EFFECTS OF CORPORATE ADVERTISING ON MONEY DEPOSIT BANKS PERFORMANCE A CASE STUDY OF SELECTED MONEY DEPOSIT BANK IN AKWA IBOM STATE
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
According to Hayes (1988), although there is no consensus about a definition of the term, corporate advertising can be described as advertising efforts by corporations and industry associations to inform, educate and persuade the general public and special constituent groups about business’s views, images, or activities. Unlike advertising which has the common objective of selling a product, corporate advertising can incorporate many company objectives, not excluding the promotion of a targeted product. This hybrid form of advertising, which combines the talents of advertising and public relations professionals, has been described as a new genre of advertising that blends corporate and long-term product sell. Simultaneously, it has also become a tool for attempting to influence public opinion and public policy. Goodwill image advertising can be the sponsorship of a consumer education booklet or the company logo after a public television program. The goal is to promote a positive outlook toward a corporation. Building a “good neighbor” image is perceived as building a sound reputation which maintains customer goodwill. Here, corporations also often promote activities that would encourage a positive corporate image. Identity image advertising is used to overcome low awareness levels or for projecting a new identity in order to attract and keep customers and skilled employees. More recently it has been a response to the economic environment of divestiture, deregulation, merger and acquisition. Corporations are relying on identity advertising to differentiate themselves from competitors, to support “corporate missions” and to encourage financial analysts to understand company philosophies and business interests. Presentations of the corporate “essence” have become so popular that observers have called it an exercise in “corporate vanity”. Crisis management image advertising is to rectify a given emergency situation or to counteract the spread of anticorporate information; for example, McDonald’s advertising which sought to convince consumers that the company does not put chopped worms in its hamburgers, or Procter & Gamble’s reputation of its satanic connections. This type of advertising would also include corporate responses to disasters. Advocacy Adversary, issue, controversy, and advertorial advertising are all terms for advocacy advertising. This type of corporate advertising is different from the image category in that it addresses controversial issues in a way that supports the position and interest of the sponsor while denying the accuracy of facts from the sponsor’s opponents. Its main goal is to generate public support for corporate positions on crucial issues. In an historical context, advocacy advertising can be viewed as corporations’ response to their perception of the late 60s: a hostile press, threats of government regulation and environmental and consumer groups (Hayes, 1988).
1.2 Statement of Problem
Adequate emphasis has not been laid by banks in terms of promoting a favourable corporate image and this attitude has affected their performance in the market, more so, in the face of the prevailing staff competition among banks. The environment in which banking business operates is in constant change and it constitutes an important factor in that it affects management decision and actions. For any business, two types of environment exist. The operating environment which may be classified into external forces comprising economic, social, political, cultural, governmental, technological; internal forces comprising the top management, the employees, and the task force; and the public environment which is made up of the bank’s several policies. The environment within which banks operate today does not help matters at all due to the negative issues emanating from the business environment. One example is the moral decadence that has pervaded the entire society. The society now place great emphasis on money without any concern for the source or the mode of its acquisition. This has bred corruption.. Aside from the influence of the environment, the image of the bank is another factor that requires consideration. The type of image which the bank projects, is an important determinants of its long run existence and performance. Most banks portray negative image to the public. There are however, a number of factors that have contributed to the poor image of banks and they are summarized below:
- a) The general atmosphere of moral decadence, which the Nigerian business environment presented.
- b) The greed of many players in the sector.
- c) The liberalization of the sector and the corresponding upsurge in the number of banks led to the over stretching of the limited number of qualified personnel in the industry.
- d) Pressure from managements in haste to impress their shareholders with impressive results. Such pressure results in the setting of unrealistic and unattainable targets for staff who are often forced to meet such targets by any means under the guise that “the end justifies the mean”.
e)The stiff completion in the sector has led to practitioners cutting corners in order to outwit each other thereby paying less attention to ethics and professionalism.
- f) Boardroom squabbles which sometimes end up in courts and earn the bank negative publicity in the media.
g)Inadequate attention to good corporate governance.
1.3 Objectives of the Study
The study intends to achieve the following objectives:
- To find out the ways in which corporate advertising contributes to the improved performance of money deposit banks
- To determine the strategies for building, managing and promoting a favorable corporate image in money deposit banks.
