You are on page 1of 45

Definition: A system of trading money

 provides a safe place to save excess cash,
known as deposits.
 supplies liquidity to the economy by loaning
this money out to help businesses grow and
to allow consumers to purchase consumer
products, homes, cars etc.


 Institutions which deals in money and credit.
 An intermediary, which handles other
people‟s money both for their advantage and
to its own profits.
 A financial institution that links the flow of
funds from savers to the users.
 Plays an important role in the economy of any
country as they hold the saving of the public.

• Central Bank: The Reserve Bank of India is the
central Bank that is fully owned by the
Government

• Public Sector Banks: State Bank Group,
Regional rural banks

• Private Sector Banks: Foreign Banks, Scheduled
and Non- Scheduled Banks

• Co-operative Sector: State Co-operative Banks,
Central Co-operative Banks, Primary Agriculture
Credit Societies

• Development Banks/Financial Institutions: IDBI,
ICICI, NABARD


 Issue of banknotes (promissory notes
issued by a banker and payable to bearer
on demand)
 Processing of payments by way of
telegraphic transfer, EFTPOS, internet
banking or other means
 Issuing bank drafts and bank cheques
 Accepting money on term deposit
 Lending money by way of overdraft,
installment loan or otherwise
 Providing documentary and standby letters of
credit (trade finance), guarantees, performance
bonds, securities underwriting commitments and
other forms of off-balance sheet exposures

 Safekeeping of documents and other items in safe
deposit boxes

 Currency exchange

 Acting as a 'financial supermarket' for the sale,
distribution or brokerage, with or without advice,
of insurance, unit trusts and similar financial
products
 Issue of money, in the form of banknotes and
current accounts subject to cheque or
payment at the customer's order.
 Netting and settlement of payments.
 Credit intermediation
 Credit quality improvement
 Maturity transformation
“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.”

 The existence of the bank has little value
without the existence of the customer.
 Aim is not only to create and win more and
more customer but also to retain them
through effective customer service.
 Appropriate promise to a customer through a
range of services (products) and also to
ensure effective delivery through satisfaction
is important.
 Identifying the most profitable markets now
and in future;
 Assessing the present and future needs of
customers;
 Setting business development goals and
making plans to meet them
 Managing the various services and
promoting them to achieve the plans
 Adapting to a changing environment in the
market place.

 Designed after taking into account the strengths
and weaknesses of the organization.
 bank with clientele from various segments could
think of “market penetration” by offering the
existing range of services to existing customers.
 Bank which are not facing acute competition
could think of “Market Development” by offering
the existing services to new customers.
 design new product range for their customers of
various segments
• How the seller‟s determines which
buyer‟s characteristics produce the best
partitioning of the particular market?


•The seller does not want to treat all
customers alike nor does he want to
treat them all differently
 Banks deal with individuals, group of persons
and corporates
 More or less homogenous groups in terms of
their needs and expectations.
 Market segments, targeting one or more
segments, developing products and
marketing programs tailor-made for these
segments.
 Agricultural Sector
1. Marginal
2. 2 to 5 acres
3. 5 to 10 acres
4. 10 acres and above

 Industrial Sector
1. Tiny
2. Co-operative
3. Small-sized
4. Large- sized
 Services Sector
 Household Sector
1. Marginal
2. Low Income
3. Middle Income
4. High Income

 Market Targeting in which each segment‟s
attractiveness is measured and a target
segment is chosen based on its
attractiveness.
 Positioning which is the act of establishing a
viable competitive position of the firm and its
offer in the target segment chosen.
Traditional
external
marketing
Internal
marketing
Interactive
marketing
 consists of usual four „Ps‟ of Product, Price,
Place and Promotion of marketing mix
 Product: The products offered are the
services which includes various types of bank
accounts, different types of loans, investment
services, Credit cards, Demat accounts,
online banking, mobile banking and many
more.

includes interest , fees or commission charged
by the bank. Also the interest paid by the bank.
Typical for banking sector since RBI regulates
rates of interest, Organizations are supposed to
sub-serve weaker sections and the rural regions
of the country.
 Buyers look for satisfaction which differs from
person to person.
 Keeping in view the level of satisfaction of a
particular segment, the banks have to frame
the pricing strategies.
 The interest charged and the interest paid
should have a co-relation between them.
Develop
marketing
strategy
Make
marketing
mix
decisions
Estimate the
demand
curve.
Calculate
cost
 It refers to the establishment and functioning
of a network of branches and other offices
through which banking services are delivered.
 Objective is to get the right product ,at right
places at right time at the least cost.
 Extensive branch network- access to large
section of people
 Proximity may play a determinant role in
selecting the bank.





 Banks are coming up with extension counters,
specialized branches, mobile branches, banks
acquisition and amalgamation so as to have
sufficient point of contacts with the customer.
 With the advent of technology other point of
contacts have come up. Such as:
 ATM
 Telephone banking
 Online banking
 Mobile banking
 Video banking etc.


