Service Comparison from ConsumerPerspective in Banking Sector(Private vs. Public Sector Banks)                       Bishn...
Marketing of Services                                                                                                     ...
Marketing of Services                                                 PGDM-Exec 2012Introduction   Services marketing prof...
Marketing of Services                                                   PGDM-Exec 2012products and services, in that it in...
Marketing of Services                                                    PGDM-Exec 2012       is also pertinent that the b...
Marketing of Services                                                  PGDM-Exec 2012    Characters and themes       At ap...
Marketing of Services                                                  PGDM-Exec 2012    our country, the price mix is mor...
Marketing of Services                                                   PGDM-Exec 2012    human resources makes the ways f...
Marketing of Services                                                    PGDM-Exec 2012      Tangibles: banks give pens, w...
Marketing of Services                                                     PGDM-Exec 2012   This project, aims to compare a...
Marketing of Services                                                 PGDM-Exec 2012Research Methodology   The research ca...
Marketing of Services                                                  PGDM-Exec 2012   Descriptive Research Design   The ...
Marketing of Services                                PGDM-Exec 2012Analysis and Interpretation of Survey Data   Total Resp...
Marketing of Services                            PGDM-Exec 2012                        Housewife           8              ...
Marketing of Services                                                PGDM-Exec 2012Survey Statistics   Do you have Account...
Marketing of Services                                               PGDM-Exec 2012   Why would you prefer the above?     I...
Marketing of Services                                     PGDM-Exec 2012   How would you rate SBI and ICICI?              ...
Marketing of Services                                                   PGDM-Exec 2012Research Findings   Based on the res...
Marketing of Services                                                   PGDM-Exec 2012          Lack of professionalism i...
Marketing of Services                                                 PGDM-Exec 2012Appendix I – Questionnaire   The Quest...
Marketing of Services                                    PGDM-Exec 2012References         www.scribd.com         www.wik...
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MOS - Service Comparison from Consumer Perspective in Banking Sector

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MOS - Service Comparison from Consumer Perspective in Banking Sector

  1. 1. Service Comparison from ConsumerPerspective in Banking Sector(Private vs. Public Sector Banks) Bishnu Kumar 11EX-013 Davinder Singh 11EX-015 Pankaj Mohindroo 11EX-038 Prateek Wadhwa 11EX-040 Rajat Goel 11EX-043 Institute of Management Technology Ghaziabad
  2. 2. Marketing of Services PGDM-Exec 2012Table of ContentsIntroduction .................................................................................................................................................. 2 What is marketing? ................................................................................................................................... 27 Ps of Bank Marketing ................................................................................................................................. 3 1. Product Mix ....................................................................................................................................... 3 2. Promotional Mix ............................................................................................................................... 4 3. Price Mix ........................................................................................................................................... 5 4. The Place ........................................................................................................................................... 6 5. The People ........................................................................................................................................ 6 6. The Process ....................................................................................................................................... 7 7. The Physical Evidence ....................................................................................................................... 7Service Marketing in Banking Sector ............................................................................................................ 8Structure of Banking Market......................................................................................................................... 8Research Methodology ............................................................................................................................... 10Analysis and Interpretation of Survey Data ................................................................................................ 12 Demographic Statistics ........................................................................................................................... 