Marketing of Banking Services

Marketing of Banking Services

Presented by Azeem Rafat Siddiq Khan

Contents

About Banking ServicesClassification of SCB’sRetail BankingMarketing Strategy of Banking ServicesMarketing Mix of Banking ServicesPricingPromotion MixProductChallengesCRM and Retail BankingSuggestion

About Banking Services

Banking industry currently in a transition phase.

Banking sector has consolidated.

Transformation into service intensive and customer friendly model with a focus on convenience.

Anywhere and anytime banking has revolutionized the banking sector.

Classification of SCB’s

State bank of India and it’s associates

Other Nationalized banks

Regional rural banks

Foreign banks

Other Indian SCB’s

Retail Banking

“Refers to the activities of the commercial banks with individual customer”.

Three basic features of Retail banking.

1 Multiple products

2 Multiple channels of distribution

3 Multiple customer groups

Marketing Strategy of Banking Services

“The relevance of aggressive marketing strategy in banks has come to the fore as never before“

Market segmentation

1 Mass Market

2 Emerging High Income Customer

3 Wealthy Segment

Marketing Mix of Banking Services

7P’s of Service Marketing

Price Promotion Product Place Process People Physical evidence

Pricing

Price is the sum value of all the values that consumers exchange for the benefits or having or using the product or service

OBJECTIVE OF PRICINGProfitSurvivalMarket ShareCash FlowStatus Quo Product QualityCommunicating ImageShort term/Long term

FACTORS INFLUENCING PRICINGThe Customer's Demand ScheduleThe Cost Function and Competitors Prices

Pricing Tactics

Right pricing is must in the cut-throat competition.

Banks are cross selling insurance, mutual funds, and other financial

services.

Moving from branch based transactions to offside transactions.

Fee based income has steadily increased.

Promotion mix

AdvertisingPersonal

selling

Sales Promotion

Public Relations

Direct Marketing

Blended Mix of Promotion Tools

Cont……..

Role of promotion

Persuasion

Inform

Reminding

Reinforcing

Cont……..

Approaches for Promotion

1 Stabilising top of the mind relationship with customer.

2 Making financial service advertisement “humane”.

3 Increase in advertising and publicity budget.

4 Make the brand more trustworthy and reliable

Cont……

Promotion Strategies

1 Brand ambassador

2 Direct Marketing

3 Customer Lifecycle Based Marketing Using Analytics

Product

The process of product planning consists of determining the strategies in

respect of various elements. Product Line, Product Mix, Branding, Packaging and New product development.

Product Strategies

Banks are launching an array of products and services. Banks are also launching their asset management companies.

Cont……..

Some banking product areas with high growth potential are:

Housing Loans Vehicle Loans

Personal Financial Services

Online Bill Pay, Money Transfers and Remittances

Travel Cards

Challenges

Retention of Customer

Rapid Changes in Technology

KYC issues and Money Laundering Risks in Retail Banking

CRM and Retail Banking

CRM is an Integral Component of Marketing

Based on the word of Mouth Experience

Meeting Customer needs is of Paramount Importance

Application areas of CRM

Customer Acquisition Customer Value Maximization Customer Retention Customer Grievance Redressal

Cont….

CRM Strategies Appeal to the self interest of the customer, during Discussions

Bring conversation to areas of interest, profession, native place, Hobbies etc..

Make use of logic and emotional appeal to motivate the customer

Be patient (self-control) with difficult Customers.

Suggestion

Remember: Customer is King and he should be

Recognized