Marketing in Banking

Marketing in Banking
MARKETING IN BANKING
1
ACKNOWLEDGMENT
Acknowledgement is nothing but expressing thanks and adding truth

that to which the actual credit of an achievement goes to. The
achievement in this report on marketing in banking and the credit
for this goes to all the persons whose remarkable guidance and help
was with me at each and every step of my project work.
I whole heartedly thanks all the concerned people at college as well as

at university level, who have given me the chance for preparing this
valuable project.
I further thanks especially to my guide Prof. ,for

her contribution my project work.
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OBJECTIVES
 To enhance knowledge about our banking sectors.

 To know about the innovation in banking in banking sectors.
 To enhance knowledge about banking operations.
 To get a clear view of the services available in our country.
 To highlight the various banking products and services under the banking
sector’
 To make a common man aware of various banking facilities as per his
need and size of pocket.
 Through this project, a person can have an idea of what can be provided
and to what extent.
 Gaining much better understanding and knowledge of banks as field of
banking investment.
 To know how banks are covering every aspects of life.
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INDEX
Sr. No. Chapter Page No.
INTRODUCTION TO
1 MARKETING
INTRODUCTION TO BANKS
2
ROLE OF BANKS
3
TYPES OF BANKS
4
MARKETING IN BANK
5
TYPES OF MARKETING
6
MARKETING STRAREGIES OF
7 THE BANKSING INDUSRTY
BANKS MARKETING
8
CONCLUSION
9
5
CHAPTER 1
INTRODUCTION TO MARKETING
Introduction:-
In today’s business there are multi-dimensional problems and opportunities. The subject
matter of marketing is drawing more and more and more attention from Companies,
Institutions and Nation. Business has recognized the main difference between selling and
marketing and they are now convinced to give more attention and importance to marketing.
Even non-profit making Organization use marketing techniques to establish relations with the
people.
Pricing, Advertising and Marketing Research are being used to win over consumer resistance.
Marketing is the world’s oldest profession. Right from the time of barter to money to money
economy till today’s modern complex marketing is the study of exchange process.
Meaning :-
Marketing is an important social economic activity. It is an essential activity for the

satisfaction of wants and for raising social welfare. Marketing links producers and consumers
together for mutual benefits. It facilitates transfer of ownership of goods and services from
producers to consumers. Production will be meaningless if goods produced are not supplied
to consumers through proper marketing mechanism.
Modern marketing is global in Character. Customer is the most important person in the whole
marketing process. He is the cause and the purpose of all marketing activies. According to
Professor Drucker the first function of marketing is to create a Customer. Marketing is a need
satisfying process. It facilitates physical distributions and creates Form utility, Place unity
Time utility, and Possession utility.
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Definition :-
According to Philip Kotler, “marketing is a human activity directed at satisfying needs and
wants through exchange process”.
In simple words marketing defines, “the activities of a company associated with buying and
selling a product or service. It includes advertising, selling and delivering products to people.
People who work in marketing departments of companies try to get the attention of target
audiences by using slogans, packaging design, celebrity endorsements and general media
exposure. The four 'Ps' of marketing are product, place, price and promotion”.
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Traditional and Modern Concept of Marketing
The traditional concept of marketing is more of producer oriented and not customer oriented.
It follows approach oriented and not customer oriented. It follows approach of sell, what you
can make. In the traditional approach, the customers a taken for granted, and were expected
to purchase whatever was available in the market. The main objective of the firm is to earn
profit. This philosophy does not place emphasis on social responsibility of the firm. It is
applicable especially in the Third World countries, where there is a seller’s market. It was in
existence prior to 1950.
The modern marketing concept considers the creation of customers as the purpose of
marketing. It is a broad concept with stress on consumer satisfaction on social welfare. It is
service-oriented and welfare oriented. Consumer satisfaction and consumer service are given
special importance. It came into existence in 1950s. It is a popular and progressive concept
with special attention towards different social groups. Its philosophy has social significance,
but it is difficult to introduce in actual practice.
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Importance of Marketing
 Satisfaction of human needs and wants

 Profit and market reputation
 Facilitates specialisation division of labour
 Widens the market
 Improves standard of living
 Brings economic growth
 Creates new norms if social economic behaviour
 Provides channels of communication to business firms
 Facilitates proce control
 Develops social significance at.
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CHAPTER 2
INTRODUCTION TO BANK
Introduction:-
The bulk of all money transactions today involve the transfer of bank deposits. Depository
institutions, which we normally call banks, are at the very center of our monetary system.
Thus a basic knowledge of the banking system is essential to an understanding of how money
works.
Meaning :-
“The word bank is derived from the Italian banca, which is derived from German and means
bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers
to an out of business bank, having its bench physically broken. Money lenders in Northern
Italy originally did business in open areas, or big open rooms, with each lender working from
his own bench or table.”
Typically, a bank generates profits from transaction fees on financial services and on the
interest it charges for lending.
Definition :-
The essential function of a bank is to provide services related to the storing of value and the
extending of credit. The evolution of banking dates back to the earliest writing, and continues
in the present where a bank is a financial institution that provides banking and other
financial services. Currently the term bank is generally understood an institution that holds
a banking license. There are also financial institutions that provide certain banking services
without meeting the legal definition of a bank, a so called non-bank. Banks are a subset of
the financial services industry.
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History of Bank
The first regular institution resembling what we call a Bank was established at VENICE,
nearly seven hundred years ago.
In its origin it had nothing to do with the business of banking. The Republic being engaged in
war, and falling short of funds, had recourse to a forced loan. The contributors to that loan,
were allowed an annual interest offour per cent on the sums they had been obliged to lend;
assigned for the payment of that interest; and a corporation, entitled the chamber of loans,
was created for the express purpose of looking after this business, managing those branches
of the revenue assigned to the lenders; and attending to, and securing the punctual payment of
the interest, .as it fell due.
So far, there was no bank in our sense of the word. But the Chamber, in the course of its
business, 80metimes had occasion to purchase and sell bills of exchange; and as the means of
the corporation were undoubted, and its character highly respectable, it was soon discovered
that its name upon a bill, gave it traditional value. By degrees, the Venetian merchants fell
into the habit of placing their money with the Chamber, for safe keeping; and thus was
introduced the business of deposit, a second branch of modern banking.
It was presently found that a credit for money deposited in the Chamber was quite equivalent
to so such cash in hand and the custom was introduced of effecting payments by the transfer
of these credits from the account of the payer to that of the receiver. In this way the trouble of
counting large sums of coin, and of transporting it from one part of the city to another, was
wholly avoided. So great the supposed advantages of this method of doing business, that what
at first had been voluntary on the part of the merchants was afterwards enforced by law.
Every merchant was obliged to open an account the bank; and all payments of bills of
exchange and in wholesale transactions were required to be made there, and in the manner
just described.
This began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during
the Roman Empire, lenders based in temples made loans and added two important
innovations: they accepted deposits and changed money. Archaeology from this period
in ancient China and India also shows Banking, in the modern sense of the word, can be
traced to medieval and early Renaissance Italy, to the rich cities in the north such
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as Florence, Veniceand Genoa. The Bardi and Peruzzi families dominated banking in 14th
century Florence, establishing branches in many other parts of Europe. Perhaps the most
famous Italian bank was the Medici bank, established by Giovanni Medici in 1397. The
position of the Medicis was eventually taken over by the Fuggers and the Welsers. The oldest
bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has
been operating continuously since 1472. It is followed by Berenberg Bank of Hamburg
(1590).
The development of banking spread from northern Italy through Europe and a number of
important innovations took place in Amsterdam during the Dutch Republic in the 17th
century and in London in the 18th century.
During the 20th century, developments in telecommunications and computing caused major
changes to banks' operations and let banks dramatically increase in size and geographic
spread. The financial crisis of 2007–2008 caused bank failures, including some of the world's
largest banks, and provoked much debate about bank regulation and the size and role of
banks in the economy.
The history of banking depends on the history of money and on grain-money and food cattle-
money used from at least 9000 BC, two of the earliest things understood as available
to barter (Davies), Anatolian obsidian as a raw material for stone-age tools being distributed
as early as 12,500 B.C., with organized trade occurring in the 9th millennia. (Cauvin;
Chataigner 1998) In Sardinia one of the four main sites for sourcing the material deposits of
obsidian within the Mediterranean, trade of this were replaced in the 3rd millennia by trade in
copper and silver. The society adapted from relating from one fixed material as valued
deposits available for trade to another.
The possibility of stable economic relations was much improved with the change from the
reliance on hunting and gathering of foods to agricultural practice, during periods dated as
beginning sometime after 12,000 BC, at approximately 10,000 years ago in the Fertile
Crescent, in northern China about 9,500 years ago, about 5,500 years ago in Mexico and
approximately 4,500 in the eastern parts of the contemporary United States.
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FEATURES OF BANK
DEALING IN
MONEY
ACCEPTANCE
FACILITY OF
OF MONEY
ADVANCE
DEPOSITS
IDENTIFICATIO PAYMENT AND

