“PROMOTION OF BANKING PRODUCTS IN KOSOVO, INCLUDING ALL FINANCIAL INSTITUTIONS “

Abstract

Considering the economic development of our country, the increase of the number of ommercial banks in Kosovo, and also the increase of customers number and creation of banking clientele in Kosovo is necessary the development of researches and analysis on the way of development and content of promoting banking products and services in the republic of Kosovo. Purpose of this paper is the analysis of measures and standards in the field of promoting banking products inKosovo for all commercial banks in our country. This paper presents the general principles of marketing and promotion and also the special principles and measures of promoting products and banking services in our country, role of developing banks, role of the products and staff in their clientele and informing and consulting with customers. For the execution of this paper are collected and analyzed from books and different academic publications. Anyhow research in the field with the representatives of commercial banks, academics and students and that makes this paper very understandable on how the situation is and how it should be fixed. Also at the end this paper confirms the importance of promoting banking products especially in the agriculture and industry sectors and its importance in development, in general. This paper will elaborate and define the actual state of commercial banks and relations between banks and their clients and important changes in the near future. The whole paper has to do with identification of promotion in banking industry. The use of mix marketing in banking industry is growing day by day. Therefore the concept of banking promotion is important for every bank. The main purpose of this study is to make a general review of banking products promotion, to design the role of promotion in the industry of commercial banks in Kosovo, and to see how the mix marketing (product, price, place and promotion) is very important for banks. The use of 4 Ps and 3 Cs (consummator, cost, communication and convenience) and its application on promoting banking products and the form of promotion is becoming very important for banks. To summarize the whole thesis, the paper includes detailed study of the role of marketing in banking sector. Banking promotion has become extremely necessary as a weapon of survival which essentially is changing the banking industry worldwide. Increase of banking promotion makes the redefinition of business relations and the most successful banks are those who can truly strengthen their relationship with the customers. Technological innovations and tough competition between the existing banks have enabled an extensive network of banking products and services making available for retail or majority customers through the channels of electronic distribution, in general referring to E-banking. Technology is changing the inner and outside relations between banks and its customers. Promotion presents mechanisms of communication: exchange of information between the customer and the seller. Obligation of promotion is to inform, reminisce and to convince the customer in order to see his reactions towards the products of the enterprise. Promotion is a process of communication between the customers and the seller in order to create a positive state towards the products and services which the enterprise has placed in the market. Promotion is the main mechanism of promoting products and banking services whereby the commercial banks create a relation with their actual customers and those who are potential performing simultaneously the function of information.