12 Survey Statistics ...................................................................................................................................... 14Research Findings ....................................................................................................................................... 17Conclusion ................................................................................................................................................... 18Suggestions ................................................................................................................................................. 18Appendix I – Questionnaire ........................................................................................................................ 19References .................................................................................................................................................. 20 1
  3. 3. Marketing of Services PGDM-Exec 2012Introduction Services marketing professionals need to determine how to effectivelycommunicate the services, process, deliverables and benefits of the products inorder to build client confidence. Tangible signals that indicate services quality andvalue come from personal interaction, trusted recommendations, clearcommunications, equipment used or processes followed and pricing of the products. Services marketing is marketing based on relationship and value. It may be usedto market a service or a product. Marketing a service-base business is differentfrom marketing a goods-base business. There are several major differences,including: 1. The buyer purchases are intangible 2. The service may be based on the reputation of a single person 3. Its more difficult to compare the quality of similar services 4. The buyer cannot return the service The major difference in the services marketing versus regular marketing is thatinstead of the traditional "4 Ps," Product, Price, Place, Promotion, there are threeadditional "Ps" consisting of People, Physical evidence, and Process. Servicemarketing also includes the service scape referring to but not limited to theaesthetic appearance of the business from the outside, the inside, and the generalappearance of the employees themselves. Service Marketing has been relativelygaining ground in the overall spectrum of educational marketing as developedeconomies move farther away from industrial importance to service orientedeconomies.What is marketing? Marketing is the flow of goods and services from the producer to consumer. It isbased on relationship and value. In common parlance it is the distribution and saleof goods and services. Marketing can be differentiated as: · Marketing of products · Marketing of services. Marketing includes the services of all those indulged may it be then thewholesaler retailer, Warehouse keeper, transport etc. In this modern age ofcompetition marketing of a product or service plays a key role. It is estimated thatalmost 50% of the price paid for a commodity goes to the marketing of the productin US. Marketing is now said to be a term which has no particular definition as thedefinitions change every day. "Managing the evidence" refers to the act of informing customers that the serviceencounter has been performed successfully. It is best done in subtle ways likeproviding examples or descriptions of good and poor service that can be used as abasis of comparison. The underlying rationale is that a customer might notappreciate the full worth of the service if they do not have a good benchmark forcomparisons. However, it is worth remembering that many of the concepts, as well as many ofthe specific techniques, will work equally well whether they are directed at productsor services. In particular, developing a marketing strategy is much the same for 2
  4. 4. Marketing of Services PGDM-Exec 2012products and services, in that it involves selecting target markets and formulating amarketing mix. Thus, instead of talking of goods and of services, it is better totalk of tangibles and intangibles. Levitt also went on to suggest that marketing aphysical product is often more concerned with intangible aspects (frequently the`product service elements of the total package) than with its physical sales afterservice. Charles Revlon made a famous comment regarding the business of RevlonInc.: `In the factory we make cosmetics. In the store we sell hope. Arguably,service industry marketing merely approaches the problems from the opposite endof the same spectrum.7 Ps of Bank Marketing 1. Product Mix The banks primarily deal in services and therefore, the formulation of product mix is required to be in the face of changing business environment conditions. Of course the public sector commercial banks have launched number of policies and programs for the development of backward regions and welfare of the weaker sections of the society but at the same time it is also right to mention that their development oriented welfare programs are not optimal to the national socio economic requirements. A proportional contraction of the number of customers is psychology, the increasing expectation, the rising income, the changing lifestyle, the increasing domination of foreign banks and the changing needs and requirements of the customers at large make it essential