Strategic Marketing for Microfinance Institutions

Introduction

Microfinance institutions support most of the poor or low income people. Added to their portfolio is the creation of business and supporting the people that wants to establish the business. It is common to the financial institutions to subject every loan in different interest rates which is sometimes based on the amount of credit and giving the customers the specific time to pay their liabilities. The appearance of the microfinance business is popular in most of the developing countries.

Background of the Study and Problem Statement

Marketing has the power to manage the different process that identifies, anticipates, and satisfies the customers (Murray, 2008). This same idea is however been applied in many of the financial institutions, not only to support the growth of the business and help the individuals that seek opportunity. In this area of concern, what are the applied strategic marketing of the microfinance business that serves and keeps their customers?

Research Objectives

The objectives of the study are divided into two parts. The first is to identify the strategic marketing being implemented in most of the financial institutions as much in the microfinance industry. The second part is to introduce the strategic marketing in the microfinance institutions to the other financial sources to keep their support at level of demands of the customers.

Research Questions

The study provided the certain questions that can help the determination of the strategic marketing in the system of the microfinance process and procedures.

1. What are the current situations of the marketing strategies in the microfinance institutions?

2. What are the effects of the economic changes and competition in delivering the services to the customers?

3. What is the appeal of the strategic marketing on the customers and on the microfinance officers?

Literature Review

The marketing strategies start in planning and setting the objectives. The identification of the current challenges in the stream of financing can help the institution reach and identifies their own version of marketing strategies (Murray, 2008). The initiatives of the microfinance institutions are based on the concept of the organization to improve the customer services and launch the new type of services. Well-defined strategies can help the organization to satisfy the success and the power or marketing can be realized. Marketing keeps the trust of the people on the business and it can prevent the business from the bankruptcy and liquidation. Therefore, different marketing tactics can foster the initiatives of the institution to deliver its effectiveness in the market (ACCION, 2008; Pollinger, Outhwaite, and Cordero-Guzman, 2007).

Methodology

The applied method of the study is based on the method of the comparative case study. The method utilized in the study is considered as an effective form that can help the study reach the highest potential application of the various strategies in which the study can examine, compare, and conclude the essential part of it. Through the deep analysis of the past literatures and study, the strategies are allowed to be measured and develop for the further development of the microfinance institutions.

Conclusion

The marketing strategies implemented by the successful microfinance institutions should be applied in the other financial institutions to help them establish the effectiveness and advantage as the provided for financial needs. In a deep sense, the microfinance institutions provide additional economic capability in most of the developing countries. The strong foundation microfinance institution can proves long-term advantage and additional contribution to the economy in development of the country.

References:

ACCION, 2008. Marketing Strategies for Microfinance, Building Sustainable, Commercial Microfinance Programs. [Online] Available at: http://www.accion.org/Document.Doc?id=466. [Accessed 05 Feb 2010].

Murray, S., 2008. For Microfinance Marketing. [Online] Available at: http://www.swwb.org/files/pubs/en/marketing_for_microfinance_e.pdf. [Accessed 05 Feb 2010].

Polliger, J., Outhwaite, J., & Cordero-Guzman, H., 2007. The Question of Sustainability for Microfinance Institutions. Journal of Small Business Management, Vol. 45, No. 2.