Banking Industry m x

8/12/2019 Banking Industry m x

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Banking in India originated in the first decadeof 18th century with The General Bank ofIndia coming into existence in 1786

Central banking is, the responsibility ofthe Reserve Bank of India

In 1969 the government startednationalization of bank.

Total deposits, advances and net profit grewat CAGR of 19.6%, 27.4% and 20.2%respectively from FY03 to FY10


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Banking is an essential industry. It is vital system for developing economy for the

nation.

It is where we often wind up when we are seeking

a problem in financial crisis and money relatedquery.

Banking is one of the most regulated businessesin the world.

Banks can play a dynamic role in delivery andpurchase of consumer durables.

Banks remain important source for careeropportunities for people.


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In terms of share holding pattern:-

Public sector Banks

Private sector Banks

Co-operative Bank Development Bank/Financial institutions


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Post offices Mutual fund

Share market

Insurance Money lenders

Family and Friends


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Improving profitability Reinforcing technology

Risk management

Sharpening skills Greater customer orientation

Corporate governance

International standards


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MARKETING

MIX

PRODUCT

PRICE

PROMOTION

PLACEPEOPLE

PROCESS

PHYSICAL

PROCESS


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BANK ACCOUNTS DIFFERENT LOANS

INVESTMENT SERVICES

DEMAT ACCOUNT ONLINE BANKING

MOBILE BANKING


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INTERESTInterest charged by the banker on loans

COMMISION/FEES

demand draft, charges for various types oftransactions and fees for certain services

INTEREST PAID BY BANK

Interest rates paid by the bankers on

deposits


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The place decision mainly deals with selectionof a suitable location for the branch. Soundlocation decisions help in activating thebusiness. The location should have adequate

availability of transportation, communication,electricity and other necessary facilities forthe smooth functioning of the banks


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Establishing network of banks. Atm services

Video Banking

Mobile Banking


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Personal Promotion:The bank marketer getsopportunity to tangibilise the productthrough personal selling; persuasion is moreeffective with direct contact. It helps in

creating impulse buying.

Impersonal Promotion:i.e. Advertising,Publicity and Sales Promotion measures. Anadvertisement in banking is a promotionmeasures for bank.


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Banking products cannot be separated fromthe person (banker) who markets them.

The product and the seller togetherconstitute the banking product. Banks should

adopt internal marketing in order to make thewhole business customer-oriented.

The bank products should be marketed to theemployees first before they are marketed to

customer. The corporate mission should becommunicated repeatedly and effectively toall employees by the top management.


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It involves all activities right from the productconception stage, to product designing anddevelopment down to its marketing at thebranch level.

Speedy delivery of services.

Reducing paper work.

Standardization of procedure.

Customization Simplicity


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It refers to the overall layout of the place i.e.how the entire bank is designed. Physicalevidence refers to all those factors thatmakes process much easier and smoother.

Eg: In banks the physical evidence would bethe placement of customer serviceexecutivesdesk or the location of the placefor deposting cheques


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Employee uniform Reports

Singage logo


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Demographic variables- locations (metros & divisional cities)

Occupation (business person, salaried classboth govt. & pvt.)

Age (senior citizens & minor )

Psychographic variables-Life styles

people who belives in modern banking withhigher set of service i.e internet banking.


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Target market Corporate banking market-this market target

the industries and fulfill their financial needs.

Capital market-this segment is targeted onthe long term needs of the individual as wellas of industries.

Retail banking market-this segment is for

retail investors and provide them short termfinancial credit for their personal, household


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To successfully position commercial bank services and otherservices it requires careful consideration of important,attractive, distinctive and superior service attributes tocustomers.

It is essential to consider communication to customers as equallyimportant as to employees for successful positioning ofcommercial banking services. Most important is to use customercontact employees to effectively communicate to customers.

For successful positioning strategy of commercial bank servicesit is important to consider and promote a few but well specified,distinct and superior benefits relative to competitors since they

do influence the position of the bank in the market andsignificantly contribute to market performance.


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Bank highlight following points in theirpositioning segments-

Customer centric Service oriented Product innovations


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Banking Industry m x

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