THEORY PART

INTRODUCTION OF MARKETING MIX

The term "marketing mix" became popular after Neil H. Borden published his article The Concepts of the Marketing Mix in 1964. In this article Borden explains how he first began using this term in the late 1940's after James Culliton described the marketing manager as a "mix of ingredients". These ingredients in Borden's teachings included product, planning, price, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding analysis. These ingredients were later grouped by E. Jerome McCarthy into four categories which we now refer to as the four p's of marketing. The four p's of marketing make up the marketing mix which probably the most is well known of all the marketing terms. "Its elements are the basic, tactical components of a marketing plan. The four p's, of the marketing mix elements are product, place, promotion and price" (Marketing teacher 2009). These four elements create the marketing mix which impacts the development of any organization's marketing strategies and tactics.

MEANING OF MARKETING MIX

Marketing mix is one of the most fundamental concept in marketing management. For attracting consumer and for sales promotions, every manufacture has to concentrate on four basic elements or components .these are: product, price, promotion and place. A fair combination of these marketing elements is called as marketing mix. It is the blending of four Ps which core of marketing system. The four components of marketing mix are also called marketing mix variables or controllable as they emanate from within the enterprise and marketing manger can use them freely as per his desire or need of the situation.

DEFINITION OF MARKETING MIX

According to William Stanton, Marketing mix is the term used to describe the combination of the four inputs which constitute the core of the companys marketing system: the product, the price, the promotional activates, and the distribution system. According to Philip kotler ,Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market .

FEATURES OF MARKETING MIX

Marketing mix is the combination of four basic marketing variables namely, product, price, promotion, place. Marketing mix aims at achieving marketing target in terms of sales, profit and consumer satisfaction. Marketing mix is the marketing mangers instrument for attainment of marketing objectives. Marketing mix is a flexible combination of variables. So, it is necessary to adjust the variables in the marketing mix from time to time per the changes in the marketing environment. A marketing manager has to function as mixer of marketing ingredient and has to achieve desired result through skillful combination of four Ps. He needs maturity, imagination and intelligence for appropriate blending of the variables. The main focus of marketing mix is the consumer. His satisfaction and support are important. Marketing mix variables are interrelated. Decisions in one area affect the action in the other areas. An integrated approach is needed while making changes in the marketing variables. The concept of marketing mix is applicable to business as well as to nonprofit making organizations such as clubs and associations. Marketing mix is a consumer oriented activity as its purpose is the satisfaction and pleasure of consumers.

7PS OF MARKETING MIX

PRODUCT
A product is seen as an item that satisfies what a consumer demand. It is a tangible good or an intangible service. For example good will for intangible. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move. The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies.

PRICE
The amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix. When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account.

PROMOTION
Promotion mix includes advertising, publicity, sales promotion, word of mouth promotion, personal selling and telemarketing. Each of these services needs to be applied in different degree. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above).

PLACE
The place where your product or service is actually sold. Develop the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales. You can sell your product in many different places. Some companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Some sell at trade shows or in retail establishments. Some sell in joint ventures with other similar products or services. Some companies use manufacturers' representatives or distributors. Many companies use a combination of one or more of these methods. In each case, the entrepreneur must make the right choice about the very best location or place for the customer to receive essential buying information on the product or service needed to make a buying decision. What is yours? In what way should you change it? Where else could you offer your products or services?

PROCESS
Flow of activities: all the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations..

Standardization: banks have got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time.

Customization: There are specialty counters at each branch to deal with c customers of a particular scheme. Besides this the customers can select their deposit period. Simplicity: in banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires.

PHYSICAL EVIDENCE
The physical evidences include signage, reports, punch lines, other tangibles, employees dress code etc. The companys financial reports are issued to the customers to emphasis or credibility. Even some of the banks follow a dress code for their internal customers. This helps the customers to feel the ease and comfort

Signage(sign or logo): each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity. Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services.

Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

Banking marketing consists of identifying the most profitable markets now and in future, assessing the present and future needs of customers, setting business development goals, making plans-all in the context of changing environment

PEOPLE
The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together. In his best-selling book, Good to Great, Jim Collins discovered the most important factor applied by the best companies was that they first of all "got the right people on the bus, and the wrong people off the bus." Once these companies had hired the right people, the second step was to "get the right people in the right seats on the bus." To be successful in business, you must develop the habit of thinking in terms of exactly who is going to carry out each task and responsibility. In many cases, it's not possible to move forward until you can attract and put the right person into the right position. Many of the best business plans ever developed sit on shelves today because the [people who created them] could not find the key people who could execute those plans.