N WITHDRAWS
BUSINESS IN INDIVIDUAL OR
BANKING COMPANIES
FUNCTIONS VARIOUS
INCREASING BRANCHES
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 Dealing in money :-
All banks basically deals with money as they are financial institute where we links
for our moneys exchanges we will either gave or deposit money in banks or will
led/barrow money from banks for our requirement as per we need .
 Acceptance of money deposits :-
All banks always works for their consumer satisfaction as a result they accepts money
from all their customers in a way there they also gave an Interest on deposited with
the duration passed to money in bank. Banks deposits money from peoples & after
that the protection of money is the responsibility of banks any misfortune happens to
the consumers’ money will be returned by banks to customer within a given period of
time.
 Payment and withdraws :-
A person who has deposit their money into bank can able to withdraw it at any time of
instance. A customer can also able to easy payment & withdraw their money with the
facilities of Atm, drafts, money orders, cheques etc.
 Individual or companies :-
Bank can be of any type it can be a company or firm or also a person which are
involved in the business of money. This is also how banks are defined.
 Various branches :-
An bank can also have multiple branches for the facility of their customers as every
person cannot be able to go to the main branch of the a Bank so banks further grows
their own branches so that they can reach to each n every person.
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 Functions increasing :-
Bank always believe in developing of facilities for the customers so that they always
increase their functions for working like developing latest ATM machines for the
transactions of money and also net banking by which will be able to buy & sell any
item from the sitting in our comfort zone.
 Business in banking :-
Banks do the business of money without any subsidiary business. There only
responsibility is to satisfy their customers. This is also how banks define as they do
the business of money interchanging from 1 hand to other.
 Identification :-
Each bank has a unique name but having BANK name as common in all, which
identifies the banks existence. People deals with different banks having different
names but bank word in common in all of them.
 Facility of advance :-
Banks also LED/GAVE money to the people in a form of LOAN with minimum
amount of interest. people which are not able to full fill their requirements at an
instance of time which required a large amount of money at that time banks lend
money to them so that they full fill there requiments and returns back in small
installment which are known as EMIs.
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Advantages of Bank
FINANCIAL
SAFEGUARDS
INSTITUTION
PROVIDE SERVICE ONLINE BANKING
PAY YOURS BILL

NATIONAL BANKS ONLINE
VIEW YOUR TRANSFER MONEY

TRANSACTIONS BETWEEN ACCOUNTS
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 Financial institution :-
Bank is a financial institution whose primary activity is to act as payment agents for
customers, and to borrow, lend, and, in all modern banking systems, create money.
The banking industry is a highly regulated industry with detailed and focused
regulators.
 Safeguards :-
Banks safeguards the money and valuables of the people. They also provide loans,
credit and payment services like checking accounts, paying checks drawn by
customers on the bank, and collecting checks deposited to customer's current account.
Banks also enable payments method like telegraphic transfer and atm.
 Provide service :-
Banks provide a valuable service above and beyond just our basic banking accounts,
and our economy would not be able to function correctly without them. Banks charge
some nominal fee with the every service they provided to their customers. Banks are
widely available at each and every place, and they are the first option that comes to
mind when dealing with finances. But due to extensive use of internet the scenario is
getting changed.
 Online banking :-
Now a day's online banking is getting very popular. Online banking makes things
extremely convenient for people and saves their precious time. It allows you to
quickly manage your bank account and see where your balance is. Reputed banks
have introduced their sites which are strictly devoted to explaining the measures they
employ to protect you and your bank account from internet hackers.
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 National banks :-
A large number of national and statewide banks are offering online banking services
to their customers. One can now enjoy the benefit of paying the bill online. Most
banks offer online banking free of charge.
 Pay yours bill online:-
You can use online banking to pay your bills. This will eliminate the Need for stamps
and protect you from the check being lost in the mail. Most banks will have a section
in which you set up payees. You will need to fill out the information once, and then
you can simply choose that Profile every time you pay a bill online. If your bank will
not pay bills Online you may consider paying online through the company. Be careful
since same of these companies may charge a convenience fee.
 View your transactions :-
Online banking allows you to access your account history and transactions from
anywhere has cleared your account. This can help you to find out the amount of a
Transaction after you have lost your receipt. It also allows you to find out about
unauthorized transactions more quickly. This can help you to resolve the issues more
quickly.
 Transfer money between accounts
Online banking also allows you to transfer money between accounts much More
quickly. It is more convenient than using the automated phone Service, , and can save
you a trip to the bank. When you apply or set up Your online banking, , be sure that
all of the accounts you have at the Bank are listed. This will make it easier to transfer
money and make loan Payments online.
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Disadvantages of Bank
Setting up an account Legal issues Learning difficulties

may take time
Site changes and Customer service Internet account

upgrades
Security concern Switching banks Money usage
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 Setting up an account may take time :-
In order to register for your bank's online program, you will probably have to provide
ID and sign a form at a bank branch. Some banks even ask for photos.
 Legal issues:-
If you and your spouse wish to view and manage your assets together online, one of
you may have to sign a durable power of attorney before the bank will display all of
your holdings together.
 Learning difficulties:-
Banking sites can be difficult to navigate at first. Getting acquitted with the banking
sites software may require some time to read the tutorials in order to become
comfortable in your virtual lobby.
 Site changes and upgrades:-
Even the largest banks periodically upgrade their online programs, adding new
features in unfamiliar places. In some cases, you may have to re-enter account
information.
 Customer service :-
There is no personal contact with any of the staff, and if talk to any staff through the
telephone, you have guarantee you are talking to the best person available.
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 Internet account:-
You need to get an account with an Internet Service Provider (ISP) which may be
another hectic experience.
 Security concern:-
Even though online banking sites are heavily encrypted, with the developing
technology, it’s hard to rule out the "hackers" who may access your bank accounts.
 Switching banks:-
This can be more cumbersome online than in person.
 Money usage:-
You can’t spend your money from the online bank account as you wish, in the end;
you will need to go to an ATM to withdraw money for usage.
However, even though online banking has some disadvantages, the advantages with no doubt
outweigh. It is there for important for everyone to prepare for the unknown with an online
bank account.
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CHAPTER 3
ROLE OF BANKS
Meaning :-
A proper financial sector is of special importance for the economic growth of developing and
underdeveloped countries. The commercial banking sector which forms one of the backbones
of the financial sector should be well organized and efficient for the growth dynamics of
a growing economy. No underdeveloped country can progress without first setting up a sound
system of commercial banking.
The importance of a sound system of

