1.

1 Meaning

Service marketing is a specialised branch of marketing. Services marketing emerged as a

separate field of study in the early 1980s, following the recognition that the unique
characteristics of services required different strategies compared with the marketing of physical
goods.

Services marketing typically refers to both business to consumer (B2C) and business-to-
business (B2B) services, and includes marketing of services such as telecommunications
services, financial services, all types of hospitality, tourism leisure and entertainment
services, car rental services, health care services and professional services and trade services.
Service marketers often use an expanded marketing mix which consists of the seven Ps:
product, price, place, promotion, people, physical evidence and process. A contemporary
approach, known as service-dominant logic, argues that the demarcation between products and
services that persisted throughout the 20th century was artificial and has obscured that everyone
sells service. The S-D logic approach is changing the way that marketers understand value-
creation and is changing concepts of the consumer's role in service delivery processes.
1.2 Definition

The American Marketing Association defines services marketing as an organisational function

and a set of processes for identifying or creating, communicating, and delivering value to
customers and for managing customer relationship in a way that benefit the organisation and
stake-holders. Services are (usually) intangible economic activities offered by one party to
another. Often time-based, services performed bring about desired results to recipients, objects,
or other assets for which purchasers have responsibility. In exchange for money, time, and
effort, service customers expect value from access to goods, labor, professional skills, facilities,
networks, and systems; but they do not normally take ownership of any of the physical elements
involved.[1]

A service encounter can be defined as the duration in which a customer interacts with a
service. The customer's interactions with a service provider typically involve face-to-face
contact with service personnel, in addition to interactions with the physical elements of the
service environment including the facilities and equipment.
1.3About Service Marketing Strategies

Services marketing strategy focuses on delivering processes, experiences, and intangibles to

customers rather than physical goods and transactions. It involves integrating a focus on the
customer throughout the firm and across all functions. All company functions – marketing,
selling, human resources, operations, and R&D – must work together to create effective
services marketing strategy. Rather than the traditional goods marketing focus on transactions
and exchange, services marketing strategy is centered on the customer, usage, and relationships
(Vargo and Lusch, 2004a). Services, which can be defined as deeds, processes, and
performances, fall into several categories. Many services, such as hotels, transportation, and
health care, are offerings in and of themselves and are the primary revenue-producing activities
of the firms. Another category of service is customer service, which includes the service
provided in support of a company’s core products. Typically, customer service does not directly
produce revenue but rather addresses customer requests, questions, and complaints, besides
providing answers and solutions. Service can also be a value-add for manufactured products –
many companies provide training, installation, and repair services for the goods they produce
– often for a fee. Finally, many services are derived from or are provided by manufactured
products such as cell phones, computers, software, and mobile phones. In early writings on
services, scholars distinguished services from goods by noting that they were intangible,
perishable, variable, and that the producer and consumer were inseparable. Recently, it has
been suggested that these distinctive characteristics should not be viewed as unique to services
but that they are also relevant to goods, that ‘‘all products are services,’’ and that ‘‘economic
exchange is fundamentally about service provision’’ (Vargo and Lusch, 2004b). Although this
view is rather abstract, it does suggest that all types of organizations can gain valuable insights
from services marketing frameworks, tools, and strategies. The four Ps of marketing (product,
price, promotion, and place) are only partially adequate to conduct effective services marketing
strategy. Three additional Ps – people, process, and physical evidence – are also needed.
Because services are usually produced and consumed simultaneously, customers are often
present in the firm’s factory, interact directly with the firm’s personnel, and are actually part
of the service production process. Therefore, all human actors (the P corresponding to people)
play a part in service delivery and thus influence the customer’s perceptions. The firm’s
personnel, the customer, and other customers in the service environment each provide cues to
the customer regarding the nature of the service itself. Employee dress, personal appearance,
attitudes, and behaviors all influence the customer perceptions of the service. Physical evidence
pertains to the environment in which the service is delivered; all tangible components that
facilitate performance or communication of the service also affect services marketing. This
includes all the tangible representations of the service such as brochures, letterheads, business
cards, report formats, signage, and equipment, and the servicescape, the physical facility where
the service is offered. This P (physical evidence) is needed for services because customers often
have little on which to judge the actual quality of an intangible offering and thus will rely on
any tangible components of the service offering. Finally, process – including the operating
systems, procedures, mechanisms, and flow of activities by which the service is delivered – is
an element of the services marketing mix. This P (process) addresses how the service is
delivered, which, in many cases, may be perceived by customers to be as important as the
outcome of the service. In the discussion that follows, the impact of these additional three Ps
in services marketing strategy will be obvious.

1.4 Service Marketing Strategies

(Parasuraman, Zeithaml, and Berry, 1985). The gaps model positions the key concepts,
strategies, and decisions in delivering quality service in a manner that begins with the customer
and builds the organization’s tasks around what is needed to close the gap between customer
expectations and perceptions. The gaps model provides a comprehensive and integrating
framework for delivering service excellence and customer-driven service innovation. The
model is particularly relevant in service strategy because it captures the crossfunctionality
inherent in service management. Although the authors are marketing academics and their
original publications appeared in marketing journals, their work has been widely cited and used
across academic disciplines and implemented in different functions within organizations. The
model draws heavily from logic, theories, and strategies in operations, human resources,
marketing, and increasingly from information systems. The model, illustrated in Figure 1, is
anchored on the customer and integrates customer focus throughout all gaps within the model.
As depicted in the model, a firm’s primary goal should be to meet or exceed customer
expectations, and strategies used to achieve that objective (whether operations, human
resource, or technology-based) are all focused on the customer. Every gap and every strategy
used to close the gaps in the model retains a focus on the customer at its core. The central focus
of the model is the customer gap – the difference between customer expectations of what will
be delivered and perceptions of the service as it is actually delivered. The other four gaps in
the model are known as the provider gaps and each represents a potential cause behind a firm’s
failure to meet customer expectations. Closing the customer gap – delivering quality service –
at the top of the model is a complex undertaking involving many different organizational and
employee skills and tasks. These tasks can be sorted into four other gaps – the provider gaps –
each of which needs to be closed in order to close the customer gap. The following four
provider gaps, shown under the horizontal line in Figure 1, are the underlying causes behind
the customer gap: Gap 1: The listening gap Gap 2: The service design and standards gap Gap
3: The performance gap Gap 4: The communication gap.

1.5 Types of marketing strategies

There are different types of marketing strategies available. Picking up a marketing strategy
includes analyzing the needs of your business, your target audience and specifications of your
products.
The two main types of marketing strategy are:

 1. Business to business (B2B) marketing

 2. Business to consumer (B2C) marketing

The most common form of marketing is business to consumer (B2C) marketing. Let’s explore
a bit more.

Following are the different types of marketing strategies available.

1. Paid advertising

This includes multiple approaches for marketing. It includes traditional approaches like TVCs
and print media advertising. Also, one of the most well-known marketing approach is internet
marketing. It includes various methods like PPC (Pay per click) and paid advertising.

2. Cause marketing

Cause marketing links the services and products of a company to a social cause or issue. It is
also well known as cause related marketing.

