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Fina Copy of Prashant 100 Marks Final Project 2

Fina Copy of Prashant 100 Marks Final Project 2

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  • Ch. 6. 7 P’S of BANKING
  • Promotion Mix:
  • People:
  • Process Mix:
  • 1. Product Mix:
  • 2. Pricing Mix:
  • 3. Place:
  • 5.People:
  • 7.Physical Evidence:
  • Ch. 11. CONCLUSION


Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. Bank is defined as “one who in ordinary course of business honors the cheques drawn upon him by person from and for whom he receives money on current accounts” “Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, drafts, order or otherwise”. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher

SERVICE MARKETING IN BANKS valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments.

The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. governmentowned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here.

The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. “The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered around the customer – understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services.” These banks have generally been established by promoters of repute or by ‘high value’ domestic financial institutions.




• The study of Service Marketing in Banks requires technical & conceptual understanding of term service marketing for which a good deal of information need to collected. • Researcher collects secondary data through various books and also from websites (Internet).

Secondary Data are those, which have already been collected by someone else and which have already been passed through the statistical process. This data is collected from the following sources.
a) Reports of ICICI BANK

b) Magazines c) Journals d) Newspapers

OBJECTIVES: The objective of this project study is to enable the researcher: • To understand what is Service Marketing. • To know about service marketing in ICICI Bank. • To know the importance of service marketing in banks.



PEST ANALYSIS 4 . • Study is restricted only upto Service Marketing in Banks.3. Ch.SERVICE MARKETING IN BANKS • The scope of this project extends only upto ICICI Bank. • It will help to understand the concept of service marketing in banks with an example of ICICI Bank and to know the new trends in ICICI Bank & Awards and Recognitions given to ICICI Bank. Adequate primary data was not available. LIMITATIONS: • • This project study is limited to the extent of guidelines issued by University of Mumbai.

anywhere banking’ facilities. etc. For example SMS functions through simple text messages sent from your mobile. The use of ATM and Internet banking has allowed ‘anytime. currency accounting machines makes the job easier and self-service counters are now encouraged. give instructions for fund transfers. These are also called as electronic purse. get the statement of accounts. The banks have now started issuing smartcards or debit cards to be used for making payments. Automatic voice recorders now answer simple queries. The messages are then recognized by the bank to provide you with the required information. Credit card facility has encouraged an era of cashless society. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry. Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers.SERVICE MARKETING IN BANKS TECHNOLOGICAL ENVIRONMENT Technology plays a very important role in bank’s internal control mechanisms as well as services offered by them. 5 . It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services. Today MasterCard and Visa card are the two most popular cards used world over. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of loosing the post.

By doing so the profits of the bank get affected. then more FDI are brought in India through banking channels.SERVICE MARKETING IN BANKS All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach. Sometimes looking into the political advantage of a particular party. In India. Allahabad bank was started in the year 1865 and Punjab national bank in 1895. the Government declares some measures to their benefits like waiver of short-term agricultural loans. banking has existed in one form or the other from time to time. Various banks in the cooperative sector are open and run by the politicians. and thus. If the FDI limits are relaxed. ECONOMICAL ENVIRONMENT Banking is as old as authentic history and the modern commercial banking are traceable to ancient times. to attract the farmer’s votes. They exploit these banks for their benefits. then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector. POLITICAL/ LEGAL ENVIRONMENT Government and RBI policies affect the banking sector. Sometimes the government appoints various chairmen of the banks. booming the economy. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. therefore. others followed Every year RBI declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. The present era in banking may be taken to have commenced with establishment of bank of Bengal in 1809 under the government charter and with government participation in share capital. If in the Budget savings are encouraged. 6 .

SERVICE MARKETING IN BANKS Various policies are framed by the RBI looking at the present situation of the country for better control over the banks. SOCIAL ENVIRONMENT Before nationalization of the banks, their control was in the hands of the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India. In 1969 government nationalized 14 banks. To adopt the social development in the banking sector it was necessary for speedy economic progress, consistent with social justice, in democratic political system, which is free from domination of law, and in which opportunities are open to all. Accordingly, keeping in mind both the national and social objectives, bankers were given direction to help economically weaker section of the society and also provide need-based finance to all the sectors of the economy with flexible and liberal attitude. Now the banks provide various types of loans to farmers, working women, professionals, and traders. They also provide education loan to the students and housing loans, consumer loans, etc. Banks having big clients or big companies have to provide services like personalized banking to their clients because these customers do not believe in running about and waiting in queues for getting their work done. The bankers also have to provide these customers with special provisions and at times with benefits like food and parties. But the banks do not mind incurring these costs because of the kind of business these clients bring for the bank. Banks have changed the culture of human life in India and have made life much easier for the people.



An organization is supposed to cater to the changing needs of customers; it is only natural that all customers have their own likes and dislikes. They have some uniqueness, which throws a big imprint on their lifestyles. This makes the task of understanding a bit difficult. It has the context that we go through the problem of market segmentation in the banking service. The study of the needs of customers invites a plethora of problems since in addition to other aspects; the regional considerations also influence the hierarchy of needs. To be more specific in the banking services, the banking organizations are supposed to satisfy different types of customers living in different segments. The segmentation of market makes the task of bank professionals easier. If the market segmentation is done in a right fashion, the task of satisfying the customers is simplified considerably. The modern marketing theories advocate the formulation of marketing policies and strategies for each segment, which an organization plans to solicit. The marketing segmentation is based in the principle of divide and rule. If we divide the market into different segments, the size of market is made small and the process of study is found convenient. We find market segmentation division and subdivision of a market based on considerations. The bank professionals have to segment the market in such a way that the expectations of all potential customers are studied in a right perspective and the marketing resources are developed to fulfill the same. The marketing efforts can be made more proactive if the process and bases of segmentation are right.


SERVICE MARKETING IN BANKS It is essential that the bank professionals assign due weightage to the difference that we find in the market behavior due to geographical, age, sex, nationality, educational background, income classes, occupation, social and other considerations. If they overlook or underestimate key bases while segmenting, the study results can’t be proactive to the formulation of creative marketing decisions. This makes it essential that the bank professionals are well aware of the criteria for market segmentation. The agriculture sector, industrial sector, services sector, household sector are found important in the very context. The gender segment is found important no doubt but we can’t underestimate institutional and professional segments. Since the banking organizations serve different sectors and segments, the segmentation should be done carefully.








segmentation very much effective in exploring the profitable opportunities. It is well known to us that while segmenting, the market is divided into different groups and sub-groups and this simplifies the process of studying and understanding the customers in a right perspective. If we know about the rural segment, the opportunities are explored to the rural areas. If we know about the women segment, the opportunities are identified in that area. If we know about the lowincome group, the opportunities are identified in that group. Thus the segmentation helps the bank professionals in exploring the profitable opportunities.
 Instrumental in designing a sound marketing strategy: We can’t

deny that market segmentation makes it easier to formulate a sound strategy. Since the banking professionals are aware of the changing

The formulation of a package is found significant and the bank professionals can do it successfully on the basis of market segmentation. If we know about the preference. the policy makers also find segmentation since they are well aware of the emerging trends in the business environment. The banking professionals transmit necessary information to the policy planners. The pricing strategy can be made operational and the sales promotion measures can be made productive. the pricing tool and the process of offering can be made more competitive. lifestyles it is found easier for us to develop the marketing resources accordingly. the promotional measures. The services. The process of innovation can be activated. which simplifies the process of making a sound policy. we find segmentation instrumental in enriching the marketing potentials. attitudes. the marketing resources can be developed in tune with the needs and requirements of a segment. They get detailed information about the changing needs and requirements of a segment.SERVICE MARKETING IN BANKS needs and requirements of a segment. 10 . requirements. The promotional measures can be satisfied in the face of receiving capacity of a particular segment. needs. The planning is an on going process. This in a natural way makes it convenient to develop marketing resources.  Helpful to the policy planners: In addition.  Enriching the market resources: In addition to other aspects. The development of world-class marketing resources thus makes it convenient to influence the impulse of prospects. The bank professionals find it easier to get the positive results for their productive marketing efforts.

