Marketing Mix in Banks

IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY LIST OF FIGURES S.NO.
1 2 3 4 FIGURE PIE CHART FOR BANKS FROM WHICH SERVICE AVAILED PIE CHART FOR KIND OF SERVICE AVAILED BAR GRAPH FOR EXTENT TO WHICH FINANCIAL REQUIREMENT MET PIE CHART FOR WHETHER THE PUBLIC SECTOR ERVICES HAVE IMPROVED BAR GRAPH FOR WHETHER THE SERVICE CHARGES 6 7 ! " 1$ 11 12 13 14 ARE APPROPRIATE PIE CHART FOR THE BEST MEDIA FOR PROMOTION PIE CHART FOR WHETHER THE PROMOTIONAL SCHEMES APPROPRIATE GRAPH FOR RECALL OF ADVERTISEMENT BAR GRAPH FOR MEANS B# WHICH BANKING DONE BAR GRAPH FOR WHETHER THE BANKS BRANCHES ARE WIDE SPREAD BAR GRAPF FOR THE EXTENT TO WHICH TECHNOLOG# HAS IMPROVED SERVICES BAR GRAPH FOR ATTITUDE TOWARDS AMBIENCE BAR GRAPH FOR ATTITUDE OF STAFF BAR GRAPH FOR WHETHER BANK PROCESSE EAS# PAGE NO. 66 66 67 67 6! 6! 6" 6" 7$ 7$ 71 71 72 72
CENTER OF INTERNATIONAL BUSINESS% ABS
IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY
LIST OF TABLES
S.NO. 1 2 3 4
TABLE VITAL STATS FOR PRIVATE SECTOR BANKS COMPARISION OF PUBLIC% PRIVATE AND FOREIGN BANKS SHAREHOLDER&S ' HELD IN SBI PRICES FOR CITIBANK&S SERVIVES
PAGE NO. 6 1 43 61
EXECUTIVE SUMMAR#
The banking industry is an integral part of any society. The key areas that have impacted on the financial services industry include regulation and legislation in various forms. The 1986 Financial Services Act as brought about to regulate the industry and offer consumer some protection. !ith the entry of ne private and foreign banks in the country already having numerous big and small public sector players" the competition has doubt increased. The competitive environment is continuously changing and is also under increasing pressure due to the effect of the economic recession" customer spending and confidence. The dynamic nature of banking industry makes environmental monitoring and analysis essential. #elighting the customer is the bu$$ ord for the service industry today. To fulfill this the banks should have an e%cellent marketing mi%. The marketing i% for services is different then the mi% for product. The marketing mi% is the organi$ation&s overall offer" or value" to the customer. 'The basic marketing mi% is often nicknamed (The )*s( +product" place,distribution" pricing" promotion-. these are elements in the marketers armory / aspects that can be manipulated to keep ahead of the competition' #ibb 0 Simkin" 199)1. The marketing mi% can be e%pressed in a more customer orientated ay as the ')2s'3 2ustomer 4alue 'product' benefits from the buyers& point of vie 2ost to the customer 'price' plus the customer&s costs / e.g. travel 2onvenience for the buyer e5uivalent to 'place',channels of distribution 2ommunication a t o/ ay dialogue / not 6ust 'promotion'. The marketing of services presents particular problems given characteristics such as3 Services cannot be touched or stocked. They are an e%perience. *roduction" consumption and distribution are simultaneous. '*roduction' staff is also the customer contact. 7uality is variable / and customers tend to use *rice as an indicator of 5uality 2ustomers are less easily convinced of reliability than ith a tangible product. To address the special difficulties of services marketing" 8 more '*s' can be added to the marketing mi%3 *eople Staff selection" motivation and particularly customer care training are critical. *hysical 9vidence The decor and ambience are very much part of the product offer / as are customer testimonials and celebrity endorsement. *rocess The efficiency of the process is hat provides the benefits for the customer. 9fficiency can be monitored by measurers of performance" e.g. based on satisfaction 5uestionnaires and 'mystery customer' surveys. For understanding marketing mi% in detail three famous banks ere considered for study3 :2:2: S;:
2itibank. All these three banks are undergoing drastic changes as far as marketing mi% goes. The information about the marketing mi% of these banks as collected from various primary and secondary sources. <nce the marketing mi% structure of these banks as ascertained it as necessary to understand the customer&s response to this mi% of various banks. A study of this as conducted by means of getting the 5uestionnaire filled by => customers of these banks. ;y means of the responses the gap bet een banks offering under marketing mi% desired by customers becomes clear. This gap level sho s the areas of problems on the basis of hich proper recommendation could be prepared.
INTRODUCTION TO PRESENT PROBLEM

:n ?anuary 1998 the guidelines for setting up private sector banks ere issued.
The banking sector has an uphill task considering the challenges it is facing. The gap bet een thinking and debating the solutions and the implementation of these is idening. This ill erode the viability and the economic value of the business. There are several challenges confronting the banking sector. These could be broadly classified into the deployment of funds in 5uality assets and management of revenues and costs. Another challenge is that :ndian banks ill have to embrace the sophisticated risk management practices. Thereafter" it ill have to address the risk based pricing and that of capital re5uirements of banks. This past ?une" the bank regulators on ;asel committee on ;anking supervision postponed the deadline for finali$ing a ne version of the 1988 2apital Accord" to provide the basis of determining the capital ade5uacy. Thus a lot of reforms are re5uired in the banking sector. The foreign and ne private sector banks are very mindful of the inefficiencies in the public sector banking. They manage their fee/based income far more aggressively :n 1969 :ndira @andhi nationali$ed 1) private sector banks. *rior to that most banks like 2entral ;ank o ned by the +Tatas-" Anited commercial ;ank +;irlas- and Syndicate ;ank +*ais- ere o ned and managed by businessmen. The only e%ception as the State ;ank of :ndia. Bno n as the :mperial ;ank of :ndia before 19==" this came under the purvie of the C;:. it had been nationali$ed in ?uly 19== under the S;: Act of 19==. The businessmen ho o ned these banks channelised most deposits into their o n companies" often ignoring the government&s focus areas" agriculture and small scale industries.
That neglect as one of the reasons for the nationalisation of banks. Another as @andhi&s desire to spread the banking habit in rural and semi/ urban areas.
T() )*)+,)-.) /0 -)1 2+3456) 75-89: The eight ne private banks that have emerged on the :ndian financial topography since 199) are clear outperformers in the other ise troubled sector. :n seven years" these banks have gro n to account for 6D of the total assets and 1>D of the total profits of banking industry. :t as the Earsimham committee report dated 1991 that envisaged a larger role for private sector banks. The C;: agreed" and in an effort to make the sector more efficient and competitive" it issued" in ?anuary 1998" the guidelines governing the entry of ne private banks/ a minimum paid/up capital of Cs.1>> cr. among others. This as the first time" follo ing the nationali$ation of banks in 1969that the C;: as issuing fresh banking licenses to the private sector. The E*;s have gro n not 6ust organically" but also through mergers and ac5uisitions. F#F2 bank merged ith Times ;ank in an all stock deal valued at Cs. G>> cr. in Eov 1999" :2:2: bank ac5uired bank of Hadura in a stock s ap deal in #ecG>>> to become the largest among the E*;s.
