E-MARKETING ON BANKS CUSTOMER; ISSUES AND CHALLENGES

* C.Arunachalam Research Scholar & *Assistant Professor , Dept of Commerce K.M.G. College of Arts & Science, Gudiyattam. ---------------------------------------------------------------------------------------------------------------ABSTRACT Electronic Marketing emerges from the Internet and web technology to facilitate internet and its associated technologies in e-banking. It focuses on internet or web based interaction between banks and their customers. Above all, e-marketing enables service sectors to provide appropriate services and products to satisfy the customers so as to retain customer royalty and enhance customer profitability. Electronic Marketing is evolved recently with the emergence of information technology such as Internet and web technologies for more customer satisfaction. This study pursues to stretch an overall interpretation of Electronic Marketing influence on the banks with distinct concentration on some issues and challenges. In contemporary globalize scenario several innovative technologies, especially the Internet, have been changing the ways of doing banking. The banking industry is extremely information intensive, and thus makes it important to recognize new development in strategy to create value through the e-commerce on E-Marketing. We live in a technological epoch and customers are now fuelled by internetincluded potentials and an even increasing mood of resourcefulness. Actually Electronic Marketing is seen to arise from the consolidation of Traditional Marketing with the e-business applications marketplace and has created an outbreak of activity among companies. In contemporary epoch E-marketing is an innovative marketing apparatus in globalizes economy. In present scenario information technology, integration of knowledge, internet and healthy relationships with customers the crucial assets for the survival of E-marketing in the globalize economy. 1.1 Introduction The appearance of electronic channels and information technology such as Internet, web technologies, mobile phones etc. has speedily changed the traditional marketing methods. Rapid and quick growth of information technology has exaggerated numerous parts of our society including human society, business world, communications etc. In this technological era, every each and every one type of organization, producers, retailers, manufacturers, service providers, consumers etc. are found of the Internet, Rapid Development in the Information Technology during the last couple of decades has brought a new additional dimension in the ground of marketing. E-marketing brought a revolution for business to communicate and interact with their customers. It expands the business to the global world and brought customers to reach globally. It provides new market to sell and market the product with more opportunities and competition 1.2 Review of Literature Some studies have been reviewed here which shows what happened when E-marketing experience as marketing tools use for communicating. Meng Xiaoming (2010) founded that Ecommerce share the closest relationship with E-marketing. Development of Ecommerce model is useful for E-commerce development and promoting E-marketing methods in the new economy. Nathan C Senthil (2009) tries to explain that modern technology such as 'Internet' and 'Mobile Phones' provide information to the consumers. Its methods and applications help to innovate new E-marketing methods for the survival of E-marketers in the competitive market. Strauss Judy and El-Ansary Adel (2010) suggested that the domain of E-marketing is much greater than other dot-

coms. Technology and Internet totally changed the way of conducting marketing and always trying to make effective and efficient marketing strategy. In this paper E-marketing is defined with the framework of different business models along with its best practices. Kumar Narendra & Kumar Mohan (2005) stressed on the banks to improve the quality of their customer service. Sheth N Jagdish & Sharma Arun (2005) was of the view that dramatic pace development of Emarketing gave a wide impact on customers and business market. In this paper the critically examines the E-marketing strategies relationship with contexts to different countries infrastructure and marketing institutions. Banks provide fully computerized services to their customers in which half services gained efficiency and half not. This article also emphasizes on the term 'any counter concept' which should be to adopt immediately in the bank to make customer free to approach any counties in the bank. A review of the work done in the area of Emarketing, some of the pertinent literature available scanned which are collected from various research papers, articles and books related with the topic which shows that work have been carried out in the area of E-marketing by several researchers. But none of the study is conducted on the topic "Influence of E-marketing on Banks An Overview on Issues and Challenges". So, this paper is an attempt in this direction. 1.3 Objectives of the Study 1. To create a healthy environment of E-marketing in Banks. 2. To create a better understanding of E-marketing among the Banks customers. 3. To find out the issue & opportunities of E-marketing for customers. 1.4 Scope of Study This study helps to understand about the concept and influence of E-marketing on banks customers. The study will help to understand the influence of E-marketing on banks customer with the Internet and other associated web technologies for future sales policies and sales promotion strategies. This is like a descriptive method of understanding about how to promote products and services in the market with E-marketing. This paper also gave emphasis on Emarketing issues and its opportunities in the banking sector for the customers. 1.5 Research Methodology The research aims to investigate the influence of E-marketing on banks and its customers. The present methodology used in the paper is based on secondary data which is collected from various books, papers, articles, web links and books. 2. E-Marketing

E-Marketing stands for electronic marketing. In contrast to traditional marketing, E-Marketing takes marketing techniques and concepts, and applies them through the electronic medium of the internet. Essentially, E-marketing threads the technical and graphical aspects of online tools together, allowing for design, advertising, brand development, promotion and sales.

