Marketing in the Banking Industry and its Effect on the Environment
Introduction
The banking industry stays strong in the middle of the financial crunch and the economic stress. The power of the country lies in their financial stability. The financial operation of the country can erect the various financial gaps and growth for the company. The banking industry is also affected by the globalization and as a form of business, it is natural for the banks to do actions according to the benefit of the organization.
Background and Problem Statement
The power of the banks depends on the regulatory environment in which the banks operate. In a perfect competition, there is a great relationship between the banks and the market that together contributes to the growth of the economy. The marketing aspect of the banks stimulates the participation of the market in saving and investment. In addition, due to the use of the marketing process, the banking industry can also handle the various situations in the economy. However, what are the effects of the marketing in banking industry and its environment.
Research Objectives
The first objective of the study is to discover the relationship between each aspect and concept of marketing in the banking industry. The second objective of the study to assess the competitiveness that involves in the banking industry. All of the objectives that lie in the banking industry will create great impact in the financial stability of the country.
Research Questions
The study prepared several questions that can help the study achieve its objective in identifying the marketing in the banking industry and as well as its effects.
1. What is the purpose of the marketing in the banking industry?
2. What are the benefits that the banking industry can realize in using the marketing as a strategy?
3. What are the views of the banking leaders regarding the marketing?
Literature Review
The specification of the basic model an interaction between this measure of bank powers and financial dependence, and both bank powers alone and the interaction to the extended model. In the basic model the bank concentration interaction remains highly significant, while the bank development interaction loses significance.
Specifically, the result suggests that the deadweight loss from bank concentration is strongest in countries with the most constrained regulatory environment (Cetorelli and Gambera, 1999). Traditionally, the role of banks whether in a developed or developing economy, consists of financial intermediation, provision of an efficient payments system and serving as conduit for the implementation of monetary policies. It has been postulated that if these functions are efficiently carried out, the economy would be able to mobilize meaningful level of savings and channel these funds in an efficient and effective manner to ensure that no viable project is frustrated due to lack of funds. The role of banks in economic development has been richly articulated in the literatures. The financial institutions play a significant role in contributing the economic development (Donli, 2003).
Methodology
The applied method in the study is the use of the comparative case study wherein the current study can find an advantage to use the past studies in the incorporating the empirical thoughts. The study can compare, review, and assess the information that can help the study generate its own analysis.
Conclusion
The banking industry remains in the middle of losses if the financial institution did not provided such actions like the marketing programs. It may affect the nature and environment of the business but the changes that might happen can create such difference and gather other positive results. In addition, the marketing strategies of the banks can be enjoyed by the people much as saving and loaning services that they can give.
References:
Cetorelli, N.,& Gambera, M., 1999. Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data [Online] Available at: http://fic.wharton.upenn.edu/fic/papers/00/0019.pdf [Accessed 16 March 2010].
Donli, J.G., 2003. The State and Future of the Banking Industry in Nigeria [Online] Available at: http://www.ndic-ng.com/pdf/tsafobin.pdf [Accessed 16 March 2010].
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