2] Assessing the present and future needs of the customers. 3] Setting business development goals. arose in the West. bankers like any other private sector organizations had their own plans of business development and adopted their own ways and means to achieve their objective.Thus. 11 . The MARKETING concept was in the form of advertising & promotion. the idea of customer satisfaction arose in the 1950s. Bank Marketing consists of – 1] Identifying the most profitable markets now and in future. According to him. This was the position till the middle of 20th century. the concept of Marketing widened further.SERVICE MARKETING IN BANKS Ch. new concept in the Marketing Services with respect to banking profession. In the course of time. Deryk-Weyer of Barcelays Bank came out with a comprehensive definition of BANK MARKETING. From the stage of customer satisfaction.all in the context of changing environment in the market. In the late 1950s. 5. Hartley would call it as “Response Marketing” attuning with or responding to the changing needs of customer’s society and environment. flourished in the 1960s and became an integral part of Banking Services in 1970s. 4] Making plan to meet them and managing the various services and promoting them to achieve the plans. the Marketing become more concerned with the wellbeing of the “Society” as a whole & resulted in coining the term “SOCIETAL MARKETING”. Gradually there was a change in the attitude of bankers with respect to customers. MARKETING OF BANKING SERVICES In the earlier days.

location of a bank at a suitable points. socio-economic and business environment. pricing and promotion decisions in the changing. at the right time. The bank marketing activities are concerned with the designing of product strategies keeping in view the needs and requirement of prospect.SERVICE MARKETING IN BANKS Marketing of banking services is concerned with product.e. at a right price with right communication and promotion. place. The users of banking services or the prospects play a very significant role in the formulation of overall marketing strategies. It means organizing right activities and programmes at the right place. It is also related with the place decisions i. It has following unique features:1] Intangibility 2] Inseparability 3] Variability 4] Perishability 12 . distribution.

The preferences and prejudices of the customers are identified with the help of these profiles and this enables the bank to enhance its marketing activities. Customer satisfaction plays an important role in banking services. Foreign banks and new private banks like City Bank. middlemen are gradually emerging in the banking industry. the marketing strategy starts with developing customer profiles by which the bank can collect and analyse all relevant information on customers. In banking services. This has introduced the middlemen in marketing of banking services. 13 .SERVICE MARKETING IN BANKS With liberalization and globalization of the economy. Global Trust Bank and ICICI Bank are offering their franchise in marketing their services. In order to satisfy the customers’ needs new services may be introduced or the existing services of the bank may be modified.

PLACE 4. PRICE MIX 3. 7 P’S of BANKING It is very important for any bank to identify the 7 P’s of services so was understands their customers better and provide them with best of service. PROMOTION 5. 6. PRODUCT MIX 2. PROCESS 7. The 7 P’s are: 1. PEOPLE 6. PHYSICAL EVIDENCE 14 .SERVICE MARKETING IN BANKS Ch.

The product mix of a company includes all different product lines a company offers to its customers. [B] ADVANCES:They are of two types: I] Fund Oriented: a] Term Loan. f] Post-shipment finance. The product line of a bank might easily include more than 100 different services.SERVICE MARKETING IN BANKS PRODUCT MIX: A Product can be defined as the bundle of utilities consisting of various product features accompanying services. BANKS PRODUCT: [A] DEPOSITS:1] Time Deposits. c] Bill Discounting. and 15 . Bank services are viewed with not just things that are created with value but they are seen in terms of satisfaction they deliver. In today’s competitive scenario it has become very necessary for a bank to provide it’s customers with a wide variety of services and the best technology in order to attract them. b] Clean Loan. d] Advances. e] Pre-shipment finance.

and II] Foreign Currency [D] CONSULTANCY:I] Investment Counselling. and b] Letter Of Credit. II] Project Counselling. and VII] Trusteeship.SERVICE MARKETING IN BANKS g] Secured and Unsecured lines of credit. V] Sale of drafts. II] Non-Fund Oriented: a] Guarantees. III] Merchant Banking. II] Credit Card. IV] Collections. [E] MISCELLANEOUS:I] Traveller cheques. VI] Standing Instructions. III] Remittances. [C] INTERNATIONAL BANKING:I] Letter Of Credit. 16 . and IV] Tax Consultancy.

It is the minimum set of expectations a customer has about a product or service which the marketer must strive to satisfy. The core product level provides the platform for the development of other peripheral levels. If the service offer fails at this level it will mean immediate dissatisfaction. More like the basic purpose or necessity. These value additions are made in order to make the service more attractive to customers. EXPECTED PRODUCT LEVEL:This level reflects the standard required or expected by the customers to satisfy their needs and wants. This product is basically a formal product with some ancillary benefits or extra features attached to it.SERVICE MARKETING IN BANKS PRODUCT LEVELS CORE PRODUCT LEVEL:It is the main or core reason why the customer will buy the service of the bank. POTENTIAL PRODUCT LEVEL:- 17 . AUGMENTED PRODUCT LEVEL:It includes the fundamental services and benefits that distinguishes the company’s offer from the competitor’s offer. The service provider should make continuous efforts to search for further features and benefits in order to add to their offer.

the customer will be delighted to receive a special discount on his next visit. 1] Cogenial waiting room. 4] Readiness to go out of the way to satisfy the individual customer.SERVICE MARKETING IN BANKS The potential product focuses on the future. EXPECTED PRODUCT LEVEL:3] Safety of deposits. 3] Designated banking hours. if his bill exceeds a particular amount. When a product exceeds the augmented level it comes as a pleasant surprise to their customer and he is delighted leading to his loyalty towards the product. For an example. X’ culture. AUGMENTED PRODUCT LEVEL:4] Minimum courtesy. 5] Relationship orientation. POTENTIAL PRODUCT LEVEL 1] Occasional greetings at home. 2] Friendly employees. 3] ‘May I help you’ attitude. 6] Admission of faults in event of a mistake. PRODUCT LEVEL CORE PRODUCT LEVEL:1] Banking space. 3] Surprise Gifts. 4] Welcome note. 1] Correct transaction recording. 18 . 2] The ‘How are you Mr. 2] Timely service. 2] Lonable funds.

