Bank Marketing Essay

2444 Words 10 Pages
I. Introduction
     
Within our society, financial institutions are becoming more abundant. Along with this present growth, the field of marketing financial services has also grown in size and scope with new entrants everyday. The relatively stable banking environment is being altered with innovation, opportunism, and government intervention. This era, marked by the government’s luminous hand of deregulation (defined as the act of removing regulations or restrictions from a specific entity), has expanded consumer options to the extent that commercial banking must now become an aggressively competing member of the financial services industry. In this new era, important marketing areas such as regulation,
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The marketing mix is simply terminology describing decisions about product, place, promotion, and price. Marketing strategies or schemes within a specific bank are planned, organized, directed, and controlled with the intentions of fulfilling some pre-determined goal. These goals can have various time spans. For example, a particular bank may want to “introduce a new consumer loan plan” or “increase the total number of new accounts opened by 10% over an eight month period.” An action of this nature would result in returns to the short run. On the other hand, if the bank wanted to “improve its image within the community”, the bank would have a longer period of time to accomplish the goal (long run).
Bank marketing serves the role of bringing the product to the consumer or customer in a way that is understandable and relatively easy to comprehend. Bank marketing also has the duty of responding appropriately and realistically to externally and internally generated change in the environment. For example, many financial institutions, including the likes of First Union, Bank of America, and First Citizens, all offer various products and services to meet the needs of a demanding society full of varying personalities and values. Without a myriad of varied services and products, these institutions could stand to lose many customers and bigger than that, profits. In the eyes of many, bank marketing appears to be a relatively simple process, but when faced