that they innovate their service mix. The development of new generic product, especially when the business environment is regulated is found to be a difficult task. However, it is pertinent that banks formulate a package in tune with the changing business conditions. Against this background, we find it significant that the banking organizations minify, magnify, combine and modify their service mix. In the formulation of service mix, the banks can follow two guidelines, first is related to the processing of product to market needs and the second is concerned with the processing of market needs to product. In the first process, the needs to the target market are anticipated and visualized and therefore, we expect the prices likely to be productive. In the second process, the banks react to the expressed needs and therefore we consider it reactive. It is essential that every product is measured up to the accepted technical standards. Technical perfection in service is meant prompt delivery, quick disposal, and presentation of right data, right filing, proper documentation or so. Marketing aims at not only offering but also at creatinginnovating the servicesschemes found new to the competitors vis-a-vis to the customers. The additional attractions, the product attractiveness would be a plus point of its mix, which would help you in many ways. This makes it essential that the banking organizations are sincere to the innovations process and try to enrich their peripheral services much earlier than the competitors. We also find the product portfolio of the banks. While formulating the services mix, it 3
  5. 5. Marketing of Services PGDM-Exec 2012 is also pertinent that the bank professionals make possible affair synchronization of core and peripheral services. To be more specific, the peripheral services need an intensive care since the core services are found by and large the same. thus appears to be an important functional responsibility of marketing professionals. 2. Promotional Mix Promotion mix includes advertising, publicity, sales promotion, word-of- mouth promotion, personal selling and telemarketing, Each of these service needs to be applied in different degree. These components can be useful in banking business in the following ways:- Advertising Advertising is paid form of communication. Banking organizations use this component of the promotion mix with motto of informing, sensing and persuading the customers. While advertising it is essential to be aware of key decision making areas so that it helps banks at micro and macro levels. Finalizing the budget This is related to the formulation of the budget for advertisement. The bank professionals, senior executives and even the policy planners are found to be involved in the process. The business of a bank determines the scale of the advertisement budget. In addition, the competition also plays a decisive role in determining the budget taking in account the change in the rival‟s strategy. Selecting a suitable vehicle There are a number of devices to advertise, such as broad cast media, telecast media and print media. In the face of the budgetary provisions, it is necessary to select a suitable vehicle. For promoting the banking business, the print media is found to be economic as well as effective. Making possible creative The advertising professionals bear the responsibility of making the appeals, slogans and messages more creative. Here, creative means making the advertisement programs distinct to the competitive organizations, which are active in influencing the impulse of the customers and successful in informing and sensing the customers. This requires an in-depth knowledge of the receiving capacity of the target market for which the advertisements are designed. Testing the effectiveness It bears an analogous significance that our advertisements are effective in influencing the impulse of customers by energizing persuasion. For making the process effective, it is essential to test the effectiveness before launching of the commercial advertisements. Managers: Instrumentality of branch At micro level, a branch manager bears the responsibility of advertising locally so that the messages reach the target audience. 4
  6. 6. Marketing of Services PGDM-Exec 2012 Characters and themes At apex level it is also important that while advertising the senior executives watch the process minutely and select events, characters having a regional orientation. The popular characters and sensational moments are likely to be impact generating. The theme for appeals and messages also needs due attention. Of course, they have a legitimate right of advertising but it is not meant that like the goods manufacturing organizations, the service generating organizations also start making invasion on culture. It is necessary to regulate a bias to gender, profession, region or so. Public relations In the banking services the effectiveness of public Relations is found in high magnitude. It is in this context that difference is found in designing of the mix for promoting the banking services. Telemarketing The telemarketing is a process of promoting the business with the help of sophisticated communication network. Telemarketing is found instrumental in advertising the banking services and the banking organizations can use this tool of the promotion mix both for advertising and selling. This