commercial banking for a developing country
may be depicted as follows:
Capital Formation:-
The rate of saving is generally low in an

underdeveloped economy due to the existence of
deep-rooted poverty among the people. Even the
potential savings of the country cannot be
realized due to lack of adequate banking facilities
in the country. To mobilized ormant savings and to make them available to the entrepreneurs
for productive purposes, the development of a sound system of commercial banking is
essential for a developing economy.
Monetization:-
An underdeveloped economy is characterized by the existence of a large non-monetized

sector, particularly, in the backward and inaccessible areas of the country. The existence of
this non monetized sector is a hindrance in the economic development of the country. The
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banks, by opening branches in rural and backward areas, can promote the process of
monetization in the economy.
Innovations:-
Innovations are an essential prerequisite for economic progress. These innovations are mostly
financed by bank credit in the developed countries. But the entrepreneurs in underdeveloped
countries cannot bring about these innovations for lack of bank credit in an adequate
measure. The banks should, therefore, pay special attention to the financing of business
innovations by providing adequate and cheap credit to entrepreneurs.
Finance for Priority Sectors:-
The commercial banks in underdeveloped countries generally hesitate in extending financial

accommodation to such sectors as agriculture and small scale industries, on account of
the risks involved there in. They mostly development of these countries it is essential that the
banks take risk in extending credit facilities to the priority sectors , such as agriculture and
small scale industries extend credit to trade and commerce where the risk involved is far less.
Provision for Medium and Long term Finance: -
The commercial banks in underdeveloped countries invariably give loans and advances for a
short period of time. They generally hesitate to extend medium and long term loans to
businessmen. As is wellknown, the new business needs medium and long term loans for their
proper establishment. The commercial banks should, therefore, change their policies in favor
of granting medium and long term accommodation to business and industry.
Cheap Money Policy:-
The commercial banks in an underdeveloped economy should follow cheap money policy to
stimulate economic activity or to meet the threat of business recession. In fact, cheap money
policy is the only policy which can help promote the economic growth of an underdeveloped
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country. It is heartening to note that recently the commercial banks have reduced their
lending interest rates considerably.
Need for a Sound Banking System:-
A sound system of commercial banking is an essential prerequisite for the economic

development of a backward country.
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RESERVE BANK OF INDIA
The Reserve Bank of India is the Central bank of the country Established in 1935, its
functions and focus have evolved in
response to the changing economic
environment. Its history is not only
intrinsically interwoven with the
economic and financial history of the
country, but also gives insights into the
thought processes that have helped shape
the country's economic policies. Here we
present some facets of the Bank's history
for the layperson. We look forward to the
viewer's suggestions and comments."
GUIDELINES OF R.B.I :-
 The initial minimum paid-up capital for a new bank shall be Rs.200 crore.
The initial capital will be raised to Rs.300 crore within three years of commencement
of business. The overall capital structure of the proposed bank including the
authorized capital shall be approved by the RBI.
 The promoters’ contribution shall be a minimum of 40 per cent of the paid-up capital
of the bank at any point of time. The initial capital, other than the promoters’
contribution, could be raised through public issue or private placement. In case the
promoters’ contribution to the initial capital is in excess of the minimum proportion of
40 per cent, they shall stretch their excess share after one year of the bank’s
operations.
 While augmenting capital to Rs.300 crore within three years of commencement of

business, the promoters will have to bring in additional capital, which would be at
least 40 per cent of the fresh capital raised.
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Theremaining portion could be raised through public issue or private placement. The
promoters’ contribution of a minimum of 40% of additional capital will also be
locked in for a minimum period of 5 years from the date of receipt of capital by the
bank.
 The new bank should not be promoted by a large industrial house. However,
individual companies, directly or indirectly connected with large industrial houses
may be permitted to participate in the equity of a new private sector bank up to a
maximum of 10 per cent but will not have controlling interest in
the bank. The 10 per cent limit would apply to all inter- connected companies
belonging to the concerned large industrial houses. In taking a view on whether the
companies, either as promoters or investors, belong to a large industrial house or
to a company connected to a large industrial house, the decision of the RBI will
be final.
 The proposed bank shall maintain an arm’s length relationship with business entities
in the promoter group and the individual companies investing upto10% of the equity
as stipulated above. It shall not extend any credit facilities to the promoters and
companies investing up to 10 per cent of the equity. The relationship between
business entities in the promoter group and the proposed bank shall be of a similar
nature as between two independent and unconnected entities. In taking view on
whether a company belongs to a particular Promoter Group or not, the decision of
RBI shall be final.
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Bank Deposits and Reserves :-
The monetary base is created by the Fed when it buys securities for its own portfolio. Bank
deposits themselves are not base money rather they are claims on base money. A bank must
hold reserves of base money in order to meet its depositors' cash withdrawals and to cover the
checks written against their accounts. Reserves comprise a bank's vault cash and what it
holds on deposit at the Fed, known as Fed funds. The Fed requires banks to maintain
reserves of at least 10% of their demand deposits, averaged over successive 14-day periods.
Movement of Bank Reserves :-
When a depositor writes a check against his account, his bank must surrender that amount in
reserves to the payee’s bank for the check to clear. Reserves are constantly moving from one
bank to another as checks are written and
cleared. At the end of the day, some
banks will be short of reserves and others
long. Banks redistribute reserves among
themselves by trading in the Fed funds
market. Those long on reserves will
normally lend to those short. The
annualized interest rate on interbank
loans is known as the Fed funds rate, and
varies with supply and demand.
The reserve requirement applies only to the bank's demand deposits, not its term or savings
deposits. Thus when a bank depositor converts funds in a demand deposit into a term or
savings deposit, he frees up the reserves that were held against the demand deposit. For
example, it can hold them to back further lending, buy interest-earning Treasury securities, or
lend them to other banks in the Fed funds market.
Controlling the Fed Funds Rate :-
The supply of reserves changes whenever base money enters or leaves the banking system.
This occurs when the Fed buys or sells securities or when the public deposits or withdraws
cash from banks. The demand for reserves changes whenever total demand deposits change,
which occurs when banks increase or decrease aggregate lending. The Fed controls the Fed
27
funds rate by adjusting the supply of reserves to meet the demand at its target interest rate. It
does so by adding or draining reserves through its open market operations.
The Fed funds rate effectively sets the upper limit on the cost of reserves to banks, and thus
determines the interest rates that banks must charge the public for loans. Bank interest rates
influence the demand for loans, and thereby the net amount of bank lending. That in turn
determines the liquidity of the private sector, which is important in terms of aggregate
demand and inflationary pressures. The selection and control of the Fed funds rate is the key
monetary policy instrument of the Fed.
Effects of Government Spending :-
The Fed acts as a depository for the Treasury as well as member banks. All government
spending is paid out of the Treasury's account at the Fed. Whenever the government spends,
the Fed debits the Treasury's account and credits the Fed account of the payee’s bank. The
Treasury replenishes its Fed account with transfers from its commercial bank accounts where
it deposits the receipts from taxes, and the sale of its securities.
In order to minimize variations in aggregate banking system reserves, the Treasury maintains
a nearly constant balance in its Fed account. In effect, Treasury payments are simply
transfers from its commercial bank accounts to the bank accounts of the public. Funds move
in the reverse direction when the public pays taxes or buys securities from the Treasury. The
Treasury must maintain a positive balance in its commercial bank accounts to avoid having to
borrow directly from the Fed. However it has no need for, and does not accumulate, balances
in excess of its near-term payment obligations.
On average, government spending does not affect the aggregate bank deposits of the private
sector. The Treasury sells or redeems securities as required to balance its inflows against
outflows. However short-term variations occur because receipts cannot be synchronized with
spending. Banking system reserves remain essentially unaffected by government spending
because the Treasury transfers funds from its commercial bank accounts to replace the funds
spent out of its Fed account.
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CHAPTER 4
TYPES OF BANKS
Commercial Bank
Cooperative Bank
Investment Bank
Specialized Bank
Central Bank
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Although banking is said to have originated in the affluent cities of Italy in the 14th century,
it was introduced in India in the late 18th century. The first banks to come up in the country
were Bank of Hindustan (1770), The General Bank of India (1786), and the State Bank of
India (1806). The banking system has come along way and the banking sector has witnessed
a rapid growth in the country in the past few decades. The Reserve Bank of India functions as
the central bank and has a control over all the nationalized banks of the country.
There are various types of banks and they can be divided into some of the following
categories:
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COMMERCIAL BANKS
These banks function to help the entrepreneurs and businesses. They give financial services
to these businessmen like debit cards, banks accounts, short term deposits, etc. with the
money people deposit in such banks. They also lend money to businessmen in the form of
overdrafts, credit cards, secured loans, unsecured loans and mortgage loans to businessmen.
The commercial banks in the country were nationalized in 1969. So the various policies
regarding the loans, rates of interest and loans etc are controlled by the Reserve Bank. These
days, the commercialized banks provide some services given by investment banks to their
clients.
The commercial banks can be further classifies as:
 Public sector bank,

