A COMPARATIVE STUDY ON MARKETING OF FINANCIAL SERVICES IN PUBLIC AND PRIVATE SECTOR COMMERCIAL BANKS
Marketing as a concept was generally associated with tangible goods like consumer and manufactured goods. Gradually the principles of marketing were applied to businesses intangible goods also like financial services. Banks as providers of financial services had a monopoly in providing service to customers, in the early years of banking business. Even though banks had used one or two components of marketing at that time, principally they were engaged in selling of banking services. Act of selling focuses on the need of seller while marketing focuses on the need of the buyer. With the advent of barking sector reforms, the scenario of banking in the 1990s has totally changed. In order to bring efficiency, accountability and high degree of customer service, competition has been induced by granting license for banking business to new operators like private banks, local area banks, foreign banks, regional rural banks and cooperative banks. In such a competitive environment, the ability of a bank to achieve growth rate depends on how well the needs of customers are identified and effective marketing strategies evolved. This involves developing new and improved products and services, providing better amenities and facilities, exploring new distribution channels and evolving effective marketing strategies so as to continuously meet the changing customer needs.
STATEMENT OF THE PROBLEM
The Government of India started the process of liberalization and globalization of economy, especially in the financial sector with the setting up of the Committee on Financial Sector reforms headed by Mr.Narasimham to suggest reforms to make the Indian financial system more competitive and vibrant. The committee strongly recommended operational flexibility and functional autonomy to banks to enhance efficiency and productivity along with...