minimizes the dependence of banking organizations on sales people and just a counter or center as listed in the call numbers may service multi- dimensional services. Telemarketing is likely to play an incremental role in marketing the banking services. The leading foreign banks and even some of the private sector commercial banks have been found promoting telemarketing and they have been getting positive results for their efforts. Word-Of- Mouth Much communication about the banking services actually takes place by word-of-mouth information, which is also known as word- of- mouth promotion. The oral publicity plays an important role in eliminating the negative comments and improving the services. This also helps the banker to know the feedback, which may simplify the task of improving the quality of services. This component of promotion mix is not to influence budget adversely or generate additional financial burden. By improving the quality of services and by offering small gifts to the word- of- mouth promoters, bankers can get more business command in their area. The above facts make it clear that such kind of promotion is influenced by a number of factors. The most dominating factor is the quality of services offered. The bank professionals, the frontline staff and the senior executives should realize that degeneration in quality would make this tool effective. 3. Price Mix In the formulation of marketing mix, the pricing decisions occupy a place of outstanding significance. The pricing decisions include the decisions related to interest and fee or commission charged by banks. Pricing decisions are found instrumental in motivating or influencing the target market. The RBI regulates the rate of interest and the Indian Banks‟ Association controls other charges. In 5
  7. 7. Marketing of Services PGDM-Exec 2012 our country, the price mix is more important because the banking organizations are also supposed to sub serve the interests of the weaker sections and the backward regions. Also in making the pricing decisions, the Government Of India instrumentalists or commands everything as a shadow policy maker. This also complicates the price mix for banking sector. Pricing policy of a bank is considered important for raising the number of customer vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position. Banks also have to take the value satisfaction variable in to consideration. The value and satisfaction cannot be quantified in terms of money since it 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 banking organizations are required to frame two-fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice-versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning. 4. The Place Places refer to the establishments and functioning of the network of branches and other offices through banking services are delivered. Objective is to offer the right product, at right place, at right time and at a minimum cost. The more branches and customer access points a bank has, more likely is to gain business from different sections of people because the proximity of a branch plays a determinant role in selecting a bank. 5. The People Sophisticated technologies no doubt, inject life and strength to our efficiency but the instrumentality of sophisticated technologies start turning sour if the human resources are not managed in a right fashion. We can‟t deny the fact that if foreign banks are performing fantastically; it is not only due to the sophisticated information technologies they use but the result of a fair synchronization of new information technologies and a team of personally committed employees. The moment they witness lack of productive human resources even the new generation of information technologies would hardly produce the desired results. In addition to the professional excellence, the employees working in the foreign banks are generally value based. Thus we accept the fact that generation of efficiency is substantially influenced by the quality of human resources. The quality for banking sector is an aggregation of all the properties, which are found essential for generating the efficiency and projecting a fair image. Even efficiency essentially is supported by ethical dimension, humanity and humanism. The development of 6
  8. 8. Marketing of Services PGDM-Exec 2012 human resources makes the ways for the formation of human capital. Human resources can be developed through education, training and by psychological tests. Even incentives can inject efficiency and can motivate people for productive and qualitative work. 6. The Process • Flow of activities: all the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. • Standardization: banks have got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. • Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. • Number of stores: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. • Simplicity: in banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to „deposits‟ counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further. • Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires. 7. The Physical Evidence The physical evidences include 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. Even some of the banks follow a dress code for their internal customers. This helps the customers to feel the ease and comfort. Signage: each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity. 7
