AcomparativeanalysisofstrategicmarketingplanningadoptioninNigerianbankingandinsuranceindustry

1、african research reviewan international multi-disciplinary journal, ethiopiavol. 3 (5), october, 2009 issn 1994-9057 (print)issn 2070-0083 (online)a comparative analysis of strategic marketing planning adoption in nigerian banking and insurance industryolujide, jackson o. - department of business ad

2、ministration, faculty of business and social sciences, university of ilorin, p.m.b. 1515, ilorin,kwara state, nigeria.e-mail: olujack52yahoo.co.ukgsm +234 7034067127aremu, mukaila a. - department of business administration, faculty of business and social sciences, university of ilorin, p.m.b. 1515,

3、ilorin, kwara state,nigeria.e-mail: aremuilalaa, .nggsm no: +2348036718531abstractstrategic marketing planning has become key success and survival factor in service organisations because its adoption contributes immensely to the achievement of key success and survival variables

4、 such as' customer satisfaction, increased market share, improve productivity, financial performance and profitability, etc. the current economic reforms in nigeria have opened up service organisations to private sector participants in order to reduce considerably service costs and thereby makin

5、g them more competitive and development oriented. data for this study were obtained from 589 respondents in selected banking and insurance firms through questionnaire administration. the differences between the two groups with respect to their approaches to strategic marketing planning were examined

6、 using anova. the result of the investigation shows that strategic marketing planning is responsible for about 43.6% in the variation of the performancecopyright © iaarr 2009:182indexed african journals online: african research review vol. 3 (5), october, 2009. pp. 182-198of the se

7、lected banks and 32.3% in the variation of the organizational performance of the selected insurance companies. this is an indication that there is significant relationship between strategic marketing planning and performance but that of banks is stronger than insurance companies. the paper recommend

8、s that banks and insurance organizations must commit adequate resources into strategic marketing planning activities in order to increase the current level of performance.key words:strategic marketing planning, service industry, organizational performance, marketing mix, top management commitment.in

9、troductionthe complex condition of modern business and the increase in almost all aspect of service operations has compelled the marketer of service to place emphasis on the efficient and effective method of presenting their services to their numerous customers. the need for strategic marketing plan

10、ning in service industry cannot be over emphasized. henceforth, effective strategic marketing provide solution and alternatives to the problems encountered by most service organizations in marketing of their service. in order to ensure effective and efficient strategic marketing of their services, t

11、he management must accept marketing as the core of the whole service operations.increasingly, national and international business marketers realize that competitiveness is the key to staying in business in today's rapidly changing marketplace. to be competitive, long-range planning and customer

12、satisfaction must be integrated into the company's strategic management objectives. in order to deal with this challenge, an organization must develop an effective marketing policy. a marketing policy should not simply consist of a set of data about a company's current and projected market s

13、hare and sales volume in order to determine its future performance. rather, it should take into consideration the needs and demands of customers, us society, and the global community have integrated them in a way that defines business reality. there is a strong need for a policy that should link the

14、 company's vision, mission, operating principles and quality values into one closely-knit totality with its main focus to satisfy the needs of current and future customers and society. henceforth, service provider must to check regularly that they are offering technically sophisticated, up-to-da

15、te, user-friendly and value-adding activities in line with or superior to others in the market place (sally, 2004).copyright © iaarr 2009:183indexed african journals online: a comparative analysis of strategic marketing planning . in nigerian banking and insurancethe causes of econ

16、omic crisis in nigeria can be traced to the two main sources: fundamental economic problems and defective macroeconomic policy pursuits. economic reforms particularly what came to be tagged structural adjustment programme have almost seen mounted in response to national financial distress whose foun

17、dation could be traced to the latter macroeconomic distortions (world bank 1986). this perhaps could explain why economic reforms are seen as pursuits of market liberations, which focus on extensive privatization of state owned enterprises, with the government limited provision of the right enabling

18、 environment for a private sector led growth. henceforth, at the heart of any economic reforms there is need to address strategic marketing planning for these organisations in order to equip them to spearhead the process of a private sector led growth in nigerian economy.the severe crisis in the nig

19、erian service industry for over a decade now has resulted into organisational failures, poor performance, inability of service firms to realize enough saving and inability to supply adequate credits facilities to the real sector of the nigerian economy. suddenly, arising from this crisis the nigeria

