marketing of bank 121

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PROJECT REPORT OF

MARKETING OF BANK

UNIVERSITY OF MUMBAI

BACHALOR OF COMMERCE

(BANKING AND INSURANCE)

SEMISTER V

2014-15

SUBMITTED BY

PRATIK SHARMA

PROJECT GUIDEMS

GHANSHYAMDAS SARAF COLLEGE

OF ARTS AND COMMERCE

R.S Campus, S.V road,

Malad (west),Mumbai-400 064

B.COM (BANKING AND INSURANCE)

5TH

SEMISTER


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ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY OF MUMBAI for

giving me a chance to do this project.

I express my sincere gratitude to the Principal; Chief Co-ordinator Mrs. Urvi Madam, Guide Prof

and our librarian and other teachers for their constant support and helping for completing the project.

I am also grateful to my friends for giving support in project. Lastly,

I would like to thank each and every person who helped me in completing the especially MY

PARENTS.


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DECLARATION

I Mr PRATIK GOPAL SHARMA a student of Ghanshyamdas Saraf

College of Arts and Commerce, Malad (w) T.Y.B.C.B.I (SEMESTER V)

Here by declare that i have completed project on MARKETING OF BANK in the academic yea

2014-2015. This information Submitted is true and original to best of my knowledge.


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7 Ps OF BANK

MARKETING


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INTRODUCTION

Satisfaction and expectations move together. We cantsdeny that during the yester decades, there hav

been multi-dimensional changes in the business environment which has shown a major impact on our lifestyles

We find a direct impact of disposable income on the discretionary income. Here it is essential to make it clear

that disposable income is that portion of the income which is left in our hands after discharging the tax liability

and the discretionary income is that portion of the disposable income which is in our hands after incurring the

essential expenses, specially for managing food, shelter, clothing, basic educational band medical aids. It i

really the discretionary income which affects the banking business since the income is either spent on luxury

items for managing the comfortable living conditions or invested with the motto of earning interest and

dividend. It is against this background that upward trend in discretionary income creates a sound nexus or a

conductive environment for the development of banking business, specially the mobilization of savings and

deposits.

In the past, the commercial banks did not find any attraction in the Indian economy because of the

meager business prospects-and the low level of income vis--vis the stagnating economic activities. Of late, we

find good auguries and feel that the Indian economy is moving ahead on the right path which would make the

business environment more conductive.

No doubt in it that the national development policy has made possible such a positive change in th

business environment that the intensity of competition is found at its peak. Just after the beginning of th

decade 1990s, we have witnessed a basic change in the attitude of the policy makers which has compelled

almost all the organizations either producing goods or generating services to innovate their policy decisions

This in a natural way has necessitated a need more professional excellence so that a stage of fierce competition


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is accepted as a challenge and necessary steps are taken to excel competition, increase the market share and

establish leadership.

BANK MARKETINGTHE CONCEPT

The concept Bank Marketing is the combination or compendium of two different words, Bank

and Marketing. In a true sense, it is application of marketing principles in the banking services o

conceptualization of marketing in the decision- making process of banking organization. It is against thi


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background that with the change in the concept of marketing, we find an analogous change in the concept o

bank marketing. It is quite natural that in an age of electronic marketing, the functional responsibilities o

bankers witness a radical change.

The matching of marketing with the banking services is the formulation of an overall marketing strategy

which suits the savings and investment preferences, needs and requirements, likes and dislikes of customers

In view of the above, it is right to say that bank marketing is related to the product, promotion, place, pricing

and people decisions of the banking organizations which simplify the task of restructuring or revamping their

decisions in tune with the changing business environment. In addition, the bank marketing also includes in it

purview the studies related to the behavioural profile of the customers and the marketing information system so

that the marketing decision coil more dynamism in its nature and move with the customers and market.

Thus right from the making of services product (core and peripheral), promotion, place, pricing and

people decisions to the study of bankers and customers, market conditions and environment become an integra

part of bank marketing.

