CHAPTER 1 : INTRODUCTION OF MARKETING MIX

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MEANING

The Marketing mix is a set of four decisions which needs to be taken before launching any new

product. These variables are also known as the 4 P’s of marketing. These four variables help the

firm in making strategic decisions necessary for the smooth running of any product /

organization.These variables are

1. Product

2. Price

3. Place

4. Promotions

Marketing mix is mainly of two types.

1) Product marketing mix –  Comprised of Product, price, place and promotions. This

marketing mix is mainly used in case of Tangible goods.

2) Service marketing mix –  The service marketing mix has three further variables included

which are people, physical evidence and process. They are discussed in detail in the article

on service marketing mix.

The term marketing mix was first coined by Neil H Borden back in 1964 in his article “The

concept of marketing mix”. Several strategic analysts over the years believe that the marketing

mix can make or break the firm. Having the right marketing mix at the start of the marketing

plan is absolutely essential. Over time the concept of marketing mix has provided a steady

platform for the launch of a new product or business.

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As mentioned before, the marketing mix is characterized by four different but equally important

variables. These variables are never constant and may be changed over time. However, a change

in one of the variables may cause a change in all the other variables as well.

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CHAPTER 2 : ELEMENTS OF SERVICE MARKETING MIX

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Product – The product in service marketing mix is intangible in nature. Like physical products

such as a soap or a detergent, service products cannot be measured. Tourism industry or the

education industry can be an excellent example. At the same time service products

are heterogenous, perishable and cannot beowned. The service product thus has to be designed

with care. Generally service blue printing is done to define the service product.

Place - Place in case of services determine where is the service product going to be located. The

best place to open up a petrol pump is on the highway or in the city. A place where there is

minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be

better placed in a business hub with a lot of companies nearby rather than being placed in a town

or rural area.

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Promotion – Promotions have become a critical factor in the service marketing mix. Services

are easy to be duplicated and hence it is generally the brand which sets a service apart from its

counterpart. You will find a lot of banks and telecom companies promoting themselves

rigorously. Why is that? It is because competition in this service sector is generally high and

promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves

above the rest by advertising or promotions.

Pricing – Pricing in case of services is rather more difficult than in case of products. If you were

a restaurant owner, you can price people only for the food you are serving. But then who will pay

for the nice ambience you have built up for your customers? Who will pay for the band you have

for music? Thus these elements have to be taken into consideration while costing. Generally

service pricing involves taking into consideration labor, material cost and overhead costs. By

adding a profit mark up you get your final service pricing. You can also read about pricing

strategies.

Here on we start towards the extended service marketing mix.

People – People is one of the elements of service marketing mix. People define a service. If you

have an IT company, your software engineers define you. If you have a restaurant, your chef and

service staff defines you. If you are into banking, employees in your branch and their behavior

towards customers defines you. In case of service marketing, people can make or break an

organization. Thus many companies nowadays are involved into specially getting their staff

trained in interpersonal skills and customer service with a focus towards customer satisfaction. In

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fact many companies have to undergo accreditation to show that their staff is better than the rest.

Definitely a USP in case of services.

Process – Service process is the way in which a service is delivered to the end customer. Lets

take the example of two very good companies – Mcdonalds and Fedex. Both the companies

thrive on their quick service and the reason they can do that is their confidence on their

processes. On top of it, the demand of these services is such that they have to deliver optimally

without a loss in quality. Thus the process of a service company in delivering its product is of

utmost importance. It is also a critical component in the service blueprint, wherein before

establishing the service, the company defines exactly what should be the process of the service

product reaching the end customer.

Physical Evidence – The last element in the service marketing mix is a very important element.

As said before, services are intangible in nature. However, to create a better customer experience

tangible elements are also delivered with the service. Take an example of a restaurant which has

only chairs and tables and good food, or a restaurant which has ambient lighting, nice music

along with good seating arrangement and this also serves good food. Which one will you prefer?

The one with the nice ambience. That’s physical evidence. Several times, physical evidence is

used as a differentiator in service marketing. Imagine a private hospital and a government

hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said

for a government hospital. Thus physical evidence acts as a differentiator.

This is the service marketing mix (7p) which is also known as the extended marketing mix.

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CHAPTER 3: INTRODUCTION OF ICICI BANK

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INTRODUCTION:

ICICI Bank is India’s second-largest bank with total assets of Rs. 3,663.74 billion (US$ 76

billion) at September 30, 2009 and profit after tax Rs. 19.18 billion (US$ 398.8 million) for the

half year ended September 30, 2009. The Bank has a network of 1,588 branches and about

4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking

products andfinancial services to corporate and retail customers through a variety

of delivery channels and through its specialised subsidiaries and affiliates in the areas

of INVESTMENT banking, life and non-life insurance, venture capital and asset management. The

Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United

States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International FINANCE Centre and representative offices in United Arab Emirates, China, South

Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany.

