MARKETING OF FINANCIAL
Aimed to satisfy customer’s needs and
Needs and wants may be non financial in
Competitive element, efficiency and
Organizational objectives are still the
Commercial objective to make profit
• Banking marketing concept emerged in the west in
1950’s in the form of adv. & promotion.
The evolution of bank marketing in India can be
classified in 3 phases:
1.TRADITIONAL BANKING PERIOD:
Bankers were concerned with maintenance of
a/c’s & transaction of businesses’ with customer in
lines with the rules & regulations. In spite of this, a
strong bond between banker-customer existed with
some selected customers. It was also called “CLASS
2. DEVELOPEMENT BANKING PERIOD:
14 major commercial banks in 1969 was
nationalised. The socio-economic objective of
nationalisation drove the public sector banks to
expand banking activities & extend it to larger groups
of customers. Thus called “MASS BANKING”.
Bankers adopted selling concept to mobalise
deposits, they didn’t find the needs of the customers
but offered what was available.
However, in 1972 SBI came out with market
segmentation scheme & innovative loan plans.
3. BANK MARKETING PERIOD:
• What caused banking marketing?
a.Rising customer needs & expectation due to
improvement in general standard of living.
b.Entry of foreign & private sector banks in India.
c.Economic liberalization of Indian economy.
d.Phenomenal growth of competition due to economic
e.Rise in the Indian middle class with considerable
f.Government intervention in protecting the interest of
Blending of 7 P’s with financial services:
• Convenience of paying dues.
• Keeping records.
• Transferring funds.
• Various deposits.
• Loans & advances.
• Consultancy services.
• International banking,
• Safe deposits
• Credit card.
• So on…..
Bankers have to identify the core &supplementary
product services as it has more market
Core product: it’s the fundamental benefit that the
customer buys from the bank. Customers don't buy
product but buy benefit. A particular bank
differentiates itself from other bank through
Augmented product: a basic product with which
some ancillary is attached to it. E.g.: Suvidha a/c
with CITIBANK, ATM card is free.
Bankers need to add more innovative services with their
product in order to have competitive advantage.
Product related strategy include:
i. Introduction of new schemes: DEMAT a/c.
ii.Modification of product through technological
development: online banking.
iii.Change in the product line or package: from corporate
banking to personal banking, or deleting an existing
• In India, banks adopt administered pricing structure
to some extent as the deposit & lending rates are
prescribed by RBI.
• All the promotional tools are essential right from the
stage of new product. The objective is to make the
people aware of new product, to persuade customers,
to remind customers, build image of the bank.
• An advertisement in banking is a promise. Eg:
newspapers, radio, television, magazines & hoardings.
Sales promotion: brochures , calendars, diaries, pen
• Publicity : customers tends to believe a news item
rather than an advertisement. WOM an important
• Making the banking service available & accessible to
the customer. Selection of suitable location for the
branch. Should have sound availability of
transportation, communication, electricity & other
necessary facilities for the smooth functioning of the
• Banking product cannot be separated from the people
who markets them.
• Banks adopts internal marketing in order to make the
whole business customer- oriented.
• The product is known to the employees before they are
effectively marketed to the customers.
• Accounting procedure for putting through a
transaction. Through automation of transactions,
accounting procedures & data handling.
E.g.: loan application , clearance of cheque.
• Imaginative designs of bank brochures , flashy cheque
• Attractive brand names, logos, symbols.
• Customers perception of service quality.
• Education is a service that is geared primarily
to the consumer market, therefore, it can be
classified as a consumer service rather than an
• It can be monitored by judging service content
(curriculum, course material, student workload,
• EDUCATION CANNOT BE SEEN OR TOUCHED & IS OFTEN
DIFFICULT TO EVALUATE: marketer has to build “service
differentiation” in the basic product to enable competitive
• PRODUCTION & CONSUMPTION ARE
face to face teaching necessitates simultaneous production &
consumption. However, the open & distance learning systems which makes
use of technology have made it possible for the production & consumption of
the service to be carried out at different times, designed to meet the
challenge posed by the perishable character of services.