With India’s economy progressing. DMAT etc. PRICE MIX: The price mix in the banking sector is nothing but the interest rates charged by the different banks. In today’s competitive scenario where customer is the king. Another important aspect of the bank’s pricing policy today is the interest charged on the Home Loans and Car Loans.SERVICE MARKETING IN BANKS Thus it can be seen how a particular product passes through different levels. Banks also compete in terms of annual fees for services like credit cards. there are more and more buyers seeking these loans but at a very competitive interest rate. the banks have to charge them interest at a rate in accordance with the RBI directives. 19 . In today’s competitive scenario most banks try offering services at the Augmented and Potential level.

A particular buyer approaches a bank for a car loan for a period of 3 years. However it is very important to understand that in the banking sector. This interest rate is however regulated by the RESERVE BANK OF INDIA and THE INDIAN BANKING ASSOCAITION. The potential customer or investors generally frame their investment decisions on the basis of interest to be received on the investments. The pricing factor is very important because of the kind of competition that is prevailing today in the Indian market. he will try to attract the customer by giving him a better deal i. In this way. The banks are required to frame two fold strategies. the price is decided on the competitor’s price. the main pricing policy is concerned with the interest rate charged. However. In cost plus pricing a detailed analysis of cost structure of various banks products and services is to be done. 20.000 as interest. if a sale representative of another bank comes to know of this deal. He is charged Rs. it is the customer that ultimately benefits.SERVICE MARKETING IN BANKS The Reserve Bank of India and the Indian Banking Association are concerned with respect to the pricing in banks. Strategies concerned with interest and commission to be paid to the customers and interest or commission to be paid by the customer for different types of services. Pricing policy of a bank is considered important for raising the number of actual customers. a loan at a lower rate on interest.e. The interest 20 . Any one particular bank or a group of banks does not regulate it. While framing a pricing policy different pricing methods can be used. In case of competition related approach. Let’s understand this with an example.

The banks however have to stay within the RBI directives and compete. Thus. the bank bases its price largely depending on the competitor’s prices. Thus most banks use a combination of mark – up pricing and going rate pricing. Going Rate pricing: The most commonly used pricing technique is the going rate pricing. After 1991 when the foreign banks entered the Indian market this method of pricing has gained increasing importance. Mark up pricing: This is a pricing technique wherein the cost of the service is determined and a small margin is added to it and then the final price is offered to the customers.SERVICE MARKETING IN BANKS rate charged cannot be higher than that decide by the RBI and the INDIAN BANKING ASSOCIATION. In going rate pricing. This type of pricing is the not very popular since in the banking sector it is not very easy to arrive at the cost of the service. inspite of the constraints in the pricing policy due to the RBI directives there are mainly three types of pricing methods adopted by banks. This type of pricing strategy is usually coupled with promotion programmes. They are: Value pricing: Banks having unique or different products or schemes mainly do this type of pricing. 21 . The banks may charge higher or lower than their competitors. They usually charge a combination of high and low prices depending on the customer loyalty as well as the products.

which should be adopted in order to ensure maximum satisfaction to both the bank as well as the customers. Such a pricing stand helps the bank get 22 .SERVICE MARKETING IN BANKS THE MOST FAVORABLE PRICING STRATEGY This model shows a pricing strategy. The price should be set in such a manner that the customer is assured that he is not being cheated or overcharged by the bank and at the same time the bank is able to reap maximum profits.

Access 23 .Location of competition 11. Some of the important factors affecting the location analysis of a bank are: 1. It is very necessary a bank to situated at a location where most of its target population is located. Drawing time 10. PLACE MIX: Place mix is the location analysis for banks branches. Industrial structure 5. There are number a factors affecting the determination of the location of the branch of bank.Visibility 12. Commercial structure 4. Banking structure 6. Population characteristics 3. Proximity to public transportation 9. Real estate rates 8.SERVICE MARKETING IN BANKS maximum sales as well as profits since the customer feels that by entering such a transaction he is winning. The trade area 2. Proximity to other convenient outlets 7.

The Trade Area: The trade area is a very important factor determining the place where a bank branch should be set up. 1.SERVICE MARKETING IN BANKS It is not necessary that all the above conditions have to be satisfied while selecting the location but it should be tried to satisfy as many of them as possible. Such locations are ideal for setting up of bank branches.g. 24 . 2. culture and customs  The average spending and saving habit of the people. a particular location maybe a huge trading place for textiles. For e. Population Characteristics: The demography of a place is a very important factor. This includes:  The income level of the population  The average age  The average male female population  The caste. These factors are very important for a bank as the help them decide the kind of business the branch will get. diamonds or for that case even the stock market. religion.

7. Real Estate Rates: 25 . 4. Proximity of other convenient outlets: This refers to the other branches of the same bank as well other commercial.Thus the industrial stricture determines the kind of financial transactions that could take place in a particular location.SERVICE MARKETING IN BANKS 3. However the industrial structure focuses more on the kind of industries operating in a particular location. entertainment and industrial outlets. business activities taking place at a particular location. The higher the level of business activities taking place in a particular location the more preferable it is for setting up a bank branch. 6. Industrial Structure: This is nothing but a combination of the trade area analysis and the commercial structure. an area like SEEPZ is marked with a lot of electronic manufacturing units. Thus the overall infrastructure needed for the working of a bank. Banking Structure: The Banking structure refers to the existence of other banks in the area. Whether there is already an efficient network of other bank branches operating at that particular area. For example. 5.e. Commercial Structure: The commercial structure refers to the level of commerce i.

It should be convenient to the customer and somewhat flexible to accommodate the customer’s needs. the bank needs to draw that amount from other banks. 9. 8. This means it should have bus stops close by as well as it should be proximate to railway stations so as to make it convenient for the common man. 10. Visibility: The location of a branch should be such that it is visible and easily noticed by the customers as well other people. 26 . The real estate rate is a very strong factor influencing the location decision for a bank branch. 11. a location must be such that it facilitates minimum drawing time.SERVICE MARKETING IN BANKS This is mainly dealing with the cost factor involved in opening up a bank branch at a particular location. it is necessary that a bank does a lot of market research before opening a branch so as to estimate the kind of business it would get. Hence. No bank has more than a certain amount with them and in case a customer wants to withdraw an amount more than that available with the bank. Drawing Time: Drawing time refers to the time period during which a customer can draw money from the banks. If the level of competition is very high in a particular location. Proximity to public transportation: The location should be proximate to public transportation facilities. Location of Competition: The existence of other banks also means competition.

The location should be such that it is very convenient for the customer to reach. living standards and urbanization has led to increase in the changing preferences and the same has forced the marketers to change their product features. which is considered primarily in marketing decisions. distribution channels and so on. you cannot understand all your customers but still you have to do your best to understand them. for marketers the advice is. Access: The bank branch should be very easily accessible to the customers. If this is not the case. which is more convenient to him and very easily accessible." In consumer behavior this is very difficult to make a uniform theory that may suggest that a particular individual or group will behave in a particular manner. There is a famous saying the "Success has a simple formula-Do your best and people must like it". Similarly.offer the best and customers must like it'. the customer might switch to some other bank. Increasing awareness. packaging styles.SERVICE MARKETING IN BANKS 12. Consumer behavior is dynamic and to be studied regularly. Promotion Mix: INTRODUCTION:Consumer behavior is very complex phenomenon. Identical products always have their life cycle the product life cycle suggests that there is a level of maturity of the product and after that no more consumers 27 . you do not understand. It has been rightly said "Understand. you will not understand.

