27-09-2013, 02:56 PM
A STUDY ON PROMOTIONAL STRATEGIES ADOPTED BY PUBLIC AND PRIVATE SECTOR BANKS IN SALEM CITY
Introduction
In financial services, people are primarily bothered about security of their funds and default
risks. After the year 1969, the deposits of banks increased more than 80 times as a result of
the nationalisation of banks. Paul Cox, (2007) revealed a fact that financial service providers
are not perceived highly trusted, so that they might have difficulty in selling risk-based
products. The effort to promote banking business is quite distinguished affair. At present, it
has become very tricky due to the changing trends of industry, increasing competition and
efficiency of regulatory environment, and the financial system. The complexity in the
banking services is also an issue of vital importance. This is the time when banks are offering
new and innovative services, frequently in the market. The content of promotional tools
should help the customer in making most valuable decision. This can be firmly said that well-
designed promotional strategies are very important to promote banking services effectively.
In marketing any product or service, customer satisfaction has been given the prime
importance. The most frustrating aspect of bank marketing are lack of management support,
lack of inter-departmental cooperation, crisis management, government intrusion and
advertising & media problems (Berry & Lindgreen, 1980). Promotional packages are very
important for financial service industry (Ananda & Murugaiah, 2003). Thus the orientation of
banks should be with a much wider focus in relation to consumer and market needs, and the
consequent marketing strategies. The challenges put forth by the changing environment have
to be effectively tackled to identify the consumer needs and providing valuable services
through product innovation (Nair Raman, 2006).
Research Methodology
The present study is descriptive in nature, which is based on empirical evidences in the form
of primary data. The data collection has been done from 30 customers presently availing
banking services. The respondents were approached with systematic random sampling where
every 3rd visitor was approached when he/she was coming out of the bank after availing the
service. The response rate was found to be 65%. The branches of the banks have been
selected out of the representative places near to Salem judgment bases for making the
samples true representatives. The study includes the customers of 5 leading banks out of
which 5 are from public sector (SBI and Associates, IOB, IB, and Bank of Baroda) and 5
from private sector (ICICI, HDFC, AXIS, IDBI, Kotak Mahindra Bank. A structured
questionnaire has been used for collection of data comprising open and close-ended
questions. Likert scale has been used as a scaling technique in the questionnaire.