The document discusses marketing strategies for banks in India. It finds that private sector banks and foreign banks have grown faster than public sector banks on key performance metrics like deposits, advances, interest income, and profits since banking reforms in 1993. This is because private and foreign banks have adopted better marketing strategies using new technologies. The document suggests some strategies for public sector banks to enhance their marketing, such as emphasizing term deposits, developing attractive product schemes, effective branding, offering women-focused products, and improving customer awareness. Only banks that adopt effective customer-centric strategies will survive in the long run.
Customer relationship marketing is an emerging customer innovation focused on growing customer’s
satisfaction, retention and loyalty that will culminate into bank profitability. The paper investigated the impact
of investment in implementing customer relationship marketing on the performance of commercial banks in
Nigeria. The study was carried out in Federal capital territory Abuja,
A Study on Customer Relationship Marketing in Banking Sectorpaperpublications3
Abstract: Modern Marketing Philosophy advocates the concept of customer relationship marketing that creates customer delight. In the banking field a unique relationship exists between the customers and the bank. Due to various reasons like financial burdens, risk of failure, marketing inertia etc., many banks are still following the traditional ways of marketing and only few banks are making attempts to adapt customer relationship marketing. The role of custom er relationship marketing is very vital in leading the banks towards high level and volume of profits. So there is a need to study the role of customer relationship marketing in development and promotion of banking sector through the side-lines of the practices, problems and impact of CRM on banking sector all the time.
Online Retail Bank aims to be the one-stop shop for as various financial services as possible on behalf of retail customers. Online Retail Bank has extended a criteria-based marker system which is simple and effective in estimating a wide range of diverse financial industries on their financial impact. Only financially sensible/performing financial industries are evaluated, guarantee that its recommendations make both financial and retail sense.
The main objective of the study is to explore customer relationship marketing as a competitive tool at Best Point Savings and Loans Limited. A cross-sectional research and quantitative approach was adopted for the study. A non-random quota sampling technique was used to select a sample size of 20 staff members. Questionnaires were adopted to collect data from the staff. Data was descriptively analyzed. Findings from the study revealed that Customer Relationship Marketing strategy in Best Point Savings and Loans Limited to create and retain profitable customers
Relationship Marketing Strategies in Banking Sector: A ReviewIJBBR
The paper is review of relationship marketing strategies prevalent in Banking Sector. In this era of mature and intense competitive pressures, it is imperative that banks maintain a loyal customer base. Nowadays, banks realize the importance ofRelationship Marketing. Relationship marketing offers benefits to the banks,
customers as wellas employees of the organization. Relationship Marketing gives the banks way to developmutually beneficial and valuable long term relationships. These long term relationships are further helping banks in reducing operating cost and attracting new customers.
Customer relationship marketing is an emerging customer innovation focused on growing customer’s
satisfaction, retention and loyalty that will culminate into bank profitability. The paper investigated the impact
of investment in implementing customer relationship marketing on the performance of commercial banks in
Nigeria. The study was carried out in Federal capital territory Abuja,
A Study on Customer Relationship Marketing in Banking Sectorpaperpublications3
Abstract: Modern Marketing Philosophy advocates the concept of customer relationship marketing that creates customer delight. In the banking field a unique relationship exists between the customers and the bank. Due to various reasons like financial burdens, risk of failure, marketing inertia etc., many banks are still following the traditional ways of marketing and only few banks are making attempts to adapt customer relationship marketing. The role of custom er relationship marketing is very vital in leading the banks towards high level and volume of profits. So there is a need to study the role of customer relationship marketing in development and promotion of banking sector through the side-lines of the practices, problems and impact of CRM on banking sector all the time.
Online Retail Bank aims to be the one-stop shop for as various financial services as possible on behalf of retail customers. Online Retail Bank has extended a criteria-based marker system which is simple and effective in estimating a wide range of diverse financial industries on their financial impact. Only financially sensible/performing financial industries are evaluated, guarantee that its recommendations make both financial and retail sense.
The main objective of the study is to explore customer relationship marketing as a competitive tool at Best Point Savings and Loans Limited. A cross-sectional research and quantitative approach was adopted for the study. A non-random quota sampling technique was used to select a sample size of 20 staff members. Questionnaires were adopted to collect data from the staff. Data was descriptively analyzed. Findings from the study revealed that Customer Relationship Marketing strategy in Best Point Savings and Loans Limited to create and retain profitable customers
Relationship Marketing Strategies in Banking Sector: A ReviewIJBBR
The paper is review of relationship marketing strategies prevalent in Banking Sector. In this era of mature and intense competitive pressures, it is imperative that banks maintain a loyal customer base. Nowadays, banks realize the importance ofRelationship Marketing. Relationship marketing offers benefits to the banks,
customers as wellas employees of the organization. Relationship Marketing gives the banks way to developmutually beneficial and valuable long term relationships. These long term relationships are further helping banks in reducing operating cost and attracting new customers.