PRACTICAL PART
QUESTIONS:
1. Your fund based product and fee based product? 2. What are the products provided by your bank to different sector? 3. Different price charged by your bank to different product? 4. How you promote your product through advertisement and newspapers? 5. How you promote your product or services through advertisement? 6. Decision taken under selection of place? 7. Customer relationship that is front office and back office? 8. Your banks working process? 9. Performance appraisal in your bank? 10. Your banking environment?

7PS OF SARSWAT BANK Product and services

Any Branch Banking - Banking from any Branch of the Bank irrespective of the Branch where the customer is having account. Balance Enquiry - customer can make enquiries about the balance; debit or credit entries in his/her account. Cash Withdrawal the customer can withdraw cash up to the stipulated limit from any branch irrespective of his/her account in the branch. Cheque / Cash Deposits - To deposit cash / cheques into account of some other person who has account with any of the branch of the bank.

Statement & Passbook printing Cheque Status enquiry Fund Transfer the customer can make the fund transfer instantly from one account to another account in the Bank (his / her own or third party) EMI of Loan & RD installments can be paid Cash withdrawal from Any ATMs of our Bank Mobile Banking (SMS Alerts)

Personalized Cheque Book facilities. Data Centre: The Bank has setup its own Data Centre at Vasai (W), Thane where all the branches are connected to a centralized database. ATM- With a view to give 24 hrs service to the customer the bank installed ATMs at Vasai, Virar, Navghar, Saphale, Nallasopara, Borivali, Thane, Naringi, Mira Road and Boisar Branches and all the ATMs are inter-connected, so that the customers can withdraw money from any of its branches.

Cheque Book Printing: We are one of the few co-operative banks, who started the personalized cheque book printing to its customers. Fund based & fee based product includes: Saving account, salary account, current account, fixed deposit account, demate account, safe deposit lockers, loans ,credit cards, debit cards, ATM, sms banking, internet, banking, transfer and receive of fund through RTGS and NEFT.

PRICE
Types of loans and rate of interest No. TYPES ADVANCES OF ADVANCE TYPES OF Proposed Rate of interest rate.) w.e.f.1.12.2012 1% more 2% more 13.00 12.00 14.00

Agriculture Loan Advances against our Bank's Third Party FDR Advances against Government Securities

2 3 4

Gold Loan Consumer/ Surety Loans Commercial Loans Up to Rs 2.00 lacs Above Rs. 2.00 lacs & Up to Rs. 5.00 lacs Above Rs. 5.00 lacs & Up to Rs. 10.00 lacs Above Rs. 10.00 Lacs

12.00 12.25 12.50 13.50

Mortgage Loan Above Rs. 0.50 lacs to Rs. 2.00 lacs Above Rs. 2.00 lacs to Rs. 5.00 lacs Above Rs. 5.00 lacs Above Rs. 5.00 lacs to Rs. 10.00 lacs
12.00 12.50 13.50

Agricultural Loans * Up to Rs 2.00 lacs Above Rs 2.00 lacs Upto Rs.25.00 lacs Above Rs. 25.00 lacs
11.50 12.00 -

Education Loan where candidates has marks 60% and above All other candidates
11.00 12.00

Housing Loans Up to Rs. 10.00 lacs Above Rs. 10.00 lacs Up to Rs. 15.00 lacs Above Rs. 15.00 lacs
11.00 11.50

Vehicle Loans a) Four Wheelar New Vehicle (Personal) Repayment Upto 3 years Repayment Above 3 years & Upto 5 years New Vehicle (Personal) above Rs. 10.00 Lakhs Old Vehicle (Personal) upto 3 years only New Vehicle (Commercial) Old Vehicle (Commercial) Fleet Owners (New Vehicle-commercial) b) Two Wheeler
15.00 11.50 12.00 14.00 13.50 14.00 14.00

10 11 12

Loans to Builders & Contractors Travel Loan/Suhana Safar Professionals/Hello Doctor ( Secured) Up to Rs. 10.00 lacs Above Rs. 10.00 lacs Above Rs. 25.00 lacs