 Private sector banks,
 Foreign banks and
 Regional banks.
 Public sector bank :-
These are owned and operated by the government, who has a major share in them.
The major focus of these banks is to serve the people rather earn profits. Some
examples of these banks include State Bank of India, Punjab National Bank, Bank of
Maharashtra, etc.
 Private sector banks :-
These are owned and operated by private institutes. They are free to operate and are
controlled by market forces. A greater share is held by private players and not the
government. For example, Axis Bank, Kotak Mahindra Bank etc.
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 Foreign banks :-
These are those that are based in a foreign country but have several branches in India.
Some examples of these banks include; HSBC, Standard Chartered Bank etc.
 Regional rural Banks :-
They were brought into operation with the objective of providing credit to the rural
and agricultural regions and were brought into effect in 1975 by RRB Act. These
banks are restricted to operate only in the areas specified by government of India.
These banks are owned by State Government and a sponsor bank. This sponsorship
was to be done by a nationalized bank and a State Cooperative bank. Prathama Bank
is one such example, which is located in Moradabad in U.P.
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COOPERATIVE BANKS
These banks are controlled, owned, managed and operated by cooperative societies and came
into existence under the Cooperative Societies Act in 1912. These banks are located in the
urban as well in the rural areas. Although these banks have the same functions as the
commercial banks, they provide finance to farmers, salaried people, small scale industries,
etc. and their rates of interest of interest are lower as compared to other banks.
There are three types of cooperative banks in India, namely:
 Primary credit societies :-
These are formed in small locality like a small town or a village. The members using
this bank usually know each other and the chance of committing fraud is minimal.
 Central cooperative banks:-
These banks have their members who belong to the same district. They function as
other commercial banks and provide loans to their members. They act as a link
between the state cooperative banks and the primary credit societies.
 State cooperative banks:-
These banks have a presence in all the states of the country and have their presence
throughout the state.
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INVESTMENT BANKS
These are financial institutions that provide financial and advisory assistance to their
customers. Their clients can be individuals, businesses, or government organizations. They
assist their customers to raise funds when required. These banks act as the underwriters for
their customers when they want to raise capital by issuing securities. In some cases, they also
help their customers to issue securities.
When there is a merger or an acquisition, they provide their customers with the necessary
support like marketing, foreign trading, foreign exchange, sale of equities, fixed income
instruments etc. Apart from raising capital, these banks render valuable financial advise to
their customers and various kinds of businesses. Some examples of these banks include, Bank
of America, Barclays Capital, Citi Bank, Deutsche Bank etc.
34
SPECIALIZED BANKS
These provide unique services to their customers. Some such banks include foreign exchange
banks, development banks, industrial banks, export import banks etc. These banks also
provide huge financial support to businesses and various kinds projects and traders who have
to import or export their goods or services.
CENTRAL BANK
The central bank is also called the banker's bank in any country. In India, the Reserve Bank
of India is the central bank. The Federal Reserve in USA and the Bank of England in UK
function as the central bank. This bank makes various monetary policies, decides the rates of
interest, controlling the other banks in the country, manages the foreign exchange rate and the
gold reserves and also issues paper currency in a country. The monetary control is the
primary function of a central bank in most countries and so they are considered as the lender
of last resort to various commercial banks.
The banking system has witnessed a huge growth and the competition amongst globalization,
and increased popularity of internet has made it vital for the banks keep up with the latest
technology trends. With the entry of the private and global banks in the market, the
competition amongst the banks has increased in the country. They provide a wide variety of
services other than borrowing and lending money to people.
35
CHAPTER 5
MARKETING IN BANK
Meaning :-
The ongoing process of economic reforms has completely changed the operational
environment for the whole banking industry in the country.Banks are now required to cope
with stiff competition in business and
alsothe complex regulatory norms regarding
capital adequacy and provisioning.Banks
are forced to adopt various marketing
techniques and approaches.Thus, marketing
has become imperative for all banks
including those in the public sector.Marketing
in banks can be stated as a new
phenomenon that is shaping wellover the
past one decade. Public sector bank hardly
considered marketing asa tool for business. The competition, deregulation that followed the
reformshas changed the environment for banks, where marketing has occupied
the place in the business of banks.
Today, marketing in the banking industry ischaracterized by many innovations in products

and services, use of advancedtechnology in product design, up gradation of delivery
system, advertisingand sales promotion activities, whether in public sector or private
sector.Banks now have a firm that marketing strategies alone can brighten t h e future of
banking business.
Marketing in banks has become synonymous with customer and banks

are found engaged in several activities of discovering, creating and satisfaction customer
needs. Indian banking is at cross roads today. With the deregula tion and liberalization
process in full swing, the consequent policy changes introduced in the Indian financial
system in general and banking in particular are effecting unprecedented changes in its
36
functioning. With the emergingchanges did spring up new challenges of commercial