Customer Relationship Management is human function than technology
implementation. Banks need to constantly orient their employees and
vendors towards never losing focus of the customers, technology can be
harnessed to unable the human aspect to function more effectively. A
successful relationship will be one that lowers the business cost, increase
the company revenue and retains profitable relationship, win situation for
the company business and its valuable assets and business customers. The
banking business is becoming more and more complex with the changes
emerging from the liberalisation and globalisation. For new banks,
customer creation is important but established bank retention is much
more necessary with cost effective mechanism. The big benefit of customer
relationship management is the visibility of everything relating to
customers going on in your company. If an organization wants to provide
the better service to customers, it has to be able to manage everything
from complaints to sale opportunities. The core theme of all customer
relationship management and relationship marketing perspectives is to
focus on cooperative, collaborative relationship between the firm and its
customers and look after the marketing factors. Through this paper
researcher want to show the significance of customer relationship
management and also made as effort to explore the benefits of this concept
to banking industry.
Keywords: Customer Relationship Management, Efficiency, Customer Expectation.
Customer relationship managment in banking industryTapasya123
Customer Relationship Management is human function than technology
implementation. Banks need to constantly orient their employees and
vendors towards never losing focus of the customers, technology can be
harnessed to unable the human aspect to function more effectively. A
successful relationship will be one that lowers the business cost, increase
the company revenue and retains profitable relationship, win situation for
the company business and its valuable assets and business customers. The
banking business is becoming more and more complex with the changes
emerging from the liberalisation and globalisation. For new banks,
customer creation is important but established bank retention is much
more necessary with cost effective mechanism. The big benefit of customer
relationship management is the visibility of everything relating to
customers going on in your company. If an organization wants to provide
the better service to customers, it has to be able to manage everything
from complaints to sale opportunities. The core theme of all customer
relationship management and relationship marketing perspectives is to
focus on cooperative, collaborative relationship between the firm and its
customers and look after the marketing factors. Through this paper
researcher want to show the significance of customer relationship
management and also made as effort to explore the benefits of this concept
to banking industry.
1. Please detail your efforts to extend banking products and services to wider parts of the community.
2. Banks face many challenges – new regulations, more competition, slowing growth in some markets. Please describe your strategy for keeping your bank’s returns high?
3. Why you choose Banking Career?
4. Loan against Share. Should Banking Industry Promote or Not?
5. What particular actions provided your bank with significant success or market advantage over the past 12-15 months?
A STUDY WITH SPECIAL REFERENCE TO BANKING INDUSTRY IN INDIAIAEME Publication
Customer Relationship Management (CRM) has emerged as a popular business strategy in today’s competitive environment. It is a discipline which enables the business to identify and target their most profitable customers. CRM involves new and advance marketing strategies which not only retain the existing customers but also acquire new customers. It has been invented as a unique technique capable of remarkable changes in total output of companies. CRM in financial services industry is a cyclical process which starts with definition of customer expectations which are difficult to manage but are often the cause of dissonance which results in loss of existing customer base.
A STUDY ON EFFECTIVE BRAND PROMOTIONAL STRATEGIES INFLUENCING CUSTOMERSIAEME Publication
The paper aims to investigate the effectiveness of brand promotional strategies by Max retail, which influences the customers to purchase. Data set included use of and influence of outdoor and in-store promotional tools. These were investigated to determine impact and effect of the promotions. There is a good response about the hoardings kept in the store and POP for the internal communications and promotions and through this research study, many of the customers have shown their neutral opinion about the contests/sweepstakes/games. One third of the respondents are respond ed that the paper advertisement helps them to know the offers of Max.
International Journal of Computational Engineering Research(IJCER)ijceronline
International Journal of Computational Engineering Research(IJCER) is an intentional online Journal in English monthly publishing journal. This Journal publish original research work that contributes significantly to further the scientific knowledge in engineering and Technology.
