BANK MARKETING CONCEPTS 1. CROSS-SELLING AND UP-SELLING 2. PRODUCT LIFE CYCLE 3. NEW PRODUCT DEVELOPMENT (NPD) 4. BANCASSURANCE 5. TELEMARKETING

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CROSS-SELLING AND UP-SELLING
➢ CROSS-SELLING
Cross selling concerns selling those items which are connected or can be integrated with the
product being sold. It involves offering the customer items that compliment the original
purchase in some manner.
It is an art of suggesting a customer products related to the one for which purchase is already
in progress. Customer is motivated to spend on items that might be required later to get a
complete experience of the product in question.
For Example If we are selling a laptop, we can offer a laptop bag, a mouse or a laptop desk
with the cooling fan.
In order to be ready to do the cross selling one should study his offers and find
complementary additional products and services to each offer. Use his target market
knowledge and expertise to find the best pairs for his customers.
Cross-selling works successfully when,
• Cross-sells are half the price or less of the original product
• When cross-selling comprises of small purchases and small cross-sells, for example
monitored issues plus monitor cleansing liquid
• When products are naturally bundled such as a Camera plus a Camera case.
However, there are times when cross selling fails,
• When cross-sells are more than half the price of the original product
• When cross selling chain is reversed: people won't buy a Camera in addition to the
Camera case
➢ UP-SELLING
Up selling is a sales technique where a seller tries to sell more enhanced and expensive
products than the product the customer initially decides to buy
For example Basically up selling happens when we decide to buy one laptop but you by your
picture I'm more expensive model becaus the seller demonstrated it and recommended you to

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buy it the update should cost you just slightly more than the chosen for that is the price
difference is very big the wire we need to go through a longer buying decision and may
postpone the purchase or stay with the chores introduction it is recommended products that
cost much more than 25% more than the chosen to dad bring up selling works actually works
when relatively small difference in price or from the same price class range products
PRODUCT LIFE CYCLE
➢ MEANING
All products have certain length of life during which they pass through certain identifiable
stages. The PLC is a conceptual representation of product ageing process. Product start with
introduction in the market for the purpose of sale. The demand of that product is gradually
increased in the market & it reaches to its maximum, from where it starts to decline. It is
effective lifespan of a product.
The stages through which the individual products develop over a period of time is known as
product life cycle.
The product life cycle concept is derived from the fact that a given product's volume and
revenue follow a typical pattern of four - phases cycle. This life cycle is the representative fact
of the existence of every product.
If we plot a graph of sales volume versus time for a product, generally, the PLC represents a
bell- shaped or s-shaped curve.
➢ DEFINATIONS
• According to Philip Kotler: “The Plc is an attempt to recognize the distinct stages in
the sales history of the product.”
• According to William J. Stanton: “The Product life cycle concept is the explanation
of the product from its birth to death as a product exists in different stages & in
different competitive environments”.
➢ STAGES OF PLC CURVE
▪ Introduction
▪ Growth
▪ Maturity
▪ Decline

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▪ Introduction Stage : It is the 1 st stage, wherein the product is launched in the market with
full scale production & marketing programme. The product is a new one. It means “ a product
that opens up an entirely new market, replaces an existing product or significantly broadens
the market for an existing product.” In this stage sales grow at a very lower rate because it is
not an effective demand.
Characteristics
o Low & slow sales.
o High product price
o Heavy promotional expenses.
o Lack of knowledge
o Low profits
o Narrow product lines
▪ Growth Stage: Once the market has accepted the product, sales begin to rise & product enter
its second stage. The product achieves considerable & widespread approval in the market. The
sales & profits increases at an accelerated rate. In this effective distribution, advertising & sales
promotion are considered as the key factors.
Characteristics
o Rapid increase in sales

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o Product improvements
o Increase in competition
o Increase in profits
o Reduction in price
o Strengthening the distribution channel.
▪ Maturity Stage: Market becomes saturated because the household demand is satisfied &
distribution channels are full. The product has to face keen competition which brings pressure
on prices. Though the sales of the product rises but at a lower rate. Profit margin however
decline due to keen competition.
Characteristics
o Sales increases at decreasing rate
o Normal promotional expenses
o Uniform & lower prices
o Product modifications
o Dealer’s support
o Profit margin decreases
▪ Decline Stage: This is the finial stage, sooner or later actual sales begin to fall under the impact
of new product competition & changing consumer behavior. The sales & profits fall down
sharply & the promotional expenditure has to be cut down drastically.
Characteristics
o Rapid decrease in sales
o Further decrease in prices
o No promotional expenses
o Suspension of production work
EXAMPLE OF PRODUCT LIFE CYCLE
Introduction – Self-driving cars. Self-driving cars are still at the testing stage, but firms hope
to be able to sell to early adopters relatively soon.
Growth – Electric cars. For example the Tesla Model S is in its growth phase. Electric cars
still need to convince people that it will work and be practical. As there are more electric
charging points and more people adopt, it becomes easier to sell to those who are more
sceptical of new technology like electric cars.
Maturity – Ford Focus. The Ford Focus is a well-established car. It has a good brand
reputation and has reached its peak level of market penetration. It would be difficult to gain a
significantly greater market share. The product life cycle of the Ford Focus has been extended
by constant upgrades and redesigns to keep the car on top of the market.

