Marketing Strategies for Financial Institutions: Leveraging Human Capital for Competitive Advantage

Abstract

The current study aims to reveal if there is any relationship between types of marketing channels and competitive advantage in the financial industry. Employing correlation analysis, we studied if there existed a significant correlation between the marketing channels that have been used for segmentation and targeting, branding, digital marketing, content marketing, strategic partners and human capital and the competitive advantage. Results show that human capital leveraging obtains the highest positive correlation with the competitive advantage (r = 0.75) providing us strong evidence that talent management practices that are in the process of enhancement play a key role in businesses' competitiveness. Digital marketing comes only because the correlation between them is 0.72, and so digital ways for customer retention are essential too. Also equally suggestive are the evidence-based conclusion on segregation and positioning; the use of strategic partnerships; and brand management, signaling the strategic importance of market segmentation, alliances, and brand positioning. Content marketing although shown to still maintain a correlation with online purchase (r = 0.60) demonstrates a weak relationship compared to other e-channels that had a derivative relationship. Such findings illustrate the wide variety of marketing tools engaged in and stress the importance of a comprehensive marketing strategy which is to combine different marketing tactics and, especially, to develop the personnel and innovate new technologies. Thus, the study generated the most important attributes that could serve as a guide for the institutions in the financial sector competing in the dynamic marketplace.