Strategic Management has been changed over the years in terms of its scope and
application. With the rise of intense business competition, companies adopt various strategies for overshadowing their competitor(s). In the contemporary business world, evaluating and understanding competitors' business is thus a key challenge for business firms. With this motivation, this report is intended to explore the business strategies Jamuna Bank Ltd. follows to accomplish its mission and gain competitive advantages over competitors. The study reveals some useful findings: first, the applicability of CORE as an analytical framework of strategic analysis; second, the overall context of the industry; third and most importantly, performance indicators of the Bank.
Banking Consumers: 5 Core Segments and How to Reach ThemCognizant
How can financial institutions grow profitable customer relationships? Given the twin pressures of recent regulatory changes coupled with a lower rate environment, our research sought to answer the central question.
Customer is a king and Customers are the mainly focused in making new marketing strategy. In the banking field a unique relationship exists between the customers and the bank. But because of various reasons like lack of training ,new technology literacy, financial targets, risk of failure etc., some banks are still following the traditional ways of marketing and another hand some are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. Understanding on Customer Relationship Management is always a concern among the service providers especially banks. Banks makes their own way of managing their relationships new and existing customers. The aim of this paper is to examine the Customer Relationship Management as a new methodology looks forward to identify and attract consumers through the process of developing relationships (business - customer). The methodology of the CRM aims to maintain customer satisfaction and increase consumer loyalty. The purpose of this paper is to study the importance of CRM systems and in-depth knowledge of methods and management techniques customer relationships.
The main issue of this study is that CRM has become a multi-faceted and complex phenomenon that is ridden by various factors. Due to this complexity, a number of different variables have been used to measure CRM which investigated by several prior studies. However, most of businesses need to know and look at the particular measures and dimensions of the CRM that have a significant impact on customer satisfaction and loyalty, which would enrich the business' performance, especially with the increase in competition as well as lack of differentiation in providing a service. This paper aimed to review literature on CRM and to identify its impact on customer satisfaction and customer loyalty. The studies are analyzed on the basis of some general characteristics and variables that significantly enhance CRM and its influence on customer satisfaction and customer loyalty. For this purpose, we investigate the existing literature on the impact of CRM on customer satisfaction and customer loyalty along with its spread among publications to identify the potential development in the field.
Relationship between Social bonds and Customer value in commercial Banks in K...inventionjournals
This study sought to empirically examine the influence of social bonds on customer value in commercial banks in Kenya. The social bonds examined in this study are communication with customers (CC), creation of friendship (CF) and social support (SS). The study sample consists of 384 respondents with a response rate of 78.1 per cent. Data was analyzed by employing correlation and multiple regression analysis. The findings revealed that social bonds are positively associated with customer value in commercial banks in Kenya. The generalization of the findings is limited as the study focused only on a single industry in Kenya. Based on the findings, companies employing social bonds strategies should focus on improving the usefulness of the social bonds to customers by creating opportunities to strengthen social relationships. This study successfully extends the relationship marketing strategies in the context of customer value by incorporating communication with customers, creation of friendship and social support constructs. This extended relationship marketing model is developed to achieve the greater understanding of customer acceptance of social bonding strategy in Kenya’s commercial banks. In conclusion, the model in this study presents a considerable improvement in explanatory power.
Customer Relationship Management is human function than technology
implementation. Banks need to constantly orient their employees and
vendors towards never losing focus of the customers, technology can be
harnessed to unable the human aspect to function more effectively. A
successful relationship will be one that lowers the business cost, increase
the company revenue and retains profitable relationship, win situation for
the company business and its valuable assets and business customers. The
banking business is becoming more and more complex with the changes
emerging from the liberalisation and globalisation. For new banks,
customer creation is important but established bank retention is much
more necessary with cost effective mechanism. The big benefit of customer
relationship management is the visibility of everything relating to
customers going on in your company. If an organization wants to provide
the better service to customers, it has to be able to manage everything
from complaints to sale opportunities. The core theme of all customer
relationship management and relationship marketing perspectives is to
focus on cooperative, collaborative relationship between the firm and its
customers and look after the marketing factors. Through this paper
researcher want to show the significance of customer relationship
management and also made as effort to explore the benefits of this concept
to banking industry.
Keywords: Customer Relationship Management, Efficiency, Customer Expectation.