14.50 12.00

12.00 12.50 -

Notes: 1. In case the limit is sanctioned to SME Units interest rate will be 0.50% less than applicable rate of interest on Commercial Loans and Advances. 2. 3. In case of Consortium Advance Bank will match ROI as per Lead Bank. In case of take over of loan either Bank will match rate of interest or charge 1.00% less, depending upon the credit rating of the customer and the latest finacial indicators including CIBIL Ratings. 4. Bank will do the credit rating of the customer depending upon the financial indicators and other aspect as per the credit rating policy. 5. Revision in Rate of interest Bank shall be applicable to existing Cash Credit and Overdraft Limit only, However same shall be applicable to all new Loans and Advances. 6. In case of Mortgage loans to individuals maximum loan amount shall be Rs.25.00 Lakhs.

PRICES CHARGED BY BANK

Sr. No 1. 2. 3. 4. Particulars Cheque Book Charges -SB Charges No charges for first cheque book of 30 leaves. For issue of 2nd cheque book onwards Rs.2/- per leaf + STP Charges Rs.3/- per cheque leaf + STP

Cheque Book CD/CC/OD Issue of Duplicate Pass Book Rs.50/- + STP charges Duplicate Statement: Rs.50/- per page + STP Current Account

Rs.50/- per certificate + STP

5. 6. 7.

Balance Certificate Issue of Duplicate Term Deposit Rs.30/- per receipt/Share Certificate + STP Receipt /Share Certificate Unused Cheque leaves Charges Rs.2/- per leaf + STP at the time of closure of A/c Stop Payment : Rs.100/- per cheque + STP for SB A/c Stop Payment charges are to be Maximum Rs.1,000/- + STP. recovered at the time of accepting STOP PAYMENT Rs.200/-per cheque + STP for CD/CC/OD instructions only; Maximum Rs.2,000/- + STP. Note: - Such cheques, if presented is to be returned by writing PAYMENT STOPPED BY DRAWER on the face of the cheque.

8.

Cheque return charges : A) Inward Return:

B) Outward Return Cheques: (SB / CD / CC / OD)

i.S.B. Rs.150/- per cheque (+2 days interest @ 14.50 %) + STP ii.CD/CC/OD Rs.200/- per cheque (+2 days interest @14.50%) + STP i.SB Rs.150/per cheque ii.CD Rs.200/per cheque iii.CC/OD Rs.200/- per cheque + STP + + STP STP

C) Outstation Cheques: D) ECS return (Debit)

Clearing

i.S/B Rs.150/per cheque + STP. ii.CD / CC / OD Rs.200/- per cheque plus Postage+ STP. i.SB Rs.50/per instance+ ii.CD/CC/OD Rs.200/- per instance + STP STP

E)High Value (Inward / Outward)

Return

i.Rs.300/- per instrument + 2 days interest @14.50% p.a.+ STP

9.

Standing instruction for outward Rs.50/- per S.I+ STP / Third party payment

10.

11. 12.

Default of standing instruction for 2 consecutive months for non availability of funds for revival of such instruction Ledger Folio Charges: Current A/c: Minimum Balance to be maintained in SB/CD A/cs: SB A/c

Rs.50/- per S.I+ STP

Rs.20/- + STP per folio of statement OR Rs. 500 / per half year whichever is higher Without cheque book Rs.100/With Cheque Book Rs.500/With cheque book Rs.3000/-

13.

C/D A/c Charges for Non maintenance of Rs.25/- per month+ STP Minimum Balance: Saving A/c without cheque book Rs.75/- per month+ STP Saving A/c with cheque book Current A/c A/c closure (within 1 year) Saving A/c Rs.200/- per month+ STP

14.

charges

Without cheque book facility Rs.100/- + STP With cheque Rs. 125/- + STP book facility

15.

16.

CD/CC/OD Rs.500/-+ STP Service charges for inoperative Rs.50/- p.a. for S/B A/c + STP accounts Rs.100/- p.a. for C/D A/c + STP Accounts 2 year & above 0.10% of amount Solvency Certificate Charges Minimum Rs.500/-+ STP Maximum Rs.5,000/-+ STP Rs.100/- + other Banks charges+ STP Rs.50/- + other Banks charges+ STP

17.

Duplicate Drafts/Cancellation For all Duplicate Drafts

18. 19.

