MARKETING IN BANKING &
INSURANCE
Presented by,
Pooja Jaiswal :-08
Fauzia Shaikh :-16
Heena Barot :-08
WHAT IS MARKETING ?
According to Philips Kotler, “Marketing is a
human activity directed as satisfying needs &
wants through exchange process.”
DEFINITION OF SERVICES
MARKETING
According to American Marketing Association
“Services are the activities, benefits or
satisfaction which are offered for sale or are
provided in connection with the sale of
goods.”
CHARACTERISTICS OF SERVICES
MARKETING
INTANGIBILITY
PERISHABILITY
INSEPARABILITY
HETEROGENEITY
OWNERSHIP
SIMULTANEITY
QUALITY MEASUREMENT
NATURE OF DEMAND
INTANGIBILITY
Services are intangible we cannot touch
them.
They are not physical objects
(e.g. Mc Donald's)
PERISHABILITY
Services cannot be stored.
Perishable like labour.
High degree of Persishablity.
E.g. : the services are offered by employees
at the bank perish when one leaves the
premises of the bank.
INSEPARABILITY
Services are created and supplied
simultaneously i.e. in inseparable
E.g. in the field of teaching, if the professor
is indisposed, he can not be replaces with a
clerk to provide the same services as a
professor.
HETEROGENEITY
The quality of service cannot be
standardized.
Price paid for the service is either too high or
too low.
E.g. In entertainment industry and sports.
OWNERSHIP
Transfer of Ownership once the goods are
sold. But in case of services, we do not have
transfer of ownership.
The users have only an access to services &
cannot own the services.
E.g. A consumer can use personal care
services or medical services or can use hotel
however ownership remains with the
providers.
SIMULTANEITY
Services cannot move through channels of
distribution and cannot be delivered to the
potential customers and users.
Either users are brought to the services or
providers go the users.
Limitation due to geographical area.
E.g. Aeroplane cannot be brought to the
consumer
QUALITY MEASUREMENT
Services cannot be measured in terms of
quantity.
It can be measured in terms of service level.
E.g. We can quantify the food served in a
hotel but the way the waiter serves the
customer or the behavior of staff cannot be
ignored while rating the total process.
NATURE OF DEMAND
Services are fluctuating in nature.
During the peak tourist season there is an
abnormal increase in demand of services.
E.g. Tourists go to hill stations during
summer season so the use of public transport
utilities is increased.
7P’S OF MARKETING IN
BANKING & INSURANCE &
FINANCIAL SERVICES
7P’S MARKETING
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PHYSICAL EYIDENCE
PROCESS
PRODUCT
FIXED DEPOSTES LIFE INSURANCE
(HDFC BANK) (LIC)
PRICE
Fixed DEPOSIT LIC LIFE INSURANCE OF Sum
FOR 1 YEAR Insured Rs 1,00,000
& RS 50,000
PLACE
ANY NEAREST HDFC BANK •ANY NEAREST LIC BRANCH
BRANCH.
PROMOTIONS
Bank letters send to the LIC letters send to the customer
customer for fixed deposits for other new product
Tie up with corporate Tie up with corporate
companies companies for more
promotions
Through commercial advertising
Through commercial advertising
Hoardings
News paper
Browser
PEOPLE
The employees at the bank The LIC agent or any employees
at the LIC branch
PHYSICAL EVIDENCE
Fixed deposit letters delivered LIC letters delivered to the
to the customer on mailing customer on mailing address .
address .
LIC agent should inform to the
Bank employee helps the customer , please pay the
customer for paper work. premium of polices will get
lapse.
Websites for total
information's.
PROCESS
STANDARDIZATION : Same king of STANDARDIZATION : Same king
regulations that the banks are of regulations that the
subject to . insurances are subject to .
CUSTOMIZATION : Special counters CUSTOMIXATION : Special
to deal with the customer. benefit for the customer for
tax reductions
SIMPLICTIY : Employees help the
customer less time , as they are SIMPLICTIY : Helps the
separate kiosks for all information. customer less time , as they
are separate kiosks for all
CUSTOMER INVOLVEMENT : For the information.
fixed deposit customer should know
what is the annual interest & Terms CUSTOMER INVOLVEMENT :
& Condition for the LIC customer should
know what is the monthly or
yearly premium & other Terms
& Condition.
CONCLUSION
Services play a very important role in
Marketing.
Products are same only Service differs.
The major part of marketing after
considering the environmental variables is
assembling and managing the market
variables.