Customer relationship managment in banking industryTapasya123
Customer Relationship Management is human function than technology
implementation. Banks need to constantly orient their employees and
vendors towards never losing focus of the customers, technology can be
harnessed to unable the human aspect to function more effectively. A
successful relationship will be one that lowers the business cost, increase
the company revenue and retains profitable relationship, win situation for
the company business and its valuable assets and business customers. The
banking business is becoming more and more complex with the changes
emerging from the liberalisation and globalisation. For new banks,
customer creation is important but established bank retention is much
more necessary with cost effective mechanism. The big benefit of customer
relationship management is the visibility of everything relating to
customers going on in your company. If an organization wants to provide
the better service to customers, it has to be able to manage everything
from complaints to sale opportunities. The core theme of all customer
relationship management and relationship marketing perspectives is to
focus on cooperative, collaborative relationship between the firm and its
customers and look after the marketing factors. Through this paper
researcher want to show the significance of customer relationship
management and also made as effort to explore the benefits of this concept
to banking industry.
1. Please detail your efforts to extend banking products and services to wider parts of the community.
2. Banks face many challenges – new regulations, more competition, slowing growth in some markets. Please describe your strategy for keeping your bank’s returns high?
3. Why you choose Banking Career?
4. Loan against Share. Should Banking Industry Promote or Not?
5. What particular actions provided your bank with significant success or market advantage over the past 12-15 months?
A STUDY WITH SPECIAL REFERENCE TO BANKING INDUSTRY IN INDIAIAEME Publication
Customer Relationship Management (CRM) has emerged as a popular business strategy in today’s competitive environment. It is a discipline which enables the business to identify and target their most profitable customers. CRM involves new and advance marketing strategies which not only retain the existing customers but also acquire new customers. It has been invented as a unique technique capable of remarkable changes in total output of companies. CRM in financial services industry is a cyclical process which starts with definition of customer expectations which are difficult to manage but are often the cause of dissonance which results in loss of existing customer base.
A STUDY ON EFFECTIVE BRAND PROMOTIONAL STRATEGIES INFLUENCING CUSTOMERSIAEME Publication
The paper aims to investigate the effectiveness of brand promotional strategies by Max retail, which influences the customers to purchase. Data set included use of and influence of outdoor and in-store promotional tools. These were investigated to determine impact and effect of the promotions. There is a good response about the hoardings kept in the store and POP for the internal communications and promotions and through this research study, many of the customers have shown their neutral opinion about the contests/sweepstakes/games. One third of the respondents are respond ed that the paper advertisement helps them to know the offers of Max.
International Journal of Computational Engineering Research(IJCER)ijceronline
International Journal of Computational Engineering Research(IJCER) is an intentional online Journal in English monthly publishing journal. This Journal publish original research work that contributes significantly to further the scientific knowledge in engineering and Technology.
Strategic Management has been changed over the years in terms of its scope and
application. With the rise of intense business competition, companies adopt various strategies for overshadowing their competitor(s). In the contemporary business world, evaluating and understanding competitors' business is thus a key challenge for business firms. With this motivation, this report is intended to explore the business strategies Jamuna Bank Ltd. follows to accomplish its mission and gain competitive advantages over competitors. The study reveals some useful findings: first, the applicability of CORE as an analytical framework of strategic analysis; second, the overall context of the industry; third and most importantly, performance indicators of the Bank.
Banking Consumers: 5 Core Segments and How to Reach ThemCognizant
How can financial institutions grow profitable customer relationships? Given the twin pressures of recent regulatory changes coupled with a lower rate environment, our research sought to answer the central question.
Customer is a king and Customers are the mainly focused in making new marketing strategy. In the banking field a unique relationship exists between the customers and the bank. But because of various reasons like lack of training ,new technology literacy, financial targets, risk of failure etc., some banks are still following the traditional ways of marketing and another hand some are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. Understanding on Customer Relationship Management is always a concern among the service providers especially banks. Banks makes their own way of managing their relationships new and existing customers. The aim of this paper is to examine the Customer Relationship Management as a new methodology looks forward to identify and attract consumers through the process of developing relationships (business - customer). The methodology of the CRM aims to maintain customer satisfaction and increase consumer loyalty. The purpose of this paper is to study the importance of CRM systems and in-depth knowledge of methods and management techniques customer relationships.
The main issue of this study is that CRM has become a multi-faceted and complex phenomenon that is ridden by various factors. Due to this complexity, a number of different variables have been used to measure CRM which investigated by several prior studies. However, most of businesses need to know and look at the particular measures and dimensions of the CRM that have a significant impact on customer satisfaction and loyalty, which would enrich the business' performance, especially with the increase in competition as well as lack of differentiation in providing a service. This paper aimed to review literature on CRM and to identify its impact on customer satisfaction and customer loyalty. The studies are analyzed on the basis of some general characteristics and variables that significantly enhance CRM and its influence on customer satisfaction and customer loyalty. For this purpose, we investigate the existing literature on the impact of CRM on customer satisfaction and customer loyalty along with its spread among publications to identify the potential development in the field.
