The document provides an overview of marketing concepts for bankers. It defines marketing as the process of planning and executing activities to create exchanges that satisfy individual and organizational goals. It discusses the marketing mix of product, price, place, and promotion. It also explains concepts such as the 4 Ps and 4 Cs frameworks, and differences between sales and marketing. The document emphasizes that understanding customer needs is key and outlines the marketing process from developing a business mission to implementation and evaluation.

1. General Bank Management
Marketing Management for Bankers
MODULE D
C AIIB

2. What is Marketing…??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
2

3. Marketing = ?
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association
3

4. Marketing = ?
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.
4

5. Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money
Information 5

6. Marketing = ?
 Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion
6

7. The 4 Ps & 4Cs
Marketing Convenience
Mix
Place
Product
Customer
Solution Price Promotion
Customer Communication
Cost
7

8. Difference Between - Sales & Marketing ?
Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what
the customer wants
8

9. Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
9

10. Core Concepts of Marketing
Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.
10

11. Core Concepts of Marketing
Needs, wants Utility, Value &
Products
demands Satisfaction
Marketing & Xchange, Transaction
Markets
Marketers Relationships
11

12. Core Concepts of Marketing
 Need – food ( is a must )
 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel
12

13. In order to understand Marketing let us begin with the
Marketing Triangle
Customers
Company Competition
13

14. Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
14

15. Customer –
CUSTOMER has needs, wants, demands and
desires
Understanding these needs is starting point of the
entire marketing
These needs, wants …… arise within a framework
or an ecosystem
Understanding both the needs and the ecosystem is
the starting point of a long term relationship
15

16. How Do Consumers Choose Among
Products & Services?
Value - the value or benefits the customers gain from
using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
 Performance > Expectations => Satisfaction
 Performance < Expectations => Dissatisfaction
16

17. Customers - Problem Solution
As a priority , we must bring to our customers
“WHAT THEY NEED”
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems
17

18. Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
18

19. Analysis Of Competition
Who are your competitors?
What are their strengths and weaknesses?
What have been their strategies?
How are they likely to respond to your Marketing plan?
19

20. Strategic Marketing
Strategic marketing management is concerned with
how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered
20

21. Strategic Planning
Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.
 Also called Strategic Management Process
 All organizations have this
 Can be Formal or Informal
21

22. The Strategic-Planning, Implementation,
and Control Process
22

23. Business Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)
Business Mission Goal Formulation
Internal Environment
(Strength/ Weakness analysis)
23

24. Strategy Formulation
Environmental Analysis
Competitor Internal Analysis
Customer
Supplier Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Strength & Weaknesses
Identity Core Competencies
Identify opportunity
Fit internal Competencies with external opportunities
24
Firm Strategies

25. The Marketing Plan
A written document that acts as a guidebook of
marketing activities for the marketing manager
25

26. CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control
26

27. The Marketing Process
Business
Mission
Statemen
t
Objective
s
Situation
or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product Place/Distribution
Promotion Price
Implementation
Evaluation, Control
27

28. Marketing Environment

29. Why a product like radio declined
and now once again emerging as
an entertainment medium ?
29

30. What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
30

31. Why Market Leaders Suffered ?
 HMT vs. Titan
 HLL vs. Nirma
 Bajaj vs. Honda
 Dot.com boom, then bust and now resurgence
 Market leadership today cannot be taken for
granted.New and more efficient companies are able
to upstage leaders in a much shorter period.
31

32. Factors
Influencing
Company’s
Marketing
Strategy
32

33. External Marketing Environment
External Environment
Social Ever-Changing
is not controllable Change Marketplace
Demographics
Economic
Product Physical / Natural Conditions
Distribution
Promotion
Price
Competition
Target Market
Political &
Legal Factors
Technology
Environmental
Scanning
33

34. The macro-environment
is the assessment of the external forces that act upon the
firm and its customers, that create threats & opportunities
34

35. Product
35

36. Product is . . . . .
Anything that is offered to the market for
attention, acquisition, use or consumption that
satisfies a want or a need
36

37. Types of Products
PRODUCTS
Consumer Industrial
Services
Products Products
37

38. Product Items, Lines, and Mixes
A specific version of a product
that can be designated as a
Product Item
distinct offering among an
organization’s products.
A group of closely-related
Product Line
product items.
All products that an
Product Mix
organization sells.
38

