UNIVERSITY OF MUMBAI

A STUDY ON MARKETING OF BANKING SERVICES

A Project Submitted to University Of Mumbai for the degree of
Bachelor in Commerce (Banking and Insurance)
Under the Faculty of Commerce

By

SHRISTI PATHAK
I.18.97
Under the Guidance of
MRS. BHUMIKA MORE

SIES ( NERUL) COLLEGE OF ARTS,SCIENCE AND COMMERCE

PLOT NO 1-C, SECTOR-5, NERUL
NAVI MUMBAI , 400706
APRIL 2021

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 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thanks the University Of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr.MilindVaidya for providing necessary facilities

required for completion of this project.

I take this opportunity to thank our Coordinator Mrs. Lata Lokhande for her moral support
and guidance.

I would also like to express my sincere gratitude towards my Project Guide Mrs. Bhumika
More whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially.

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 CERTIFICATE

This to certify that Ms Shristi Pathak has worked and duly completed her/his Project Work
for the degree of Bachelor in Commerce (Banking and Insurance) under the faculty of
commerce in the subject of Research methodology and her/his project is entitled, Marketing
of Banking Services under my supervision.

I further certify that that entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any degree or diploma of any university.

It is her own work and fact reported by her/his personal findings and investigation.

Mrs. Bhumika More

Signature

30 April 2021

Date of Submission

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 Declaration by Learner

I ,the undersigned MISS. SHRISTI PATHAK here by, declare that the work embodied in
this project work titled A STUDY ON ROLE OF MARKETING OF BANKING
SERVICES forms my own contribution to the research work carried out under the guidance
of MRS.BHUMIKA MORE is a result of my own research work and has not been
previously submitted to any other university for any other Degree/Diploma to this or any
other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I ,here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and signature of the learner

SHRISTI PATHAK

Certified by

Name and signature of the guiding Teacher

BHUMIKA MORE

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 EXEUTIVE PROJECT SUMMARY

The Indian Banking system is unique and perhaps has no parallel in the banking history
of any nation in the world. The system has been both private and public sector banks
contributing for the well being of the nation.
In the present set up, Competition and Profitability have become key words for banks in
India. Though these are mutually contradictory, banks have to balance the severity of the
competition and continue to be in the reckoning by improving their profits. Marketing has
suddenly become a buzzword in the banking sector. Customer becomes centric for
marketing of bank products and services. The philosophy of the marketing is to satisfy
the customer wants and desire.
The key objective in all marketing activities is creating value for the customers, that is,
clients, with the aim of providing their long-term loyalty. The positive perception and
value addition of the customers result into high performance of bank. One has to reckon
the fact that the old loyalty can no longer be taken for granted.
Banks have to make effort to retain existing customers and also use new strategies to
attract new customers within their fold. The banks will survive only when they face acute
competition with help of effective ways of marketing approach.
Technology is undoubtedly one of the most important and crucial ways in which it
influences on marketing of bank products and services in the present era. Many of our
modern ways of life is made possible by the rapid development of new technologies.
Marketing practices have been shaped to the greater extent by the existing level of
technology.
One of the key aspects for modern banks is to find ways and means for creating
sustainable competitive advantage in the financial markets. The role of marketing within
this task is beyond doubt, especially in bank services quality area. The quality is reached
through putting clients in the epicenter and by giving them special treatment. Marketing
has been a little slow in taking part in this financial arena, that is, banking area Public
sector banks, started their marketing innovative practices by introducing new
technological products or services decides the agricultural and industrial benefit schemes
in line with private sector banks and foreign banks.
They are providing retail banking services such as savings bank account, current bank
account, fixed deposits and recurring deposits. In addition, there are investment services
like bonds and stocks, tax-benefit schemes, mutual fund benefit schemes, Annuities,
insurance products, retirement plans, financial and estate planning and loans like,
housing, education loan, vehicle loan, personal loans like loan for purchase of car,
furniture, and durables jewelry. The major challenge for the Bankers is to introduce
newer products, which are innovative in nature yet be brought in multiple areas to reduce
the overall transaction cost for the ultimate benefits of the customers. The Indian Banks
are not working in a closed environment any more. Resistance to advancing technology is
no longer a solution. .
A successful marketing firm must not only retain her large consumers but should make
efforts to increase its size in the face of fierce competition. The study concluded that
applying various marketing concepts enhanced consumer’s satisfaction and helped the
banks to give a strong competition in the Industry. Marketing has lately entered the
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banking industry not in the form of marketing concept, but in the forms of advertising and
promotion concept.
Banks deliver services, which aims at satisfying the needs and wants of consumers and a
Profit Organization must recognize not only the desires of the would-be consumer; but his
budget should also be taken into consideration without sacrificing the organisation’s
profit making motive. Marketing is the crucial connection between banks and customers,
no banks can expect to succeed without putting substantial investments in its marketing
efforts. Banks nowadays are coming up with surprising and impressing ways to lure the
customers and retaining their customer base. These days’ banks are focusing heavily on
building long term relationships with their existing customers and thereby gaining new
customers. Hence, relationship marketing becomes very important for the banks. It is
concerned with mapping out all the touch point and evaluating what services are
provided, by whom, and when, and how, and what is expected by customers. The
definition of bank marketing is as follows: “Bank marketing 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. All the techniques and strategies of marketing are
used so that ultimately they induced the people to do business with the particular bank. To
create and keep a customer means doing all those things so that people would like to do
business and continue to do it with the particular bank rather than with the competitors. It
cannot stay in business if it does not attract and hold enough customers, no matter how
efficiently it operates.

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 INDEX
Chapter Topic Pg no.
1) Introduction
1.1 Meaning 1
1.2 Important of Marketing in Bank 1

1.3 Introduction of Banking 2

1.4 Purpose of Marketing Bank Services 2
1.5 Role of Marketing in Banking Industry 2
1.6 Marketing Mix in Banking Sector 3
1.7 Pandemic Effect on Marketing of Banking 11
Services

1.8 Influence of Marketing on Customer 12

1.9 13
State Bank of India (SBI) Marketing Mix (7Ps)
Strategy

1.10 16
HDFC Bank Marketing Mix (7Ps) Strategy

2) Research Methodology 20
2.1 Objectives of study
2.2 Hypothesis
2.3 Scope of study
2.4 Limitations of study
2.5 Significance of study
2.6 Selection of Problem
2.7 Research Design
3) Literature Review 23
4) Data Analysis, Interpretation, Presentation 26
5) Conclusions and Suggestions 40
6) Bibliography 42
7) Annexure 43

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 CHAPTER-1 INTRODUCTION

INTRODUCTION
Bank Marketing-

Bank marketing is the aggregate of functions, directed at providing services to satisfy

customers financial (and other related) needs and wants, more effectively and efficiently than
the competitors keeping in view the organizational objectives of the Bank.

Banks deliver services, which aims at satisfying the needs and wants of consumers and a
Profit Organization must recognize not only the desires of the would-be consumer; but his
budget should also be taken into consideration without sacrificing the organisation’s profit-
making motive. A successful marketing firm must not only retain her large consumers but
should make efforts to increase its size in the face of fierce competition. This study examines
the marketing of bank services in banks and issues faced by them. It also aims at identifying
the various marketing principles which are applied, and which actually enhances consumers
value and consumers satisfaction. Data for the study were obtained from primary and
secondary sources. The study concluded that applying various marketing concepts enhanced
consumer’s satisfaction and helped the banks to give a strong competition in the Industry.

Important of Marketing in Bank

It is necessary in the banking industry for several reasons

• The existence of marketing service organization mainly depends on satisfaction of

consumer’s needs.
• Leaders in this sector are organizations that strive to exceed minimum standards and
customer expectations.
• Customers assess the quality of service delivery and help those sectors in shaping
service development.

It is important to measure customer satisfaction and obtain feedback on organizational

performance in accordance to improve the quality and continuous improvement of the
service.

