I. Introduction
Within our society, financial institutions are becoming more abundant. Along with this present growth, the field of marketing financial services has also grown in size and scope with new entrants everyday. The relatively stable banking environment is being altered with innovation, opportunism, and government intervention. This era, marked by the government's luminous hand of deregulation (defined as the act of removing regulations or restrictions from a specific entity), has expanded consumer options to the extent that commercial banking must now become an aggressively competing member of the financial services industry. In this new era, important marketing areas such as regulation, environment, product, competition in the market, and delivery of product can no longer be overlooked.
II. What is Marketing and Its Role in the Success of Financial Institutions?
What is marketing? According to the American Marketing Association, marketing is the "performance of business activities that direct the flow of goods and services from producer to consumer or user." In the context of the financial institution, marketing is defined as the "creation and delivery of customer-satisfying services as a profit to the bank or financial institution."(McMahon, 1986). With further examination of the previously stated definition, it can be seen that marketing is looked upon as 1) an active process (therefore, ongoing with endless possibilities), with 2) a direct focus on the customer or consumer. Initially, it can be seen that marketing plans that result in efficient returns and profits do not appear out of thin year, but are created. (McMahon, 1986). Once created, these plans must be delivered properly to the consumer. For example, a tell ...