JUSTIFICATIONS FOR PRACTISING MARKETING IN BANKS

The time honoured innovation in perception becomes essential to conceptualise the modern marketing

principles in the banking services. The following arguments justify the application process:

1. Understanding the customers: The concept of bank marketing is of late well


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supported by the sophisticated information technologies. With the help of different sub-systems and to be

more specific the marketing research, the bankers get an opportunity to understand the expectation of

prospects/customers. Since we segment the market and intensify the research, it is easy to identify the

magnitude or the emerging trends in expectations. The life styles, likes and dislikes, hopes and aspiration

or the behavioral profile all are perceived in a right fashion. This simplifies the task of formulating

sensitive policies and strategies. It is against this background that the banking organizations need to

practice marketing.

2. Satisfying the customers: If we understand the prospects in a right fashion and the policy makers

appear interested in designing creative or time honoured policies, the success rate reaches at its peak. If the

marketing processes help us in understanding the customers, the task of satisfying them is found easier

The formulation and innovation process of marketing mixes moves in right and desired order. The

customer get the services in tune with their expectations which helps banks in mobilizing savings and

deposits by transforming the prospects into actual customers and actual customers into habitual customers.

3. Excelling Competition: Of late, the intensity of competition is found at its peak. Like other

organizations even banks have also been facing numerous problems due to fierce competition. The leading

foreign banks and to some extend even the Indian commercial banks working under the private secto

believe in creating and expanding the quality gap. The public sector commercial banks just attempt to

bridge over the gap or even fail in doing such. The snatching of business is thus found gaining the

momentum. This makes it essential that the innovation process gets an overriding priority even in the

public sector banks.


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4. Formulating and Innovating the Mixes: The quality of mix plays a decisive

role in getting the business and increasing the market share. Hence the first mix is product in which we

need to make possible an optimal blending of core and peripheral services. If we turn our eyes on the

product mix of the private sector banks we find peripheral services getting due weightage. The consume

financing has been given an important place in almost all the private sector banks. The consumerism has

taken a new shape and the customers needs and requirements are expanding very fast. This makes i

essential that while formulating or innovating the product mix, we assign due weightage to the needs and

requirements of customers.

5. Social Orientation: It is not only sufficient that we offer to the customer quality services. It is no

only significant that we promote in a right fashion. It is not only meaningful that our strategies for interest

and fees are lucrative. It is not only essential that our personnel are familiar with the various dimensions o

behavioural management. In addition, it is much more impact generating that policy makers arrange and

overriding priority to the magnitude of social costs.

7 PS of BANKING SECTOR

It is very important for any bank to identify the 7 Ps of services so as understands their customers bette

and provide them with best of service. The 7 Ps are:

1. PRODUCT MIX


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2. PRICE MIX

3. PLACE

4. PROMOTION

5. PEOPLE

6. PROCESS

7. PHYSICAL EVIDENCE

PRODUCT M IX

According to Philip Kotler, a product is anything that can be offered to market for attention, acquisitio

use or consumption that satisfy a want or need.

It includes physical objects (TV), service (banking), person (political person), place

(holiday resort), organization (red cross) and idea (aid awareness).


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The product mix of a company includes all different product lines a company offers to its customers. The

product line of a bank might easily include more than 100 different services. In todays competitive scenario i

has become very necessary for a bank to provide its customers with a wide variety of services and the bes

technology in order to attract them. Here is an example of some of the products offered by Axis bank to its

customers:

OFFERING :

Axis bank's Savings Account is just the right product for everyone, salaried, employees or businessmen, high

net worth individuals and NRI's. The unmatched package of Axis bank Savings Bank account given below

brings the benefits of better, efficient and hassle free banking.


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ATM Network

A Savings Bank Account with Axis bank entitles you to a free ATM card, which enables you to access you

account anytime and at any ATM centre across the country. You can withdraw and deposit money and cheque

with your ATM card. Unlike most other ATMs, a Axis bank ATM allows you to withdraw up to Rs. 20,000 a

day. In addition, cash can be withdrawn from any of the ATMs against your MasterCard

(domestic/international).

7-Day Banking

At select branches spread over the country, you can bank on all the 7 days of the week (except for publ

holidays), over extended working hours.

