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What is

 Basic

Definition: A system of trading
money which:
 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.

What are banks

 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
 Plays an important role in the
economy of any country as they

Types of banks in

• Central Bank: The Reserve Bank of India is

the central Bank that is fully owned by the

• 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

Commercial Role of
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

Commercial Role of

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

Economic Role of
 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

What is 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.”

Why bank marketing
 The

existence of the bank has little
value without the existence of the
 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

Concept of bank
 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.

Marketing strategies
 Designed

after taking into account the
strengths and weaknesses of the
 bank with clientele from various
segments could think of “market
penetration” by offering the existing
range of services to existing
 Bank which are not facing acute
competition could think of “Market
Development” by offering the
existing services to new customers.

How the seller’s determines which
buyer’s characteristics produce the
best partitioning of the particular

• 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
 Market segments, targeting one or
more segments, developing
products and marketing programs
tailor-made for these segments.

Criterion for Market
Segmentation in India
Agricultural Sector
2.2 to 5 acres
3.5 to 10 acres
4.10 acres and above

Industrial Sector
4.Large- sized

Criterion for Market
Segmentation in India
 Services Sector
 Household Sector

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.

Types of Marketing

Traditional external
 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.


 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.

General steps for pricing

 It

refers to the establishment and
functioning of a network of
branches and other offices through
which banking services are
 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

 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
 With the advent of technology other
point of contacts have come up. Such
 Telephone banking
 Online banking
 Mobile banking
 Video banking etc.




Sales Promotion

Personal Selling

Push and Pull Strategies

Internal marketing
involves the people(5th 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
 It

Interactive marketing
 The

quality of service provided
during the buyer-employee
 Efforts for previous strategies will
turn futile if the interaction does
not takes place satisfactorily.

It involves :
 Process (6th P)
 Physical evidence (7th P)

 Refers

to the systems used to assist
the organization in delivering the
 Aids to the promotion of customer
 It involves:

speeding delivery of services

reducing the paper work

standardization of procedures

customization as per individual

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
Punch lines: Depicts the philosophy and
attitude of the bank. Banks have influential
punch lines to attract the customers.

Current Marketing

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

Customer satisfaction
Recommendation of Talwar’s
 Establishment of customer service
committee/staff committee in the every
 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
 Provision of complaint-cum-suggestion

 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.

Rural bank marketing
 Follows 80-20 Parato principal
 Bankers need to understand the rural

 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
 Status of various development plans
should be known

“RURAL” Strategy
R:Retail Business for Rural Community

(Consumer &
U: Urban facilities, Investment,
R: Animal Husbandry & Allied
A: Agri Production(Field Crops,
L: Linkages & Synergy

New Avenues for Rural
Business: Special Focus
 Horticulture,

Plantation, Vegetable
growing, Floriculture, aromatic and
medicinal plants, Bio-diesel plants
etc. for high investment
 Post Harvest and Food Processing
 Seed Multiplication & Processing
 Dairy Farming, Sericulture, AquaCulture & Others.
 Irrigation Projects & Wasteland
 Rural Tourism & Other emerging

ICICI Bank – A Case

 Industrial

Credit and Investment
corporation of India bank largest private sector bank in
market capitalization
 Second largest overall in terms of
 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

Roaming Current: access your accounts at

over 500 networked branches across the
 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

Demat services
Online money transfer

7 Ps of ICICI Bank
 Pricing

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

2.RBI and IBA

3.Raising Number of Customers

4. 2 Fold Strategies

7 Ps of ICICI Bank
 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.

7 Ps of ICICI Bank
 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

7 Ps of ICICI Bank


1.Standardization- ICICI bank has got
standardized procedures got typical

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

3.Simplicity- Separate counters exist with clear


Customer Involvement- Money matters and

7 Ps of ICICI Bank
 Physical


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

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

4.Punch lines- “Hum Hai Naa”


Employee’s Dress Code- ICICI bank follows a dress
code for their internal customers

7 Ps of ICICI Bank
 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


 1 – 8 rajnish
 9 – 17 salil
 18- 25 pradeep
 26 – 32 rishabh
 33 -35 sachin
 36 – 46 rishika