MARKETING STRATEGIES OF MICRO FINANCE INSTITUTIONS IN INDIA

Despite digitalization in Microfinance institutions, the marketing orientation and strategies will play a major role in success of micro finance institutions. Marketing concept is recognizing and understanding the customers need and designing the product according to customers' needs. Micro Finance institutions are predominantly, considered as the supplier of credit to low income groups and to some extent it fulfilled this objective profitably. One main aspect the Micro finance institutions have to concentrate on new product development which fulfils the customers' needs. The high levels of dropouts after every loan cycle is there, because usually the Micro finance institutions have short term credit products. The present study is on the marketing strategies that a Micro Finance institution has to follow to control these dropouts and more emphasis is given on relationship banking. Transition from product orientation to market orientation has been done in all major industries. The Micro Finance institutions are following the same product orientation concept and it is a big challenge for them to concentrate on marketing orientation concept and its relationship with the success of institutions. The present study is how marketing strategies will boost the performance of the Micro finance industry and also to study the adoptability of these strategies by the Micro finance institutions. The data is collected from the secondary sources from international journals and other reports which provide the performance of Micro finance institutions. The analysis is done through descriptive statistics, tables and other analytical tools.