Bank Marketing
Deryk Weyer of Barclays Bank call marketing strategy as “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”.
Special Features of Bank Marketing
1. Banking product cannot be seen or touched like manufactured products (intangibility)
2. In marketing banking products, the product and the seller are in separable; they
together define the banking product (inseparability)
3. Banking products are products and delivered at the same time; they cannot be stored
and inspected before delivering’ (perishability)
4. Standardization of banking product is difficult (variability)
Importance of 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