Telebanking

Telebanking service provides you instant access to your account. It offers you a wide range of services over the

phone such as account information, Balance Enquiry, Transaction Details, Statement of Account, Status o

your Cheque, etc.
http://www.utibank.com/atm/atmlocate.asphttp://www.utibank.com/telebank/telebanking.htmlhttp://www.utibank.com/telebank/telebanking.htmlhttp://www.utibank.com/telebank/telebanking.htmlhttp://www.utibank.com/atm/atmlocate.asphttp://www.utibank.com/atm/atmlocate.asp


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iconnect-Internet Banking

This is the concept of "the Bank on your desk-top". You can look-up the status of your account, query and

undertake a range of financial transactions, simply by clicking the mouse. Now don't you think you have

great opportunity to see yourself laughing your way to the bank?

OFFERING

Axis bank has joined hands with Citibank, to give rise to a new kind of card power - unique and unmatched

benefits and international utility at the most competitive rates. The Axis bank Citibank International Silve

Card, the MasterCard and 'Unique' Card offers quite a few benefits.
https://www.utibank.co.in/BANKAWAY?IWQRYTASKOBJNAME=bay_sign_on&BAY_BANKID=211https://www.utibank.co.in/BANKAWAY?IWQRYTASKOBJNAME=bay_sign_on&BAY_BANKID=211https://www.utibank.co.in/BANKAWAY?IWQRYTASKOBJNAME=bay_sign_on&BAY_BANKID=211https://www.utibank.co.in/BANKAWAY?IWQRYTASKOBJNAME=bay_sign_on&BAY_BANKID=211


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Rewards

Axis bank Citibank Card combines dual conveniences of high purchase power and flexible payment facility

Purchase of high-value items is now convenient and when it comes to payback time, your bill can be paid in

installments, depending on your financial liquidity at a given moment. The Revolving Credit Facility lets you

pay as little as 5% of your total outstanding every month. Giving you the power to buy now and pay later in

parts!

Dial-A-Draft

One can use your Axis bank Citibank Card to pay for your personal expenses at places where credit cards are

not accepted yet. Like paying for investments, telephone and electricity bills, school fees and much more. Jus

call CitiPhone and the draft you need will be delivered to you!

Credit Limit Increase

You can call CitiPhone and ask for a Credit Limit Increase in the event that you have to make a large purchas

on your card urgently. It's especially handy for paying off vehicle repairs, telephone bills and electricity bills

And for anniversaries, weddings, birthdays, or business trips or when a holiday goes beyond budget.


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24-Hour ATMs

One can withdraw emergency cash up to 60% of your credit limit from 24-Hour ATMs in Ahmedabad

Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai and Pune. While traveling overseas you can draw

cash from MasterCard ATMs spread across the globe. The same is applicable for any Citibank branch. Also th

cash you withdraw is insured against theft for a period of 12 hours after withdrawal. A never before facility i

brought to you with the Axis bank Citibank Card at a transaction fee of 2.5% or Rs.50 whichever is higher. Al

cash advances also carry a service charge from the date of the transaction. The cash withdrawal limit for th

first year is Rs.5,000.

Photo card

One may choose to have your photograph and signature digitally imprinted on the front of your Card in color

So that you get the extra recognition and security you expect as a Axis bank Citibank card member


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Concession on Personal Remittances

Do you often need to remit funds to other cities using facilities such as Drafts/Telegraphic Transfers, etc.

Here's a benefit you would most appreciate. A 25% rebate on standard commission is offered on persona

remittances at Axis bank branches.

Overdraft facility

Axis bank Citibank credit card provides you with an overdraft facility to the extent of 75% of the value of you

holdings of Demat Shares and Units! Moreover, you get a waiver of 0.5% on interest rate chargeable under the

scheme. All you need to avail yourself of these benefits is a Demat A/c with Axis bank.

Free ATM Card

The Axis bank Citibank Credit Card offers you a free ATM Card, which can be used at over 250 Axis bank

ATM centers all over India. All you have to do is open a saving bank/current Account with Axis bank.

Other features

Axis bank Citibank Card has the widest possible reach - welcomed by 1,10,000

Merchant Partners across India and Nepal and yet another 160 lakh Merchant Establishments worldwide. Th

card can be used both for major occasions, and also for everyday purchases like groceries, cosmetics, and petr

and auto accessories. It can also be used to buy high-value items like consumer durables (refrigerators, washin


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machines, microwave ovens, etc.). And even paying customs duty and hospital bills becomes convenient wi

the Card

PRODUCT WIDTH AND DEPTH

Width

Width of the product mix is the number of product lines a company is offering. The product width could be a

narrow one or a wide one depending from bank to bank. A wide mix encourages more sales since the banks are

able to diversify and provide more to their customers and they also appeal to a larger target market.

