sm in banking

8/13/2019 SM in Banking

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Service Marketing in

Banking Industry

Presented by:

Mohit Grewal (088) | Palak Bansal (090)

Kirti Sharma (096) | Satyam Saurabh (097) 1


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CONTENT

About Banking and Banking Industry

About ICICI

7 Ps of marketing wrt ICICI

RATER model wrt ICICI

Gap Model wrt ICICI

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About Banking Industry

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BANK MARKETING

Market research:Most profitable markets

and needs

(Present & Future)

Goal Setting &Planning

Product Development,

Pricing,

Promotion

Adapting to changingEnvironment

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Importance of Bank Marketing

Bank cannot existwithout thecustomers

Purpose:

to create, win,and keep acustomer

Customer:

central focus ofBanking activities

Ultimate aim-

total customersatisfaction

affected by

staffsperformance

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Profile ofIndia's largest private sector bank

Founded in 1954

HQ in Mumbai, India

K. V. Kamath (Chairman) | Chanda Kochhar (MD& CEO)

PAN- India: 3,529 branches | 11,063 ATMs

Presence in 19 countries

Amongst Big Four banks of India,

First Indian Bank to be listed on NYSE

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arketing ix7 Ps of Marketing

Product

Place

Price

Promotion

Process

People

Physical Evidence

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Product

Place

Price

Promotion

Process

People

Physical Evidence

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1.Personal Banking

Accounts and Deposits- iWish, Dream Deposits, FDs, Family Banking,Privilege Banking, b2 Savings A/c, Young Stars

Loans- Home, Car, Commercial Vehicle, Personal Loan etc

Cards- Credit, Debit, Prepaid, Corporate

Insurance- General and Life

Investments- Mutual Funds, ForEx, Bonds, Senior Citizens SavingsScheme

Demat Account- e-Instructions, Digitally Signed Statements, MobileRequests and Alerts

Agri and Rural Banking- Agri Corporates, Micro Banking, TractorLoans, Farmer Finance

Internet banking- funds tranfer, pay bills, shop, book tickets (RewardPoints)

Mobile banking, ATM 9


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2.Privilege Banking

HNI- High NetWorth Investors

Early Days | Family and You | Retirement | Protecting Your LovedOnes

3.Wealth Management

Grow, Manage, Protect Your Wealth

4.Private Banking

Customized Financial Solutions for:

You, Your Family, Your Business, Your Retirement, Your Legacy

Real Estate Services, Advisory, Investment Banking, Insurance,Investment. 10


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5.NRI Banking

Online Money Transfer Facility Worldwide through

www.money2india.com

Superior Exchange rates

6.Corporate Banking

E-Fund Transfers, online Tax, e-collection, Utility Bill Payment,Technology Finance, Project Finance,

7.Business Banking

Current Accounts and Services, Business Loans, Trade Services,Advisory Services 11
http://www.money2india.com/http://www.money2india.com/


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Retail Financial Services Corporate Financial Services

Term Loans

Project Finance

Commercial Bank

Investment Bank

Venture Capital

Genl. Insurance

IT Services

Loans

Mortgages

Credit Cards

Personal loans

Deposits

Life Insurance

Mutual funds

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Product

Place

Price

Promotion

Process

People

Physical Evidence

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Accessibility ofthe place

Safety andSecurityprovisions

Infrastructure

Facility

MarketCoverage

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PAN- India: 3,529 branches

11,063 ATMs

Subsidiaries inCanada, Russia, United Kingdom (estd.branches in Belgium and Germany)

Branches inUnited States, Singapore, Bahrain, HongKong, Sri Lanka, Qatar, Dubai

Representative offices in

United Arab Emirates, China, SouthAfrica, Bangladesh, Thailand, Malaysia,Indonesia.

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Branches in 33 States


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Branches in 33 Statesand Union Territories

in India.

ANDHRA PRADESH

ARUNACHAL PRADESHASSAM

BIHAR

CHANDIGARH

CHHATTISGARH

DADRA and NAGARHAVELI

DAMAN and DIU

DELHI

GOA

GUJARAT

HARYANA

HIMACHAL PRADESH

JAMMU and KASHMIR

JHARKHAND

KARNATAKA

KERALA

MADHYA PRADESH

MAHARASHTRA

MANIPUR

MEGHALAYA

MIZORAM

NAGALANDORISSA

PONDICHERRY

PUNJAB

RAJASTHAN

SIKKIMTAMIL NADU

TRIPURA

UTTAR PRADESH

UTTARAKHAND

WEST BENGAL 18


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Product

Place

Price

Promotion

Process

People

Physical Evidence

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Dependent Variables:

Quality of service

Rate to meet Banks objectives

Market Rate of Core product

Sales and Operations

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Product

Place

Price

Promotion

Process

People

Physical Evidence

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Product

Place

Price

Promotion

Process

People

Physical Evidence

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Product

Place

Price

Promotion

Process

People

Physical Evidence

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Product

Place

Price

Promotion

Process

People

Physical Evidence

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STRENGHTS

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ICICI is the second largest bank in terms of total assets andmarket share

Total assets of ICICI is Rs. 4062.34 Billion and recorded amaximum profit after tax of Rs. 51.51 billion and located in 19countries

