service mkting ppt

8/8/2019 Service Mkting Ppt

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PRESENTED BY:

Sandeep

Amit

SUBMITTED TO:-

Ms. Poonam Sharma


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After studying this, you will come to know:-

` The marketing approach in relation to some

select service in India

` The application of marketing concepts andprinciples in service sector companies


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` A Service is an act or performance offered by one

party to another. Although the process may be tied

to a physical product, the performance is

transistory,often intangible in nature, and does notresult in ownership of any of the factor of

production.

` A service is an economic activity that creates

value and provides benefit for customers atspecific times.


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` Transfer of Ownership

` Nature of Perishable and inventoried

` Tangible VS. Intangible

` Participation in production process` Greater variability in input and output

` Difficulty in evaluation

` Time factor importance

` Distribution channel take different forms


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The major events that have shaped the modern financeindustry are:

` The Great Depression (1929): The Great Depressionoriginated in the US with the Wall Street crash in October1929. The effects of the depression spread across the

world, especially in the heavy industries. Capitalrequirements regulation, financial industry oversights andthe insurance of deposit accounts sprang out of thistumultuous period.

` Black Monday (1987): On October 19, the stock marketsacross the world witnessed a huge crash. This was thelargest one day decline in the stock market history. Thecrash started in Hong Kong, spreading to Europe and theUS. Analysts blamed computer trading systems for magnifying the losses.


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Asian Financial Crisis (1990s): The Asian Financial Crisis wastriggered by the collapse of Thai baht as the government of Thailanddecided to float the national currency.The nation had a huge foreign debt at that point, driving it to the verge

of bankruptcy. The crisis rippled across the whole of Southeast Asiaand has led to many emerging market countries to reduce debts andbuild up foreign currency reserves.

Stock Market Downturn (2002): Stock exchanges around the worldwitnessed a significant decline in March 2002. It was attributed to thebursting of the Dot-com Bubble, which saw major Internet companies

going bankrupt. Sub-prime Crisis (2007): Credit markets faced major crunch due to

large scale default on loans. It led to the Financial Crisis of 2008 2009 and resulted in the bankruptcy, fire-sale acquisition andgovernment bailouts of finance industry giants such as LehmanBrothers, Bear Stearns, AIG, Fannie Mae, Merrill Lynch, NorthernRock, Lloyds TSB, RBS and the entire banking system of Iceland. Theworld economy can expect reduced growth rates and tighter regulations as a result of this crisis.


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DEMAND DRIVER

` Potential Yield

` Risk rating

` Liquidity`Availability of

information

`Access to alternatives

SUPPLY DRIVER

` Money supply

` Interest rates

` Inflation` Economic conditions

` Government

regulations


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The State Bank of India is the largest sector commercial bank in country. It was established in1955.

The SBI over the year had not given adequate focuson mainly providing satisfaction to customers becauseof absence of competition but after changingcompetitive scenario in 1991,forced public sector banks to focus on more customer satisfaction.

So Market Orientation is become necessary toachieve organizational objectives. Considering

these facts, the MARKETING MIX approach is usedto analyze the marketing of banking service.


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` The tools available to a business to gain the

reaction it is seeking from its target market in

relation to its marketing objectives

` 7Ps Price, Product, Promotion, Place, People,Process, Physical Environment

` Traditional 4Ps extended to encompass growth

of service industry


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` Methods used toimprove/differentiatethe product and increasesales or target sales moreeffectively to gain

a competitive advantage e.g. Extension strategies Specialised versions New editions Improvements real or

otherwise!

Changed packaging Technology, etc.

Image copyright: www.freeimages.co.uk


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(a)Product policy and strategiesIt offers Various products to suit theneed of different clientele

The product mix of SBI having threeproduct lines

PRODUCT LINE 1:- DEPOSITS

PRODUCT LINE 2:- LOAN &

ADVANCESPRODUCT LINE 3:- AUXILIARY

SERVICES


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(b)Product planning and development(SbI)

It is done through:

` Market research-

Size of market

Market growth rate

Strength and weakness of competitorFeatures that affect buying pattern

` Customer suggestion

PROCESS

It takes place at centre levelDifferent department for product design, product

development and product execution


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(d) Product for specialized segmentIt has designed various products for the identify

specialized segments. The segments segmented forthe purpose are-

Some services:Personal banking Corporate bankingNRI banking Small scale industries

Gold banking Small Business bankingAgricultural banking Governed banking


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The otherspecialized services are-

` Portfolio management

` STEPS` Demat services

` ATM services

` Internet banking

` Safe deposit locker

` Forex

` Gift cheques


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` (c)Product deletion and addition

The length and breadth of product mix need to be

modified so as to make it suitable for the society.So in this concern SBI dropped as many as 14

products from its product mix during the last 10

years.

Ex. Money bank std scheme, star deposit scheme,-cash certificate scheme, state bank cards, big-buy

scheme etc.


