Basic Definition: A system of trading money which: provides a safe place to save excess cash, known as deposits. supplies liquidity to the economy by loaning this money out to help businesses grow and to allow consumers to purchase consumer products, homes, cars etc.
Institutions which deals in money and credit. An intermediary, which handles other people’s money both for their advantage and to its own profits. A financial institution that links the flow of funds from savers to the users. Plays an important role in the economy of any country as they hold the saving of the public.
• Central Bank: The Reserve Bank of India is the central Bank that is fully owned by the Government• Public Sector Banks: State Bank Group, Regional rural banks• Private Sector Banks: Foreign Banks, Scheduled and Non- Scheduled Banks• Co-operative Sector: State Co-operative Banks, Central Co-operative Banks, Primary Agriculture Credit Societies• Development Banks/Financial Institutions: IDBI, ICICI, NABARD
Issue of banknotes (promissory notes issued by a banker and payable to bearer on demand) Processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means Issuing bank drafts and bank cheques Accepting money on term deposit Lending money by way of overdraft, installment loan or otherwise
Providing documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off-balance sheet exposures Safekeeping of documents and other items in safe deposit boxes Currency exchange Acting as a financial supermarket for the sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products
Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customers order. Netting and settlement of payments. Credit intermediation Credit quality improvement Maturity transformation
“Bank marketing is the aggregate of functions, directed at providing services to satisfy customers financial (and other related) needs and wants, more effectively and efficiently than the competitors keeping in view the organizational objectives of the bank.”
The existence of the bank has little value without the existence of the customer. Aim is not only to create and win more and more customer but also to retain them through effective customer service. Appropriate promise to a customer through a range of services (products) and also to ensure effective delivery through satisfaction is important.
Identifying the most profitable markets now and in future; Assessing the present and future needs of customers; Setting business development goals and making plans to meet them Managing the various services and promoting them to achieve the plans Adapting to a changing environment in the market place.
Designed after taking into account the strengths and weaknesses of the organization. bank with clientele from various segments could think of “market penetration” by offering the existing range of services to existing customers. Bank which are not facing acute competition could think of “Market Development” by offering the existing services to new customers. design new product range for their customers of various segments
• How the seller’s determines which buyer’scharacteristics produce the best partitioning ofthe particular market?•The seller does not want to treat all customersalike nor does he want to treat them alldifferently
Banks deal with individuals, group of persons and corporates More or less homogenous groups in terms of their needs and expectations. Market segments, targeting one or more segments, developing products and marketing programs tailor-made for these segments.
Agricultural Sector1. Marginal2. 2 to 5 acres3. 5 to 10 acres4. 10 acres and above Industrial Sector1. Tiny2. Co-operative3. Small-sized4. Large- sized
Services Sector Household Sector1. Marginal2. Low Income3. Middle Income4. High Income
Market Targeting in which each segment’s attractiveness is measured and a target segment is chosen based on its attractiveness. Positioning which is the act of establishing a viable competitive position of the firm and its offer in the target segment chosen.
Traditional Internal Interactive external marketing marketingmarketing
consists of usual four ‘Ps’ of Product, Price, Place and Promotion of marketing mix Product: The products offered are the services which includes various types of bank accounts, different types of loans, investment services, Credit cards, Demat accounts, online banking, mobile banking and many more.
includes interest , fees or commission chargedby the bank. Also the interest paid by the bank.Typical for banking sector since RBI regulatesrates of interest, Organizations are supposed tosub-serve weaker sections and the rural regionsof the country.
Buyers look for satisfaction which differs from person to person. Keeping in view the level of satisfaction of a particular segment, the banks have to frame the pricing strategies. The interest charged and the interest paid should have a co-relation between them.
Make Estimate Develop marketing the Calculatemarketing mix demand coststrategy decisions curve.
It refers to the establishment and functioning of a network of branches and other offices through which banking services are delivered. Objective is to get the right product ,at right places at right time at the least cost. Extensive branch network- access to large section of people Proximity may play a determinant role in selecting the bank.
Banks are coming up with extension counters, specialized branches, mobile branches, banks acquisition and amalgamation so as to have sufficient point of contacts with the customer. With the advent of technology other point of contacts have come up. Such as: ATM Telephone banking Online banking Mobile banking Video banking etc.