28 . The study of consumer behavior is compulsory to know about likes and dislikes of consumers from time to time so that the products and services can be offered accordingly. demands and preferences in a particular segment.SERVICE MARKETING IN BANKS can be attracted for that. Really interesting it is. the study of consumer behavior can make it possible that after observing and examining the behavior of consumer a marketer can present his product in such a way that the product can capture the market. Customers have their own unique needs. Marketers have to study customers in particular segment. However it was very difficult to sell that product earlier. The analysis has been done in the context of banking services. The following diagrammed will tell about the all marketing decisions taken in services industry or banking services. These all are essential decisions which are concerned are essential ingredients of services marketing mix. Consumer behavior indeed gives every possible answer to the complex questions concerned with consumer's buying reasons. The case is very same with preferences of consumers that they always like some innovative and different products to use.

There is no doubt that the behaviour is the base of marketing decisions. the study of consumer behaviour becomes more important for marketing decisions. service or idea.SERVICE MARKETING IN BANKS When customer is treated as the king of the market. A bank may have very attractive schemes and services to offer to their customers but they are of no use if they are not communicated properly to the customers. These points are: 29 . Promotion is o inform and remind the individuals and persuade them to accept. recommend or use of product. Promotion is nothing but making the customer more and more aware of the services and benefits provided by the bank. However there some very important points that is to be considered before the promotion strategy is made. The banks today can use a lot of new technology to communicate to their customers.

In addition to this the intensity of competition also plays a decisive role. The formulation of a sound budget is essential to remove the financial constraints in the process. They should be very creative but yet simple to be understood by the common man. There are a number of devices to advertise such as broadcast media. telecast media and the print media. Usually for promoting banks the most effective and economical form of advertising has been the print media. Testing the Effectiveness: It should be borne in mind that the advertisement is first tested for its effectiveness. It should be distinct from that of the competitors and should be successful in informing and sensing the customers. The budget is determined on the basis of volume of business of the bank. punch lines etc. Selecting a suitable vehicle: Another very important task is to select a suitable vehicle for driving the message. it very important to finalize the budget for it. that are supporting the message. The selecting of the mode of advertising is strongly influenced by the kind of budget decided. Making possible creativity: Making possible creativity is nothing but the kind of slogans. It should appeal to the customers. This should be done with the help of various techniques like 30 .SERVICE MARKETING IN BANKS Finalizing the Budget: Before the bank decides the kind of promotion that should be done.

SERVICE MARKETING IN BANKS testing effectiveness on a sample group. This helps determine the success of the advertisement and in case of any problem the advertisement can be altered and remedied. it is the responsibility of the branch managers to promote and drive the message to the people in the local area. They should organize small programs in order to attract people and crate awareness in the local area about the new schemes of the bank. Different Ways of Promotion Public Relations: In today’s competitive scenario developing strong public relations is very important for any bank to be successful. Most banks today have a separate Public Relations department. Instrumentality of Branch Managers: At a micro level. However primarily it is considered as a 31 .

entertainment and traveling plans for 32 . This can be done by a constant follow up. fairs and shows. small programmes etc. The representative tries to persuade the customers to go for the scheme provided by the bank by telling him all the benefits. Personal Selling: Personal selling is found to be one of the most effective and popular forms of promoting bank business. In personal selling. in order to promote the schemes. Also he gives the customers any kind consultation he might need. maybe at times just some small gifts. contests.SERVICE MARKETING IN BANKS responsibility of the various bank managers to develop a steady and strong relationship with their present customers as well as potential customers. Some of the most popular sales promotions techniques are gifts. The main reason for this is that banking is a service in which trust plays a very important role. The more innovative the sales promotions the more positive are the results. Here are some of the important features of personal selling  It is a direct relation between the buyers and the seller  It is oral presentation in conversation  It is personal and social behavior  It is found to be more effective in service oriented organizations  It is based on the professional excellence or expertise of an individual Sales Promotion: Sales promotions are basically giving the customers some additional benefits. He provides the customers all the information sought by him. discounts and commission. a bank representative goes to the customers and explains the scheme to the customers.

Word – of – mouth Promotion: This form of promotions is not only very effective in banking services but in any kind of service. However it is more important in banking for the only reason that this is a service where trust plays a very important role. This is because they can start the process by recommending the bank to their friends and relatives and after that it is like a chain. If a particular bank’s services are recommended by friends. It is very important that the sales promotions benefits are designed in such a manner that they are better than those of the competitors. or other well wishers the person is more influenced and inclined towards that bank. telephone. additional allowance. This includes promoting through television. which spreads like a wild fire. and radio. Nowadays. relatives. Telemarketing: In recent times telemarketing has gained increasing importance as an effective tool for promotion. cell phones are used extensively for the same. The telemarketing is a process of making use of sophisticated communication network for promoting the banks. This is the most popular form of promotion. It is very important to note that the internal employees of the bank play a very important role in word – of – mouth promotion technique.SERVICE MARKETING IN BANKS bankers. low interest financing etc. 33 .

SERVICE MARKETING IN BANKS Banks today have started using ‘SMS’ and many other services supported by cell phones to provide benefits to their customers and thus have tried to increase their sales. Internet: In present time the most popular tool for promotion of banking services has become Internet Marketing of services. The online banking has made it even easier for the customers to avail the bank’s services. Studies tell that they use internet mostly for checking their mails. finding results and educations and research purposes. The e-advertising of banking services not only promote the services by giving offers but it also interacts with the person and a potential customer can purchase the product with the help of this. E-Advertising is being very much popular. All this can be done with the help of a few clicks. Mass Media Advertising: Most Preferred mode for marketing of Banking Services:– 34 . However internet advertising in pop ups irritates the internet users but advertisements done on home page of any website such as email service provider is useful and customers get knowledge about the new banking services and promotions. people use internet so frequently. More and more banks are using Internet to promote their services. No longer do people have to go to their bank branches for small petty matters like checking their balance etc. When they see something in front of their eyes they can remember it much. In city areas of India. In today’s competitive and modern scenario it very important that banks makes use of telemarketing techniques very efficiently to have desirable results. The use of Internet as a promotional tool is increasing.

These are the central idea of an ad which has been used to catch the attraction of customer by heart. where banking service is promoted as a whole rather than a particular product of banks. service. Advertising in these has made maximum people aware about the offerings of the banks and established most of the bank names as big brands. Generally advertising appeals are broken into two categories: rational appeals and emotional appeals. There are hundreds of different appeals that can be used as the foundation for advertising messages. Different types of advertisement campaigns have been seen in form of TV commercials and as print ad in newspapers. Uses of Appeals in Banking Services Advertising: 35 . Print ads mainly focus on corporate image advertising of banks as well as a new offering of the bank such as increase in interest rate on deposits or decrease in the interest rates in loans and so on. In a recent survey ICICI Bank has been considered as the most popular banks in private sector. The theme of a commercial strikes a person in depth and forces him/her to act in the desired manner. The use of umbrella branding works well in promotion of banking services. TV commercials mainly focused on corporate advertising. Themes and appeals used in TV commercials of banking: Advertising appeal is the method used to draw the attention of consumers and to influence their feelings toward the product. or cause.SERVICE MARKETING IN BANKS Mass media advertising includes TV commercials and advertising in national level newspapers which have a wide coverage.

