BANK MARKETING :

Marketing philosophy, in any context, refer to the need satisfaction of the institutions clients. The basic step involves identifying the needs of the customers and developing products to suit their needs or modifying the existing products accordingly. It also requires the need for foreseeing wants of the customers in future and developing suitable products of their requirement. Deryk Weyer of Barclays Bank attempted a comprehensive definition for Bank Marketing. According to him, it consists of identifying the most profitable markets now and in future; assessing the present and future needs of customers; setting business development goals and marketing plans to meet them and managing the various services and promoting them to achieve the plans, all in the context of a changing market environment. Successful marketing in a bank calls for commitment at all levels to the task defined in this regard. Achieving higher business standards and operational performance through marketing of banking services should be one of the directional goals of the organisation. The Indian banking system, by habit and tradition, considered deposit growth as the business objective and other parameters such as productivity, profitability, customer satisfaction, etc. were considered less important. In view of the competitive surroundings in which a bank is compelled to function, there is need for formulation of a strategic action plan for its marketing efforts. A marketing strategy, in general, is a systematic, appropriate and feasible set of concepts and actions through which the institution strives to achieve its goal of customer satisfaction and profitable survival. Strategy should be designed after taking into account the strengths and weaknesses of the organisation. For example, a bank or branch with clientele from various segments could think of market penetration by offering the existing range of services to existing customers. On the other hand, a bank which is having expanding business through new branches or branches which are not facing acute competition could think of Market Development by offering the existing services to new customers. However, the real marketing challenges arise from the institutions capability to design new product range for their customers of various segments. The strategy, therefore, lies in increasing the client base and consolidating the relationship with existing and new clients through existing or newly developed products. The operational aspects of strategies for marketing contain actions such as development of Relationship Banking, designing of effective delivery system, ensuring customer-oriented services and modifying the system into a personal selling organisation. In western banking, officials assigned the job of personally contacting the customers and offering the services at doorsteps had been able to make a significant impact on the development of business for their organisations. The importance and role of personal selling and customer contacts in the marketing efforts of a banking institution stem from the success of such efforts in many banking institutions all over the world. The implementation of the strategies is as crucial as its design in ensuring successful marketing. The communication of the adopted strategies to different tiers of the institution and ensuring of its proper understanding by personnel at all levels, is essential for successful implementation of the strategies. The communication becomes difficult in organisations which have substantial branch network spread over a large geographical area. The field staff at the branch level should be trained to implement the strategies after modifying them to suit the environment in which they are operating. The knowledge of the local environment, demographic features and cultural aspects is an essential requirement for the field staff involved in marketing efforts for the organisation. 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

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. b. c. d. e. Identifying customers financial needs and wants; Developing appropriate banking services to meet these needs; Pricing for the services so developed; Setting up suitable outsells / banks branches; 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