  9. 9. Marketing of Services PGDM-Exec 2012 Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, cheque books, etc reduce the inherent intangibility of services. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.Service Marketing in Banking Sector Banking marketing consists of identifying the most profitable markets now and infuture, assessing the present and future needs of customers, setting businessdevelopment goals, making plans-all in the context of changing environment.Marketing approach in banking sector had taken significance after 1950 in westerncountries and then after 1980 in Turkey. New banking perceptiveness orientedtoward market had influenced banks to create new market. Banks had started toperform marketing and planning techniques in banking in order to be able to offertheir new services efficiently. Marketing scope in banking sector should be considered under the servicemarketing framework. Performed marketing strategy is the case which isdetermination of the place of financial institutions on customers‟ mind. Bankmarketing does not only include service selling of the bank but also is the functionwhich gets personality and image for bank on its customers‟ mind. On the otherhand, financial marketing is the function which relates uncongenitalies, differencesand non-similar applications between financial institutions and judgment standardsof their customers. The reasons for marketing scope to have importance in banking and for banks tointerest in marketing subject can be arranged as: Change in demographic structure: Differentiation of population in the numberand composition affect quality and attribute of customer whom benefits frombanking services. Intense competition in financial service sector: The competition became intensedue to the growing international banking perceptiveness and recently being non-limiting for new enterprises in the sector. Increase in liberalization of interest rateshas intensified the competition. Bank’s wish for increasing profit: Banks have to increase their profits to createnew markets, to protect and develop their market shares and to survive on thebasis of intense competition and demographic chance levels.Structure of Banking Market The globalization of service industry revealed the necessity to develop thestrategy of new market entry. The analysis of market attractiveness facilitated thedecision making regarding modes of service firms‟ entry and their further expansioninto the new markets. The effectiveness of operation in the new markets dependson comprehensive marketing planning through application of marketing techniques. 8
  10. 10. Marketing of Services PGDM-Exec 2012 This project, aims to compare and contrast service marketing theory and practicethrough banking sector. It firstly introduces the concept of services and analysesthe nature of services (intangibility, inseparability, variability and perishability). Itsecondly develops extended marketing mix for services highlighting the importanceof people, physical cues, and processes in service management. Three types ofmarketing used in service industries are being introduced: Internal Marketing,Interactive Marketing and Evaluation Processes. Apart from that tasks that serviceforms face are being discussed: Managing Differentiation, Managing Service Qualityand Managing Productivity. Marketing activities of firms begin with determination of the market that theywant to offer their services or goods to. Firms must find out the features of themarket that it is planning to enter and analyze the existing market condition inthose areas. While marketing manager is arranging the variables under firm‟scontrol, she/he should also adopt the external variables. We could call the factorsthat affect banks‟ market as technological developments, legal arrangements andcompetition.List of Private Banks in IndiaBank of Punjab Bank of Rajasthan Dhanalakshmi BankCatholic Syrian Bank Centurion Bank Development Credit BankCity Union Bank Federal Bank Karnataka BankING Vysya Bank Jammu & Kashmir Bank Laxmi Vilas BankHDFC Bank ICICI Bank South Indian BankIndusInd Bank Axis Bank United Western BankList of National Banks in IndiaAllahabad Bank IDBI Bank Bank of BarodaBank of Maharashtra Canara Bank Central Bank of IndiaDena Bank Indian Bank OBCPunjab National Bank SBI and Associates State Bank of MysoreUCO Bank Vijaya Bank Punjab & Sind BankSyndicate Bank United Bank of India 9
  11. 11. Marketing of Services PGDM-Exec 2012Research Methodology The research carried out under the topic, was based on the combination ofprimary and secondary data. The questionnaire method was adopted to collectviews of various people about the two sectors of banking industry in India. Thesurvey data was collected from professionals and students at various b-schools. The sample of strategy applied in this regard was random. The research designwas a blend of descriptive and exploratory method. The ranking scale method wasapplied in this process. The research comprises of defining and redefining problems, formulatinghypothesis or suggested solutions; collecting, organizing and evaluating data,making deductions and reaching conclusion; and at last carefully testing theconclusions to determine whether they fit formulating hypothesis. The researchprocess is carried out to a series of step, which are required to be taken inchorological