Even then. Towards this objective. Customization of Not two people are Service Offering the same IDBI Rational Practical Comprehensivenes Banking for All s of Services offering State Bank Emotional Personal/Reliability Supporting the With you all the way of India Security customers ADVERTISEMENT BY BANKS IN INDIA:Banks in India try to get the maximum mileage through the publicity route. The banks also take out other ads for improving their image. or even the inauguration of ATM facilities at new centres. Differentiation In years a player comes who change the way the game is played.SERVICE MARKETING IN BANKS Name of Broad Personal/Social Bank Category Union Emotional Social/Parental Bank of Appeal Affection India Royal Emotional Personal/Style Bank of Appeal Scotland Group HSBC Rational Practical Marketing Theme/Punch Line Approach Security and Future Because your dreams benefit are not only yours. they organize several events which are extensively covered by the print and electronic media. The advertisements released by banks may cover routine matters like the change of address of branches on relocation. These ads are not restricted to the print media and depend on many interesting innovations. they spend a huge sum of money on releasing advertisements. Banks frequently release advertisements to announce the launch of new products or to extol the virtues of their existing products. These marketing ads are becoming more imaginative day by day. opening of a new branches. trying to lure the upwardly mobile young achievers to their banks. 36 . change in the rates of interest on deposits and loans.

Banks do not leave moving vehicles too. Appointment of brand ambassadors has become a standard practice for most of the banks. hefty fees are being paid by the banks to prominent people in the show business. Later on Hema Malini & Rahul Dravid endorsed the banks like BANK OF RAJSTHAN & BANK OF BARODA respectively. who single-mindedly and effectively. try to create a positive impact in the viewer’s mind. Banks also advertise their products on electronic screens where the message and images keep repeating continuously.SERVICE MARKETING IN BANKS The practice of banks employing professional models for advertising their brands is on the rise. Nowadays. the service provider plays a very important and determinant role in rendering the customers a satisfactory and a good service. thereby enhancing their appeal. In a banking sector. It is extremely essential that the service provider understand what his customers expect from 37 . People: People are the employees that are the service providers. the rear and side panels of buses and the covers of scooters carry the bank message to the distant corners of the city. Amitabh Bachchan was one of the first superstar to endorse a bank (ICICI BANK).

Not only does the customer contact employee influence the customer’s perception but also the customer base of the organization does so. A well conceived product could fail if it is not implemented properly. credit evaluation. can be done through personal contacts. Bank products can not be separated from people who market them. In the banking sector. While designing the product due care should be given to both the product and the seller. Banks should adopt internal marketing in order to make the whole business customer-oriented. the customer needs to be guided in a lot of matters. The products and the seller together constitute the banking product. The position in the eyes of the customer will be perceived by appearance. But still matters like investment banking deposit. Most of the banks are moving towards technology based banking. attitude and behavior of the customer contact employees. mobilization.SERVICE MARKETING IN BANKS him. etc. SERVICE MARKETING TRIANGLE:SERVICE FIRM (BANK) INTERNAL MARKETING (ENABLING THE PROMISES) EXTERNAL MARKETING (MAKING THE PROMISES) 38 . The bank products should be marketed to the employees first before they are marketed to customers. which is possible only with the help of the service provider. The bank products can be implemented only through people.

It also conveys through the past experience which the customer has had with the firm. The external marketing then gives promises that correspond with the personal needs of the target group. The first step towards external marketing is to make the firm understand what makes a customers’ want a particular type of service and what are their expectations of a certain type of service. INTERNAL MARKETING:- 39 . Care should be taken to maintain credibility while setting the promise because a very high expectation may lead to a highly dissatisfied customer. The company conveys promises through promotion campaign. Anything conveyed to the customer in any form before the delivery of service can be viewed as a part of external marketing function. since external marketing builds customers’ expectations and belief about service delivery.SERVICE MARKETING IN BANKS EMPLOYEES (KEEPING THE PROMISES) CUSTOMERS INTERACTIVE MARKETING (MOMENT OF TRUTH) EXTERNAL MARKETING:The external marketing efforts are the traditional functions of marketing of the customers and make promises to the customers as to what is to be delivered. corporate image and word of mouth communication.

There are different types of service encounters such as 1] Remote encounter:- 40 .SERVICE MARKETING IN BANKS The expectations of the customers that are created by the external environment must be met by the employees of the service firm who interact with the customers.” Internal marketing suggests that the firm should employ market research. Berry defines internal marketing as “the means of applying the philosophy & marketing to people who serve external customers so that: (i) The best possible people can be employed & retained and (ii) They do the best possible work. These interactions are also called SERVICE ENCOUNTERS or MOMENT OF TRUTH. the customer judges the quality of service delivered by the service provider. Hence. It takes place at the very moment the buyer and seller interacts. the employees are the internal customers who in their job depend on others in the organization for providing goods & services to external customers. directly or indirectly every employee in the organization in one way or the other serves the external customers. In this process of interaction. Thus. market segmentation and traditional marketing activities like advertising and publicity in order to attract employees and make them perform. INTERACTIVE MARKETING:Interactive marketing takes place outside the marketing mix. If the service system as well as the service staff do not support the frontline employees. it will not be possible to meet the promises made by the organization. It is the skill and motivational tools employed by service personnel in handling the customer contacts.

It is very necessary that the process is very customer friendly. Thus. At this stage. E. in the interactive marketing the service encounter or the moment of truth is where the value to the customer is created in the service delivery process. In this situation determining the quality is highly complex as it will be influenced by the behaviour of both the customer and employee.g. all the efforts of internal and external marketing will be reflected. 3] Face-to-face encounter:When there is direct contact between the employee and customer. this type of encounter occurs. Process Mix: The process mix constitutes the overall procedure involved in using the services offered by the bank.SERVICE MARKETING IN BANKS The tangible evidence of the service becomes a primary basis for judging quality as there is no human contact in service delivery. Today if particular banks 41 . 2] Phone encounter:Here the service quality can be judged on the basis of how long they had to wait for the phone to be attended. In other words a process should be such that the customer is easily able to understand and easy to follow. the tone of voice & efficiency in handling the issues. ATM vending machines.

On the one hand.SERVICE MARKETING IN BANKS formalities are long and the procedure very complicated the overall process fails and the customer may not be inclined towards using that banks services. While India has not been as seriously impacted by the global financial turmoil. the Indian banking industry is witnessing rapid change given 42 . its effects are now evident with the collapse of some of the leading financial institutions. the current credit crunch has affected all sectors of the Indian economy. PROCESS OF BANKS: PROCESS INNOVATION IN THE INDIAN BANKING INDUSTRY The crisis in the international financial markets had been simmering for quite some time. However.