Introduction of Banking

Banks are institutions that accept deposits from customers or the public to provide loans to
the poor and expand other SD services. Now the private sector banks are introduced and their
functions are changed. Private sector banks have become profit centers, insurance companies
and mutual funds. However, nationalized banks provide loans for rural development
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activities such as education and agriculture. Therefore, they are always service-oriented.
Banks offer facilities for depositing and withdrawing money when needed. It provides a safe
place to save money and lends money to the borrower for the job well done. They provide
savings accounts, deposits and loans using these deposits.

Purpose of Marketing Bank Services

A combination of developments arising from technological advancements and a liberalised
marketplace - disintermediation, blurring of traditional roles and boundaries, emphasis on
shareholder value-creation - has led to a transformation of the banking sector which
ultimately has given rise to marketing of the services. Change in demographic structure,
Intense competition in financial service sector and Bank‟s wish for increasing profit are
some of the major reasons why marketing is done of the banking services.

Role of Marketing in Banking Industry

Marketing has lately entered the banking industry not in the form of marketing concept, but
in the forms of advertising and promotion concept. It has been realised that marketing
transcends advertising and friendliness. Earlier, it was recognised that personal selling was
not necessary. The bankers even eliminated the word ‟selling‟ and they called the function
of customer-contact ‟business development function‟. But gradually they have begun to
realise that marketing is a lot more than smiling and friendly tellers. Customers relationship,
commitment and loyalty ensure a successful customer service and banks will keep their
strong customer-centric orientation image to the customers, which will help banks in further
development. Customer satisfaction represents a modern approach for quality in enterprises
and organisations and serves the development of a truly customer-focused management and
culture. Also, In case of the banking industry, customer retention plays the critical role in
customer service. Customer retention is potentially an effective tool that banks can use to
gain a strategic advantage and survive in today‟s ever-increasing banking competitive
environment. The key factors influencing customers‟ satisfaction and ensuring customer
retention of a bank include the range of services, rates, fees and prices charged. It is apparent
that superior service alone is not sufficient to satisfy customers. Prices are essential, if not
more important than service and relationship quality. Launching new schemes with
advertisements attracts new depositors. However, what ultimately sustains the process of
generation of new deposits and continues the acceleration of deposit mobilisation is the
quality of customer service as perceived by clients. Banks‟ performance in different banking
services like withdrawal of cash, collection of cheques, quality and adequacy of
infrastructural facilities available to customers, attitudes of bank employees towards
customers, promptness, and general attitude have to be analysed and evaluated before
strategy formulation. There is a need for professionalism and market-oriented banking in our
country. Market-oriented banking will require a new culture: a disciplined, professional, and

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committed manpower; employees trained for specialised services; specialised branches;
strong marketing organisation in different banks; aggressive selling; meeting new
customers‟ expectations; and cost effective and efficient services for gaining customer
satisfaction and loyalty. Banks should remember that, it is so tough to make a customer enter
a bank, but it is a fraction of second for a customer to move from one bank to another.
Competition is increasing at a regular basis and customers are enjoying it. The more the
competition, the better the services banks needs to provide for business retention.

Marketing Mix in Banking Sector

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
Price is the amount of money that your customers have to pay in exchange for your product
or service. Determining the right price for your product can be a bit tricky. A common
strategy for beginning small businesses is creating a bargain pricing impression by pricing
their product lower than their competitors. Although this may boost initial sales, low price
usually equates to low quality and this may not be what customers to see in your product.
Your pricing strategy should reflect your product’s positioning in the market and the
resulting price should cover the cost per item and the profit margin. The amount should not
project your business as timid or greedy. Low pricing hinders your business’ growth while
high pricing kicks you out of the competition. There are a number of pricing strategies that
you can follow. Some strategies may call for complex computation methods and others are
intuitive decisions. Select a pricing strategy that’s based on the product itself, competitive
environment, customer demand, and other products that you offer.

Cost Plus
Cost Plus is taking the production cost and adding a certain profit percentage. The resulting
amount will be the product’s price. You need to consider variable and fixed production costs
for this pricing method.

Value Based
Instead of using the production cost as your basis, you consider the customer’s perception of
the product’s value. The perception of the buyer is dependent on the product’s quality, the
company’s reputation, and healthfulness, aside from the cost factors.

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Competitive

You take a survey of the pricing implemented by your competitors on a similar product that
you are trying to market and then decide whether to price your product lower, the same, or
higher. You should also monitor their prices and be able to respond to changes.

• Going Rate
This pricing strategy is more common in selling environments where the companies
have little to no control of the market price. You price your product according to the
going rate of similar products.

• Skimming
You introduce a high quality product, price it high, and target affluent customers.
When the market has become saturated, you then lower the price accordingly.

• Discount
Most commonly used for old product stocks or when you’re clearing up you
inventory. You take the advertised price and lower the amount. A good example is a
discount coupon.

• Loss Leader
You take the production cost and price the product even lower. The idea is to attract
your customers to your store where they can be convinced to buy your other products.

• Psychological
You may have noticed that you rarely see pricing rounded off to the nearest whole
number. This is a psychological pricing strategy. $5.99 looks more attractive than
$6.00 although you’re only saving a single cent.

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.

Advertising

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.

Selling Promotional Tools

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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.

Promotion is the part of marketing where you advertise and market your product, also known
as a promotional strategy. Through it, you let potential customers know what you are selling.
In order to convince them to buy your product, you need to explain what it is, how to use it,
and why they should buy. The trick in promoting is letting consumers feel that their needs
can be satisfied by what you are selling. An effective promotional effort contains a clear
message that is targeted to a certain audience and is done through appropriate channels. The
target customers are people who will use, as well as influence or decide the purchase of the
product. Identifying these people is an important part of your market research. The
marketing image that you’re trying to project must match the advertisement’s message. It
should catch your target customers’ attention and either convince them to buy or at least state
their opinion about the product.

Place
Place (or its more common name “distribution”) is about how a business gets its products to
the customers. The objective of distribution is clear. It is to: to make products available in
the right place at the right time in the right quantities. Distribution matters for a business of
any size – it is a crucial part of the marketing mix. It is one thing having a great product, sold
at an attractive price. But what if

• Customers are not near a retailer that is selling the product?

• A competing product is stocked by a much wider range of outlets?

• A competitor is winning because it has a team of trained distributors or sales agents who
are out there meeting customers and closing the sale?

You can see from the above that getting distribution right is a key part of being competitive.
Distribution is achieved by using one or more distribution channels, including:

• Retailers

• Wholesalers

• Distributors / Sales Agents

• Direct (e.g. via e-commerce)

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The element Place in marketing mix strategy ensures the availability of product to the
intended end consumer. We need to ensure 3 specific aspects of availability –The right
place - Groceries must be made available at every local supermarket or the next-door kirana
store. A hatchback car however, will only be available for purchase in company showrooms.

The right time - Umbrellas must hit the market before the onset of monsoon season and
must be available throughout the season, to be replaced with woollen caps and mufflers as
winter sets in. Winterwear available in the hot months will attract negligible sales because of
seasonality.

The right quantity - You buy only one LED TV set after browsing through numerous
models at different digital stores, all offering appealing features at a broad price range.
However, while purchasing vegetables, you visit just a handful of roadside stalls, observe
only few aspects ensuring freshness of product, and buy by weight.

1.54 People
People are the most important element of any service or experience. Services tend to be
produced and consumed at the same moment, and aspects of the customer experience are
altered to meet the individual needs of the person consuming it. Most of us can think of a
situation where the personal service offered by individuals has made or tainted a tour,
vacation or restaurant meal. Remember, people buy from people that they like, so the
attitude, skills and appearance of all staff need to be first class. People have an important role
in service delivery, they are relied upon to deliver and maintain transactional marketing and
people play an important part in the customer relationship.

Personal Selling

There are different kinds of salesperson. There is the product delivery salesperson. His or her
main task is to deliver the product, and selling is of less importance e.g. fast food, or mail.
The second type is the order taker, and these may be either ‘internal’ or ‘external.’ The
internal sales person would take an order by telephone, e-mail or over a counter. The
external sales person would be working in the field. In both cases little selling is done.

