The Marketing Mix of the Bank BRD Goupe Societe Generale

Chapter 1 The marketing mix in a bank

1.1 The role and elements of marketing in a bank

Banks are the economic institutions that have as a principal function the collection, transfer and repartization of financial disposables. The role of the bank is to put in connection, on commercial basis, the economic units that are searching funds with the ones that want to lend them. The main functions of a bank are the attraction of disposable money from economic agents, the granting and distribution of money to different economic agents, the emission of coins and creation of credit instruments. Banks can offer credits through the means they dispose, through accumulations formed by different deposits and the emission of money, in this manner being limited the quantity of cash that should circulate in reality.

The banking activity highlights the technical and economic advantages, having the role of helping the decisional process regarding the monetary and financial politics of the state. Moreover, the banks have the role of financial adviser of the economic agents in research of resources for the financing of the investitions. Banks offer assistance to the commercial societies in the case of the increase of the capital, through public subscription or the emission of obligations.

The American Association of marketing defines marketing as a process of planning and executing conception activities, price establishment, promotion and distribution of ideas, products and services, in order to realize some exchanges to satisfy the individual or organizational objectives. Ph Kotler defines marketing as a social and managerial process through which groups or individuals obtain what they want through the creation or exchange of production or values with other groups or individuals.

In the first half of the 20 th century, the producer defined marketing as the activity of research of the existing situation on a market in order to place his products, in the second half of the century , the considerable progress of humanity in the majority of domains determined that the focus of the activity of marketing was in the sphere of the anticipation of detachment , in the direction of the research of demand and the psychology of the consumer, according to which all the decisions concerning the range of products and actions on a market are to be taken.

The principal factor of the apparition of the marketing in banks was the semnificative increase in the developed countries of the financial and banking sector. Another factor of the apparition of the financial and banking marketing have been the costs that are in continuous increase, the productivity that is in stagnation and the quality of services that tend to deteriorate. The managers of the banks felt the need to receive new ideas in order to create a favorable image concerning the improvement of the quality of services and the formation of competent personnel.

In a bank, the marketing function concerns the fundamental research and marketing studies, the administration of products and networks, the promotional activity, the animation of the personnel and the financial control. In consequence, the role of the banking marketing is to attract clients and retain them, adapt the activity of the bank to the demands of the market and the production of products to clients. The banking marketing is different due to the unique relation between the client and the bank. In the majority of the services, the obligations are unilateral while in the case of banking services, both the client and the bank have mutual obligations concerning the use of the banking services by the client.

The intangibility of the services is considered to be the essential characteristic of the services, the degree of tangibility being in the last instance the principal criteria through which the services are different of material goods. A buyer can examine the characteristics of a product and its performance before buying it. In the case of a service, that does not have tangible characteristics to be evaluated before purchase, it is very important that its advantages to be understood quick and well. The intangibility of the services is reflected in the fact that these can not be heard, touched, tasted or smelled before purchase. While the marketing of goods tends to create abstract associations, the marketing of the services has to concentrate on the manipulation of concret aspects.

The inseparability of the services is referring to the fact that the services can not be separated from the bank and stocked for future consumption. The inseparability is very accentuated because the consumption occurs at the same time with the prestation of the service. Because the service is supplied by one person, this person becomes part of that service. Due to the simultaneity of production and consumption, the quality of the services can not be appreciated before the purchase, but only during the activity. The difficulty of the evaluation of the quality of the services implies the perception of a higher risk at purchase than in the case of material objects and the opinions of those that experienced the service have a special importance.

The variability of the services in banks represents the impossibility of their repeatability, identically, from one performance to the other, because they depend of the person that realizes them, the place and the moment when they are performed. The variability has influence upon the quality of services, making difficult their standardization. Consumers of services perceive this variability and try to obtain information regarding the performer before taking a final decision.

The perisability of the services represents the fact that they can not be included in inventories. Therefore, banks have to know the specific of the activity their clients are implied. Particularly, the intangibility and the simultaneity of production that have a higher influence than the perisability and heterogeneity, the last ones influencing the distribution.

The major problem that perisability can create to a bank is the elimination of the demand. If the demand for a service is constant, the bank can plan the personnel so it can be disposable for the services. If the demand is disproportional, it may appear problems and the bank has to develop complementary services of assistance.

Figure 1

The external marketing is related to the normal activity of the bank of investigating the need of the clients and to offer a service as a potential offer.

The internal marketing is referring to the activity of the bank of preparing and motivating the employees in order to offer quality services to consumers. It is based on a system of internal communication that has a corresponding mix.

Interactive marketing is concerned to the capacity of the personnel to perform the service to the client at a high professionalism level. The quality depends of the performer and the quality of the performance.