The document discusses the interplay between consumer psychology and the marketing of banking products, highlighting how individual needs and societal factors influence banking decisions. It contrasts traditional banking approaches with new trends emphasizing customer segmentation and relationship marketing, addressing the roles of technology and risk management in modern banking. Additionally, it stresses the importance of aligning banking products with consumer requirements and improving customer service through deeper engagement and understanding.

1. Consumer Psychology and Marketing of Banking ProductsKarnataka Bank Staff Training College,December 10, 2008B.V.Raghunandan, SVS College, Bantwal

2. Consumer PsychologyIndividualisticNeed BasedReacting to the EnvironmentShaping the Needs to the Product offered in case of no choiceBoth Rational and IrrationalDominant Social Psychology

3. Marketing Concepts: A Business AttitudeProduction ConceptProduct ConceptSelling ConceptMarketing ConceptSocietal Concept

4. Marketing Vs Banking Product ResearchTarget ConsumersMarket StudyFlexible OperationFree Operating AtmosphereSalesmanship & PromotionConsumer SovereigntyStandardised ProductMass ConsumersNo Market StudyProfessionalismRigid OperationRegulated AtmosphereSocial BankingRBI SovereigntyMarketingBanking

5. Consumer Psychology in Traditional BankingNo ChoiceStandardised ServiceRobotic ResponseParasiteEndless PatienceResigned for Production ConceptChoice Based on Caste or RegionalismConvenience (Location)Single Branch MonopolyGenerally Rational decisions

6. Change AgentsLiberalisationNarasimham CommitteeBIS at BaselIT and NetworkingNew Generation BanksCapital Market ReformsFII & Foreign Insurance CompaniesBusiness Groups setting up Finance CoBank Subsidiaries Offering financial services

7. New Age BankingIT Absorption & NetworkingCross Selling of ProductsAgency Sale of ProductsBancassuranceListed EntitiesCapital AdequacyInterest Rate Differential Financial ServicesBigger Role of Insurance CompaniesRisk ManagementConsolidationAdvertisement Aggressive MarketingWasteful Marketing PracticesMore Consumer CareFlexible TimingLesser ProcedureATM as Delivery Channel & as a Branch Expansion Strategy

8. Consumer Psychology in New Age BankingSpill over Effect of Traditional BankingVaried Needs of CustomersStrong Segmentation of MarketsUrban -Rural DivideFusion of Marketing & BankingMore EmotionalIncreased Distrust

9. Preferences of Urban CustomersCategory I : Personal even if InefficientCategory II : Impersonal & EfficientCategory III : Personal & Efficient

10. Preferences of Rural CustomersRelationship MarketingEarly BankingPersonal ServiceHigher Level of PatienceNeeds GuidanceBasic Banking

11. Banking ProductsOwn Products: Risk Free- Show the superiority for Retirement Benefits and Free of Entry & Exit LoadMutual Funds: Growth with Risk- Emphasise that it is not your product, suggest SIP for a Minimum of three yearsInsurance Products: Risk Coverage with limited return

12. ConflictsProfit Vs CustomersYour Products Vs Third Party ProductsDividing Marketing & BankingRational Choice & Emotional ChoiceConsumer Sovereignty Vs Counselling Customer Service Vs Compliance with Regulation

13. Agenda for ActionInvestors’ MeetCreation of Database of ConsumersMatching the Products to the Requirement of CustomersCreation of a Library at Branch LevelAttending the Social Function particularly in Rural AreasJoining Social Organisations and Social Causes

14. THANK YOU