marketing of banking services-group 1

8/4/2019 Marketing of Banking Services-group 1

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MARKETING OF

BANKING SERVICES

Abhishek IAditi Gowda I Amrutha I Anil A M I Anju A M

Group I


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In the last decade, the sector witnessed manypositive developments the growth is well reflectedthrough parameters including profitability, annual

credit growth, and decline in non-performing assets(NPAs).

India has the potential to become the third largest

banking sector by 2050 after China and US,according to a PricewaterhouseCoopers (PwC)report titled Banking In 2050.

INTRODUCTION TO BANKING SECTOR (INDIA)CONTD.

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MERGING MARKETING & BANKINGBefore the mid 1950's the banks had no

understanding or regard for marketing

Marketing approach in banking sector had taken

significance after 1950 in western countries and inthe late 1950 onwards in India.

Banks had started to perform marketing andplanning techniques in banking in order to be able

to offer their new services efficiently.

Marketing scope in banking sector should beconsidered under the service marketing

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Bank marketing does not only include service selling ofthe bank but also is the function which gets personalityand image for bank on its customers mind.

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MERGING MARKETING & BANKING(CONTD.)


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REASONS FOR IMPORTANCE OF MARKETING INBANKINGChange in demographic structure

Intense competition in financial service

sectorBanks wish for increasing profit

To protect and develop their market shares

Like all other services it becomes importantto market in order to tangibilize complexityof banking services.

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MARKETING MIX INBANKING SECTOR

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Banking services are intangible.

Banking services are about the money in

different types and attributes like lending,

depositing and transferring procedures.

These intangible services are shaped in

contracts.

PRODUCT

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PRICEBanks have to estimate the prices of their

services offered.

The prices in banking have names likeinterest, commission and expenses.

Traditionally, banks use three methodscalled cost-plus, transaction volume baseand challenging leader in pricing of theirservices.

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DISTRIBUTION/PLACEThe place where the banking products or service

are delivered is an important element in bank

marketing.

Extension counters/satellite offices

Special counters/specialized branches

ATM/Tele banking/home banking

Strategic alliances

Mobile offices

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PROMOTIONWhen bank comes out with a new product, it

makes its target customer segment aware of it

only through marketing promotion. It consists:Personal selling

Advertising

Public relationsSelling promotional tools

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PROCESSThe process is a crucial element which gives value

to the buyer and an element of uniqueness.

It provides competitive advantage to the bank.

The importance of process in bank marketingstrategy is based on 'value chain concept' given byMichael Porter. The concept basically stressesclose attention to all the organizational activitieswhich go into marketing the final product to thecustomer.

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PEOPLE Like any other service industry, banking is a labor

intensive industry.

Each employee in a bank is both a recipient and

provider of service. Unless each employeeextends support to his colleagues and alsoreceives support from them, workflow will getobstructed and the victim will be the customer.

In other words to satisfy a customer, people whoparticipate this must be right and apt ones.

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PHYSICAL EVIDENCE

Physical evidence is the strategic tool for the bank marketer.Banking products are intangible. Tangibilising the intangiblecommodity is a major challenge to the bank marketer. One amongthe important methods is the upkeep of branch premises and interiordecor. This is relevant not only from the point of view of physical

evidence but also for tangibilisation strategy. Another strategy isimaginative designing of bank stationery used by customers.Product packaging could be another tangibiIisation strategy andmarketers called it a s a separate 'P' of marketing strategy.Packaging in banking products could take many ways for instance

an attractively designed product brochure or a catchy brand namewhich a customer can easily understand or a pictorial design whichcan represent a particular product

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RECENT TRENDS

Market focus is shifting from mass bankingproducts to class banking with introduction ofvalue added and customized products.

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REAL WORLD EXAMPLESCredit card companies such as Citibank, whichrecently tapped the high networth clientele (FirstCitizen shoppers) list of Shoppers' Stop to issue

complimentary credit cards as virtual new year'sgift to them, down to astrology portals such asGaneshaspeaks.com which in a tie-up withHutchison India offered astrological services to all

its subscribers.

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HDFCMr Ajay Kelkar, Vice-President and Head,Marketing HDFC Bank said, "We are looking atpositioning HDFC as a one-stop financial

supermarket and the objective of the promos is notjust acquisition of new customers, but we are alsolooking at creating product awareness, enhancingusage and also providing value-adds to our

customers to reward them for their faith andloyalty."

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HDFC(CONTD.)He said that below-the-line promotions constitutea major part of the bank's overall marketingplans this year, and therefore, a large

percentage of the marketing budget is allocatedto promos. "These promotions are conductedbased on the results thrown up by data analysisand data mining. Therefore, they are intended to

have maximum impact on our target audience."

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ICICI Leading financial institutions like ICICI have begun to adopt

similar marketing strategy. When India's leading customizedjewellery designer, Ms Poonam Soni, decided to host a majorshow in Mumbai for unveiling her new collection called "Woven

Hues" for a select audience, she found the ICICI Bank teammore than eager to be associated with her brand SignatureLine.

The ICICI Bank's target was the high networth individuals whoattended the show in Mumbai on July 10. Ms Poonam Soni said,

"ICICI definitely got their share of branding without interferingwith our logistics. Apart from the fact that my clientele is veryniche, the presence of former Miss Universe Lara Dutta and lotsof celebrities aptly met their marketing requirement."

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CONCLUSIONToday, marketing services are of greatemphasis on both customer and bank.The quality and quantity of banking

products increased and a result of this,recent developments in marketingthoughts in services such as internal

marketing, network marketing, data basemarketing and relationship marketingbecame more favorable practices.

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Successful marketing in a bank calls forcommitment at all levels to the task. Achievinghigher business standards and operationalperformance through marketing of banking servicesshould be one of the directional goals of theorganization.

In conclusion, it may be understood that the

success of marketing of banking services dependson how the organization properly blends themarketing concepts with the right approachrequired to penetrate into each market segment.

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CONCLUSION


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THANK YOU

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marketing of banking services-group 1

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