Evaluation of the relationship between marketing performance and customer loyalty in public and private banks (case study of Bandar Anzali city)

Academic Thesis for Master's Degree

Treatment: Marketing

Abstract

The competition between banks and the complexity of the marketing system of banking services have created a situation that if the competitive arena and smart solutions are not paid attention to, sometimes banks fail in their goals and are gradually removed from the competition scene. What is of decisive and final value for customers is the bank's ability to provide the services they want, therefore, to be efficient, banks need to obtain sufficient information from the customer, understand their interests and desires, and develop relationships with them. Despite the many costs that banks spend to attract and retain customers, they fail due to lack of attention and correct identification of the dimensions of marketing performance and customer loyalty and operating in a complex competitive environment. In this research, the relationship between the marketing performance of public and private banks in Bandar Anzali city has been investigated in terms of efficiency, effectiveness and adaptability with customer loyalty. This research is applied in terms of purpose and descriptive in terms of survey type, which was used to collect information and data from library studies and distribution of questionnaires. Sampling was done by a simple random method and the questionnaires were distributed among the customers of Saderat, Mellat and Pasargad banks, as private and national banks, and Housing and Agriculture as a state bank, all of whom were randomly selected from other banks. To investigate the relationship between variables, structural equation modeling path analysis and Spearman's non-parametric test for correlation between variables were used with the help of SPSS and LISREL software. The results of this research show that there is a significant relationship between marketing performance and customer loyalty in private and public banks in Bandar Anzali. Also, there is a significant difference between the relationship between marketing performance and customer loyalty in private and public banks. Keywords: efficiency, effectiveness, adaptability, marketing performance, loyalty. Competitively, banks have come up in the direction of improving and providing better performance in order to attract more resources and customers, which requires the evaluation of strategic performance and ranking of branches, thus, in addition to creating competition between branches, efficient branches are identified and inefficient branches are driven to efficiency, and they take steps to increase and improve marketing performance. The ever-increasing competition of banks, the need to be aware of bank services, the expansion of cities, the need to cover a wide range of contacts, the reflection of customers' evaluation of bank services, maintaining existing customers and identifying loyal customers and paying special attention to them are among the factors that cause the importance of bank marketing. Banks, whether public or private, are in close competition with each other. It is very clear that in this competition, the success lies with the banks that allocate a larger share of the market with the lowest cost. This requires the design and implementation of intelligent marketing strategies. For this purpose, knowing the connections and interaction between the marketing system and other systems in banking plays an important role in this field. Sometimes banks fail in their goals and are gradually removed from the competition scene. (Azeri, 1389). What is of decisive and final value for customers is the bank's ability to provide the service they want, so banks need to obtain sufficient information from the customer, understand their interests and desires, and develop relationships with them in order to be efficient. (Soleimani Beshli and Talebi, 1388 (.

McCroming[1] believes that the growth of bank revenues depends on good marketing performance, that is why in recent years, customer satisfaction has received more attention as a new attitude in the quality of organizations and institutions in marketing (Ahmadi and Pourashraf, 1386). One of the goals and functions of marketing activities is to make business environments transparent. The future or in other words, it is a prediction of the future.Therefore, comprehensive marketing is the principle that should be exploited in all stages and processes and actions of banks. In other words, planning and dividing and allocating budgets, designing services, determining the target market or markets and consulting in choosing a communication channel or media in advertising and information, creating and opening branches, recruiting human resources and so on. There are measures that are usually implemented in banks' organizations, each of them in specific and separate areas, but the marketing center is actually the center for determining the policies and policies of the organization, and apart from the executive measures, it must perform the task of homogenization between the different units of the organization (Azeri, 2018). It is necessary and necessary for every bank to use appropriate marketing strategies to attract and retain loyal customers as well as its survival in this competitive environment. In today's world, attracting customers is so important and vital for banks that it has created a very fierce competition in this field between them. Nowadays, apart from the competition between the existing public and private banking groups, the creation of new private banks, new financial and credit institutions, as well as the expansion of the scope of activities of Qarz Al-Hasneh institutions, have also led to the competition in the country's banking system in attracting customers and financial resources (Razani, 2012). Despite the many expenses that banks spend to attract and retain customers, they often fail due to lack of attention and correct identification of the dimensions of marketing performance and customer loyalty and operating in a complex competitive environment. Now the question arises whether there is a relationship between the dimensions of marketing performance and customer loyalty in public and private banks of Bandar Anzali city. 1-3- Necessity and importance of conducting research In the wake of globalization, the operational environment for the banking industry has become more dynamic and competitive. Banks, in search of competitive advantage; They have focused most of their time on marketing their banking services. So that among banks' competition in the market environment with generally identical products, marketing performance has become the first competitive weapon. Aggressive strategies adopted by public and private banks in the past have reduced customer loyalty. Therefore, the first step to provide banking services to customers and satisfy them is to market the services and analyze their expectations and perceptions regarding the quality of the service and its importance. In general, scientific marketing is a new word among Iranian banks, because marketing becomes necessary when the organization faces a competitive environment. In the last decade, the banking industry of Iran is gradually moving towards becoming more competitive with the changes in the field of deregulation, the start of activities of credit institutions and private banks, service delivery technologies and setting growth targets on the part of banks that are mostly state-owned. In the last few years, the country's banks have opened marketing and market research units, which is a clear proof of the industry's move towards becoming competitive. Without a doubt, in the near future, we will witness its intensification. In the current situation where customers have realized their value and the role they play in the success of banks and have found much higher and different expectations than in the past, on the one hand, the emergence of private banks and institutions (in other words, private and economic perspective) and their high competition in outdoing each other to attract customers and increase their share of the market, on the other hand, has caused marketing and attention to customers and competition to find a special place in organizations, especially banks and financial institutions. One of the goals and functions of marketing activities is to make future business environments transparent, or in other words, to predict the future. Therefore, comprehensive marketing is a principle that should be used in all stages and processes and actions of banks. In other words, planning and dividing and allocating budgets, designing services, determining the target market or markets, and consulting in choosing a communication channel or media in advertising and information, creating and opening branches, recruiting human resources, etc.