Management Theory and Studies for Rural Business and Infrastructure Development, Volume 32

Evaluation of lithuanian commercial banks‘ marketing expenses

Rolandas Drejeris, Irena Daukševičiūtė

Abstract

Organisations all over the world including commercial banks are providing solid funding amount for marketing, however the return on marketing is unrevealed – actual return on marketing is being measured only by every fifth organization. Marketing approach has clearly shifted – marketing is no longer being treated as a cost centre, it is rather investment, therefore the increasing pressure for marketing professionals to express marketing figures quantitatively presupposes marketing topic. The aim of this is paper is to evaluate and compare the Lithuanian and foreign banks' marketing costs and to determine their efficiency. Documentary content analysis method for collecting the data applied. After examining the ratios few conclusions have been made. Firstly, during the period the data of which has been examined low effectiveness of marketing expenses of Lithuanian commercial banks has been observed. However, a trend of increasing effectiveness has been also unveiled. Comparative analysis has shown that foreign commercial banks have much higher effec-tiveness of marketing expenses. In addition to, the marketing expenses in the foreign banks vary much less and are less exposed to cyclical fluctuations. Results of analysis show that there is strong relation between marketing expenses and the following financial ratios: total assets and total net in-come of a bank. Effective using of marketing expenses is one of the conditions for liquid finances and direct for sustainable development.

JEL codes: M 21, M 31.

Keyword(s): bank marketing, efficiency of marketing, indicators of efficiency, assets, marketing expenses


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.