3. Relationship marketing

This type of marketing is basically focused on customer building. Enhancing existing

relationships with customers and improving customer loyalty.

4. Undercover marketing

This type of marketing strategy focuses on marketing the product while customers remain
unaware of the marketing strategy. It is also known as stealth marketing.

5. Word of mouth

It totally relies on what impression you leave on people. It is traditionally the most important
type of marketing strategy. Being heard is important in business world. When you give quality
services to customers, it is likely that they’d promote you.

6. Internet marketing

It is also known as cloud marketing. It usually happens over the internet. All the marketing
items are shared on the internet and promoted on various platforms via multiple approaches.

7. Transactional marketing

Sales is particularly the most challenging work. Even for the largest retailers, selling is always
tough especially when there are high volume targets. However with the new marketing
strategies, selling isn’t as difficult as it was. In transactional marketing the retailers encourage
customers to buy with shopping coupons, discounts and huge events. It enhances the chances
of sales and motivates the target audience to buy the promoted products.

8. Diversity marketing

It caters diverse audience by customizing and integrating different marketing strategies. It

covers different aspects like cultural, beliefs, attitudes, views and other specific needs.

1.5 Importance of Service Marketing Strategy

Business owners who offer services to customers might not have a clear idea of how to market
those services. Product marketing tends to be straightforward with the ability to provide a
picture and point to specific features. Services marketing is equally important. Without a
marketing plan that targets the right types of clients, services providers might be left waiting a
long time for the phone to ring.

Identifying Benefits

When selling services, the benefits to consumers aren't always clear at face value. Selling a car
doesn't require a lot of basic features and benefits descriptions. Consumers understand what a
car does and usually have self-identified a need to have one. Selling a financial plan doesn't tell
a consumer a lot off the top. Many people might assume they don't even need the service. This
is one reason why services marketing is so important.

Good marketing for services identifies key benefits that consumers know they want or need,
but they may not have identified the services and benefits with a particular company's name.
For example, customers might want to pay off their home mortgage if they die so their families
can continue to live in the home. The customer might not realize that what he needs is life
insurance. By identifying benefits that solve specific consumer problems, service providers are
better able to get leads for new business.

Establishing Value

Another important reason to conduct services marketing is to establish the value of the services.
Consumers have a hard time justifying the costs of services because they don't walk away with
anything tangible in their hands. Service providers can adjust their consumer opinion about
their services by defining them as a value offer or a premium offer. This is seen in investment
brokerage firms where one firm offers discount trades, while another sells the value of the
information that will make someone more money over time.

When establishing value, the service provider weeds out any potential customers who don't
match the customer profile. A premium service provider who reduces the number of calls taken
from someone looking for discount services gives the company more time to focus on
delivering their premium product and finding more clients that fit the customer profile.

Create Brand Awareness

Many service providers often compete with similar providers in a congested industry. Think
about the number of insurance agencies that are in your locale or how many personal injury
attorney commercials you see on television. Service providers who conduct marketing
understand that they must do more than hang a shingle and open for business. If they want
customers, they need to develop a brand that customers go to today and remember tomorrow.

The tagline for many service providers helps achieve this important aspect of services
marketing. Allstate uses "You're in good hands." Merry Maids housecleaning service uses the
tagline "Relax. It's done." These are examples of service providers creating a brand awareness
so consumers identify them with that service. The more the brand is recognized, the more likely
people are to search for it directly when the need arises.

1.6 Role of Service Marketing Strategy in Banking Sector

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 judgement 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 non limiting for new enterprises in the sector. Increase in liberalization of
interest rates has intensified the competition. 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
comprehension 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

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 judgement 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 non limiting for new enterprises in the sector. Increase in liberalization of
interest rates has intensified the competition. 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
comprehension 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

1.7 Role of Service Marketing Strategy

Service Marketing Strategies – When service firms think of marketing strategies, they
usually consider outbound and direct techniques i.e. messages that are sent straight to
your prospective customers and clients. The goal, in this approach, is to be persuasive
and compelling so that your audience responds to and engages with the service offered.

These techniques will be undeniably in vogue as long as marketing exists. But service
marketing strategies have evolved over the years, especially after the arrival of digital
marketing. The behaviour of service buyers has changed. They are more likely to carry
out an internet search to find a service farm, and probabl y read client reviews to evaluate
their services.

This, in fact, has broadened the range of service marketing strategies at your disposal.
Staying competitive, today, means taking the fullest advantage of a variety of strategies.

But among all the service marketing strategies available in the hyper-competitive
business environment today, which ones will be the best for you? Let’s take a look at
the 10 absolutely fundamental strategies that will not only help your company stay
relevant, but will also help you to surge ahead in competition.

Research is the bedrock of all present-day marketing efforts. From marketplace to brand
research, exhaustive scientific studies can help you to take more informed decisions. It
will lend you an objective basis for service marketing and also extend valuable baselines
to measure your results.

Research helps you to understand your customers better. Market research gives you an
insight about how your business processes are performing. You will know on what
counts your company is performing and what marketing strategy in service sectors you
need to spruce up.

The impact of market research is obvious. Studies have revealed that firms carry out
systematic research regarding their prospect. Clients often grow 3-10 times faster and
are up to twice more profitable than peers who don’t carry out any research.

The definition of bank marketing is as follows: ―Bank marketin g is the aggregate of

functions, directed at providing services to satisfy customers‘ financial (and other
related) needs and wants, if more effectively and efficiently than the competitors
keeping in view the organizational objectives of the banks.‖ Bank marketing deals with
providing of services to satisfy customer‘s needs and wants. Service marketing plays a
vital role in bank marketing. For satisfying the needs of the customer‘s special
techniques and services need to be designed. Traditional marketing mix is not
responsible all of the service marketing mix elements are required. In service sector
banking sector plays a crucial role. The banking sector plays a key role in the
development of the economy. Banks are now giving importance to the marketing .

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activities to create awareness regarding their services to the public. Customer plays a
key role in banking sector as we know customer is god. Customer satisfaction is
important so that banks are introducing new instruments and ways to attract the
customers. Banks are building many strategies in order to retain the customers. Banks
are now putting emphasis on customer relationship management. That too they are
concentrating on long-term relationships to retain the customers. The importance of
marketing is increasing day to day in banking sector due to the following:
Environmental changes High competition Increased profit motive Urbanization
New Technology etc.