Value Notes along with the Indian Banks' Association (IBA) conducted a conference on "Process Outsourcing in the Indian Banking Industry" on January 6th to address the immediate issues concerning the banking industry. There were also some service providers such as Intel net. the banking and financial services sector has been at the forefront of the outsourcing movement. IBA talked about the economy and the banking sector in his opening remarks.SERVICE MARKETING IN BANKS the evolving regulatory environment. Third party service providers have also built greater processing and analytical capabilities and are able to handle more complex functions like financial modeling and equity research. There were several speakers from the banking industry including HDFC Bank. IDBI. K Ramakrishnan. HTMT Global and Shell Tran source who were present at the conference. In contrast with 43 . He said "The country will see difficult times for at least another one year and in these trying times the question that most banks are asking themselves is How do I still lend and keep the portfolio intact?" He emphasized that this is a time to look internally and examine and set processes in place. Punjab National Bank. the industry is now exploring process innovation and is more aggressively adopting technology. heightened competition and consolidation. MphasiS BPO. Outsourcing in the Indian Banking Industry: Globally. On the other hand. These service providers talked about their experience with the international banks and spoke about issues related to vendor selection and process transition. Inaugurating the conference. Bank of India. who spoke on the issues and concerns of the banks. Chief Executive. with the global recession looming. rapid technological advancements. Dr.

HDFC Bank talked about the rewards in the form of cost effectiveness.000 branches (one of the largest banking network in the world). There are banks ranging from small co-operative banks (presence limited to a few branches in a city) to large nationalized commercial banks like SBI with over 10. now a majority of the banks outsource a wide range of services to third-party service providers. However. The Indian banking Industry is highly fragmented. international banks had also certain concerns about outsourcing. General Manager. "Initially. 44 . Harsha Pai. he also cautioned the banks about the risks associated with outsourcing. Senior Vice President & Regional Head . Several attendees said that Indian banks were wary of outsourcing especially given the client confidentiality issues and the associated risks. BinduMadhav Tikekar. Further. According to Pai. Sparsh BPO (part of Intel net) touched upon the issue of vendor selection and the necessary parameters while selecting a suitable vendor. the Indian banking industry has been slower to outsource.Wholesale banking Operations. however. there are different issues that concern the Indian banks when outsourcing. Indian banks need to clearly understand and convey to the service providers what is truly confidential". The Indian banking Industry is dominated by PSBs with 70% market share. Bank of India and Punjab National Bank who shared their experiences about outsourcing and its rewards. While there were some apprehensions about outsourcing.SERVICE MARKETING IN BANKS global evolution of outsourcing. reduction in technical staff and low implementation and operational costs. there were also banks such as HDFC Bank.

IDBI Intech Ltd spoke about leveraging technology for process innovation. While a few large PSBs have been quick to respond to competitive pressures by introducing new services. spoke about process transition . Sanjay Sharma. PSBs have undertaken massive computerization to achieve 'Total Branch Automation'.possibility and plausibility. There is increasing focus on technology as evidenced by more and more PSU banks going for aggressive computerization and transferring their processes into some technology platform or other." Other factors such as growth in the banking industry. MD & CEO. Value Notes. consolidation and improving benchmarks in the industry are driving the outsourcing of business processes. others lag behind. PROCESS INNOVATION AND TECHNOLOGY : In India. all the large banks are now aggressively implementing 'Core Banking Solutions'. Post liberalization. According to Arun Jethmalani.SERVICE MARKETING IN BANKS Gaurav Bhatia. He argued that "Banks still need to reach 45 . "Aggressive adoption of IT and centralization of operations have served as a key enabler to outsourcing of business processes in the banking industry.BPO. CEO. outsourcing of processes is largely constrained by the RBI regulations and resistance from trade unions. (Vice President) BFS Solutioning Head . With privatization and increasing competition. investing in technology and acquiring capabilities like marketing and sales. with RBI tightening its regulations. deregulation. Banks need to standardize and document every process before they can initiate outsourcing. PSBs have been sluggish in adopting new technology as compared to global banks. increasing competition. With the help of several case studies he drove home the point that processes are crucial for outsourcing.

Paying for the initial down payment. This poses a hurdle when a bank decides to outsource. R I S Sidhu. Kalyanasundar. General Manager. Producing of proper documents 2. he said that until recently there was very little 'technology' for the banker and processes were largely manual procedures. Bank of India said that "Unlike the new generation private and foreign banks. it is a challenge for them to implement technology and train their staff. The biggest challenge that PSBs are faced with is completeness of data.SERVICE MARKETING IN BANKS the level where processes are streamlined in a manner so that there is consistent customer service in every branch on any bank. Explaining the marked difference when talking about technology in a PSB. however today technology implies enterprise wide data warehousing. Here the process may fail in the following cases: 46 . Chief General Manager (IT)." On similar lines. Punjab National Bank said that "While banks need to invest in technology. 1.A. Filling up of application form 3. Now this mainly involves 3 things." Let’s take for example the process for application for a car loan.” P. PSBs come with a legacy.

Once again the amount should be very competitive not very high above the regular rates prevailing in the markets. The customer should be given options as to how he would like to pay by cheques or by credit card.e. The smaller and simpler the procedure. Physical evidence refers to all those factors that help make the process much easier and smoother. Thus it is very necessary that the customer be asked for the minimum but most necessary document and not the other unnecessary documents. in case of a bank. the better the process. how the entire bank has been designed. It is very necessary 47 . or the location of the place for depositing cheques. and the customer will be more satisfied. In case of application form. PHYSICAL EVIDENCE: Physical evidence is the overall layout of the place i. If the customer is asked to produce a number of forms out of which some may not be necessary at all. 2.SERVICE MARKETING IN BANKS 1. Finally the payment of initial amount. the application form must be in a language best understood by the customers and it should not be very lengthy one or demanding a lot of unnecessary information. the physical evidence would be the placement of the customer service executive’s desk. For example. 3.

writing pads to the internal customers. chequebooks. imaginative design of bank brochure. attractive brand names etc. The environment is changing. Ch. employee’s dress code etc. other tangibles. Flashy cheque books with the name of the account holder printed. add to the customer’s perception of service quality. Logos. Tangibles: banks give pens. Thus such signages are significant for creating visualization and corporate identity. punch lines. ICICI BANK Overview: 48 . Even the passbooks. It is becoming more friendly. Signage: each and every bank has its logo by which a person can identify the company. Banks have influential punch lines to attract the customers. statements of accounts with details of transaction are other tangible aspects. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Most of the private and foreign banks portray a new welcoming and friendly look to the customer. Even some of the banks follow a dress code for their internal customers.SERVICE MARKETING IN BANKS that the place be designed in such a manner so as to ensure maximum convenience to the customer and cause no confusion to him. The company’s financial reports are issued to the customers to emphasis or credibility. This helps the customers to feel the ease and comfort. reports. The physical evidences include signage. symbols. etc reduce the inherent intangibility of services.7.

