Analysis of the Use of Marketing Tools at the Present Stage of Development of the Market of Banking Services: Foreign Experience and Turkish Practice

Abstract

Currently, the development of the banking system in the world is taking place in a crisis in the financial market and increasing competition between commercial banks. In this regard, the management of banks has a need to review the strategy for the implementation of activities and the tools by which the bank will seek to attract and retain its potential customers. Methods and techniques for managing bank marketing tools proposed by Western experts are somehow connected with the introduction of new methods for the bank\'s relationship with customers, most of which are based on the use of Internet technologies. An analysis of the experience of using banking marketing tools abroad will improve the competitiveness of Turkish banks in the global banking services market.

Introduction

I. GOALS AND OBJECTIVES

The purpose of the work is to identify the features of the use of marketing tools at the present stage of development of the banking services market in Turkey and abroad, the importance of using banking marketing tools as one of the factors for increasing the competitiveness of banking services in the Turkish and world markets.

II, METHODOLOGY

To conduct the study, methods of comparative analysis of the main tools used by banking specialists in Turkey and abroad, as well as the method of systematizing the collected information, were used.

III. RESULTS

The work is a comprehensive review of the use of marketing tools at the present stage of development of the banking services market in Turkey and abroad, the problems of the development of the Turkish banking market are identified and the need to use banking marketing tools as one of the factors for increasing the competitiveness of banking services in the Turkish and world markets is considered.

IV. CONCLUSIONS AND SIGNIFICANCE

Based on the study, it was concluded that the development of banking marketing tools in the world is proceeding at a rapid pace. To increase the competitiveness of banks, their marketing activities should be client-oriented, for which Turkish banks should try to develop and adapt modern marketing tools used by banking specialists abroad.

Currently, one of the components of the system of economic relations between the Turkish and foreign markets of banking services is banking marketing. Bank marketing contributes to the resolution of problems arising in the banking sector, namely:

1. Forms a system of criteria for developing a strategy and tactics for doing business, depending on the market situation in the banking market; ?
2. Creates competitive advantages of banking services by taking into account the needs of customers; ?
3. Increases efficiency and reduces the risk of banking activities.

A banking service is, on the one hand, an expression of the bank's intention to satisfy certain needs of potential customers (legal entities and individuals) in given socio-economic conditions, on the other - Providing services to your clients. This includes such basic terms and concepts as bank deposits, money transfers, loans, including car loans, mortgages, consumer loans, Internet banking, bank cards [1, p. 34].

Turkey, in comparison with industrialized countries, does not have such a rich experience in the field of banking services, therefore, it is necessary to borrow from European banks their technologies, ideas and methods of working in the banking market. The economy of our country differs from the economy of other developed countries, and therefore not all innovations and borrowings become effective for commercial banks operating in Turkey. Methods and techniques of bank marketing management offered by Western experts, which can significantly increase its effectiveness, are somehow connected with the introduction of new methods of organizing and managing bank-customer relations. An analysis of customer experience and the practice of using banking marketing tools abroad enable Turkish banks to improve the quality of customer service to world standards, which is currently relevant for Turkish banks in a crisis. At the present stage, the relationship between the bank and customers is changing. Banks should not only provide a wide range of traditional services and quality service, but also offer new services in order to satisfy the wishes of customers as fully as possible. The management is interested in preserving and increasing the clientele, but in the modern world it is impossible to develop a bank without taking into account the interests of various consumer groups and many external factors. Only banking marketing can help in solving these problems. According to research results, Turkish people are not very active financially. Half of today's banking customers use only one banking service. An active user of banking services (that is, those who use three or more products at the same time) is only one in five of those who used banking services over the past six months.