viability, costeffectiveness, effective marketing strategy, etc..
MARKETING IN BANKING
Marketing approach in banking sector had taken significance after 1950 in western countries
and then after 1980 in Turkey. New banking perceptiveness oriented toward market had
influenced banks to create new market. Banks had started to perform marketing and planning
techniques in banking in order to be able to offer their new services efficiently.
Marketing scope in banking sector should be considered under the service marketing
framework. Performed marketing strategy is the case which is determination of the place of
financial institutions on customers’ mind. Bank marketing does not only include service
selling of the bank but also is the function which gets personality and image for bank on its
customers’ mind. On the other hand, financial marketing is the function which relates
uncongenitalies, differences and non similar applications between financial institutions and
judgments standards of their customers.
The reasons for marketing scope to have importance in banking and for banks to interest in
marketing subject can be arranged as:
Change in demographic structure:
Differentiation of population in the number and composition affect quality and attribute of
customer whom benefits from banking services.
Intense competition in financial service sector:
The competition became intense due to the growing international banking perceptiveness and
recently being none limiting for new enterprises in the sector. Increase in liberalization of
interest rates has intensified the competition.
37
Bank’s wish for increasing profit: Banks have to increase their profits to create new markets,
to protect and develop their market shares and to survive on the basis of intense competition
and demographic chance levels.
The marketing comprehensions that are performed by banks since 1950 can be shown as in
following five stages:
1. Promotion oriented marketing comprehension

2. Marketing comprehension based on having close relations for customers
3. Reformist marketing comprehension
4. Marketing comprehension that focused on specializing in certain areas
5. Research, planning and control oriented marketing comprehension
38
Role of Marketing in Banking
Before starting our discussion it is necessary that we should know that what is the definition
of the bank and the marketing than we can easily understand that role the marketing in the banking
sector.
Bank according to the Hartley withers :-
“A manufacturer of credit and a machine for facilitating exchanges” bank play vital role in
every country’s economy.
Because they daily involve in accuring funds andproviding loan to the individual persons, ind
ustry, corporate sector etc. Banks provide several types of services to their clients. We all
know well that now the era has changed and know people want innovation in everything so
that is why mostly banks are using the marketing approach for providing better services to
their clients.
Marketing defined :-
“The aniticipation, management, and satisfaction of demand through the exchange process”
The marketing management philosophy that holds achieving organizationalgoals
depends on knowing the needs and wants of target market and delivering the desired
satisfactions better than competitors. Now it is very crystal and clear that banking and
marketing are two different terminologies.
Before starting our discussion it is necessary that we should know that what is the definition
of the bank and the marketing than we can easily understand that role the marketing in the
banking sector.
In either case the ability to positively impact the public's perceptions of banks
requires creative and forth right marketing. Show me a successful business and I'll show you
a marketing success story. Those companies who had the foresight to dominate their
39
industries from the start enjoy the greatest perk afforded to any marketing campaign, said
perk being "Name-branding".
To this day we make "Xerox" copies, not "photo" copies. When our drains are clogged
we discuss "Rot rooting" them it is worth noting that the companies I've mentioned continue
to market, but they in the luxury position of only have to purchase "maintenance" marketing.
While costing considerably less than their previous dominant posture, it keeps them in the
public mind.
40
MARKETING
Advertising :-
Advertising or advertizing is a form of communication for marketing and used to encourage,

persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific
group) to continue or take some new action. Most commonly, the desired result is to drive
consumer behavior with respect to a commercial offering, although political and ideological
advertising is also common. This type of work belongs to a category called affective labor.
Branding :-
Livestock branding, the marking of animals to indicate ownership Human branding, as body
modification or punishment Branding (BDSM), bonding of the partners and marking of a
submissive Vehicle title branding, a permanent designation indicating that a vehicle has been
"written off" Brand, a name, logo, slogan, and/or design scheme associated with a product or
service Brand management, the application of marketing techniques to a specific product,
product line, or brand Employer branding, the application of brand management to
recruitment marketing and internal brand engagement Nation branding, the application of
marketing techniques for the advancement of a country Place branding, the application of
marketing techniques for the advancement of country subdivisions Personal branding, people
and their careers marketed as brands.
Research :-
"Research and experimental development (R&D) comprise creative work undertaken on a

systematic basis in order to increase the stock of knowledge, including knowledge of man,
culture and society, and the use of this stock of knowledge to devise new applications
considerably both within and between humanities and sciences. There are several forms of
research: scientific, humanities, artistic, economic, social, business, marketing, practitioner
research, etc.
41
Product :-
In marketing, a product is anything that can be offered to a market that might satisfy a want
or need. In retailing, products are called merchandise. In manufacturing, products are bought
as raw materials and sold as finished goods. Commodities are usually raw materials such as
metals and agricultural products, but a commodity can also be anything widely available in
the open market. In project management, products are the formal definition of the project
deliverables that make up or contribute to delivering the objectives of the project. In
insurance, the policies are considered products offered for sale by the insurance company that
created the contract.
Internet :-
Internet marketing, or online marketing, refers to advertising and marketing efforts that use
the Web and e-mail to drive direct sales via e-commerce as well as sales leads from Web sites
or emails. Internet marketing and online advertising efforts are typically used in conjunction
with traditional types of advertising like radio, television, newspapers and magazines.
42
Marketing of banking services
In the earlier days bankers like any other private sector organizations had their own plans of
business development and adopted their own ways and means to achieve their objectives. The
Marketing concept was in the form of advertising and promotion. This was the position till
the middle of 20th century.
Gradually there was a change in the attitude of bankers with respect to customers. In the late
1950s, new concept in the Marketing Services with respect to Banking profession, arose in
the West. Deryk-Weyer of Barcelays Bank camr out with a comprehensive definition of
Bank Marketing.
According to him, Bank Marketing consists of identifying the most profitable markets now
and in future, assessing the present and future needs of the customers, setting business
development goals, marketing plan to meet them and managing the various services and
promoting them to achieve the plans-all in the context ofo changing environment in the
market.
Thus, the idea of customer satisfaction arose in the 1950s flourished in the 1960s and
became an integral part of Banking Services in 1970s. In the course of time, the concept of
Marketing widened further. From the stage of customers satisfactions, the Marketing become
more concerned with the well-being of the ‘Society’ as a whole and resulted in coining the
term “SOCIETAL MARKETING”. Hartley would call it as Response Marketing attuning
with or responding to the changing needs of customers society and environment.
Thus, the concept of Bank Marketing assumed new weights and dimensions.
Marketing of banking services is concerned with product, place, distribution, pricing and
promotion decisions in the changing, socio-economic and business environment. It means
organizing right activites and programmes at the right place, at the right time, at a fight piece
with right communication and promotion.
The users of banking services of he prospects play a very significant role in the formulation
of overall marketing strategies. The bank marketing activities are concerned with the
designing of product strategies keeping in view the needs and repuirement of prospects. It is
also related with the place decisions i.e. location of a bank at suitable points.
43
Chapter 6
TYPES OF MARKETING
TRADITIONAL MARKETING
INTERNAL MARKETING
INTERACTIVE MARKETING
44
TRADITIONAL MARKETING
Traditional marketing is a rather broad category that incorporates many forms of advertising
and marketing. It's the most recognizable typse of marketing, encompassing the
advertisements that we see and hear every day. Most traditional marketing strategies fall
under one of four categories: print, broadcast, direct mail, and telephone. Print marketing is
the oldest form of traditional marketing. Loosely defined as advertising in paper form, this
strategy has been in use since ancient times, when Egyptians created sales messages and
wall posters on papyrus. Today, print marketing usually refers to advertising space in
newspapers, magazines, newsletters, and other printed materials intended for distribution.
Broadcast marketing includes television and radio advertisements. Radio broadcasts have
been around since the 1900s, and the first commercial broadcast—a radio program supported
by on-air advertisements—aired on November 2, 1920. Television, the next step in
entertainment technology, was quicker to adopt advertising, with less than ten years between
its inception and the first television commercial in 1941.
Direct mail marketing uses printed material like postcards, brochures, letters, catalogs, and
fliers sent through postal mail to attract consumers. One of the earliest and most well-known
examples of direct mail is the Sears Catalog, which was first mailed to consumers in 1888.
Telephone marketing, or telemarketing, is the practice of delivering sales messages over the
phone to convince consumers to buy a product or service. This form of marketing has become
somewhat controversial in the modern age, with many telemarketers using aggressive sales
tactics. The U.S. federal government has passed strict laws governing the use of
telemarketing to combat some of this technique
45
INTERNAL MARKETING
Internal marketing is inward facing marketing. Internal marketing is used by marketers to