Marketing has changed. Traditional advertising does not work, brochure-like websites do not work, and the web has given people ultimate freedom of choice and of goods. When there are no monopolies and constrictions, interrupting people's lives is not effective marketing anymore." Damien Mulley There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone. Cluetrain Manifesto An online marketer now needs to find where people are congregating online and needs to engage them in a meaningful way. Be it in matching with what they are looking for, watching how they interact and understand what theyd like or listening to their natural opinions on your company or market and reacting to that. E-Marketing is a subset of e-Business that utilizes electronic medium to perform marketing activities and achieve desired marketing objectives for an organisation. Internet Marketing, Interactive Marketing and Mobile Marketing for example, are all a form of e-Marketing. 2.1 Advantages of E-marketing for customers E-marketing promotes huge size of products and services at an affordable price. Specific benefits of E-marketing services include: E-marketing allows the users to come across new markets and to succeed globally. Planned and effective E-marketing movement can reach to the precise customer at a reasonable cost. E-marketing provides 24 hour marketing. Personalization helps to come across the customers and make them enlighten about targeted offers using website. One-to-one-marketing. Interactive campaigns are structured to generate awareness about E-marketing. Improved conversion rate. Uses on E-marketing E-marketing is a broader term that performed marketing activity with the electronic channels, technology, customer support, knowledge of market etc. Electronic Marketing brought up a moderately new dimension of marketing for customers where they can be buy their product & services through electronic channels. E-marketing mainly works effectively in the electronic market. It is all about making the practice of marketing and sales more cost effective and efficient. E-marketing is a notorious term with a comparatively new concept. E-marketing workings as a computer based marketing tool. 'E-marketing' utilizes electronic channels to accomplish their marketing activities with that attain marketing objectives of the organization (Petrovic. D, 210). It enters in the business vocabulary around 1970s with the flawless application of information technology (Gaurav K, 2010). Various media tools such as e-mail, internet, mobile phones and other wireless media, E-marketing includes the broad range of application of information technologies such as (Vibhor K, 2010). E-marketing creates additional customer value by transforming marketing strategies during effective segmentation, targeting, differentiation and positioning strategies. E-marketing make arrangement and execute the conception, distribution, promotion and Pricing of goods & services. E-marketing satisfies the individual consumer and organizational customer's objectives

E Marketing organization chart:

2.4 E-marketing Influence on Banks Banking industry in the earlier period functions in a steady environment but in recent times it has been experiencing the escalating competition in the fresh deregulated market. In the present scenario, all banks have to reorganize their competitive strategy in order to secure its present status in the market. The purpose of the banking industry was to develop a marketing strategy and its management at a superior level to make a better position in the market to give a competitive edge to be advantageous among each other. A right competition renders better service to the customers to attract them with a variety of schemes and offers to mobilize their market value and become superior among all banking industries. Every banking industry has to concentrate on acquiring heir position in the market by building their position in such a way that no threats to their market value would be encountered by their competitors. No banks are able to offer all the beneficiary schemes together and become the best among all. The important factors on which the banks should focus, is to improve and enhance the quality of their services and products to be preferential over other banking industries (Jama. M. H., 2010). Frequently an Emarketing campaign includes several objectives and collectively constitutes the goal of the campaign. In order to accomplish a goal, it is crucial to deploy E-marketing technology and data mining techniques to grant feedback to measure the achievement of objectives (Sh. N. & Murthy. V. K., 2009). 3. Formulating a Marketing Strategy in Bank ( Farooqui. S.U., 2007) Marketing strategy is formulated in banks to achieve the overall framework of the corporate objectives and strategy of bank. Several market forces and analyzed during the overall premising strategy and many basic questions regarding marketing objectives. It includes the process in formulating the marketing strategy like, 3.1. Undertaking Marketing Opportunities Analysis Strategic Marketing Planning begins with the attempt to recognize and attractive set of opportunities for the bank. The fresh economic and industrial policy and the rapid technological up gradation are likely outcome in increase in industry demand for bank funds, Credit creation

competence of banks will increase that lead to increase in growth of deposits. All these developments provide adequate indication of survival of whooping deposit potentials in the ensuring years. In assessing the market opportunity the banker must appraise sales potential of each opportunity for that it is necessary to examine the individuals who buy the service, what are their special features, how many would buy, where they are located, who will be the competitors, what distribution channels would be needed etc. 3.2. Selecting Goal Markets Bank Marketing Analysts formulate an in depth probe in each of the potential market areas to want the target market particularly groups of customers to whom the banks appeal. The market segmentation shares several common practices. The bases for segmentation can be income, age and profession. Geographically market is separated according to Metropolitan, Urban, Semi-Urban and Rural Areas. Another task occupied in targeting market is to evaluate the various segments i.e. segment size, and growth, segment structural attractiveness and bank's objectives and resources. It is also necessary for a bank to study the population group-wise data. Rural, Semi-Urban Branches must recognize significant group of customers in these areas and devising suitable schemes to suit their requirement would give assured results which help the bank in beating the potential of the identified target group. 3.3. Influential Viable Positioning Banker must be assess the strengths and weaknesses of the existing bank's schemes and services. These assess helps in raising a wide- ranging idea of what kind of offer to make to the target market in relation to what competitors offer. Market research is needed to learn about competitors offering to customers in the target market and what customers really want. 3.4. Marketing Strategic Decisions Once the Management identified the strengths and weakness and assessed the trends in the environment to isolate the opportunities and threats, suitable strategy has to be formulated to achieve the bank's objectives of garnering deposits on an increasing scale from different corners of the country and maintain its market share in total deposits of the country. 4. Issues & Opportunities 4.1 Issues Profitably acquire and retain customers in banks. To Improve our customer knowledge (of their profiles, behaviors, value and satisfaction drivers), then delivering targeted communications and online services that match their individual needs. The Top Ten Strategic E-marketing issues are (Chaffey. D, 2004) The E-Marketing Planning Process Organizing and resourcing for e-marketing Defining the Internet value proposition E-Brand value Setting the e-communication mix E-Mail marketing integration E-Customer Relationship Management Building and exploiting customer knowledge E-Marketing automation E- Channel optimization 4.2 Opportunities The internet opens up the globe for e-marketers. No longer are international marketing and trade the monopoly of the giant multinational corporations. With the web's low barriers of entry and its incredible ability to circulate information and make easy contacts to nearly all points on earth, all marketers can ply the art and science of e-marketing on a global basis to develop and enjoy both domestic and foreign markets. E-marketing will make choices profoundly available in