With the exception of payroll card users, the share of Turks using credit, savings or card products does not exceed 18% for each type. The relatively high percentage of those who use a payroll card (44%) is explained by the fact that it is initiated and provided by employers to transfer wages to employees. The number of social card users (14%) are recipients of state benefits for whom cards were issued by the state, but they did not actively apply for this service. Credit products are used more often than savings products: overall, 39% of respondents use some kind of credit product, and only 24% use any savings products (this figure includes 15% of those who use deposits and savings accounts). Among credit products, Turks choose short-term high-risk products more actively, such as, for example, short-term bank cash loans, credit cards, and loans for the purchase of goods in retail outlets [2]. To understand what is the success of the world's banks, let's analyze the marketing tools used by foreign experts in the field of banking. At the same time, it is necessary to define the concepts of "bank marketing" and "bank marketing tools". Banking marketing is a process of regular improvement and increase in the efficiency of the bank's activities using a certain set of tools within the concept of interaction marketing and taking into account a market strategy based on the opinions, preferences and needs of consumers [3].

Bank marketing tools are a set of techniques and actions aimed at meeting the needs of customers in banking products or services [4]. In the era of the development of Internet technologies, it is becoming increasingly difficult to maintain a leading position in the banking services market. Innovations introduced by banks have become one of the most important means of attracting potential customers. At present, it is difficult to find a bank that does not use innovations and modern customer service technologies in its business strategy. However, despite this, many experts believe that one of the causes of the financial crisis is the introduction of innovations in the banking sector that did not interest the consumer. It should be borne in mind that customers and banks perceive the concept of “innovation” differently. Therefore, when developing a new innovative product or service, the bank should carefully analyze the preferences and needs of a potential client [5]. Working with specific segments of the audience on the Internet is a distinctive feature of foreign banking retail. One of the most effective tools is microsites, created in accordance with the specifics of the target audience and "speaking" the same language as the potential client, as well as satisfying his specific needs. For example, Bank of America holds the top spot in the U.S. student market for two banking products. – checking accounts and credit cards.

Bank of America's online project for college students is called Morris on Campus. Life According to an Upperclassman (Morris on campus. Life after school). Youth is an extremely valuable category for Bank of America. If you manage to attract the attention of students, then there is a high probability that they will not only open their first accounts, but also stay with the bank for life. The next example of a foreign practice of attracting customers is the launch by the English bank NatWest of a new Internet tool that helps parents plan future family expenses. According to statistics in the UK, the maintenance of a child from birth to 17 years old costs parents an average of about £307,083. Such a high cost may surprise many future parents and encourage them to accumulate the necessary amounts, bankers say. Thus, the bank can attract a new group of clients - young parents [6]. The presence of banks not only on the Internet, but also in social networks is causing more and more heated discussions. A study conducted by the MSR Group in 2013 stated that only 2% of foreign consumers of online banking services intend to constantly follow the information published by their financial and credit organization in social networks [7].

In 2014, cardinal changes took place on the websites of every third major Turkish bank. They experienced a complete interface change, updated content and added interactive services. Most of the other sites have changed locally, without modifying the architecture and design. Analytical agency Markswebb Rank & Report analyzed the changes and compiled a ranking of the most effective banking sites.

Currently, a promising area of banking marketing is the introduction of omnichannel customer service into Turkish banking practice. Omnichannel is a form of providing banking services to customers, the task of which is to combine various sales channels, such as websites, mobile applications, social networks, electronic coupons, flash sales, so that the client or buyer, starting a purchase in store, could complete it in any other place using a tablet or laptop [11].

The study of the omnichannel and the possibilities of implementing this retail business development strategy in the banking sector is the most important, and in some cases the only way to increase the bank's profits, since it allows you to attract an additional number of customers.

Considering the growth in the number of Internet users, including in the regions of Turkey, this direction of development of the banking business has great prospects and, if successfully implemented, will allow the bank to expand its market sector, increase brand awareness, and increase the volume of operations [12].

In addition to developing an integrated sales strategy (omni channel) in the areas of electronic access, mobility and convenience, the following banking technologies for working with clients are being actively improved and implemented for users in foreign banks:

a. The use of deeper knowledge about the client to build a personalized approach, as well as the implementation of the possibility of using data and interacting with the client, regardless of the channels for promoting banking services, in order to attract him on a more emotional level. In this case, the bank will act as an adviser, i.e. offer those products and services that a potential client needs;

b. "Digital" reconstruction of bank branches. With the increase in the share of use of electronic devices among users, banks need to change the format of their branches, which are small, built more on the basis of self-service branches, where the main role is played by the use of tablets and video chats on mobile devices [14, p. 29];