The next sort of sales person is the missionary. Here, as with those missionaries that promote
faith, the salesperson builds goodwill with customers with the longer-term aim of generating
orders. Again, actually closing the sale is not of great importance at this early stage. The
forth type is the technical salesperson, e.g. a technical sales engineer. Their in-depth
knowledge supports them as they advise customers on the best purchase for their needs.
Finally, there are creative sellers. Creative sellers work to persuade buyers to give them an
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order. This is tough selling, and tends to offer the biggest incentives. The skill is identifying
the needs of a customer and persuading them that they need to satisfy their previously
unidentified need by giving an order.

Customer Service

Many products, services and experiences are supported by customer services teams.
Customer services provide expertise (e.g. on the selection of financial services), technical
support (e.g. offering advice on IT and software) and coordinate the customer interface (e.g.
controlling service engineers, or communicating with a salesman). The disposition and
attitude of such people is vitally important to a company. The way in which a complaint is
handled can mean the difference between retaining or losing a customer, or improving or
ruining a company’s reputation. Today, customer service can be face-to-face, over the
telephone or using the Internet. People tend to buy from people that they like, and so
effective customer service is vital. Customer services can add value by offering customers
technical support, expertise and advice.

People deliver services in all sorts of settings. It is an important element of the services
marketing mix. If you go to an organized event such as the Olympics then everything about
the experience is underpinned by people. Behind-the-scenes there are project managers and
chefs, maitre d’ and accountants. The people deliver the service and this is the same for
restaurants, hairdressers and auto mechanics. People are the transactional interface between
the company and its customers so people deliver the service and they collect money i.e. get
paid on behalf the company for the service. So if you go to a restaurant the waiter will greet
you, take your order and serve your food and finally he or she will take the money which
completes the contractual transaction.
People underpin the customer relationship between the company and the consumer.
Remember that people buy from people (as we always remind you on Marketing Teacher)
and that the relationship between the person you are dealing with and yourself add much
value to the transaction. If you know you’re going to eat at your favorite restaurant, it a good
idea to learn the waiter’s name and build a rapport. Think of other times such as when you
were selling a property and an agent was a particularly reliable and polite person, or perhaps
you bought a car because you trusted the salesperson and this advantage clinched the
deal. Marketing today is based on Customer Relationship Management (CRM) and the
relationship with people that you’re dealing with at the company can recruit you as a
customer, retaining you as a customer and encourage you to remain a customer in the future.
This is where people underpin the long-term customer relationship. Here are some ways in
which people add value to an experience as part of the marketing mix. Let’s consider
training, personal selling and customer service.

Training.

All customer facing personnel need to be trained and developed to maintain a high quality of
personal service. Training should begin as soon as the individual starts working for an
organization during an induction. The induction will involve the person in the organization’s
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culture for the first time, as well as briefing him or her on day-to-day policies and
procedures. At this very early stage the training needs of the individual are identified. A
training and development plan is constructed for the individual which sets out personal goals
that can be linked into future appraisals. In practice most training is either ‘on-the-job’ or
‘off-the-job.’ On-the-job training involves training whilst the job is being performed e.g.
training of bar staff. Off-the-job training sees learning taking place at a college, training
center or conference facility. Attention needs to be paid to Continuing Professional
Development (CPD) where employees see their professional learning as a lifelong process of
training and development.

Product

A business starts with a need. It is this need of a specific market that the company should
provide the solution to. This solution is a product or a service that the company has the
resources to provide. Product is one of the P's referred to in the marketing mix enumerated
in basic marketing theories. Companies have to take time to develop a quality product that
is responsive to the needs of its desired target market. It also has to be relevant,
accessible, and affordable to their market.

Although following these steps is ideal, the reality of it is that new product development
tends to be more complicated. Rather than a step by step process, companies do tend to go
back and forth between stages.

• Strategy Development
Before pondering on creating a new product, a company has to refer to its own strategy.
Firms do use various approaches. In some cases, stockholders have to interfere with
questions on the prudence of the investment in an effort to manage and reduce risks. After
all, developing a new product requires huge expenses and the ultimate aim should be to
create something profitable for the company.

• Generation of Ideas
Ideas do not just come from internal parties or the higher level management. Ideas can come
from different departments. It may come about as a response to the demand of the market. It
can come as a suggestion from a regular employee, etc. In the end, the company has to
decide which idea is worth investing on.

• Screening and Evaluation

There are plenty of great ideas that may be thrown in but some are not feasible. Excellent
ideas may also be discarded for the simple reason that it does not blend well with the
company's core competencies. Validating new product ideas through market research is also
a good idea.

• Business Analysis

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After determining which ideas are consistent with the core competencies of the company and
determining feasibility, further evaluation and analysis of how the product can help the
company reach its business goals is necessary. Factors such as risks, potential market size,
profit projections, and possible competitive response among others have to be duly
considered.

• Product Development
Based on the identified features of the “best” product to meet the customers’ needs, a team of
experts should be able to come up with a product design. The process of product
development differs from one industry to another. No matter what industry the company
belongs to, however, the product development process will have to conform to industry
quality standards. The prototype or samples from product development will then have to go
through market testing.

• Market Testing
To ensure that the product will be well received by the company’s target market, it is
necessary to conduct market testing. As compared to the initial product tests conducted in
laboratories or company premises, this test is conducted in a specific marketplace. Some
companies do sampling in retail outlets and ask consumers for feedback. There are also those
who test the market by having pre-launch offers. This will determine whether the product is
good enough to attract market attention and consumer purchase.

• Commercialization
Depending on the result of market testing, a company may decide to widen its distribution
and release the product to a broader market, either nationally or internationally.
Differentiating Your Product from Competition One of the challenges in this element of
marketing mix is • standing out among competitor brands. The consumer market is filled
with numerous products under the same category fighting for customer attention. To get as
much interest and market share as possible, a product needs to find its differentiating factor.

Process-
Process refers to the processes involved in delivering your products and services to the
customer. It is also about being 'easy to do business with'. Having good process in place
ensures that you: repeatedly deliver the same standard of service to your customers.

Different Kinds of Processes

The marketing mix process talks about various kinds of processes that one can use to
market his products well. These include:

• Electronic Processes. This includes the use of barcodes, receipts, and other forms or
graphics or logos, and the information about a product or a company that come with them.
This may also include the use of those codes that one can scan using an app on his phone.
It’s getting pretty popular these days, you see, and a lot of people feel that it’s cool because it
gives them a sense of virtual reality.

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 • Technological Processes. This sounds vast, but basically, it’s about the process of
creating products that are tangible—that your customers could really feel are theirs.
Not only should the manufacturer create products that he wants, he also should keep in
mind that the products he makes should be ones that would fulfil the client’s needs.

• Direct Activities. Mostly, this is about the reactions of the clients as they get to try
your products, and how you feel about what they have said. Think present time. That’s
when direct activities happen.

• Indirect Activities. Meanwhile, indirect activities talk about support that happens
before, during, or after the service has been given. In short, it is lengthy—it may last
for a lifetime.

Physical Evidence
As a component of the marketing mix, physical evidence is the location and environment
where the customer purchases and/or consumes the product. It is the environment where the
company and customer interact in the exchange of the product. Originally, this was most
pertinent to service products, but the lines have become blurred between service products
and physical products. Companies of both service products and physical products want to
control the physical evidence of the product, as it contributes to the overall customer
experience. It is a way to control and add value through the presentation of intangible
elements of a product. There are various components to physical evidence. These are the
areas that you should consider when building this area of the marketing mix. The components
here are the overall considerations to be made when thinking about this part of the marketing
mix. Some of the components are:

Physical Environment
Physical environment is the location and surroundings the customer is in when the product is
consumed. This is an essential component of physical evidence. It can set the tone, mood, and
is a high contributing factor in the perception of value.

Some elements of the physical environment can be the ambiance, layout, and any other
environmental factors. Paying special attention to the physical environment of where the
product or service is consumed is an important factor in creating the perception of value and
your brand.

Spatial Layout
Spatial layout is a component, which works in conjunction with physical environment. This is
how the environment is setup.

For example, this is how a retail location moves customers through the store. This effects how
customers purchase goods, as well as how they experience the product.
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Ambiance
Ambiance is another component of physical evidence. It is a key factor in setting the mood of
the physical environment. The ambiance factor will include things like lighting, music,
employee dress, and many other peripheral evidence components. Ambiance is how you put
your buyer into the mood for the experience you would like them to have. These are just a few
of the elements that can be controlled when building the physical evidence component of the
marketing mix.