Vital stats for private sector banks:

Ee private sector bank Total income <perating income Eet profit *rovisions and contingencies Spread E*A +Dof net advancesTotal advances Figures in Cs. cr. 1998/99 )18>.)9 68).G8 89I.>= G8I.G8 I68.9) 6.G 1)>I> 1999/G>>> =)>I.)6 1G).8= =69.)G 6I).)8 11=1.I1 ).1 GG816 G>>>/G>>1 I=>).G6 1868.9I 689.)1 IG9.=6 168=.18 =.1 81)99
Harketing puts the customer at the center of the organi$ation. The organi$ations" hich
do so" reap the profits. :n the grocery sector" Sainsburys" and more recently Tesco" have a firm commitment to marketing" putting them amongst the most profitable retailers in the country. :t as said several years ago that Harks 0 Spencer did not even use the ord 'marketing'. They believed they placed their customer truly at the center and that their merchandising and customer definition strategy led them to be the most profitable retailer in 9urope. ;ut ho does this stack up today. :t seems that their customers changed. 2ustomer preferences and desires moved on and the company neglected to see ho their customer base as becoming more segmented ith differing tastes emerging. The company's products and services become seen as less (vibrant(" too staid" insufficiently dynamic. The ord got out 5uickly to customers that the merchandise range as dull" lifeless" and old. *rofitability levels and customer confidence dropped. The company that neglected its market research needed to regroup urgently and strengthen its marketing skills. Fo ever this re5uired profound management reorientation and development of marketing competencies. The famous retailer is no struggling to make up lost ground and to regain its ascendancy in a much more volatile market. The seven factors of marketing mi% of services are though easier to understand but re5uire a great deal of study. Since in banking services the products are not uni5ue and hence easier to imitate. Therefore an efficient" timely and cost efficient strategy to have the best marketing mi% is essential. Since the nature of the product can be easily altered in case of service a dynamic approach should be taken to ards other attributes of marketing mi%. Therefore to combat the challenges of increasing competition in banking industry environment" a detailed and thorough kno ledge about marketing mi% is a must. The follo ing dissertation report as made keeping this in mind. The report is hence titled as3 ;I- D)26( S6<=> O0 M5+8)63-, M3? O0 B5-83-, S)+43.)9@
OBAECTIVE
THE OBAECTIVE OF THIS DISSERTATION REPORT IS TO DO: AN INDEPTH STUD# OF MARKETING MIX OF BANKING SERVICES
INTRODUCTION TO BANKING INDUSTR#

B5-83-, S).6/+ 3- I-=35 The economic reforms initiated in the aftermath of the 1991 crisis have blo n inds of change in every segment of the economy. The banking industry" one of the supporting precursors to any rapidly gro ing economy" has undergone a period of considerable change since the 199>s. The three sectors of the banking industry namely public" private and foreign are the cornerstones of the changing banking industry. The :ndian banking sector has a massive geographical reach and the credit/ deposit +)8Dfigures speak volumes of the inherent strength of this industry. Antil recently" the lack of competitiveness vis/a/vis global standards" lo technological level in operations" over staffing" high E*As and lo levels of motivation had shackled the performance of the banking industry. The entry of the Ee *rivate Sector banks into the market changed the face of this industry. Eurturing collaborative ventures and paying strong emphasis on fore% services" the private banks are globalising :ndian banking business. Armed ith strategic alliances ith foreign collaborators" these banks have opened doors to ne positive ideas" concepts and products. These private banks have set a trend for universal banking. For instance @lobal Trust ;ank is the first :ndian ;ank to have e5uity participation from :nternational Finance 2orporation and Asian #evelopment ;ank. Similar trends are seen in 2enturion ;ank&s alliance ith Beppel ;ank" Singapore and F#F2 ;ank ith Eat!est Harkets" Anited Bingdom. Cecently :2:2: successfully completed its A#C issue on Ee Jork Stock 9%change +EJS9-. The intensification of competition in the banking industry as a result of gro ing private sector participation coupled ith gro ing customer needs has spurred innovation resulting in ne products and services. The private sector banks spearhead this (:nnovation Cevolution(. The ne private sector banks are targeting specific products and client group. Fo ever ith the advent of foreign players& participation" the private sector banks& position stands threatened. !ith emphasis on service and technology" it is for the first time that :ndian banks +mainly private- are challenging the foreign banks. These banks are making heavy use of technology to give good service at par ith foreign banks but to a much ider clientele. ;ranch si$e has been reduced considerably by using technology thus saving manpo er. This has resulted in an overall cost saving. :n addition the Any Time Honey +ATHfacility helps dra large customers to a branch. :2:2: ;ank has already launched #ata;ase Hanagement +referring to using the database of e%isting clients to generate more revenues-. The ne private banks are on an e%pansion phase and are no moving into semi/urban areas and satellite to ns to fulfill their branch e%pansion norms. :2:2: bank" F#F2 bank" @T;" :ndus:nd" ;<* and AT: ;ank have come out ith :*<s as per licensing re5uirement. The other three private sector banks are e%pected to come out ith their :*<s in ne%t fiscal. Their technological edge and product innovation has seen them gaining market share from the slo er" less efficient older banks. These banks have targeted non/fund based income as ma6or source of revenue" ith their level of contingent liabilities being much higher then their other counterparts vi$. *SA and old private sector banks. The ne private banks have been consistently gaining market shares from the
public sector banks. The ma6or beneficiary of this has been corporate clients ho are most sought after no . Among the list of top = ealth creator :2:2: stands 8rd ith H4A in Cs. 2r. as 888 and total assets in CS. 2r. as 19I8I hile S;: is 8rd in top = ealth destroyer ith H4A in Cs. 2r. as /G8G) and total assets in CS. 2r. as 816>1I. Among the top => ealth creator :2:2: stands 8rd hile S;: stands )8.
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E./-/*3. B5.8=+/2 5-= B5-83-, E-43+/-*)-6 The year under revie as marked by significant changes in the economic environment. There as some deceleration in @#* during G>>>/>1 due to sluggish gro th in industry" agriculture and services" though critical sectors like information technology and communications remained strong. @ro th in the industrial sector as affected by infrastructure bottlenecks" e%cess capacity in some sectors and an uncertain environment as investors assess the full impact of :ndia&s commitments to the !T<. 9%ports" hich had itnessed a turnaround during the previous year" surged ahead further and rose by 19.9D in G>>>/>1" substantially higher than the increase of 1>.9D recorded in 1999/ G>>>. Along ith buoyancy in the global economy" various e%port/promotion measures taken by the @overnment facilitated e%port gro th. :n contrast" the gro th in imports slo ed do n to >.GD in G>>>/>1" and the slo do n ould have been more pronounced but for the rise in oil imports reflecting hardening in international crude prices. A significant development during the year as the removal of 7uantitative Cestrictions +7Cs- in compliance ith !T< re5uirements. The 9%im *olicy also announced several measures to boost e%ports and position :ndian producers and e%porters to take advantage of liberali$ation in orld trade. :nflation +!*: year/on/year- remained lo at ).9D in G>>>/>1 against 6.8D in the previous year. <n the monetary front" there as ade5uate li5uidity in the economy during G>>>/>1 ith year/on/year gro th in broad money +H8- at 16.GD as against 1).6D in 1999/G>>>. The gro th as boosted by inflo s amounting to Cs.G="I11crore +AS# =.= billion- on account of the :ndia Hillennium #eposits. @ro th in aggregate deposits of all scheduled commercial banks at 1I.8D in G>>>/>1 as higher than 18.9D in the previous year. The gro th in credit at 16.8D in G>>>/>1 as" ho ever" lo er than 18.GD in 1999/G>>>" reflecting sluggishness in the real sector environment. #uring the same period" total resource flo to the commercial sector from banks i.e. non/food credit plus investment in bonds" debentures" shares" 2*s" etc." rose by 1=.GD against 1I.8D in the previous year. The strong gro th in food credit during the year supported large/scale food procurement operations of the @overnment. :n keeping ith its ob6ective of providing sufficient credit for gro th consistent ith price stability" C;: announced a number of measures to enhance li5uidity and reduce the cost of funds to banks. These included reduction in ;ank Cate" cut in 2CC" reduction in repo rate and cut in savings bank deposit rate. The Anion ;udget +G>>1/G>>G- also signaled a softer interest rate regime by announcing a cut in the interest rates on small savings schemes. #uring the year under revie " C;: announced several ne initiatives in banking sector reforms and development of the money market and government securities market. <ther measures include guidelines to put in place risk management systems in banks" move to ards unified group balance sheet" strengthening financial sector regulation and supervision" and steps to strengthen prudential norms and adopt global financial standards and codes. Financial sector deregulation has increased the opportunities for banks to augment revenues by tapping ne areas of business like insurance" asset management" etc. :n addition" banks no have greater fle%ibility in pricing their products. ;ut this has also s5uee$ed margins and intensified the competition for certain banking products. :n this milieu" only banks that sei$e the opportunities thro n up by technology become customer/centric and offer ne products that are cost/effective ill be able to stay ahead
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of the competition. The current slo do n in industrial sector" greater access for domestic corporate to markets including abroad" greater flo of F#: and F:: funds into the economy and in general greater volatility in e5uity markets abroad hich impact domestic markets are all developments hich highlight the need for strong risk management systems" credit appraisal and follo up as ell as prudent provisioning policies in banks. Keveraging its strengths in terms of brand name" market leadership" ide net ork of branches" technology and skills" the ;ank ill strive to scale ne heights in the coming year. This ill be supported by initiatives in insurance" lending to mid/corporates" personal banking and priority sector. !ith technology as a key driver" the ;ank ill be able to e%ploit opportunities in cross/selling products" meet customer re5uirements and enhance profitability and efficiency. The challenge" therefore" is to improve profitability" asset 5uality along ith strong capital backing to support asset e%pansion" and use the human and financial capital to add value to shareholders of the ;ank" hile at the same time continuing to ensure strict adherence to statutory and regulatory directives and national policies.
