Market Positioning Research On City Commercial Banks

The development of Chinese city commercial banks have drawn more and more attention from the society. Being faced with the fully opening up of banking sector and the intense competition, its difficult for Chinese city commercial banks to exploit new market in competition with the Four state-owned commercial banks and joint-stock commercial bank of China due to the limitation of legal business area and running scope. How to get a clear and right position is the key element for city commercial banks to develop moderately when competition and challenge become intense.Market positioning has a close relationship with the establishment of strategy, a bank will lost the direction if it doesn't have a clear market positioning. As a member of city commercial banks group, LLN Bank2 is same with the other members, especially in the attitude towards market positioning. The bank's position is not distinct and clear, as a result, the marketing activity and development are affected. Therefore, its important and serious for the bank to analyze the external circumstance, find its problem and bottleneck and then get a new position about its target market and target customers in order to identify a new development mode and route.On the basis of market positioning theory, the article takes some successful experience of the domestic and overseas banks for reference, summarizes the relative elements which should be considered by the medium & small banks during the process of finding new position, gets the conclusion that medium & small banks should choose the differentiation strategy to find market position and well develop its relative advantages. Then the article analyses the running circumstance of LLN Bank including the business area, supervision policy and competition extent, and provides the instructive suggestion for the bank to choose a new correct position and put it into effect. The author uses the comparative analysis, empirical analysis and other methods to demonstrate the necessity that LLN Bank find a clear position, summarizes that the bank should aim at Double-Small customers, develop retail products and make effort to break though the restriction of single city zone and realize the regional expansion.