ICICI Bank’s equity shares are listed in India on Bombay STOCK EXCHANGE and the

National STOCK EXCHANGE of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).

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History:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,

and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal 1998, an equity offering in the form of

ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited

in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to

institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative

of the World Bank, the Government of India and representatives of Indian industry. The

principal objective was to create a development financial institution for providing medium-

term and long-term project FINANCING to Indian businesses. In the 1990s, ICICI transformed its

business from a development financial institution offering only project FINANCE to a

diversified financial services group offering a wide variety of products and services, both

directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

become the first Indian company and the first bank or financial institution from non-Japan Asia

to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging

competitive scenario in the Indian banking industry, and the move towards universal banking,

the managements of ICICI and ICICI Bank formed the view that the merger of ICICI

with ICICI Bank would be the optimal strategic alternative for both entities, and would create

the optimal legal structure for the ICICI group’s universal banking strategy. The merger would

enhance value for ICICI shareholders through the merged entity’s access to low-cost deposits,

greater opportunities for earning fee-based income and the ability to participate in the

payments system and provide transaction-banking services. The merger would enhance value

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 for ICICI Bankshareholders through a large capital base and scale of operations, seamless

access to ICICI’s strong corporate relationships built up over five decades, entry into new

business segments, higher market share in various business segments, particularly fee-based

services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the

Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its

wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI

Capital Services Limited, withICICI Bank. The merger was approved by shareholders of ICICI

and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002,

and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

Consequent to the merger, the ICICI group’s FINANCING and banking operations, both

wholesale and retail, have been integrated in a single entity.

Milestones

 October 25, 2010 – ICICI Bank and American Express Global Network Services Launch

ICICI American Express Prepaid Travel Card

 October 06, 2010 – The bank launches website in Hindi

 September 30, 2010 – ICICI Bank has launched its first retail branch in Singapore, setting the

stage for its next phase of growth

 August 13, 2010 – Amalgamation of Bank of Rajasthan Ltd. with ICICI Bank Ltd

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CHAPTER 4: 7 P’S OF ICICI BANK

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PRODUCT MIX:

1. DEPOSITS:

ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with

convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet

and Mobile Banking, ICICI Bank brings banking at your doorstep.

Savings Account: ICICI Bank offers a power packed Savings Account with a host of

convenient features and banking channels to transact through.

Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages

that are tailored to bring more convenience and enjoyment in your life.

Young Stars: It’s really important to help children learn the value of FINANCES  and money

management at an early age. Banking is a serious business, but we make banking a pleasure

and at the same time children learn how to manage their personal FINANCES .

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable

features of the Fixed Deposit from ICICI Bank.

Recurring Deposits: Through ICICI Bank Recurring Deposit you can INVEST  small

amounts of money every month that ends up with a large saving on maturity. So you enjoy

twin advantages- affordability and higher earnings.

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Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the

distance with your business. You can access your accounts at over 500 networked branches

across the country.

Bank @ Campus: Thanks to bank@campus, child can now surf the Net and access all the

details of his / her account at the click of a mouse! No need to visit the bank branch at all.

ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees.

As an organization, you can opt for our Salary Accounts to enable easy disbursements of

salaries and enjoy numerous other benefits too.

2. INVESTMENTS

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage

your FINANCES by providing various investment options such as:

 ICICI Bank Tax Saving Bonds

 Government of India Bonds

 INVESTMENT in Mutual Funds

 Initial Public Offers by Corporate

 INVESTMENT in “Pure Gold”

 FOREIGN EXCHANGE Services

 Senior Citizens Savings Scheme, 2004

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3. ANYWHERE BANKING

ICICI Bank is the second largest bank in the country. It services a customer base of more than

5 million customer accounts through a multi-channel access network. This includes more than

500 branches and extension counters, over 1800 ATMs, Call Centre and Internet Banking.

Thus, one can access the various services ICICI Bank has to offer at anytime, anywhere and

from anyplace.