motivate all functions to satisfy customers. With internal marketing the marketer is really
extending and developing the foundations of marketing such as the marketing concept,
the exchange process and customer satisfaction to internal customers. Internal customers
would be anybody involved in delivering value to the final customer. This will include
internal functions within business with which marketing people interact including research
and development, production/operations/Logistics, human resources, IT and customer
services.
A marketing company would embed the basic principles of marketing such as company
vision and mission, its overarching objectives, its business strategy, marketing tactics i.e. the
marketing mix, and finally how we measure marketing success.
It's important that a company recruits the right people. Marketing companies want people that
are motivated by its products and services. Take Apple for example. If you visit an Apple
store there is a purposefully designed customer experience, part of which is communicated by
the Apple people. They are enthusiastic and very knowledgeable and actually uphold Apple
principles and brand. They are purposely recruited, they are trained and retained, which is all
part of human resource management and also a successful internal marketing program.
46
INTERACTIVE MARKETING
Interactive marketing is a one to one marketing process that reacts and changes based on the
actions of individual customers and prospects. This ability to react to the actions of customers
and prospects means that trigger based marketing is dramatically more effective than normal
direct marketing. Interactive marketing is typically 2-12 times more effective than traditional
direct marketing.
Interactive marketing is called many things. You may have heard it called event based
marketing or event driven marketing or even trigger based marketing but it is all the same
idea: reacting to what the customer is doing and driving up marketing effectiveness.
Interactive Marketing refers to the evolving trend in marketing whereby marketing has
moved from a transaction-based effort to a conversation. The definition of interactive
marketing comes from John Deighton at Harvard, who says interactive marketing is the
ability to address the customer, remember what the customer says and address the customer
again in a way that illustrates that we remember what the customer has told us (Deighton
1996).
Many moons ago, someone asked me what the difference between advertising and marketing
is. I replied with the metaphor of fishing, applying that advertising is the event or medium,
but marketing was the strategy. With regard to fishing, I can grab a pole and hit a lake today
and see what I catch. That’s advertising… waving a worm and seeing who bites. Marketing,
on the other hand, is the professional fisherman who researches the fish, the bait, the
temperature, the weather, the season, the water, the depth, etc. By charting and analyzing, this
fisherman is able to catch bigger and more fish by constructing a strategy.
47
Marketing in Banking Sector
 Barter System Barter is direct exchange of commodity for commodity.

Disadvantages: Lack of Double Coincidence of Wants. Lack of Divisibility.
 Money is anything that can serve as a medium of exchange and has general
acceptability, measure of value and store of value. Commodity Money Metallic
Money Paper Money Bank or Credit Money.
 An institution which receives funds from the Control the public and supply ofgives
loans and Money and advances to Credit. Those who needs it.The Banks can With the
Aim of create Credit making Profit, i.e., Creation of it is regarded as Additional
commercial Money for institution. Lending.
 The First Bank in India called The General Bank of India (1786). The East India
Company established The Bank of Bengal (1809). The next bank was Bank of
Hindustan (1870). Allahabad Bank (1865) was the first Bank, completely run by
Indians. Punjab National Bank Ltd. set up in 1894. Reserve Bank of India in April 1,
1935.
 Capital Innovations Formation Finance for Priority Sectors. Provision for Medium
and Long term Monetization Finance.
 Private Sector Regional Rural State/Central Banks Commercial Co-operative Private

bank Banks Non Banking Finance Primary Credit Public Sector Companies Societies
(NBFCs)Central Bank (RBI) Foreign Indian Financial Institutions Term Financial
Institutions State Finance Corporations (SFCs).
 RBI seal RBI headquarters Mumbai, Maharashtra.
 Headquarters Mumbai, Maharashtra Established 1 April 1935 Governor Dr Duwuri

Subbarao Currency Indian rupee Code INR Reserves US$30,210 crore (US$302.1
billion).
48
 It is Indians central banking institution Controls the monetary policy of IndiaBank of

issueRegulator and supervisor of the financial system Issuer of currency Banker of
Banks Detection of Fake currency.
 “Bank marketing is the aggregate offunctions, directed at providingservices to satisfy

customers financial (and other related) needs and wants, more effectively and
efficiently thanthe competitors keeping in view theorganizational objectives of the
bank.”
49
50
Chapter 7
MARKETING STRATEGIES OF THE
BANKING INDUSTRY
Banking Industry is one of the most important service industries which touch the lives of
inillions of people. Its service is unique both in social and economic points of view of a
nation. Earlier the attitude of banking service was that it was not professional to sell one's
services quality of products were sufficient to carry forward the tasks. Before the mid 1950's
the banks had no understanding or regard for marketing.
The interior was austere and the teller

rarely smiled. Bankers maintained
austere dignity and they hardly
maintained friendliness.
It was in the late 1950's that marketing

in banking industry emerged in the
west. It emergence was in the form of
advertising and promotion concept.
The idea of customers' satisfaction began in the late 1950's, flourished in 1960's and became
an integral part of the banking services in the 1970's. But the same trend could not be
applicable, especially in developing countries and to be more specific in India because of
socio-economic and political reasons.
Marketing came into Indian banks in the late 1950's not in the form of marketing concept but
in the forms of advertising and promotion concept. Soon it was realised that marketing
transcends advertlslng and friendliness'.
Marketing positions in banks were created and marketing was accepted as an organisational
imperative. When modern managers the world over are busy having their marketing skills,
bankers in India can ill-afford to shlug it off and keep away from global changes in banking
51
which are in favour of "Optimal satisfaction of custoniers' wants and creation of customers
for novel products".
The traditional description hardly suffices today's needs. Due to this, banks approaches
towards customers and market underwent changes and focus was gradually shifted to
marketing their products.
EMERGING CHALLENGES & NEW STRATEGIES
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 a aggregate of function directed
at providing service to satisfy customer’s financial needs and wants, more effectively than the
competition keeping in view the organizational objective of the bank.
Product and Service :-
A product is defined as “Anything that has the capacity to provide the satisfaction use or
perhaps, the profit desired by the customer”. Product and service are the words used
interchangeably in banking parlance. The bank products are deposit, borrowing or other
product like credit card or foreign exchange transaction which are tangible and measurable
whereas service can be such products plus the way/manner in which they are offered that can
be expressed but cannot be measured i.e. intangibles.Better service is more important than
just a good product in the marketing of banking service, so the focus should be on the want
and need of satisfying that product or service.
52
Marketing Approach to Banking Services :-
 Identifying the customer’s financial needs and wants.
 Develop appropriate banking products and services to meet customer’s 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.
53
Traditional Banking
Evolution of bank marketing in India Traditional Banking. This period is also known as Pre-
nationalisation period. The basic symbol of this period was strong accounting orientation of
bankers down the time. In
other words, meticulous
maintenance of accounts
books and an inward-
looking approach in
transacting business with
the customer. Investment
of banks hnds is based on
liquidity principles. In
loaning, the quality of security is more important and the requirement of the customer gets
least importance. The customer was presented with readymade banking products with an
option to take it or leave it. Due to the limited banking network then available, the customer
had little alternatives.
Development Banking Period : It is otherwise known as post-nationalisation period. There

