Determining the right marketing-related metrics to maximize profitability in banking

Abstract

Purpose - Securing a sustainable competitive advantage is crucial in today’s highly turbulent market environment. One of the requirements for achieving this objective is understanding the interrelationships between marketing activities and business performance through the use of a suitable method of marketing performance assessment. Accordingly, the purpose of this study is to propose a model that can be used to assess the business performance of banks from the perspective of marketing resources, marketing activities and customer-based brand equity. Methodology - The study employs panel data derived from the banking industry in Turkey. The model is tested using panel data regression with the EViews 9 program for short-term and long-term perspectives. Findings - The analyses show that the business performance of banks is affected by marketing resources, marketing activities and customer-based equity with variable impacts affecting short-term and long-term outlooks. Conclusion - Marketing performance assessment is a key requirement for creating the most effective marketing strategy and that can be done by determining how marketing-related factors impact business performance. Rather than only examining the impact of a marketing mix, marketing performance assessments need to employ a comprehensive approach by also including investigations of the effects of marketing related resources and customer-based indicators on business performance.