CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Generally, public relation remains a systematic and continuous process which cuts across all works of life. Michnik (Citation 2015) postulated that almost all large organizations possess public relations units or outsource public relations services to increase their human resource management performance. Public relation provides information to the management of organizations regarding policies, relationships, and communication to improve the human resource management performance (Ofuani et al., Citation 2018).Public relation entails building sustainable relations between organizations and the public to establish a brand image positively. Public relation is vital to maintain an organizations image and communicate to customers, investors, and the public.

Public relations have historical roots pre-dating the 20th century. Public relations may include an organization or individual gaining exposure to their audiences using topics of public interest and news items that do not require direct payment. The exposure is mostly media-based, and this differentiates it from advertising as a form of marketing communications. Public relations aims to create or obtain coverage for clients for free, also known as earned media, rather than paying for marketing or advertising also known as paid media.

To add, the definition of public relations according to Public Relations Society of America (PRSA) is a strategic communication process that builds mutually beneficial relationships between organizations and their publics. Most textbooks regard the establishment of the “Publicity Bureau” in Boston in 1900 as marking the founding of a public relations profession. Academics have found early forms of public influence and communications management in ancient civilizations. Aristotle’s Rhetoric, for example, explains core foundations for persuasion. Evidence shows that it continued to evolve during the settling of the New World and during the movement to abolish slavery in England. Basil Clarke is considered the founder of public relations in the United Kingdom for his establishment of “Editorial Services” in 1924.

In an effort to enhance market share and competitive performance, financial service providers (commercial banks) have applied a variety of marketing strategies, including but not limited to public relations strategies so as to create and maintain cordial and mutually-beneficial relationships with their stakeholders that will enable them thrive commercially (Anwurum, 2018; Chikwado & Tochukwu, 2018; Oti, Odigbo & Bassey, 2016). Public relations is a management function that determines the attitudes and opinions of the organizations publics, identifies its publics, and formulates and executes a programme of action to earn the understanding and goodwill of its publics (Jerman, Vukovi & Zavrnik, 2018).

 In other words, Public relations is applied by corporate organizations, including financial service providers, to manage communications with their stakeholders; build and maintain cordial relations with them and gain the goodwill of their publics in a bid to enhance corporate performance, which may be financial or non-financial. In the views of Ďurišová, Tokarčíková, Virlanuta and Chodasova (2019), corporate performance comprises financial metrics (such as gross profit, net profit, return on asset, return on equity, and return on investment) and non-financial metrics (such as customer patronage, market leadership, market share, customer satisfaction and customer retention). The corporate performance of organizations is essential to their survival and competitiveness, which is why financial service providers have applied various public relations strategies as part of their strategic communication plan. However, the focus of this study was on community relations, customer relations, and social media relations.

In the early 2000s, press-release services began offering social-media press releases. The Cluetrain Manifesto, which predicted the effect of social media in 1999, was controversial in its time, but by 2006 the effect of social media and new Internet technologies [which?] became broadly accepted by the general public.

Marketing performance is the metrics and outcomes that marketing departments look at to determine how well their marketing activities are doing at achieving the goals in their marketing plans. It’s helpful to start with a marketing performance definition. Marketing performance is the alignment between the marketing teams stated goals and objects versus actual results. It is measured using a selection of metrics and key performance indicators (KPIs), including return on investment, cost per sale, and cost per lead, conversion rate, and customer lifetime value. But those marketing metrics aren’t the only elements to consider when understanding marketing performance as a concept. In order to be successful and high-functioning, marketing departments need to focus on planning future marketing activities using predictive analytics to determine the best activities to employ. That is usually referred to as marketing performance management, and the planning and strategizing activities are typically undertaken by marketing executives, managers.

In any country, the financial services sector is typically made up of banks, trust and loan companies, credit unions, life and health insurance companies, property and casualty insurance companies, securities traders and exchanges, investment fund companies, pension funds, finance and leasing companies, insurance agents and brokers, and a myriad of auxiliary service providers, such as independent financial advisors, actuaries, and intermediaries. The General Agreement on Trade in Services (GATS) Annex on Financial Services defines a financial service as any service of a financial nature offered by a financial service supplier of a Member. Financial services include two broad categories of services: insurance and insurance-related services and banking and other financial services. These two categories are further broken down into the following:

Insurance and insurance-related services which covers life and non-life insurance, reinsurance, insurance intermediation such as brokerage and agency services, and services auxiliary to insurance such as consultancy and actuarial services.