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PUBLIC SECTOR BANKS VISBABVIS PRIVATE AND FOREIGN BANKS :ndian ;anking offers a curious combination of e%cellence and mediocrity. :t is one of the biggest banking industry in the orld. :t comprises three forerunners / *S;s" *rivate Sector ;anks" Foreign ;anks. The *S;s are gigantic" are fleet flouted and the Foreign ;anks are technology savvy. ;anks have traditionally functioned as reliable intermediaries bet een net savers and net borro ers. :gnoring fee/based services" :ndian ;anks have mainly concentrated on the earnings from the Lspread& bet een the lending and the borro ing interest rates. This becomes 5uite apparent from even a cursory glance at the published 6ournals of any bank" here the income head is split up into L:nterest :ncome& and L<ther :ncome&. Anfortunately" these spreads have diminished and savers have started interacting directly ith borro ers. The only ay around is to increase the services and fee/based activities. The key to success in the future is going to be L7uality 2ustomer Service&" ith an innovative use of the most advanced technology available. <ver the ne%t fe years" :ndian ;anks ill need to introduce some" if not all" of the products or services outlined belo " to stay in the game. Thanks to liberali$ation" the :ndian ;anking :ndustry is agog ith competition. The players are competing like never before. Eo the *S;s have to perform better than others to keep ahead in the race" even to be in the race there is a need to better their o n performance levels" lest they are likely to be left far behind. ;oth the foreign and private banks are giving cutthroat competition to the *S;s" hich still predominate an eighty four percent share in the total assets of the industry.
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SWOT ANAL#SIS
PUBLIC SECTOR BANKS S6+)-,6(9: *ublic sector has 8)D share in the total assets of the industry. <ne of the positive outcomes of nationali$ation has been that of emergence of branch net ork spread across every nook and corner of the country. This coupled ith o nership by the state made these banks enormous in terms of si$e. *S;s have a significant individual depositor base rendering stability to the asset base. The share of investments of *ublic Sector accounted for8ID of the industry" indicating the dominance of *S;s. *S;s rank higher in deposits" advances and profits" due to their vast net ork and sheer si$e of staff. ;anking business measured in deposits is still dominated by the *S;s.The market share of *S;s account for 8=DHarket share on the advances front too is dominated by the *S;s hose advances form 8GD of the market. W)58-)99)9: *S;s have lo credit to deposit ratio. Though the *S;s have huge resource base" ith competition increasing at a faster pace" they are likely to lag behind in the long run. The complacency could cost them heavily. *S;s have a high level of E*As+bad loans-" huge overhead costs and high break/even levels. The lack of customer orientation and lo level of computeri$ation too is leading to their inefficiency. The productivity is less than the other t o sectors. ;orro ings of the *S;s have increased more than other t o sectors" hich is contributing to the losses. 9%penditure per branch is continuously increasing" as the branches are not properly managed. The *S;s hich command about 91D of the total bank branches 0 about 86D of the banking business in the country" are already saddled ith huge ork force. This orkforce operating under the protective umbrellas of mechani$ation 0 computeri$ation for fear of losses of employment opportunities" present or potential. *S;s are very much behind in the technology aspect. Services such as neatly printed statements of accounts" automatic and prompt updation of passbooks" ATHs etc are some of the benefits that customers are being deprived of at *S;s.
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PRIVATE SECTOR BANKS S6+)-,6(9: *rivate sector banks have a high credit to deposit ratio and they have kept their operating e%penses lo . !ith technology and customer orientation" *rivate Sector banks are at the higher level as compared to *S;s and on the level playing field ith Foreign banks. *rivate sector banks have a high level of capital ade5uacy ratio. *rivate sector banks are fairly advanced in the use of technology. Services such as neatly printed statements of accounts" automatic and prompt updation of passbooks" ATHs etc are some of the benefits that customers are en6oying at these banks. W)58-)99)9: *rivate sector banks unlike *S;s have less number of branches so their reach and coverage is not very e%tensive. *rivate sector banks have lo gro th in average advances" this aspect is dominated by the *S;s. For *rivate sector banks the average E*As stand at 1=.=GD. *rivate sector banks do not e%amine their business ith along term perspective. Hany of these banks tend to look at short/term opportunities and gains. FOREIGN BANKS S6+)-,6(9: Foreign banks have high credit to deposit ratio. Foreign banks are the leaders in technology and customer services. Foreign banks have high level of capital ade5uacy ratio. Foreign banks sho that the increase in the borro ings hich earlier amounted to losses is no signaling profits. The average spread en6oyed by the foreign sector is higher than that earned by other sectors. For Foreign banks the average E*As stand at less than 1>D hich is lo er than the other t o sectors. W)58-)99)9: Foreign banks have very less number of branches and hence their reach is very lo as compared to *S;s. Foreign banks have concentrated on corporate banking and fee based income. The business focus for most foreign banks must shift to retail mobili$ation.
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The follo ing table sho s a general comparison of three main classes of banks. *articulars *SA ;anks *vt. ;anks +<ld- *vt. ;anks +Ee 2ost of funds Ko Hoderate Figh ;ranch net ork !ide Spread Cegional Ko Kevel of Automation Ko Hoderate Figh E*As Figh Ko Ko 2apital Ade5uacy Hoderate Ko Figh 9mployee *roductivity Ko Hoderate Figh Focus on Eon/ interest :ncome Ko Figh Figh
ENVISIONING THE FUTURE OF BANKING

Against the background of the profound structural changes in banking services orld ide" every :ndian bank is embarking on a fundamental redefinition of its business and its relationship ith the customers. 29<s are attempting to develop strategies to deal ith ne and pressing business issues3 #eclining deposit gro th. #eclining spreads and margins. Ee market entrants. Figher customer e%pectations. @ro ing comple%ities of technology. The increasingly competitive and comple% nature of the banking industry has compounded the compulsion for focussing on the key profit drivers and this has led to fundamental 5uestion of e%ploitation of ne opportunity areas. The e%pansion of banking activities across vertical and hori$ontal dimensions" in an industry traditionally characteri$ed by high degree of pricing regulations" direct lending and pre/empted investments is the ma6or challenge facing the industry today.
