Marketing of Banking Services

Marketing scope in edgeing domain should be considered under the service trade framework. Performed selling strategy is the case which is determination of the place of financial institutions on nodes mind. Bank marketing does not only include service marketing of the bank but overly is the hold out which gets ainity and estimate for bank on its clients mind. On the other hand, financial marketing is the hunt which relates uncongenitalies, differences and non similar applications between financial institutions and judgement standards of their customers.The reasons for marketing scope to have importance in banking and for banks to touch on in marketing subject can be arranged asChange in demographic structure Differentiation of population in the number and composition affect quality and attribute of customer whom benefits from banking run.Intense competition in financial service sector The competition became intense due to the growing planetary banking perceptiveness an d recently being non limiting for innovative enterprises in the sector. Increase in liberalization of sideline rates has intensified the competition.Banks wish for increasing profit Banks have to increase their profits to make out new markets, to protect and develop their market sh ars and to survive on the basis of intense competition and demographic chance levels.SERVICERecently, banks be in a period that they earn money in servicing beyond marketing money. The prestige is get as they offer their run to the masses. Like other work, banking services are withal intangible. Banking services are about the money in different types and attributes handle 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 addition the basic attributes like speed, securityand ease in banking services, the rights like consultancy for services to be compounded are a lso preferred.PRICEThe price which is an important component of marketing mix is named differently in the base of performance exchange that it deports place. Banks have to estimate the prices of their services offered. By performing 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, while others cause expenditure. While marketing mix elements other than price affect sales volume, price affect both profit and sales volume directly.Banks should be very headacheful in determining their prices and price policies. Because mistakes in pricing cause customers shift toward the rivals offering likewise services. Traditionally, banks use deuce-ace methods called cost-plus, transaction volume base and challenging leader in pricing of their services.DISTRIBUTIONThe complexity of banking services are resulted from different kin ds of them. The around 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 addition to physical intangibility. On the other hand, value of service and benefits taken from it mostly depend on knowledge, capability and engagement of customers besides features of offerings. This is resulted from the fact 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 which is consist of pe rsonal selling, advertising, public relations, and selling promotional tools.PERSONAL SELLINGDue to the characteristics of banking services, personal selling is the way 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 show to face at branch office. In this case, whole 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 specialist in banks services to be offered and they shape the kind between bank and customer.ADVERTISING Banks have too many goals which they neediness to achieve. Those goals are for accomplishing the objectives as follows in a way that banks develop advertising campaigns and use media.1. Conceive customers to render all kinds of services that banks offer 2. Increase use of services 3. Create salubrious fit word picture ab out banks and services 4. Change customers attitudes 5. Introduce services of banks 6. Support personal selling 7. Emphasize well serviceAdvertising media and channels that banks prefer are newspaper, magazine, radio, direct posting and outdoor ads and TV commercials. In the selection of media, signal market should be determined and the media that reach this target easily and cheaply must be preferred.Banks should care about following criteria for selection of media.1. Which media the target market prefer 2. Characteristics of service 3. Content of message 4. toll 5. Situation of rivalsAds should be mostly educative, image making and provide the information as follows1. Activities of banks, results, programs, new services 2. Situation of market, government decisions, future developments 3. The opportunities offered for industry branches whose development meets national benefits.PUBLIC RELATIONS Public relations in banking should provide1. Establishing most effective communication system 2. Creating sympathy about family 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 employ selling improvement tools are layout at selling point, rewarding personnel, seminaries, special gifts, premiums, contests.DEVELOPMENT IN MARKETING telescope AT THE ASPECT OF SERVICE MARKETINGMarketing scope develops day to day. These developments carry special significance for service sector in which customer and service producer interact nighly.INTERNAL MARKETINGEspecially in service sector like away relations, internal relations also have significance. It requires finding and keeping no-hit personnel.For personnel of the organization to be considered their own goals andservice situation, values of the organization are sold to them. The communication techniques carried out for customers are also performed for the personnel in inte rnal marketing and this two techniques go together. For example, the ads that aim creating firms image should be prepared with regarding to audience which is appeased 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 established between producer and customer in service sector. In addition to this, tone 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 emphasized that this fact has an importance for service sector.Life cycle of a customer relationship is composed of three stages. At the first stage, firms try to be well known and to acquire new customers. At the heartbeat 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 third 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 true for second 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 grapheme notonly in production-consumption between instants, but also at points that these intersect. In thi s case, 4P that was mentioned at second section would be insufficient. So, we could divide service marketing into two parts 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 lasting 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.