Growth of Indian Economy
1. Growth of Indian Economy
Face of the growth of Indian economy in recent years has been the fantastic increase in needs and expectation of banking customers. Important factors for this change are the spread of Television, including access to international channels, Rise of Indian middle-class with considerable financial resources and furthermore, a higher propensity towards consumption ;
- Entry of foreign and private sector banks in India,
- Break-up of the joint family system in urban India, and
- Govt. intervention for protecting the interest of consumers.
All these and similar other developments have combined to produce a typical bank customer who is no longer prepared to accept things lying down. He has started harboring higher-expectations from banks to fulfill his newfound needs and has become quite articulate about them.
Now due to the change in the attitude of customers, banks cannot continue with their “take it or leave it” attitudes. If they do so they will lose their customers because customers have a number of other options. So banks must be closer to the customer in order to satisfy them. In other words this is exactly what bank marketing is.
An offshoot of economic liberalization is the phenomenal growth in competition in the banking industry. A number of private sector banks with considerable financial might and expertise have already made an entry. In addition to this, foreign banks have also made their presence in the country besides, a large number of Non-banking Finance Companies as well as recently proposed Local area banks are competing to get the maximum share of the market. So for the first time, bank customers in India are going to have a choice. This situation brings ‘bank marketing to increase business and profit.
Bank marketing is unavoidably a social concern because marketing activities lead to the creation of new products and services, because marketing activities promote new ideas to the society which is being served and because marketing involves an important persuasive role in the formation of public opinion. Marketing orientation is basically an attitudinal disposition of a banker which enables him to anticipate customer needs and also inspires him to satisfy that need. Two ingredients of marketing orientation are
- An ability to anticipate customer needs and
- Willingness to satisfy them.