The Marketing Strategies of Modern Cooperative Enterprises (as Illustrated by Cooperative Banks) INTRODUCTION

Abstract

The paper presents the situation of cooperative banks in the light of the banking sector and the marketing strategy implemented by cooperative banks in order to strengthen their competitive position. The major advantages of cooperative banks over the competition of commercial banks include: customer trust in the bank, a good image of the bank, awareness of the local environment, Polish capital exclusively, lower propensity to risk compared to commercial entities. In their activ-ities, cooperative banks follow the fundamental principles and values of the cooperative such as honesty, responsibility, and also less pressure to maximise profits, which result from the coopera-tive forms of activity – this gives cooperatives greater financial stability. The results achieved by cooperative banks in recent years seem to imply their good position in an increasingly competitive market. Cooperative banks still face a number of challenges which they must cope with to retain their market positions. These include mainly the promotion and implementation of innovative solutions, electronic banking, which will affect their ability to compete with commercial banks. A properly prepared and implemented marketing strategy of the bank is a firm foundation of the development of cooperative banking, especially on the local level. The implementation of cutting-edge services and innovations, desired by the customer, gives cooperative banking entities the opportunity to compete with their commercial counterparts. Gaining advantage in the long run makes it necessary to continuously monitor and identify the needs of customers and shareholders, and to rapidly adjust the service package to their expectations.