AN EVALUATION OF THE INFLUENCE OF MARKETING STRATEGIES ON THE PERFORMANCE OF THE BANKING SECTOR: A CASE STUDY OF ACCESS BANK, CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background to the Study Before the mid-1950s, marketing was predominantly associated with the production and distribution of manufactured goods, with little relevance to the banking sector. Banks did not consider marketing a core aspect of their operations. However, towards the end of the 1950s and into the early 1960s, the scope of marketing expanded to include service-based industries, prompting a gradual shift in how banks perceived its relevance (Dalrymple & Parsons, 1990). Since then, marketing has come to be regarded as a strategic, all-encompassing function involving the careful analysis, planning, and management of a bank’s interaction with the broader market. In the current competitive business environment—where banks and financial institutions contend for market share—the sustainability and growth of banking institutions increasingly depend on the effectiveness of their marketing efforts in delivering value-driven services to customers. The marketing department of a bank plays a critical role in evaluating the effectiveness of service delivery. According to Dalrymple and Parsons (1990), marketing is fundamentally about identifying consumer needs and fulfilling them in a manner that ensures customer satisfaction. The American Marketing Association further defines marketing as a structured process involving the conceptualization, pricing, promotion, and distribution of ideas, goods, and services to meet individual and institutional goals. Consequently, in order to secure deposits, raise capital, meet customer expectations, and improve operational efficiency—such as returns on investment and cost management—banks must continually adopt innovative marketing strategies. Furthermore, effective marketing management within banks requires clearly defined staff responsibilities and collaboration across departments to reduce operational conflicts and promote seamless service delivery. A bank is best understood as a financial intermediary that mobilizes funds from surplus economic units and channels them to areas of deficit, thereby facilitating economic growth and development. Within this framework, a marketing unit becomes indispensable to achieving a bank’s mission by applying strategic tools like the marketing mix. Marketing in banking is centered on satisfying customer needs and plays an essential role in the survival and success of banks, particularly in today's highly competitive financial environment. As Drucker emphasized, and as cited in Mohan and Kotler (2018), marketing is not just a functional unit of an organization but the very essence of its existence—viewed through the lens of customer satisfaction. For a bank to survive and grow, it must effectively offer value in exchange for customer patronage by meeting their expectations through reliable products and services. Moreover, this exchange can only be successful if the bank possesses the capacity to deliver offerings that resonate with its clientele. Traditional marketing models emphasized maximizing consumption of products and services; however, contemporary approaches focus more on optimizing customer satisfaction. Adopting a customer-centric marketing approach enables banks to establish long-term loyalty and relevance. Since marketing operates on the premise that people are motivated by their needs and desires, and continuously seek ways to satisfy them, a bank that aligns its operations with these motivations stands to gain a competitive advantage. Kaftandjiev & Shustiva (2018) argue that prioritizing customer satisfaction is fundamental to institutional success and longevity. Accordingly, it is important to assess how marketing concepts, including market segmentation and customer-focused strategy, shape bank operations and contribute to organizational objectives. In light of this, the present study seeks to examine the impact of marketing activities on the banking sector, using Access Bank Cameroon as a case study. 1.2 Statement of the Problem Marketing has long been acknowledged as a significant influence on the development of the banking sector globally, and Cameroon is no exception. In the contemporary banking landscape, marketing serves as an indispensable tool for attracting customers and promoting a bank’s array of financial products and services. It is widely regarded as a primary mechanism through which banks satisfy their clients and stakeholders. Effective marketing ensures that these financial services reach the intended audience and are well understood. However, the rise of globalization has introduced intensified competition from international banks operating in Cameroon, compelling local institutions to develop robust marketing strategies and departments to remain viable. As Shohreh & Peyman (2018) observe, the era when customers passively sought banking services is long gone. Today, banks must actively reach out to consumers using innovative marketing tools and approaches to expand their market share and create awareness about their offerings. This entails not just informing potential clients but also engaging and educating them about the value and utility of available products. Lin and Wang (2018) highlight marketing as the vital conduit linking customers to the services banks provide. Therefore, for banks to thrive, they must abandon traditional, static marketing methods in favor of dynamic, audience-centered strategies that resonate with their target demographics. The emergence of new, more agile financial service providers—both local and foreign—has further increased competition in the banking industry. To compete effectively, banks must ensure that their marketing strategies align closely with customer needs and expectations. This alignment is essential for driving revenue, enhancing customer loyalty, and achieving long-term sustainability. Accordingly, this study aims to evaluate the influence of marketing activities on the performance of the banking sector, with particular focus on Access Bank Cameroon. 1.3  Objectives of the Study The main purpose of this study is to evaluate the Influence of Marketing Strategies on the Performance of the Banking Sector: A Case Study of Access Bank, Cameroon.  Specifically, the study will; i.Ascertain the marketing strategies adopted among banks in Cameroon ii.Evaluate the effectiveness of bank-marketing strategies in attracting and retaining customers. iii.Assess the impact of bank marketing activities on its performance  iv.Identify the factors affecting the effectiveness of banks marketing activities in Cameroon 1.4 Research Questions The following questions have been prepared for the study: i.What marketing strategies are being utilized by banks in Cameroon? ii.How effective are bank marketing strategies in both attracting and retaining customers? iii.What is the impact of bank marketing activities on the performance of banks in Cameroon? iv.What factors contribute to the effectiveness of marketing activities among banks in Cameroon? 1.5  Research Hypothesis H0: There is no significant impact of marketing activities on banking sector Ha: There is a significant impact of marketing activities on banking sector. 1.6  Significance of the Study  The findings of the study will help banks refine their marketing strategies to attract and retain customers, improve brand perception, and ultimately increase profitability. Further more, it will help customers make more informed decisions about where to bank and where to invest by helping them comprehend the value propositions offered by various banks. It will also clarify how marketing affects their attitudes and actions. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of talent management on the performance of the employee: A case study of selected banks in Douala, Cameroon. 1.7 Scope of the study The scope of this study is boarded on the Influence of Marketing Strategies on the Performance of the Banking Sector: A Case Study of Access Bank, Cameroon. Empirically, this study will ascertain the marketing strategies adopted among banks in Cameroon, evaluate the effectiveness of bank-marketing strategies in attracting and retaining customers, assess the impact of bank marketing activities on its performance and identify the factors affecting the effectiveness of banks marketing activities in Cameroon. Geographically, the study will be delimited to employees of Access Bank  in Douala, Cameroon. 1.8 Limitation of the study In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.  More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.  1.9 Definition of Terms Marketing: is the process of promoting, selling, and distributing products or services to consumers or businesses. It involves various activities such as market research, advertising, branding, sales, and customer relationship management. Banking sector:  these are financial institutions that provide banking services such as accepting deposits, lending money, and facilitating financial transactions. It includes commercial banks, investment banks, credit unions, and other financial intermediaries.