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Abstract
This research study is about the impact of advertising and promotional activities that can lay a role in the growth and profitability of Islamic banking in Pakistan.. The banking industry is constantly growing and achieving new heights over the past ten years, so to sustain in such competition Islamic banking needs to maintain its expansion. This research is based on five full-fledged Islamic banks operating in Karachi, Pakistan. The aspects looked at were their profit returns and expenditure on advertisement and promotion. To support the research, the data was gathered from primary and secondary means, by taking interview and survey from employees at different Islamic banks. For the survey, 50 employees working at different Islamic banks were selected by using stratified random sampling, where they were asked to fill in a questionnaire. The results indicated a positive correlation between advertising and promotion with profitability and growth of Islamic banks. It also highlighted that advertisement alone does not play a role in the growth of Islamic banking, but other factors like customer relations, and effective services also work hand in hand.
Keywords: Advertisement and Promotion, Profitability, Growth, Islamic Banking in Pakistan
Introduction
The Banking industry has come to play a key role in our society. It affects us both personally and collectively as the success of a society depends in large part on the success of this sector. The activities done by banks contribute to a robust economy, which in turn places a country near the top of the list of developed nations. Mass production methods developed during the Industrial Revolution of the 1800s facilitated a rise in commercial and financial activity. There has been an increase in banking's significance as a means of facilitating productive business activities. A bank's ability to thrive in today's global, borderless market may hinge on the quality of its products and the level of satisfaction it provides to its clientele. Today, competition in Pakistan's banking business is fiercer than ever, where both private and sharia banks have flourished and are seeing tremendous expansion. The increased level of competition in the banking industry has resulted in a shift in marketing strategy aimed at raising awareness of and demand for better service. In order to capitalize on the banking industry's...