EFFECTIVE marketing is the only way out for a competitive banking sector.
It is remarkable how the banking industry has grown in Zambia during
the last 10 years.
 A snap survey around the city of Lusaka’s central business district
reveals a multiplicity of commercial banks.
One can only assume that this significant development is due to
favourable and conducive social, political and economic environment
created by the Zambian people and the serving governments.

 More than 20 years ago, Zambia embarked on a number of long-term economic
reforms across all sectors, which in the long-run have begun to bear
fruits.
We have witnessed the entrance of new players in all sectors of the
Zambian economy, for instance the banking industry is one sector that
has registered positive growth in the last decade.

 With more than 10 registered commercial banks in the country we can now
say that the playing field has been well levelled and is conducive for
competition.
 Competition as we all know is healthy for every business as it keeps
organisations on their toes, to continuously conduct self-assessments
as well as  strive to improve on their products and services.
 This ultimately works to the benefit of the consumers and customers.

Consumers are today benefiting from banking services and products in
many ways, such as the freedom to choose and better improved services
because every bank is trying to hold on to its customers.
Realising they are operating in competitive market, most banks are
beginning to appreciate the importance of marketing effectively.

 This can be observed through efforts by most of the banks in trying to
identify financial need.
They have come up with efforts to introduce highly innovative products
like highly mechanised systems and processes like Automated Teller
Machines (ATMs) and online or internet banking.
Most banks are also trying hard to ensure that they get close to their customers and provide convenience around the clock.

 This goes to show how stiff competition is in the banking sector and
how every player is striving hard to hold on to clientele base and
market share.

  However, the biggest challenge that most of these banks might face is
that of meeting their customers’ expectations and needs based on
proper research and needs assessment.
 Given the high levels of aggressive competition, there now appears to be a tendency by most
players to be merely copying and duplicating their competitors’ marketing strategies.

  An example can be given on an SME product targeting some marketeers
that was initiated by one of the commercial banks; the product was
promoted with a local name signifying that it was really meant for the
low-end customer.
Soon after being launched, a number of banks followed
suit and introduced SME products with local names practically
offering the same benefits.
 At the risk of being misunderstood, I want to say imitating is not bad altogether.
In marketing, there are those who are often known to be market leaders or the initiators
and this is good for the markets, all products were initiated by one innovator at some time.

 What is not healthy is the copy-and-paste approach totally void of any creativity that we are beginning to witness among our service providers.

 The point I want to emphasise is that for the banking sector, which is rather a complex business, devising a Unique Selling Proposition (USP) is the best approach for developing a competitive advantage.
 Developing a unique selling proposition involves drawing up a comprehensive marketing plan which clearly outlines and elaborates strategies depending on the nature of products and target markets.

 Relationship marketing is a relatively new marketing concept which was propounded in the 1990s whose main focus is customer satisfaction, customer retention and customer service.
Business-to-business marketing has been known to apply this strategy where customer loyalty is seen to be important.

  For the banking sector this approach can effectively help position a
bank as outstanding since most banks do not deal with the mass
markets, meaning that bank products are usually segmented or are
specifically tailored for particular groups or markets.

  An example could be corporate or institutional banking products for
companies or organisations, personnel banking products usually meant
for individual bankers, SME products which are meant for the small medium enterprise who comprise traders, dealers, agents and other
businesspersons.

 Using relationship marketing ensures that the individual needs, requirements, problems and challenges are given  special attention and dedication.
 This approach is highly personalised.

 At the centre of this approach is the establishment of the customer relationship management programme (CRM) which allows efficient and effective processes and procedures.
 For comments, write to ndhlovudennis75@gmail.com or on twitter@ndhlovu1.
Call: 0954 536875
(The author is a consultant in marketing, public relations and customer service)