39. Product Mix
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a
product line
Consistency – how closely related the product lines are in
end use
39

40. Gillette’s Product Lines & Mix
Width of the product mix
Depth of the product lines
Blades and Writing
razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
40

41. What is a Service? Defining
the Essence
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired
change in customers themselves, or their physical
possessions, or intangible assets
41

42. Some Industries - Service Sector
Banking, stock broking Health care
Lodging Education
Restaurants, bars, Wholesaling and retailing
catering Laundries, dry-cleaning
Insurance Repair and maintenance
News and entertainment Professional (e.g., law,
architecture, consulting)
Transportation (freight and
passenger)
42

43. Classification of Services
Pure Intangible
Banking
Service
Good Transportation
Major Service with
Minor Product
Business Hotels
Product = Service
Computers
Major Product with
Minor Services
Materials / Components
Pure Tangible Product
43

44. Major Characteristic of Services
 Intangibility – Services are intangibility cannot be seen,
tasted, felt, heard or smelled before purchase.
 Inseparability - Services are produced and consumed
simultaneously.
 Variability or Heterogeneity – Services are highly variable
 Perishability – Services cannot be stored.
 Non Ownership - Services are rendered but there is no
transfer of title
44

45. The Marketing Mix
The conventional view of the marketing mix consisted of
four components (4 Ps): Product, Price, Place/
distribution and Promotion.
Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity
[technology ]People [employees], Physical evidence
Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to affect
the relationship with customers.
45

46. The “8Ps” of Integrated Service
Management vs. the Traditional “4Ps”
► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays
46

47. The Give and Get of Marketing
47

48. Great Words on Marketing
• “The purpose of a company is ‘to create a customer…The only
profit center is the customer.’”
• “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
• “The aim of marketing is to make selling unnecessary.”
• “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
• “Marketing is too important to be left to the marketing
department.”
48

49. Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute
to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers
Ability to add value and to differentiate as a firm focuses
more on the top levels
49

50. Marketers and Markets
Marketers are focused on stimulating exchanges with
customers who make up markets – B2C or B2B.
The market is comprised of people who play a series
of roles: decision makers, consumers,
purchasers, and influencers.
It is absolutely essential that marketers have a detailed
understanding of consumers, their needs and
wants.
Much happens before and after the sale to affect
customer satisfaction
50

51. Stages of Customer Interaction
51

52. What Changed in Marketing…
Old Economy New Economy
• Organize by product units • Organize by customer segments
• Focus on profitable transactions • Focus on customer lifetime value
• Look primarily at financial • Look also at marketing scorecard
scorecard
• Focus on shareholders • Focus on stakeholders
• Marketing does the marketing • Everyone does the marketing
• Build brands through advertising • Build brands through performance
• Focus on customer acquisition • Focus on customer retention
• No customer satisfaction • Measure customer satisfaction and
measurement retention rate
• Over-promise, under-deliver • Under-promise, over-deliver
52

53. Are Banks truly
marketing-savvy and
customer - centric?
53

54. Myth 1 – The larger the range of products, the more
customer-centric I am.
Mythbuster – The range of products has
emerged from being
competition-centric.
54

55. Myth 2 – Better technology (read CRM) leads to
better customer service.
Mythbuster – Technology
alone does not deliver,
helps people do.
55

56. Myth 3 – Launch a product and the customer will start
using instantly.
- Give a customer a card and he will learn how to play
with it immediately
Mythbuster – Customers need
To be educated too…
56

57. Myth 4 – The only way to get a customer is from
competition.
Mythbuster – Customers
are not only present
where competition is.
57

58. Myth 5 – Just advertise and - You will sell.
Mythbuster – Advertising will only sell,
Not retain customers.
58

59. Myth 6 – No difference between marketing & selling
Mythbuster – “Selling focuses on the needs of the
seller; marketing on the needs of the buyer.
59

60. Myth 7 – In the absence of relationships ‘trust’ builds
financial brands
Mythbuster – Trust is not a differentiator at all…
it is the very minimum that the customer expects!!
60

61. So what will the differentiators be :
• Technology ?
• Brand ?
61

62. The real differentiator of
customer – centricity in a
commoditised world of financial
products -
Customer Service !
62

63. Thank You
sagarnarsian@yahoo.com
63