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THE NEED FOR BETTER MARKETIN MIX:

T() 0/CC/13-, P/+6)+&9 M/=)C 9(/19 6() 5*/<-6 /0 ./*2)6363/- 5-= =3003.<C63)9 05.)= 7> 6() 75-89: PORTER&S MODEL N)1 E-6+5-69 The *S;s are facing competition from the ne private and foreign banks hich are coming into the picture. The entry of ne private as ell as foreign banks hich sprang as a result of the dismantling of entry barriers in the industry. The ne banks are more leaner and have been able to invest in the latest technology. Though the ne entrants have many advantages still they have to go a long ay. 9ntry barriers are not so small as being thought. *S;s have strong customer base hich are loyal to these banks and so the s itching cost for these ill be very high. The ne banks ill have to compete ith already established private and foreign sector banks. S<79636<6)9 The main substitutes are Financial :nstitutions and E;F2s. 2ommercial ;anks have been facing competition from the Fis in the intermediary business. Fis are also into lending business" raising deposits" giving loans for orking capital" disconting" leasing" hire / purchase etc. S<22C3)+9 The C;: is the 2entral ;ank of :ndia and it regulates the orking of all the banks. The bank has the sole right of issuing currency notes above one rupee in denomination. ;eing the ape% bank" it acts as the banker to all other banks. All Scheduled banks have to keep a certain percentage of their demand and time liabilities ith the C;:. The scheduled banks have to submit eekly returns of their business to the C;: hich regulates the flo of credit. 9very bank has to get a license from C;: to carry out banking business in the country. B<>)+9 The individual customers and corporates are the buyers of the facilities being provided by these banks. The *S;s bank on large and loyal customer base. !ith gro ing customers&demands the focus is no shifting to ards high 5uality and better services. *rivate and Foreign banks are no offering innovative products and services like convenience banking" ATHs" inter bank connections
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INTRODUCTION TO SERVICES MARKETING

SERVICES MARKETING Services are itnessing a ma6or boom in :ndia. Services like banks" car financing" consumer durable credit" cellular" paging" e%press" hospitality" travel and tourism" airlines" and" educational services on are today reali$ing the importance of marketing. Along ith these big service businesses" many small businesses ranging from beauty saloons" pubs" gyms" play schools and so on are reali$ing the importance of marketing. 9ven though some of the principles of marketing and advertising services are similar to product marketing" there are significant differences. A service is an act of labour or a performance that does not produce a tangible commodity and does not result in the customer's o nership of anything. :ts production may or may not be tied to a physical product. Thus" there are pure services that involve no tangible product +as ith psychotherapy-" tangible goods ith accompanying services +such as a computer soft are package ith free soft are support-" and hybrid product/services that consist of parts of each +for instance" restaurants are usually patroni$ed for both their food and their service-. UNIQUE CHARACTERSTICS OF SERVICES 9%actly hat is a service" and hy should services receive special treatment from marketersM A popular definition describes services as (any act or performance that one party can offer to another that is essentially intangible and does not result in the o nership of anything. :ts production may or may not be tied to physical product.( Although" the distinction bet een goods and services is some hat artificial" since the success of goods manufacturers is vitally dependent on the service they provide" there are four commonly cited characteristics of services that make them different to market from goods3 :ntangibility" :nseparability" 4ariability and perishability. INTANGIBILIT# *ure services such as baby/sitting cannot be seen or touched. They are ephemeral performances that can be e%perienced only as they are delivered. As the above definition of service suggests" intangibility may represent the most critical difference bet een services and goods" and its implications for marketing are great. Services are intangible because they can often not be seen" tasted" felt" heard" or smelled before they are purchased. A person purchasing plastic surgery cannot see the results before the purchase" and a la yer's client cannot anticipate the outcome of a case before the la yer's ork is presented in court. To reduce the uncertainty that results from this intangibility" marketers may strive to make their service tangible by emphasi$ing the place" people" e5uipment" communications" symbols" or price of the service. For e%ample" consider the insurance slogans (Jou're in good hands ith Allstate( or *rudential's (@et a piece of the Cock.( :ntangible services are difficult to sell because they cannot be produced and displayed ahead of time. They are therefore harder to communicate to prospective customers. A hobbled eekend athlete cannot see the results of elective knee surgery beforehand. The
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person may be able to talk to other patients ho have e%perienced the same procedure" but their operation does not necessarily reflect the outcome of this particular surgery. Harketers of services can reduce these risks by stressing tangible cues that ill convey reassurance and 5uality to the prospective customers. These tangible cues range from the firm's physical facilities to the appearance and demeanor of its staff to the letterhead on its stationery to its logo. Kife insurance companies are particularly savvy about this problem. Their service is" after all" the most intangible service3 by definition" the buyer ill never kno the ultimate result of hat he or she has boughtN To compensate for this intangibility the ma6or companies over the orld have developed strong visual symbols for their firms. *rudential /The rock of @ibraltar All state /*rotective hands Travelers /A red umbrella Eation ide /A blanket !ausau /A train station INSEPARABILIT# This characteristic is interpreted differently by different service marketing marketers" but all interpretations point out that special operations problems e%ist for the firm's managers. <ne interpretation of this term is the inseparability of customers from the service delivery process. :n particular" many services re5uire the participation of the customer in the production process. A child getting a haircut must sit still. other ise" the family photo may have to be delayed for a month. The person ho comes to a ta% prepare at the last minute ith bo%es of disorgani$ed records may cause the prepare to overlook some possible deductions. Services are inseparable from their production because they are typically produced and consumed simultaneously. This is not true of physical products" hich are often consumed long after the product has been manufactured" inventoried" distributed" and placed in a retail store. :nseparability is especially evident in entertainment services or professional services. :n many cases" inseparability limits the production of services because they are so directly tied to the individuals ho perform them. This problem can be alleviated if a service provider learns to ork faster or if the service e%pertise can be standardi$ed and performed by a number of individuals +as F0C ;lock" :nc." has done ith its net ork of trained ta% consultants throughout the Anited States-. These e%amples illustrate the fact that" unlike goods" hich are often produced in a location far removed from the customer and totally under the control of the manufacturing firm" service production often re5uires the presence and active participation of the customer / and of other customers. #epending upon the skill" attitude" cooperation and so on that customers bring to the service encounter" the results can be good or bad" but in any event are hard to standardi$e. A second interpretation of inseparability refers to the fact that in some service industries the service delivered is ine%tricably tied to particular individual service providers. 2ustomers may have ground for complaint if their service is not provided by" for e%ample" the surgeon or la yer they thought they ere paying for.