was dramatic change with the nationalisation of 14 major commercial banks in 1969.
Inspired by the well-known socio-economic objectives of nationalization went in for

phenomenal branch expansion during the seventies to cover every nook and comer of the
country. Financial assistance on a very large scale was made available to the economically
weaker sections of the society The sheer magnitude of development banking effort
undertaken by public sector banks during this period remains unmatched by the banking
industry anywhere else in the world.
54
Financial Intermediation
Financial Intermediation In
another angle, the banker
brings together those who have
surplus fund and thosr who are
in need of it. This has been the
process for the last few decades
in India. Now due to the
opening of new avenues for
both deployment of surplus
fund and also for securing
funds, meeting of depositor and
borrower via banks are now meeting without the mediation of bank. There are a number of
non-banking alternat~ves for the depositor like share market, Post-office saving, UTI, mutual
funds and company fixed deposit. All these are investment avenues and many other similar
ones have flooded in to the Indian financial market. Furthermore, it is an unavoidable process
of rapid economic growth. The outcome of these processes is undermining the traditional
banking function of intermediary between investors and Borrowers.
55
Financial Disintermediation
Financial Disintermediation The baslc outcome is that the process of financial

disintermediation cut tlic. Roof of
traditional banking. On the one side,
deposit mobilisation is threatened because
of alternative lucrative investment avenues
are available to depositors. In a nutshell,
financial disintermediation has created a
serious threat to the very survival and
growth of basic banking activities. In such
a situation, banks have been frantically
looking for alternatives to survive and thrive. It is here that bank marketing came to their
rescue. With its emphasis on the centrality of the customer to entire banking operations, the
bank marketing concept has provided a way out in the form oi' a host of new banking services
and instruments. Another face of the growth of Indian economy in recent years has been the
fantastic increase in needs and expectation of banking customers, Important factors for this
change are:
- The spread of Television, including access to international channels,
- Rise of Indian middle-class with considerable financial resources ant1 furthermore, a

higher propensity towards consumption,
- Entry of foreign and private sector banks in India,
- Break-up of the joint family system in urban India, and
- Govt. intervention for protecting the interest of consumers.
All these and similar other developments have combined to produce a typical bank customer
who is no longer prepared to accept things lying down. HI: has started harboring higher-
expectations from banks to fulfill his newfound needs and has become quite articulate about
56
them". Now due to the change in the attitude of' customers, banks cannot continue with their
"take it or leave it" attitudes. If they do so they will lose their customers because customers
have a number of other options. So banks must be closer to the customer in order to satisfy
them. In other words, this is exactly what bank marketing is. An offshoot of economic
liberalisation is the phenomenal growth in competition in the banking industry.
57
CHAPTER 8
BANK MARKETING
Introduction and communications services :-
We have worked on many successful bank projects including advertising, direct marketing
and internet marketing.
We combine a maturity that translates into a
strategic approach to bank marketing combined
with the ability to execute creative marketing
programs. The marketing circle illustrates our view
that the marketing process must be based on
research – whether this is research undertaken
before a marketing campaign, for example, to
segment the market place or discover a need for a
new product, or following a campaign, to measure
the return on investment of a marketing campaign.
The marketing process :-
The marketing process must also be: strategic - to coin a travel analogy, to make sure the
preferred destination is known before embarking on the journey planned - budgets need to be
applied in a logical, orderly and pre-planned way to ensure that all expenses are focused to
meet the strategic objectives, and creative - prospects and clients are bombarded with
hundreds of marketing messages every day. It is beholden on the marketer to continually look
for ways of getting attention.
Annual Report designed by Billy Fire LLC for Discovery Bank. The report was printed and
delivered as a PDF.
58
Both the research circle and the strategy, planning and creativity circles should ‘surround’ the
marketing tactics which are focused on Pricing, channel, promotion and products and
services.
Billy Fire Advantages :-
In providing marketing services to the banking industry, Billy Fire has the following
advantages:
Because we have strong big and small company corporate marketing experience, we are more
that just a marketing ‘odd job’ provider. We understand how the whole marketing plan fits
together and the importance of balancing the many marketing disciplines.
Our ‘big budget’ experience includes managing multi million dollar budgets and running
various programs including large scale exhibitions and events. Our ‘smaller budget’
experience has included maximizing the worth of every marketing dollar. Examples of our
projects include:
Creating high value multi-media materials that would have cost tend of thousands of dollars,
for a fraction of the cost.
Creating a succession of conference

speaking opportunities writing
articles for industry publications.
Working with industry ‘partners’ to
increase the size of our ‘marketing
footprint’
Moving from an expensive, printed
in-house newspaper, to a less
expensive e-newsletter
59
Although we have our specific areas of expertise, we understand the entire marketing milieu
and hence would never steer a company in one direction because it is more suited to our
expertise.
60
Strategies for the enhancement of bank marketing
In the fierce competitive market, needs of customer keep changing. Hence, our marketing
strategy must be dynamic and flexible to meet the changing scenario. Here are steps that form
successful and effective marketing strategy for bank products.
Emphasis on Deposits :-
Emphasis, though in a discrete manner, should be given to mobilize more of term deposits as
they aremore profitable for the bank in comparison to demand. Introduction of products
comparable to “Kisan Vikas Patra” of post office and product with the facility of tax rebate
under section 88 of Income Tax Act will of much help in this regard.
Form a Saleable Product Scheme :-
Bank should form a scheme that meets the needs of customers. A bunch of such schemes can
also form a product. A bank product may include deposit scheme, an account offering more
flexibilities, technically sound banking, tele/mobile/net banking, an innovative scheme
targeted to special group of customers like children, females, old aged persons, businessman
etc. In short, a bank product may consist of anything that you offer to customers.
Effective Branding :-
Man is a bundle of sentiments and emotions. This can effectively be helpful in branding our
products. Considering the features of products and target group of customers, the product can
be effectively branded so as to sound it catchy and appealing. Some proven examples are
Apna Ghar, Dhan Laxmi, Kuber, Flexi Deposit, Smart Kid, Sapney, Vidya etc.
The branding should be done in such a way that the brand name must attract the attention of
customers. It should be easy to remember. The target group and the silent feature of the
product should resemble brand name. This will help a lot in making the brand successful. All
61
employees and all our campaigns should refer the product by its brand name only so that to
strike the same in the customer’s mind.
Products for Women
The national perspective plan for women states that 94 pc of women workers are engaged in
the unorganized sector and 83 pc of these in agriculture and allied activities like dairy, animal
husbandry, sericulture, handloom, handcrafts and forestry. Banks should do something to
improve their access to credit which they require.
Customer Awareness
There is a need to educate the customers on bank products. Efforts should be made to widen
and deepen the process of information flow for the benefit and education of Indian customers.
Today, the customers do not have any idea as to how much time is required for any type of
banking service. The rural customers are not aware for what purpose the loans are available
and how they can be availed. Customers do not know the complete rules, regulations and
procedures of the bank and bankers preserve them for themselves and do not take interest in
educating the customers. It is a need to educate the customers from the grassroots of banking.
It is time that each bank branch takes steps to educate the customers on all banking function,
which will facilitate growth of banking on healthy lines both qualitatively and quantitatively.
Advertisement
Advertisement is an eminent part of marketing of bank products. Advertisement should be

such that appeals to people. It should not follow the orthodox pattern of narrating a product.
For effective advertisement, bank should understand people’s tastes and choices.
Selling Products in Rural Areas
For enhancing the marketing of their product, bank should sell their products in rural areas.
For it, there is a need to open branches in the rural areas.
62
Informing Customers about Products