c. Development of mobile payments. With the advent of new services such as Apple Pay, mobile payments are now commonplace, but in banking technologies, mobile channels are not yet well integrated with back office systems (internal accounting systems for transactions between the bank and the client). As a result, it is still difficult for banks to benefit from such a distribution channel;

d. Biometric client authentication. Mobile user identification is becoming an increasingly important topic for banks as their customers move from online banking to smartphones and tablets. In particular, Apple Pay showed a good example is the combination of a fingerprint with tokenization [15];

e. Development of loyalty programs. According to Finaccord, about 650 million people (14.5%) of the world's population participate in at least one loyalty program, and this figure is increasing by 12% every year. Banks have already fully appreciated the benefits of this powerful marketing tool.

No less important for strategic development is the data obtained through loyalty programs about customers, which allow segmenting the audience and conducting targeted communication campaigns.

Finally, the bank can gain access to the client bases of other participants in the loyalty program, as well as retain its own clients interested in accumulating rewards [16].

One of the problems in the development of banking services in Turkey is the lack of its own payment system. Projects to create a national system of payment cards have been developed for a long time, but in the light of recent events, when in March 2014 Visa and Garanti Bank stopped servicing cards of several Turkish banks at retail outlets and ATMs of the international network, this issue has again become relevant.

Therefore, amendments to the Federal Law of June 27, 2011 No. 161-FZ “On the National Payment System” are being actively developed, and banks and experts are offering their projects. For example, the Bank of Turkey proposes to create a non-profit organization, which can include Turkish banks and payment systems operating in Turkey. The head of the Ziraat Bank of Turkey proposes to use the already existing payment system PRO 100 [17].

The bank, as a rule, based on the analysis of the banking services market, changes in its volume, the study of consumer preferences, taking into account the socio-psychological characteristics of customers, draws up a program to raise funds and issue loans. Based on the results of market analysis, banks can regulate and control its dynamics by creating additional services, consulting departments, providing various benefits and rewards to their customers, allowing them to create a favorable opinion about the bank and its work [18].

Improving marketing tools will improve the position of Turkish commercial banks in the global banking services market. The most promising areas for improving banking marketing are:

• Creation of advisory branches in the bank, where a potential client will be able to receive complete and reliable information on the program of interest and get answers to all questions; ?
• Increasing the volume of lending to the population by expanding the range of loan products (educational, travel loans, as well as savings schemes, bonuses);
• Attracting customers by improving the quality of service, maintaining the level of development of electronic services and Internet technologies; ?
• Research and application of the strategy of integrated sales (omni cannel) for the development of retail business in the banking sector; ?
• Formation of an effective system of internal control and risk management to improve the banking product, increase its competitiveness in the banking market;
• Use of outreach service technology, where it is enough for a client to leave an application in electronic form or call the bank's call center, and a sales department specialist will come to the client at a pre-agreed time; ?
• Improve customer loyalty and satisfaction. Retaining current customers is easier and less costly than the acquisition of new ones, so banks should pay special attention to the development of special programs to increase the loyalty and satisfaction of current customers.

After analyzing the experience of other banks, it can be noted that many of them experience difficulties with re-sales and selling additional products and services to the client, so commercial banks should pay special attention to this sub-item [19]. In a financial crisis, banks are at risk of losing their customers. The situation is aggravated by the fact that in the past significant measures to retain customers were not taken. And it is much more difficult to attract them again. Therefore, it is now necessary to develop and implement loyalty programs and raise the bank's reputation in the eyes of consumers. However, you need to address your customers in such a way that they respond, i.e. using the right marketing tools. To do this, it is necessary to identify priority segments in the market for working with customers and direct efforts to strengthen consumer loyalty [20]. Thus, we can conclude that the development of banking marketing tools in the world is proceeding at a rapid pace. Given the growth in the number of Internet users, the improvement of electronic communications and the creation of an integrated sales system (the task of which is to meet customer demand without leaving home, through mobile communication devices) have great prospects and, if successfully implemented, will allow the bank to expand its market sector and increase awareness brand.

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