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` Pricing Strategy

` Importance of:

knowing the market elasticity

keeping an eyeon rivals

Image copyright: www.freeimages.co.uk


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1.Pricing policy and strategies

in the Banking sector the prices are-(a)Interest rate for loan and deposits

(b)Services charges for various services

The price is accordance with the RBI guidelines

Price based attributes:-Term of loan/depositType of loan/deposit

Creditworthiness ofborrower

Tax treatment for bothparties

Demand, supply ofservices


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` Earlier the interest rate is settled by the market authorities

not by market forces. But in order to make banking sector

more competitive and market oriented, the RBI shifted it

from administered to free and flexible pricing system.

Four circumstances where price need to considered

1.When product is being introduced for first time

2.Effecting price changes

3.Price changes due to competition

4.Due to demand and supply


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` The means by which products and

services get from producer

to consumer and where they can beaccessed by the consumer

The more places to buy the product

and the easier it is made to buy it,the better for the business (and the

consumer?)


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The SBI follows-1 Direct marketing

2.Production and Distribution outlets

3.ATMs

4.Largest network of bank branches in rural area5.Implementation of system and technology in

-Accounting ledger modules

-customer account modules

-Internal account modules


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6.Provide necessary Infrastructure for setting

transaction through SWIFT7.Set up main offices in four metropolitan cities

to improving the Speed, Dependability, and Securityof communication network.

8.Twelve Satellite Disk antennae were installed in 11cities

9.SBI covered Remote Area Network also by IT

10.SBIdo their work full on computerization

11. In order to provide Value services, the bank launchpilot services at Bangalore,mumbai,nagpur.


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12.Tele-Banking facility also introduced by SBI

13.Model Branch- the selection of branches is a propermix of metropolitan,urban,semi-urban,and rural

branches all over country

14.Personalised branch network

15.Physical facility16.Branch Layout

17. Management Information System(MIS)


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` Strategies

to make the

consumer aware ofthe existence of a

product

or service

` NOT just advertising


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The SBI uses-

` Advertising-

Newspaper

Radio, Television

MagazineOutdoor advertising

Transit advertising

` Personal selling

` Websites- www.statebankindia.com

sbi.org.in\

` Promotional campaign


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` Customer Councils-The Bank organizes inter-

active session with customer

` Disposal of complaints

` Customer service committees

`

Community service banking` Customer feedback- SBI observe 15th of every

month as a Customer Day


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The Promotional measures are at three level:-

Central office- use advertising through news-paper,hoardings for customer catchment area

Local Head office-they focused on promotion activity incapital city where it is placed

Module(Regional office)-ad through brochure,

pamphlets, calendars and other leaflets directly fromthe Lho and from the central office

Attractive Slogans like-

Bank for excellence

State bank of India with you all the way

By Front line people- the employees offers choice,guides and assist customer in the purchase-decisionprocess.


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` People represent the business The image they present can be important

First contact often human what is the lasting imagethey provide to the customer?

Extent of training and knowledgeof the product/service concerned

Mission statement how relevant?

Do staff represent the desired culture

of the business?


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` How do people consume services?` What processes do they have to go through

to acquire the services?

` Where do they find the availability

of the service? Contact Reminders Registration Subscription

Form filling Degree of technology


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` The ambience, mood or physical presentation of

the environment Smart/shabby?

Trendy/retro/modern/old fashioned? Light/dark/bright/subdued?

Romantic/chic/loud?

Clean/dirty/unkempt/neat?

Music?

Smell?


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Blend of the mix depends upon:Marketing objectives Type of product

Target marketMarket structureRivals behaviourGlobal issues culture/religion, etc.Marketing position Product portfolio

y Product lifecycley Boston Matrix


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COMPANY

INTERNAL MARKETING External marketing

EMPLOYEES CUSTOMERS

INTERACTIVE MARKETING


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` The state bank of India comprises of officers,

clerks and subordinates. Advertisement for

recruitment are published in newspaper. There are

three channels through which officers are

recruited.

-Direct recruitment

-Promotions as trainees officers

-Promotion as junior management


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Banking is a concept that is to be communicated

effectively persuade customer.Advertising through Print media, electronic media,

hoardings and posters were taken up mainly to createawareness of the various policies offered

The co. depends largely on sales force for communication.the sales personnel approach potential buyers, explainvarious policies and their feature and make effort toconvince them.

Sales promotion and publicity are also effective.

Word-of-Mouth communication is useful The co. have have a wider distribution network and

systems in operation. Reliability and Credibility areassociated with co. So they are responsive to thecustomers. With all these, they can maintain the leader

status in the market.


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` Training in SBI

` Training Centre

` Support system

` Employee Benefits` Financial Benefits

` Welfare Facilities

` Perquisites

` Allowances


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` In banking services, most interaction take place b/w

customers and intermediaries.` Intermediaries are generally self-motivated to interact

with customers. Professional training on how tointeracts imparted to them. Therefore, Bankingservices are progressive in interactive marketing.

` With the change in scenario, the bank have to satisfythe customer. the study of customer problem,grievences and expectations from basis ofinteractive marketing

` So, the service personnel, including employees andagents

` Need to be oriented towards generating qualityinteractions when they meet customers.

service mkting ppt

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