1.8 Recent Trends in Marketing Strategies of Banks

Traditionally, banks were seen as the holders of the money, which gradually changed their
role as the creators of money. Today, the scope of banks has widened phenomenally, now the
banks are seen as the purveyor of finance for the entire nation. A sound banking system is the
life blood of any developing economy and it reflects the growth of the economy. ―Financial
inclusion is a major agenda for the Reserve Bank of India (RBI). Without financial inclusion,
banks cannot reach the un-banked. It is also a major step towards increasing savings and
achieving balanced growth. Recently two conferences were held in Mumbai highlighting these
issues; The Sixth Banking Tech Summit of Confederation of Indian Industry (CII) and another
one organized by the Society for Worldwide Interbank Financial Telecommunication
(SWIFT). Of the 6.9 billion people on the planet, just 30 per cent (2.1 billion) have bank
accounts while 75per cent— 5.2 billion people—have mobile phones. ―In India, only 200
million people have access to a bank account while 811 million have a mobile phone. For a
population of 1.2 billion people, this translates into 68 per cent having a mobile phone and only
17 per cent having a bank account. The numbers speak for themselves: when it comes to
reaching the ‗un-banked‘ and extending financial inclusion for the larger population, mobile
phone is the key,‖ said Wim Raymaekers, Head of Banking Market, SWIFT.‖ Observing the
above statistical data, it can be concluded that there is still an ample scope for the growth of

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banking sector. Hence, it requires sound and innovative marketing strategies to capture the
untapped market. Following trends have been observed in the marketing strategies of banks
recently: Advertising remains the undisputed promotional tool for banks so far among the
other promotional tools. Advertising, which includes direct mail, accounted for the largest
share of marketing expenditures at 52 percent, compared to 58 percent in 2007. Public relations
accounted for 27 percent of marketing budgets compared to 21 percent in 2007. Consumer
expectations are growing. With the increase in the education of the consumers, they are now
demanding more and more value added services and are ready to pay premium for it. Mobile
banking is the need for today. It has become the blessing for the consumers who don‘t have the
time to visit the bank personally. The biggest advantage that mobile banking offers to banks is
that it drastically cuts down the costs of providing service to the customers. Also service
providers are increasingly using the complexity of their supported mobile banking services to
attract new customers and retain old ones. Social media is also a tool for marketing the
banking services. Forty percent of banks used social media for marketing purposes in 2009.
Twenty-nine percent used social networking (i.e., Face book, Twitter, etc.). Face book, used
by 76% of banks, is the most popular among various social media outlets, followed by Twitter
at 37%. The main reasons for using social media were for communication and competitiveness.
5. Due to increased use of technological bases has increased the operational efficiency of the
Indian banks. By 2009, virtually all banks had embraced the Internet and most had websites.
Marketer said e-newsletters were the most effective form of Internet marketing, followed by
search engine marketing and then sponsorships. Marketing expenditure has witnessed the
tremendous growth in last few years as the percentage of total banking expenditure. Despite
the overall state of the economy and the banking industry, marketing expenditures were up in
2009. Nearly 60 percent of banks said they planned to increase their marketing expenditures in
2009, the same amount as in 2007. Most of the banks view marketing as a strategic driver for
their business.

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Focus on Incremental New Customer Growth: Instead of generating as many accounts as

possible, banks will be focusing on the potential value of relationships including the likelihood
of engagement and retention. Gathering Email Addresses: With other communication
channel cost increasing and the improved results achieved when email is combined with more
traditional channels, the importance of collecting (and using) email addresses has never been
more important.

1.9 STRUCTURE OF BANK MARKET

Marketing activities of firms begin with determination of the market that they offer their
services or goods. Firms must find out the features of the market that it f anging market
condition. While marketing manager is arranging the variables under firm’s control, she/he
should also adopt the external variables. We could call the factors that affect banks’ market as
technological developments, legal arrangements and competition.
THE MARKETING MIX IN BANKING SECTOR

SERVICE Recently, banks are in a period that they earn money in servicing beyond selling
money. The prestige is get as they offer their services to the masses. Like other services,
banking services are also intangible. Banking services are about the money in different types
and attributes like lending, depositing and transferring procedures. These intangible services
are shaped in contracts. The structure of banking services affects the success of institution in
long term. Besides the basic attributes like speed, security and ease in banking services, the
rights like consultancy for services to be compounded are also preferred.

PRICE The price which is an important component of marketing mix is named differently in
the base of transaction exchange that it takes place. Banks have to estimate the prices of their
services offered. By performing this, they keep their relations with extant customers and take
new ones. The prices in banking have names like interest, commission and expenses. Price is
the sole element of marketing variables that create earnings, while others cause expenditure.
While marketing mix elements other than price affect sales volume, price affect both profit and
sales volume directly. Banks should be very careful in determining their prices and price
policies. Because mistakes in pricing cause customers’ shift toward the rivals offering likewise
services. Traditionally, banks use three methods called “cost-plus”, “transaction volume base”
and “challenging leader” in pricing of their services.

DISTRIBUTION The complexity of banking services are resulted from different kinds of them.
The most important feature of banking is the persuasion of customers benefiting from services.
Most banks’ services are complex in attribute and when this feature joins the intangibility
characteristics, offerings take also mental intangibility in addition to physical intangibility. On
the other hand, value of service and benefits taken from it mostly depend on knowledge,
capability and participation of customers besides features of offerings. This is resulted from
the fact that production and consumption have non separable characteristics in those services.
Most authors argue that those features of banking services makes personal interaction between
customer and bank obligatory and the direct distribution is the sole alternative. Due to this
reason, like preceding applications in recent years, branch offices use traditional method in
distribution of banking services.
PROMOTION One of the most important element of marketing mix of services is promotion
which is consist of personal selling, advertising, public relations, and selling promotional tools.

PERSONAL SELLING Due to the characteristics of banking services, personal selling is the
way that most banks prefer in expanding selling and use of them. Personal selling occurs in
two ways. First occurs in a way that customer and banker perform interaction face to face at
branch office. In this case, whole personnel, bank employees, chief and office manager, takes
part in selling. Second occurs in a way that customer representatives go to customers’ place.
Customer representatives are specialist in banks’ services to be offered and they shape the
relationship between bank and customer.

ADVERTISING Banks have too many goals which they want to achieve. Those goals are for
accomplishing the objectives as follows in a way that banks develop advertising campaigns
and use media. 1. Conceive customers to examine all kinds of services that banks offer 2.
Increase use of services 3. Create well fit image about banks and services 4. Change customers’
attitudes 5. Introduce services of banks 6. Support personal selling 7. Emphasize well service
Advertising media and channels that banks prefer are newspaper, magazine, radio, direct
posting and outdoor ads and TV commercials. In the selection of media, target market should
be determined and the media that reach this target easily and cheaply must be preferred. Banks
should care about following criteria for selection of media. 1. Which media the target market
prefer 2. Characteristics of service 3. Content of message 4. Cost 5. Situation of rivals

Ads should be mostly educative, image making and provide the information as follows: 1.
Activities of banks, results, programs, new services 2. Situation of market, government
decisions, future developments 3. The opportunities offered for industry branches whose
development meets national benefits

PUBLIC RELATIONS
Public relations in banking should provide; 1. Establishing most effective communication
system 2. Creating sympathy about relationship between bank and customer 3. Giving broadest
information about activities of bank. It is observed that the banks in Turkey perform their own
publications, magazine and sponsoring activities.

SELLING PROMOTIONAL TOOLS Another element of the promotion mixes of banks is

improvement of selling. Mostly used selling improvement tools are layout at selling point,
rewarding personnel, seminaries, special gifts, premiums, contests.

DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE

MARKETING Marketing scope develops day to day. These developments carry special
significance for service sector in which customer and service producer interact closely.

