PRINCIPLES & PRACTICES OF BANKING
FOR JAIIB Module-D Marketing of Banking Services
Not necessarily a geographical area, a place where goods can be sold or bought.
Area wise Local , Regional , National or global market market Product wise Transacti on wise Volume wise Commodity, share, Bullion, real estate, retail loan markets Cash/spot, future market Retail Or Whole sale market
sale & distribution A Business Philosophy-customer focused-profit oriented.need analysis.
.MARKETING Marketing is the process of determining consumer demand for a product or service. product. motivating its sale and distributing it into ultimate consumption at a profit A management function.
. product dev. consumptions & satisfaction It is product focused It is customer focused It is seller oriented It is buyer/ customer oriented
It encases profitable It is buyer need oriented opportunity It aims earn profit It aim at earning profit by by maximizing sales max.Selling & Marketing
selling is an operational activity It is a concept includes need analysis.
1. 5. 6. distribution and consumption re simultaneous process An activity Core value produced in buyer-seller interaction Customers participate in production Cannot be kept in stock No transfer of ownership
Physical Goods Tangible Homogeneous Product and distribution separated from consumption A thing Core value produced in factory Customers do not participate in the production process Can be kept in stock Transfer of ownership
Services Intangible Heterogeneous Production.
7. 3. 2.No.
Marketing mix is a set of marketing tools used to pursue marketing objective. quality. brand etc ± Price:. sales force. transport ± Customer need ± Cost to customer ± Convenience ± communication
. payment period ± Promotion:.variety.list price.channels. inventory. coverage.advertising. These are 4Ps& 4Cs
± Product:.DSA ± Place:. PR. discounts. locations. features.
status & success Self-actualization.food.Consumer behavior
Physiological needs. love Esteem need. sleep Safety needs-protection & economic security Social needs-friendship.self fulfillment
. drink. affection.recognition.
low liabilities low cost banking.Mortgage loan. OD high needs Credit card. auto loan. durable loans High liquidity Investment. FD. citizen
.Financial position & Banking Needs
Young Bachelor Half Nest (married & young kids Full Nest (married & adult kids
High income. flexi High savings deposit Social security & reverse mortgage loan
Empty nest Reduced income Sr. Low liquidity.Credit card.
use or consumption that might satisfy a want or need PRODUCT PERSONALITY THE CORE features THE ASSOCIATED FEATURES THE BRAND NAME & LOGO THE PACKAGE AND LABEL
. acquisition.PRODUCT A product is anything that can be offered to a market for attention.
PRODUCT LIFE CYCLE Introduction. Product Mix. product sub category. Growth. Packaging and New product development. Decline The product Life cycle operates at three levels product level.
. Maturity. brand level.PRODUCT PLANNING The process of product planning consists Product Line. Branding.
Growth Maturity Decline
.50 45 40 35 30 25 20 15 10 5 0 Intro.
forward/backward Conglomerate Diversification-Additional
.NEW PRODUCT DEVELOPMENT Idea Screening Concept Testing Product Development Test Marketing Commercial Launch DIVERSIFICATION Concentric Diversification Horizontal Diversification.
BRANDING Line Extension Brand Extension Multi brands New Brands PACKAGING Primary Package Secondary Package Shipping Package LABELLING Identify the product or brand Describing information Promoting the product through 'attractive graphics'
PRICING Price is the amount charged for product or services or sum value of all the values that consumers exchange for the benefits or having or using the product or service Different forms . tution fees Dynamic Pricing .Goods bought. hire charges.Varying prices Flexibility
OBJECTIVE OF PRICING Profit Survival Market Share Cash Flow Status Quo Product Quality Communicating Image Short term/Long term Consideration for setting PRICING Cost Based Value Based Competition Based
Mark up Pricing :Std.
: concession for bulk purchase
. mark + Total cost Absorption cost Pricing : Margin+ Total Cost Target Return Pricing : Return Rate + cost Marginal cost Pricing : Full variable cost + varying Fixed c Perceived Value Pricing : Customer satisfaction Value Pricing :to make feel High value at low price Going Rate Pricing : Market price Auction Type Pricing : English Auctions :One seller many buyer Dutch Auctions :Many seller one buyer or vice versa Sealed Bid Auctions: one bid by one seller without knowing others¶ price Group Pricing.
Functions of distribution channels Market information Promotion Contact Matching Negotiation Product information Physical distribution Financing
Characteristics banking products Intangibility Inseparability Variability Perishability Client relationship Branches & Other channels Tele-banking ATMs Computerization Plastic Cards Virtual branches and automated video banking
Intermediaries in banking services DSA Automobile Dealers Merchant establishments Physical distribution Transportation Warehousing Inventory Tasks of physical distribution Forecasting Order processing Inventory management Storage Protective packaging Transportation
Promotion Role of promotion Persuasion Inform Reminding Reinforcing
Blended Mix of Promotion Tools
Advertising Personal selling
Promotion mix strategies Push strategy Pull strategy Factors influencing promotion mix Types of product/market Buyer¶s readiness stage PLC stage Promotion mix integration