The bank should embark upon aggressive marketing of its products, particularly at the time of
launching a new product, which will inform the perspective customers regarding product and
at the same time relieve staff at branch level from explaining the product to all customers.
Customer Convenience
In a service industry like banking where product differential is hard to maintain and quality of
service depends upon the service provider, from whom it cannot be separated. So the bank
employees have to render services to the satisfaction of the customer, not as per their own
conveniences or whims.
Re-orient Staff
Sincerity of efforts in implementation of the measures is lacking among the bank staff. It is a
fact that its employees are not able to rise up to the expectations of its customers. They lack
in their behavior, attitude and efficiency. The phenomenon is glaring at urban centers.
Therefore, it calls for an immediate attention which is missing link in the entire process of
marketing, and the bank should undertake all such steps to motivate and reorient its staff.
Sale of Products and Services through E-delivery Channels
After the Information Technology Act, many new e-delivery products have been introduced.
These e-delivery channels are very helpful in enhancing the marketing of various products
and services. Thus Indian banks should sale the products and services through e-delivery
channels.
Sale of Products and Services through Web-sites
Internet is a network of network which connects the world. Thus, banks should sale their
products through web-site. This will enhance the marketing of the products not only at the
national but also at the international level.
63
Implication :-
Thus the study implies that for a successful and effective banking marketing of bank products
is a necessary condition. This condition can only be fulfilling only by attracting the more and
more customers. Thus, bank should make only policies which are helpful in fulfilling the
needs of customers.
64
Bank Marketing in Indian Environment
In the past, the Banks did not find any attraction in the Indian Economy due to the low level
of economic activities and meager business levels. Though the SBI was set up as early in the
19th century in order to extend credit facilities backward regions remained neglected till
independence.
However, with the dawn of independence, the developmental activities, underwent radical
changes. Indian Constitution assigned top most priority to social welfare and eradication of
economic imbalances. The introduction to Five Year Plans to whole gave new dimension to
the banking section. It paved the way for the emergence of commercial banks; Co-operative
banks and Regional Rural banks.
But when the private sector banks failed in delivering goods to the society, it resulted in the
nationalization of 14 commercial banks in 1969. With this, a radical change in the banking
policy came into being.
The Entrepreneurs needed large scale facilities at liberal terms and conditions. The rural
population also had to depend on the banking sector to improve their economy. Hence, the
bankers had to develop need strategies, keeping in view the commercial and social goals.
The policies adopted by the Government also played an important role in streamlining the
strategies of banking profession.
On one hand they have to mobilize deposits for their existence and on the other hand they
have to be very liberal in providing credit facilities to the needed. It is really a challenging
task for the bankers and therefore new strategies have to be evolved to maintain balance.
65
Conclusion
Banking sector reforms have changed the traditional way of doing banking business. Mainly
technology is the outcome of banking reforms. Customer is now the king and customer focus
or satisfaction of customer is the main aim of the banks. With the introduction of new
products and services competition has grown up among the banks. Only those banks will
survive who face the competition with the effective ways of marketing.
Banks provide security and convenience for managing your money and sometimes allow you
to make money by earning interest. Convenience and fees are two of the most important
things to consider when choosing a bank.
Writing and depositing checks are perhaps the most fundamental ways to move money in and
out of a checking account, but advancements in technology have added ATM and debit card
transaction and ACM transfers to the mix.
All banks have rules about how long it takes to access your deposit, how many debit card
transactions you’re allowed in a day, and how much cash you can withdraw from an ATM.
Access to balance in your checking account can also be limited by businesses that place holds
on your funds.
Debit cards provide easy access to the cash in your account, but can cause you to rack up fees
if you’re not careful.
While debit cards encourage more responsible spending than credit cards, they do not offer
the same protection or perks to consumer
66
BIBLIOGRAPHY
 www.net/pratikaloni/marketing-in-banking-sector
 En.wikipedia.org/wiki/bank
 En.wikipedia.org/wiki/wholesale_banking
 En.wikipedia.org/wiki/money_market_in_india
67

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Acknowledgement is nothing but expressing thanks and adding truth

I whole heartedly thanks all the concerned people at college as well as

I further thanks especially to my guide Prof. ,for

 To enhance knowledge about our banking sectors.

Sr. No. Chapter Page No.

Marketing is an important social economic activity. It is an essential activity for the

Traditional and Modern Concept of Marketing

 Satisfaction of human needs and wants

IDENTIFICATIO PAYMENT AND

 Acceptance of money deposits :-

 Payment and withdraws :-

PROVIDE SERVICE ONLINE BANKING

PAY YOURS BILL

VIEW YOUR TRANSFER MONEY

 Pay yours bill online:-

 View your transactions :-

 Transfer money between accounts

Setting up an account Legal issues Learning difficulties

Site changes and Customer service Internet account

Security concern Switching banks Money usage

 Setting up an account may take time :-

 Site changes and upgrades:-

This can be more cumbersome online than in person.

The importance of a sound system of

The rate of saving is generally low in an

An underdeveloped economy is characterized by the existence of a large non-monetized

Finance for Priority Sectors:-

The commercial banks in underdeveloped countries generally hesitate in extending financial

Provision for Medium and Long term Finance: -

Cheap Money Policy:-

Need for a Sound Banking System:-

A sound system of commercial banking is an essential prerequisite for the economic

RESERVE BANK OF INDIA

 While augmenting capital to Rs.300 crore within three years of commencement of

Bank Deposits and Reserves :-

Movement of Bank Reserves :-

Controlling the Fed Funds Rate :-

Effects of Government Spending :-

The commercial banks can be further classifies as:

 Public sector bank,

 Public sector bank :-

 Private sector banks :-

 Regional rural Banks :-

There are three types of cooperative banks in India, namely:

 Primary credit societies :-

 Central cooperative banks:-

 State cooperative banks:-

Today, marketing in the banking industry ischaracterized by many innovations in products

Marketing in banks has become synonymous with customer and banks

functioning. With the emergingchanges did spring up new challenges of commercial

Change in demographic structure:

Intense competition in financial service sector:

1. Promotion oriented marketing comprehension

Role of Marketing in Banking

Bank according to the Hartley withers :-

Advertising or advertizing is a form of communication for marketing and used to encourage,

"Research and experimental development (R&D) comprise creative work undertaken on a

Marketing of banking services

Internal marketing is inward facing marketing. Internal marketing is used by marketers to

Marketing in Banking Sector

 Barter System Barter is direct exchange of commodity for commodity.