- To find out the challenges to corporate advertising in money deposit banks.
- To find out the possible solutions to the challenges of corporate advertising in money deposit banks.
1.4 Research Questions
The following research questions were formulated based on the objectives of the study:
- What are the ways in which corporate advertising contributes to the improved performance of money deposit banks?
- What are the strategies for building, managing and promoting a favourable corporate image in money deposit banks?
- What are the challenges to corporate advertising in money deposit banks?
- What are the possible solutions to the challenges of corporate advertising in money deposit banks?
1.5 Statement of Hypothesis
As a guide to achieve the objectives of the study, the following hypothesis were formulated:
- Ho: Enhancing customer satisfaction, promoting customer loyalty and increasing patronage are not the ways in which corporate advertising contributes to the improved performance of money deposit banks.
Ha: Enhancing customer satisfaction, promoting customer loyalty and increasing patronage are the ways in which corporate advertising contributes to the improved performance of money deposit banks.
- Ho: Good reputation, good public relations with customers and delivery of quality services are not the strategies for building, managing and promoting a favorable corporate image in money deposit banks.
Ha: Good reputation, good public relations with customers and delivery of quality services are the strategies for building, managing and promoting a favorable corporate image in money deposit banks.
- Ho: Poor public relations, bad reputation, poor service quality and ineffective corporate governance are not the challenges to corporate advertising in money deposit banks.
Ha: Poor public relations, bad reputation, poor service quality and ineffective corporate governance are the challenges to corporate advertising in money deposit banks.
- Ho: Good corporate image and reputation, effective corporate governance, delivery of quality services and establishment of an effective public relations unit are not the possible solutions to the challenges of corporate advertising in money deposit banks.
1.6 Significance of the Study
It is believed that this research work will be beneficial to money deposit banks in the following ways
- It will reveal how good corporate image and reputation impacts on the performance of money deposit banks.
- It will make known the ways corporate advertising contributes to the performance of money deposit banks.
- It will help in identifying the challenges to corporate advertising in money deposit banks and the possible solutions.
- The study will serve as a useful reference material to other individuals and students seeking related information.
1.7 Scope of the Study
This research work centers on the effects of corporate advertising on money deposit banks performance a case study of selected money deposit bank in Akwa Ibom state
Also included in the scope are:
- Four variables as listed in the research questions.
- The use of questionnaire as instrument of data collection.
- Use of descriptive statistics
- Seventy respondents
- The use of Chi-Square statistics
1.8 Limitations of the Study
The study was limited by the following factors:
Financial Factor: Inadequate funds affected the way data were collected since the researcher had to travel long distances for the distribution of the research questionnaire forms.
Time Factor: This affected the reduction in the size of the sample used for the study because the researcher had less than two months to complete the study.
Material Factor: Shortage of relevant materials for literature review posed a great difficulty.
The study was also limited to the information gathered from primary and secondary records.
1.9 Organization of the Study
In this research study, the researcher took a critical look at the effects of corporate advertising on money deposit banks performance a case study of selected money deposit bank in Akwa Ibom state. The research work was divided into five chapters.
Chapter one was on the background of the study, as well as statement of the problem, objectives of the study, research questions, statement of hypothesis, significance of the study scope and limitation of the study, organization of the study and definition of terms.
Chapter two reviewed the related literature on the subject matter and contributions of different authors.
Chapter four takes care of the data presentation, analysis and interpretation as well as discussion of findings.
Chapter five (5) encapsulates the summary, findings, conclusion and recommendations made by the researcher.
1.10 Definition of Terms
Advertising: The act or practice of calling public attention to ones’ product or services.
Corporate image: The way an organization is presented to or perceived by its members and the public.
Corporate advertising: Advertising that is more public relations than sales promotion. Its objective is to build a firm’s corporate image, reputation, and name-awareness among the general public or within an industry.
Performance: The actual output or results of an organization as measured against its intended outputs.
EFFECTS OF CORPORATE ADVERTISING ON MONEY DEPOSIT BANKS PERFORMANCE A CASE STUDY OF SELECTED MONEY DEPOSIT BANK IN AKWA IBOM STATE
