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Marketing as a complex activity provides the solution of specific problems of the market in the most efficient way. Bank marketing because of its specificity is a special branch of marketing. This is an external and internal ideology, strategy, tactics and policies of the bank, determined by the specific socio-political and economic situation. Recent developments in the banking systems of countries with developed market economies, the real economic situation led to the fact that modern techniques and methods of marketing are of vital importance to commercial banks. This is due to the universalization of banking activity, increased competition from foreign banks, the emergence of competition from banks in the face of non-bank institutions, etc. But first of all marketing activities aimed at increasing sales of banking services with the help of different methods and tools. (Wright 1991)
In this paper it is necessary to consider the basic methods and tools for sales and marketing of banking services. It is especially important to consider the modern alternative sales tools and cross-selling.
The specificity and organization of marketing activities in the bank
Due to the development of the financial market, increasing competition for customers since the late 1960s, the banking industry has changed dramatically. In the banking sphere marketing activities began to be applied in the 1970s, when banks began to actively use some elements of marketing, and then the concept of marketing and strategic planning. The main factors that caused the need for marketing in the banking sector are the following:
– Internationalization of economic processes, which is accompanied by penetration of banks in foreign markets and their competition with local banks;
– Globalization of competition in the banking industry;
– Appearance and development of a large number of non-bank institutions, which compete with banks, in almost all countries;
– Diversification of the banking industry, which includes expansion of the range of services provided by banks and development of non-banking methods of borrowing (bonds issue, for example);
– Development of information technologies and communication tools based on modern technology and, as a consequence, expansion of regional and national spheres of finance and credit institutions;
– Development of competition within the banking system, as well as between banks and nonbank institutions, both of fundraising and services. Competition in the banking market emerged later than the competition in the industry, and is characterized with high intensity due to lack of entry barriers;
– Limited price competition in the market of banking services due to the government regulation highlights the problems of quality control and promotion of banking products to the market. (Estelami 2012)
Increased competition and increased customer demands for banking services lead to the fact that more and more banks have to use marketing tools, develop strategic marketing plans to adapt to environmental changes and to ensure the success in the competitive struggle. (Wright 1991)
Specificity of marketing in the banking sphere is due, above all, to the features of banking products. The purpose of the bank’s management policies and activities of all its services is to attract customers, expand sales of its services, and to ensure growth of profits. That is why marketing activities are of the great importance for banks, and vary significantly in recent years under the influence of sharply increased competition in financial markets and changes in relationship between banks and clients.
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