developing countries that prior to e-marketing efforts, did not enjoy the reach now made possible online marketing and lawmakers worldwide to consider how law governing contract, intellectual property and consumer protection can be changed to facilitate the productive use of the new medium. The goal of many these efforts is law that is more transparent, uniform and commercially tolerant. E-marketing opportunities focus on activities such as direct interaction with a customer or through a distribution channel. E-service opportunities can enable an organization to enact new ways to address customer needs. E-marketing opportunities too may take several forms- (Glaser. J. P. 2002) Delivery of consumer health content and wellness management tools over the internet Use of consumer health profiles to suggest disease management and wellness opportunities. 5. Conclusion From the above conceptual framework it is obvious that E-marketing is a new information technology tool in this present era. As new technologies such as internet are available in the present industries it is important that e-marketing management must provide accurate guidance to e-marketing initiative. The domain of E-Marketing as a marketing tools is much greater than the traditional marketing. E-marketers who grasp digital technologies properties identify the best practices level held in Banking But, presence of information technology in e-marketing is considered as a boon to the economy which gives wider impact on the customers with numerous opportunities. E-marketing is responsible in creating tremendous opportunities for more effective and efficient processes and strategy implementation. The framework have been presented here based on, the literature which provides some insights on the creation, working and delivery of emarketing influence on banks. An overall view on electronic marketing it can be stated that Emarketing cannot be considered as a substitute of traditional marketing. It plays a dramatic role in the present era of marketing with electronic channels as a marketing communication tool. Emarketing has given a positive and encouraging response to the customers. It provides required information along with customers order for the product and payment online. Changing banking era opened up numerous opportunities for E-marketing. Banks provides tremendous support to Emarketing in brightening their global presence through self-expansion, strategic alliances etc. It is not easy to develop successful E-marketing in the new marketing world. References : Books / Papers 1. Strauss Judy and E1-Ansary Adel I (2010)"Integrating The "E" In E-Marketing", Journal of Business & Economics Research, Volume 2, Number 8, pp. 69-79 2. Sheth N Jagdish & Sharma Arun (2005). "International E-marketing: opportunities and issues", International Marketing Review, Volume 22, No.6, pp. 611-622 3. Mean Xiaoming, (2010). "Study Combining of Ecommerce and E-marketing", Journal of Software, May, Volume 5, No. 5,pp.546-553 4. Nathan C Senthil, (2009). "E-Marketing-Methods and Applications- for Successful Marketing in Global Marketing Scenario", Indian Journal of Marketing, January, pp.45-54 5. Jama. M. H, (2010). "Strategies Adopted by local banks to Attract New customers- a Case study on Handersbanken in Lulea, Bachelor Thesis marketing, Lulea University of Technology, p. l 6. Glaser. J. P, (2002). "The Strategic Application of Information Technology in Health care organization"(Second Edition), John Wiley & Sons,Inc, p.25-26 7. Shi. N & Murthy. V. K (2009). "Architectural issues of web-enabled electronic business", Idea Group Publishing, p. 323. 8. VibhorKalra, ( 2010 ). "E-Marketing", available at http://www.scribd.com/ doc /38318465/ EMarketing (accessed on 28/09/2010). 9. P e t r o v i c D e j a n , a v a i l a b l e a t http://analogik.com/article_principles_of_emark eing.asp 10. Chaffey. D, ( 2004 ). "Top Strategic E-marketing issues today and tomorrow available at http://econsultancy.cum/us/forums/othertopics/ top-ten-strategic-e-marketing-issuestoday-

and - tomorrow ? Page = 1, accessed on 26/03/2001 ) 11. Gaurav K (2010). " Trust in Electronic Marketing", Indian Journal of Marketing, January, pp. 49. 12. Farooqui. S. U,(2007) . "Marketing of Banking Services" Banking Finance, September, Volume XX, Issue on.9, pp. 13