CHAPTER ONE
1.0    INTRODUCTION
1.1    BACKGROUND TO THE STUDY
This research is an attempt to disapprove the pervasive notion that marketing is relevant only to the selling of physical end tangible products.
The nation was due to the fact for that for a long time, financial institution was a seller market where the buyer had to seek in some cases forming the impression that it was a privilege for him enjoy the service of a bank or other financial institutions.
Financial institution can be defines as any establishment or organization responsible for providing financial services to their customers the government as well as the general public. These financial services include acceptance of deposits given of loan, stocks and bonds where life assurance e.t.c Institution covered under the term financial institution includes the Banks, institution forms, store Broking forms investment house, discount house e.t.c.
In the past years, before the advent of financial institution, particularly Banks that were established in Nigeria.
Nigerians have ways of keeping their valuable like jewelries and money at home or in their farms. In a report carried out a statement was made by CBN official Dr. Victor Odoze published by new Nigerian newspaper on 17th January 1993 that Nigerians do not keep their money in Banks. He also spoke in details that a total N3.777 Millions or 89% of currency issued was being kept at home by people or in the private safes of individual Nigerian as at July ending 1981.
Today, things have changed the financial institution in general and the banks in particular have witnessed and still witnessing rapid changes in their operational environments. This modern banking industry is required those who are in the industry. (The bankers) to look into well stocked shelves of services that they have offer and out to approach the clients to whom such services can be sold.
As result of changes in the banking industry and commerce generally coupled with the government effort at influencing the state of the economy. The marketing environment of the banking industry is responding to the changes. There must be a quiet banking to a more purposeful banking.
Since marketing involves findings out that consumer’s need and providing product that will satisfy those needs at a profit, then financial institution must respond to a new way of the changes in their environment by fashioning out new practice and investment to meet their customers’ needs.     
1.2    STATEMENT OF THE PROBLEM
In the past years marketing had been neglected in the financial institutions particularly in the banking industries due to the nature of services they offered, which is intangible product. This has created a lot of problems for them since they face competition from other financial institutions.
In service industry, generally the practice of marketing is not enough. It is viewed that there is no need to apply marketing principles. This may be due to their ignorance of what marketing is and its important to the economy. The categorized marketing as selling and they feed to understand the real meaning of marketing.
The general statement of problem of the study is as follows:-
(1)    How do the customers get to know about the financial institution of their choice and which of the selected financial institution is mostly patronize?
(2)    Do the customers always the services being rendered to the financial institution?
(3)    What encourage the customers to keep on patronizing the financial institution?
1.3 OBJECTIVES OF THE STUDY
The objectives of this study is to examine the importance of applying marketing principles and techniques in the services of financial institution to attract and retain their customers, their services must develop and marketed to satisfy the existing customers and attract new ones.
Specifically the objectives of this study are as follow:
(a)     To know the use of marketing concepts has been adopted by the financial institution so as to ensure customers satisfaction towards their services.
(b)    To determine and examine how to marketing mix as well as market segmentation used by financial institution have influenced customers’ patronage.
(c)    To know the impact of marketing on the services of financial institution.
1.4    SIGNIFICANT OF THE STUDY
The research is significant to the researcher, the organization under study the industry it belongs the customers and society at large.
It is significant to the researcher because it is require in partial fulfillment of the requirement for the award of National Diploma (ND) in business studies. It is significant to the organization under the study (CBN) and the banking industry as a whole because the adoption of marketing concept by banking will help in ensuring costumers satisfaction and also enhance a beneficiary relationship between bankers and costumers.
The researcher is of significant to the society at large because the adoption of marketing techniques in the service of financial institution will acceptance investment, in addition this research work is also of significant to the society at large due to the market exchange process.