Optimization of Bank Expenses on Marketing Communications

Abstract

Dynamic changes in the banking services market that have taken place over the last decade, in particular, increased competition, expansion of banks with foreign capital, restructuring of the branch network of banks, situations of the market by the same type of services, etc., an increase in the level of supply in this market, which encourages banks to intensify efforts to strengthening its competitive position, attract new and maintain existing customers. At the same time as the supply on the market of banking services increased, demand for them decrease as a result of the general instability in the economy as a whole and in the labor market, in particular, a decrease in the profitability of the enterprises of the real sector of the economy, the solvency of the population and customer confidence in banks due to the global financial crisis. Under these conditions, most banks focus their efforts on finding effective tools for promoting their services, promoting sales, improving their image, conducting promotions and establishing public relations (PR), etc., which necessitates the development and application of a set of measures to manage the marketing communications of the bank.