One of the major strength of ICICI bank according to financial

analysts is its strong and transparent balance sheet ICICI bank has first mover advantage in many of the banking

and financial services. ICICI bank is the first bank in India tointroduce complete mobile banking solutions and jewelry card

The bank has PAN India presence of around 2,567 branchesand 8003 ATMs

ICICI bank is the first bank in India to attach lifestyle benefits to banking services for exclusive purchases andtie-ups with best brands in the industry such as Nakshatra,Asmi, Ddamasetc

ICICI bank has the longest working hours and additional

services offering at ATMs which attracts customers


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WEAKNESSES

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Customer support of ICICI section is not performing wellin terms of resolving complaints

There are lot of consumer complaints filed against ICICI

The ICICI bank has the most stringent policies in terms of

recovering the debts and loans, and credit payments.They employ third party agency to handle recovery

management

There are also complaints of customer assault and abuse

while recovering and the credit payment reminders are

sent even before the deadlines which annoys the

customers

The bank service charges are comparatively higher

The employees of ICICI are bank in maximum stress

because of the aggressive policies of the management to


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OPPURTUNITIES

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Banking sector is expected to grow at a rate of 17% inthe next three years

The concept of saving in banks and investing in financialproducts is increasing in rural areas as more than 62%percentage of Indias population is still in rural areas.

As per 2010 data in TOI, the total number b-schools inIndia are more than 1500. This can ensure regular supplyof trained human power in financial products and bankingservices

Within next four years ICICI bank is planning to open1500 new branches

Small and non performing banks can be acquired byICICI because of its financial strength

ICICI bank is expected to have 20% credit growth in thecoming years.

ICICI bank has the minimum amount of non performingassets.


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THREATS

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RBI allowed foreign banks to invest up to 74% inIndian banking

Government sector banks are in urge of

modernizing the capacities to ensure the

customers switching to new age banks areminimized

HDFC is the major competitor for ICICI, and

other upcoming banks like AXIS, HSBC impose a

major threat

In rural areas the micro financing groups hold a

major share

Though customer acquisition is high on one side,


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RELIABILITY

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Your ability to provide the service you have promised consistently,

accurately, and on time.

The following questions can be applied:-

How well do you provide the service that you've promised to your

customers?

Are your systems and processes robust and reliable? Is service delivery consistent and timely, across all service channels

(including online)?

Could you improve the quality of your service in any other way?


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ASSURANCE

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The knowledge, skills, and credibility of staff; and their ability to use

this expertise to inspire trust and confidence.


Do staff have the skills and knowledge needed to deliver a good

service, across all channels?

Do your people need any further training or development? Do staff inspire trust in customers?

Is your service safe and secure?


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TANGIBLES

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The physical evidence of the service you provide. This could be

offices, equipment, employees, and the communication andmarketing materials that you use.


Is the evidence of your service (products, packaging, marketing

materials, website, offices, staff appearance, and so on) attractive

and appropriate for your customers?

Are your website FAQs useful, comprehensive, and up to date? And

can people talk to a human being through other channels if their

questions haven't been answered, or if your website is broken?

Does physical or virtual evidence fit with your organization's brand?


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EMPATHY

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The relationship between employees and customers.The following questions can be applied:-

Do your people build good relationships with customers?

Is all communication with customers clear and timely?

Do staff show empathy with customers? Do they understand why

empathy is essential for providing a great service?

Do your people genuinely care about customer needs?

Are staff able to see things from a customer's point-of-view?


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RESPONSIVENESS

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Your ability to provide a quick, high quality service to your customers.


Do you provide a prompt service, which is easy to access?

Do you manage complaints and feedback appropriately?

Are staff always willing and able to help customers?

Do you resolve customer issues and problems satisfactorily, and ingood time, across all service channels?


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Benefits offered by ICICI Bank

Pay order facility

Facility of demand draft

RTGS facilityNEFT facility

Facility of free cheque book

Mobile banking

Net banking

Insta alert facility


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Customers Preferences

Online Fund Transfer Facility available of cash deposit for inter or

intra branch banking and cash withdrawal Free cheque book Payable at par cheque book facility Phone banking facility Insta alert facility Free pay orders/ demand draftMonthly statementAvailability of loanWorking hours of the bank


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Customer Satisfaction Areas

Online Fund Transfer

Inter or Intra branch banking cashdeposit & cash withdrawal facility

Pay orders/ demand draft


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The GAP Model


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GAP

1

Customer Needs and Expectation

Management Definition of these Needs

1. Better Services.

2. Good Ambience.

3. Least attention paid to small

customers.


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GAP

2

Management Definition of these Needs

Translation into Design

1. No proper service design for

customers.

2. Absence of Customer Defined

Service Standards.


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GAP

3

Execution of Designs

Service Delivery

1. No consistency in quality of service.

2. Customer Enquiry Constraints.

3. Unable to match the demand at

peak hours.

4. Problems with Service

Intermediaries.


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GAP

4

Service Delivery

Advertising and Sales

Promises

1. Inadequate Horizontal Communication.

2. Overpromising.

3. Lack of Integration of Marketing

Communication.


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THANK YOU

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