Advertising Publicity Sales Promotion Personal Selling Push and Pull Strategies
It involves the people(5th P) of the bank i.e. the employees. Employees should also be treated as internal customers, and sort of marketing mix should be followed. Quality Human resource can be a point of differentiation
The quality of service provided during the buyer-employee interaction. Efforts for previous strategies will turn futile if the interaction does not takes place satisfactorily. It involves : Process (6th P) Physical evidence (7th P)
Refers to the systems used to assist the organization in delivering the service. Aids to the promotion of customer satisfaction It involves: speeding delivery of services reducing the paper work standardization of procedures customization as per individual demand simplicity etc.
It includes signage, reports, punch lines, other tangibles, employee’s dress code etc. The company’s financial reports are issued to the customers to emphasis or credibility. Signage: Each and every bank has its logo by which a person can identify the company. It creates visualization and corporate identity for the banks. Tangibles: banks give pens, writing pads to the customers. Punch lines: Depicts the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.
Referral services Direct mailing Cold calling Offering items having your brand identity Using the media Getting celebrities to endorse the product or service. Sponsoring events Using permission-based Marketing
Recommendation of Talwar’s committee,1975: Establishment of customer service committee/staff committee in the every ranch. Customer meets to be held at the branches at least once in a half year. 15th of every month (next day if 15th is a holiday) to be observed as customer’s day at branches and administrative offices. Provision of complaint-cum-suggestion box in every branch.
Provision of ‘May I help you’ counter in branches. Immediate credit of cheques up to Rs.2,500 which has since been increased to Rs.15,000. Payment of penal interest in case of delay of collection of cheques. In the year 1995 ‘Banking Ombudsman’ was established by RBI with objective of resolving customer grievances in a quick and inexpensive manner.
Follows 80-20 Parato principal Bankers need to understand the rural psychology Employing local literate youth for confidence building Banker must be aware of agriculture aspects, cultural and communal aspects, institutional facilities etc. Process of change should be known to him Status of various development plans should be known
R:Retail Business for Rural Community As (Consumer & Producer)U: Urban facilities, Investment, InfrastructureR: Animal Husbandry & Allied ActivitiesA: Agri Production(Field Crops, Plantation)L: Linkages & Synergy
Horticulture, Plantation, Vegetable growing, Floriculture, aromatic and medicinal plants, Bio-diesel plants etc. for high investment Opportunities Post Harvest and Food Processing Seed Multiplication & Processing Dairy Farming, Sericulture, Aqua-Culture & Others. Irrigation Projects & Wasteland Developments. Rural Tourism & Other emerging areas.
Industrial Credit and Investment corporation of India bank - largest private sector bank in market capitalization Second largest overall in terms of assets. largest issuer of credit cards in India
Product : Saving account: offers a power packed Savings Account with a host of convenient features and banking channels to transact through. Senior citizen services: convenience with benefits Fixed Deposits : Safety, Flexibility, Liquidity and Returns
Recurring Deposits: Affordability and higher earnings. Roaming Current: access your accounts at over 500 networked branches across the country. Loans: Home Loans. Personal Loans. Car Loans, two Wheeler Loans, Commercial Vehicle Loans. Loans against Securities, educational loans etc Investments: ICICI Bank Tax Saving ,Foreign Exchange Services, Senior Citizens Savings Scheme, 2004. Cards: Credit card, ATM card, travelers card Demat services Online money transfer Mobile banking
Pricing1. Pricing Decisions related to interest, fee or commission.2. RBI and IBA3. Raising Number of Customers4. 2 Fold Strategies
Place1. Services are sold through branches2. Making Promised Services available to the ultimate users.3. Branches OF ICICI: 1900 in India and 33 in Mumbai.
Promotion1. Advertising - Television, radio, movies, theatres2. Print Media- Hoardings, newspaper, magazines3. Publicity- Road shows, campus visits, sandwich man, Sponsorship4. Sales Promotion- Gifts, discount and commission, incentives, etc.5. Personal Selling- Cross-sale (selling at competitors place), personalized service6. Telemarketing- ICICI one source Call center (mind space)
Process1. Standardization- ICICI bank has got standardized procedures got typical transactions2. Customization- Specialty counters at each branch to deal with customers of a particular scheme3. Simplicity- Separate counters exist with clear indication4. Customer Involvement- Money matters and signature
Physical Evidence1. Signage2. Financial Reports- The Company’s financial reports are issued to the customers to emphasis or credibility3. Tangibles- Pens, Writing Pads to the internal customers. Passbook and Cheque books to the customers.4. Punch lines- “Hum Hai Naa”5. Employee’s Dress Code- ICICI bank follows a dress code for their internal customers
People1. All people directly or indirectly involved in the consumption of banking services.2. Workers, Employees, Management and other Consumers3. Employees of a Bank represents the organization to its customers.4. Internal Marketing