Marketing effectiveness and business performance in the financial services industry

The purpose of this exploratory empirical study was to examine the link between effective marketing practices and business performance in the financial services industry. Based on a multi-item construct of marketing effectiveness, data were generated from 52 banks and building societies. The effects of different marketing effectiveness dimensions upon profitability and growth as well as customer-based performance indicators were investigated. Our results suggest that organisational variables such as customer philosophy, operational efficiency, marketing information and integrated marketing organisation are generally, significantly and positively associated with business performance. To conclude, managerial implications of the findings, study limitations and future research directions are discussed.