Depth

Depth of the product mix is the number of product items in each product line. Banks with more schemes and

services have more depths than those offering only a few.


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Here is table giving an example of Width and Depth in the Product Mix:

Similarly, different banks plan out their product portfolios and based on that, the depth and width of the

product mix can be determined.


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Potential Product:

Core

Product

Basic

Product

Expected

Product

Augmented

Product

Potential

Product

The basic

necessity to

use banking

services in

order to

handle

finance

more

efficiently

Safety of

deposits

Loan able

funds etc.

Timely

service

Long

banking

hours

Low

interest

rates

Goods

waiting

rooms

Extensive

ATM

network

Promotional

Discounts

Mobile and

internet

Banking

New

Schemes

tailored for

specificcustomers


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PRICE MI X

The price mix in the banking sector is nothing but the interest rates charged by the different banks. In

todayscompetitive scenario where customer is the king, the banks have to charge them interest at a rate in

accordance with the RBI directives. Banks also compete in terms of annual fees for serviceslike credit cards

DMAT etc. Another important aspect of the banks pricing policy today is the interest charged on the Hom

Loans and Car Loans. With Indias economy progressing, there are more and more buyers seeking these loan

but at a very competitive interest rate.

Lets understand this with an example. A particular buyer approaches a bank for a car loan for a period of 3

years. He is charged Rs.20,000 as interest. However, if a sale representative of another bank comes to know o

this deal, he will try to attract the customer by giving him a better deal i.e. a loan at a lower rate on interest. In

this way, it is the customer that ultimately benefits.

Here is an example of some of the prices charged by ICICI bank for their services


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ATM Card Issue Free2 ATM cards issued

free if it joint account

Addon Card RS. 100Beyond 2 cards

Duplicate Card Rs.100

Other General Charges

Current Account Savings Account

Transaction Charges NIL NIL

Charges for issue of

Cheques book

NIL NIL

Issue of duplicatestatement

Rs.25 per page Rs.25 per page

Account closure Rs.100 Rs.100


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This example evinces some of the charges that the customer has to pay for the service

provided by the bank.:

The pricing factor is very important because of the kind of competition that is prevailing today in the

Indian market. However it is very important to understand that in the banking sector, the main pricing policy is

concerned with the interest rate charged. This interest rate is however

regulated by the RESERVE BANK OF INDIA and THE INDIAN BANKING ASSOCAITION.

Any one particular bank or a group of banks does not regulate it. The interest rate charged cannot be higher tha

that decide by the RBI and the INDIAN BANKING ASSOCIATION.

Thus, in spite of the constraints in the pricing policy due to the RBI directives there are mainly three types o

pricing methods adopted by banks. They are:

Value pricing:

Banks having unique or different products or schemes mainly do this type of pricing. They usually charge a

combination of high and low prices depending on the customer loyalty as well as the products. This type o

pricing strategy is usually coupled with promotion programmes.

Going Rate pricing:

The most commonly used pricing technique is the going rate pricing. In going rate pricing, the bank bases it

price largely depending on the competitors prices. Thebank show ever have to stay within the RBI directive

and compete. The banks may charge higher or lower than their competitors.


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Mark up pricing:

This is a pricing technique wherein the cost of the service is determined and a small margin is added to

and then the final price is offered to the customers. This type of pricing is the not very popular since in the

banking sector it is not very easy to arrive at the cost of the service. Thus most banks use a combination of mar

up pricing and going rate pricing.

This model shows a pricing strategy, which should be adopted in order to ensure maximum satisfactio

to both the bank as well as the customers.

The price should be set in such a manner that the customer is assured that he is not being cheated or

overcharged by the bank and at the same time the bank is able to reap maximum profits. Such a pricing stand

helps the bank get maximum sales as well as profits since the customer feels that by entering such a transaction

he is winning.


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PLACE MI X

Place mix is the location analysis for banks branches. There are number a factors affecting the

determination of the location of the branch of bank. It is very necessary a bank to situated at a location where

most of its target population is located.

