SERVICES MARKETING IN
Mir Zeeshan Ali
“ A bank is a financial institution
that accepts deposits and channels
those deposits into lending
WHAT ARE BANKS
Institutions which deals in money and credit.
An intermediary, which handles other
people’s money both for their advantage and
to its own profits.
A financial institution that links the flow of
funds from savers to the users.
Plays an important role in the economy of any
country as they hold the saving of the public.
TYPES OF BANK
Central Bank: The Reserve Bank of India is the central Bank
that is fully owned by the Government
Public Sector Banks: State Bank Group, Regional rural
Private Sector Banks: Foreign Banks, Scheduled and Non-
Co-operative Sector: State Co-operative Banks, Central Co-
operative Banks, Primary Agriculture Credit Societies
Development Banks/Financial Institutions: IDBI, ICICI,
WHAT IS BANK MARKETING
“Bank marketing is the aggregate
of functions, directed at providing
services to satisfy customers
financial (and other related)
needs and wants, more effectively
and efficiently than the
competitors keeping in view the
organizational oBjectives of the
WHY BANK MARKETING NECESSARY
The existence of the bank has little value
without the existence of the customer.
Aim is not only to create and win more and
more customer but also to retain them
through effective customer service.
Appropriate promise to a customer through a
range of services (products) and also to
ensure effective delivery through satisfaction
CONCEPT OF BANK MARKETING
Identifying the most profitable markets now
and in future;
Assessing the present and future needs of
Setting business development goals and
making plans to meet them
Managing the various services and
promoting them to achieve the plans
Adapting to a changing environment in the
Designed after taking into account the strengths and
weaknesses of the organization.
Bank with clientele from various segments could think
of “market penetration” by offering the existing range
of services to existing customers.
Bank which are not facing acute competition could
think of “Market Development” by offering the existing
services to new customers.
Design new product range for their customers of
Banks deal with individuals, group of persons
More or less homogenous groups in terms of
their needs and expectations.
Market segments, targeting one or more
segments, developing products and marketing
programs tailor-made for these segments
Criterion for Market Segmentation in India
2 to 5 acres
5 to 10 acres
10 acres and above
Traditional external marketing
Consists of usual four ‘Ps’ of Product, Price,
Place and Promotion of marketing mix
The products offered are the services
which includes various types of bank accounts,
different types of loans, investment services,
Credit cards, online banking, mobile banking
and many more.
It refers to the establishment and functioning
of a network of branches and other offices
through which banking services are delivered.
Objective is to get the right product ,at right
places at right time at the least cost.
Extensive branch network- access to large
section of people
Proximity may play a determinant role in
selecting the bank.
With the advent of technology other point of
contacts have come up. Such as:
Video banking etc.
Push and Pull Strategies
It involves the people(5th P) of the bank i.e.
Employees should also be treated as internal
customers, and sort of marketing mix should
Quality Human resource can be a point of
The quality of service provided during the
Efforts for previous strategies will turn futile if
the interaction does not takes place
It involves :
• Process (6th P)
• Physical evidence (7th P)
Refers to the systems used to assist the
organization in delivering the service.
Aids to the promotion of customer
speeding delivery of services
reducing the paper work
standardization of procedures
customization as per individual demand
It includes signage, reports, punch lines, other
tangibles, employee’s dress code etc.
The company’s financial reports are issued to the
customers to emphasis or credibility.
Signage: Each and every bank has its logo by which a
person can identify the company. It creates
visualization and corporate identity for the banks.
Tangibles: banks give pens, writing pads to the
Punch lines: Depicts the philosophy and attitude of
the bank. Banks have influential punch lines to
attract the customers.
Current Marketing Strategies
Offering items having your brand identity
Using the media
Getting celebrities to endorse the product or service.
Using permission-based Marketing
RURAL BANK MARKETIGN
Follows 80-20 Parato principal
Bankers need to understand the rural psychology
Employing local literate youth for confidence
Banker must be aware of agriculture aspects,
cultural and communal aspects, institutional
Process of change should be known to him
Status of various development plans should be
SEVEN SERVICE QUALITY GAPS
Customer needs & expectations
MGM. definition of these needs
Translation into design/delivery
Execution of design/delivery Advertising and sales
Customer perceptions of Customer interpretation
Product executions of communications
Relative to expectations
DETAILS OF SERVICE DELEVERY GAPS
1.The knowledge gap
2. The standards gap
3.The delivery gap
5.The perceptions gap
6. The interpretation gap
7. The service gap
Facilitating & enhancing Supplementary
CHALLENGES FACED BY BANKING INDUSTY
Deregulation: This continuous deregulation
has made the Banking market extremely
competitive with greater autonomy,
operational flexibility and decontrolled
interest rate and liberalized norms for foreign
New rules: Banks are transforming to
universal banking, adding new channels with
lucrative pricing and freebees to offer.
Efficiency: Banks need to access low cost
funds and simultaneously improve the
efficiency. The banks are facing pricing
pressure, squeeze on spread and have to give
thrust on retail assets.
Diffused Customer loyalty: Customers have
become demanding and the loyalties are
CHALLENGES FACED BY THE INDUSTRY
Price bundling approach
Business process reengineering(BPR)
Effective human recourses
STUCTURE OF THE ORGANISED BANKING SECTOR IN