• NO INVENTORIES CAN BE BUILD UP: unutilized services
cannot be stored if there are no students. Better match between supply &
demand would need to be made. Course design & course offered needs to be
preceded by a need analysis of the target population before the decision to
launch them is made.
• Transfer of knowledge is directly from the provider to
the learner. However, open learning systems have
overcome the characteristics of inseparability.
• The course can be of same standards but different
institutions faculty performance differs. The
heterogeneous characteristic necessitates carefull
personnel selection, planning, constant & careful
monitoring of standards which can provide cues to the
prospective customers to aid choice of institutions.
• ISO 9002 certification: quality assurance is a
structured & user friendly set of systems, which
make the most complex tasks easy & efficient. Its
makes the senior management free from evryday
stress in observing & monitoring task which
have to be completed on daily basis.
A. Emergency services.
B. Ambulance services.
C. Diagnostic services.
D. Pharmacy services.
E. Casualty services.
• Generally the service offering in a hospital comprises
of the following levels:
a.Core level: basic treatment facility & services , like,
diagnostic services, emergency services, casualty
b. Expected level: cleanliness & hygiene levels .
c.Augmented level: dress code of a staff, AC, renouned
• Usually depends on treatment & facilities offered to
• It doesnot believe in profit maximization but aims at
providing quality service to the customers at a
• Transmission of message to present, past & future
customers. Includes advertising, sales promotion,
personal selling & publicity.
• Relies on favourable WOM & doesnot depend on
• Conducts campaigns in rural areas.
• Advertises in health & fitness magazines.
• Refers to the contact point of between the service
provider & the customer.
• Accessibility & availability are the 2 main issues:
Accessibility refers to the ease & convenience with
which a service can be purchased, used or received.
Availability: refers to the extend to which a service is
obtainable or capable of being purchased , used &
Hospital must be ideally located.
The behavior & attitude of the personnel providing
services will influence the customers overall
perception of the service.
Staff in the hospital must be trained to provide quality
patient care with human touch using state of art
Warm ambiences with cheerful & efficient staff help
make the experience of the public a memorable one.
• The objective of providing quality service to
the patients can be achieved by:
a.Motivating employees to be efficient, dedicated & loyal
to the organisation.
b.Provide on-the job training to ensure continuous
improvement in health care.
c.Utilizing services of professionally competent medical
d.Use of latest technology.
• Its a set of activities that take an input, convert it &
add value to the input & finally create an output.
Processes are designed by blue prints, which sets a
standard for action to take place & to implement the
• In a hospital the process is divided into 4 phases:
INTENSIVE CONSUMPTION PHASE
• Arrival of patient.
INTENSIVE CONSUMPTION PHASE-
• Information about further action.
• Discharge of the patient.
• Fill an evaluation form, get patients suggestions, &
• Is the environment in which the service is delivered
with tangible commodities & where the firm & the
• The dress code of the staff, trained to be
understanding, warm & comforting because the
customers are usually disturbed or unhappy.
• Should be well organised, segregated into different
departments, air conditioned with good lighting, well
• A good atmosphere will make the customers feel the
• Panoramic view of the location.
• Travel to the destination .
• Accommodation & facility.
It’s a composite product- combination of
attraction, facilities & transportation. Each of the
components has its own significance in the product
ATTRACTION OF THE DESTINATION:
i. Natural sites- hill stations, beach so on.
ii.Places of historic interest- monuments, archaeological
iii.Events- trade fairs, music festivals, traditional
iv.Cultural attraction- folklore, art, theater.
FACILITIES: make tourist stay & enjoy the attraction
ACCESSIBILITY: tourist arrives at the location-
i. Infrastructure- roads, airport & railways.
ii.Equipment- size & speed of vehicle.