Some of the important factors affecting the location analysis of a bank are:

1. The trade area

2. Population characteristics

3. Commercial structure

4. Industrial structure

5. Banking structure

6. Proximity to other convenient outlets

7. Real estate rates

8. Proximity to public transportation

9. Drawing time

10.Location of competition

11.Visibility

12.Access

It is not necessary that all the above conditions have to be satisfied while selecting the location but it should b

tried to satisfy as many of them as possible.


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1. The Trade Area:

The trade area is a very important factor determining the place where a bank branch should be set up. For e.g

a particular location maybe a huge trading place for textiles, diamonds or for that case even the stock market

Such locations are ideal for setting up of bank branches.

2. Population Characteristics:

The demography of a place is a very important factor. This includes:

The income level of the population

The average age

The average male female population

The caste, religion, culture and customs

The average spending and saving habit of the people.

These factors are very important for a bank as they help them decide the kind of business the branch will get.

3. Commercial Structure:


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The commercial structure refers to the level of commerce i.e. business activities taking place at a particula

location. The higher the level of business activities taking place in a particular location the more preferable it i

for setting up a bank branch.

4. Industrial Structure:

This is nothing but a combination of the trade area analysis and the commercial structure. However the

industrial structure focuses more on the kind of industries operating in a particular location. For example, an

area like SEEPZ is marked with a lot of electronic manufacturing units. Thus the industrial stricture determine

the kind of financial transactions that could take place in a particular location.

5. Banking Structure:

The Banking structure refers to the existence of other banks in the area. Whether there is already an efficien

network of other bank branches operating at that particular area. Thus the overall infrastructure needed for the

working of a bank

6. Proximity of other convenient outlets:

This refers to the other branches of the same bank as well other

commercial, entertainment and industrial outlets.


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7. Real Estate Rates:

This is mainly dealing with the cost factor involved in opening up a bank branch at a particular location. Th

real estate rate is a very strong factor influencing the location decision for a bank branch.

8. Proximity to public transportation:

The location should be proximate to public transportation facilities. This means it should have bus stops close

by as well as it should be proximate to railway stations so as to make it convenient for the common man.

9. Drawing Time:

Drawing time refers to the time period during which a customer can draw money from the banks. It should b

convenient to the customer and somewhat flexible to accommodate the customers needs. No bank has mor

than a certain amount with them and in case a customer wants to

withdraw an amount more than that available with the bank, the bank needs to draw that amount from othe

banks. Hence, a location must be such that it facilitates minimum drawing time.

10. Location of Competition:


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The existence of other banks also means competition. If the level of competition is very high in a particula

location, it is necessary that a bank does a lot of market research before opening a branch so as to estimate the

kind of business it would get.

11. Visibility:

The location of a branch should be such that it is visible and easily noticed by the customers as well othe

people.

12. Access:

The bank branch should be very easily accessible to the customers. If this is not the case, the customer might

switch to some other bank, which is more convenient to him and very easily accessible. The location should be

such that it is very convenient for the customer to reach.

Promotion M ix

Promotion is nothing but making the customer more and more aware of the services and benefits provided by

the bank. The banks today can use a lot of new technology to communicate to their customers. Two of the

fastest growing modern tools of communicating with the customers are:

1.Internet Banking


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2.Mobile Banking

This can be better explained with the example of ICICI bank.

SMS services

SMS functions through simple text messages sent from your cellular phone. These messages are recognized by

ICICI bank to provide you with the required information.

For example, when you enter IBAL your cellular phone screen will display the current balance in

your primary account. Thus with the help of SMS a wide range of query based transactions can be performed

without even making a call.

ICICI was the first organization in India to provide Wireless Application Protocol (WAP) based

services. Mobile commerce using WAP technology, allows secure online access of the web using mobile

devices. With WAP one can directly access the ICICI WAP server, check ones

account details and use other value added services.

Thus different methods are used by different banks to promoter its services

A bank may have very attractive schemes and services to offer to their customers but they are of no use

if they are not communicated properly to the customers. Promotion is o inform and remind the individuals and

persuade them to accept, recommend or use of product, service or idea. However there some very importan

points that is to be considered before the promotion strategy is made.


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These points are:

F inalizing the Budget

Before the bank decides the kind of promotion that should be done, it very important to finalize the budget for

it. The formulation of a sound budget is essential to remove the financial constraints in the process. The budget

is determined on the basis of volume of business of the bank. In addition to this the intensity of competition

also plays a decisive role.