order. The major marketing research steps are as follows:  Problem identification  Research design  Data collection  Data analysis & interpretation  Report PresentationProblem Identification The first and foremost step in this research is to identify the problem chosen forinvestigation. The step has very significance, once it is said “A Problem wellidentified is half way to solution”. The problem considered for investigation in thisproject is the “perception of customers towards the two sectors of banking in Indiain terms of services and satisfaction”.Research Design A research design is a master plan or model for the formal investigation. Oncethe formal investigation is decided, the researcher must formulate the formal planof investigation. A research design is the specification of methods & procedure, foracquiring the information needed for solving the problem. The formal investigationplan will concentrate on the selection of sources of information and the selection ofmethods and procedures for gathering the data. Data gathering forms areprepared. We have used the Descriptive Method of the three basic types of research designfor our study – 10
  12. 12. Marketing of Services PGDM-Exec 2012 Descriptive Research Design The descriptive study is typically concerned with determining frequency withwhich something occurs or variable vary together this study is guided by an initialhypothesis. Descriptive studies are those studies, which are concerned withdescribing the characteristics of a particular individual, or of a group. Descriptive research includes surveys and fact-finding enquiries of differentkinds. The major purpose of descriptive research is description of the state ofaffairs as it exists at present. In social science and business research we quit usethe term Ex post facto research for descriptive research studies.Data Source Primary Data Primary data are those data, which are obtained for the first time by theinvestigator himself. In order words, by primary data we mean those data, whichare originally, i.e., those in which little or no grouping has been made, the instancebeing recorded or itemized encountered. The source of primary data used in my project is the questionnaire. Primary arethe raw data like raw material. Primary data are according to object of investigationand used without correction. The collection of primary data requires large sum,energy and time. Precautions are not necessary in the use of the primary data. Secondary Data Secondary data means data that are already available i.e; they refer to the data,which have already been collected and analyzed by someone else. When theresearcher utilizes secondary data, then he has to look in to various sources fromwhere he can obtain them. In this cause he is certainly not confronted with theproblems that are usually associated with the collection of original data. Secondarydata may either be published data or unpublished data. We have collected the primary data through Questionnaire method which consista series of questions whose answers could be analyzed to get a fair idea on thesituation under consideration. These questions give the respondents the liberty tospeak freely. Questionnaire had been prepared to get fair response from thepeople. To obtain the best end results without any kind of biasness, get a brief ideaabout sampling and benefits for making inferences for tabulations and calculationswith research instruments.Data collection method We have used Google Forms to get online response on the survey which wascollected on the backend spreadsheet.Data Analysis For the analysis of the data we have used the “Percentage & Random Sampling”method. Percentage & Random Sampling is used to measure different psychologicalaspects such as attitudes, perceptions and preference of people with the help ofcertain pre-defined set of stimuli and instructions. We will show our graphicalrepresentations in percentage. 11
  13. 13. Marketing of Services PGDM-Exec 2012Analysis and Interpretation of Survey Data Total Respondents: 127Demographic Statistics Gender: Male 82 Female 45 Age: 18-24 20 25-35 94 36-50 10 More than 50 3 Profession: Student 33 Service 74 12
  14. 14. Marketing of Services PGDM-Exec 2012 Housewife 8 Business 8 Others 4 Annual Income: Less than 2 lakh 31 2 to 5 lakh 14 5 to 10 lakh 52 10 to 25 lakh 27 More than 25 lakh 3 13
  15. 15. Marketing of Services PGDM-Exec 2012Survey Statistics Do you have Account(s) in Bank(s): All the respondents answered as they have at least one account in a bank. The Account(s) are with which type of Bank(s) Public Sector 17 Private Sector 33 Both 77 Which of the below would you prefer for banking? SBI 58 ICICI 69 14
  16. 16. Marketing of Services PGDM-Exec 2012 Why would you prefer the above? ICICI SBI Services at Branch 55 Services at Branch 21 Customer Service 59 Customer Service 13 Innovation 23 Innovation 2 Branch / ATM Availability 46 Branch / ATM Availability 17 Product Range 23 Product Range 18 How do you access your account? Branch Banking 52 Net Banking 107 Telephone Banking 10 Mobile Banking 22 ATM 89 15
  17. 17. Marketing of Services PGDM-Exec 2012 How would you rate SBI and ICICI? SBI ICICI Poor 5 6 Average 25 23 Good 71 51 Very Good 24 34 Excellent 2 13 16