INTERNAL MARKETING Especially in service sector like external relations, internal

relations also have significance. It requires finding and keeping successful personnel. For
personnel of the organization to be considered their own goals and service situation, values of
the organization are sold to them. The communication techniques carried out for customers are
also performed for the personnel in internal marketing and this two techniques go together. For
example, the ads that aim creating firm’s image should be prepared with regarding to audience
which is composed of firm’s personnel.

NETWORK MARKETING This approach takes the organization as a sequence which involves
producer and customer that market services to each other in the organization. In this structure,
the activities of departments that compose organization would be more focused on market. This
will also affect the structure of organization.

RELATIONSHIP MARKETING It was mentioned that close relationship was established

between producer and customer in service sector. In addition to this, life cycle of a customer
relationship was also mentioned under the product outline. According to the researchers,
maintaining the relationship for extant customer increases the profit of firms. It should be
emphasized that this fact has an importance for service sector.

Life cycle of a customer relationship is composed of three stages. At the first stage, firms try
to be well known and to acquire new customers. At the second stage, the connection between
customer and firm has been achieved. During the stage, firms intensified their activities on
acquired customers and both of them promises mutually. At the third stage, these promises are
accomplished and the service is consumed. During the stage, firms face “Reality Instants”
which could possibly achieve satisfaction of customer and continuous relationship. This could
be also true for second stage. So, these instants should be managed successfully.
Implementation of close relations with customer successively and true applications at reality
instants could not be accomplished by responsibilities of a marketing personnel. Besides, it
should be remembered that consumption and production of service are closely interrelated. At
this context, marketing should have role not only in production-consumption between instants,
but also at points that these intersect. In this case, 4P that was mentioned at second section
would be insufficient. So, we could divide service marketing into two parts as specialist
function (marketing mix, marketing researches) and marketing function (buyerseller
interactions) Efforts in first stage in which customers are not so clear, at the customer
relationship life cycle could be minimized for lasting customers. This is achieved by successful
customer relations. In this approach, marketing may be defined as; “Marketing is for
establishing, keeping, developing relationship with customers in a manner that profit is got
(especially in long term). So, objectives of two relevant sides would be achieved. This would
be accomplished by shared promises and carrying out the promises.”
1.10 Advantages of Service Marketing Strategies

“Marketing” is defined by Wikipedia as “the process by which companies create

customer interest in goods or services… through which companies build strong customer
relationships and creates value for their customers and for themselves.”

Start with a marketing plan – identifying the customer and their needs and wants. Since
the essence of business is fulfilling a need it is an important to know w hich need you are
trying to fulfil. Then you need to know how best to reach those customers who have that
need.

There are many different marketing mediums and working out which is best for your
business is essential, both to keep costs down and to get the most back from your
marketing campaign.

There are differing advantages and disadvantages of marketing depending on your

chosen medium. But there are also general advantages and disadvantages of marketing
across every spectrum.

General Advantages of Marketing

An obvious advantage of marketing is the promotion of your business; getting the

recognition and attention of your target audience across a wide ranging or specific
market.

Going hand-in-hand with this is the enhanced brand recognition. Over time potential
customers and members of the public will begin to associate your logo and your brand
with your business.
Every business needs to ‘spend money to make money’. Investing in marketing is no
different. The most important advantage of marketing is therefore quite
simply improving the businesses profits by boosting sales.

Every marketing strategy has its own advantages and disadvantages. In the business world,
there is no perfect marketing strategy. An entrepreneur must examine each marketing
strategy and weigh their benefits and costs. Successful marketing strategy may depend on the
use of different strategies to obtain the best result .

1. Development of a Marketing Strategy

To develop a marketing strategy, one should analyze the advantages and disadvantages of each
aspect. During this process, the cost is usually the main factor that determines the pros and cons
of a strategy. Although the development of a great marketing strategy attracts new customers,
the downside is that it’s too expensive.

2. Distribution Marketing strategy

If a marketing strategy has to do with distribution, examining the costs of different distribution
methods will help determine if the strategy should be implemented. For example, one of the
way to distribute information is through email marketing. Although the distribution
marketing is relatively cheap, the disadvantage is that due to the large amount of spam, many
Internet service providers have created filters to avoid unsolicited emails.

3. Viral Marketing as a marketing strategy

A marketing strategy that has gained popularity in the new media world is the “viral
marketing.” With this strategy an intelligent or emotional campaign begins to rapidly spread
through the Internet. This is usually accomplished through recommendations and by social
media networks such as Facebook and Twitter.

The advantage of Viral Marketing strategy is that it manages to present the product or service
extensively, but the downside is that there is no control on how the information is spread.
4. Decisions in Marketing strategy:
When deciding on which marketing strategy is most appropriate (or a combination of marketing
strategies), it is necessary to examine the advantages and disadvantages of each strategy. In
many cases, if the marketing strategy has more advantages than disadvantages, this strategy
could be implemented. However, deciding the appropriate marketing strategy is a matter of
personal choice in some cases.

For example, a marketing strategy for a particular product may include advertising in television
programs that have high ratings, but a disadvantage could be sponsoring the program that some
may find offensive or in bad taste, which would result in disinterest of product or service. The
strategy that is more attractive for one group may not be interesting for another group. Hence
deciding right strategy for the target group is considered one of the most important aspect in a
marketing strategy.

To enlighten further:

 Product Design Strategy in marketing

 Structure of the international marketing plan

 Choosing the appropriate magazine or newspaper to advertise and market your

business allows you to appeal to a specific audience and demographic. Targeting
your adverts at the right audience to maximise its effectiveness.
 Often an advantage of marketing via print media is the flexibility. The size,
placement and type of advert can be adopted and changed according to your
needs.
 Another advantage marketing this way is the repeated display of your advert over
time. Multiple appearances in various issues of the paper or magazine will
improve chances of your brand sticking with the customers and also the results
you will see in terms of sales leads.
1.11 Disadvantages of Service marketing strategies

“Marketing” is defined by Wikipedia as “the process by which companies create

customer interest in goods or services… through which companies build strong customer
relationships and creates value for their customers and for themselves.”

Start with a marketing plan – identifying the customer and their needs and wants. Since
the essence of business is fulfilling a need it is an important to know which need you are
trying to fulfil. Then you need to know how best to reach those customers who have that
need.

There are many different marketing mediums and working out which is best for your
business is essential, both to keep costs down and to get the most back from your
marketing campaign.

There are differing advantages and disadvantages of marketing depending on your

chosen medium. But there are also general advantages and disadvantages of marketing
across every spectrum.

General Disadvantages of Marketing

The first disadvantage of marketing in general is the cost. Adverting and marketing costs
money. If you don’t do the proper research then you might end up throwing money away.
Wasting marketing efforts by targeting the wrong audience using an inappropriate
medium would be a serious and costly mistake. So it is important to do your research
beforehand and keep your costs to a minimum.

As well as the financial cost, marketing your business will require investment of time.
Researching the appropriate marketing strategy, designing and writing the adverts,
getting them published, dealing with any response. It’s important to spend time keeping
track of how successful or not your marketing campaign is. A potential disadvantage of
marketing here is the risk of time wasted for an unsuccessful campaign.