Each element has a place. They all contribute to creating an experience for the customer.
Deciding which elements fit with your business allow you to decide which items to focus on.
Then, you can create the physical evidence component of your marketing mix.

Creating an experience for your customer helps deliver and explain value with many intangible
aspects of product consumption. Physical evidence is a crucial strategy in accomplishing this.
While primarily associated with service products, this can be applied to physical products as
well. Physical evidence as a component of the marketing mix is one component to address
when looking at how your product is consumed.

Pandemic Effect on Marketing of Banking Services

While the banking sector will be negatively affected by the pandemic, it is also critical for
economic recovery. But the crisis will strengthen competitive pressures on banks by
accelerating trends towards digitalisation and new financial service providers. The lockdown to
prevent the spread of the Covid-19 has stopped economic activity across many sectors, with
important repercussions for firms and households. Firms relying on direct customer contact –
such as hospitality and transport – are losing revenue sources; and households working in these
sectors are losing employment income.

The banking sector is also affected, although mostly indirectly. While banking services can be
provided remotely and do not rely on direct customer contact, the linkage of the sector with the
real sector as provider of payment, savings, credit and risk management services extends the
negative effect of the Covid-19 crisis to banks and other financial institutions. At the same
time, the banking sector has the role of supporting firms and households during this period of
lower revenues and incomes, which has triggered important policy actions by financial
supervisors and governments.

First, firms that have stopped working miss out on revenues, and therefore might not be able
to repay loans. Similarly, households with members who have lost their jobs or are
furloughed have less income, and therefore might not be able to repay their loans. This will
11
result not only in lost revenue but also in losses (if repayment capacity is permanently
impaired), negatively affecting profits and bank capital. And as a swift recovery becomes
less likely, banks can expect further losses, resulting in the need for additional provisions,
further undermining their profitability and capital position.

Second, banks are negatively affected as bonds and other traded financial instruments have
lost value, resulting in further losses for banks. There might also be losses from open
derivative positions that have moved in unexpected directions due to the crisis.

Third, banks face increasing demand for credit, as especially firms require additional cash
flow to meet their costs even in times of no or reduced revenues. In some cases, this higher
demand has presented itself in the drawdown of credit lines by borrowers.

Fourth, banks face lower non-interest revenues, as there is lower demand for their different
services. For example, there are fewer payments and transactions to be done with lower
economic activity, and fewer security issues by corporates reduce fee income for investment
banks.

Losses and lower capital buffers in banks can have negative spillover effects, which might
make banks’ solvency position even worse and might also undermine the broader economy.
Banks might sell bonds and other traded financial instruments to improve their liquidity
position or to make up for losses, with prices of these instruments falling as a consequence
and negatively affecting other banks that hold them.Banks might reduce credit provision to
the economy, thus negatively affecting firms relying on such buffers, undermining their
survival. We saw similar spillover effects during the 2008/09 global financial crisis. This
could make the economic shock even worse.

Influence of Marketing on Customer

Customers are the asset for the business hence they have all the rights to receive proper care and
attention. Customers should be given utmost importance and treated nicely because the business
can’t flourish without customers. So companies should make all the desired efforts to impress
the customers and create the lasting impression. In an increasingly digitized world, influencer
marketing, which focuses on marketing through people rather than directly to the market, is
one of the most successful ways to reach and influence potential customers.
This form of marketing focuses on identifying the right type of influencers who have greater
impact on the desired market.

State Bank of India (SBI) Marketing Mix (7Ps) Strategy

Marketing Mix of State Bank of India (SBI) analyses the brand/company which covers 7Ps
(Product, Price, Place, Promotion, People, Process, Physical evidence) and explains the State
Bank of India (SBI) marketing strategy. There are several marketing strategies like
product/service innovation, marketing investment, customer experience etc. which have
helped the brand grow.
12
Marketing strategy helps companies achieve business goals & objectives, and marketing mix
(7Ps) is the widely used framework to define the strategies. This article elaborates the
product, pricing, advertising & distribution strategies used by State Bank of India (SBI).
Let us start the State Bank of India (SBI) Marketing Mix & Strategy:
State Bank of India (SBI) Product Strategy:
The product strategy and mix in State Bank of India (SBI) marketing strategy can be
explained as follows-
State Bank of India offers services in various sectors such as personal banking, rural
banking, corporate banking, International Banking. Rural & Agricultural Banking has many
services such as Kisan Credit Card, Farm Mechanization loan, Poultry Loan, Gold Loan,
Fisheries Loan, Dairy Loan, Micro credit, Pradhan Mantri JanDhan Yojana, Direct Benefit
transport. Personal Banking by SBI includes deposits such as Savings account, CC account,
Salary account, Fixed deposit, Recurring deposit. SBI Loans are available such as Gold
loans, car loans, education loan, personal loans, home loans, etc. SBI gives corporate
services such as Corporate account groups, mid-corporate account groups, Project finance,
etc. International banking of SBI consists of wholesale banking, retail, banking, Global trade
service, correspondent banking, treasury management. Other services offered are, Aadhaar
seeding, ATM services, mobile banking, Internet banking, Cash deposit machines, Demat
services, Invest Bonds, etc. This covers the product strategy in the marketing mix of State
Bank of India.
State Bank of India (SBI) Price/Pricing Strategy:
Below is the pricing strategy in State Bank of India (SBI) marketing strategy:
State Bank of India has a pricing strategy based on competition, RBI guidelines and
customer demand.
The marketing mix pricing strategy governs the operations of SBI bank as follows. Services
provided by SBI follow the guidelines provided by Reserve Bank of India. SBI
competitively prices its services because Banking sector has become highly competitive.
Government policies heavily affect prices of the services provided by the bank. Since loan is
highly risky pricing also depends on the total to which the assets and liabilities amount to.
State Bank of India (SBI) Place & Distribution Strategy:
Following is the distribution strategy of State Bank of India (SBI):
SBI operates in over 18 thousand branches in India. Majority of its banks are in rural areas
since it is a public sector bank and aims to serve the whole of India. SBI is present in 36
countries with over 190 branches overseas. SBI also provides its services through mobile
banking and Internet banking. It also has cash deposit stations and a huge network of ATMs.
It also has its presence through associate banks such as State bank of Hyderabad, State Bank
of Patiala, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner & Jaipur,
Bhartiya Mahila Bank, etc.

13
State Bank of India (SBI) Promotion & Advertising Strategy:
The promotional and advertising strategy in the State Bank of India (SBI) marketing strategy
is as follows:
State Bank of India (SBI) promotes itself through various media such as Print media and
audio visual media such as Radios Hoardings, Newspaper advertisements, TV-commercials,
movies, etc. Its tagline, ‘The Banker to every Indian’ turns out to be perfectly apt given its
presence across India. SBI smartly conveys its policies through its advertisements. Recently,
it has been adapting to the modern approach and devising its advertisements accordingly.
Thereby, it has employed famous personality to reinforce the idea of trust and SBI in
customers’ minds. Being affordable and present at almost every town, village and city has
been its indirect promotion due to its increased presence.
State Bank of India (SBI) People Strategy:
All people directly or indirectly involved in the consumption of banking services are an
important part of the extended marketing mix. Knowledge Workers, Employees,
Management and other Consumers often add significant value to the total product or service
offering. It is the employees of a bank which represent the organization to its customers .In a
banking organization, employees are essentially the contact personnel with customer.
Therefore, an employee plays an important role in the marketing operations of a service
organization .To realize its potential in bank marketing, SBI become conscious in its
potential in internal marketing – the attraction, development, motivation and retention of
qualified employee-customers through need meeting job-products. Internal marketing paves
way for external marketing of services. In internal marketing a variety of activities are used
internally in an active, marketing like manner and in a coordinated way. The starting point in
internal marketing is that the employees are the first internal market for the organization. The
basic objective of internal marketing is to develop motivated and customer conscious
employees. A service company can be only as good as its people. A service is a performance
and it is usually difficult to separate the performance from the peopleIf the people don’t meet
customers’ expectations, then neither does the service. Therefore, investing in peoples'
quality in service business means investing in product quality.

