A Theory of Efficiency for Managing the Marketing Executives in Nigerian Banks

Bank customers in Nigeria are almost unanimous in decrying inefficiency and most have at some time or the other wished the Nigerian banks at least a little less of it. The concern for efficiency in managing the marketing executives in Nigerian banks prompted this study. The study was examined in the light of Kaizen (Continuous Improvement) and Efficiency Theory. A sample of 303 marketing executives from selected banks in Nigeria was determined using the finite multiplier. The hypothesis test results gave significant values of Wald Ch-Square for the intercept and individual response categories of research questions (p < 0.05) with the exception of the response of generally agree (p>0.05) and definitely agree (no computed Wald Chi-Square result), which indicated the significance of the results. Hence management is responsible for setting the context within efficiency improvements can take place, and bear prime responsibility for identifying and implementing efficiency of the marketing executives in Nigerian banks. Granted that the bank as a whole would benefit less with inefficiency, and that the task of reducing inefficiency in managing the marketing executives is uphill, a programme of reducing inefficiency should be based on three major premises, namely:` (i) that some are inefficient because they do not know what to do in given situations (structural inefficiency); (ii) that knowing what to do, some are inefficient because they do not want to do the right thing in given situations (primary or voluntary inefficiency); and (iii) that knowing what to do and wanting to do it, some are still inefficient because they cannot do the  right thing in given situation (secondary or induced inefficiency). This is the inefficiency brought about when the bank manager himself is inefficient, gives a bad example, stifles initiatives and is unwilling to control the marketing executives. The fact that it is recommended for top bank management to be exposed to training suggests that bank managers can and do induce inefficiency. For efficiency drive in managing the marketing executives in Nigerian banks, it is recommended the adoption of a 3H grand strategy to work on the Head (H1), the Heart (H2) and the Hand (H3) of management and the marketing executive, that is, respectively, their knowledge, their attitudes, and the tools with which they work. It is therefore essential for a bank management introducing an efficiency drive to identify factors that provide the critical inputs to his organization, and pass them through the 3H transformation process first. These critical factors are referred to as the crossroads. For just as traffic on a highway cannot flow freely unless the crossroads are cleared, no bank can function efficiently unless its critical inputs are functioning very efficiently. The crossroad (top management) in Nigerian banks must be transformed first through the 3H grand strategy if any efficiency drive for managing the marketing executives is to yield good results. Keywords:Efficiency Drive, Voluntary Inefficiency, Kaizen Principle, Nigerian Banks, Marketing Executives, Wald Chi-Square, 3H Grand Strategy

SHARIA BANK SERVICE MARKETING MANAGEMENT STRATEGY IN INDONESIA

Indonesia, which is predominantly Muslim, has long wanted a system of financial institutions that is in line with the demands of not limited financial needs but also moral demands. Islamic banks function as a collection of funds from the public in the form of savings must be based on Sharia principles. With the passage of time, the dynamics of Islamic bank players in marketing sales of products and services that are increasingly high, of course, make Islamic Banks required to have a strategy to compete competitively. Because Marketing strategy has a function as an organization and a set of processes in creating, communicating and submitting assessments to consumers in managing good relations with consumers which is carried out in a way that can provide benefits to the organization and its owners. The type of research used is literature study. The result of the research is that the marketing strategy of Islamic banking services is a strategy to serve the market or market segment that can be used as a target by an entrepreneur. The strategy of Islamic banking services can be carried out using segmentation, targeting and positioning strategies. Therefore, a good service system in Islamic banks is very necessary. Indonesia yang mayoritasnya beragama Islam telah lama mendambakan kehadiran sistem lembaga keuangan yang sesuai dengan tuntutan kebutuhan tidak terbatas finansial namun juga tuntutan moralitasnya. Bank syariah berfungsi sebagai penghimpunan dana dari masyarakat dalam bentuk tabungan harus berprinsip Syariah. Dengan berjalannya waktu dinamika pelaku bank syariah dalam memasarkan penjualan produk dan jasa yang semakin tinggi tentunya membuat Bank Syariah diharuskan mempunyai strategi untuk bersaing secara kompetitif. Dikarenakan strategi pemasaran  memiliki fungsi sebagai organisasi dan seperangkat proses dalam penciptaan pengkomunikasian dan penyerahan penilaian kepada konsumen dalam pengelolaan hubungan baik dengan konsumen yang dilakukan dengan cara yang dapat memberikan keuntungan bagi organisasi dan para pemiliknya. Jenis penelitian yang digunakan ialah studi pustaka. Hasil penelitian adalah strategi pemasaran jasa bank syariah ialah strategi untuk melayani pasar atau segmen pasar yang dapat dijadikan sebagai target oleh seorang pengusaha.Strategi jasa bank syariah dapat dilakukan dengan menggunakan strategi segmentasi, target dan positioning. Oleh karena itu sistem pelayanan yang baik di bank syariah sangat diperlukan

Measuring the effect of customer relationship management (CRM) components on the non financial performance of commercial banks: Egypt case

This paper presents customer relationship management (CRM) components as applied on the Egyptian Commercial Banks, examined from the bankers' point of view. Then, it intends to measure their effect on the level of customer satisfaction and loyalty from the customers’ point of view as examples of the non financial performance measures. The paper is quantitative in nature and consists of two different structured questionnaires using convenience/quota sampling. The first involved 180 employees in order to measure CRM applicability, and the second involved 270 customers to measure the level of customer satisfaction and loyalty and their effect on the Egyptian Commercial Banks' financial performance The findings show that the selected banks apply CRM components but the level of application differs from one bank to another. The results showed a significant positive relationship between CRM and customer satisfaction in the Egyptian Commercial Banks, when applying them together and not separately. In addition, there is a strong positive effect between customer satisfaction and loyalty which was reflected on the Commercial Banks' financial performance. The findings confirm the importance of studying and implementing CRM to achieve customer loyalty and improve the Egyptian Commercial Banks financial performance. Banks wishing to improve their relationships with customers need to focus on the CRM components to develop relevant and effective marketing strategies and tactics. The paper measures the CRM as a multidimensional construct as applied on the Egyptian Commercial Banks and relate it to the achievement of the ultimate goal of retaining customers to gaining a sustainable competitive advantage and achieve more profits