Relationship between Social bonds and Customer value in commercial Banks in K...inventionjournals
This study sought to empirically examine the influence of social bonds on customer value in commercial banks in Kenya. The social bonds examined in this study are communication with customers (CC), creation of friendship (CF) and social support (SS). The study sample consists of 384 respondents with a response rate of 78.1 per cent. Data was analyzed by employing correlation and multiple regression analysis. The findings revealed that social bonds are positively associated with customer value in commercial banks in Kenya. The generalization of the findings is limited as the study focused only on a single industry in Kenya. Based on the findings, companies employing social bonds strategies should focus on improving the usefulness of the social bonds to customers by creating opportunities to strengthen social relationships. This study successfully extends the relationship marketing strategies in the context of customer value by incorporating communication with customers, creation of friendship and social support constructs. This extended relationship marketing model is developed to achieve the greater understanding of customer acceptance of social bonding strategy in Kenya’s commercial banks. In conclusion, the model in this study presents a considerable improvement in explanatory power.
Abstract: Customer satisfaction is a key factor in any organization; banks are looking to earn a stable income to our loyal customers. For many years the emergence of the marketing concept and are it to attract customer in the past. The organization can be found and the principle of marketing are not met concern is not attracting customers. The competitiveness of financial markets and financial institution and development banks, and credit, marketing and implementation of marketing strategies to attract customer. The Role of marketing in the banking industry continues to change. For many years the primary focus of bank marketing was public relations. Then the focus shifted to advertising and sales promotion. That was followed by focus on the development of a sales culture.
“Marketing Approach of Banks” A comparative study of J&K bank and other banksMudasir Muzafar
Marketing Approach to Banking Services:
• Identifying the customer’s financial needs and wants.
• Develop appropriate banking products and services to meet customer’s needs.
• Determine the prices for the products/services developed.
• Advertise and promote the product to existing and potential customer of financial services.
• Set up suitable distribution channels and bank branches.
• Forecasting and research of future market needs.
Building Character Knowledge for Panin Bank Personal Banker Southeast Sulawes...theijes
This research was conducted by qualitative analysis method using Miles and Huberman method. The problems raised were (1) How the efforts to build character knowledge for Panin Bank Personal Banker (PB) Southeast Sulawesi Area mainly the knowledge on the products to collect the community funding and service; (2) How the character knowledge built for Personal banker (PB) can be a strategic knowledge for Panin Bank Southeast Sulawesi Area. The results were that building the knowledge would not be sufficient without completing by building the strong character for Personal Banker, the character which should be set were excellence, professionalism and ethics which these three character indicators could reflect the knowledge as the behavior in daily works for a Personal Banker. This character Knowledge can be applied in a strategic knowledge consisting of 6 (six) components, namely unique, pragmatic or useful, generating value, difficult to imitate or substitute, dynamic and based on intense learning process.
MKTG320-1404A-01Quesadra D. GoodrumClass Discussion Phase .docxannandleola
MKTG320-1404A-01
Quesadra D. Goodrum
Class Discussion Phase 3
Advertising and Public Relations
Colorado Technical University
Instructor: Heather Weller
10/13/2014
Situation Analysis
A situation analysis is the evaluation of an organization’s performance. It involves the use of strategies which are for accessing how an organization is or will perform. In analyzing performance, internal and external factors are to be considered. Internal factors include strengths and weaknesses. These two affect the performance of an organization from within. External factors include opportunities and threats which affect a business from the outside environment. In combining the analysis of strengths, weakness, opportunities and treats will give the SWOT Analysis criterion which is to be used to access the performance of any organization.
A bank can have its’ SWOT analysis to be able to strategize on it marketing activities on what to be done for excellent performance. For example;
Strengths
Weaknesses
Wide range of banking services
Customer loyalty and relationships
High lending rates
Lack of a clearly formulated marketing strategy
Opportunities
Threats
Technology advancing paperless transactions present.
Changing customer services
Competition from other existing banks
High taxation from the government.
SWOT Analysis for National Bank
From the SWOT analysis above it is clear that strengths and opportunities have a positive impact while weaknesses and threats have a negative impact on the organization.
Banking Trends
Banking trends are the changes which are occurring over time in the banking sector. Trends give the indication on what needs be done so as to fit in the population successfully and offer services as always. Some of such trends in the banking sector include:
· Branch optimization: With increased customer demands the current bank branches are not in a position to curb the demand of the rapid increasing number of customers. The bank is looking forward to make its branches more efficient in delivering all the services to its customers at an easier way without referring them to the central bank. This will encourage more and more customers to bank within their local branches.
