MARKETING TO

BANKING
MARKETING CONCEPT

A situation where buyers and sellers of a

commodity interact.
Coming together of buyers and sellers of
the same or similar commodities

TYPES OF MARKET

Geographical Area
Product
Nature of Transaction
Volume of Transaction
MARKETING

Marketing is the process of determining

consumer demand for a product or service,
motivating its sale and distributing it into
ultimate consumption at a profit

A management function
A Business Philosophy
EVOLUTION OF MODERN MARKETING

Industrial revolution
Digital revolution
Barter System
Customer and market driven
Wants of customers
CRM
Customer Satisfaction
Nothing is worthwhile unless it
touches the customer
MARKETING VS SELLING

MARKETING MANAGEMENT
A process of planning and executing the
conception, pricing , promotion and distribution of
goods and services and ides to create
exchanges with target groups that satisfy
customer and organizational objectives.

FUNCTIONS OF MARKETING MANAGEMENT

Analysis
Planning
Implementation
Control
IMPORTANCE OF MARKETING FOR
INDIAN BANKS

"The relevance of aggressive marketing

in banks has come to the fore as never
before" - M N Goiporia.

CHARACTERISTICS OF SERVICES
Intangibility
Inseparability
Heterogeneity
Perishability
SERVICE

A service is any act or performance that

one party can offer to another that is
essentially intangible and does not result
in the ownership of anything. It’s
production may or may not be tied to
physical product.
S.No. Physical Goods Services
1. Tangible Intangible
2. Homogeneous Heterogeneous
3. Product and distribution Production, distribution
separated from and consumption re
consumption simultaneous process
4. A thing A activity
5. Core value produced in Core value produced in
factory buyer-seller interaction
6. Customers do not Customers participate in
participate in the production
production process
7. Can be kept in stock Cannot be kept in stock
8. Transfer of ownership No transfer of ownership
MAREKTING OF FINANCIAL SERVICES

Intangibility, inseparability and heterogeneity are

manifested at both strategic and tactible levels in
services marketing.
Marketing strategy provides the organisation with
a sustainable competitive advantage in the
markets it operates.
Organization should understand consumer needs
and identifies how those consumers should be
grouped into different market segments.
Product attributes, pricing decisions, methods of
distribution and communication should all seek to
reflect the chosen position.
BANK MARKETING
Provides services
Aimed to satisfy customer’s needs and
wants
Needs and wants may be non financial in
nature
Competitive element, efficiency and
effectiveness
Organizational objectives are still the
driving force
Commercial objective to make profit
Social Objectives
Essentials for a Banks Success
Cannot exist without customer
Create, win and keep customers
Organizational design should be
oriented to the customer
Deliver total satisfaction to the
customer
Customer satisfaction is affected by
the performance of all the personnel of
the bank.
4 Features of Modern Marketing

Marketing occupied an important place in all

stages of economic life, even from barter
system. But today, marketing is a complicated
stage. Modem marketing possesses special
characteristics. Modem marketing covers all
business activities in order to ascertain the
demand, product planning, distribution and
facilitating the entire marketing process. The
modem marketing emphasizes the need for
integrated and well-coordinated marketing
programme. It aims to attract the customers.
4 Features of Modern Marketing

1. Consumer Orientation:
Modem marketing recognizes consumer’s
supremacy in marketing. The managerial attention
was focused on the market and the consumer.
The management becomes consumer or
marketing-oriented. Consumer-orientation or
market-orientation may be defined as the
“managerial state of mind concerned with
consumer satisfaction and profit, and not sales
volume alone.” Consumer becomes the pivot of all
business decisions.
4 Features of Modern Marketing

2. Modern Marketing Begins with the Customers:

The producers of the last century had little care for the
consumers. Now, the production is carried on in large
quantity. The manufacturer produces more than what the
society needs. The marketer aims to develop the market;
the market becomes seller’s market. Similar marketers
appear in the market and there arises competition.
The consumer, who comes in the last stage, accepts the
goods; there is no alternative. But the situation has
changed. Market has developed from national to
international. Competition is the order of the day.
Businessmen have started realizing it. Earning profit is
possible only through the consumer’s satisfaction.
4 Features of Modern Marketing

3. Modern Marketing Begins Before Production:

In early periods, there were less competitions and as such
sales were easily made. But now this stage has changed.
The consumer looks for the usefulness and acceptability of
a product. As such it has become essential to find out the
needs and desires of consumers, through marketing
research. The information from the market or the
consumer will decide the future of the product. Thus,
product planning and development is undertaken before
the actual production takes place. The pricing, distribution
etc. are secondary. These enable a marketer to face the
customer, who is the king.
4 Features of Modern Marketing

4. Modern Marketing is a Guiding Element:

At present competition is more acute, because many
entrepreneurs produce similar commodities en masse.
Marketing has also become a still competition. The ability
of the marketer depends on the ability of finding a
consumer and to satisfy him. Businessman has to
understand the economic development of a country and
must aim to raise the standard of living. People may
choose one among the products. They decide what
product to purchase and what product not to purchase.
Reasons may be the advantages; a purchaser looks for or
may not be found in the product.
Service Marketing Role in Banking Sector
Bank marketing deals with providing of services to
satisfy customer‘s needs and wants. Service marketing
plays a vital role in bank marketing. For satisfying the needs
of the customer‘s special techniques and services need to
be designed. Traditional marketing mix is not responsible all
of the service marketing mix elements are required. In
service sector banking sector plays a crucial role. The
banking sector plays a key role in the development of the
economy. Banks are now giving importance to the
marketing activities to create awareness regarding their
services to the public. Customer plays a key role in banking
sector as we know customer is god.
Service Marketing Role in Banking Sector
Customer satisfaction is important so that banks are
introducing new instruments and ways to attract the
customers. Banks are building many strategies in order to
retain the customers. Banks are now putting emphasis on
customer relationship management. That too they are
concentrating on long-term relationships to retain the
customers.
The importance of marketing is increasing day to day in
banking sector due to the following:
 Environmental changes
 High competition
 Increased profit motive
 Urbanization
 New Technology etc.
MARKETING MIX
Key concept in the modern marketing
Considered to be core of marketing
It is the set of tools that the firm uses to
pursue its marketing objectives in the target
market
Decisions must be made for both the
distribution channels and the final
consumers
 Marketing Lessons
OLD New
Product Consumer

Price Cost

Place Convenience

Promotion Communication
Winning companies are those that can
meet customer needs economically and
conveniently and with effective
communication

Services Marketing Mix – 7P’s

Product, Price, Place, Promotion, People, Physical
evidence, Process