Research shows that people in general have to see a piece of information between 3 and
30 times before it sinks in. So the obvious disadvantage of marketing here is the fact that
your marketing campaign will need to be ongoing and consistent. Increasing costs and
time spent on it. This is where drip marketing comes in.

1.12 Services Offered by Modern Commercial Bank

1. Advancing of Loans
Banks are profit oriented business organizations. So they have to advance loan to public and
generate interest from them as profit.
After keeping certain cash reserves, banks provide short-term, medium-term and long-term
loans to needy borrowers.

2. Overdraft
Sometimes, the bank provides overdraft facilities to its customers though which they are
allowed to withdraw more than their deposits. Interest is charged from the customers on the
overdrawn amount.

3. Discounting of Bills of Exchange

This is another popular type of lending by the modern banks. Through this method, a holder of
a bill of exchange can get it discounted by the bank, in a bill of exchange; the debtor accepts
the bill drawn upon him by the creditor (i.e., holder of the bill) and agrees to pay the amount
mentioned on maturity.
After making some marginal deductions (in the form of commission), the bank pays the value
of the bill to the holder. When the bill of exchange matures, the bank gets its payment from the
party, which had accepted the bill.

4. Cheque Payment
Banks provide cheque pads to the account holders. Account holders can draw cheque upon
bank to pay money. Banks pay for cheques of customers after formal verification and official
procedures.

5. Collection and Payment Of Credit Instruments

In modern business, different types of credit instruments such as bill of exchange, promissory
notes, cheques etc. are used. Banks deal with such instruments. Modern banks collect and pay
different types of credit instruments as the representative of the customers.
6. Foreign Currency Exchange
Banks deal with foreign currencies. As the requirement of customers, banks exchange foreign
currencies with local currencies, which is essential to settle down the dues in the international
trade.

7. Consultancy
Modern commercial banks are large organizations. They can expand their function to
consultancy business. In this function, banks hire financial, legal and market experts who
provide advices to customers in regarding investment, industry, trade, income, tax etc.

8. Bank Guarantee
Customers are provided the facility of bank guarantee by modern commercial banks. When
customers have to deposit certain fund in governmental offices or courts for specific purpose,
bank can present itself as the guarantee for the customer, instead of depositing fund by
customers.

9. Remittance of Funds
Banks help their customers in transferring funds from one place to another through cheques,
drafts, etc.
10. Credit cards
Credit card are cards that allow their holders to make purchases of goods and services in
exchange for the credit card’s provider immediately paying for the goods or service, and the
card holder promising to pay back the amount of the purchase to the card provider over a period
of time, and with interest.

11. ATMs Services

ATMs replace human bank tellers in performing basic banking functions such as deposits,
withdrawals, account inquires. Key advantages of ATMs include:

 24 hour availability
 Elimination of labour cost
 Convenience of location

12. Debit cards

Debit cards are used to electronically withdraw funds directly from the cardholders’ accounts.
Most debit cards require a Personal Identification Number (PIN) to be used to verify the
transaction.

13. Home banking

Home banking is the process of completing financial transaction from one’s own home as
opposed to utilizing a branch of a bank. It includes actions such as making account inquiries,
transferring money, paying bills, applying for loans, directing deposits.

14. Online banking

Online banking is a service offered by banks that allows account holders to access their account
data via the internet. Online banking is also known as “Internet banking” or “Web banking.”
Online banking through traditional banks enable customers to perform all routine transactions,
such as account transfers, balance inquiries, bill payments, and stop-payment requests, and
some even offer online loan and credit card applications. Account information can be accessed
anytime, day or night, and can be done from anywhere.
15. Mobile Banking
Mobile banking (also known as M-Banking) is a term used for performing balance checks,
account transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant (PDA),

16. Accepting Deposit

Accepting deposit from savers or account holders is the primary function of bank. Banks accept
deposit from those who can save money, but cannot utilize in profitable sectors. People prefer
to deposit their savings in a bank because by doing so, they earn interest.

17. Priority banking

Priority banking can include a number of various services, but some of the popular ones include
free checking, online bill pay, financial consultation and information.

18. Private banking

Personalized financial and banking services that are traditionally offered to a bank’s rich, high
net worth individuals (HNWIs). For wealth management purposes, HNWIs have accrued far
more wealth than the average person, and therefore have the means to access a larger variety
of conventional and alternative investments. Private Banks aim to match such individuals with
the most appropriate options.

1.13 From Traditional Banking Services to Modern Services

In Traditional Banking, borrowing money from the public and lending them to business
units constituted the main functions of a bank. These were called the primary functions.
When the banks became profit conscious and wanted to give more emphasis to profit
generation, they started focusing on fee-based business. As a result, they started
rendering different types of service oriented functions, which are called General Utility
Services. These formed the subsidiary services of the bank. These included providing of
safe locker facilities, Issuing of Letters of Credit, Dealing in Foreign Exchange,
Underwriting loans floated by the Government, local bodies, etc. The other functions
included are factoring service, leasing of equipments, housing finance, portfolio
investments, etc.
Modern day banks have been using the technology based services or electronic banking.
The banking services are being rendered very fast and efficiently. The space and time
constraints are removed and the banking services are being provided 24 X 7, throughout
the year on all days. A customer is no longer a bank's branch customer, but a bank
customer. The following services are being provided by a modern bank to their
customers.

1.14 Introduction to Canara Bank

Canara Bank is an Indian state-owned bank headquartered

in Bangalore, Karnataka. It was established at Mangalore in 1906, making it one
of the oldest banks in the country. The government nationalized the bank in 1969.
As of November 2015, the bank had a network of 5784 branches and more than
9153 ATMs spread across India. The bank also has offices abroad in London,
Hong, Moscow, Shanghai, Doha, Bahrain, South Africa, Dubai, and New York.

Logo Of Canara Bank

1.15 History

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent
Fund in Mangalore, India, on 1 July 1906.[2] The bank changed its name to Canara Bank
Limited in 1910 when it incorporated.
Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. Bank of
Kerala had been founded in September 1944 and at the time of its acquisition on 20 May 1961
had three branches. The second bank that Canara Bank acquired was Seasia Midland
Bank (Alleppey), which had been established on 26 July 1930 and had seven branches at the
time of its takeover.[3][4]

In 1958, the Reserve Bank of India had ordered Canara Bank to acquire G. Raghumathmul
Bank, in Hyderabad. This bank had been established in 1870, and had converted to a limited
company in 1925. At the time of the acquisition G Raghumathmul Bank had five branches. The
merger took effect in 1961. Later in 1961, Canara Bank acquired Trivandrum Permanent
Bank. Trivandrum

Permanent Bank had been founded on 7 February 1899 and had 14 branches at the time of the
merger.