Banking and other finance services. This category includes all banking and other financial services, such as the acceptance of deposits and other repayable funds from the public, lending of all types (e.g. consumer credit, mortgage credit, factoring and financing of commercial transaction), financial leasing, all payment and money transmission services (e.g. credit, charge and debit cards, travellers cheques and bankers drafts), guarantees and commitments, securities trading, underwriting, money broking, asset management, settlement and clearing services, provision and transfer of financial information, and advisory, intermediation and other auxiliary financial services.

The United States, the United Kingdom, Germany, and others used the concept of propaganda, which later [when?] evolved into public relations, to rally domestic support and to demonize enemies during the World Wars (compare journalism). World War I (19141918), which affected not only military but whole populations, is considered to be “modern propaganda’s launching pad”. This led to more sophisticated commercial publicity efforts as public-relations talent entered the private sector. Most [quantify] historians believe modern-day public relations was first established in the US by Ivy Lee (18771934) in 1903 when he started working as the image maker for and corporate advisor for Rockefeller. Edward Bernays (18911995), who handled the publicity of theatrical associations in 1913,[which?] then spread internationally. Meanwhile, in the nascent Soviet Russia of the 1920s, artists and poets (such as Mayakovsky engaged in public-relations campaigns for various state agencies and causes (note for example Likbez).Many American companies with PR departments spread the practice to Europe when they set up European subsidiaries in the wake of the Marshall plan of 19481952.

Additional, Bamenda is a city located in the Northwest Region of Cameroon, and as such, the effects of public relations on marketing performance in Bamenda would likely be influenced by the local business environment, cultural factors and the specific characteristics of the target market. Public relations can have a significant effect on marketing performance in any location. Effective public relations efforts can help companies build and maintain a positive brand image, establish strong relationships with the local community, and enhance their overall reputation. These factors can in turn contribute to improved marketing performance by increasing brand awareness, credibility, and customer loyalty.

In the context of Bamenda, businesses may need to consider the local cultural norms, values, and communication preferences when implementing public relations strategies. Building strong relationships with local media outlets, community leaders, and influential figures could be particularly important in this region.

Additionally, given the linguistic diversity in Cameroon, it may be beneficial for businesses in Bamenda to consider communication strategies that account for the use of multiple languages in their public relations and marketing efforts.

It’s also important to note that the use of digital media and social platforms is growing in Cameroon, and businesses in Bamenda could benefit from incorporating these channels into their public relations and marketing strategies to reach their target audience effectively.

In summary, the effects of public relations on marketing performance in Bamenda are likely to be influenced by the local business environment, cultural dynamics, and the specific needs and preferences of the target market. Businesses that tailor their public relations strategies to these unique factors are more likely to see positive effects on their marketing performance in Bamenda.

1.2 Statement of the problem

Regulatory changes: One of the biggest challenges facing the banking industry is regulatory changes. Banks must comply with various regulations, from Anti-Money Laundering (AML) to data protection laws. Keeping up with these changes can be a time-consuming and costly process, which can impact the profitability of banks.

Cyber security Risks: As banks become more digitalized, they also become more vulnerable to cyber-attacks. Cyber security risks are a major concern for the banking industry, and banks must invest heavily in cyber security solutions to protect their customers’ data and prevent fraud.

Customer expectations: As consumers become more digitally savvy, their expectations for banking services are changing. Customers now expect seamless, personalized experiences across all channels, from mobile banking apps to online portals.

Increasing Competition: The banking industry is facing increasing competition from new digital players, such as fintech start-ups and digital banks. These players are able to offer innovative products and services that traditional banks may struggle to match.

Economic Uncertainty: The global economy is facing increasing uncertainty, with factors such as political instability and trade tensions impacting economic growth. These uncertainties can impact the banking industry, as banks may face reduced demand for loans and other financial services that are major sources for banks to make money.

1.3 Research questions

1.3.1 Main Question

What is the effect of public relations strategies on the Marketing Performance of Financial Service Providers in Bamenda III Municipality?

1.3.2 Specific Questions

What is the effect of community relations on the Marketing Performance of Financial Service Providers in Bamenda III Municipality?

What is the effect of customer relation on the Marketing Performance of Financial Service Providers in Bamenda III Municipality?

What is the effect of social media relations on the Marketing Performance of Financial Service Providers in Bamenda III Municipality?

1.4 Research objectives

1.4.1 Main Objective

To assess the effect of Public Relations Strategies and the effect of Public Relations strategies on the Marketing Performance of Financial Service Providers in Bamenda III Municipality.

1.4.2 Specific Objectives

To estimate how the effect of community relations affects Marketing Performance of Financial Service Providers in Bamenda III Municipality.

 To examine how customer relations affects the Marketing Performance of Financial Service Providers in Bamenda III Municipality.

To evaluate the effect of social media Relations on the Marketing Performance of Financial Service Providers in Bamenda III Municipality.