Marketing in Banking
MARKETING OF BANKING SERVICES IN RURAL AREAS
Banks today are operating in a highly competitive and rapidly changing environment. In the changing economic scenario, a professional approach to business development is essential and the survival of a banking institution depends on its ability to take up challenges coming up in the environment. Developing business through marketing of bank’s services is one of the crucial areas which need attention of the bankers to ensure profitable survival.
MARKETING : CONCEPTS
The role of marketing in an organisation’s existence and growth need not be overemphasized in today’s competitive environment. According to Peter Drucker, “marketing is so basic that it cannot be considered a separate function”. It is the whole business seen from the point of view of its final result, that is, customer’s point of view. Survival of an organisation depends upon its ability to acquire resources necessary for its sustenance. One of the modes of survival, as observed by Philip Kotler, is “exchange”, whereby an organisation creates and offers goods and services that are able to attract and satisfy the purchasers, in exchange of its value. This option can be gainfully exercised only if the organisation develops the capacity to produce the needed goods and services. The organisations should be geared to identify the customer needs and preferences which are subject to change over a period of time.
One of the policy issues discussed in marketing is the ultimate objective of the marketing efforts of an organisation. The general belief is that the objectives of marketing is to maximise the market’s consumption of your products and services. However, it would be desirable to set the goal at maximising consumer satisfaction, rather than consumption. The organisation, in the long run, is likely to benefit from a customer oriented approach to marketing. The approach, in other words, should ensure strong foundation for the institution’s existence,
Banks today are operating in a highly competitive and rapidly changing environment. In the changing economic scenario, a professional approach to business development is essential and the survival of a banking institution depends on its ability to take up challenges coming up in the environment. Developing business through marketing of bank’s services is one of the crucial areas which need attention of the bankers to ensure profitable survival.
MARKETING : CONCEPTS
The role of marketing in an organisation’s existence and growth need not be overemphasized in today’s competitive environment. According to Peter Drucker, “marketing is so basic that it cannot be considered a separate function”. It is the whole business seen from the point of view of its final result, that is, customer’s point of view. Survival of an organisation depends upon its ability to acquire resources necessary for its sustenance. One of the modes of survival, as observed by Philip Kotler, is “exchange”, whereby an organisation creates and offers goods and services that are able to attract and satisfy the purchasers, in exchange of its value. This option can be gainfully exercised only if the organisation develops the capacity to produce the needed goods and services. The organisations should be geared to identify the customer needs and preferences which are subject to change over a period of time.
One of the policy issues discussed in marketing is the ultimate objective of the marketing efforts of an organisation. The general belief is that the objectives of marketing is to maximise the market’s consumption of your products and services. However, it would be desirable to set the goal at maximising consumer satisfaction, rather than consumption. The organisation, in the long run, is likely to benefit from a customer oriented approach to marketing. The approach, in other words, should ensure strong foundation for the institution’s existence,