Next, Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam
Bank, Thrippunithura, Arnad Bank,Tiruchirapalli, Cochin Commercial Bank, Cochin,
and Pandyan Bank, Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21
February 1923 and at the time of its acquisition it had 14 branches. Arnad Bank had been
established on 23 December 1942 and at the time of its acquisition had only one branch. Cochin
Commercial Bank had been established on 3 January 1936, and at the time of its acquisition
had 13 branches.[4]

The Government of India nationalized Canara Bank, along with 13 other major commercial
banks of India, on 19 July 1969. In 1976, Canara Bank inaugurated its 1000th branch. In 1985,
Canara Bank acquired Lakshmi Commercial Bank in a rescue. This brought Canara Bank
some 230 branches in northern India.

In 1996, Canara Bank became the first Indian Bank to get ISO certification for "Total Branch
Banking" for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting for
ISO certification of branches.
1.16 BUSINESS PROFILE

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba
Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port
town in Karnataka. The Bank has gone through the various phases of its growth trajectory over
hundred years of its existence. Growth of Canara Bank was phenomenal, especially after
nationalization in the year 1969, attaining the status of a national level player in terms of
geographical reach and clientele segments. Eighties was characterized by business
diversification for the Bank. In June 2006, the Bank completed a century of operation in the
Indian banking industry. The eventful journey of the Bank has been characterized by several
memorable milestones. Today, Canara Bank occupies a premier position in the comity of
Indian banks. Canara Bank has several firsts to its credit. These include:

 Launching of Inter-City ATM Network

 Obtaining ISO Certification for a Branch
 Articulation of ‘Good Banking’ – Bank’s Citizen Charter
 Commissioning of Exclusive Mahila Banking Branch
 Launching of Exclusive Subsidiary for IT Consultancy
 Issuing credit card for farmers
 Providing Agricultural Consultancy Services
Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial
Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India
and abroad. As at June 2016, the Bank has further expanded its domestic presence, with 5847
branches spread across all geographical segments. Keeping customer convenience at the
forefront, the Bank provides a wide array of alternative delivery channels that include 9657
ATMs, covering 4081 centers. Several IT initiatives were undertaken during the year. The
Bank set up 172 hi-tech E-lounges in select branches with facilities like ATM, Cash Deposit
Kiosk with voice guided system, Cheque Deposit Kiosk, Self Printing Passbook Kiosk, Internet
Banking Terminal, Online Trading Terminal and Corporate Website Access. ‘Canara e-
Infobook’ – an electronic passbook and banking related information facility was introduced on
mobile platforms - Android, Windows & iOS. The Bank also launched Canara Bank RuPay
Debit Card, Canara Club Card – Debit, Canara Secured Credit Card, Canara Elite Debit Card,
Canara Bank Platinum Rupay Cards, Platinum Rupay Card and EMV Chip Cards under debit
and credit cards. Online Savings Bank and PPF account opening were introduced. The Bank
made several value additions under internet banking and mobile banking services. The Bank
has introduced enhanced version of CanMobile, Canara e-InfoBook- an electronic passbook
and banking related information facility on mobile platforms - Android, Windows & iOS and
Canara m-Wallet to provide more convenience and facilities to customers. Canara Galaxy, a
combo product launched, comprising SB, Demat, OLT, Internet & Mobile Banking, Insurance,
card services and other add-ons. Under education loan interest subsidy, web portals released
for Central Scheme for Interest Subsidy (CSIS), Ministry of HRD, GoI, Dr. Ambedkar Central
Sector Scheme of Interest Subsidy (ACSIS), Ministry of Social Justice & Empowerment, GoI
and Padho Pardesh, Ministry of Minority Affairs, GoI.

The Bank has launched Instant loan application in principle sanction portal for Housing Loan
and Car Loan. The Bank issued MUDRA Debit Card for overdraft accounts under MUDRA
Card scheme. P2U (Person to UIDAI) funds transfer through Mobile Banking in WAP channel
was enabled by the Bank. Subscription of Social Security Schemes of Govt. of India through
ATM, SMS and Internet Banking was enabled by the Bank. The Bank has implemented
“Jeevan Praman” a digital life certificate for pensioners. The Bank has Implemented automated
reminder SMS/Email Alerts to customers intimating to submit RC Copy/Insurance for the
vehicle loans and tax paid receipt/certificate for the mortgaged property. Missed Call / SMS
Based ePass Sheet generation made live by the Bank. The Bank has successfully implemented
SMS/Email Alerts to NPA Borrowers intimating to regularize over dues in accounts. Mobile
Banking Registration through ATMs (Interoperability through NFS) has been successfully
introduced by the Bank. Not just in commercial banking, the Bank has also carved a distinctive
mark, in various corporate social responsibilities, namely, serving national priorities,
promoting rural development, enhancing rural self-employment through several training
institutes and spearheading financial inclusion objective. Promoting an inclusive growth
strategy, which has been formed as the basic plank of national policy agenda today, is in fact
deeply rooted in the Bank's founding principles. "A good bank is not only the financial heart
of the community, but also one with an obligation of helping in every possible manner to
improve the economic conditions of the common people". These insightful words of our
founder continue to resonate even today in serving the society with a purpose. The growth story
of Canara Bank in its first century was due, among others, to the continued patronage of its
valued customers, stakeholders, committed staff and uncanny leadership ability demonstrated
by its leaders at the helm of affairs. We strongly believe that the next century is going to be
equally rewarding and eventful not only in service of the nation but also in helping the Bank
emerge as a "Preferred Bank" by pursuing global benchmarks in profitability, operational
efficiency, asset quality, risk management and expanding the global reach.

1.17 OVERSEAS SUBSIDIARIES, BRANCHES AND OFFICES

Canara Bank established its International Division in 1976. In 1983, Canara Bank
opened its first overseas office, a branch in London. Two years later, Canara Bank
established a subsidiary in Hong Kong, Indo Hong Kong International Finance.
In 2008-9, Canara Bank opened its third foreign operation, this one a branch in
Shanghai. Later Canara Bank established a branch each in Leicester and Bahrain,
and converted its Hong Kong subsidiary into a branch. It also has a representative
office in Sharjah.

Together with State Bank of India, Canara Bank established a joint venture in
Moscow, Commercial Bank of India LLC.
Canara Bank provides the general manager and the branch managers for Al
Razouki Intl Exchange Co (LLC), which a number of business leaders and Non-
Resident Indians (NRIs) established in 1981 in the United Arab Emirates to
facilitate remittances to India by tourists and NRIs.

Since 1983, Canara Bank has been responsible for the management of Eastern
Exchange Co. WLL, Doha, Qatar, which Abdul Rahman M.M. Al Muftah had
established in 1979.

Canara Bank opened its seventh overseas branch in New York, USA on 10 June
2014.

Subsidiary companies

 Canfin Homes Limited (CFHL), with a network of 110 branches and 28 satellite offices
throughout India.

 Canbank Factors Limited

 Canbank Venture Capital Fund Limited

 Canbank Computer Services Limited

 Canara Bank Securities Limited

 Canara Robeco Asset Management Company Limited

 Canbank Financial Services Limited

 Canara HSBC Oriental Life Insurance Company Limited

Regional rural banks

Canara Bank sponsors two regional rural banks (RRB):

 Kerala Gramin Bank – It is the largest RRB in India. Its headquarters are
at Malappuram and it operates in all districts in Kerala. It was established in 1976 as a
Scheduled Commercial Bank.

