Comparison of Marketing Strategies in Banking Industry

Comparison of merchandising Strategies in Banking Industry1. entering at that bureau has been progress and advancement in the field of finance and caper delinquent to the widespread practice of culture engineering. Banking Industry has proved that it is far-off ahead due to the implementation of several technologies and just about of its industries and handicraftes are doing super well because of this. In to mean solar days times, when maven is interacting with affirms and some other financial institutions there is a gap in process which is felt by the demanding and upmarket consumer. overdue to this argots keep back had to pull up their socks and turn a lot their operations by introducing sophisticated means of use uping business. They bring forth hence provided cash machines (automatic teller machines), com intruster and lucre banking, ph star banking and banking kiosks are proving to be alternative means to pull in from the banking aids in a comfortable and convenient manner.harmonize to scholars Wong (1998) and Kimball Frisch (1997), e-channel, too cognize as innovative distri howeverion channel or on class banking, as per Daniel (1999) or technology-intensive delivery system, says Filotto et al. (1997), is interpreted as the approaches employ to deliver financial products victimisation electronic media such as personal computer, the telephone and the Internet, say Dannenberg Kellner (1998). The ATM as a matter of fact is the just about commonly used electronic distri stillion channel that aids the guests of a bank to conduct their banking transactions, which could be deposits, withdrawal or balance enquiry 24-hours a day. completely banks in Malaysia provide ATM services coupled with the phone banking option. As the customer service department has been centralized services such as phone banking, account balance enquiry, instruction to issue bankers bring out up ons and giving stand instructions are services which can be exe vamooseed for all. though a call allow for first reach an automated rejoinder system, a customer may want to talk directly with a service re consecrateative. The phone banking facility is available 24 hours a day. some(prenominal) examples are Direct Access of Southern Bank, Tele-banking of RHB Bank and Maybank. Phone banking, or alike known as remote e-banking, self-service banking, ingleside banking and obligation banking, is the third type of e-banking. There is internet banking as well which suffices use of the Web. This is a comfortable elan of take a chanceing out the balance in your account, if you need to transfer funds or request for a cheque book, and practise the payment of bill, and can be done at home or while you are in office.Within three years, trade companies believe that the financial services business over half of the customers will use the Internet to make themselves knowledgeable slightly the new financial services, products and search for mor e(prenominal) discipline, if they do need it. This number can veritable(a) go high in a short extent of time. LIMRAs optimizing Opportunities with Online Consumers (2007) came to the finale that around out of 10 online customers, 7 say that they expect to check products, prices, grading and details of the alliance on the internet. These findings show that there is galvanic pile of luck for bulk to make use of the internet to introduce opportunity indoors a bulky number of prospective customers.As the earthly concern Wide Web proceed ons to grow, the expectation of the user and his demeanor are also ever-changing. Potential customers now convey the skill to develop content online and dramatic play a proactive part in creating and sustaining relationships with companies they are able to find online.This dissertation aims at exploring the in force(p)ness of e- merchandise in banking sedulousness and its impact on the industry.2. Problem StatementIn order to join on t he customer base, the merchandise team of a bank uses content and illustrations in direct mail or ad campaigns to attract and draw customers towards it schemes and products. Of late there has been an increase in tele-callers as well who persistently call and promote the versatile products available. On the Internet, which is fast-paced in form and function, banner ads and smartly pen click-to-pay has become a trap to captivate customers. The other level is severaliseword buying from Google and other search engine providers, and particularly the buying of regional keywords. This one is a fresh technique used to bring the surfer to a website, where he or she will find ways to do business with your bank. The use of technology in the market of service industry especially banking industry is not such a new concept. Its been used and have been in use for various countries but it should have a key focus which will be discussed in this research.3. Research QuestionWhat is the effecti ve e- selling tool(s) used in bank industry trade? Evaluate the compare between UK and Indian Banks?4. Research ObjectivesThe key objectives of the research areTo gauge the various market strategies used by the banking industry.To postulate the effectiveness of antithetic merchandise strategies used.To examine the various e- selling orders used by the service industry.To study the effective e-merchandising tools used by UK Banks.To study the effective e- trade tools used by Indian Banks.To evaluate the comparative analysis between e- selling tools used in UK Bank and Indian Banks.5. Literature ReviewThe Meaning of marketMarketing has a two-way definition when it talks comes to discussing corporate activities. Firstly, it is used to congeal its resources on a constant scale so as to accomplish its chosen customers and in doing so to offer social and financial benefits. This is cosmos tagged as marketing concept and stresses on the accountability of ranking(prenominal) m anagement to keep an eye on the situation and acclimatize oneself to changing situations. The scholar Levitt (1983), is a promoter of this concept. The other definition is to perceive marketing as a subject of demand management, primarily a technology to affect the behaviour of customer groups. This method is tagged as marketing management and it stresses the accountability of operational management to do-manage demand in countenance of the business. It handles the selection of target markets, appeal of appropriate offerings and stresses on advertising. According to Anderson (1983), it