 Advertising

 Publicity

 Sales Promotion

 Personal Selling

 Push and Pull Strategies
 It involves the people(5
th
P) of the bank i.e.
the employees.
 Employees should also be treated as internal
customers, and sort of marketing mix should
be followed.
 Quality Human resource can be a point of
differentiation




 The quality of service provided during the
buyer-employee interaction.
 Efforts for previous strategies will turn futile
if the interaction does not takes place
satisfactorily.
It involves :
 Process (6
th
P)
 Physical evidence (7
th
P)




 Refers to the systems used to assist
the organization in delivering the
service.
 Aids to the promotion of customer
satisfaction
 It involves:
speeding delivery of services
reducing the paper work
standardization of procedures
customization as per individual
demand
simplicity etc.




 It includes signage, reports, punch lines, other
tangibles, employee‟s dress code etc.
 The company‟s financial reports are issued to the
customers to emphasis or credibility.
 Signage: Each and every bank has its logo by which a
person can identify the company. It creates
visualization and corporate identity for the banks.
 Tangibles: banks give pens, writing pads to the
customers.
 Punch lines: Depicts the philosophy and attitude of
the bank. Banks have influential punch lines to attract
the customers.

 Referral services

 Direct mailing

 Cold calling

 Offering items having your brand identity

 Using the media

 Getting celebrities to endorse the product or service.

 Sponsoring events

 Using permission-based Marketing
 Recommendation of Talwar‟s
committee,1975:
 Establishment of customer service
committee/staff committee in the every
ranch.
 Customer meets to be held at the branches
at least once in a half year.
 15th of every month (next day if 15th is a
holiday) to be observed as customer‟s day
at branches and administrative offices.
 Provision of complaint-cum-suggestion
box in every branch.




 Provision of „May I help you‟ counter in
branches.
 Immediate credit of cheques up to Rs.2,500
which has since been increased to Rs.15,000.
 Payment of penal interest in case of delay of
collection of cheques.
 In the year 1995 „Banking Ombudsman‟ was
established by RBI with objective of resolving
customer grievances in a quick and
inexpensive manner.

 Follows 80-20 Parato principal
 Bankers need to understand the rural
psychology
 Employing local literate youth for confidence
building
 Banker must be aware of agriculture aspects,
cultural and communal aspects, institutional
facilities etc.
 Process of change should be known to him
 Status of various development plans should
be known
R:Retail Business for Rural Community As
(Consumer & Producer)
U: Urban facilities, Investment, Infrastructure
R: Animal Husbandry & Allied Activities
A: Agri Production(Field Crops, Plantation)
L: Linkages & Synergy
 Horticulture, Plantation, Vegetable growing,
Floriculture, aromatic and medicinal plants,
Bio-diesel plants etc. for high investment
Opportunities
 Post Harvest and Food Processing
 Seed Multiplication & Processing
 Dairy Farming, Sericulture, Aqua-Culture &
Others.
 Irrigation Projects & Wasteland
Developments.
 Rural Tourism & Other emerging areas.




 Industrial Credit and Investment corporation
of India bank - largest private sector bank in
market capitalization
 Second largest overall in terms of assets.
 largest issuer of credit cards in India

 Product :
Saving account: offers a power packed
Savings Account with a host of convenient
features and banking channels to transact
through.
Senior citizen services: convenience with
benefits
Fixed Deposits : Safety, Flexibility, Liquidity
and Returns




 Recurring Deposits: Affordability and higher
earnings.
 Roaming Current: access your accounts at over 500
networked branches across the country.
 Loans: Home Loans. Personal Loans. Car Loans,
two Wheeler Loans, Commercial Vehicle Loans.
Loans against Securities, educational loans etc
 Investments: ICICI Bank Tax Saving ,Foreign
Exchange Services, Senior Citizens Savings Scheme,
2004.
 Cards: Credit card, ATM card, travelers card
 Demat services
 Online money transfer
 Mobile banking



 Pricing
1. Pricing Decisions related to interest, fee
or commission.

2. RBI and IBA

3. Raising Number of Customers

4. 2 Fold Strategies
 Place
1. Services are sold through branches

2. Making Promised Services available to the
ultimate users.

3. Branches OF ICICI:
1900 in India and 33 in Mumbai.
 Promotion
1. Advertising - Television, radio, movies, theatres
2. Print Media- Hoardings, newspaper, magazines
3. Publicity- Road shows, campus visits, sandwich
man, Sponsorship
4. Sales Promotion- Gifts, discount and commission,
incentives, etc.
5. Personal Selling- Cross-sale (selling at
competitors place), personalized service
6. Telemarketing- ICICI one source Call center
(mind space)
 Process
1. Standardization- ICICI bank has got standardized
procedures got typical transactions

2. Customization- Specialty counters at each branch
to deal with customers of a particular scheme

3. Simplicity- Separate counters exist with clear
indication

4. Customer Involvement- Money matters and
signature


 Physical Evidence
1. Signage

2. Financial Reports- The Company‟s financial reports
are issued to the customers to emphasis or credibility

3. Tangibles- Pens, Writing Pads to the internal
customers. Passbook and Cheque books to the
customers.

4. Punch lines- “Hum Hai Naa”

5. Employee‟s Dress Code- ICICI bank follows a dress
code for their internal customers

 People
1. All people directly or indirectly involved in
the consumption of banking services.

2. Workers, Employees, Management and
other Consumers

3. Employees of a Bank represents the
organization to its customers.

4. Internal Marketing




THANK YOU
MADE BY:

HIMANSHU SHARMA
11
th
A