For Revalidation Drafts Customers Signature/Photo Rs.50/per verification for verification charges Rs.100/- per verification for C/D + STP Duplicate Interest Certificate Rs.50/- per certificate+ STP /Certificate for claiming

S/B+

STP

20.

21.

exemption for repayment of interest/principle amount towards housing loan For issuing photocopy of the paid cheque / record copy of the cheques Safe Deposit Locker Annual Charges: A) Small A B) Medium B C) Big C D) Extra Big E) Special Size

Rs.100/- above 1 year record per instrument + STP. Rs.50/- below 1 year record per instrument + STP. For Borivali/ Bhayander/Mira Road Branches A) Rs.750/- p.a.+ STP B) Rs.1,500/- p.a.+ STP C) Rs.3,000/- p.a.+ STP D) Rs.3,500/- p.a.+ STP E) Rs.4,000/- p.a.+ STP For other Branches Thane/

A) Rs.600/- p.a.+ STP B) Rs.1,200/- p.a.+ STP C) Rs.1,800/- p.a.+ STP D) Rs.2,500/- p.a.+ STP E) Rs.3,000/- p.a.+ STP Break Open of Locker: a)Actual cost + Rs.500/+ STP b) Actual cost + Rs.500/- + STP ( to be recovered when a) Due to loss of key by customer comes for locker operation) customer b) Due to non-payment of locker rent Issue of loose cheque leaves Rs.50/- per cheque leaf SB/CC/CD/OD Pay Order/HDFC at par cheque For Banks customer Rs.3/- per thousand+ STP charges:

22.

23. 24.

Minimum Rs.25/-+ STP Maximum Rs.2,000/-+ STP For non-customers Rs.5/- per thousand + STP Minimum Rs.50/-+ STP Maximum Rs.5,000/-+ STP Rs.50+ STP Rs.5/+ STP Minimum Rs.50/Maximum Rs. 5000/Special Note:a) Postage/Courier Charges of Rs.50 not to be recovered from SB account holder. However, Rs.150/- to be recovered from the SB account holder if the amount of cheque is above Rs.1,00,000/b) Postage/Courier Charges of Rs.50 are to be recovered from all CA/CC/OD A/c holders. HDFC/Nationalised / Bank / Issuing Bank charge+ Rs.25/-+ STP Commercial Bank Demand Draft/ At par Cheque Charges Pay order/HDFC cheque Rs.100/-+ STP cancellation Duplicate ATM Card due to loss Rs.100/- per card+ STP or customers fault Loss of Token Rs.100/- per token+ STP Fate enquiry/confirmation Rs.200/- per instrument per lac+ STP charges up to Rs.10.00 lacs Rs.300/- per instrument per lac+ STP Above Rs.10.00 lacs RTGS/NEFT/ECS transactions: Free, no charge to be levied. (a)Inward Transactions (b)Outward transactions (i) RTGS Rs.25/- per transaction+ STP Rs.50/- per transaction+ STP per thousand or part thereof

25.

Outstation Cheques for Clearing:

26.

27. 28. 29. 30.

31.

Rs.1 to Rs. Rs.5 lakh and above (ii) NEFT

lakh Rs.5 per transaction+ STP Rs. 25 per transaction+ STP

32.

Up to Rs. 1 lakh Rs. 1 lakh and above Commission on issuance of 0.50% p.a. of the Bank Guarantee/ Letter of Minimum Rs.200/- +STP Credit: i) Fully Deposit secured by 100%

guarantee

amount

STP

0.50% p.a. on the amount fully secured by deposit & 1% p.a. on the amount secured by collateral security. Minimum Rs.500/- +STP

33.

34.

ii) Partly Secured by 50% Deposit & 50% other Collateral Security Stock statement non submission Rs.100/per lac per month charges/Delay in submission Min.Rs.100/-+ STP Max.Rs.500/-+ STP Inspection of Stock / Book-debts Rs.75/- limit upto Rs.1.00 lac + actual expenses incurred+ STP / Factory plant & machinery, Rs.150/- limit between Rs.1.00 lac to Rs.5.00 lacs + actual vehicle, etc. expenses incurred+ STP Rs.250/- limit above Rs.5.00 lac + actual expenses incurred+ STP Note: Charges are to be recovered manually. Rs.50/- + STP per form A) Rs.100/-+ STP B) Rs.200/-+ STP

35. 36.