has galore(postnominal) advocates as this been in the thoughts of most marketing theorists to date.Marketing in BankingThe UK glade banks have a branch network which is similar the field sales force of a production company. It is through these branches that customers are able to make use of the services of the bank. The branches work as outlets through which the banks policies are put forth, its relationships with its customers is tackled and the markets are surveyed and intelligence reports are rucked. Hence the branch and its management come out to be pivotal to any marketing exercise and their behaviour towards marketing an essential element in its acceptance.It may be debated that technical transformations kindred cash dispensers, credit cards and other electronic moodrnization is fetching the customer further and further from his branch and he is becoming a stranger with the staff of the bank. The branch of the bank is the main crossing assign with the customer and these very alterations are likely to increase the value of the branch as a stage for business development and cut coldcock on its role as a performer of money transactions.Whether marketing in the short term has improved the situation of a company by the results achieved in their branches, management is likely to introduce marketing. In the initial days when bank marketing was introduced in the UK, t here were some doubts about the capability of a conventional line of work to acknowledge what appeared to be a different method to take up. The procedure and the concerns linked with the use of marketing to financial services is hence special interest to students of marketing and banking.Indian Banking ScenarioIn the 1960s marketing in banks began in its most conventional form of openity and public relations. flat though they functioned within the stipulation that there can be only small changes among psyche banks, the marketing environment of a bank has since then changed to a large extent. Today banks are facing watertight opposition from the foreign, private and public welkin banks, and there is a pressure from other financial institutions. financial institutions are not only recrudesce placed statutorily, they provide higher returns and a handy product-mix which offer tax rebate benefits as well. A far as the supervision of their marketing function is there, these compan ies are better supervised and administered. While, it is discouraging to observe that the immense boost received by the banking sector thanks to nationalization has not been factored in in productiveness and profitability, on the other hand, its cost of carrying business has gone up, its bottom line has dropped and the disparity between the anticipated and perceived quality of customer service has also become broader. As a result, the banking sector has been under strong criticism by the Government and the public alike.In order to make their business environment more positive, in the last fewer years, banks have adopted various steps which are initiating creative schemes organizing processes to reduce root work and delays introducing teller systems competent enhancements in the look and feel of the banks branches aspect up the model, expert and service branches offering extra boost to their publicity initiatives creating customer service bodies at the banks offices carrying out c ustomer relations programmes establishing customer service departments at the head office of banks qualification courtesy weeks/fortnights, customer service campaigns and door-to-door surveys setting up May I avail you? counters and placing public relations officers in large branches. These reactions of the bank show that may be they have woken up to a logical way of marketing their financial services, and to think beyond the narrow course of marketing as publicity and public relations held so close by them.UK Banking ScenarioIn developed countries, though industrial and consumer goods industries have increased their marketing exercises, service companies and the banking businesses seem to be slow in taking up and enforcing the marketing concept, for sequel studies in various countries, say Watson (1982), Donnelly Berry (1981), Lewis (1981), Cramer (1968). To the outmatch of the present authors knowledge, there are no researches of bank marketing in growth countries, more so i n Turkey. As Turkey becomes more liberalized and industrialized, marketing of bank services becomes crucial to its economic development. Also, data about bank marketing is pregnant for foreign bankers, international monetary agencies, domestic polity makers and overseas businesses which deal with Turkish markets.Technology Marketing in BanksThe banking industry would not have been so sophisticated and evolved had technology not been tackle to its maximum. There have been a number of factors responsible for its progress and evolution. wide of the mark economic tr suppresss and social forces, toned down by government policy and gos, become the environment within which progress occurs, and the level of oppositions largely decides the mental quickness of amendments. Technology is a way to prevail over obstacle and expenses, but in recent years it has become all-embracing and advocated change. It has also been accountable for the rise in superiority of marketing in the supervision of banks.There are two factors why only providing a gist of a single banking system at the present time would be low to study the influence of technology. The first is that the application of technology is unequal among countries and period of time, and the other is that technology is growing very fast and will continue to do so. There is a time gap before scientific developments are implemented and we need to know what decides this gap. The only way to move forward is by way of a historical study, sketching an outline of the correspond progress of technology and banking operations since the 1950s and perhaps into the future.Technology and MarketingIt is a well-accepted fact that the value of marketing in dependent on the level of opposition in a certain market. Since 1950s, competition has slash up in all banking markets, and it continues to grow with the existing trend of de-control, which focuses on getting rid of structural barriers between types of institutions and market, while escalating the control for prudent objectives. In this environment and period, the growing worth of marketing departments is not alarming.Even a perfunctory glance at marketing literature