14
State Bank of India (SBI) Process Strategy:
Flow of activities: All the major activities of SBI banks follow RBI guidelines. There has
to be adhered to certain rules and principles in the banking operations. The activities
have been segregated into various departments accordingly.Standardization: SBI bank
has got standardized procedures got typical transactions. In fact not only all the
branches of a single-bank, but all the banks have some standardization in them. This is
because of the rules they are subject to. Besides this, each of the banks has its standard
forms, documentations etc. Standardization saves a lot of time behind individual
transaction.Customization: There are specialty counters at each branch to deal with
customers of a particular scheme. Besides this the customers can select their deposit
period among the available alternatives.Number of steps: Numbers of steps are usually
specified and a specific pattern is followed to minimize the time taken.
Simplicity: In SBI banks various functions are segregated. Separate counters exist with
clear indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter
and does not mingle elsewhere. This makes procedures not only simple but consume
less time. Besides instruction boards on national boards in national and regional
language help the customers further.Sustomer involvement: ATM does not involve any
bank employees. Besides, during usual bank transactions, there is definite customer
involvement at some or the other place because of the money matters and signature
requires.
State Bank of India (SBI) Physical Evidence Strategy:
Physical evidence is the material part of a service. Strictly speaking there are no
physical attributes to a service, so a consumer tends to rely on material cues. There are
many examples of physical evidence, including some of the following:

• Internet/web pages

• Paperwork

• Brochures

• Furnishings

• Business cards

• The building itself

The physical evidences also include signage, reports, punch lines, other tangibles, employee
dress code etc.

Signage: Each and every bank has its logo by which a person can identify the company. Thus
such signages are significant for creating visualization and corporate identity.
15
Financial reports: The Company’s financial reports are issued to the customers with
emphasis or credibility.

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks,
checkbooks, etc. reduce the inherent intangibility of services.

Punch lines: Punch lines or the corporate statement depicts the philosophy and attitude of the
bank. Banks have influential punch lines to attract the customers.

Employee’s dress code: SBI bank follows a dress code for their internal customers. This
helps the customers to feel the ease and comfort.

Competitive analysis in the Marketing strategy of SBI –

The advent of technology in Banking industry has provided for the immense opportunity to
the players which has stagnated or has been marred by Non Performing Assets in recent
years. Governments push by infusing in funds into the public sector banks has given the
industry some breathing space which has been struggling in recent years. SBI seems to have
already taken a head start in Digital Banking when it comes to its competitors with its
bouquet of Digital services.

Major Competitors of SBI includes:

• Punjab National Bank

• ICICI Bank
• HDFC Bank
• Bank Of Baroda
• Axis Bank

HDFC BANK

• HDFC Bank Limited is an Indian banking and financial services company

headquartered in Mumbai, Maharashtra.
• It is the largest bank in India by market capitalisation as of March 2020.[12]
• A subsidiary of the Housing Development Finance Corporation, HDFC Bank was
incorporated in 1994, with its registered office in Mumbai, Maharashtra, India. Its first
corporate office and a full-service branch at Sandoz House, Worli were inaugurated by
the Union Finance Minister, Manmohan Singh.

16
HDFC Bank Marketing Mix (7Ps) Strategy
Marketing Mix of HDFC Bank analyses the brand/company which covers 7Ps (Product,
Price, Place, Promotion,Process, Physical Evidence) and explains the HDFC Bank marketing
strategy. There are several marketing strategies like product/service innovation, marketing
investment, customer experience etc. which have helped the brand grow.
Marketing strategy helps companies achieve business goals & objectives, and marketing mix
(7Ps) is the widely used framework to define the strategies. This article elaborates the
product, pricing, advertising & distribution strategies used by HDFC Bank.
Let us start the HDFC Bank Marketing Mix & Strategy-
HDFC Bank Product Strategy:
The product strategy and mix in HDFC Bank marketing strategy can be explained as
follows:
HDFC Bank is one of the leading banks in India. HDFC offers a wide range of products in
its marketing mix strategy, namely in personal and enterprise sector. The various services
offered by HDFC Bank are summarized as follows. Accounts and deposits which covers
savings accounts, salary accounts, current accounts, deposits, safe deposit lockers, rural
accounts and pension accounts. HDFC Bank offers loans to meet the diverse needs and it
cover personal loans, car loans, business loans etc. HDFC offers cards which includes credit
cards, debit cards, prepaid cards, credit card reward programs and loan on credit card. Demat
options for investors which includes demat account, 2 in 1 account, 3 in 1 account and
investment assist. Investment options covering Invest Track, investment products,
investment advisory group reports, PPF (public provident fund) and sukanya samriddhi
account are provided to HDFC customers. Insurances for various options like life, health,
motor insurance, travel, home, two wheeler and student travel - suraksha. Forex includes
travel solutions, remittance products, other forex services for help and purchase.
HDFC Bank also includes online payment options like Pay bills and shop online, Fund
transfer options, bill payments, tax payment, donate online etc. The premier options include
Direct equity, Mutual funds, Fixed income products, Insurance, Private equity funds,
Structured products and Estate planning.

HDFC Bank Price/Pricing Strategy:

Below is the pricing strategy in HDFC Bank marketing strategy:
HDFC Bank follows a competitive pricing strategy in its marketing mix but maintains a
premium level at the same time.
It is clearly visible that it enjoys maximum market capital in terms of shares in India. The
other domestic competitors are either PSUs or national bank, HDFC Bank is always priced
higher in terms of minimum cap required to open a new account. RBI controls and regulates
the pricing policies, like for any other bank in India.

17
HDFC Bank Place & Distribution Strategy:
Following is the distribution strategy of HDFC Bank:
HDFC banks has got a strong presence all across India. Till 2016, HDFC outreached 4500+
branches in approx 2600 cities/towns with 12000 ATMs. HDFC Bank makes sure that its
presence is felt in each and every corner of the nation and every individual should avail its
facilities equally. HDFC has its major offices in cities and towns for smooth operation
process. Its website is well designed and well maintained.It facilitates ease of net banking,
online payment options, etc.
HDFC Bank Promotion & Advertising Strategy:
The promotional and advertising strategy in the HDFC Bank marketing strategy is as
follows:
HDFC Bank focuses a lot on the promotional strategy in its marketing mix. HDFC is
involved in large number of CSR activities for sustainable livelihood, financial literacy,
education, training and community initiatives. HDFC has always made its presence feel in
the media through advertisements, hoardings, posters, ads in newspapers, magazines,
promotional events, sponsorships, etc. HDFC also has shareholdings in corporate bodies,
mutual funds, financial institutions, etc which creates a sense of value and trust amongst the
shareholders and customers towards this particular brand.
HDFC Bank People strategy:
HDFC Bank gives strong importance on its people ie customers and employees. Through its
multi demographic culture it is clearly visible that HDFC believes in diversity and inclusion.
In India it has spread its offices geographically in every state, to spread awareness to the
maximum number of people. With the help of this advanced technology, HDFC bank
employees will be highly satisfied and they will always get competitive edge over others.
HDFC Bank Physical Evidence strategy:
HDFC provides best in house facilities with up to date infrastructure and global environment
in all its offices. The complete setup helps the employees to experience the best work
environment so that they perform as per the organization’s expectations. HDFC offices,
branches, credit cards, website etc are all the physical evidence of the brand.
HDFC Bank Process strategy:
HDFC bank has several business processes like all other financial institutions. Through the
various social activities and best practices HDFC maintains a good relation with its
customers and investors, which in turn avoids a bad ‘word of mouth’. All these helps the
organisation to grow in long term and motivates its employees to continue being loyal to it
and give their best throughout their tenure. The customers are also successfully retained and
new ones are attracted. Hence, this concludes the marketing mix of HDFC bank.

18
 CHAPTER -2 RESEARCH METHODOLOGY

Research statement-
In depth analysis of Marketing of Banking Services.

Objective of the study-

This project is concerned about how marketing plays an important role in banking sector.

