Bank Marketing – Never a Full Stop!
Address for Communication:
P. Pirakatheeswari, 2/276, Sevalpatti, Collector Office Post, Virudhunagar – 2.
Cell: 9952836250
E-Mail: prabhasivam_salem@yahoo.co.in
P. PIRAKATHEESWARI,
Lecturer in Commerce,
Sri Sarada College for Women (Autonomous),
Fair lands, Salem – 16.
BANK MARKETING – NEVER A FULL STOP!
Introduction
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.
What is Bank Marketing?
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 payments etc. With a wide network of branches, even in a dissimilar banking scenario, customers expect the banks to offer a more and better service to match their demands and this has compelled banks to take up marketing in right earnest.
Quality as a Key Factor
With the opening up of the economy, fast change has been experienced in every activity, and banking has been no exemption. Quality is the watchword in the competitive world, which is market driven and banks have had to face up to this emerging scenario. In fact, it may not be out of place to reiterate that quality will in future be the sole determinant of successful banking ventures and marketing has to focus on this most crucial need of the hour.
Growing Competition
Increased completion is being faced by the Indian banking industry from within the system with other agencies both, local and foreign, offering value added services. Competition is no more confined to resource mobilization but also to lending and other areas of banking activity. The foreign commercial bank with their superior technology, speed in operations and imaginative positioning of their services has also provided the necessary impetus to the Indian banks to innovate and complete in the market place.
Technological Advances
Technological innovation has resulted in financial product development especially in the international and investment banking areas. The western experience has demonstrated that technology has not only made execution of work faster but has also resulted in greater availability of manpower for customer contact.
Marketing Approach in Banks
With the need for marketing in banks having evolved out of the changing environment and constant interplay of various interdependent factors, the importance of a systematic approach to marketing cannot be overstressed. The application of a marketing approach in banks will therefore involve:
a. Identifying customers’ financial needs and wants;
b. Developing appropriate banking services to meet these needs;
c. Pricing for the services so developed;
d. Setting up suitable outsells / banks branches;
e. Advertising to promote the services to the existing as well as prospective customers.
Special Features of Bank Marketing
- Banking product cannot be seen or touched like manufactured products (intangibility)
- In marketing banking products, the product and the seller are in separable; they together define the banking product (inseparability)
- Banking products are products and delivered at the same time; they cannot be stored and inspected before delivering’ (perishability)
- Standardization of banking product is difficult (variability)
Conclusion
It is submitted that the banking system is on the threshold of a momentous era of change and continuity in growth and development, of individual customer needs and corporate practices, technology and competitions. The role of marketing in the banking industry continues to change. For many years the primary focus of bank marketing was public returns. Then the focus shifted to advertising and sales promotion. That was followed by a focus on the development of a sales culture. Now the focus is on the individual customer meeting and even anticipating his or needs and developing trusting, long-term relationships by delivering high quality personalized service. Marketing both as a philosophy and an activity; is expected to contribute immensely to the realization of goals both immediate and future. All though all the elements of the marketing concept – customer satisfaction, profit integrated framework and social responsibility must receive the greatest emphasis in the years a head. They must be guided by the dictum of Mahatma Gandhi.
“A customer is the most important visitor in our promises. He is most dependent on us. We are depending on him. He is not an interruption on our work. He is the purpose of it. He is not an outsider on our business. He is part of it. We are not doing him a favour by serving him. He is doing as a favour by giving as an opportunity”.