MARKETING OF BANKING SERVICES.
1. Introduction. Bank Marketing. Why Bank Marketing. Features of Bank Marketing. Services. Characteristics of Services. Difference between Product and Services.
2. Marketing. Features. Marketing of Tools and Techniques. Marketing Mix in Banking. Growth of Service Market. Marketing Approach in Banks. 3. Justification for Marketing the Banking Services. Satisfaction of Customer Needs. Bank Marketing in the Indian Perspective. 4. Articles. Summary Conclusion.
Shyamji Mehrotra. A Marketing person without adequate marketing skills will destroy sales instead of increasing it.Marketing of financial products need not only selling skills, but adequate knowledge about banking world also. A good salesperson require right soft skills like positive attitude, good communication etc. “Nothing happens in a company unless a product or services is sold, Everything else is cost.”
The ongoing process of economic reforms has completely changed the operational environment for the whole banking industry in the country. Banks are now required to cope with stiff competition in business and also the complex regulatory norms regarding capital adequacy and provisioning. Banks are forced to adopt various marketing techniques and approaches. Thus, marketing has become imperative for all banks including those in the public sector. Marketing in banks can be stated as a new phenomenon that is shaping well over the past one decade. Public sector bank hardly considered marketing as a tool for business. The competition, deregulation that followed the reforms has changed the environment for banks, where marketing has occupied the place in the business of banks. Today, marketing in the banking industry is characterized by many innovations in products and services, use of advanced technology in product design, up gradation of delivery system, advertising and sales promotion activities, whether in public sector or private sector. Banks now have a firm that marketing strategies alone can brighten the future of banking business. Marketing in banks has become synonymous with customer and banks are found engaged in several activities of discovering, creating and satisfaction customer needs. Indian banking is at cross roads today. With the deregulation and liberalization process in full swing, the consequent policy changes introduced in the Indian financial system in general and banking in particular are effecting unprecedented changes in its functioning. With the emerging changes did spring up new challenges of commercial viability, cost effectiveness, effective marketing strategy, etc.Market oriented policies also gave birth to new players like foreign and private sector banks and subsidiaries offering varied high tech and cost effective Service. There was an absolute shift from sellers into buyers’ market, establishing the ‘consumer’ as the key factor in the market. The dictum “as the bank exists because of its customers, has become more pronounced and relevant in the present context”. Thus, marketing constitutes the key strategy for banks to retain good customers and also anticipate their future demands.
Deryk Weyer of Barclays Bank call it “a process, consisting of identifying the most profitable markets now and in future; assessing the present and the future needs of the customers; setting business development goals and making plans to meet them; and managing various services and promoting them to achieve the plans – all in the context of a changing environment in the market”.
Why Bank Marketing?
Awareness among Customers Modern technology has made customers aware of the developments in the economic environment, which includes the financial system. Financial needs of the customers have grown multifold into various forms like quick cash accessibility, money transfer, asset security, increased return on surplus funds, financial advice, deferred...
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