· Driving digital: the current strategies involve traditional approaches but there is the need to improvise on digital approach, online campaigns, so as to serve the online market too. Combination of the two will be very beneficial in the banking sector since the information will cover a wider range of customers both on streets and online.
Such trends if implemented will be of importance to the bank in achieving its long-term strategic marketing goals. These trends will help a bank be able to meet the demands of the customers. They will also enable the bank to earn more revenue.
Analysis of achievement
Involves what needs be done so as the goals set can be achieved successfully. It is setting a plan to facilitate the achievement of goals. In order to be able to serve many custom ...
Our study shows that BIDV, who became Best retail bank in Vietnam in recent years, has made very positive contributions to the overall achievements of the banking industry, need to clearly define the customers they want to focus on so that they can offer specific products that suit the needs of customers. Determining the right target audience also helps banks in conducting accurate pricing of products corresponding to the market segments they are brought to users, as well as distribution channels, distribute products and forms of marketing advertising to achieve the highest efficiency. We also suggest that BIDV bank focuses more on marketing 4P and 7P strategy in new context.
Last but not the least, By data collection method through statistics, analysis, synthesis, comparison, quantitative analysis to generate qualitative comments and discussion; using econometric method to perform regression equation and evaluate quantitative results, the article analyzed and evaluated the impacts of many macroeconomic factors on BIDV stock price and we would suggest the government, Ministry of Finance and State Bank of Vietnam consider to control inflation more rationally. And increasing cost and Rf little bit to increase stock price as well.
2. security with the bank. The bank can advance loan
to their customers in three ways: overdrafts,
money at call, discounting bills of exchange.
Marketing Approach to Banking Services
· Identifying the customer‟s financial needs and
wants.
· Develop appropriate banking products and
services to meet customer‟s needs.
· Determine the prices for the products/services
developed.
· Advertise and promote the product to existing
and potential customer of financial services.
· Set up suitable distribution channels and bank
branches.
· Forecasting and research of future market needs.
From the above discussion of bank marketing, it can be understood that the existence of the bank has
little value without the existence of the customer. The key task of the bank is not only to create and
win more and more customers but also to retain them through effective customer service. Customers
are attracted through promises and are retained through satisfaction of expectations, needs and wants.
Marketing as related to banking is to define an appropriate promise to a customer through a range of
services (products) and also to ensure effective delivery through satisfaction. The actual satisfaction
delivered to a customer depends upon how the customer is interacted with. It goes on to emphasise
that every employee from the topmost executive to the junior most employee of the bank is market.
Due to the introduction of LPG policy and IT Act of 2000 the scope of the market has enhanced.
Customer‟s expectations are high from the service industry like a banking industry. Only those banks
will survive who will provide efficient and customer desired services.
Scheme of the paper
The paper has been divided into six sections. After the brief introduction, second section reviews
some studies related to the present theme. Third section highlights objectives and research
methodology. Fourth section discusses results. Section five reflects strategies and last section
concludes the paper.
II. Review of related study
Dwivedi, R. (2007) explained that finance functions are important but not as important as the
marketing functions. Friction between the marketing and finance functions would be detrimental to
Bank Marketing is
the aggregate
function directed at
providing service to
satisfy customer’s
financial needs and
wants, more
effectively than the
competition keeping
in view the
organizational
3. objective.
JM International Journal of Management Research (JMIJMR)
37
the smooth development and functioning of any business organization. Finance objectives like value
maximization to shareholders are integral parts of any new strategy adopted by the organization. But
this objective seems to have been lost amidst the flurry of marketing activities focusing on market
share. Conscious efforts must be taken to avoid the missing core objective and for sales growth.
Dixit, V.C. (2004) concludes that for successful marketing and to make it more effective, identify the
customer needs by way of designing new products to suit the customers. The staff should be wellequipped
with adequate knowledge to fulfill the customer‟s needs. We should adopt long-term
strategies to convert the entire organization into a customer-oriented one.
Gupta, O. (1997) described the emergence of services sector and banks experience in service
marketing. He emphasized customer satisfaction as the key to success and suggested a few measures
to meet the needs and expectations of the customers.
Gurumurthy, N. (2004) asserts that technology today is claimed to be a „leveler‟ and not a
„differentiator‟. After the „wow‟ feelings die down, technology would become a must for most clients.
