Impact of Contemporary Marketing Strategies on Profitability of Deposit Money Banks (DMBs) in Nigeria

Abstract

The research focuses on the impact of contemporary marketing strategies on profitability of Nigerian banks. Three selected banks where been used for this study, they include: Zenith bank Plc, Sterling bank and Access bank. Some of the objectives of the study includes: To determine whether the use of marketing strategy enables bank to achieve their financial objectives, to find out which marketing strategy tools banks use more often in building customers confidence in the banking sector, to ascertain whether the adoption of marketing strategy in banks have increased customers patronage, and lastly to find out if the adoption of marketing strategy builds a favourable corporate image for the banks. The literature on strategic marketing topics, customer relations and banking industry was extensively reviewed. Both primary and secondary data were been used for the study. In the course of the study, a structured questionnaire was been issued to make inquiry which later helped in the formulation of the hypothesis. For the method of data analysis, percentages, tables and chi-square were used in testing the hypothesis, to which the findings ascertained includes: The use of marketing strategy helps banks achieve their financial objectives, Strategic marketing helps in the increase of customers patronage, and the adoption of strategic marketing tools in the operation of a bank helps her build customers confidence in the banking industry. It was concluded that banks when carrying out her services need to employ result-oriented marketing strategies such as customizing her payment or services while introducing newer innovative products. Bases on this same recommendation were made.