Marketing of Banking Services

Marketing scope in hopeing sector should be considered nether the service merchandise framework. Performed sell strategy is the case which is intention of the place of monetary institutions on clients mind. Bank marketing does not and include service selling of the bank but too is the forge which gets personality and image for bank on its customers mind. On the other hand, pecuniary marketing is the function which relates uncongenitalies, differences and non similar applications amongst financial institutions and judgement standards of their customers.The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be arranged asChange in demographic structure Differentiation of population in the number and constitution relate quality and ascribe of customer whom benefits from banking service.Intense competition in financial service sector The competition became unabated due to the growing global banking perceptiveness a nd juvenilely being non limiting for forward-looking enterprises in the sector. accession in liberalization of interest rates has intensified the competition.Banks deal for increasing profit Banks have to increase their profits to create new markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels.SERVICERecently, banks are in a con while that they earn money in servicing beyond selling money. The prestige is get as they offer their serve to the masses. Like other go, banking services are also intangible. Banking services are salutary-nigh the money in different types and attributes deal lending, depositing and transferring procedures. These intangible services are shaped in contracts. The structure of banking services affects the success of institution in long term. in similar manner the basic attributes like speed, securityand ease in banking services, the rights like consultancy for services to be compounded are also preferred.PRICEThe price which is an serious theatrical role of marketing mix is named differently in the base of transaction swop that it takes place. Banks have to estimate the prices of their services offered. By runing this, they keep their relations with extant customers and take new ones. The prices in banking have names like interest, commission and expenses. Price is the sole element of marketing variables that create earnings, piece others cause expenditure. While marketing mix elements other than price affect sales sight, price affect both profit and sales volume airly.Banks should be very careful in determining their prices and price policies. Because mistakes in pricing cause customers shift toward the rivals offering likewise services. Traditionally, banks use trine methods called cost-plus, transaction volume base and challenging leader in pricing of their services.DISTRIBUTIONThe complexity of banking services are resulted from differen t kinds of them. The just near important feature of banking is the persuasion of customers benefiting from services.Most banks services are complex in attribute and when this feature joins the intangibility characteristics, offerings take also mental intangibility in step-up to physical intangibility. On the other hand, value of service and benefits taken from it mostly depend on knowledge, capability and participation of customers besides features of offerings. This is resulted from the circumstance that production and consumption have non separable characteristics in those services.Most authors argue that those features of banking services makes personal interaction between customer and bank obligatory and the direct distribution is the sole alternative. Due to this reason, like preceding applications inrecent years, branch offices use traditional method in distribution of banking services.PROMOTIONOne of the most important element of marketing mix of services is promotion whi ch is lie of personal selling, advertising, public relations, and selling promotional tools.PERSONAL SELLINGDue to the characteristics of banking services, personal selling is the manner that most banks prefer in expanding selling and use of them.Personal selling occurs in two ways. First occurs in a way that customer and banker perform interaction face to face at branch office. In this case, solid personnel, bank employees, chief and office manager, takes part in selling. Second occurs in a way that customer representatives go to customers place. Customer representatives are specialiser in banks services to be offered and they shape the alliance between bank and customer.ADVERTISING Banks have too many goals which they want to get. Those goals are for accomplishing the objectives as follows in a way that banks develop advertising campaigns and use media.1. Conceive customers to get wind all kinds of services that banks offer 2. Increase use of services 3. produce well fit im age about banks and services 4. Change customers attitudes 5. make services of banks 6. Support personal selling 7. Emphasize well serviceAdvertising media and transmit that banks prefer are newspaper, magazine, radio, direct posting and outdoor ads and TV commercials. In the selection of media, engineer market should be determined and the media that reach this target easily and cheaply must be preferred.Banks should care about spare-time activity criteria for selection of media.1. Which media the target market prefer 2. Characteristics of service 3. Content of center 4. Cost 5. Situation of rivalsAds should be mostly educative, image making and brook the information as follows1. Activities of banks, results, programs, new services 2. Situation of market, government decisions, emerging developments 3. The opportunities offered for industry branches whose development meets national benefits.PUBLIC RELATIONS Public relations in banking should provide1. Establishing most effecti ve communication system 2. Creating sympathy about relationship between bank and customer 3. Giving broadest information about activities of bank.SELLING PROMOTIONAL TOOLSAnother element of the promotion mixes of banks is improvement of selling. Mostly used selling improvement tools are layout at selling point, rewarding personnel, seminaries, special gifts, premiums, contests.DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE MARKETINGMarketing scope develops solar day to day. These developments carry special significance for service sector in which customer and service producer interact well-nigh.INTERNAL MARKETINGEspecially in service sector like external relations, internal relations also have significance. It requires finding and retention successful personnel.For personnel of the organization to be considered their own goals andservice situation, value of the organization are sold to them. The communication techniques carried out for customers are also performed for th e personnel in internal marketing and this two techniques go together. For example, the ads that set out creating firms image should be prepared with regarding to audience which is peaceful of firms personnel.NETWORK MARKETINGThis approach takes the organization as a sequence which involves producer and customer that market services to each other in the organization. In this structure, the activities of departments that compose organization would be more focused on market. This will also affect the structure of organization.RELATIONSHIP MARKETINGIt was mentioned that close relationship was launch between producer and customer in service sector. In addition to this, life cycle of a customer relationship was also mentioned under the product outline.According to the researchers, maintaining the relationship for extant customer increases the profit of firms. It should be accent that this fact has an importance for service sector.Life cycle of a customer relationship is composed of t hree stages. At the first stage, firms try to be well known and to acquire new customers. At the minute stage, the connection between customer and firm has been achieved. During the stage, firms intensified their activities on acquired customers and both of them promises mutually. At the triad stage, these promises are accomplished and the service is consumed. During the stage, firms face Reality Instants which could possibly achieve satisfaction of customer and continuous relationship. This could be also genuine for moment stage. So, these instants should be managed successfully. Implementation of close relations with customer successively and true applications at reality instants could not be accomplished by responsibilities of a marketing personnel.Besides, it should be remembered that consumption and production of service are closely interrelated. At this context, marketing should have role notonly in production-consumption between instants, but also at points that these int ersect. In this case, 4P that was mentioned at second section would be insufficient. So, we could divide service marketing into two part as specialist function (marketing mix, marketing researches) and marketing function buyerseller interactions)Efforts in first stage in which customers are not so clear, at the customer relationship life cycle could be minimized for abiding customers. This is achieved by successful customer relations. In this approach, marketing may be defined as Marketing is for establishing, keeping, developing relationship with customers in a manner that profit is got (especially in long term). So, objectives of two relevant sides would be achieved. This would be accomplished by shared promises and carrying out the promises.