Selecting a suitable vehi cle

Another very important task is to select a suitable vehicle for driving the message. There are a number

of devices to advertise such as broadcast media, telecast media and the print media. The selecting of the mode

of advertising is strongly influenced by the kind of budget decided. Usually for promoting banks the most

effective and economical form of advertising has been the print media.

Making possible creativi ty

Making possible creativity is nothing but the kind of slogans, punch lines etc. that are supporting th

message.


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They should be very creative but yet simple to be understood by the common man. It should appeal to

the customers. It should be distinct from that of the competitors and should be successful in informing and

sensing the customers.

Testing the Ef fectiveness

It should be borne in mind that the advertisement is first tested for its effectiveness. This should be don

with the help of various techniques like testing effectiveness on a sample group. This helps determine th

success of the advertisement and in case of any problem the advertisement can be altered and remedied.

I nstrumentali ty of Branch Managers

At a micro level, it is the responsibility of the branch managers to promote and drive the message to th

people in the local area. They should organize small programs in order to attract people and crate awareness in

the local area about the new schemes of the bank.

Di fferent Ways of Promotion

Publi c Relations:


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In todays competitive scenario developing strong public relations is very important for any bank to b

successful. Most banks today have a separate Public Relations department. However primarily it is considered

as a responsibility of the various bank managers to develop a steady and strong relationship with their present

customers as well as potential customers. This can be done by a constant follow up, small programmes etc.

Personal Sell ing:

Personal selling is found to be one of the most effective and popular forms of promoting bank business. The

main reason for this is that banking is a service in which trust plays a very important role. In personal selling, a

bank representative goes to the customers and explains the scheme to the customers. Also he gives th

customers any kind consultation he might need. He provides the customers all the information sought by him

The representative tries to persuade the customers to go for the scheme provided by the

bank by telling him all the benefits. Here are some of the important features of personal selling

It is a direct relation between the buyers and the seller

It is oral presentation in conversation

It is personal and social behavior

It is found to be more effective in service oriented organizations


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It is based on the professional excellence or expertise of an individual

Sales Promotion:

Sales promotions are basically giving the customers some additional benefits, maybe at times just some smal

gifts, in order to promote the schemes. The more innovative the sales promotions the more positive are the

results. Some of the most popular sales promotions techniques are gifts, contests, fairs and shows, discount

and commission, entertainment and traveling plans for bankers, additional allowance, low interest financing

etc. It is very important that the sales promotions benefits are designed in such a manner that they are bette

than those of the competitors.

Wordof mouth Promotion:

This form of promotions is not only very effective in banking services but in any kind of service. However i

is more important in banking for the only reason that this is a service where trust plays a very important role. I

a particular banks services are recommended by friends, relatives, or other well wishers the person is mor

influenced and inclined towards that bank. It is very important to note that the internal employees of the bank

play a very important role in wordofmouth promotion technique. This is because they can start the proces

by recommending the bank to their friends and relatives and after that it is like a chain, which spreads like

wild fire.


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Telemarketing:

In recent times telemarketing has gained increasing importance as an effective tool for promotion. The

telemarketing is a process of making use of sophisticated communication network for promoting the banks

This includes promoting through television, telephone, and radio. Nowadays, cell phones are used extensively

for the same.

This is the most popular form of promotion. Banks today have started using SMS and many other services

supported by cell phones to provide benefits to their customers and thus have tried to increase their sales. In

todays competitive and modern scenario it very important that banks makes use of telemarketing technique

very efficiently to have desirable results.

Internet:

The use of Internet as a promotional tool is increasing. More and more banks are using Internet to promot

their services. The online banking has made it even easier for the customers to avail the banks services. No

longer do people have to go to their bank branches for small petty matters like checking their balance etc. Al

this can be done with the help of a few clicks.

Thus, these were the numerous ways in which a bank can promote its services and create more awarenes

amongst the people.


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People

People are the employees that are the service providers. In a banking sector, the service provider plays a

very important and determinant role in rendering the customers a satisfactory and a good service. It i

extremely essential that the service provider understand what his customers expect from him. In the bankin

sector, the customer needs to be guided in a lot of matters, which is possible only with the help of the service

provider.

