Marketing in Banking Sector

1. Marketing in Banking Sector

2. BARTER SYSTEM Barter is direct exchange of commodity for commodity. Disadvantages:
Lack of Double Coincidence of Wants. Lack of Divisibility
3. Money is anything that can serve as a medium of exchange and has general acceptability,
measure of value and store of value. Commodity Money Metallic Money Paper Money
Bank or Credit Money
4. An institution which receives funds from the Control the public and supply of gives loans and
Money and advances to Credit those who needs it. The Banks can With the Aim of create Credit
making Profit, i.e., Creation of it is regarded as Additional a commercial Money for institution.
Lending.
5. The First Bank in India, called „The General Bank of India (1786)‟. The East India
Company established „The Bank of Bengal (1809)‟. The next bank was „Bank of Hindustan
(1870)‟. Allahabad Bank (1865), was the first Bank, completely run by Indians. Punjab
National Bank Ltd. set up in 1894. „Reserve Bank of India‟ in April 1, 1935.
6. Capital Innovations Formation Finance for Priority Sectors. Provision for Medium and Long
term Monetization Finance
7. Private Sector Regional Rural State/Central Banks Commercial Co-operative Private bank
Banks Non-Banking Finance Primary Credit Public Sector Companies Societies (NBFCs)Central
Bank (RBI) Foreign Indian Financial Institutions Term Financial Institutions State Finance
Corporations (SFCs)
8. RBI SEAL RBI HEADQUARTERS MUMBAI, MAHARASTRA
9. Headquarters Mumbai, Maharashtra Established 1 April 1935 Governor Dr Duwuri Subbarao
Currency Indian rupee Code INR Reserves US$30,210 crore (US$302.1 billion) Website
http://www.rbi.org.inBase borrowing rate 8.00%
10. It is India’s central banking institution Controls the monetary policy of India Bank of issue
Regulator and supervisor of the financial system Issuer of currency Banker of Banks Detection
Of Fake currency
11. “ 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.”
12. AIM- To create and win more and more customers and to retain them through effective
customer service. The existence of the bank has no value without the existence of the customer.
Appropriate promise to a customer through a range of services (products) and also to ensure
effective delivery through satisfaction is important.
13. Identifying the most profitable markets now and in future. Assessing the present and future
needs of customer’s .Setting business development goals and making plans to meet them.
Managing the various services and promoting them. Adapting to a changing environment in
Market.
14. Bank which are not Designed after facing severe taking into account competition could
Design new product the STRENGTHS think of “Market range for their and Development” by
customers of various WEAKNESSES of offering the existing segments. The organization
Services to new customers.
15. Traditional Internal Interactive external marketing.
16. consists of 4 P’s marketing mix Promotion Product 4 Price P’s Place
17. 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.
18. Make Develop Estimate marketing Calculate marketing the demand mix cost strategy curve
Decisions.
19. 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.
20. Advertising Publicity Sales Promotion Personal Selling Push and Pull Strategies
21. Quality Human resource can be a point of differentiation Employees should also be treated as
internal customers, and sort of marketing mix should be followed. It involves the people (5th P)
of the bank i.e. the employees.
22. 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:*Process P) (6 th*Physical evidence (7 th P)
23. Refers to the systems used to assist the organization in delivering the service. Aids to the
promotion of customer satisfaction It involves:1. Speeding delivery of services2. Reducing the
paper work3. Standardization of procedures4. Customization as per individual demand simplicity
etc.
24. Referral services Direct mailing Offering items having your brand identity Using the media
Getting celebrities to endorse the product or service. Sponsoring events Using permission-based
Marketing
25. Full Form :-Industrial Credit Largest private Second largest Largest issuer of and Investment
sector bank in overall in terms credit cards in Corporation of market of assets. India. India Bank
capitalization. (ICICI)
26. Product Pricing Place Promotion Process Physical Evidence People
27. Senior citizen services: Demand Fixed services Deposits: Mobile Loan banking Product
Roaming Card current Investment Recurring deposit Saving account:
28. 1. Pricing Decisions related to interest, fee or commission.2. RBI and IBA3. Raising Number
of Customers
29. Services are sold through branches Making Promised Services available to the ultimate users.
Branches OF ICICI:1900 in India and 33 in Mumbai.
30. Advertising - Television, radio, movies, theatres Print Media- Hoardings, newspaper,
magazines Publicity- Road shows, campus visits, Sponsorship Sales Promotion- Gifts, discount
and commission, incentives, etc. Telemarketing- ICICI one source Call center (Mind Space)
31. Standardization- ICICI bank has got standardized procedures to get typical transactions.
Customization- Specialty counters at each branch to deal with customers of a particular scheme.
Simplicity- Separate counters exist with clear indication. Customer Involvement- Money matters
and signature.
32. All people directly or indirectly involved in the consumption of banking services. Workers,
Employees, Management and other Consumers Employees of a Bank represents the organization
to its customers. Internal Marketing
33. Financial Reports- The Company’s financial reports are issued to the customers to emphasis
or credibility Tangibles- Pens, Writing Pads to the internal customers. Passbook and Cheque
books to the customers. Punch lines- “Hum Hai Naa” Employee’s Dress Code- ICICI bank
follows a dress code for their internal customers
34. Various Banks and Financial Institutions are present today in the market squeezing the
Market competition in Banking Sector. This is the biggest threat for Banks. Hence to survive
in the market, Banks must have:- 1. Strong Marketing Team Support 2. Innovative Marketing
Practices Hence, Bank Marketing has become the necessity in today’s World