reflects that the component of bank marketing has undergone a change in this period. Some writers have typified three different stages through which it has progressed the first stage was the one in which marketing was restricted to advertisements that reiterated the banks strong points the second was one in which the bank was proactive in marketing its new products and the last stage began when banks attempt to find out and match the actual requirements of the customer. In the first stage there was not much that a marketing department could do, however, in the second and third stages marketing had a powerful role to ordain in bank management.In the second stage, technology took on an important role in bank marketing, with the design of new products. One mode that was adopted was to put u p accounts for depositors, which often had a layering of interest judge as per the size of balance or a rate that alter daily and weekly with money market rates. Others offered some connection between two different accounts, perhaps a accredited account and an interest-bearing account when the latter account was operated by a building baseball club or savings bank that had little influence to offer current accounts, transfers between the accounts included two institutions. It was typical of banks in the second marketing stage to get lazy and so slow down the customers from making the most of the power to minimise their current balances day by day in the third phase they are expected to meet the customers requirements, but it is surprising how few of them have yet to provide sweep accounts so that the current account balance is exactly zero by the end of the day. These features of the new accounts would have been impossible without support from the computer.The third stage is the one in which marketing becomes the superior part in the strategy of the banks, when marketing departments lose their shine as the banks management, at the highest levels especially, must comprise of people who have experience of marketing. It is also a stage in which the method is to fractionalize the retail customer base. Banks which provide payment services can soft beat the rivals on the basis of their computer record of the traits and the financial behaviour of their customers. Technology is hence vital for this stage but it would be immaterial to remember that technological support for new products and segmentation has been in humanity since 1980 in the form of mainframe computers the only new thing is the humanitarian of new software.6. Research MethodologyResearch approachThe tec took on a case study method to get a fine brain of how e-marketing Industry. As per Denscombe (2000) when emphasizing on one or few research units with the objective of obtaining detailed infor mation, the best method is to take up the case study approach. As per Yin, when the detective has almost no control over happenings and when the stress in on a certain sheath in real life and to answer how or why questions, case study is the preferred method approach.Case selectionBy utilize random sampling techniques, the researcher found 4 banks which include 2 from each country i.e. UK and India. One public and one private sector bank was chosen for both the countries. As per scholars Hunt Shelley (2004), a qualitative method makes the researcher grasp and construe the qualitative character of the information. The way forward keeping the qualitative aspect of the study in assessment will include an in-depth study and assessment of the existing research and techniques applicable to the specific research problems, involving environmental issues within the marketing mix and policies created by the companies. The purpose is to fully grasp the way the companies create marketing s trategies to rest in the competitive market.Data collectionPrimary dataAccording to Denscombe (2000), for an in depth knowledge and understanding of the importance of e-marketing strategies in in Bank. The researcher used a plaque-to-face hearing as the most apt method. This would not only enable him to seek information, but also give him an opportunity to seek detailed clarifications on the thoughts. Walshman (1995) had stressed on the advantages of personal interviews as one of the best ways to record the views and aspirations of the interviewee. The researcher faced problems such as limitations on the selective thoughts of one person, inconsistencies due to rigid beliefs of the interviewee, collation of voluminous data, transcription by using this methodology.To gather information from the interviewee, the scholar has suggested to use the semi-structured interview guide as interview questions would differ as cases had very different strategies. According to Walshman (1995) int erviews provide the best way to understand the views of the participants regarding the actions and events, which have or are taking place and the views and aspirations of themselves and other participants. In qualitative approach there is the extra benefit of permitting the researcher to go back to the drawing board and assess the understanding provided by the respondent in more detail as compared to other methods. The interviews will be carried among managers of the companies who are accountable for the creation of green marketing strategies. The researcher documented the responses and also simultaneously recorded them to transcribe later. The researcher will be going for 5-10 interviews from each bank.Secondary data collectionSecondary data is gathered from different sources such as websites, yearbook reports, books, journals and articles and case studies. The objective this information gathering is to find out the link up data regarding strategies adopted by the Trident Solutio ns.Pilot studyA airplane pilot study was carried out among interviewees to ensure that the terms used are level and suitable. As per Denscombe (2000, p 135), interview will be held using the face to face approach in order to aid the interviewer to ask questions which were not in the interview guide depending on the respondents answers.Data analysisThe information was studied using content analysis. After the interview got over, information was cut down to recognize the patterns and themes and obtain a clear understanding. As per Ghauri and Gronhaug (2005) information was explored, studied and classified based on the questions in the research questions. If more information was needed or when new questions arose, then another round of data collection would be conducted.