SYNOPSIS

On

MARKETING OF BANK PRODUCTS EMERGING CHALLENGES & NEW STRATEGIES

Submitted in partial fulfillment for the award of the degree of Master of Business Administration (M.B.A) 2010 -2012

UNDER THE GUIDANCE OF:. Prof Raj Kumar, FMS,BHU

Submitted by: Ravi Shankar M.B.A. (2010-12) Enrolment No. -291757 ROLL NO:31

Introduction
Human being is a social being. Throughout the life, all we do is try our best to fulfill our needs. The place where things are exchanged or say mutual needs are satisfied, is called the market and the efforts to make people aware of your offerings encouraging them to deal with you and let them believe that in doing so, they are satisfying their needs at its best is called marketing. After the banking sector reforms, marketing has developed as a more integrated function within financial service organizations like banks largely as a result of rapid changes in the operating environment. Banks Marketing is defined as an aggregate of function directed at providing service to satisfy Customers financial needs and wants, more effectively than the competition keeping in view the Organizational objective of the bank. The bank marketing has become a very complex yet interesting subject as it requires the knowledge of economics, sociology, psychology, banking and also core marketing concept. In marketing, it is the customer who has the upper hand. The mantra of effective marketing of bank products lies in the systematic and professional approach towards satisfying customers needs . Thus, banks have to set up Research and Market Intelligence wings so as to remain innovative to ensure customer satisfaction and to keep abreast of market development

Marketing Approach to Banking Services

Identifying the customers financial needs and wants. Develop appropriate banking products and services to meet customers needs. Determine the prices for the products/services developed. Advertise and promote the product to existing and potential customer of financial services. Set up suitable distribution channels and bank branches. Forecasting and research of future market needs.

`From the above discussion of bank marketing, it can be understood that the existence of the bank has little value without the existence of the customer. The key task of the bank is not only to create and win more and more customers but also to retain them through effective customer service. Customers are attracted through promises and are retained through satisfaction of expectations, needs and wants. Marketing as related to banking is to define an appropriate promise to a customer through a range of services (products) and also to ensure effective delivery through satisfaction. The actual satisfaction delivered to a customer depends upon how the customer is interacted with. It goes on to emphasize that every employee from the topmost executive to the junior most employee of the bank is market. Due to the introduction of LPG policy and IT Act of 2000 the scope of the market has enhanced. Customers expectations are high from the service
industry like a banking industry. Only those banks will survive who will provide efficient and customer desired services

Objectives
To analyze the marketing developments regarding products and approaches in various bank groups after banking reforms.(1993) A comparative study between the approaches adopted by public sector banks and private banks in India and their impact on their development. To analyze the challenges in front of banks and strategies that should be applied to get rid of these challenges.

Research Methodology
Research Design

Research Design: Exploratory

Marketing has suddenly become a buzzword in the banking sector. Customer has suddenly moved to the centre-stage and he has now a choice. How do banks then attract a customer to use their product and services? One has to reckon the fact that the old loyalty can no longer be taken for granted. Banks have to make efforts to retain the existing customers and also use strategies to attract new customers to their fold.
Sample Design The universe of the study is Indian banking industry. The Indian banking industry has been divided into three major bank groups. Public Sector Bank Group G-I (28) Private Sector Bank Group G-II (28) Foreign Bank Group G-III (29) Parameters of Study Nature of competition in the banking industry pre and post 1993 and 2010(Performance parameters of public, private sector and foreign bank group) i. Deposits ii. Advances iii. Interest Income iv. Other Income v. Operating Profit All the parameters have been analyzed for the period 1993 and 2010.

Growth rate is measured with the help of following formula Growth rate = Yt-Yt-1 -------------Yt-1 Yt= Current Year, yt-1=Base Year

Data Collection Design

The data for this project will be collected from secondary sources only. The data will be collected from various periodic reports produced by RBI and other banks and related agencies.