Technology and Service Quality in the Banking Industry: An Empirical Study of Various Factors in Electronic Banking Services

Technology-based self service has greatly changed the way that service Firms and consumers interact and are raising a host of research and practice issues relating to the delivery of e-service which has become increasingly important not only in determining the success or failure of electronic commerce but also in providing consumers with a superior experience with respect to the interactive flow of information. The purpose of this research study was to establish the relationship between technology and service quality in the banking industry in Nigeria. The research was carried out through a cross sectional smvey design which questioned respondents one e-banking services. The population of study mainly constituted of customers of Oceanic bank within Lagos metropolis and its environs. The respondents of the study were customers of banks using e-banking services (internet banking, mobile banking and AIM). The sample in this study consisted of 120 respondents who are users of thee-banking services. The data collected was analyzed by use of frequency, percentage, means and correlation analysis. The findings revealed that secure services as the most important dimension, followed by convenient location of AIM, efficiency (not need to wait, ability to set up accounts so that the customer can perform transactions immediately, accurately of records, user friendly, ease of user, complaint satisfaction, accurate transactions and operation in 24 h)

Management as a system: creating value

Boston University School of Management publication from the 1990s about the MBA programs at BU, aimed at prospective MBA students

Global vs. regional approaches to the internationalisation process of Nigerian banks: some preliminary evidences

Research investigating internationalisation process of service firms from developing countries is limited. This paper draws on extant work on internationalisation of the firm, services’ internationalisation and proposes conceptual framework that investigates the internationalisation process of three leading Nigerian banks namely; Zenith Bank Nigeria (ZBN)Plc, First Bank of Nigeria (FBN) Plc and Intercontinental Bank Plc. This work attempts to evaluate the internationalisation process of these financial service firms to the UK market. It seeks to understand the driving forces behind these banks’ motives for internationalisation to UK; the various influences that might have affected their decisions, the several internationalisation routes and strategies they might have followed in doing so; and the next strategies they might adopt in furthering their internationalisation process. This work contributes to some understanding of the reasons why service firms from developing countries internationalising to advanced locations like the UK. The analyses and findings of this study offer unique insights into the internationalisation processes of the three case banks, and examines how their different pathways was determined by a balancing act of leveraging accumulated global and regional strengths to achieved sustained international growth

Marketing relations and communication infrastructure development in the banking sector based on big data mining

Purpose: The article aims to study the methodological tools for applying the technologies of intellectual analysis of big data in the modern digital space, the further implementation of which can become the basis for the marketing relations concept implementation in the banking sector of the Russian Federation‘ economy. Structure/Methodology/Approach: For the marketing relations development in the banking sector in the digital economy, it seems necessary: firstly, to identify the opportunities and advantages of the big data mining in banking marketing; secondly, to identify the sources and methods of processing big data; thirdly, to study the examples of the big data mining successful use by Russian banks and to formulate the recommendations on the big data technologies implementation in the digital marketing banking strategy. Findings: The authors‘ analysis showed that big data technologies processing of open online and offline sources of information significantly increases the data amount available for intelligent analysis, as a result of which the interaction between the bank and the target client reaches a new level of partnership. Practical Implications: Conclusions and generalizations of the study can be applied in the practice of managing financial institutions. The results of the study can be used by bank management to form a digital marketing strategy for long-term communication. Originality/Value: The main contribution of this study is that the authors have identified the main directions of using big data in relationship marketing to generate additional profit, as well as the possibility of intellectual analysis of the client base, aimed at expanding the market share and retaining customers in the banking sector of the economy.peer-reviewe

Global strategies to overcome the spiral of decline in universal bank markets

Although there has been an increase in the overall financial services market, the profitability of banks world-wide has decreased from the early 1980s to the 1990s. This has been attributed to several factors: the decline of traditional banking activities (deposit taking and lending); poorly performing debts (arising from poor lending decisions); and, for domestic banks, depressed property prices and important local industrial sectors performing badly. However, the analyses of bank performance tend to be short-term and narrow in their outlook, and seldom attempt to explain the underlying trends and processes of change. In this paper it is argued that the broad competitive forces of information technology, globalisation and deregulation are destabilising the banking industry leading to irrevocable changes which allow new entrants, disintermediation, innovation and customer changes on a much greater scale than has occurred in the past. These concepts are illustrated using a range of different bank markets as examples. To compete in these new markets different approaches are needed, and a series of possible strategies for addressing new bank markets are outlined with reference to size and type of bank. The long-term outlook for banking is discussed with particular attention being focussed on the changing role of universal banks

Corporate brand management imperatives: Custodianship, credibility, and calibration

Copyright 2012 by The Regents of the University of California. All rights reserved.Marshaling case study research insights, this article advances our knowledge of the strategic management of corporate brands. Strategic corporate brand management requires commitment to three critically important imperatives: senior management custodianship; the building and maintaining of brand credibility; and the dynamic calibration of seven identities constituting the corporate brand constellation. This article draws on research dating back to the 1990s and is also informed by the identity-based view of corporate brands perspective and by recent scholarship on the AC4ID Test—a strategic, diagnostic, corporate brand management framework