Marketing of banking services



Contents

  • 1 Marketing of banking services
  • 2 The emergence of banking services marketing
  • 3 The development of banking services marketing
  • 4 Marketing strategies of banking services
  • 5 References

Marketing of banking services

Marketing of Banking Services (English: Marketing of Banking Services); it is a group of integrated activities that are carried out in a specific framework, and it strives to direct private services in banks efficiently , which contributes to providing customer needs, and also the marketing of banking services is known as an activity that ensures the flow and flow Special services in the bank to a specific category of clients, with a view to making profits. [1]

Marketing of banking services can also be defined as a special study in the market of targeted banks and customers, which contributes to defining their needs and desires in order to adapt the banking institution with them, and as a result, these desires and needs are provided in the largest possible quantity. [2]

The emergence of banking services marketing

Before the mid fifties of the twentieth century AD, no interest from banking institutions appeared in the marketing function , nor did bank departments realize the importance of banking marketing, which led to neglecting the important role of it, as the interest in it was only superficial, as banks were interested in approved policies to provide traditional services, and there was no need to show marketing services, and in the early sixties of the twentieth century the concept of marketing banking first appeared in the United States , and then spread to France and all European countries, when convinced of managers and supervisors of banks pal Fake own marketing. [3]

Banks began in the mid-sixties of the twentieth century AD with a gradual interest in developing the marketing process , and a study conducted by the American Banking Association in 1968 showed that the equivalent of 50% of banks classified research and marketing advertisements as one of the most important marketing activities, but the actual development of these activities appeared only in the period The time line between the years 1973-1974 AD, as banking marketing now includes many other banking services, and it did not remain dependent only on individual savings . [3]

The real interest of banks in the concept and mechanisms of marketing has been associated with increased conviction among their managers of the special importance in the marketing function , and the role it provides in achieving the goals of banks in terms of contributing to its continuation and maintaining its stability, specifically in light of the competition that has emerged between banks, whether with each other or With the various financial institutions, this resulted in marketing obtaining a legal capacity as a major function in the organizational structure of banks. [3]

The development of banking services marketing

Adopted the development of marketing banking services on the traffic in the following five stages: [4]
  • The stage of providing banking services and production : it is the stage that marked the increase in demand for supply, because the direct and primary goal of banks was at this stage is to provide the largest possible group of services in order to contribute to the fulfillment of requests, which led to a change in its focus towards employing the largest number of Employees, and banks are keen to increase the number of branches to contribute to achieving this goal.
  • The stage of caring for customers: it is the stage associated with the intensity of competition between banks in order to attract customers due to the increase in the supply linked to private services in banks at the expense of the amount of demand. The stage is as follows:
    • Support customer orientation with bank employees, especially frontline employees, which contributes to training them in using the best means of dealing with customers.
    • Promote speed and accuracy in the performance of services, by modernizing the means of work.
    • Handling special complaints to clients.
    • Attention to the role of advertising and public relations .
    • Supporting clients' financial decision-making by providing advisory services to them.
    • Developing the bank building and banking services, which contributes to enhancing the feeling of welcome and respect among clients.
  • The service follow-up phase: It is the stage that aims to direct the private resources of the bank towards supporting the development of existing services, which contributes to providing new services, and this results in accuracy and speed in the performance of services.
  • Marketing orientation stage: It is the stage that helps translate the bank's available resources in order to invest in the needs of the market. The application of this stage depends on a set of activities such as: marketing research, marketing information systems, long-term marketing plans, and strengthening the monitoring of marketing activities and results.
  • The stage of the concept of social marketing: It is the stage that contributes to supporting the previous stages and the role of the bank in its implementation; through dealing with society as an economic entity characterized by its economic role in the state 's economy .

Banking services marketing strategies

The marketing of banking services depends on a set of strategies that aim to achieve the marketing management in the bank. These strategies are divided into three types: [5]
  • Offensive marketing strategy: It is one of the types of marketing strategies and is considered the best for banks that aim to enhance its position and increase its market share at the expense of banks competing with it. About it to new and existing customers. This strategy requires the presence of many human, material and organizational capabilities for the bank to succeed in its implementation.
  • Defense marketing strategy: It is the strategy through which the bank is keen to maintain its market share; by avoiding participation in marketing conflicts, or strong competition with other banks with high characteristics and wide popularity.
  • A rational marketing strategy: It is a strategy that aims to enhance profits; by increasing the prices resulting from the distinguished services of the bank, and determining the nature of its importance among clients, this strategy may seek to reduce costs by using modern devices that are used in place of employees.

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