Banks have evolved from merely providing money to offering a wide range of services enabled by technological developments. Customers can now perform all banking transactions remotely. The document then defines banking and the roles of banks. It outlines the different types of banks in India and discusses their commercial and economic roles. It also covers bank marketing concepts like segmentation, targeting, positioning and the marketing mix of product, price, place, and promotion. Traditional and current marketing strategies for banks are highlighted. The importance of customer satisfaction is emphasized.
6. INTRODUCTION
Now a days banks are not mere suppliers of
money . They have become providers of a wide
Range of services . More dramatic are the
developments in technology . Today , traditional
business models are being challenged .
Customers can do all their banking
transactions while sitting at home . Banks are
introducing Automatic Teller Machine (ATM)
cards as well . This promises to change the
face of face of banking forever .
7. •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.
8. What are banks
• 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.
14. • 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
15. Commercial Role of Banking
• 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
16. Commercial Role of Banking(contd)
• 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
17. Economic Role of Banking
• Issue of money, in the form of banknotes and current accounts
subject to cheque or payment at the
• customer's order.
• Netting and settlement of payments.
• Credit intermediation
• Credit quality improvement
• Maturity transformation
18. What is bank marketing?
“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.”
19. Why bank marketing necessary?
• 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.
20. Concept of bank marketing
• 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.
21. Marketing strategies
• 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
22. Segmentation
• How the seller’s determines which buyer’s characteristics
produce the best partitioning of the particular market?
•The seller does not want to treat all customers alike nor
does he want to treat them all differently
23. Segmentation(Continued)
• Banks deal with individuals, group of persons and corporate
• 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.
24. Criterion for Market Segmentation
in India
• Agricultural Sector
1. Marginal
2. 2 to 5 acres
3. 5 to 10 acres
4. 10 acres and above
• Industrial Sector
1. Tiny
2. Co-operative
3. Small-sized
4. Large- sized
25. Criterion for Market Segmentation
in India
• Services Sector
• Household Sector
1. Marginal
2. Low Income
3. Middle Income
4. High Income
26. •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.
28. Traditional external marketing
• Consists of usual four P’s 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, Demand accounts, online banking, mobile
banking and many more.
29. Pricing
Includes interest , fees or commission charged
by the bank. Also the interest paid by the bank.
Typical for banking sector since RBI regulates
rates of interest, Organizations are supposed
to sub-serve weaker sections and the rural
regions of the country.
30. • 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.
31. General steps for pricing
Develop
marketing
strategy
Make
marketing
mix
decisions
Estimate
the demand
curve.
Calculate
cost
32. Place
• 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.
33. • 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.
35. Process
• 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.
36. Current Marketing Strategies
• 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
37. Customer satisfaction
• 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.
38. • 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.
39. “RURAL” Strategy
R:Retail Business for Rural Community As
(Consumer & Producer)
U: Urban facilities, Investment, Infrastructure
R: Animal Husbandry & Allied Activities
A: Agri Production(Field Crops, Plantation)
L: Linkages & Synergy
40. Rural bank marketing
• 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