To study how the Marketing Mix places an important role in formulating the Marketing
Strategies.

To study the impact of marketing strategy on customer.

To ascertain the behaviour of customer towards new marketing strategy.

To identify various marketing strategy adopted by HDFC Bank& SBI.

Hpothesis-
TEST 1: CHI SQUARE TEST
H0: There is no significant relation between the Occupation and the level of
satisfaction respondents.
H1: There is significant relation between the occupation and the level of
satisfaction respondents.
TABULATION OF OCCUPATION AND LEVEL OF SATISFACTION
Table of Observed Data –
Occupation
Satisfaction Salaried Business Professional Housewife StudentT Total
level man

Extremely 0 0 0 0 2 2
Dissatisfied
Dissatisfied 2 0 1 0 3 6
Neutral 9 2 2 2 25 40
Satisfied 5 1 1 2 10 19
Extremely 3 0 0 0 5 8
Satisfied
Total 19 3 4 4 40 70
19
 Table of Expected Values –
Occupation
Satisfaction Salaried Businessman Professional Housewife Student Total
level

Extremely 0.54 0.08 0.11 0.11 1.14 1.98

Dissatisfied
Dissatisfied 1.62 0.25 1.34 0.34 3.42 6.97
Neutral 10.85 1.71 2.28 2.28 22.85 39.97
Satisfied 5.15 0.10 1.08 1.08 10.85 18.26
Extremely 2.17 0.34 0.45 0.45 4.57 7.98
Satisfied
Total 20.33 2.48 5.26 4.26 42.83 75.16

Here, LEVEL OF SIGNIFICANCE (α) = 0.05(5%)

P -Value = 0.9677

Since, P – Value > α

0.9677 > 0.05, so we can accept the null hypothesis.

From the above table it can be inferred that since the significance value is 0.05 and the p-
value 0.9677 which is greater than the significance level. The difference is considered
insignificant.

The null hypothesis is accepted and therefore there is no significant relation between the
Occupation and the level of satisfaction of the respondents.

SCOPE OF THE STUDY

This study revolves about various marketing strategies and the facilities which are accessible
to the general public. It describe about its various functions and pros & cons of Marketing of
banking services in India. It shows how vital role does marketing play in developing
countries such as India. This research will further help to gain knowledge and various terms
in Marketing of Banking Services.

20
LIMITATIONS OF STUDY

The present study was undertaken to maximize objective and minimize error. However, there
are certain limitations of the study which are to be taken into considerations for the present
work. Some of the people were not responsive. Possibility of error in data collection because
many of investors may have not given actual answer to the question.

SIGNIFICIANCE OF STUDY

With increasing awareness among people about different marketing strategy and the policies
implemented by different banks all around the globe. It is important to know the all the
schemes and policies provided by different banks as well know its advantages and
disadvantages. Various services which are provided by banks may not be feasible to some.

SELECTION OF THE PROBLEM

The study on marketing of banking services has been selected in order to study and examine
how banks marketing influence to their customer and also learn about the important role of
marketing in banking sector & 7Ps of marketing.

RESEARCH DESIGN
Type of Methodology: Descriptive research.

The methodology for research adopted for carrying out the study was:

1st Stage – Theoretical/Detailed study was completed

2nd Stage - Customer of SBI & HDFC Bank

Sample Design
It is a particular definite plan formulation before collecting the data from population. The
research should select a particular sample. In sampling, there are 2 types: non - probability
sampling and probability sampling. In this research, non-probability sampling is only used.

Sampling
Sampling design : Non-probability sampling

Sampling technique : Random sampling

Sample unit : People visiting the bank

21
 Sample size : 70 respondents

Data analysis method : Tables and graphical method

DATA COLLECTION METHOD

In this research, internal and external source of data are used. The raw materials were
collected through researchers. Collecting data from company records and document, these
are all internal data and other data are external.

In data collection, there are 2 types-

Primary Data

In this, questionnaire is used for collecting the data.

Secondary Data

It is gathered from standard books, internal sources, newspapers and magazines, also
collecting data from external and internal sources from the company annual reports,
company additional profile and company website.

TOOLS AND TECHNIQUES USED –

Tools used for data analysis are bar graphs, line graph , pie charts. Hypothesis has been
proved using CHI-SQUARE TEST.

22
 CHAPTER-3: LITERATURE REVIEW

A number of studies have been conducted abroad over a period of time regarding the
marketing strategies applicable in the banking sector. Followings few of the studies are
reviewed hereunder as they would facilitate a clear backing for carrying out the present study
[4, 190–195]; explains the marketing mix strategies such as product mix, place mix,
promotion mix, price mix, people mix, physical evidence mix and processes mix for the
service sector [4, 190–195]; explains that all the techniques and strategies of marketing are
used so that ultimately they induce the people to do business with a particular bank. To
create and keep a customer means doing all those things so that people would like to do
business and continue to do it with a particular bank rather than with the competitors. A
business is not a business if it cannot stay in business. It cannot stay in business if it does not
attract and hold enough customers, no matter how efficiently it operates [5], noted that there
was considerable ignorance about the facilities and services offered by banks and the roles
they were required to play. Most bank customers are unaware of various schemes and
services offered by banks. The group recommended educational campaigns to be carried out
by banks illustratively and every customer of bank should be provided a booklet containing
the range of services offered by banks. The survey conducted by the working group pointed
out that by and large less educated people and females are far away from the banks [6, 47];
in his book “Services Marketing”, deals with bank marketing, marketing research, market
segmentation, marketing mix for banking services, bank marketing [7, 31–36], places the
branch bank manager in a central position in the business in respect of the marketing
efficiency of the banks at the local level. The study identified three reasons which underlie
the lack of marketing orientation: motivation, ability and time and says that banks need to
move quickly to ensure that branch bank managers can speedily meet the challenge. It was
suggested that managers be given knowledge and develop in them to implementing the
principles in practice. The author feels that despite the existence of commercial banks, which
were established to make available timely and adequate services to the customers. Banks
suffered due to lack of adequate and appropriate strategies for marketing their financial
services. He explained the MARKETING STRATEGIES IN BANKING SECTOR 189
marketing mix strategies such as product mix, place, promotion, price, people, physical
evidence and processes for the service sector [8, 253–271] tried to investigate the impact of
relational benefits on customer satisfaction in retail banking through an empirical study
using a sample of 204 bank customers at three large Spanish cities located in central Spain.
They found that confidence benefits have a direct, positive effect on the satisfaction of
customers with their bank. However, special treatment benefits and social benefits did not
have any significant effects on satisfaction in a retail banking. [9, 568–585] aimed to assess
and compare the level of bank service quality provided in Greece and Bulgaria and to
identify the dimensions of quality service in the two countries. [10, 15–23]; conducted a
study on ‘Marketing of Banking Services, Constraints, Challenges and Strategy’ and found
that mixed banking, complaints from customers about bank charges, competition from non-
banking financial companies and growing investment consciousness of the public are some
of the impediments to bank marketing. It is suggested that the branch manager can design
appropriate marketing strategy through identification of customer needs and service
23
efficiency with appropriate differentiation by understanding customer behavior. [11]
presented a set of practical ideas and strategies for managing them, as seen by a practicing
banker. A major aspect of his study was the concept psychological ownership and its
relevance in bank marketing and an approach for developing customer satisfaction products,
packages and need for local touch, training in bank marketing and its credibility, relationship
marketing and niche marketing.
Mehta (2010) in his article” Personal Selling-A Strategy for promoting Bank Marketing
“reported that there is lack of Marketing Communication in Indian Banks .He suggested for
adopting banks suitable marketing promotion
strategies for better business. He emphasized that on adoption of personal selling as a
strategy for marketing promotion in Banks the banking business can improve considerably.
Turnbull, Peter W. (1982), places the branch bank manager in a central position in the
business in respect of the marketing efficiency of the banks at the local level. The study
identified three reasons which underlie the lack of marketing orientation: motivation, ability
and time and says that banks need to move quickly to ensure that branch bank managers can
speedily meet the challenge. It was suggested that managers be given knowledge inputs on
the principles of marketing and develop in them the commitment to implementing the
principles in practice
Ravisankar, T.S. (1985); in a study on “Marketing Strategies and Planning for Business
Growth in Banks” says that the marketing plan for banking services should be supported by
appropriate marketing strategies. He suggests that marketing strategy for banks must be
oriented towards customers-current and potential as well.
Radhakrishnan, S.(1987); conducted a study on 'Marketing of Banking Services,
Constraints, Challenges and Strategy' and found that mixed banking, complaints from
customers about bank charges, competition from nonbanking financial companies and
growing investment consciousness of the public are some of the impediments to bank
marketing. It is suggested that the branch manager can design appropriate marketing strategy
through identification of customer needs and service efficiency with appropriate
differentiation by understanding customer behaviour
. Talwar, R.K. (1975), Chairman of „Working Group on Customer Service in Banks‟ noted
that there was considerable ignorance about the facilities and services offered by banks and
the roles they were required to play. Most bank customers are unaware of various schemes
and services offered by banks. The group recommended educational campaigns to be carried
out by banks illustratively and every customer of bank should be provided a booklet
containing the range of services offered by banks. The survey conducted by the working
group pointed out that by and large less educated people and females are far away from the
banks. The study observed that developing banking habits is not only a strategy for social
uplift only but is equally important a strategy for bank marketing in the long run.
Jha, S.M. (1982); in his book “Services Marketing”, deals with bank marketing, marketing
research, market segmentation, marketing mix for banking services, bank marketing in
Indian environment. The author feels that despite the existence of commercial banks, which
were established to make available timely and adequate services to the customers. Banks
suffered due to lack of adequate and appropriate strategies for marketing their financial
services. He explained the marketing mix strategies such as product mix, place mix,
24
promotion mix, price mix, people mix, physical evidence mix and processes mix for the
service sector.
Levitt, T. (1974); explains that all the techniques and strategies of marketing are used so that
ultimately they induce the people to do business with a particular bank. To create and keep a
customer means doing all those things so that people would like to do business and continue
to do it with a particular bank rather than with the competitors. A business is not a business if
it cannot stay in business. It cannot stay in business if it does not attract and hold enough
customers, no matter how efficiently it operates.