South Africa.58 billion for the year ended March 31. branches in Unites States. China. Hong Kong. 41. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking. The Bank has a network of about 1. 3. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization*. The Bank currently has subsidiaries in the United Kingdom. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. and 24 million customers (as of end July '07).SERVICE MARKETING IN BANKS ICICI Bank is India's second-largest bank with total assets of Rs. Russia and Canada. a network of over 950 branches and offices. INTRODUCTION: ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. ICICI Bank has total assets of about USD 79 Billion (end-Mar 2007). life and non-life insurance.950 ATMs in India and presence in 18 countries.997.308 branches and 3. Malaysia and Indonesia.95 billion (US$ 100 billion) at March 31. Bangladesh. 2008. Our UK subsidiary has established branches in Belgium and Germany. venture capital and asset management. Sri Lanka. about 3500 ATMs. Bahrain. Thailand. 2008 and profit after tax of Rs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail 49 . Singapore.

ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. both directly and through a number of subsidiaries and affiliates like ICICI Bank. In the 1990s. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara. 50 . the Stock Exchange. life and non-life insurance. HISTORY: ICICI Bank was originally promoted in 1994 by ICICI Limited. an Indian financial institution. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services. In 1999. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. Mumbai and the National Stock Exchange of India Limited and its ADRs are listed on the New York Stock Exchange (NYSE). ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. ICICI was formed in 1955 at the initiative of the World Bank. the Government of India and representatives of Indian industry. venture capital and asset management.SERVICE MARKETING IN BANKS customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking.

Product Mix: i. Deposits: ICICI Bank offers wide variety of Deposit Products to suit our requirements. 8.SERVICE MARKETING IN BANKS Ch. 7 P’S OF MARKETING OF ICICI BANK Marketing of services by ICICI bank: 1. Coupled with convenience of networked branches/ over 1800 ATMs and 51 .

Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life.SERVICE MARKETING IN BANKS facility of E-channels like Internet and Mobile Banking. Investments Along with Deposit products and Loan offerings. Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank. but we make banking a pleasure and at the same time children learn how to manage their personal finances. Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with your business.affordability and higher earnings. Banking is a serious business. ICICI Bank brings banking at your doorstep. ICICI Bank assists you to manage your finances by providing various investment options such as:  ICICI Bank Tax Saving Bonds 52 . So you enjoy twin advantages. Fixed Deposits: Safety. Young Stars: It's really important to help children learn the value of finances and money management at an early age. Flexibility. ii. Recurring Deposits: Through ICICI Bank Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. You can access your accounts at over 500 networked branches across the country. Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through.

one can access the various services ICICI Bank has to offer at anytime.SERVICE MARKETING IN BANKS       iii. over 1800 ATMs. Cards: 53 . Call Centre and Internet Banking. Thus. It services a customer base of more than 5 million customer accounts through a multichannel access network. 2004 Anywhere Banking: ICICI Bank is the second largest bank in the country. Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme. anywhere and from anyplace iv. This includes more than 500 branches and extension counters. Loan:  Home Loans  Personal Loans  Car Loans  Two Wheeler Loans  Commercial Vehicle Loans  Loans against Securities  Farm Equipment Loans  Construction Equipment Loans  Office Equipment Loans  Medical Equipment Loans v.

Mobile Banking.facility to transfer securities 24 hours a day. e-Instruction facility . viii.com at the click of a button! Benefits: • FREE Money transfers into accounts with over 30 banks in India 54 . In their continuous endeavor to offer best of the class services to our customers we offer the following features: • • • lower cost. 7 days a week through Internet Interactive Voice Response (IVR) at a vii. ICICI Bank Mobile Banking enables you to bank while being on the move. • Dedicated specially trained customer care executives at their call centre.SERVICE MARKETING IN BANKS  Credit Card  Debit cum ATM Card  Travel Card vi. Corporate benefit tracking. ICICI Bank offers Mobile Banking facility to all its Bank. Digitally signed transaction statement by e-mail. NRI Services: ONLINE MONEY TRANSFER facility available to NRIs worldwide through www. to handle all queries. Credit Card and Demat customers.money2India. Demat services: ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. With ICICI Bank. banking is no longer what it used to be.

The banking organizations are required to frame two. Since both the strategies throw a vice. The RBI and the IBA are concerned with regulations. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a 55 .fold strategies. The pricing policy of a bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. Pricing Mix: 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 services are sold through the branches. It is essential that both the buyers as well as the sellers have feeling of winning. 3. the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid.SERVICE MARKETING IN BANKS • Demand Drafts issued and payable at over 1250 locations in India • ONLINE Tracking of the status of your funds • SUPERIOR Exchange rates • OFFLINE MONEY TRANSFER 2. Thus while deciding the price mix customer services rank the top position. Also the quality of service provided has direct relationship with the fees charged.versa impact. Place: This component of marketing mix is related to the offering of services. it is important that banks attempt to establish a correlation between two. The rate of interest is regulated by the RBI and other charges are controlled by IBA. First.

S. LOCATION OF ATMS: • Malad subway • With branch • Mindspace • Orlem • Raheja township They select this place as branch because • The selection significant with • The view poi • • • • • The safety an Convenient to Infrastructure Near to statio Market cover 56 . Opp. New Era Cinema. Malad (W).SERVICE MARKETING IN BANKS suitable place for bank branches.Road. LOCATION OF BRANCH: Shivam Shopping Centre. The number of branches OF ICICI: 1900 in India and 33 in Mumbai.V. Mumbai.

Management and other Consumers often add significant value to the total product or service offering. People: All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix.  Personal selling: Cross-sale (selling at competitors place). an employee plays an important role in the marketing operations of a service organisation. magazines  Publicity: road shows. discount and commission. Knowledge Workers. radio. Employees. movies. employees are essentially the contact personnel with customer. sandwich man.SERVICE MARKETING IN BANKS 4. campus visits.personalized service  Telemarketing: ICICI one source Call center (mind space) 5. Therefore. It is the employees of a bank which represent the organisation to its customers. newspaper. In a bank organization. Sponsorship  Sales promotion: gifts. theatres  Print media: hoardings.etc. incentives. Promotion Mix:  Advertising: Television. 57 .

investing in people quality in service business means investing in product quality. In fact not only all the branches of a single-bank. In internal marketing a variety of activities are used internally in an active. Internal marketing paves way for external marketing of services. The basic objective of internal marketing is to develop motivated and customer conscious employees. but all the banks 58 . then neither does the service. 6. development. motivation and retention of qualified employee-customers through need meeting job-products. Standardization: ICICI bank has got standardized procedures got typical transactions. A service company can be only as good as its people. Process: Flow of activities: All the major activities of ICICI banks follow RBI guidelines. ICICI become conscious in its potential in internal marketing . A service is a performance and it is usually difficult to separate the performance from the people. marketing like manner and in a coordinated way. If the people don’t meet customers' expectations. Therefore.the attraction.SERVICE MARKETING IN BANKS To realize its potential in bank marketing. There has to be adherence to certain rules and principles in the banking operations. The starting point in internal marketing is that the employees are the first internal market for the organization. The activities have been segregated into various departments accordingly.