4. LOAN

a) Home Loans

b)  Personal Loans

c) Car Loans

d) Two Wheeler Loans

e) Commercial Vehicle Loans

f)  Loans against Securities

g)  Farm Equipment Loans

h)  Construction Equipment Loans

i)  Office Equipment Loans

j)  Medical Equipment Loans

5. CARDS

a) Credit Card

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b) Debit cum ATM Card

c) Travel Card

d) VBV (VERIFY BY VISA): Verified by Visa (VBV) is a new service from VISA that lets us

shop securely online with our existing Visa Credit card. Usable only on Verified by Visa sites,

this service through a simple checkout process, confirms our identity when we make purchases.

e) Master Card Securecode: MasterCard® SecureCode™ is an easy to use, secured online

payment service from ICICI Bank that lets you shop securely online with your existing ICICI

Bank MasterCard® Credit Card. This service through a simple checkout process, confirms your

identity when you make purchases on the Internet.

f) American express card:

With ICICI Bank American Express Credit Card just

shop online as you normally would and then enter your

correct card information and billing address. We would

validate the billing address that we provide with our

records and authenticate our transaction. It’s that simple

and helps in safeguarding our online transaction.If we are unsure what is our billing address on

record with us, simply call our 24-hour Customer Care numbers given on the back of the card for

a quick check.

6. DEMAT SERVICES

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ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account

holders. In their continuous endeavor to offer best of the class services to our customers we

offer the following features:

 Digitally signed transaction statement by e-mail.

 Corporate benefit tracking.

 e-Instruction facility – facility to transfer securities 24 hours a day, 7 days a week through

Internet  Interactive Voice Response (IVR) at a lower cost.

 Dedicated specially trained customer care executives at their call centre, to handle all

queries.

7. MOBILE BANKING

With ICICI Bank, banking is no longer what it used to be. ICICI

Bank offers Mobile Banking facility to all its Bank, Credit Card and

Demat customers. ICICI Bank Mobile Banking enables you to bank

while being on the move.

8. NRI SERVICES

ONLINE MONEY TRANSFER facility available to NRIs worldwide through

www.money2India.com at the click of a button!

Benefits:

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  FREE Money Transfers Into Accounts With Over 30 Banks In India

 Demand Drafts Issued And Payable At Over 1250 Locations In India

 ONLINE Tracking Of The Status Of Your Funds

 SUPERIOR EXCHANGE RATES

 OFFLINE MONEY TRANSFER Facility Is Also Available Across Geographies Through

 Local Branches And In Association With Partner Banks/ Exchange Houses.

PRICING MIX:

The pricing decisions or the decisions related to interest and fee or commission charged by

banks are found instrumental in motivating or influencing the target market.

The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the

RBI and other charges are controlled by IBA.

The pricing policy of a bank is considered important for raising the number of customers’

vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship

with the fees charged. Thus while deciding the price mix customer services rank the top

position.

The banking organizations are required to frame two- fold strategies. First, the strategy is

concerned with interest and fee charged and the second strategy is related to the interest paid.

Since both the strategies throw a vice- versa impact, it is important that banks attempt to

establish a correlation between two. It is essential that both the buyers as well as the sellers

have feeling of winning.

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Another element to consider in the pricing of earning assets is the risk of loss. Most notably,

this is relevant in loan pricing.  Many banks assign a risk weighting to individual loans over a

certain size or based on loan type and assign a credit risk charge based on those ratings.

Customer relationships are difficult to assign a value to in the pricing process.  Customers

will generally press for some price concessions in consideration of other relationships they

have with the bank.

Asset and liability mix also impacts pricing results. Generally speaking, banks operating with

higher loan-to-asset ratios are able to afford to pay more for deposits.  Likewise, banks can

afford to be more competitive on certain deposit products if they have fewer maturities in a

particular timeframe or less total outstanding balances in a product line.

PLACE

This component of marketing mix is related to the offering of services. The services are sold

through the branches.

The 2 important decision making areas are: making available the promised services to the

ultimate users and selecting a suitable place for bank branches.

The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

LOCATION OF BRANCH:

Shivam Shopping Centre, S.V.Road,

Opp. New Era Cinema, Malad (W), Mumbai.

MUMBAI , 400064.

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Why they select this place as branch?

 The selection of a suitable place for the establishment of a branch is significant with the

view point of making place accessible.

 The safety and security provisions

 Convenient to both the parties, such as the users and the bankers

 Infrastructure facility

 Near to station and located on s. v. road well crowded area.

 Market coverage

PROMOTION MIX

 Advertising: Television, radio, movies, theatres

 Print media: hoardings, newspaper, magazines

 Publicity: road shows, campus visits, sandwich man, Sponsorship

 Sales promotion: gifts, discount and commission, incentives,etc.

 Personal selling: Cross-sale (selling at competitors place),personalized service.

 Telemarketing: ICICI one source Call center (mind space)

PEOPLE:

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 organisation to its customers.

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In a bank organization, employees are essentially the contact personnel with customer.

Therefore, an employee plays an important role in the marketing operations of a service

organisation.