25
CHAPTER-4DATA ANALYSIS , INTERPRETATION &PRESENTATION
The study is based on a primary data collected through the structured questionnaire. It covers
the sample size 70 respondents. Frequency and percentage method will be applied for data
analysis and interpretation . Based on respondents response the charts have been drawn.

The below tables and charts displays the demographic profile of the respondents .

AGE
Age Frequency Percentage (%)
Less than 18 3 4.3
18-25 51 72.9
25-35 6 8.6
35-50 5 7.1
50-75 5 7.1
75-100 0 0
Total 70 100

The above figure describes the age wise classification of the respondents. Out of total 70
respondents, 3 people are below 18 year & 51 are above 18 but below 25 & 6 are above 25
but below 35 & 10 are above 35 but below 75 and above 75 no one fill the form. The pie
chart show 18 to 25 age people showing interest to giving feedback.

GENDER
Gender Frequency Percentage(%)
Male 35 50
Female 35 50
Transgender 0 0
Total 70 100
26
Interpretation;

The above figure describes the gender wise classification of the respondents. Total of 70
respondents. Out of total respondents. , 50% are male and 50% are female and none of the
respondents are from transgender category.

The above table and chart shows that the both male and female are using banking services in
equal number.

OCCUPATION
Occupation Frequency Percentage(%)
Salaried 19 27.1
Businessman 3 4.3
Professional 4 5.7
Housewife 4 5.7
Student 40 57.1
Total 70 100

27
Interpretation;

The above figure describes the occupation wise classification of the respondents . out of total
70 respondents, salaried are 19 , businessman are 3, professional are 4 , housewife are 4 and
student are 40. We saw that more students using banking services.

1. You are customer of which bank.

Customer of Bank Frequency Percentage(%)
SBI 34 48.6
HDFC 9 12.9
Other 27 38.5
Total 70 100

Interpretation;

28
The above figure describes the customer of banks 34 in SBI and 9 in HDFC &27 customer
from other bank we saw that there are large number of SBI customer compare to any other
banks.

2. Are you aware of your bank logo.

Aware of Bank logo Frequency Percentage(%)

Yes 65 92.9
No 5 7.1
Total 70 100

Interpretation;

The above figure describes the awareness of bank logo from customer. Out of total 70
customer65 customer are aware of their bank logo and 5 are not aware of their bank logo.

The above table show that more number of people aware of their bank logo.

3. Are you satisfied with your bank location.

Satisfied with Bank Frequency Percentage(%)

location
Yes 58 82.9
No 12 17.1
Total 70 100

29
Interpretation;

The above figure describes the bank location satisfaction from customer& the 58 customer
are satisfied by their location and 12 are not satisfied. We saw that more number of
customer are satisfied their customer.

4. Which type of account do you have in bank.

Interpretation;

In the above diagram more number of customer have saving account in bank and very few
customer have NRI account and most have also fixed and loan account. We saw that
maximum customer generally have saving account.

5. How do you know about the new services offered by your bank.
30
New Services Frequency Percentage
Bank website 19 27.1
Social media 9 12.9
Received e-mail from 24 34.3
bank
Advertisement 12 17.1
Other 6 8.6
Total 70 100

Interpretation;
From this picture it is clearly visible that most of the people know about new services from
their email. Sometimes they received information from their bank website. Some bank
advertise their new services through television and social media. Some bank use message
method to give information.
6. When you visit your branch how would you feel ?

31
Interpretation;
Most of the people feel helpful when they visit their branch. They are happy with the
interaction happened in the bank. Only few percent of people feel dissatisfied. Some people
satisfied with the proper sanitation. Few people are dissatisfied.

7. Do you think that there is adequate staff at the bank to meet your
requirement.

Adequate staff Frequency Percentage

Yes 55 78.6
No 15 21.4
Total 70 100

Interpretation:

32
Most of the people feel that there are adequate numbers of staff to meet the requirement at the
bank. Only few feel that there is less number of staff and they have to wait for the chances . Out
of total 70 customer 55 said yes and 15 said no.

8. Do you agree that the process of withdrawing money from bank is easy?
Withdrawing money Frequency Percentage (%)
Agree 43 61.4
Strongly disagree 3 4.3
Disagree 1 1.4
Neutral 20 28.6
Strongly agree 3 4.3
Total 70 100

Interpretation:

Most of the people feel that the process of withdrawing money from the bank is easy. Few
people feel neutral about this. Some people show they are disagreed with this fact. They are
facing problem in withdrawing money from their bank.

9. Do you agree that the process of depositing money in your bank account is
easy?

Depositing money Frequency Population

Agree 46 65.7
Strongly disagree 4 5.7
Disagree 1 1.4
Neutral 16 22.9
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Strongly agree 3 4.3
Total 70 100

Interpretation:

Most of the people feel that the process of depositing money in the bank is easy. With this
graph it is clear that 65.7% of the people are satisfied. Few people feel neutral about this.
Some people show they are disagreed with this fact. They are facing problem in depositing
money in their bank.

10. Are you using online banking services ?

Online Banking Frequency Population (%)

Services
Yes 64 91.4
No 6 8.6
Total 70 100

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Interpretation:

This graph shows that in today world most of the people used online banking services.
91.4% people used Online banking services and only few percent of people (8.6%) not used
these services now days. But we can predict in future almost 99% of the people uses this
services.

11. Are you happy with online banking services?

Happy with online Frequency Population (%)

banking services
Satisfied 52 74.3
Dissatisfied 6 8.6
Neutral 12 17.1
Total 70 100

Interpretation
From the above graph it is clear that most of the people used online banking services. This
graph shows that 74.3% of the people are satisfied with the online banking services. 17.1%
feel neutral about this service. Few people are dissatisfied with online banking services.

12. Sufficient number of ATM services .

Number of ATM Frequency Percentage
services
Satisfied 44 62.9
8 11.4
Dissatisfied
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 18 25.7
Neutral
Total 70 100

Interpretation
From this pie chart it is clearly visible that most of the people are satisfied with the no of
ATM machine. 25.7% of the people had neutral reaction.11.4% people are Dissatisfied with
the number of ATM machine.