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VARIABILIT# The fact that service 5uality is difficult to control compounds the marketer's task. :ntangibility alone ould not be such a problem in customers could be sure that the services they ere to receive ould be 6ust like the successful e%periences their neighbors ere so pleased ith. ;ut in fact" customers kno that services can vary greatly. #ifferent front/line personnel have different abilities. 9ven the same service provider has good days and bad days or may be less focused at different times of day. Services are performances" often involving the cooperation and skill of several individuals" and are therefore unlikely to be same every time. This potential variability of service 5uality raises the risk faced by the consumer. The variability of services comes from their significant human component. Eot only do humans differ from one another" but also their performance at any given time may differ from their performance at another time. The mechanics at a particular auto service garage" for e%ample" may differ in terms of their kno ledge and e%pertise" and each mechanic ill have (good( days and (bad( days. 4ariability can be reduced by 5uality control measures. These measures can include good selection and training of personnel and allo ing customers to communicate dissatisfaction +e.g." through customer suggestion and complaint systems- so that poor service can be detected and corrected The service provider must find ays to reduce the perceived risk due to variability. <ne method is to design services to be as uniform as possible / by training personnel to follo closely defined procedures" or by automating as many aspects of the services as possible. The appeal of some service personnel / particularly" those involved in such e%pensive personnel services as beauty parlors treatments or home decoration / lies in their spontaneity and fle%ibility to address individual customer needs. The danger ith too much standardi$ation is that these attributes may be designed right out of the services" therefore reducing much of their appeal. A second ay to deal ith perceived risk from variability is to provide satisfaction guarantees or other assurances that the customer ill not be stuck ith a bad result. PERISHABILIT# The fourth characteristic distinguishing services from goods is their time dependence. Services cannot be inventoried" since they are performed in real time. And time periods during hich service delivery capacity sits idle represent revenue/earning potential that is lost forever. *eriods of peak demand cannot be prepared for in advance by producing and storing services" nor can they be made up for after the fact. A service opportunity occurs at a point in time" and hen it is gone" it is gone forever. This can present great difficulty in facilities planning. A survey of service firms found that the greatest operational challenges facing them ere posed by the perishability of their products. . Finally" services are perishable because they cannot be stored. ;ecause of this" it is difficult for service providers to manage anything other than steady demand. !hen demand increases dramatically" service organi$ations face the problem of producing enough output to meet customer needs. !hen a large tour bus une%pectedly arrives at a restaurant" its staff must rush to meet the demand" because the food services +taking orders" making food" taking money" etc.- cannot be ( arehoused( for such an occasion. To manage such instances" companies may hire part/time employees" develop efficiency routines for peak demand occasions" or ask consumers to participate in the service/
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delivery process. <n the other hand" hen demand drops off precipitously" service organi$ations are often burdened ith a staff of service providers ho are not performing. <rgani$ations can maintain steady demand by offering differential pricing during off/peak times" anticipating off/peak hours by re5uiring reservations" and giving employees more fle%ible ork shifts Hatching service capacity to demand patterns can involve managing one or both elements. PERISHABILIT# often puts a greater burden on service marketers to manage demand than it does on goods marketers" ho can build up inventories to meet peak demand or can reduce prices later to move the unsold inventory. The cited survey found that the firm's principal method for controlling demand as to increase personnel selling during potentially slo periods. Surprisingly" fe firms claimed to use the standard economic solution of price changes to increase or decrease demand" although some service industries" such as resort hotels ith seasonal demand" do this routinely. Fe respondents said they developed alternative" counter seasonal service products to use slack capacity" although that has long been a common practice by goods marketers. Hany service providers also control demand by re5uiring appointments. The alternative to controlling demand is to make service capacity fle%ible. Some service firms keep on call frontline personnel ho can arrive on short notice to meet the surges in demand" or cross train support personnel to assist ith customer service during busy periods.
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EXPANDING THE MARKETING MIX FOR SERVICES MARKETING

Service marketing managers have found that the traditional four *'s of marketing are inade5uate to describe the key aspects of the service marketer's 6ob. The traditional marketing mi% is said to consist of the follo ing elements of the total offering to consumers3 the product +the basic service or good" including packaging" attendant services et cetera-. its price. the place here the product is made available +or distribution channels / not generally a real issue for most services" e%cept perhaps for repair and maintenance-. and promotion +marketing communication3 advertising" public relations and personal selling-. Some marketers suggest that the uni5ue re5uirements of selling services re5uire the manager attend to three additional *'s. These are people" physical evidence and process. PEOPLE Hany services re5uire personal interactions bet een customers and the firm's employees and these interactions strongly influence the customer's perception of service 5uality. For e%ample" a person's stay at a hotel can be greatly affected by the friendliness" kno ledge ability and helpfulness of the hotel staff / in most cases the lo est paid people in the organi$ation. <ne's impression of the hotel and illingness to return are determined to a large e%tent by the brief encounters ith the front/desk staffs" bellhops" housekeeping staff" restaurant ait staff and so on" many of hich take place outside the direct control of the hotel management. :n fact" the average hotel patron has very little contact ith the hotel supervisors and managers. Therefore" management faces a tremendous challenge in selecting and training all of these people to do their 6obs ell" and" perhaps even more important" in motivating them to care about doing their 6obs ell" and" perhaps even more important" in motivating them to care about doing their 6obs and to make an e%tra effort to serve their customers. After all" these employees must believe in hat they are doing and en6oy their ork before they can" in turn" provide good service to customers. For this reason" human resources management policies and practices are considered to be of particular strategic importance for in delivering high/5uality services. 9stablishing a customer/oriented culture throughout the firm and empo ering employees to provide 5uality service cannot be established merely by putting up inspiring posters. Hanagement leadership" 6ob redesign and systems to re ard and recogni$e outstanding achievement are among the issues that a successful service manager must address. The term (internal marketing( has been coined to characteri$e the sets of activities a firm must undertake to oo and in over the hearts and minds of its employees to achieve service e%cellence. The (people( component of the service marketing mi% also includes the management of the firm's customer mi%. ;ecause services are often e%perienced at the provider's facilities" one's satisfaction ith a service can also be influenced by other customers ho are being served there. :ll mannered restaurants customers at the ne%t table" crying children in a nearby seat on an airplane and commercial bank customers hose lengthy
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transactions take up the teller's are all e%amples of unpleasant service conditions caused by a firm's other patrons. <n the other hand" the right mi% of customers can greatly increase the en6oyment of e%perience / for e%ample" at entertainment services" such as nightclubs or sporting events. #etermining the desirable customer mi% for a service" segmenting the market into compatible groups and managing customer arrivals to avoid conflict and enhance the service e%perience are essential components of service management. PH#SICAL EVIDENCE This element of the e%panded marketing mi% addresses the (tangible( components of the service e%perience and firm's image referred earlier. *hysical surroundings and other visible cues can have a profound effect on the impressions customers form about the 5uality of the service they receive. The (servicescape( / that is" the ambience" the background music" the comfort of seating and the physical layout of a service facility / can greatly affect a customer's satisfaction ith a service e%perience. The appearance of the staff" including clothes and grooming" may be used as important clues. *romotional materials and ritten correspondence provide tangible reassurance" they can be incorporated into the firm's marketing communications to help reduce customer an%iety about committing to the purchase. Service firms should design these items ith e%treme care" since they ill play a ma6or role in influencing a customer's impression of the firm. :n particular" all physical evidence must be designed to be consistent ith the (personality( that the firm ishes to pro6ect in the marketplace. PROCESS OF SERVICE PRODUCTION ;ecause customers are often involved in the production of services" the flo and progress of the production process is more important for services than it is for goods. A customer ho buys a television set is not particularly concerned about the manufacturing process that made it. ;ut the customer at a fine restaurant is not merely interested in the end result / the cessation of hunger. The entire e%perience of arriving at the restaurant / of being seated" en6oying the ambiance" ordering" receiving and eating the meal / is important. The pace of the process and the skill of the provider are both apparent to the customer and fundamental to his or her satisfaction ith the purchase. The importance of the process is true even for less 'sensual( e%periences. Therefore" hen designing service production processes" particular attention must be paid to customer perceptions of that process. For this reason" marketing and operations are closely related in service management . SERVICES SEGMENTATION The critical point about segmentation in a service is that to be of use it must penetrate through to the frontline" since in a service the final processes of production are simultaneous ith purchase or consumption. :ndeed" segmentation remains an elegant division" of interest to marketing" but of little practical effect if it does not achieve this. :n particular it is important to re/emphasi$e t o aspects" as follo s3 INTERNAL CULTURE These are the internal values of the organi$ation related to the values of the customer.