 Pragathi Krishna Gramin Bank has its headquarters at Bellary, Karnataka, and has 645
branches spread over eleven districts.

Canara bank is a state level lead bank in Kerala.

Development projects

Canara Bank partnered with UNEP to initiate a solar loan program. It was a four-year $7.6
million effort, launched in April 2003, to help accelerate the market for financing solar home
systems in southern India.

Major IT initiative

Canara Bank had a major IT initiative to network all branches and move them to a single
software platform. Canara Bank chose Flexcube from Oracle Financial Services Software as
the application. The Bank entered into an agreement with IBM for rolling out flex cube to over
1000 branches as part of Phase I. This phase has just been concluded, with Karaikudi Branch
in Tamil Nadu being the 1000th branch to go live. Over 22 Million customers are benefiting
from this initiative. Now, all the branches of Canara Bank are live on core banking application
Flex cube.

1.18 SWOT ANALYSIS

Strengths
1.Innovativeschemes.
2.Technologically advance.
3. Articulation of good banking.
4. Canara bank has employed over 44,000 people.
5. Canara bank made a partnership with UNEP to initiate a successful solar loan programme.

Weaknesses

1. Inadequate Publicity.
2. Low International presence.
3. Customer service is lesser as compared to other banks.

Opportunities

1. Rural and social banking.

2. Agriculture based consultancy.

Threats

1. Economic crisis.
2. Highly competitive environment.
3. Changing govt and RBI policies.

1.19 VISION & MISSION

Vision

To emerge as a ‘Preferred Bank’ by pursuing global benchmarks in profitability, operational

efficiency, asset quality, risk management and expanding the global reach.

Mission

To provide quality banking services with good customer care, create value for all stakeholders
and continue as a responsive corporate social citizen.
1.20 KEY CHALLENGES OF CANARA BANK.

1. Security of financial transactions

being executed from some remote location and transmission of financial information over the
air, are the most complicated challenges that need to be addressed jointly by Mobile banking
application developers, wireless network service providers and the banks' IT departments. The
following aspects need to be addressed to offer a secure infrastructure for financial transaction
over wireless network:

 Physical part of the hand-held device. If the bank is offering smart-card based security,
the physical security of the device is more important.

 Security of any thick-client application running on the device. In case the device is
stolen, the hacker should require at leastan ID/Password to access the application.

 Authentication of the device with service provider before initiating a transaction. This
would ensure that unauthorized devices are not connected to perform financial
transactions.

 User ID / Password authentication of bank’s customer.

 Encryption of the data being transmitted over the air.

 Encryption of the data that will be stored in device for later /off-line analysis by the
customer.

2. Scalability & Reliability

Another challenge for the CIOs and CTOs of the banks is to scale-up the Mobile banking
infrastructure to handle exponential growth of the customer base. With e-banking, the
customer may be sitting in any part of the world (true anytime, anywhere banking) and hence
banks need to ensure that the systems are up and running in a true24 x 7 fashion. As customers
will find e-banking more and more useful, their expectations from the solution will increase.
Banks unable to meet the performance and reliability expectations may lose customer
confidence.

3. Application distribution

Due to the nature of the connectivity between bank and its customers, it would be impractical
to expect customers to regularly visit banks or connect to a web site for regular upgrade of their
mobile banking application. It will be expected that the mobile banking application itself check
the upgrades and updates and download necessary patches (so called Over the Air updates).
However, there could be many issues to implement this approach such as upgrade /
synchronization of other dependent components.

4. Interoperability

There is a lack of common technology standards for Mobile banking. Many protocols are being
used for e-banking – HTML, WAP,SOAP,XMLto name a few. It would be a wise idea for the
vendors develop a Mobile banking application that can connect multiple banks. It would
require either the application to support multiple protocols or use of a common and widely
acceptable set of protocols for data exchange. There are a large number of different Mobile
banking phone devices and it is a big challenge for banks to offer Mobile banking solution on
any type of device. Some of these devices support J2ME and others support WAP browser or
only SMS. Overcoming interoperability issues however have been localized, with countries
like India using portals like R-World to enable the limitations of low end java based phones,
while focus on areas such as South Africa have defaulted to the USSD as a basis of
communication achievable with any phone. The desire for interoperability is largely dependent
on the banks themselves, where installed applications (Java based or native) provide better
security, are easier to use and allow development of more complex capabilities similar to those
of internet banking while SMS can provide the basics but becomes difficult to operate with
more complex transactions.
1.21 Objective Of Canara Bank

To Provide 24X7 Banking Services to the Customers of the Bank anytime, anywhere at their
Mobile Handset. To Ensure Security to the customers while doing Transactions and other
Operations using Mobile Banking to Be Network Agnostic and Mobile-set independent To
reduce cost of transactions for the Bank as well as the customer To Reduce Footfalls of
customers from Branches and increase transactions via e-Mode.
Target Group: All the Customers of the Bank.
Geographical Reach within India: All over India.
Geographical Reach outside India: N/A
Date From which the Project became Operational: 6-6-2011
4.4 Key achievements of the programme/project:

1. Introduced Hindi Version of Mobile Banking Application. This will help in making the
Mobile Banking Services to reach large population comfortable in Hindi.

2. Immediate Payment System (IMPS) through ATM. This Service provides Inter-Bank funds
transfer facility through IMPS (Immediate Payment System). Canara Bank is the First Public
Sector Bank to provide this facility to customers.

3. 24 X 7 Banking Facilities, anytime, anywhere – Including Funds Transfer.

4. Network Agnostic and Mobile-set Independent.
5. Placing Canmobile application on Google Play for downloading by Android users.
II Research Methodology

2.1 Objective

 To Know about the Services provided by different bank

 To Know about the services provided by Canara Bank

 To Know about Canara bank

 To Compare the Services provided by Different bank or by different branches

 To understand the level of satisfaction derived by customers

 To understand the customers view regarding services provided by bank

 To understand banks view regarding the services provided by them

2.2 Scope of Study

 This study is helpful to banks to understand the demerits and work for the improvement
of services provided by bank

 This study is helpful for customers to review and know to understand services provided
by bank.

 This study might help to enhance services of bank.

 This study helps to compare the services of different banks

2.3 Limitations of the study

 Limitation of funds: Due to lack of funds there was limitation in taking the survey of
different branch or of different banks.

 Limitation of time : Due to limitation of funds there was time bond to get the survey
done of different banks and different branches and also to have communication with
branch manager and customers.

 Limitation of available managers in bank : Due to un availability of manager in bank

or manager being busy in there schedule work it was really difficult to get proper
response from them.

 Limitation of customers : Due to unavailability of much customers during the visit it

was difficult to get proper and exact response and also view of different person.

 Nature of customers: The nature of person can become a difficult task to understand
and detect if the cutomers are actually happy with the services provided by bank.

For E.g one customer might be happy with the change is services provided other customer might find
it complex and difficukt to understand.
2.4 Significance of the study

 This study has helped customers to know the services provided in Canara bank

 This study has provided opportunity to know the customers review regarding the
services provided by them.