13. You feel your bank provide cheap loan rates as compared to other
bank.

Cheap loan rate Frequency Population

Yes 31 44.3
No 39 55.7
Total 70 100

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Interpretation
This pie chart shows that most of the people are not happy with the interest rate. 44.3% of
the people are happy with the interest rate given by their banks and 55.7% of people are not
happy with their bank interest rate. Most of the people feel that their bank does not provide
cheap loan as compared to another bank.

14. Are you satisfied with your saving account interest rate?

Saving account Frequency Population

Yes 41 58.6
No 29 41.4
Total 70 100

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Interpretation

This pie chart shows that most of the people are happy with the saving account interest rate.
58.6% of the people are happy with the saving account interest rate given by their banks and
41.4% of people are not happy with their saving account interest rate.

15. Please rate your overall satisfaction level with your recent experience in
your bank.

Satisfaction Level Frequency Population

Extremely Dissatisfied 3 4.3
Disatisfied 2 2.9
Neutral 22 31.4
Satisfied 38 54.3
Extremely satisfied 5 7.1
Total 70 100

Interpretation

This pie chart shows that the overall satisfaction level of the customers. 54.3% of the people
are satisfied with their bank services. 31.4% are extremely dissatisfied with their bank
services. Very few people feel neutral about this. The ratio of people who feel extremely
satisfied is very less. Bank needs to work more to improve their services.

16. In the space below, please provide any additional feedback you would
like to share related to bank services.

Bank related work are very slow.

38
They have to improve in every kind of savings bank account they have. they don’t have zero
balance account
Standard Chartered needs to increase their ATMs
Need to improvement on bank server during emergency sometimes has down
Nothing everything is fine.
.
Nothing too much
Just Okay
It's availability of ATM system is good
Their speed of doing work must be little faster , and also supportive and friendly staff required
When we are using offline banking services then it is very problematic and time taking process.
No thanks
Need much more changes and come office timely
Bank on sale... Legacy of nation is going to sold to private parties for the shake of electoral
donation in parties fund...May God save my Nation...
Services should be more efficient
Banking service become easy but risky.
Nothing
Provide proper staff so services may run smoothly
Provide strong security related to online banking bcz something time unnecessary activity
happened like cyber attack that's cause many people is not interested or satisfied with online
banking.
Cool🙃
regarding online banking after unsuccessful transaction they takes lots of time to return my
money
How will banks improve if the staff is inadequate plus the government is not noticing the NPA
problem
Please put some more ATMs
Withdraw cash bank

Interpretation
Above question is about the additional feedback given by the customers at the time of the
survey. Bank needs to work more on their services to increase customer satisfaction. Bank
needs to improve their marketing strategy.

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 CHAPTER 5- CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS

It is concluded that service marketing plays a major role in banking sector. The banking
sector plays a key role in the development of the economy. Banks are now giving importance
to the marketing 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. Service marketing mix plays a major role
in banking sector. State Bank of India is offering many products and it has opened many
branches throughout India and at international level. State Bank of India follows the
guidelines of Reserve Bank of India in framing its pricing policy and rules. In State Bank of
India the people visit various campuses and participate in road shows. Better work
environment is provided by SBI. The bank also provides incentives to its staff. The tagline of
SBI is -―The Banker to Every Indian‖.

Based on the study conducted it can be concluded that responsiveness, assurance and
reliability are the critical dimensions of service quality of HDFC bank and they are directly
related to overall service quality. The factors that may delight customers tend to be
concerned more with the intangible nature of the service, commitment, attentiveness,
friendliness, care, and courtesy. The employees give prompt services, always are ready to
answer the questions and are trustworthy. The main sources of dissatisfaction appear to be
cleanliness, up to date technology modern equipments, and neatly dressed up employees.
The Tangibility dimension of service quality of HDFC bank is highly disappointing and
serious steps are needed to be taken to enhance this dimension. Customers of the bank are
dissatisfied with the empathy dimension. To satisfy these customers, the management can
take some attempts, noted earlier as recommendations. The study brings about the areas
which require urgent attention of the employees, the management, and the policy makers of
the industry. These are areas in which customers are hugely dissatisfied with the services of
the banks against their expectation. This high degree of dissatisfaction resulting from the
services received clearly questions the design of services or subsequent response of the bank
employees. These limitations are too serious to be avoided as these question the front-line
people dealing with the customers and the approach of the management in taking customers
seriously. The management should understand the benefits of service quality. It include
increased customer satisfaction, improved customer retention, positive word of mouth,

40
reduced staff turnover, decreased operating costs, enlarged market share, increased
profitability, and improved financial performance. In the days of intense competition,
superior service is the only differentiator left before the banks to attract, retain and partner
with the customers. Superior service quality enables a firm to differentiate itself from its
competition, gain a sustainable competitive advantage, and enhance efficiency. Thus,
improving service quality leads to the customer satisfaction and, ultimately, to customer
loyalty.

SUGGESTIONS
Reliability is an obvious place to start. Customers of the bank want to know their resources
are safe and within trustworthy institutions. A way to ensure this peace of mind would be to
take steps to ensure bank employees are well trained, so each bank associate is able to offer
complete and comprehensive information at all times. Consistent policies combined with a
knowledgeable staff will foster a high degree of institutional cohesion and reliability.
Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing HDFC bank be
regarded as responsive. Staff should be encouraged to present relevant options to banking
customers in a manner that does not resemble salesmanship so much as a desire to serve.
Intangibles please customers just as much as tangibles in the banking industry. People tend
to visit the same branch of a bank over and over again. Usually, this is a location close to
their home or their workplace. It is natural that customers become comfortable and
habituated to these branch banks, for the same reason they develop familiarity with a
neighbourhood supermarket or convenience store. It makes sense that bank employees would
be encouraged to learn to recognize these regular customers, learn their names, and begin to
identify their basic service requirements. Learning to understand customers‟ needs will allow
bank associates to offer enhanced services, perhaps lowering customers‟ banking costs and
increasing their investment potential. This could also open up the possibility of increased
profits for banks, for when perceived as more service and customer oriented, they will, in
effect, become a useful and pleasant way to “shop.” Keeping the bank with up-to-date
technologically are important factors. Modern equipments, new improved technology should
be replaced with the old ones. If the staff inside is pleasant and well-informed, in an
aesthetically pleasing environment, then customer satisfaction will be high.

41
 BIBLIOGRAPHY

BOOKS

➢ Kotler Philip, marketing management,

➢ Malhotra K. Naresh, marketing research

LINKS

➢ www.hdfcindia.com

➢ https://www.mbaskool.com/marketing-mix/services/16758-state-bank-of-india-
sbi.html

➢ http://ijariie.com/AdminUploadPdf/Marketing_of_the_Banking_Services_1453.p
df

➢ https://www.academia.edu/37167985/project_on_the_marketing_of_banking_ser
vices_doc

➢ https://www.onlinesbi.com/

➢ https://www.diva-portal.org/smash/get/diva2:1028962/FULLTEXT01.pdf

WEBSITES

➢ www.google.com
➢ www.yahoo.com

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 ANNEXURES

QUESIONNAIRE ON MARKETING OF BANKING SERVICES

NAME -------------------------------------

EMAIL ID --------------------------------------

AGE GROUP

Gender

43
Occupation

1.You are customer of which bank?

2. Are you aware of your bank logo ?

3. Are you satisfied with your bank location ?

44
4. Which type of account do you have in bank?

5. How do you know about the new services offered by your bank?

6. When you visit your branch how would you feel ?

45
7. Do you think that there is adequate staff at the bank to meet your
requirement?

8. Do you agree that the process of withdrawing money from bank is easy.

9. Do you agree that the process of depositing money in your bank account is
easy.

10. Are you using online banking services.

46
11. Are you happy with online banking services.

12. Sufficient number of ATM services?

13. You feel your bank provide cheap loan rates as compared to other bank ?

14. Are you satisfied with your saving account interest rate?

47
15. Please rate your overall satisfaction level with your recent experience in your
bank.

16. In the space below , please provide any additional feedback you would like
to share related to bank services.

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