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Such a connection is a reflection of the ideas developed in the service star. The interaction is not 6ust a part of hat the customer buys" but is hat the customer buys. The values brought to this by the organi$ation are integral. So" for e%ample" if an e%ternal analysis ere to suggest a segment of 'professionals' ith a need for a ide range of detailed advice available ithin 'n' timescale there is a need to match this ith internal values of delegation so that front line staff are empo ered to make decisions" ithin the timescale and have a re ard system hich encourages the risks attached to such action. Similarly" defusing a crisis for the customer ill ork only if" in doing it" you do not create a drama internally because management" in turn" is not good at defusing crises ith staffN DELIVER# :ndeed" in some services / a concert hall" for e%ample" or a restaurant / the concept of distribution is difficult to comprehend. Cather" it is very important to take account of the point about production,consumption. #elivery is about the totality of the ay in hich the service is accessed before" during and after a sale. :n other ords" because the interaction forms an integral part of hat the customer buys" so the place or places and the feel and values of these must be e5ually integral. !ith Taco ;ell" for e%ample" 'price' and 'speed' are more compelling reason than 'food' for customers choosing that particular eating place" relative to competition. ;ut taking in to account culture and delivery is inevitably comple% since" in essence" one is building a very detailed star. !hen further considered ithin broad headings of the service mi%" there can be anything up to => criteria hich govern the market relationship" so it is possible to appreciate 6ust ho difficult this can be. REQUIREMENTS FOR A SERVICE ORGANIDATION I6 39 953= ( Asing industrial models to manage service/based corporations makes as little sense as using farm models to run factories( Service <rgani$ations can outperform the competition if they master hat the (rules of the service game( #aniel ;ell's ork made this most clear to us hen he described the steps in the evolution of the nature of ork3 +1- ST9* 13 The agrarian (game against nature( in hich the game as human versus the land. +G- ST9* G3 The industrial (game against fabricated nature( in hich the game as bet een human and machines. +8- ST9* 83 The postindustrial services (game bet een persons( in hich the game is bet een a clerk and a customer or a professional and a client. 9ach of these games re5uires different resources and rules. THE THREE TIERS OF A WINNING SERVICE ORGANIDATION 2ompetitive advantage in service derives from uni5ue ays of conceiving and managing service operations. Fere" e offer a uni5ue vie of service organi$ation / one that treats a service business as comprised of three tiers3 a customer tier" a boundary tier and a coordination tier.
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THE CUSTOMER TIER 2ustomers are the foundation of every organi$ation. They are the scorekeepers in the service game. :t has been suggested that figure skating is no the sport that offers the most appropriate metaphor for the nature of competition in today's orld. :t is" instead" an individual organi$ation trying to delight and impress a panel of 6udges and the 6udges are the customers. A service organi$ation can successfully bash the other organi$ations but still loose the service game if the organi$ation ring up )s and =s ith the customers. Hanagement practice should be based on a deep kno ledge of customer characteristics in three areas3 e%pectations" needs and competencies. 9ach service organi$ation must be fitted to its market and its customer&s particular definition of service 5uality. <nce customer e%pectations have been identified and met" respecting customer's subconscious needs is the key to differentiation in a service business. THE BOUNDAR# TIER The second tier of service organi$ations is here the customers meet the organi$ation. The people ho deliver service play some special roles ithin the boundary tier and deserve special attention. Service characteristics like intangibility and customer contact re5uire employees to display more initiative" to cope more effectively ith stress" to be more interpersonally fle%ible and sensitive and to be more cooperative than their colleagues ho ork in manufacturing. Although non/personal contacts ith the customers do not involve face/to/face interaction" e consider these contacts to be the part of the boundary tier because they have great impact on the customer&s perception of service 5uality. . THE COORDINATION TIER 2oordination is management's responsibility and in service firms" it may be management's most important task. :t includes the coordination of the activities of customers ho are often on site helping to co/produce the service and the integration of the customer and boundary tiers. Bey coordination problems are to ensure that +1- 2lear strategic decisions have been made about ho the target market is or should be and that the internal functioning of the organi$ation is effectively coordinated to pursue that market. +G- The boundary tier has the logistical" systems and staff support to meet the customer tier's e%pectations and needs. +8- The needs and e%pectations of those ho ork at the boundary tier are being met. The toughest challenge here is to get the various subsystems of the service organi$ation / e.g. <perations" Harketing" and Fuman resources management / to act as one system.
MARKETING 3- BANKS: ;anking is a ma6or industry through out the orld today. 2haracteristics of banking marketing: INTANGIBILIT#3 ;anking services are generally intangible" but the service providers go t the considerable lengths to tangibilise the services for customers" eg. ;ankpass book" regular bank statements" gold credit cards. INSEPARABILIT#: the degree of inseparability depends upon the type of services and the actual supplier. Hany everyday transactions are carried out no via automated services +ATH-. ;ecause access to these systems has broadened to allo use of any particular kind of machine by customers of other institutions" the customer ill often not be dealing directly ith their o n provider. Hany financial services are sold by brokers" agents of various kinds and this has led to several difficulties and misunderstanding and dissatisfaction in case of rong advice or unsuitable product. HETEROGENIT#: :n this case the comple%ity of the services transaction process ill determine the e%tent of variability and this can differ to a large e%tent bet een institution and even ithin one institution. The greater the degree of automation ithin any transaction process" the greater the degree of standardi$ation. Thus simple transactions may be carried out via ATHs and completely standardi$ed or via a branch counter here they might be fairly standardi$ed but sub6ect to some variation in 5uality. PERISHABILIT#3 The degree of perishability depends upon the type of service. :f a check needs to be cleared by a certain date and the system causes a delay then the benefits to the consumer are lost so the service could be said to be perishable. ;y and large ho ever money and financial services are enduring in nature. :f a bank&s reserves are not fully utili$ed profitably through lending or investment they ill still retain their orth and may be utili$ed again on a later date. HIGH INVOLVEMENT PURCHASESE COMPLEX PRODUCT3 Hany financial services are high involvement purchases. This ill mean that the customer ill shop around for the beat advice or best offer and ill generally take a long time to plan the purchase" for e%ample ith a mortgage or a pension. HIGH LEVEL OF BRAND LO#ALT#3 2ustomers tend to stay ith financial services providers and use them to satisfy their different needs at different stages of their life. ;anks recogni$ed this ell and are keen to provide students overdrafts s in the hope of retaining a professional salaried account holder for many years. Hany people choose the same bank as their parents because the parents open an account for them. 2hildren and teenagers are a keen target market for the banks because of the possibility of the future business. F3-5-.35C 9)+43.)9 5C9/ 6)-= 6/ 7) F/3-6 2<+.(59)9% 4)+> /06)-% 136( =).393/-9 *5=) 7> */+) 6()- /-) 2)+9/-.
