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Practitioners’ perspectives on the marketing strategies in Indian banking sector: a framework for strategy formulation

Author

Listed:
  • Archita Pal Choudhury

    (Techno India Group, Maulana Abul Kalam Azad University of Technology)

  • Amit Kundu

    (Techno India Group, Maulana Abul Kalam Azad University of Technology)

  • Dev Narayan Sarkar

    (PepsiCo India)

  • Arabinda Bhattacharya

    (University of Calcutta)

Abstract

The present study analyzes the marketing philosophies followed by banking sector executives in India. Four distinct constructs of marketing practices are identified: Transaction Marketing (TM) and Relationship Marketing (RM). The variants of relationship marketing are classified as: (a) Database Marketing (DM) (b) Interaction Marketing (IM) and (c) Network Marketing (NM). The theorized constructs of marketing strategy were utilized in a survey of banking executives. A random sampling method, using an industry database of banking executives, has been utilized. Exploratory, as well as, confirmatory factor analysis, followed by data imputation and structural equation modelling was performed to validate a model. The present study shows that interactive marketing, as well as, database marketing strategies play dominant roles in the success of banking business, especially in the case of private sector banks. Transactional marketing also has some importance in determining the performance of private sector banks. This study should be significant in the sense that it provides a comprehensive and exhaustive review of the TM, DM, IM, and NM marketing strategies and a model to predict the Return on Asset (an indicator of the success of any bank) using the banking executives’ marketing propensities.

Suggested Citation

  • Archita Pal Choudhury & Amit Kundu & Dev Narayan Sarkar & Arabinda Bhattacharya, 2023. "Practitioners’ perspectives on the marketing strategies in Indian banking sector: a framework for strategy formulation," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 146-177, March.
    • Handle: RePEc:pal:jofsma:v:28:y:2023:i:1:d:10.1057_s41264-022-00142-3
    DOI: 10.1057/s41264-022-00142-3
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