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.

• 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

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

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

“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.”

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.

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.

Agricultural Sector1. Marginal2. 2 to 5 acres3. 5 to 10 acres4. 10 acres and above

Industrial Sector1. Tiny 2. Co-operative3. Small-sized4. Large- sized

Services Sector Household Sector1. Low Income2. Middle Income3. High Income

• Demat account

• Lockers

• Cash management

• Insurance product

• Loans

NEFT

Traditional external

marketing

Internal marketing

Interactive marketing

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, Demataccounts, online banking, mobile banking and many more.

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.

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.

Develop marketing

strategy

Make marketing

mix decisions

Estimate the

demand curve.

Calculate cost

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.

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.

Advertising

Publicity

Sales Promotion

Personal Selling

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

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 :

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 workstandardization of procedurescustomization as per individual demandsimplicity etc.

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.

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