1. SERVICES MARKETING IN
BANKING
BY
Mir Zeeshan Ali

2. BANKING
“ A bank is a financial institution
that accepts deposits and channels
those deposits into lending
activities “

3. 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.

4. 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
banks
 Private Sector Banks: Foreign Banks, Scheduled and Non-
Scheduled Banks
 Co-operative Sector: State Co-operative Banks, Central Co-
operative Banks, Primary Agriculture Credit Societies
 Development Banks/Financial Institutions: IDBI, ICICI,
NABARD

5. 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
Bank.”

6. 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
is important.

7. CONCEPT OF BANK MARKETING
 Identifying the most profitable markets now
and in future;
 Assessing the present and future needs of
customers;
 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
market place.

8. MARKETING STRATEGIES
 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
various segments

9. SEGEMENTATION
 Banks deal with individuals, group of persons
and corporate.
 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

10. Criterion for Market Segmentation in India
 Agricultural Sector
Marginal
2 to 5 acres
5 to 10 acres
10 acres and above
 Industrial Sector
Tiny
Co-operative
Small-sized
Large- sized

11. TYPES OF MARKETING

12. Traditional external marketing
 Consists of usual four ‘Ps’ of Product, Price,
Place and Promotion of marketing mix
Product:
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.

13. PRICING

14. GENERAL STEPS OF PRICING

15. PLACE
 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.

16. CONT…
 With the advent of technology other point of
contacts have come up. Such as:
ATM
Telephone banking
Online banking
Mobile banking
Video banking etc.

17. PROMOTION
 Advertising
 Publicity
 Sales Promotion
 Personal Selling
 Push and Pull Strategies

18. INTERNAL MARKETING
 It involves the people(5th P) of the bank i.e.
the employees.
 Employees should also be treated as internal
customers, and sort of marketing mix should
be followed.
 Quality Human resource can be a point of
differentiation

19. INTERACITVE MARKETING
 The quality of service provided during the
buyer-employee interaction.
 Efforts for previous strategies will turn futile if
the interaction does not takes place
satisfactorily.
It involves :
• Process (6th P)
• Physical evidence (7th P)

20. PROCESS
 Refers to the systems used to assist the
organization in delivering the service.
 Aids to the promotion of customer
satisfaction
 It involves:
speeding delivery of services
reducing the paper work
standardization of procedures
customization as per individual demand
simplicity etc.

21. PHYSICAL EVIDENCE
 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
customers.
 Punch lines: Depicts the philosophy and attitude of
the bank. Banks have influential punch lines to
attract the customers.

22. Current Marketing Strategies
 Referral services
 Direct mailing
 Cold calling
 Offering items having your brand identity
 Using the media
 Getting celebrities to endorse the product or service.
 Sponsoring events
 Using permission-based Marketing

23. RURAL BANK MARKETIGN
 Follows 80-20 Parato principal
 Bankers need to understand the rural psychology
 Employing local literate youth for confidence
building
 Banker must be aware of agriculture aspects,
cultural and communal aspects, institutional
facilities etc.
 Process of change should be known to him
 Status of various development plans should be
known

24. SEVEN SERVICE QUALITY GAPS
Customer needs & expectations
MGM. definition of these needs
Translation into design/delivery
Execution of design/delivery Advertising and sales
promises
Customer perceptions of Customer interpretation
Product executions of communications
Customer experience
Relative to expectations

25. 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

26. Facilitating & enhancing Supplementary
services
Information
Payment Consultation
Order
Billing Core
Taking
Exceptions Hospitality
Safe Keeping

27. 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
exchange.
 New rules: Banks are transforming to
universal banking, adding new channels with
lucrative pricing and freebees to offer.

28. CONT…
 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
diffused.

29. CHALLENGES FACED BY THE INDUSTRY
 KYC
 Technical issue
 Organizational arrangement
 Product innovations
 Price bundling approach
 Business process reengineering(BPR)
 Effective human recourses
 Rural orientation

30. STUCTURE OF THE ORGANISED BANKING SECTOR IN
INDIA

31. THANK YOU…