20、n monetary authorities have declared 'a state of emergency' particularly in the banking sector. on july 4th 2004, the cbn governor prof. charles soludo announced to the nigerian bankers that the government is set to uphold a new benchmark to the tune of #25 billion as the required capital ba

21、se for emerging commercial bank in nigeria before december 31st 2005.in pursuance of the economic reforms agenda for which the needs document has been written to guide the nigerian development effort, regarding one of the goals of the strategic agenda which is service delivery, companies engaged in

22、life insurance business are required to increase their capital base from the former n150m to n2 billion. companies engaged in general insurance are required to share up their capital base from n200 million to n3 billion and those classified as composite insurance companies are to increase theirs fro

23、m n300 million to n5 billion while re-insurance companies are to scale up their capital base from n350 million to n10 billion.most service organizations now find that they have more competitors than ever before, especially from companies based in other countries. in addition, competitors are launchi

24、ng new products and services more often. pricing is complicated by more frequent and larger currency shifts. tastes and needs ofcopyright © iaarr 2009:184indexed african journals online: african research review vol. 3 (5). october, 2009. pp. 182-198customers seem to change all the

25、time. also, there are series of government policies that are affecting either negatively or positively the operations of service industries in nigeria. these trends are expected to continue. in response, some organizations have established elaborate processes for tracking and forecasting the environ

26、ment and developing plans to respond quickly to unexpected shifts. other service organizations are doing elaborate scenario development to create plans to weather the unexpected. with neither process approach, however, can an organization hope to leapfrog ahead of the competition by taking actions t

27、hat regularly create new sustainable advantages translating into larger revenue and profit margin. this call for an effective strategic marketing planning that will guide the service organizations to cope with these challenges. although, nigerian service sector has gone through series of reforms, it

28、 has failed to achieve the objective of service development due to lack of focus and commitment by the managers to inculcate strategic marketing planning in the management of the service firms in this country.there is a strong need for this investigation given the enormity of the problem facing the

29、service industry in this country. the objectives of this investigation are:i.to empirically measure the links between strategic marketing planning in the selected service organizations and organizational performance.ii.to examine the commitment of top management on the importance of strategic market

30、ing planning in the service industry.iii.to examine whether the adoption of strategic marketing planning by the selected service organisations in the service industry is relevant to their survivals and continuity or not?theoretical frameworkin recent years the concept of strategic marketing planning

31、 has become an area of research with a promising future in marketing. at present, the processes of competence and sustainable competitive advantage represent the essence of the literature on "strategic marketing planning'". in fact, reflections regarding the nature of strategy in marke

32、ting and its relation to strategic marketing planning, has lead to the widening of the concept of this discipline to such an extent that the role of competitiveness is now considered explicitly in decision making in marketing (day and wensley, copyright © iaarr 2009:185indexed african journals

33、online: a ('ompararlive analysis of strategic marketing planning . in nigerian banking and insurancemoore, 1978). knowledge of patterns of rivalry, which at the same time presents the competitive advantage (cunningham and culligan, 1988; easton, 1988) is necessary for research into

34、any competitive process. they are all apparent as far as strategic marketing planning is concerned.in this sense, the analysis of strategic marketing planning has significant implications for marketing. the possibility of providing a different point of view for identifying an organization's comp

35、etitive position by suggesting a systematic way of valuing strategic capacities (analysis of strengths and weaknesses) in terms of relative competitive advantage stands out. consequently, this concept represents an indispensable element in the analysis of competitiveness in marketing insofar as it a

36、llows the organization's competitors within the market to be identified. it may also estimate the intensity of the competition and examine the development of the market structure in terms of the industry and product's life cycle and obtain competitive advantages over the competition, etc.the

37、 service industry is undergoing a metamorphosis at rapid pace, identification and investigation of research issues with respect to strategic marketing planning in the service industry assumes paramount important. many leading nigerian business magazine like business today, business times, etc. have

38、of late started ranking the service industry on several criteria such as operational ratios, profitability ratios, productivity ratios, financial parameters, net profits, total assets, advances and total deposit. (tell 2006 and business today 1999). these rankings were essentially based on financial

39、 aspects rather than on the nature and level of service quality delivered. therefore, an analysis of service industry in nigeria from strategic marketing planning perspective may sound interesting at this juncture. this investigation is vital for the service operators in order to enhance their busin