Banking products can be easily copied and replicated by competitors unlike manufactured products. It
is also not a viable model for marketers to compete on price. The solution, therefore, would lie in
effective application of marketing strategies.
Jain, A. (2007) described that marketer has to know that each and every country is having various
marketing environment. Comparatively, it has to be very clear that the international marketer is bound
to hold on the reorganization that every marketing environment differs from place to place as well as
nation to nation than that of the same country state. It is also evident from the study that the global
business transactions have to be sound planned and objectives oriented in nature.
Malik (1996) explained the importance of human capital for successful banking. He described the
various aspects of human resources development in banks. He observed that skill level of a significant
segment of the workforce in Indian banks was not up to standard and they opined that banks seeking
major performance improvements had no option but to overcome these obstacles speedily.
Patnaik, U.C. and Chhatoi, B. (2006) assess the marketing efforts of the Staten Bank of India, which
enjoy the status of premier bank in India. He also concludes that banks have a wide network of
branches for delivery of products. It has taken up some measures to improve the quality of its
employees and customer service at branches. But, its pricing are wilting under competition without
any regard to costs and it is yet to give due emphasis to its promotional measures.
Sreedhar (1991) have dealt with marketing in commercial banks. They have emphasized motivation
research, marketing research and promotional aspects in marketing of services and suggested to
improve the marketing strategies to cope with the changing environment.
Objectives, Research Methodology, Database
Objectives
· To study and analyze the marketing developments regarding products and services in various
bank groups.
· To suggest some strategies for the enhancement of bank marketing.
Research Methodology
Research Design
Marketing has suddenly become a buzzword in the banking sector. Customer has suddenly moved to
the centre-stage and he has now a choice. How do banks then attract a customer to use their product
and services? One has to reckon the fact that the old loyalty can no longer be taken for granted. Banks
have to make efforts to retain the existing customers and also use strategies to attract new customers
to their fold.
Sample Design
The universe of the study is Indian banking industry. The Indian banking industry has been divided
4. into three major bank groups.
JM ACADEMY OF IT & MANAGEMENT
38
· Public Sector Bank Group – G-I (28)
· Private Sector Bank Group – G-II (28)
· Foreign Bank Group – G-III (29)
Parameters of Study
· Nature of competition in the banking industry pre and post 1993
· Performance parameters of public, private sector and foreign bank group
i. Deposits
ii. Advances
iii. Interest Income
iv. Other Income
v. Operating Profit
All the parameters have been analyzed for the period 1993 and 2007
Growth rate is measured with the help of following formula
Growth rate = Yt-Yt-1
--------------
Yt-1
Yt= Current Year, yt-1=Base Year
Database
· Report on Trend and Progress of Banking in India 1993 and 2007 RBI, Mumbai
Results and discussion
Nature of competition in the banking industry pre and post 1993
A glance at the table 1 reveals that there is a lot of difference in the nature of competition in the
banking industry before and after banking reforms. Many new products have been introduced. Now
all the work is done by technological tools. Many e-delivery channels like ATM, credit card, Mbanking,
Tele-banking, I-banking have come into existence. Now banks take profit into consideration
rather than price. Customer was slave to the bank before 1993 but now he has become the king of the
bank. Customer can get feedback as per his own wish.
Table 1: Nature of Competition in the Banking Industry Pre and Post 1993
Indicator Pre-1993 Post-1993
Customer Service Mandated by committee reports and law Consciously practiced as a way of banking
Customer feedback Done based on regulator‟s guideline
complaint/suggestion boxes symbolized
this
Willingly attempted
Product innovation Minor variations of vanilla products New products with value additions
Tools Manual Technology driven
Delivery channel Branch More alternate delivery channels like ATMs,
phone banking, internet banking, mobile
banking, DSAs
Pricing Price=cost plus profit Profit=price-minus cost
Orientation Inward looking Outward looking
Status of the
consumer
Slave to the bank King because more bankers chasing him
Branch ambience Resembled erstwhile government offices Aims to simulate supermarket buying
experience
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Performance parameters of public, private sector and foreign bank group
5. Table 2 reflects the marketing of services by the Indian banks during reform period and after reform
period. It is clear from table that all the parameters have shown the remarkable performance after the
banking reforms. But public sector banks lags behind the private sector and foreign banks. The gains
of private sector banks are more in terms of deposits, advances and operating profit. Private sector
banks and foreign banks are growing fast than the public sector banks. Thus the table implies that
private sector and foreign banks are more efficient in the marketing of their products and services.