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THE MARKETING ENVIRONMENT: 9nvironmental analysis and monitoring is of critical importance in any industry especially in the dynamic financial services industry ith its proliferation of products and services and changing industry structure. 9%ternal environment analysis usually involves assessing influences on the organi$ation&s business activity under the follo ing main headings3 P/C363.5CEC),5C: @overnment attitude to ards home o nership State provision of pensions @overnment encouragement of savings and investment Cegulatory control and protection E./-/*3. *ersonal and household disposable income #iscretionary income levels 9mployment levels The rate of inflation :ncome ta% levels and ta%ation structures Savings and investment levels and trends stock market performance 2onsumer spending 2onsumer credit S/.3/E.<C6<+5C: 2hanging employment patterns Eo. of orking omen The ageing of population Eumber of first time housebuyers 2hange in the no. of households Harriage,divorce,birth rates 2onsumption trends T).(-/C/,3.5C: *rocess developments :nformation storage and handling #atabase systems
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BANK MARKETING MANAGEMENT: ;AEB marketing is essentially a three stage process starting ith market research to accurately analy$e the needs. ;AEB services must then be designed to fulfil those needs at appropriate prices and then the availability of these services must be communicated effectively to potential customers. Harket research is the critical starting point. The success of subse5uent marketing planning and policy decisions depend upon a clear understanding of the market. To achieve strategic gro th through ;AEB marketing implementation" three ma6or strategic alternatives are available. M5+8)6 2)-)6+563/-: the aim is to gain market share at the e%pense of the competition. There are three ays of achieving this. O 9ncourage e%isting customers to buy more of the company's products and services" O *ersuade non/users to try the products. O Attempt to get competitors customers to s itch to your offerings. M5+8)6 =)4)C/2*)-6: This means seeking ne er target markets segments in hich to offer e%isting products and services. P+/=<.6 =)4)C/2*)-6: This strategy calls for product ranges to be upgraded or increased to attract a ider customer base. MARKETING PLANNING: :t is important to assess consumer needs" desires and motivations to ards banking services in order to establish levels of market attractiveness to determine key market segments and to plan the most effective marketing programmes. M5+8)63-, PC5--3-, 3- B5-89: P#evelopment of market research systems in order to determine hat consumers ant. P Harket segmentation P *roduct planning through ob6ective setting. P 2ommunication to the both consumers and potential consumers" to inform them of the services available and to remind or persuade them by means of advertisements. *romotion. P 9nsuring that the service offering is available and accessible to consumers via an effective distribution programme so that they can buy the service at a value +price-
2!
THE BANKING MARKETING MIX:

The marketing mi% refers to the blend of ideas" concepts and features hich marketing management put together to best appeal to their target market segments. THE PRODUCT MIX: As mentioned previously" there is little or no room for innovation in product design due to the ease by hich competitors can make similar offerings" for e%ample by altering charges or interest rates to meet those of competitors. Additionally" many financial services are affected by other restrictions" such as government directives relating to income ta% and investments or constraints on the amounts hich can be invested. #ifferentiation" therefore" can best be achieved through the other elements of the marketing mi%. 2urrent accounts are dominated by banks" although the building societies& share of this market in hich they could not compete until recently is gro ing. They hold the ma6ority of mortgage account" ho ever" but this stronghold is increasingly under pressure from banks. THE PROMOTIONAL MIX: The aims of the promotional fall into three main categories3 to inform" to remind" and to persuade. :t ill al ays be necessary to inform prospective consumers about ne products and services" but other issues may also need this type of communication to consumers. ne uses" price changes" information to build consumer confidence and to reduce fears full descriptions of service offerings" image building are e%amples. *romotion designed to persuade consumers ould be in line ith specific ob6ectives" for e%ample to encourage s itching or to build preference. There are a number of promotional tools available for bank marketing !hatever methods may be used it is important to focus on3 O 2learly identified segments O A uni5ue selling proposition O !ell defined target audience O 2reative use of media and media scheduling to reach audiences O Honitoring and evaluation of promotional effectiveness. PROCESS: Ceasons for enhancing process in banks are some of the follo ing changes3 Cising competition among banks and from outside the traditional banking sector is driving them to improve their customer service level to retain and increase the customer base and hence the need to provide better service. @lobali$ation and liberali$ation have added to the competition forcing banks to further reduce cost and increase efficiency Hore mergers and consolidation of banks put pressure on them to improve productivity and reduce costs. ;anks have to follo a customer centric approach to prevent rapid shifts in customer&s choice.
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;anks face constant pressure to adapt to changes brought about by dynamic environment. This dynamic environment places e%treme demands on information systems to provide better customer service" at lo est possible costs and in the shortest possible time QThe change in the banking environment has happened not only due to competition but also regulation.R according to ;art Fellemans" deputy manager 4ysya ;ank. QFence they are focussing on not 6ust volumes but also on the bottom lines. !hen you ant volumes ith profits" you have to bring in sales culture.R That e%plains hy our banks keep in5uiring hether e need a personal or a home loan hen e go to put some money in the fi%ed deposit. The mantras no is sales" and there is a tremendous pressure on bankers to turn sellers rather then 6ust being bankers. PRICING: The price in financial services terms relates to the cost involved to the customer in say" bank charges or credit card rates. These prices seem to evoke lo levels of customer sensitivity as many customers en6oy Lfree& banking" by maintaining their current accounts in credit" for e%ample" or paying their credit card balances off each month. The introduction of ne charges" ho ever" such as the annual credit card fee had a noticeable effect initially" ho ever" and sparked off competitive reaction from lenders prepared to offer cards ith no annual charge. *rice also relates to the value of the products to the customer and" as such" can be highly sensitive. This can be in terms of interest rates charged on a mortgage" here reductions in interest for first time buyers or preferential rates for e%isting customers of other services +for e%ample current account holders- are standard promotional tools in the industry" representing a form of discounting. The rates of return offered to investors is another element of the price and different products ithin the range are fre5uently priced at differential rates" to attract long/term savers or large sum investors" for e%ample. *ricing can therefore be used to differentiate the offering and is likely to be used by customers in selecting service. PLACE: *lace or location has al ays been regarded as critical in retail financial services here high street positions are maintained by most of the large institutions. For transaction services here regular and fre5uent branch contact is re5uired this can be important. First #irect" ho ever" the telephone banking service" has proved that a bank ithout branches is possible though its customers still need access to convenient ATH outlets. Some consumers prefer personal" face/to/face contact ithin a branch and may be more likely to use a local branch or building society. #irect Kine and other telephone insurance services are also moving a ay from the traditional large net orks of branches and brokers or agents. 2hanges in distribution systems" technology and consumer demands are all key influences on the evolution of the Lplace& component of the marketing mi%. #istribution management is concerned ith t o things3 availability and accessibility.
*9<*K93
2ustomer care is at the forefront of both 5uality and differentiation in the financial services industry. Staff needs to be highly trained not only in customer care but also in ho to respond to the rapidly changing market environment. *ersonnel can be used to
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develop competitive advantage in the marketplace and to build and maintain relationships ith customers. 2ustomers are no less a part of a firm's human resource than its employees. :f the service organi$ation's customers are sufficiently talented" they can do all sort of things for that organi$ation from co/designing the services to co/designing the human resources management practices. Faving the (best customers( can be a source of competitive advantage. The customer tier" then" deals ith the three important characteristics3 their e%pectations" their needs and their competencies. <nce these are understood" the people ho deal ith customers" those ho manage the service counter" come in to play. !e have called the people ho interface ith customers" members of the boundary tiers. The make/it/or/break/it role service employee&s play is that of linking customers to the organi$ation. PH#SICAL EVIDENCE: The environment in banks is changing" moving a ay from austerity and formality to a more friendly approach reflected in more attractive branch layouts and decor. <ther physical evidence plays an important part in financial transactions such as the documentation hich must be presented by the salespeople to prove that they are authori$ed to offer investment advise. This creates confidence and helps to build the relationship bet een the customer and provider. *hysical evidence is also idely used to tangibilise the service. Attractive brochures and policy documents" presented in glossy folders" che5ue book and credit card holders" Lgold& credit cards" children&s Lcollectable& money bo%es are all e%amples of physical evidence being used in this ay. 9arlier customers used to see a bank as a strong institution and therefore the image portrayed as one of solidarity" strength and seriousness as seen in strong buildings" high ceilings and long cash counters. ;ut hen the concept of personali$ed banking came in ith foreign banks it brought about a change in the design of banks. PROCESS: A customer ho applies for a loan at a bank evaluates the purchase not only by the amount of the loan received and the interest rate paid. The speed and sensitivity of the approval process" the interaction ith the bank officers" the accuracy of bank statements and the ease of getting redress if mistakes are found all affect the person's attitudes about doing further business ith the bank and his or her illingness to recommend it to others. PEOPLE : 2ustomers are no less a part of a firm's human resource than its employees. :f the service organi$ation's customers are sufficiently talented" they can do all sort of things for that organi$ation from co/designing the services to co/designing the human resources management practices. Faving the (best customers( can be a source of competitive advantage. The customer tier" then" deals ith the three important characteristics3 their e%pectations" their needs and their competencies. <nce these are understood" the people ho deal ith customers" those ho manage the service counter" come in to play. !e have called the people ho interface ith customers" members of the boundary tiers.
