8 The effect of deposit mobilization on profitability of banks.
2.9 Controlling marketing activities
2.10  Benefit of deposit mobilization and profitability on banks.