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Decline – Diesel cars. Since many governments have expressed concern at the level of
pollution from diesel cars. Some cities have threatened to ban diesel cars within a few years.
Sales have fallen considerably and the market for diesel cars may be in terminal decline.
NEW PRODUCT DEVELOPMENT (NPD)
➢ NEW PRODUCT
✓ A product is anything that can be offered to a market to satisfy needs and wants.
✓ A New product is any product which is perceived by the customer as being new.
New product can be categorized as : -
o New to the world
o New to the product lines
o Additions to the existing product line
o Improvements & revisions of existing products
o Repositioning
o Cost reductions.
➢ NEW PRODUCT DEVELOPMENT PROCESS

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▪ Idea generation is continuous, systematic search for new product opportunities.
Ideas form using creativity generating techniques and generated through firm’s Internal
Sources & external Sources.
The Internal Sources are :
o Research and development
o Employee
The external sources are :
o Customers
o Suppliers
o Competitors
o Distributors
o Online opinion
▪ Idea Screening: Filtering the ideas to pick out good ones & dropping the poor ones. It
involves a preliminary elimination process in which a large number of product ideas are
screened in terms of the organization’s objectives, policies, technical feasibility, and
financial viability.
COMMERCIALISATION
MARKET TESTING
PRODUCT DEVELOPMENT
BUSINESS ANALYSIS
MARKETING STRATEGY DEVELOPMENT
CONCEPT DEVELOPMENT & TESTING
IDEA SCREENING
IDEA GENERATION

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Total ideas are categories into three group. They are, promising ideas, marginal ideas and
rejected ideas.
In screening ideas, the companies normally face two serious errors & they must try to avoid
these mistakes : 1. DROP ERROR 2. GO ERROR
▪ Concept Development & Testing: Here, the Product Idea is converted into product
concept. Product Ideas means Possible product that company may offer to the market. A
product concept is a detailed version of the idea stated in meaningful consumer terms.
When developing product concept following criteria should be consider:
Who will use the product.
What primary benefit should this product provide.
When will this product be consumed.
Concept Testing means presenting the product concept to target consumers, physically or
symbolically, and getting their reactions.
▪ Marketing Strategy & Development: After concept testing, for concepts that qualify a
preliminary marketing strategy is created to introduce new product into market.
✓ Understanding customer
✓ Analyze the market
✓ Analyze the competition
✓ Research distribution channel
✓ Define marketing mix
✓ Analyze the financials
✓ Review and revise
▪ Business Analysis: This stage will decide whether from financial as well as marketing
point of view, the project is beneficial or not. In Business Analysis , Estimate likely selling
price based upon competition and customer feedback. Estimate sales volume based upon
size of market. Estimate profitability and break-even point. If above are match with the
company's objectives, then the new product concept moves to product development stage.
▪ Product Development: Up to now, the product has existed only as a word description, a
drawing. The company will now determine whether the product idea can translate into a
technically and commercially feasible product.

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▪ Market Testing: Now the product is ready to be branded with a name, logo, and
packaging and go into a preliminary market testing. Marketing Testing involves placing
a product for sale in one or more selected areas and observing its actual performance
under the proposed marketing plan.
Methods for market testing:
1. Sales wave research.
2. Simulated test marketing.
3. Controlled testing marketing.
4. Test markets.
▪ Commercialization: After successful market testing, new product comes to
commercialization stage. During this stage, production of new product on a commercial basis
is rapidly built up and implementing a total marketing plan.
For formally launching a New Product, the following decisions to be taken:
A) When to launch (Timing)
B) Where to launch (Geographic Strategy)
C) To Whom (Target-Market Prospects)
D) How to launch (Introductory Market Strategy)
BANCASSURANCE
➢ MEANING
Bancassurance is a French term referring to the selling of insurance through a bank's
established distribution channels. In other words, we can say Bancassurance is the provision
of insurance (assurance) products by a bank. The usage of the word picked up as banks and
insurance companies merged and banks sought to provide insurance, especially in markets that
have been liberalised recently. It is a controversial idea, and many feel it gives banks too great
a control over the financial industry.
In some countries, bancassurance is still largely prohibited, but it was recently legalized in
countries like USA when the Glass Steagall Act was repealed after the passage of the Gramm
Leach Bililey Act.
Produce a
physical
prototype
Test the
product
Conduct
focus group
customer
Make
adjustment