40、ess performance.there is considerably lack of literature with respect to strategic marketing planning especially in the service industry of developing economies. this paper attempts to bridge this gap and critically examines the service industry in developing nation with nigeria as the reference poi

41、nt. it has also been noted that considerable information exists about the bank industry in developed economies like usa and euorpe, but there is an insufficient of knowledge with respect to the banking in developing economies (kassemcopyright © iaarr 2009:186indexed african journals online: www

42、.african research review vol. 3 (5), october, 2009. pp. 182-1981998, yavas et al 1997 and angur et al 1999). this present investigation is also an attempt to fill this void.the concept of strategic marketing planningstrategic marketing planning means assessing and appraising marketing oppor

43、tunities, adjusting ones products and services to meet the demands of the market. "roller (2005). production of new products, modification of existing products, altering prices and receding, containers broadening and in some instances trembling services are some of the means in which strategic

44、marketing can be practiced. in sum, strategic marketing planning is the anticipation and evaluation of market developments and deciding in advance how best to approach the emerging situation.strategic marketing planning establishes relationship between the firms and its environment, its primary aim

45、is to enable the firms to develop and maintain a variable means of goods and services to be offered in the market place which involves decision about raw materials, the production processes, product design, distribution channels and most vital financial consideration.strategic marketing planning inv

46、olves four steps in implementation; the steps are as follows;conduct a situation analysisdetermine the marketing objectivesselect target market and measure market demandsdesign strategic marketing mixsituation analysis: this is a major aspect of strategic marketing planning. the present and past sit

47、uation analysis of a firm is very useful in developing strategic marketing planning for the future. situation analysis is the review of the company's existing marketing programs, where the program is at present and where it will be in future. this is the aspect of strategic marketing planning th

48、at provides information on the current situation of the firm and the product or services provided. the situation analysis of a company includes;v product situation analysis that gives the information on the product sales, product prices, product quality and the net -profit.copyright © iaarr 200

49、9:187indexed african journals online: a comparative analysis of strategic marketing planning.v market situation analysis that shows the size, growth, extent and characteristics of market.v competitive situation analysis identifies and compares the major competitors in terms of size, goa

50、ls, market size, product quality, market strategies and other characteristics that are needed to understand their inventions and behavior.v distribution analysis that present data on the size, type and importance of each distribution channel like one channels two channels or null channel.v micro env

51、ironmental situation analysis that includes demography, economic, technological, political, socio-cultural, socio-technical etc.market objectives: this is the cornerstone of all-strategic marketing planning; objectives are needed so that everybody knows exactly what is required. objectives are known

52、 as the ends that state specifically how the goals of an organization shall be achieved. they are concrete and specific in contrast to goals, which are generalized, objectives makes goals operational, objectives are mainly quantitative in specification, they are measurable and comparable.target mark

53、et: target market is a fairly homogenous group of customers to whom a company wishes to appeal. this is where a particular segment is selected as a focus for specific marketing activity. it will enable the firm to decide the extent to which it will segment its' market and also forecast sales in

54、its target market.marketing mix: these are controllable elements or variables the company puts together to satisfy this target market. it includes place, price, product and promotion. the design and implementation of the marketing mix elements constitute the bulk of company's marketing effort. t

55、he consumer is not part of marketing mix, product is concerned mainly with developing the right products for target market which may involve a physical good, a service or a blend of both. place is concerned with getting the right product to the target market place. a product is not much good to a cu

56、stomer if it is not available where and when it is wanted. it reaches customers through a distribution channel.copyright © iaarr 2009:188indexed african journals online: african research review vol. 3 (.1). october, 2009'. pp. 182-198promotion is concerned with the target marke

57、t about the right product, it includes personal selling, mass selling and sales promotion, and this is the job of marketing manager.price involves the decision on the right price, considering the kind of competition in the marketing cost of the whole marketing mix. also they must estimate customer r

58、eaction to possible prices. finally, they must know the current practices as to mark ups, discounts and other terms of sales.methoddata was collected using "personal-contact" approach i.e. the respondents were approached personally where they are accessible and the questionnaire was distributed i ' mi.idle and top level executives of the selected service industry and were a>kol to indicate their organisations' position on the level of strategic marketing planning in their service organization with respect to each item on a seven point likert scale (from 1 indica