Table 2: Performance Parameters of Public, Private Sector and Foreign Bank Group
Rs. in Crore
Parameters
G-I G-II G-III
1993 2007 Growth
%
1993 2007 Growth
%
1993 2007 Growth
%
Deposits 263254 19,94,199.57 676 15445 551,97.07 3474 20875 1,50,793.58 622
Advances 153880 14,40,122.88 836 8012 4,14,754.81 5077 10433 1,26,338.57 1111
Interest Income 31885 1,68,107.66 427 1677 51144.55 2949 3628 18,018.92 396
Other Income 3958 20,871.65 428 209 11120.66 5220 310 6,937.14 2137
Operating Profit 3134 42,268.16 1248 233 14048.58 5930 580 9,599.81 1555
Source: Report on Trend and Progress of Banking in India 1993 and 2007 RBI, Mumbai
Challenges of bank marketing
· Technology
Marketing by private sector banks and foreign banks is more effective than public sector banks
because these banks are IT oriented. Private sector banks and foreign banks are attracting more
customers by providing e-services. Thus, technology has become a challenge before the public sector
banks.
· Untrained Staff
Often it happens that when a prospective customer approaches the branch, the employees seem to
have very little knowledge about the scheme. This reflects an ugly picture of our bank‟s image. Banks
are not losing one prospective customer but 10 more customers who would be touch of this man.
Attitude of the employees towards customers is also not very well. Thus, it is a need of time to
reorient the staff.
· Rural Marketing
This is a big challenge before the Indian banks to enhance rural marketing to increase their customers.
Banks should open their branches not only in the urban and semi-urban areas but also in the rural
areas.
· Trust of Customers
Marketing can be enhanced only by increasing the customers. Customers can be increased or attracted
only by winning the trust of the customers.
· Customer Awareness
Customer awareness is also a challenge before the banks. Bank can market their products and services
by giving the proper knowledge about the product to customer or by awarding the customer about the
products. Bank should literate the customers.
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Strategies for the enhancement of bank marketing
In the fierce competitive market, needs of customer keep changing. Hence, our marketing strategy
must be dynamic and flexible to meet the changing scenario. Here are steps that form successful and
effective marketing strategy for bank products.
· Emphasis on Deposits
6. Emphasis, though in a discrete manner, should be given to mobilize more of term deposits as they are
more profitable for the bank in comparison to demand. Introduction of products comparable to “Kisan
Vikas Patra” of post office and product with the facility of tax
rebate under section 88 of Income Tax Act will of much help
in this regard.
· Form a Saleable Product Scheme
Bank should form a scheme that meets the needs of customers.
A bunch of such schemes can also form a product. A bank
product may include deposit scheme, an account offering more
flexibilities, technically sound banking, tele/mobile/net
banking, an innovative scheme targeted to special group of
customers like children, females, old aged persons,
businessman etc. In short, a bank product may consist of
anything that you offer to customers.
· Effective Branding
Man is a bundle of sentiments and emotions. This can
effectively be helpful in branding our products. Considering
the features of products and target group of customers, the
product can be effectively branded so as to sound it catchy and
appealing. Some proven examples are Apna Ghar, Dhan
Laxmi, Kuber, Flexi Deposit, Smart Kid, Sapney, Vidya etc.
The branding should be done in such a way that the brand name must attract the attention of
customers. It should be easy to remember. The target group and the silent feature of the product
should resemble brand name. This will help a lot in making the brand successful. All employees and
all our campaigns should refer the product by its brand name only so that to strike the same in the
customer‟s mind.
· Products for Women
The national perspective plan for women states that 94 pc of women workers are engaged in the
unorganized sector and 83 pc of these in agriculture and allied activities like dairy, animal husbandry,
sericulture, handloom, handcrafts and forestry. Banks should do something to improve their access to
credit which they require.
· Customer Awareness
There is a need to educate the customers on bank products. Efforts should be made to widen and
deepen the process of information flow for the benefit and education of Indian customers. Today, the
customers do not have any idea as to how much time is required for any type of banking service. The
rural customers are not aware for what purpose the loans are available and how they can be availed.
Customers do not know the complete rules, regulations and procedures of the bank and bankers
preserve them for themselves and do not take interest in educating the customers. It is a need to
educate the customers from the grassroots of banking. It is time that each bank branch takes steps to
educate the customers on all banking function, which will facilitate growth of banking on healthy
lines both qualitatively and quantitatively.
Efforts should be
made to widen and
deepen the process
of information flow
for the benefit and
education of Indian
customers. There is
7. a need to educate
the customers on
bank products.
JM International Journal of Man