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Bancassurance is the selling of insurance and banking products through the same channel, most
commonly through bank branches. Selling insurance means distribution of insurance and other
financial products through Banks.
Bancassurance concept originated in France and soon became a success story even in other
countries of Europe. In India a number of insurers have already tied up with banks and some
banks have already flagged off bancassurance through select products.
Bancassurance has become significant. Banks are now a major distribution channel for
insurers, and insurance sales a significant source of profits for banks. The latter partly being
because banks can often sell insurance at better prices (i.e., higher premiums) than many other
channels, and they have low costs as they use the infrastructure (branches and systems) that
they use for banking.
Bancassurance primarily rests on the relationship the customer has developed over a period of
time with the bank. And pushing risk products through banks is a much more cost-effective
affair for an insurance company compared to the agent route, while, for banks, considering the
falling interest rates, fee-based income coming in at a minimum cost is more than welcome.
➢ ADVANTAGES OF BANCASSURANCE
The following factors have mainly led to success of bancassurance
(i) Pressure on banks' profit margins: Bancassurance offers another area of profitability to
banks with little or no capital outlay. A small capital outlay in turn means a high return on
equity.
(ii) A desire to provide one-stop customer service: Today, convenience is a major issue in
managing a person's day to day activities. A bank, which is able to market insurance products,
has a competitive edge over its competitors. It can provide complete financial planning services
to its customers under one roof.
(iii) Opportunities for sophisticated product offerings.
(iv) Opportunities for greater customer lifecycle management.
(v) Diversify and grow revenue base from existing relationships.
(vi) Diversify risks by tapping another area of profitability.
(vii) The realisation that insurance is a necessary consumer need. Banks can use their large
base of existing customers to sell insurance products.

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(viii) Bank aims to increase percentage of non-interest fee income
(ix) Cost effective use of premises
➢ VARIOUS MODELS OF BANCASSURANCE
Various models are used by banks for bancassurance.
(a) Strategic Alliance Model : Under this Model, there is a tie-up between a bank and an
insurance company. The bank only markets the products of the insurance company. Except for
marketing the products, no other insurance functions are carried out by the bank.
(b) Full Integration Model : This model entails a full integration of banking and insurance
services. The bank sells the insurance products under its brand acting as a provider of financial
solutions matching customer needs. Bank controls sales and insurer service levels including
approach to claims. Under such an arrangement the Bank has an additional core activity almost
similar to that of an insurance company.
(c) Mixed Models: Under this Model, the marketing is done by the insurer's staff and the bank
is responsible for generating leads only. In other words, the database of the bank is sold to the
insurance company. The approach requires very little technical investment.
➢ STATUS OF BANCASSURANCE IN INDIA
Reserve Bank of India (RBI) has recognized "bancassurance" wherein banks are allowed to
provide physical infrastructure within their select branch premises to insurance companies for
selling their insurance products to the banks’ customers with adequate disclosure and
transparency, and in turn earn referral fees on the basis of premia collected. This would utilize
the resources in the banking sector in a more profitable manner.
Bancassurance can be important source of revenue. With the increased competition and
squeezing of interest rates spreads profit of the are likely to be under pressure. Fee based
income can be increased through hawking of risk products like insurance.
There is enormous potential for insurance in India and recent experience has shown massive
growth pace. A combination of the socio-economic factors are likely to make the insurance
business the biggest and the fastest growing segment of the financial services industry in India.
However, before taking the plunge in to this new field, banks as insurers need to work hard on
chalking out strategies to sell risk products especially in an emerging competitive market.
However, future is bright for bancassurance. Banks in India have all the right ingredients to
make Bancassurance a success story. They have large branch network, huge customer base,

