Literature Review

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Marketing by service industries are yet to gain momentum, especially when it comes to marketing by comniercial banks. In India, the liberalization of the financial sector has impelled all the players to redefine what business they are in and strategically think how to stay ahead in the existing business. Marketing orientation of banks is imperative for survival and success.

Marketing of financial services by banks is under active and extensive discussion among academicians and bank personnel. Survey and research have been conducted both by academic researchers and practitioners on the various aspects of services marketing in general and financial services marketing by banks in particular both in India as well as abroad.

Sewice Marketing
A study by George William R and Hiran C Barksdale (1974) on the marketing activities in the service firms discovered that services marketing is generally on the low ebb. Service firms tend. to be less marketing oriented; less likely to have marketing mix activities car:ried out in the marketing department; less likely to perform analysis in the area of service product; more likely to undertake advertising internally rather than go to specialized advertising agencies; less likely to have overall sales plan; less likely to develop sales training programmes; less likely to utilize the 55 -- Review of Literature

services of marketing cons~i l t ant s and marketing research firms; and less likely to spend much on marketing, as a percentage of gross sales.'
Study by Bessom, Richard M and Donald W Jackson Jr (1975) of 400 service and marketing firms revealed that service firms are less likely to have marketing departments, to make use of sales planning and training, and to employ marketing professionals like consultants, advertising firms and market research agencies.' James F Devlin (2000) studied as to how attempts c an be made to add value when offering services exhibiting increased complexity, intangibility and impalpability in the eyes of most consumers. It was found that the features and quality of the core service provided are judged by managers t o b e more important in adding value to more complex services; as are organizational factors such a s image and reputation. In addition, price i : j perceived to be significantly more important in adding value to more simple, rather than complex, offerings.3

Characteristics of Services
Anne M Smith (1990) studied way the four distinguishing characteristics of services-intangibility, inseparability, heterogeneity and perishability affect clients' perceptions of quality service from banks. The study revealed that intensifying competition and increasing customer expectations have created a climate where 'quality' is considered t o be a major strategic variable for improving customer satisfaction and thus the profitability of financial service providers.4 Financial Services Marketing

Sankaran M (1999) studied the measures that would help domestic players in financial services sector to improve their competitive efficiency, and thereby to 56 Review o f Literature

reduce the transaction costs. The study found that the specific set of sources of sustainable competitive adv,mtage relevant for Financial Service Industry are: a) product and process innovations, b) brand equity, c ) positive influences of 'Communication Goods ' , d ) corporate culture, e ) experience effects, f) scale effects, and g) information technolog!/.

Trevor Watkins (1989) while studying the current state of the financial services industry worldwide identified four major trends: (1) the trend towards financial...
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