1.1 Background of the Study
Sheldon, (2002) defined a
banking business as to receive money from customers and to collect
instruments representing money from customer on the understanding that
the money will be refunded or collected either on demand or at some
definite date agreed upon between union and his customers. From the
above, the core activity of a bank is funds intermediation which entails
mobilizing funds from surplus spending unit and channeling such funds
to the deficit unit. This activity facilitates capital formation which
generates growth and development in the economy. How Nigeria banks have
fared along the lines of the above function has been an issue of
unresolved debates in the banking domain, as their effectiveness has
been consistently criticized. Perhaps the fallout of this argument led
to the banking sector reforms.
The current banking sector reforms in
Nigeria was designed to promote the viability, sound stability of the
system to enable it meet the aspiration of the economy in term of
accelerated growth and development (Nwachukwu and Peterson,2007) for
bank in the industry to acquire effectiveness within the sector, banks
must compete vigorously using their competitive strategies. One such
competitive strategy would be thedevelopment of superior brand identity,
brand image and brand personality. These marketing concepts areusually
noted as a prerequisite for achieving sustainable competitive
advantage.Given these trends after the bank consolidation, marketing
strategy has become a fundamental tool inthe banking sector.
Indeed, both the application of
marketing concepts to the banking firms and theunderstanding of customer
behavior have been subjects many research works in many decade ago
(German andHunt, 2003; Jessica and Pius 2008; and Kotler et al 2006).
Banking industry have aggressively pursued variousmarketing strategies
to enable firms succeed, a good example of such are market segmentation
(Harvey 2000cited in Denmasks, 2010; Nichols 2001 cited Nubam 2008),
relationship marketing and database marketing(Amett et al 2003) and
other marketing activities that will enhance performance.
Brand identity is the visual aspect that
forms part of the overall brand (Koneonit, 2002).However, brand
identity is seen as what the owner want to communicate to its potential
consumers. Leclere and
Schmitt (2007) submitted that consumers
brand knowledge consist of two measures, brand awareness and brandimage.
Brand awareness refers to the strength a brand’s present in the
consumer’s mind. Aaker (2006) thereforedefines brand awareness as the
ability of a certain product category. Brand image increases the produce
Although these strategic issues in
marketing are important to the banking sector researchers
andpractitioners, the understanding of the unique nature of how these
strategies enhance performance need to beexplicated. Several studies in
relationship marketing and many in branding has focused on brand equity,
brandpersonality and brand image. This study departs from previous
research in that we are looking at using brandidentity as a specific
strategy to differentiate our service from other of our competitors. Our
examination ofbrand identity in the banking context aims to extend
prior research on brand identity and firm performance(Jackson and Smith
2006; Manson et al 2008; and Mubok 2010).
1.2 Statement of Problem
There is no gainsaying that the present
economy deserves a sound, stable and better banking performancefollowing
the causative factors, such as unethical and unprofessional practices,
poor management qualityamong others which contributed to low level of
bank performance and sometimes lead to failure of bank.
The major problem in the Nigeria
bankingindustry is that bank services are still lacking in so
manyspheres in Nigeria, yet the banks perception ofmarketing has not
shifted from mere advertising untilrecently as a result of stiff
competition brought about byreforms.This crisis demonstrated in no
unmistakableterms that “even strong economies, lacking transparent
control, responsible corporate boards andshareholder right can collapse
quite quickly as investor’s confidence collapse”. The alarming rate of
corporate failures as witnessed globally has necessitated this study
apparently; thefailures have known no boundary as it cuts across both
the very big organizations and the very smallcorporate entities
especially financial industries.In a nutshell, the present study is
designed to investigate the Bank’s management ability, capability
andperformance. It also reviews the interventionist role played by
corporate governance to bank performance.
1.3 Purpose of the Study
The general purpose is to examine the
effect of Brand Identity and Marketing Performance Empirical Evidence
from Quoted Commercial Banks in Nigeria while the specific objectives
1. To determine the extent to which Product Design influence Marketing Performance from Quoted Commercial Banks in Nigeria
2 To ascertain extent to which Brand Image influences Marketing Performance from Quoted Commercial Banks in Nigeria
3 To ascertain extent to which brand awareness influences Marketing Performance from Quoted Commercial Banks in Nigeria.
1.4 Research Questions
From the above specific objectives, the following research questions are formulated:
1. To what extent does Product Design influence Marketing Performance from Quoted Commercial Banks in Nigeria?
2 To what extent does Brand Image affect Marketing Performance from Quoted Commercial Banks in Nigeria?
3 To what extent doesbrand awareness affect Marketing Performance from Quoted Commercial Banks in Nigeria?
1.5 CONCEPTUAL FRAMEWORK OF BRAND IDENTITY AND MARKETING PERFORMANCE
SOURCE:(Researcher’s Desk 2016).
1.6 Research Hypotheses
The following null hypotheses are formulated from the above specific objectives:
H01: There is no significant relationship between Product Design andMarket Share from Quoted Commercial Banks in Nigeria.
H02: There is no significant relationship between Brand Imageand Sales Volume from Quoted Commercial Banks in Nigeria.
H03: There is no significant relationship between Brand Awareness and profitability from Quoted Commercial Banks in Nigeria.
1.7 Significance of study
The study will be helpful to various
stakeholders in Quoted Commercial banks who are interested to the
long-term strategies for profitability namely shareholders, investors
and creditors in such a way that they should be able to realize the
potentials and scope for the business growth in Quoted Commercial banks.
The study has provided recommendations to be considered by Quoted
Commercial banks to improve on their service.
Therefore this study will add new
knowledge to bankers in Nigerian regarding the extra value banks can
earn through implementation of product Identity.
This study will be of benefits and
interest not only to banks in Nigeria, but it will be valuable to other
service sectors in Nigeria as a whole. The study will also be a source
of secondary data to other researchers who wish to conduct studies on
related issues. It will
again act as mainstream for generating,
keeping and maintaining customers.This study is important for customers,
employees, banks, academia and even government. Customers will have
access to better and qualitative services from the banks. Employees can
also have improved conditions of service due to better organizational
performance. Banks can gain in terms of superior performance. The
research can also benefit the academia in terms of addition to
1.8Scope of the Study
The study will only concentrate three
(3) selected quoted Banks.The selected quoted Banks under study are:
First Bank of Nigeria PLC (FBN); United Bank for Africa PLC (UBA) and Zenith Bank PLC.
1.9Limitations of the Study
The success of this study depends to a very large extent on both qualitative and quantitative factors.
Financial constraints: Data
gathering and analysis involve financial expenses thus, the extent to
which information is acquired depends on the available funds at the
disposal of the researcher.
1.10 Definition of Terms
Brand Identity: According to Janonis et al. (2007), Brand identity includes everything that makes the brand meaningful and unique.
Brand awareness is how easily consumers can recognize a brand or the identity of a company and/or product.
refers to the improvement of the organizational status in the market
(market share), improvement of the customers’ perception of organization
and its products, and increase in their loyalty toward organization
Sales growth: The increase in sales over a specific period of time, often but not necessarily annually.
Profitability: is the ability of a business to earn a profit.