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enjoy customer confidence and have experience in selling non-banking products. If properly
implemented, India could take leadership position in bancassurance all over the world
Government of India Notification dated August 3, 2000, specified ‘Insurance’ as a permissible
form of business that could be undertaken by banks under Section 6(1)(o) of the Banking
Regulation Act, 1949. Then onwards, banks are allowed to enter the insurance business as per
the guidelines and after obtaining prior approval of Reserve Bank of India.
TELEMARKETING
➢ MEANING
Telemarketing is a method of direct marketing in which a salesperson interacts with customers
to convince them to buy products or services, either over the phone or through a face to face
interaction. Telemarketing may either by carried out by telemarketers, or increasingly, by
automated telephone calls or "robocalls." The intrusive nature of telemarketing, as well as
reports of scams and fraud perpetrated over the telephone, has spurred a growing backlash
against this direct marketing practice. Telemarketing may also be referred to as "telesales" or
"inside sales."
Two types of telemarketing are used by companies :-
a) Outbound telemarketing,
b) Inbound telemarketing
➢ ADVANTAGES & DISADVANTAGES
Advantages
o Telemarketing involves lower overhead costs than employing an outside sales force,
saving small businesses money.
o Another advantage of outbound telemarketing is that you can expand your business by
selling to customers in other sales territories, whether locally or nationally.
o Telemarketing also offers a way to follow up with existing customers. Staying in
contact with your customers gives you an opportunity to find out more about the
client’s needs and build a better relationship.
o In the end, improved customer satisfaction can have a significant impact on the
profitability of your business.
Disadvantages
o Despite the sales value that telemarketing offers, many consumers associate it with a
negative image.Customer reactions are not always friendly, as bad experiences with

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telemarketers contribute to the negative stereotype. Some customers find the unwanted
calls annoying or are wary of scams.
o Another major disadvantage of telemarketing is that the customer lists are expensive
to purchase and may not be up to date. Often, they do not result in a high number of
actual sales. In many cases, the lists include the names of people who do not want
unsolicited sales calls. Worthwhile telemarketing lists have the names of customers
who have demographic characteristics that closely match those of your target market
or who have previously purchased products similar to what your business offers.
➢ PROCEDURE
Telemarketing may be done from a company office, from a call centre, or from home. It
may involve either a live operator or a recorded message, in which case it is known as
"automated telemarketing" using voice broadcasting. "Robocalling" is a form of voice
broadcasting which is most frequently associated with political messages.
An effective telemarketing process often involves two or more calls. The first call
determines the customer’s needs. The final call (series of calls) motivates the customer to
make a purchase
➢ CATEGORIES OF TELEMARKETING
There are two types of telemarketing namely:
a) B2B-Business-to-Business
b) B2C-Business-to-Consumer
Business-to-business involves mostly inter-company based exchanges while business-to-
consumer dabbles with the mass market. You can categorize their differences among
several characteristics: The target market, length of the process, their means, and their
products.
Business-to-Business
• Target Market – Mostly restricted to clients that are involved in larger companies or other
similar organizations. To give an example, known companies like Nvidia tend to sell their
products to other large company brands like Asus and Gigabyte rather than sell it directly
themselves.
• The Length of the Process – There are many factors involved which naturally makes for
a really long process. It involves projecting large figures and dealing them to potential
clients so that the end result would present lesser risk. You usually discuss proper
management protocols that include logistics, payment timelines, order approvals and other
applied practices which in turn require marketing to the people in charge of them.

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• The Means – Most of the clients would look at their transactions more critically in order
to build up relationships for future goals. Many outsourced lead generation services provide
B2B marketing methods like telemarketing, lead nurturing, and appointment setting in
order to help a prospect arrive at a sound buying decision.
• The Product – The type of products/services are always complex. They could involve
large numbers of people who also have their own requirements. Going back to the earlier
example with Nvidia, their hardware technology usually comes in the form of graphic
processors or the complete product like a whole video card. However, selling their
technology isn’t something temporary so it means they not only sold a physical unit like
the video card but also the idea and blueprint of what Nvidia’s technology holds.
Business-to-Consumer
• Target Market – The target audience are broader and diverse in retrospect since they are
more expressive and act on either impulse or long term fascination. Their variety can range
from a niche group of individuals to entire demographics. The type of people you can draw
will also range up to brand companies as well.
• The Length of the Process – The entire process can is the quicker of the two since it
mostly ends with consumers directly purchasing the products and services. But setting that
aside, the ways it can happen still vary from something small like a random passerby who
buys a burger within minutes to something even bigger like buying an imported high class
car from an official car dealer, which takes weeks or even months to complete the
transaction.
• The Means – Relationships with the customers tend to be limited at times. There can be
little to no interest with the company itself and more on just buying the product. In such
cases, businesses use highly dynamic means of marketing their products to attract potential
clients to build brand loyalty and fanbases (e.g. advertising, sports events, endorsements).
• The Product – Consumer products aren’t really hard to figure out. They’re the things you
see on commercials! You have everything from consumable supplies to electronics. One
example is HP All-in-One Desktops, where a person can buy one in an official retail store
for personal use.