The bank marketing is than an approach to market the services profitability. It is a device to maintain commercial viability. The changing perception of bank marketing has made it a social process. The significant properties of the holistic concept of management  has made bank  marketing a device to establish a balance between the commercial and social considerations, often considered to the two opposite wings. A compendium of two words banks and marketing thus focuses our attention on the following: 

Bank marketing is a managerial approach to the market services. It is a social process to sub serve social interests. It is a fair way of making profits It is an art to make possible performance-orientation. It is a professionally tested skill to excel competition.


             The emerging trends in the level of expectation affect the formulation of marketing mix. Innovative efforts become essential the moment it finds a change in the level of expectations. There are two types of customers using the services of banks, such as general customers and the individual customers.


            Persons having an account in the bank and using the banking facilities at the terms and conditions fixed by a bank are known as general users of the banking services. Generally, they are found small sized customers.


            The industrialists, entrepreneurs having an account in the bank and using credit facilities and other services for the establishments and expansion of their business are known as industrial users. Generally, they are found large sized customers.


              The formulation of policies is substantially influenced by the emerging trends in the national and international business conditions. The level of income, expectation, the rate of literacy the geographic and demographic considerations, the rural or urban orientation, the chances in economic systems the frequent use of technologies are some of the key factors governing the development plan of an organization.

             In the development sensitive welfare economy, the formulation of a sound marketing mix is found a difficult task. The nationalization of the Reserve Bank of India is a landmark in the development of Indian Banking system which in a true sense paved avenues for qualitative-cum quantities improvements. This makes it essential that the reserve Bank of India and the policy makers of the public sector commercial banks think in favor of conceptualizing modern marketing which would bring a radical change in the process of quality up gradation.

            The first task before the public sector commercial Banks is to formulate the marketing mix which suits the national socio-economic requirements. To be more specific the peripheral services need frequent innovations, since this would be helpful in excelling competition. The designing of a product portfolio is found significant to maintain the commercial viability of the public sector banks. The banks professionals need to assign due weightage to their physical properties. They are supposed to look smart active and attractive.


 The marketing research considered being a systematic gathering, recording and analysis of data makes ways for making and innovation the marketing decisions. The information collected from the external sources by conducting surveys helps bank professional in different wants.

            In the bank services, the formulation of overall marketing strategies is considered significant with the view point of tapping the potentials, expanding the business and increasing the marketing share. The increasing domination and gaining popularity banks, the popularity banks, the profitable schemes of the non-banking organization mounting craze among the customers for private banks have made the task of influencing the impulse of customers a bit difficult.

            The marketing research simplifies the task of studying the magnitude of competition by opinion surveys an the feed back customers, the multi-dimensional changes in the services mix can be made productive if it is based on marketing research.


             The banking industry in India is undergoing a major transformation due to changes in economic condition and continuous deregulation. These multiple changes happening one after other has a ripple effect on a bank trying to graduate from completely regulated sellers market to completed deregulated customers market.


            This continuous deregulation has made the banking market extremely competitive with greater autonomy, operational flexibility, and decontrolled interest rate and liberalized norms for foreign exchange. The deregulation of the industry coupled with decontrol in interest rates has led to entry of a number of players in the banking industry. At the same time reduced corporate credit off thanks to sluggish economy has resulted in large number of competitors battling for the same pie.
New rules:

            As a result, the market place has been redefined with new rules of the game. Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer. Natural fall out of this new players, new channels squeezed spreads, demanding customers better service, marketing skills heightened competition, new rules of the game pressure on efficiency missed opportunities. Need for new orientation diffused customer loyalty. Bank has led to a series of innovative product offerings catering to various customer segments, specifically retail credit.


            This in turn has made it necessary to look for efficiencies in the business. Bank need to access low cost funds and simultaneously improve the efficiency. The banks are facing pricing pressure, squeeze on spread and have to give thrust on retail assets.

Diffused customer loyalty:

            This will definitely impact customer preferences, as they are bound to react to the value added offerings. Customers have become demanding and the loyalties are diffused. These are multiple choices; the wallet share is reduced per bank with demand on flexibility and customization. Given the relatively low switching costs; customer retention calls for customized service and hassle free, flawless service delivery.

Misaligned mindset:

            These changes are creating challenges, as employees are made to adapt to changing conditions. There is resistance to change from employees and the seller market mindset is yet to be changed coupled with fear of uncertainty and control orientation. Acceptance of technology in but the utilization is not maximized.

Competency gap:

            Placing the right skill at the right place will determine success. The competency gap needs to be addressed simultaneously otherwise there will be missed opportunities. The focus of people will be doing work but not providing solutions, on escalating problems rather than solving them and on disposing customers instead of using the opportunity to cross sell.


            Leading players in the industry have embarked on a series of strategic and tactical initiatives to sustain leadership. The major initiatives include:

a)      Investing in state of the start of the art technology as the back bone of to ensure reliable service delivery.

b)      Leveraging the branch network and sales structure to mobilize low cost current and savings deposits.

c)      Making aggressive forays in the retail advances segments of home and personal loans.

d)      Implementing organization wide initiatives involving people, process and technology to reduce the fixed costs and the cost per transaction.

e)      Focusing on fee based income to compensate foe squeezed spread.

f)        Innovating products to capture customer ‘mind share’ to begin with and later the wallet share.

g)      Improving the asset quality as Basel II norms.


 The banking environment of today is rapidly changing and the rules of yesterday no longer apply. The corporate and the legal barriers that separate the various banking, investment and insurance sectors are less well defined and the cross-over are increasing. As a consequence the marketing function is also changing to better support the bank in this dynamic market environment. The key marketing challenge today is to msupport5 and advice on the focus positioning and marketing resources needed to deliver performance on the bank’s products and services. Marketing, as an investment advisor, is about redefining the delivery needs within not only key strategic Markey segments, but increasingly redefined to relevant micro-segments.


D/o A.K.Ramachandran

12/29 Old bus stand street, kondamalpatty, salem-10.

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