Page 1 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 562
Service Marketing Strategies in Banking Sector
Dr. Ramesh Rani (Assistant Professor)
Department of Commerce
NIILM University ,Kaithal
ABSTRACT:
Competition has been the key factor in the growth of marketing all over the world, irrespective of the
kind of product or market. The same is true with regard to marketing of financial services also. Because
of the socio-political and economic situations prevailing in India, the banks seldom thought of the
necessity of applying marketing task in their day to day operations in the past. Indian banks were highly
regulated by Reserve Bank of India in a variety of ways which made marketing a difficult task and more
often challenging. While Indian banks were accustomed to traditional business, their counter- parts in
western countries are becoming financial supermarkets providing a wide variety of services. The
purpose of this paper is to examine the extent of services and simply to set the top limit of the
availability of banking services, products and facilities so to evaluate these services at smaller cities,
towns and villages. There is much scope to identify the areas requiring vigorous marketing efforts. This
would help the customers to take advantage from banking facilities. This would also give directions to
marketers in designing marketing mix strategy for banking sector.
Keywords: prevailing, accustomed, vigorous, strategy
INTRODUCTION
Over the years, with the growth of globalized environment, the ever increasing competition among the
marketers and highly volatile business environment both nationally and internationally, has led to the
dwindling of market share and rate of profitability. The marketing concept, as put forward by most
marketing practitioners, is a business philosophy which tells that the purpose of any business is to
satisfy the wants and needs of consumers at a profit. The business firms have recognized that customers
are fast becoming more sophisticated. They want best quality products and that too at the lowest price
and with better allied and after sale services. No longer can the industry produce whatever it is capable
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European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 563
of producing, and offer the product unmodified to customers. Within a regulated environment that
practice may have worked well. But with the relaxing of controls, it was no longer viable. Innovative
business firms found that products and services had to be expressly designed to meet customer needs.
The classical marketing approaches focus on the flow of goods and services from producer to consumer
or user. In modern times marketing is viewed as the anticipation, management and satisfaction of
demand through the exchange process. While the evolution of marketing can be traced to people's
earliest use of exchange process, it has really developed since the industrial revolution, as mass
production and improved transportation enabled more transactions to occur.
Modern marketing concept emerged in the 1950's as a new philosophy of business management. It
advocates that a business organization exists to satisfy the wants of its targeted customers and it
approaches decision making from systems view of management and seeks to earn a satisfactory return
on owners’ investment in the firm. Customers are the focal points for all decision making in the
organisation and all functional areas are geared to satisfy targeted customers. The marketing concept
views customer orientation as the means to the end of achieving the organization’sgoal.
Marketing involves satisfying customers’ need and wants. The task of any business is to deliver customer
value at a profit. In an economy where products, marketing campaigns and even sales channels are
transitory, firms increasingly recognize to maximize customer value an explicit and measured business
goal. As business evolve from product or campaign centric to customer centric marketing, a set of best
practices is emerging that focus on measuring and increasing the life time value of customer because
loyal customers are both a scarce and a source of value. To deliver customer value firms have to
manage their service quality because big gap exists between the expectations of the customers and the
level of services they get. It is important to understand and meet customer expectations. If the firm
understand the expectations and also has the capability to serve them, the customer will be satisfied
with service outcome.
Whatever strategies are adopted, the modern organizations are customer oriented organizations which
keep the customers on the top of a pyramid. Customers today are, infact, more educated and informed
than ever, and they have the tools to verify company’s claims and seek out superior alternatives. The
Page 3 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 564
strategic situation analysis considers market and competitor analysis, market segmentation, and
continuous learning about markets. Designing marketing strategy examines customer targeting and
positioning strategies, marketing relationship strategies and planning for new products. Marketing
program development consists of product, distribution, price, and promotion strategies designed and
implemented to meet the value requirements of targeted buyers. Strategy implementation and
management consider organizationa l design and marketing strategy implementation and control.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fulfill
market needs and reach marketing objectives. Plans and objectives are generally tested for measurable
results. Commonly, marketing strategies are developed as multi- year plans, with a tactical plan
detailing specific actions to be accomplished in the current year. Time horizons covered by the
marketing plan vary from company to company, from industry to industry, and from nation to nation.
The time horizons, however, are becoming shorter as the speed of change in the environment
increases. Marketing strategies are dynamic and interactive. These are partially planned and partially
unplanned.
Marketing strategy involves careful scanning of the internal and external environments. Internal
environmental factors include the marketing mix, plus performance analysis and strategic constraints.
External environmental factors include customer analysis, competitor analysis, target market analysis,
as well as evaluation of any elements of the technological, economic, cultural or political/legal
environment likely to impact success. A key component of marketing strategy is often to keep
marketing in line with a company's overarching mission statement.
Once a thorough environmental scanning is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain these
goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to
monitor progress and a set of contingencies if problems arise in the implementation of the plan.
Service Marketing
Conceptually product marketing and service marketing are essentially the same. In other words the
