MARKETING OF BANKING SERVICES.

1. Introduction.

Bank Marketing. Why Bank Marketing. Features of Bank Marketing. Services. Characteristics of Services. Difference between Product and Services.

. Marketing. Features. Marketing of !oo"s and !echni#ues. Marketing Mi$ in Banking. %rowth of Service Market. Marketing &''roach in Banks. (. )ustification for Marketing the Banking Services. Satisfaction of Custo*er +eeds. Bank Marketing in the Indian Pers'ective. ,. &rtic"es. Su**ary Conc"usion.

Shya*-i Mehrotra. & Marketing 'erson without ade#uate *arketing ski""s wi"" destroy sa"es instead of increasing it.Marketing of financia" 'roducts need not on"y se""ing ski""s. but ade#uate know"edge about banking wor"d a"so. & good sa"es'erson re#uire right soft ski""s "ike 'ositive attitude. good co**unication etc. /+othing ha''ens in a co*'any un"ess a 'roduct or services is so"d. 0verything e"se is cost.1
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Introduction.
!he ongoing 'rocess of econo*ic refor*s has co*'"ete"y changed the o'erationa" environ*ent for the who"e banking industry in the country. Banks are now re#uired to co'e with stiff co*'etition in business and a"so the co*'"e$ regu"atory nor*s regarding ca'ita" ade#uacy and 'rovisioning. Banks are forced to ado't various *arketing techni#ues and a''roaches. !hus. *arketing has beco*e i*'erative for a"" banks inc"uding those in the 'ub"ic sector. Marketing in banks can be stated as a new 'heno*enon that is sha'ing we"" over the 'ast one decade. Pub"ic sector bank hard"y considered *arketing as a too" for business. !he co*'etition. deregu"ation that fo""owed the refor*s has changed the environ*ent for banks. where *arketing has occu'ied the '"ace in the business of banks. !oday. *arketing in the banking industry is characteri2ed by *any innovations in 'roducts and services. use of advanced techno"ogy in 'roduct design. u' gradation of de"ivery syste*. advertising and sa"es 'ro*otion activities. whether in 'ub"ic sector or 'rivate sector. Banks now have a fir* that *arketing strategies a"one can brighten the future of banking business. Marketing in banks has beco*e synony*ous with custo*er and banks are found engaged in severa" activities of discovering. creating and satisfaction custo*er needs. Indian banking is at cross roads today. With the deregu"ation and "ibera"i2ation 'rocess in fu"" swing. the conse#uent 'o"icy changes introduced in the Indian financia" syste* in genera" and banking in 'articu"ar are effecting un'recedented changes in its functioning. With the e*erging changes did s'ring u' new cha""enges of co**ercia" viabi"ity. cost effectiveness. effective *arketing strategy. etc.Market oriented 'o"icies a"so gave birth to new '"ayers "ike foreign and 'rivate sector banks and subsidiaries offering varied high tech and cost effective Service. !here was an abso"ute shift fro* se""ers into buyers3 *arket. estab"ishing the 4consu*er3 as the key factor in the *arket. !he dictu* /as the bank e$ists because of its custo*ers. has beco*e *ore 'ronounced and re"evant in the 'resent conte$t1. !hus. *arketing constitutes the key strategy for banks to retain good custo*ers and a"so antici'ate their future de*ands.

Bank marketing.
Deryk Weyer of Barc"ays Bank ca"" it /a 'rocess. consisting of identifying the *ost 'rofitab"e *arkets now and in future5 assessing the 'resent and the future needs of the custo*ers5 setting business deve"o'*ent goa"s and *aking '"ans to *eet the*5 and *anaging various services and 'ro*oting the* to achieve the '"ans 6 a"" in the conte$t of a changing environ*ent in the *arket1.

W ! Bank Marketing"
A#arene$$ among Cu$tomer$ Modern techno"ogy has *ade custo*ers aware of the deve"o'*ents in the econo*ic environ*ent. which inc"udes the financia" syste*. Financia" needs of the custo*ers have grown *u"tifo"d into various for*s "ike #uick cash accessibi"ity. *oney transfer. asset security. increased return on sur'"us funds. financia" advice. deferred 'ay*ents etc. With a wide network of branches. even in a dissi*i"ar banking scenario. custo*ers e$'ect the banks to offer a *ore and better service to *atch their de*ands and this has co*'e""ed banks to take u' *arketing in right earnest. %ua&it! a$ a Ke! Factor With the o'ening u' of the econo*y. fast change has been e$'erienced in every activity. and banking has been no e$e*'tion. 7ua"ity is the watchword in the co*'etitive wor"d. which is *arket driven and banks have had to face u' to this e*erging scenario. In fact. it *ay not be out of '"ace to reiterate that #ua"ity wi"" in future be the so"e deter*inant of successfu" banking ventures and *arketing has to focus on this *ost crucia" need of the hour. Gro#ing Com'etition Increased co*'"etion is being faced by the Indian banking industry fro* within the syste* with other agencies both. "oca" and foreign. offering va"ue added services. Co*'etition is no *ore confined to resource *obi"i2ation but a"so to "ending and other areas of banking activity. !he foreign co**ercia" bank with their su'erior techno"ogy. s'eed in o'erations and i*aginative 'ositioning of their services has a"so 'rovided the necessary i*'etus to the Indian banks to innovate and co*'"ete in the *arket '"ace.