 This study has helped the banks and there manager to modify the services provided by
them.

 This study has helped to understand the gap between the services goal which bank has
made and the actual services being provide by them.

 This also enables the comparison between services of different banks.

 This also helps to understand if the services provided by the same bank differentiates
in different branches.
2.5 Data collection

Primary data:

Primary data is been collected from different customers of Canara bank, who have there
accounts in canara bank. Also, who visits canara bank frequently there reviews and ideas are
taken.

Customers reviews and opinions regarding how do they feel is taken as a feed back.

The data from managerial level is taken from higher authorities of banks and manager, Also
the working staff has helped for the same.

Secondary Data:

The secondary data was collected from various books, journals, articles, newspapers and
websites. The samples were selected on random basis. However, the samples were women,
men of the bank.
The data collected was tabulated, analyzed and interpreted for drawing conclusions. Statistical
methods such as mean, percentage and variance etc were used for the analysis. A few
suggestions are also given for improvement of marketing strategies of the bank.

Tools and techniques

The researcher has used tools and techniques such as percentage. The analysed data is presented
in the form of pie charts for easy and better understanding. The conclusions were given at the
end after tabulating, analysing, interpreting and presenting data in the form of graphs.
2.6 Sample size

 Questions have been asked to 30 customers of Canara bank

 Questions have been asked to the people of various age group

 Questions have also been asked to people of different age.

III Literature Review

A marketing strategy combines product development, promotion, distribution, pricing,

relationship management and other elements; identifies the firm's marketing goals, and
explains how they will be achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component of overall firm strategy, defining
how the organization will successfully engage customers, prospects, and competitors in the
market arena of corporate strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is closely linked with sales.
As per the research conducted by TIebbar (1988) studied marketing strategies of banks aimed
at inculcating the habit of thrift among the people. The suggestion is that keeping the rural
branches open on Sundays can augment savings. Direct marketing is also suggested to reduce
waiting time exponentially and enhance customer satisfaction. Erratic behavior of the
employees, suspicious looks of the staff, vague knowledge of the products, un dynamic
promotional methods etc., may hamper the banking business in rural areas.1 I

 George William R and Hiran C Barksdale (1974):

A study by George William R and Hiran C Barksdale (1974) on the marketing activities in the
service firms discovered that services marketing is generally on the low ebb. Service firms
tend. to be less marketing oriented; less likely to have marketing mix activities carried out in
the marketing department; less likely to perform analysis in the area of service product; more
likely to undertake advertising internally rather than go to specialized advertising agencies;
less likely to have overall sales plan; less likely to develop sales training programmes; less likely
to utilize the 55 -- Review of Literature services of marketing cons~iltants and marketing
research firms; and less likely to spend much on marketing, as a percentage of gross sales.'

 Bessom, Richard M and Donald W Jackson Jr (1975)

Study by Bessom, Richard M and Donald W Jackson Jr (1975) of 400 service and marketing
firms revealed that service firms are less likely to have marketing departments, to make use
of sales planning and training, and to employ marketing professionals like consultants,
advertising firms and market research agencies.'
 James F Devlin (2000) :
James F Devlin (2000) studied as to how attempts can be made to add value when offering
services exhibiting increased complexity, intangibility and impalpability in the eyes of most
consumers. It was found that the features and quality of the core service provided are judged
by managers to be more important in adding value to more complex services; as are
organizational factors such as image and reputation. In addition, price i:j perceived to be
significantly more important in adding value to more simple, rather than complex, offerings.

 Journals

1. William, George K and B'arksdale, Hiran C. (1974). 'Marketing Activities in the Service
Industries'. .lourrial of Marketing, 65-70

2. Mackay, Maio Marisa (2001). 'Application of brand equity measures in service

markets'. Jo~trrzal of Services Marketing, Vo1.15, No.3,2 10-221.
IV Data Analysis, Interpretation and Presentation

4.1 Age wise Profile

4.2 Sex wise Profile

4.3 Qualification wise Profile

4.4 Based on Occupation / Qualification wise profile

 4.1 Age wise Profile

Sr No. Age Frequency %

1. Up to 30 36 36
2. 31 – 45 25 25
3. 46 – 60 30 30
4. Above 60 9 9

Graphically it is presented as below

Frequency

Upto 30 30-45 45-60 60 and above

In the above analysis people of age group upto 30 frequently visits 36 times a year and people
of age group of 31-45 visits frequently 25 times a year.However, people of age group
between 46-60 visits 30times a year and above age of 60 visits frequently very less i.e of
around 9 times a year.
  4.2 Sex wise Profile

Sr No Sex Frequency %
1. Male 60 60
2. Female 40 40

Frequency

Male Female
  4.3 Qualification wise Profile

Sr No. Qualification Frequency %

1. SSC 2 0
2. HSC 10 10
3. Graduate 60 62
4. Post Graduate/Professional 28 28

Frequeny

SSC HSC Graduate Post Graduate/ Professional

  4.4 Based on Occupation / Qualification wise profile

Sr No Sex Frequency %
1. Service 25 25
2. Business 75 75

Frequency

Business Service

Questionares for Customers

1) For which of the following would you like to provide feed back

i) In person branch experience

ii) Online experience

iii) Telephone experience

2) Which branch do you visit more frequently

i) Branch in which you have opened your account

ii) Any branch

iii) Main head branch

3) What do you feel about your website while logging online

 Agree Disagree Nor Agree nor
disagree

Information the website is

clear and easy to understand

I can easily find what I’m

looking for on the website

Websites include all of the

information I need

The website meets my needs

4) Is manual banking more convenient then internet banking?

i) Yes

ii) No

5) Are you happy with the internet banking of canara bank?

i) Yes

ii) No

iii) Neither yes nor no

6) Does services provided by Canara bank enough ?

i) Yes

ii) No

iii) Neither yes nor no

7) What amendments you require should be made by bank

i) Change in services offered in bank

ii) App change

iii) Technological change

8) Are service charges for internet banking fair?

i) Yes

ii) No

iii) Moderate

9) In how many banks do you have your account?

i) One

ii) More than one

10) Which bank you prefer the most?

i) ICICI

ii) HDFC

iii) Canara bank

iv) SBI

11) Why this bank

i) Service are good

ii) They provide security

iii) Cheaper service charges

Questionnaire to manager

1) 1. Based on your estimate how many total numbers of customers you have in
your branch?

i) [ ] 2001 to 5000

ii) [ ] 5001 to 8000

iii) [ ] 8001 to 10 000

iv) [ ] Over 10 000

2) Does your bank offers any changes in services?

i) Yes

ii) No

iii) Partially yes partially no

3) Does the bank have an Electronic Banking Committee (or something similar)?

i) Yes

ii) No

4) Are any application forms available on website?

i) Yes

ii) No

5) If application form is available on the website, how does customer submit that?

i)Fax

ii) Mail
 iii )Online

iv) In person

6) Does the bank verify the legitimacy of customer who has submitted the
application online?

i)
IV Data Analysis, Interpretation and presentation of Data

i) For which of the following would you like to provide feedback?

#REF!

In person branch experience Online experience Telephonic Experience