This document discusses banking and marketing in the banking sector. It begins by defining banks as financial institutions that deal with money and credit. It then outlines the different types of banks in India including central banks, public sector banks, private sector banks, and cooperative banks. It also discusses the key functions of banks like issuing bank notes, processing payments, lending money, and providing other financial services. The document then covers bank marketing, defining it as satisfying customer needs more effectively than competitors. It discusses market segmentation in the banking sector and various marketing strategies employed by banks including the traditional marketing mix and internal and interactive marketing approaches.

2.  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.

3. • 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

4.  Issue of bank notes (promissory notes issued by a
banker and payable to bearer on demand)
 Processing of payments by way of telegraphic
transfer, 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

5.  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

6. “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.”

7.  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.

8.  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.

9.  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

10.  Services Sector
 Household Sector
1. Low Income
2. Middle Income
3. High Income

11. • Demat account
• Lockers
• Cash management
• Insurance product
• Loans
 NEFT

12. Traditional
Internal Interactive
external
marketing marketing
marketing

13.  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.

14. 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.

15.  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.

16. Make Estimate
Develop
marketing the Calculate
marketing
mix demand cost
strategy
decisions curve.

17.  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.

18.  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.

19.  Advertising
 Publicity
 Sales Promotion
 Personal Selling

20.  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

21.  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 :

22.  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.

23.  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.

24. • Rural banking in India started since the
establishment of banking sector in India.
Rural Banks in those days mainly focussed
upon the agro sector.