Tec no&ogica& Ad(ance$ !echno"ogica" innovation has resu"ted in financia" 'roduct deve"o'*ent es'ecia""y in the internationa" and invest*ent banking areas. !he western e$'erience has de*onstrated that techno"ogy has not on"y *ade e$ecution of work faster but has a"so resu"ted in greater avai"abi"ity of *an'ower for custo*er Contact.

Marketing A''roac in Bank$.

With the need for *arketing in banks having evo"ved out of the changing environ*ent and constant inter'"ay of various interde'endent factors. the i*'ortance of a syste*atic a''roach to *arketing cannot be overstressed. !he a''"ication of a *arketing a''roach in banks wi"" therefore invo"ve8 a. Identifying custo*ers3 financia" needs and wants5 b. Deve"o'ing a''ro'riate banking services to *eet these needs5 c. Pricing for the services so deve"o'ed5 d. Setting u' suitab"e outse""s 9 banks branches5 e. &dvertising to 'ro*ote the services to the e$isting as we"" as 'ros'ective custo*ers.

Feature$ o) Bank Marketing.

Banking 'roduct cannot be seen or touched "ike *anufactured 'roducts :intangibi"ity; In *arketing banking 'roducts. the 'roduct and the se""er are in se'arab"e5 they together define the banking 'roduct :inse'arabi"ity; Banking 'roducts are 'roducts and de"ivered at the sa*e ti*e5 they cannot be stored and ins'ected before de"ivering3 :'erishabi"ity; Standardi2ation of banking 'roduct is difficu"t :variabi"ity;

Conc&u$ion
It is sub*itted that the banking syste* is on the thresho"d of a *o*entous era of change and continuity in growth and deve"o'*ent. of individua" custo*er needs and cor'orate 'ractices. techno"ogy and co*'etitions. !he ro"e of *arketing in the banking industry continues to change. For *any years the 'ri*ary focus of bank *arketing was 'ub"ic returns. !hen the focus shifted to advertising and sa"es 'ro*otion. !hat was fo""owed by a focus on the deve"o'*ent of a sa"es cu"ture. +ow the focus is on the individua" custo*er *eeting and even antici'ating his or needs and deve"o'ing trusting. "ong<ter* re"ationshi's by de"ivering high #ua"ity 'ersona"i2ed service. Marketing both as a 'hi"oso'hy and an activity5 is e$'ected to contribute i**ense"y to the rea"i2ation of goa"s both i**ediate and future. &"" though a"" the e"e*ents of the *arketing conce't 6 custo*er satisfaction. 'rofit integrated fra*ework and socia" res'onsibi"ity *ust receive the greatest e*'hasis in the years a head. !hey *ust be guided by the dictu* of Mahat*a %andhi. /& custo*er is the *ost i*'ortant visitor in our 'ro*ises. =e is *ost de'endent on us. We are de'ending on hi*. =e is not an interru'tion on our work. =e is the 'ur'ose of it. =e is not an outsider on our business. =e is 'art of it. We are not doing hi* a favour by serving hi*. =e is doing as a favour by giving as an o''ortunity1.

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*RIMAR+ ,ATA.
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at are t e ne# 'roduct$ !ou #ou&d -e &aunc ing" So*e of the new 'roducts we are "aunching are8 wave guide for co**unication a''"ication5 wave guide for sate""ite a''"ication5 *iniature 'neu*atic cy"inder barre"s5 and refrigeration and air conditioning condenser tubes.

India i$ a uge countr!. .o# do !ou $er(ice t e a&& India market" We have 1, Business Partners :agents; a"" over India. We invite a"" our Business Partners once in a year to our '"ant to interact with 'roduction and *arketing 'eo'"e and brief the* about deve"o'*ent taken '"ace during the year.

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What is the *arket si2e of D!= service in India? India has 1(.@A *i""ion Direct to =o*e subscribers as of March @@A according to "inkB1 which has !C&I as reference. !C&I :!he !e"eco**unications Cegu"atory &uthority of India; 'ress re"ease :DinkB ; see*s to be broken. it shou"d give you the co*'any wise nu*bers e"se you can check the cor'orate site9'ress re"eases of each 'rovider to co*e u' with a ba"" 'ark figure.

