27-09-2013, 03:52 PM
An Overview of Marketing Strategies on Banking Sector in the present Scenario
Introduction
According to Oxford English Dictionary, a Bank is, ―An establishment for custody of money
received from or on behalf of, its customers. Its essential duty is the payment of the orders
given on it by the customers, its profit mainly from the investment of money left unused by
them‖.
Banking Regulation Act, 1949 (Sec. 5©), has defined the banking company as follows,
―Banking Company means any company which transacts business of banking in India‖.
According to Section 5B, ―Banking means the accepting of deposit of money from the public
for the purpose of leading or investment, which are repayable on demand or otherwise and
are withdraw able by cheque, draft, order or otherwise.‖
Different economists, banking professionals and authorities explained their viewpoints
regarding banks or commercial banks. It has been rightly said by A.K. Basu that a general
definition of a bank or banking is by no means easy, as the concepts of banking differ from
age to age, and country to country.
MARKETING CONCEPTS – ITS APPLICATION TO BANKING
When we apply marketing to the banking industry, the bank marketing strategy can be said to
include the following:
i. A very clear definition of target customers.
ii. The Development of marketing mix to satisfy customers at a profit for the bank.
iii. Planning for each of the ̳source‘ markets and each of the ̳user‘ markets (A bank needs to
be doubly market – oriented – its has to attract funds as well as users of funds and
services).
iv. Organization and Administration.
Conclusion:
The marketing done by banks has its own set of advantages and drawbacks. Hence it is vital
for banks to conduct a proper analysis of the market and its marketing strategies before it
consider marketing its brand and bundle of service (Product).
In the present day the segmentation and targeting done by banks are not effective. Hence
appropriate steps must be taken to effectively segment and target the market. i.e., the
selection of the segment should ensure the generation of users in a short or very short time
period.