Marketing Strategies and Bank Performance in Nigeria: A Post-Consolidation Analysis

Abstract

This paper examines the effect of marketing strategies on banks performance in the Nigeria consolidated industry using fifteen of the twenty consolidated banks in Nigeria. Qualitative data were sourced through the administration of structure questionnaire while the quantitative data were sourced from the Central Bank of Nigeria publications and the Nigerian Stock Exchange fact book. The quantitative data were transformed to quantitative data with the use of Likert scale. The Ordinary Least Square estimation technique was employed for analysis while the Marketing Efficiency Model Approach was adopted and modified to suit the Nigerian context. The findings in this study shows an overall significance of the marketing variables adopted, although not much effect is seen when a marketing variable is compared with bank performance in isolation of other variables. The coefficient of multiple determinations of about 71% and 56% for the models formulated showed that the explanatory variables reasonably explained the behaviour of the explained variables; the F-statistic results revealed that both models were adequate and significant. It was recommended among others that         Banks should embark from time to time on marketing research and should compare the different marketing techniques to access the success and the failure of such strategies in the industry. Apart from these, banks are also encouraged to be more customers-focused and embrace relationship marketing rather than transaction marketing as well as embark on effective management of depositors’ funds.

Keywords: Marketing Strategy, Marketing Efficiency Model, Banking Reforms, Ordinary Least Square Estimation Technique, Marketing Mix.