Loan Application: Loan Notice Charges A) 1st Notice (Borrower)

B) 2nd Notice (Borrower with C) Rs.200/-+ STP Guarantors) D) Rs.200/-+ STP C) Personal Visit E) Rs.300/-+ STP D) Recovery Officer/Branch

Managers visit E) Head Office visit GM/AGM F) Attachment charges u/s101

F) Rs.500/-+ STP G) Actual + Rs.500/-+ Note: Charges to be recovered manually. STP

37.

G) Legal Court Case Outstation cheques for collection Free of charge through National Clearing/ Rs.100/- per cheque+ STP Speed Clearing: Commission on Upto Rs.1.00 lakh S/B A/c CD/CC/OD Above Rs.1.00 lakh SB/CD/CC/OD Special Note: a) Postage/Courier Charges of Rs.50 not to be recovered from SB account. However, Rs.150/- to be recovered from the SB account holder if the amount of cheque is above Rs.1,00,000/b) However, Postage/Courier Charges of Rs.50 are to be recovered from CA/CC/OD A/c holder. Note: Charges to be recovered manually. other Our charges as per Table No.32 + other Bank charges. OBC Rs.150/- per cheque+ STP

38.

39.

RTGS/NEFT through Bank: If situation arises Inward Cheques / Bills for Commission Rs.5/- per thousand OR Part thereof. Collection Minimum Rs.50/- Maximum Rs.5000/-

40.

41. 42.

Special Note: Postage/Courier charges of Rs.50/- to be recovered extra. Creation of Equitable Mortgage / 0.05% of loan amount Maximum Rs.5000/-+STP Registered Mortgage Note:- (In case of Equitable Mortgage charges to be shared equally by Borivali or Thane Branch & rest of the other branches) Prepayment Charges Nil Fixing Banks name plate on Rs.250/- per plate+ STP mortgage property / hypothecated machinery / vehicle

All charges and rate of interest fixed by management of bank and head office No. Types of deposits % p.a to genral % p.a to senior

citizen 1 2 Savings Bank Deposits Term Deposits 15 Days to 45 Days 46 Days to 90 Days 91 Days to 180 Days 181 Days to 364 Days 1 year upto3 years 4% 5% 6.50% 7% 8.50% 8.50% 8.75% 4% 5.50% 7% 7.50% 9.50% 95 9.255

Notes Additional 0.50% rate of interest will be applicable to the following categories only : 1. 2. 3. Co.op Societies Registered under Mah.Co.op Societies Act`1960. For fresh Single Deposit of Rs. 15.00 lacs and above Only one option is applicable from above 3 options ( inclusive of Sr. Citizen )

for additional rate of interest of 0.50%

PROMOTION
In this bank promotion is done through television ( vasai cable), news papers like lokmat, Maharashtra times, or local news papers like vasai virar. And they do promotion in two ways: i.e. personal promotion and impersonal promotion. Personal promotion include: person to person, person to persons, persons to persons and conferences. Impersonal promotion include: advertising, publicity.

PLACE
The location of this bank is proper because bank is located in prime area of vasai i.e. commercial area of vasai. Also nearer to residential area and railway station and police station.

PROCESS
This bank uses generic softwares for all its banking transactions the main software used for banking process is INFRASOFT. Performance appraisal is done on the basis of employees ability to perform the entire task very well. Promotion and demotion is given after looking the employees performance.

PEOPLE
This bank has a special team which includes back office and front office that manages the customer relationship management. This team also interacts with the customers and manages all bank related issues.

PHYSICAL EVIDENCE
This bank has a attractive punch line which states YOUR GROWTH IS OUR AIM. It also has a attractive logo with its name. Also has a decent staff which has great communication skills and they turn potential customer into real customer. They have attractive schemes and facilities with grate interest rate which draws the customers.

CONCLUSION

Thus it has a great facility and services which attract the customer, also has a good staff which provides with all the requirements of the customers. It has great physical evidence and owns a huge share in regional market. Also gives all the securities related to banking activities just like any other professional bank.

BIBLIOGRAPHY
http://vasaivikasbank.com/sms-banking.html http://vasaivikasbank.com/aboutus.html http://vasaivikasbank.com/aboutus.html http://vasaivikasbank.com/deposits.html http://vasaivikasbank.com/rtgs-neft.html http://vasaivikasbank.com/charges.html http://vasaivikasbank.com/our-vision.html