Need for Marketing in the Financial Service Industry
The nature of the products-intangibility makes it imperative that marketing techniques be used to inform or tell customers exactly what they are buying and what range of the services are available or anticipated customers must be shown the benefits of the service/products.
Competition in the industry has become so intense, aggressive, and sustained or persistent that unless an actor employs the marketing techniques at his disposal, the actor will sooner than later suffer shrinkage in marketing share.
Consumers and customers are fast becoming more educated, more enlightened, and more sophisticated and therefore more selective and discriminatory in their choice of bank services. This has necessitated a more professional and systemic approach to the marketing of banks.
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The fiduciary of banking services (i.e. based on trust) requires that persuasion be extensively used persuasion, as we have seen, is marketing, and its use in marketing services cannot be over-emphasized in the service industry.
The rate at which new products emerge in the financial services industry is alarming. This is in keeping with the increasing sophistication of the world economy and the financial needs of bank customers.
Marketing is therefore required not only to create awareness of the new products but also to enable innovative organizations to reap maximum benefits from the marketing research or efforts before the product dies off or is overtaken by new development. To promote the bank’s image and sell more and more services to customers.
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