The three levels of service package for tourism products
CORE PRODUCT: comprises of essential need or
benefit sought by the customer. Eg: relaxation, fun or
TANGIBLE PRODUCT: comprises of formal offer of
the product as given in the brochure stating what will
be provided . Eg: breakfast, television, telephone,
swimming pool, Gym so on.
AUGMENTED PRODUCT: provides vital opportunity
to the service providers to differentiate their own
products from competitors. Augmented product must
be designed & developed around the core product. Eg:
Complimentary wine, free entrance ticket so on.
• Pricing of tourist product is a complex matter because
of its composite nature. Geographical location of the
destination affects the pricing decision.
• An important way in which the travel & tourism
business responds to their highly complex pricing
circumstances, is to operate prices at 2 levels.
level corresponds with the marketing strategy,
which concerns with product positioning, value for
money & long run return on investment.
2.Corresponds to the marketing operation or tactics
where the prices are manipulated to match the
current demand & competition.
COST BASED PRICING:
for a buss’ to survive in the long run, the average
prices charged must be sufficient to cover fixed &
variable cost & assure a reasonable ROI. There exist a
high level of fixed cost in tourism pdts & services, the
org’ thus resorts to price fixation at marginal cost to
attract more visitors when the capacity is
DEMAND BASED PRICING:
Tourism is greatly affected by seasonal
characteristics. High dd=high pricing & vice versa.
COMPETITION BASED PRICING:
fear of customers switching the
Travel & Tourism prices are often subject to government
regulation. For reasons of public health & safety, to
ensure consumer protection, Governments in all
countries frequently intervene or influence pricing
Advertising & sales promotion activities in tourism can
be very effective when supplemented by publicity,
personal selling & Public relation. PR & publicity
include regular articles & photographs of the tour
attraction, use of TV, radio holiday programme &
travel journalists for promotion.
WOM promotion is important tool in tourism
Giving incentives to customers-
• Price cuts.
• Discount voucher.
• Free gifts.
• Price draw. They are used for a short period of time
during off season.
Brochures: includes picture & words & positioning of
the product & the organisation.
• Infrastructural facilities, transportation,
communication are important for the development of
the tourist center.
• The uniqueness of tourism industry is the
predominant position of intermediaries.
• 2 major functions performed by the distribution
i. To extend the no. of points of sale, away from the
location at which services are performed or delivered.
ii.To facilitate the purchase of service in advance.
• The middlemen may be tour operators, who are whole
sellers, buys tourism products in bulk & makes them
available to travel agents who are the retailer.
• The range of tourist products which are bought by the
tour operators are airline seat, hotel accomodation,
bus for local sight seeing, they may sell it directly to
• The sales personnel are responsible for dealing with
the customers behind the counter.
• The airline & transportation crew, Resort or Hotel
representative, Tourist guide- elements of tourism
• Contact personnel must be trained on interpersonal
skills as well as product knowledge.
• The IATA( International Air Travel Association) & non
IATA agents provide self assessment of their staff.
• The assessment is made on 6 selective functional
i. Customer service.
ii.Liaison with customers.
vi.Development of new customers.
The operation process of tourism firm will depend on the
size of the firm. The steps involved in the delivery of
tourist product are:
1.Provision of travel information- information should be
provided at a convenient location where the potential
tourist seeks clarification about his proposed tour.
2.Preparation of itineraries- a series of operation that are
required to plan a tour.
3.Liaison with providers of services-contracts have to be
entered with the providers of various services including
transportation companies, hotel accommodation so on.
4. Planning & Costing tours- this will depend on the
tour selected as well as individual requirements.
5. Ticketing- the computerized reservation system.
6. Provision of foreign currency & insurance.
• Tourist attraction is an experience which can be
tangibilised with the help of tangible items, like,
comfortable seats while travelling, layout & design of
the resort/ hotel, the sign posts that indicate
directions, route maps, rules & regulations, sign
regarding the public utilities.
• Provide an elaborate brochures.