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at can !ou do t at !our com'etitor$ cannot"

!his is good to know because it s'eaks to the defensibi"ity and va"ue of the co*'any. Dife is cha""enging for a co*'any that has undistinguished 'roducts and services. !his doesn3t *ean the co*'any wi"" fai". but it has to be /s'ecia"1 in so*e way soon.
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W o are !our in(e$tor$" =o'efu""y. there are one or two we""<known venture ca'ita"ists. =owever. a 'erfect"y acce'tab"eEand 'erha's even betterEanswer is that there are no investors other than the founders. and the '"an is to

bootstra' the co*'any as "ong as 'ossib"e. !hese days revenue is the best source of ca'ita".
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o i$ on !our -oard o) director$"

If there are outside investors. they are "ike"y to be on the board. !hat3s coo". But you shou"d beware of boards that are on"y the founders and their fa*i"y and friends. Gou need at "east one /adu"t1 on board who can be the hardass bu"" shiitak detector.
H. A$$ume

t at !ou a(e /0 )or marketing1 o# #ou&d !ou market t e

'roduct" &ny bo2o can *arket a 'roduct with a *i""ion do""ars. What you want is a tea* that can :a; *ake a great 'roduct that *arkets itse"f and :b; cata"y2e 'eo'"e to be"ieve in the 'roduct enough to *arket it for you. If the answer you get is. /When we3re ready to shi'. we3"" raise *ore *oney to *arket it.1 you shou"d run for the door. 1>. Pro*otion in Marketing *eansE :&; 'assing an e$a*ination :B; e"evation fro* one grade to another :C; se""ing the 'roducts through various *eans :D; se""ing the 'roduct in s'ecific areas :0; +one of these &ns 8 :C;

1. Market 0$'ansion *eansE :&; hiring *ore staff :B; firing *ore staff :C; buying *ore 'roducts :D; buying *ore co*'anies :0; +one of these &ns 8 :0;

(. 0ffective *arketing he"'s inE :&; deve"o'ing new 'roducts :B; creating a co*'etitive environ*ent :C; bui"ding de*and for 'roducts :D; &"" of these :0; +one of these &ns 8 :D; F. De"ivery Channe" *eansE :&; *aternity wards :B; handing over the 'roducts to the buyers :C; '"aces where 'roducts are *ade avai"ab"e to the buyers :D; &"" of these :0; +one of these &ns 8 :C;

A. Innovation *eanE :&; Product Designing :B; +ew ideas :C; I*'u"se :D; Both :&; and :B; :0; +one of these &ns 8 :D; (@. Ine of the fo""owing is a target grou' for the *arketing of educationa" "oan. :&; &"" the custo*ers :B; Students :C; In"y 'oor students :D; Students having 'ro*ising educationa" track record :0; &"" of these &ns 8 :B; (1. Service after sa"e is not the function ofE :&; Marketing staff :B; Se""er :C; Director of the co*'any :D; 0*'"oyees of the co*'any :0; &"" of the above are wrong
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&ns 8 :&; ( . If done throughKKKthe rura" *arketing wou"d be *ore effective. :&; fairs :B; vi""age fairs :C; door to door ca*'aign :D; &"" of these :0; +one of these &ns 8 :B; ((. Market Survey *eansE :&; Market Cesearch :B; Market P"anning :C; Marketing Strategies :D; Market Monitering :0; &"" of these &ns 8 :&; (,. KKKcan be done through digita" Banking? :&; Mobi"e 'hone :B; Internet :C; !e"e'hone :D; &"" of these :0; +one of these &ns8 :&;

(>. & good se""er shou"d have the fo""owing #ua"ity9#ua"ities? :&; Devotion to the work :B; Sub*issive :C; Sy*'athy :D; &"" of these :0; +one of these &ns8 :D; (F. !he rura" *arketing is not re#uired becauseE :&; rura" 'eo'"e do not understand *arketing :B; its not 'ractica" fro* the cost 'oint of view :C; it is sheer wastage of ti*e :D; &"" are wrong
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:0; &"" are correct &ns 8 :D; (H. P"anned<cost service *eansE :&; Cost"y 'roducts :B; 0$tra 'rofit on the sa*e cost :C; 0$tra work by se""er :D; &"" of these :0; +one of these &ns 8 :B; (A. !he ai* of successfu" *arketing isE :&; to increase the sa"e :B; to increase the 'rofit :C; to increase the out'ut of se""ers :D; &"" of these :0; +one of these &ns 8 :D;

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