Strictly speaking there are no physical attributes to a service. Number of steps: Numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not mingle elsewhere. This is because of the rules they are subject to. 7. There are many examples of physical evidence. Separate counters exist with clear indication. Besides. Standardization saves a lot of time behind individual transaction. Besides this the customers can select their deposit period among the available alternatives. including some of the following: • Internet/web pages • Paperwork 59 . Besides instruction boards in national boards in national and regional language help the customers further. so a consumer tends to rely on material cues. Customer involvement: ATM does not involve any bank employees. Simplicity: In ICICI banks various functions are segregated.SERVICE MARKETING IN BANKS have some standardization in them. Physical Evidence: Physical evidence is the material part of a service. documentations etc. This makes procedures not only simple but consume less time. Besides this. during usual bank transactions. there is definite customer involvement at some or the other place because of the money matters and signature requires. each of the banks has its standard forms. Customization: There are specialty counters at each branch to deal with customers of a particular scheme.

chequebooks. This helps the customers to feel the ease and comfort. Financial reports: The Company’s financial reports are issued to the customers to emphasis or credibility. punch lines. Banks have influential punch lines to attract the customers. other tangibles. Tangibles: bank gives pens. 60 . Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Employee’s dress code: ICICI bank follows a dress code for their internal customers. etc reduce the inherent intangibility of services. Even the passbooks.SERVICE MARKETING IN BANKS • Brochures • Furnishings • Business cards • The building itself (such as prestigious offices or scenic headquarters) The physical evidences also include signage. Signage: each and every bank has its logo by which a person can identify the company. writing pads to the internal customers. reports. Thus such signage is significant for creating visualization and corporate identity. employee’s dress code etc.

9. has contracted with Air2Web India to use their Mobile Internet Platform to provide ICICI Bank customers with wireless access to their banking and credit card accounts. "ICICI Bank has always been known for its use of cutting edge technology. their digital cell phone. President and CEO of Air2Web India. our customers can keep track of their account balances." "ICICI Bank has developed a wireless application which enables their customers to get their banking and credit card account information when and where they want it and from their most common wireless device. confirm when they have been paid. Executive Director of ICICI Bank. We feel this value added service will improve our customer service offering." said Ms. and receive banking and credit card statements. it is no surprise that they are launching one of the first wireless banking products to not only incorporate automated notifications of balances of both your credit card and bank accounts.SERVICE MARKETING IN BANKS Ch. India's largest private sector bank. "With this wireless service. but one that also allows customers to pull timely account information." said Sanjoy Malik. "Our new wireless applications are going to help customers better manage their checking and credit card accounts by allowing them to receive and request pertinent information anytime. as well as request details on how to pay credit card balances. Chanda Kochhar. anywhere via their digital cell phone. So. This new wireless service gives ICICI Bank customers substantially more control and flexibility over their 61 . RECENT TRENDS IN ICICI BANK ICICI Bank.

The customer base is over 6. Air2Web's ability to work with multiple data and audio formats streamlines integration with existing applications. The card is now available in 36 cities across India. SFA or SCM systems. ERP. Sterling Silver and True Blue. Information can be accessed across any network and with any carrier and via any digital wireless device including Short Message Service (SMS) and web-enabled phones. The ICICI Bank Credit Cards was launched in January 2000 with three variants Solid Gold. thus enhancing their customers' experience and another added value which sets ICICI Bank apart from its competitors. personal digital assistant devices (PDAs).5 million.SERVICE MARKETING IN BANKS accounts." Air2Web's Mobile Internet Platform provides businesses with a competitive edge enabling its customers to wirelessly access critical back-end information residing in existing CRM. 62 . and pagers.

These awards were given for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on the move campaign' respectively. ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event & Experiential Marketing Award in two categories . on May 11.SERVICE MARKETING IN BANKS Ch. 10. • ICICI Bank bags the “Best bank in SME financing (Private Sector)” at the Dun & Bradstreet Banking awards 2009. The scope of certification comprised processes around consulting and capability building on methods of quality & improvements. AWARDS AND RECOGNITIONS ICICI BANK:- 2009: • ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in Mobile Payments and Banking" by IDRBT. 63 . ICICI Bank is ranked 2nd amongst 57 savings products across 19 banks ICICI Bank Germany won the yearly banking test of the investor magazine €uro in the “call money” category. • An ICICI Bank NRI service wins the “Excellence in Business Model Innovation Award” in the eighth Asian Banker Excellence in Retail Financial Services Awards Programme.“Rural Marketing programme of the year” and “Small Budget On Ground Promotion of the Year”. on May 18. • ICICI Bank's b2 branch free banking was adjudged "Best E-Banking Project Implementation Award 2008" by The Asian Banker. 2009 in Hyderabad. • • • • • ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008 certification by TUV Nord. ICICI Bank's Germany Branch has been certified by “Stiftung Warrentest”. The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence and Excellence Award for Asia Pacific for its Business Intelligence functions. 2009 at the China World Hotel in Beijing.

India for 1.5 year ADR GDR linked Range Accrual Note. 64 . India. • ICICI Bank wins Asset Triple A Investment Awards for the Best Derivative House.SERVICE MARKETING IN BANKS • ICICI Bank has been awarded the following titles under The Asset Triple A Country Awards for 2009: • Best Transaction Bank in India • Best Trade Finance Bank in India • Best Cash Management Bank in India • Best Domestic Custodian in India • ICICI Bank has bagged the Best Cash Management Bank in India award for the second year in a row. The other awards have been bagged for the third year in a row. Local Currency Structured product. The award was given to ICICI Bank its long-standing support to this unique training centre for people who are deaf-blind. • ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. In addition ICICI Bank were Highly commended. • ICICI Bank wins World Finance 2009 Banking Awards for Best NRI Services bank.

Due to the implementation of the financial sector reforms and policies for the country change in the banking industry is inevitable. the Indian banking industry has undergone tremendous transformation. These changes have forced the Indian banking industry to adjust the product mix and to remain competitive in the globalised environment. ICICI Bank today services a growing customer base of more than 5 million customer accounts and 5 million bondholders accounts through a multi- 65 . 11. CONCLUSION “Change” is a continuous process and banking industry is no exception to this law which is natural. develop adequate resources. After liberalization and globalization process that was initiated in 1991. convert these resources into efficient services and distribute them effectively so that the customers are satisfied. The following are some of the vital challenges that threaten the Indian banking industry: Competition from foreign banks and now new private sectors banks  Technological advancement  Innovation  Diversified Activities  Customer Awareness and Satisfaction  Development of skills of Banks Personnel  Profitability Nature  Corporate Governance In order to survive and succeed the domestic banks must identify their marketing areas.SERVICE MARKETING IN BANKS Ch.

SERVICE MARKETING IN BANKS channel access network. This includes over 400 branches and extension counters. Service Marketing by ICICI Bank will continue to remain popular. is achieved not only through creating suitable products according to his need but also through delivering them in a most satisfying manner. 1080 ATMs. In spite of the changing banking environment and newer challenges emerging. The customer satisfaction. which must be the ultimate goal of bank marketing. Bank renders personalised services and the present emphasis in marketing is customer satisfaction. 66 . call centers and Internet banking.

com 67 . Mascarenhas WEBLIOGRAPHY  www. Gupta 2] Bank Marketing By Umesh C.com  www.K.icicibank.marketingteacher.scribd. BIBLIOGRAPHY BOOKS REFERRED 1] Service Marketing By P.com  www.com  www.google. Patnail 3] Marketing in Banking and Insurance By Romeo S.SERVICE MARKETING IN BANKS Ch.12.

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