To realize its potential in bank marketing, ICICI 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 people.

If the people don’t meet customers’ expectations, then neither does the service.

Therefore, INVESTING  in people quality in service business means investing in product

quality.

PROCESS:

Flow of activities:  All the major activities of ICICI banks follow RBI guidelines.  There

has to be adherence to certain rules and principles in the banking operations.  The activities

have been segregated into various departments accordingly.

Standardization: ICICI 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.
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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 time taken.

Simplicity: In ICICI 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 in national boards in national and regional language help the

customers further.

Customer 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.

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PHYSICAL EVIDENCE:

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 (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, other tangibles,

employee’s 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.

Financial reports: The Company’s financial reports are issued to the customers to

emphasis or credibility.

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks,

chequebooks, etc reduce the inherent intangibility of services.

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Punch lines: Punch lines or the corporate statement depict the philosophy and attitude of the

bank.  Banks have influential punch lines to attract the customers.

Employee’s dress code: ICICI bank follows a dress code for their internal customers. 

This helps the customers to feel the ease and comfort.

Source: http://www.icicibank.com/aboutus/history.html

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CHAPTER 4: SWOT ANALYSIS OF ICICI BANK

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SWOT ANALYSIS OF ICICI BANK

Strengths of ICICI Bank

 ICICI is the second largest bank in terms of total assets and market share Total assets of

ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs. 51.51 billion

and located in 19 countries

 One of the major strength of ICICI bank according to financial analysts is its strong and

transparent balance sheet ICICI bank has first mover advantage in many of the banking

and financial services.

 ICICI bank is the first bank in India to introduce complete mobile banking solutions and

jewelry card

 The bank has PAN India presence of around 2,567 branches and 8003 ATM’s

 ICICI bank is the first bank in India to attach life style benefits to banking services for

exclusive purchases and tie-ups with best brands in the industry such as Nakshatra, Asmi,

D’damas etc

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  ICICI bank has the longest working hours and additional services offering at ATM’s

which attracts customers

 Marketing and advertising strategies of ICICI have good reach compared to other banks

in India

Weaknesses of ICICI Bank

 Customer support of ICICI section is not performing well in terms of resolving

complaints

 There are lot of consumer complaints filed against ICICI

 The ICICI bank has the most stringent policies in terms of recovering the debts and loans,

and credit payments. They employ third party agency to handle recovery management

 There are also complaints of customer assault and abuse while recovering and the credit

payment reminders are sent even before the deadlines which annoys the customers

 The bank service charges are comparatively higher

 The employees of ICICI are bank in maximum stress because of the aggressive policies

of the management to win ahead in the race. This may result in less productivity in future

years

Opportunities of ICICI Bank

 Banking sector is expected to grow at a rate of 17% in the next three years

 The concept of saving in banks and investing in financial products is increasing in rural

areas as more than 62% percentage of India’s population is still in rural areas.

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  As per 2010 data in TOI, the total number b-schools in India are more than 1500. This

can ensure regular supply of trained human power in financial products and banking

services

 Within next four years ICICI bank is planning to open 1500 new branches

 Small and non performing banks can be acquired by ICICI because of its financial

strength

 ICICI bank is expected to have 20% credit growth in the coming years.

 ICICI bank has the minimum amount of nonperforming assets

Threats of ICICI Bank

 RBI allowed foreign banks to invest up to 74% in Indian banking

 Government sector banks are in urge of modernizing the capacities to ensure the

customers switching to new age banks are minimized

 HDFC is the major competitor for ICICI, and other upcoming banks like AXIS, HSBC

impose a major threat

 In rural areas the micro financing groups hold a major share

 Though customer acquisition is high on one side, the unsatisfied customers are increasing

and make them to switch to other banks ss

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 Awards – 2015

 ICICI Bank won an award in the BFSI Leadership Summit & Awards in the 'Best Phone

Banking for End-users’ category.

 ICICI Bank won in six categories and was the first runner-up in one category among Private

Sector Banks at IBA Banking Technology Awards, 2015. The bank was declared winner in the

six categories of Best Technology Bank of the Year, Best use of Data, Best Risk Management

Initiatives, Best use of Technology in Training, Human Resources and e-Learning initiatives,

Best Financial Inclusion Initiative and Best use of Digital and Channels Technology. ICICI Bank

was the first runner-up in Best use of Technology to Enhance Customer Experience.

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 BIBLOGRAPHY:

 http://www.icicibank.com/aboutus/history.html

 www.icicibank.com/privilege-banking/personal/products-services.page

 connection.ebscohost.com/c/articles/.../icici-bank-limited-swot-analysis

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