  18. 18. Marketing of Services PGDM-Exec 2012Research Findings Based on the results of the questionnaire survey, below listed are the findings –  The number of male respondents was almost double than the female respondents.  74% respondents were in the age range of 25-35 years  Around 58% of the respondents were in the Service category  Around 41% respondents were in the annual income range of 5 to 10 lakh whereas 21% were in the range of 10 to 25 lakh  All the respondents have atleast one account with a bank  Approx. 61% respondents have account in both public and private sector banks whereas 26% has accounts only in private sector banks  54% respondents prefer ICICI over SBI  According to the responses we see that ICICI won over SBI on all the given preference parameters with a major margin.  ICICI is considered more innovative than SBI  ICICI has better customer service than SBI  SBI has poor Service at Branches  ICICI has more Branch/ATM availability over SBI  Respondents majorly access their account through Netbanking and ATMs  With so many drawbacks with SBI, 56% respondents have rated it as Good, whereas only 40% rated ICICI as good  ICICI was rated as Excellent for more than 6 times than SBI Unique suggestions received for ICICI from the respondents –  They are good. Should try to bring in more offers for the Customers quite frequently.  ICICI bank should become more customer friendly in terms of charges they take on various services.  Should keep on innovating and try to improve their services day by day.  They must provide better service and response to the customers.  They can enhance the ease of enabling internet banking.  ICICI charges unnecessary fee. Its employees are all like "pooch ke batata hoon".  ICICI should have the policy that 2 accounts can be linked with 1 mobile no and can have transactions even with the same number without linking the accounts online. This is currently not possible in ICICI and I faced the same problem.  ICICI bank should become more customer friendly in terms of charges they take on various services.  They should continuously keep on innovating and try to improve their services day by day.  Be more user-friendly and Prompt action. Unique suggestions received for SBI from the respondents –  SBI should be more professional in terms of Branch Banking. 17
  19. 19. Marketing of Services PGDM-Exec 2012  Lack of professionalism in public sector banks, quality of services is very poor; opening an account takes longer duration than private banks etc. public sector banks should look into these matters seriously.  Try to improve your service with low customer wait time and great CRM quality with proper service.  Improve Service  Certain customer services like making of demand draft should be made more economical. The Moto of profit earning on these services should be less because it creates a better customer image.  They should come with good products  Improve the customer service.  Need to add more security features.  Bad services, late response, no proper info available.  Please improve your customer interaction by making your staff more polite.  Technology/IT/Innovation need to happen more.  Best practices of others could be adopted.  SBI should be more professional in terms of Branch Banking.Conclusion  Private sector banks are preferred because of their customer service and branch services.  Both sector banks have their drawbacks but private sector is still more preferred because of its services and availability.  Private sector should not charge unnecessary fees, because customers these days are conscious about it and might move away or find better banking alternatives.  Consumers are more technology oriented and prefer transacting online or through ATMs, rather than visiting a bank branches. Hence, improving on that front might help banks gain more customer base.  Public sector banks lack respect for their customer which is one of the major reasons of consumers preferring private banks.  Public sector banks need to be more customers focused.Suggestions i. The business transaction hours can be flexible. ii. The can open their branches at the shopping place so that customers may have easy availability of finance. iii. Customer complaint system can more effective and informative. iv. Developing strong cultural values v. Bonding with customers vi. Responsiveness vii. Fast & Decentralized decision making 18
  20. 20. Marketing of Services PGDM-Exec 2012Appendix I – Questionnaire The Questionnaire used for the primary research is as below –Demographic InformationGender Male FemaleAge 18-24 25-35 36-50 More than 50Profession Student Service Housewife Business OthersAnnual Income Less than 2 lakh 2 to 5 lakh 5 to 10 lakh 10 to 25 lakh More than 25 lakhSurvey QuestionsDo you have Account(s) in Bank(s) Yes NoThe Account(s) are with which type of Bank(s) Public Sector Private Sector BothWhich of the below would you prefer for banking? SBI ICICIWhy would you prefer the above? Services at Branch Customer Service Innovation Branch / ATM Availability Product RangeHow do u access your account? Branch Banking Net banking Telephone Banking Mobile Banking ATMHow would rate SBI? Poor Average Good Very Good ExcellentHow would rate ICICI? Poor Average Good Very Good ExcellentAny suggestion for the Preferred Bank?Any suggestion for the Non-Preferred Bank? 19
  21. 21. Marketing of Services PGDM-Exec 2012References  www.scribd.com  www.wikipedia.com  Marketing of Banking Products – Pradeep Revu 20

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