MARKETING STRATEGIES OF BANK OF BARODA The Bank of Baroda was established in the year 1908 in Baroda.

Ever since its inception, the bank has been growing and expanding its branches successfully. At the turn of a century, the bank has its presence in 25 countries across the world. Bank of Baroda has progressively taken a step towards commitment and values by providing uncompromising standards of service to its customers, stakeholders, employees and the like. The initial capital invested was Rs. 10 Lakhs. The Maharaja was none other than Sayajirao Gaekwad who, with his visionary insight, planned the beginning of a reputed journey which over the years, came to be known as Bank of Baroda.

It is interesting to note that during the period of 1913 to 1917; almost 87 banks in India succumbed to a financial crisis. However, the Bank of Baroda survived the economic depression by dint of its financial integrity, business prudence and concern uncompromising concern about its customers and clients. This has transcended down to the present ages and has become the motto of the bank. 7Ps of Marketing of Bank of Baroda:

1. Products and Services: Bank of Baroda provides various banking products and services to its customers. They are as follows:

Retail Banking Rural/Agri Banking Wholesale Banking SME Banking Wealth Management Demat Product Enquiry Internet Banking NRI Remittances Baroda e-Trading

Interest Rates Deposit Products ATM / Debit Cards 2) Price: The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing policy of a bank is considered important for raising the number of customers vis--vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position.

The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning. This example evinces some of the charges that the customer has to pay for the services provided by the bank.

The pricing factor is very important because of the kind of competition that is prevailing today in the Indian market. However it is very important to understand that in the banking sector, the main pricing policy is concerned with the interest rate charged. This interest rate is however regulated by the RESERVE BANK OF INDIA and THE INDIAN BANKING ASSOCAITION. Any one particular bank or a group of banks does not regulate it. The interest rate charged cannot be higher than that decide by the RBI and the INDIAN BANKING ASSOCIATION.

3) Place:

The Bank of Baroda has good location across the country. Bank of Baroda has an extensive network of 3082 branches spanning the length and breadth of the country. There is a branch in the vicinity of everyone in need of a banking solution.

With a customer centric approach of being operational 24 hours a day, across 25 countries, the bank branches are the last door you will have to knock while on the lookout for an answer to your queries.

Location of Branch: J.P House, M.V Road, Saki Naka , Andheri (E). Mumbai: 400072 Bank of Baroda has always taken good location for its branches. For Example: In Mumbai, there is a place with the name of Andheri(E), where it has branches at very convenient places for customers . The branches and ATMs are nearby Andheri Railway Station, Chakala , Saki Naka, etc. So the bank considers various good elements while selecting a place for banking transactions.

4)Promotion:

Promotion is nothing but making the customer more and more aware of the services and benefits provided by the bank. Bank of Baroda uses a lot of new technology to communicate to their customers. Two of the fastest growing modern tools of communicating with the customers are:

1. Internet Banking 2. Mobile Banking

Public Relations:

In todays competitive scenario developing strong public relations is very important for any bank to be successful. Most banks today have a separate Public Relations department. However primarily it is considered as a responsibility of the various bank managers to develop a steady and strong relationship with their present customers as well as potential customers. Bank of Baroda keeps good relations with their customers by a constant follow up, small programmes etc.

Television:

Consumer behavior is very complex phenomenon, which is considered primarily in marketing decisions. It has been rightly said Understand, you do not understand, you will not understand, you cannot understand all your customers but still you have to do your best to understand them. So advertisers of Bank of Baroda are advertising with the help of television which is the need of every Indian home.

Newspapers and Magazines:

Mass media advertising includes TV commercials and advertising in national level newspapers which have a wide coverage. Advertising in these has made maximum people aware about the offerings of the banks and established most of the bank names as big brands. Bank of Baroda advertises in many newspapers like The Times of India, The Economic Times, DNA, The Business Line,etc. Magazines like Business Today, India Today, Business World, etc. are considered for corporate advertising.

5) People: Bank of Baroda has always had an immense faith in the infinite potential of its people. This has been historically demonstrated in its recruitment practices, developmental initiatives, placement

processes and promotion policies. Strategic HR interventions like, according cross border and cross cultural work exposure to its managers, hiring diverse functional specialists to support line functionaries and complementing the technical competencies of its people by imparting conceptual, managerial and leadership skills, gave the Bank competitive advantage. The elaborate man management policies also made the Bank a breeding ground for business leaders. The Bank provided around a dozen CEOs to the industry- men who went on to build other great institutions. People initiatives were blended with IR initiatives to create an effectively harmonious workplace, where everyone prospered.

6) Process: Bank of Baroda follows the allotment of lockers process in the following manner: 1. The lockers are allotted on first come first served basis to the customers only. A waiting list register is maintained by the branches for the purpose. 2. At the time of hiring the locker, bank will obtain a Fixed Deposit under banks lien which would cover 3 years rent and the charges for breaking open the locker in case of an eventuality. 3. The hirer of the locker will be provided the copy of the agreement i.e. Memorandum of Letting by the bank. 4. Loss of key should be immediately informed to the Branch. 5. With standing instruction, the rent may be paid from the deposit account of the hirer on due date. 6. Where the lockers have remained un-operated for more than three years for medium risk category or one year for a higher risk category, the bank may ask the Renter/Lessee to either operate the locker/give valid reason for not operating the same or surrender the locker even though the rent is paid regularly. In case the Renter/Lessee does not respond nor operate the locker, the bank would have the right to cancel the allotment of the locker and may consider break opening the lockers after giving due notice to the Renter/Lessee.

7) Physical Evidence: Physical evidence is the overall layout of the place i.e. how the entire bank has been designed. Physical evidence refers to all those factors that help make the process much easier and smoother. For example, in case of Bank of Baroda, the physical evidence is the placement of the customer service executives desk and the location of the place for depositing cheques. It is very necessary that the place be designed in such a manner so as to ensure maximum convenience to the customer and cause no confusion to him. Mostly nationalized banks fails to provide maximum convenience to customers when compared to private banks.