The position in the eyes of the customer will be perceived by appearance, attitude and behavior of the

customer contact employees. Not only does the customer contact employee influence the customer

perception but also the customer base of the organization does so.


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Process M ix

The process mix constitutes the overall procedure involved in using the services offered by the bank. I

is very necessary that the process is very customer friendly.

In other words a process should be such that the customer is easily able to understand and easy to

follow. Today if particular banks formalities are long and the procedure very complicated the overall proces

fails and the customer may not be inclined towards using that banks services.

Lets take for example the process for application for a car loan.

Now this mainly involves 3 things:

1. Producing of proper documents

2. Filling up of application form

3. Paying for the initial down payment.

Here the process may fail in the following cases:


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1. If the customer is asked to produce a number of forms out of which some may not be necessary at all

Thus it is very necessary that the customer be asked for the minimum but most necessary document and

not the other unnecessary documents.

2. In case of application form, the application form must be in a language best understood by th

customers and it should not be very lengthy one or demanding a lot of unnecessary information.

3. Finally the payment of initial amount. The customer should be given options as to how he would like to

pay by cheques or by credit card. Once again the amount should be very competitive not very high

above the regular rates prevailing in the markets.

The smaller and simpler the procedure, the better the process, and the customer will be more satisfied.


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PHYSICAL EVIDENCE

Physical evidence is the overall layout of the place i.e. how the entire bank has been designed. Physica

evidence refers to all those factors that help make the process much easier and smoother. For example, in case

of a bank, the physical evidence would be the placement of the customer service executives desk, or th

location of the place for depositing cheques. It is very necessary that the place be designed in such a manner so

as to ensure maximum convenience to the customer and cause no confusion to him.

Let us see an example as to how banks try to make little changes so as to make the service better for the

customers.

The Hong Kong Shanghai Banking Corporation (HSBC) has decided in introducing a common uniform

for all the employees in all its branches all over India. The plan is possibly in line with the aggressive retai

banking adopted by HSBC. A common uniform its nothing like a revolutionary change but however this littl

change makes it very easy for the customer to identify with his service provider and makes the entire process

very easy for him. The more the bank does to make the service easier and better the more satisfied will be the

customer.


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FUTURE MARKETING IN BANKING

Future marketing makes it essential that the banking organizations forecast the scenario to influence

their business. The strategic decisions cantremain static. The scientific invention and innovations keep on

moving which influence a process of change. The increasing influence of sophisticated information

technologies on the banking business the world over makes it pertinent that the banking organizations

working in a Indian economy assign an overriding priority to multidimensional international environment it

need keep their eye open and formulate such a strategy that helps them in establishing leadership in the

market. It is strategic marketing which would simplify their task. It is in this context that we go through future

marketing of banking services. The policy planner needs a recipe that helps them in formulating a

sound strategy for tomorrow. Strategy guru Michael Porter feels that a clear locational core, with a mix of

specific activities in other regions would be more productive in the long run. Think Global, Act Local is to be

the most productive strategy for tomorrow. The banking organizations need to perceive the importance of

strategy formulation and too make possible an attitudinal change to make ways for understanding the

expectations and behavioural profile of different segment of customers.


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CONCLUSION

We cantnegate that the bankers, specially working in a public sector need special education and

training facilities in the face of recent development n the banking sector. Since they are suppose to face the

challenges, threats and risks due to quality gap generated by leading foreign banks, the need of the hour is to

project a positive image. Corporate image is the opinion of publics at large regarding the contribution of an

organization and we cant hesitate in mentioning that masses have developed negative attitude regarding

public sector commercial banks. This makes it essential that public sector commercial banks their functiona

style vis--vis the behavioural profile. The marketing makes it essential that we forecast the trend and make

necessary improvement in workings of commercial banks.

Since the business environmental conditions are likely to be more volatile in future commercial bank

in general, the public sector banks in particular need to make necessary preparations to enrich their potential

or to increase their strengths.

BIBLIOGRAPHY


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1.Book on Bank marketing

2.http://en.wikipedia.org

3.www.yahoo.com

4.www.google.com
http://en.wikipedia.org/http://en.wikipedia.org/http://www.yahoo.com/http://www.yahoo.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.yahoo.com/http://www.yahoo.com/http://en.wikipedia.org/http://en.wikipedia.org/

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