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The make/it/or/break/it role service employees play is that of linking customers to the organi$ation. The boundary tier / especially but not e%clusively the employees at the boundary tier / is the glue that binds customers to the firm. ;ecause service employees are both physically and psychologically close to the customers they serve" they play at least t o important roles for the organi$ation3 +1- :mpression Hanagers3 For many customers" the service employee is the organi$ation. This means that boundary employees behavior and the e%periences their behavior creates for customers are service 5uality in customer's eye. +G- @atekeepers of information3 ;oundary employees" being in constant interaction ith customers" are useful source of insights into customer attitudes" information on competitor strategies and ideas about ho to enhance service 5uality. !e emphasi$e that attention to the constituents of the boundary tier and their individual abilities" attitudes and motivations is only one of many rules for inning the service game. The service organi$ation should try to avoid hat e have called the (human resources trap(" hich is the mistake many companies make of putting all the burden for service 5uality on ho people at the moment of the truth treat customers. Fere" e ould also like to stress the importance of the non/personal service characteristics +like the physical facility" billing accuracy and timeliness- and the support that must be given to the front/line employees to enable them to contribute most effectively to inning the service game. As ith the figure skater ho is provided ith 6ust the right music and ardrobe" performance by service orkers can be only as perfect as the supporting elements permit.
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METHOD:
To understand the customers response to the I different features of marketing mi% a 5uestionnaire as prepared. ORGANISATION SITE: For the purpose of finding the customers response to ards marketing mi% structure of different banks 5uestionnaire as made to be filled by customers of these 8 banks in #elhi and E2C. SAMPLE: SAMPLING UNIT: 2omprised of all the customers ho ere /;ased in #elhi and E2C. /2ustomers of any of the banks under study. SELECTION OF SAMPLE3 Selection of the sample as done at random. SAMPLE SIDE: A sample si$e of => customers as taken. INSTRUMENTS USED: To understand consumers& behavior to ards the banks efforts for their marketing mi% structure the 5uestionnaire method of data collection as used. The 5uestionnaire intervie ere conducted in person" through e/mail and on telephone. The type of 5uestionnaire used as structured" non/disguised. These types of 5uestionnaires are considered to be most effective since they produce more reliable result. Also the data obtained through these are easier for tabulation and interpretation then the data collected by other methods. Also" this type of 5uestionnaire is considered to be more convenient for the intervie ee to ans er. PROCEDURE FOLLOWED: For the preparation of the report" firstly" the details of marketing mi% for :2:2: bank" S;: and 2itibank ere collected. The sources ere both primary and secondary. The secondary sources ere collected through articles in print" books" brochures" ebsites and 6ournals. The primary source as through personal contact at the three banks. A small 5uestionnaire asking about the details of the marketing mi% as put for ard to an employee in each bank ho had sufficient information regarding it. <n the basis of this the marketing mi% of the three banks ere studied. To understand the consumer&s response to the available marketing mi% of banks" a 5uestionnaire as got filled by a total of => customers of these banks. <n the basis of these responses the customers attitude as understood and analy$ed.
33
ANAL#SIS:
INTRODUCTION TO ICICI G+/<2 The :ndustrial 2redit and :nvestment 2orporation of :ndia Kimited no kno n as :2:2: Ktd. as founded by the !orld ;ank" The @overnment of :ndia and representatives of private industry on ?anuary =" 19==. The ob6ective as to encourage and assist industrial development and investment in :ndia. <ver the years" :2:2: has evolved into a diversified financial institution. :2:2:&s principal business activities include S *ro6ect Finance S :nfrastructure Finance S 2orporate Finance S Securitisation S Keasing S #eferred 2redit S 2onsultancy services S 2ustodial Services The :2:2: @roup comprises of S :2:2: ;ank Kimited" a commercial bank that provides both retail and holesale products S :2:2: Securities and Finance 2ompany Kimited +:2:2: Securities-" an investment bank that offers a ide range of fee based services ith the support of :2:2: ;rokerage services Kimited +:2:2: ;rokerageS :2:2: 2redit 2orporation Kimited +:2:2: 2redit-" a non/ banking finance company that provides a retail distribution channel for the group&s retail products" supported by :2:2: 2apital Services Kimited +:2:2: 2apitalS :2:2: :nvestors Services Kimited +:2:2: Services-" offering 5uality investor servicing S :2:2: 4enture Funds Hanagement Kimited +:2:2: 4enture-" a venture capital company S :2:2: :nternational Kimited" an off shore investment management company S :2:2: TB:EFCA Kimited +:/B:E-" a company that offers infrastructure financing and development assistance in Berala. ICICI Bank :2:2: ;ank is a commercial banking outfit set up by the :2:2: @roup. The ;ank as registered as a banking company on ?anuary =" 199) and received its banking license from the Ceserve ;ank of :ndia on Hay 1I" 199). The ;ank has an authori$ed capital of :EC 8>> crore +AS# I=.96 million-" of hich subscribed and paid/up capital is :EC 16= crore +AS# )1.I8 million-. The first branch of :2:2: ;ank as started in Hadras in ?une 199). As of Harch 81" 1999" 6) branches ere functional across the country. ;y this year 86 more branches,offices are e%pected to be added to the net ork. The branches are fully computeri$ed ith state/of/the/art technology and systems. All of them are fully net orked through 4/SAT +Satellite- technology. The ;ank is connected to the international S!:FT net ork since Harch 199=.
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:2:2: ;ank offers a ide spectrum of domestic and international banking services to facilitate trade" investment" cross/border business" and treasury and foreign e%change services. This is in addition to a hole range of deposit services offered to individuals and corporate bodies. :2:2: ;ank's :nfinity as the first :nternet banking service in the country" and a prelude to banking in the ne%t millennium. 2urrently the ;ank has around 1=>">>> customers. Eeed for merger of :2:2: Ktd. and :2:2: ;ank The recent trend in orld banking is to ards mergers and ac5uisitions. This is evident from the mergers occurring in ?apan" Anited States and other parts of the orld. The need is being felt for stronger and fe er players" offering a ide gamut of services +universal banking-. !ith competition becoming acute and foreign banks entering the :ndian market steps have to be taken to sustain gro th in the :ndian ;anking sector. To meet your business banking needs" :2:2: ;ank" a commercial banking subsidiary of :2:2:" provides an array of commercial banking products. !ith an authori$ed capital of Cs. 8>> crores +AS# I>.I> million-" of hich subscribed and paid up capital is Cs.16= crores +AS# 88.89 million-" :2:2: ;ank's financial strength adds to its capability of servicing businesses. The ;ank has harnessed state/of/the/art technology to deliver its services to the ma%imum satisfaction of customers The 4alue of :2:2: ;ank share has been ascertained at Cs. 86.1G per share. Taking *rice as Cs. 86.1G per share and the 9*S of three years from 1998/1999" *rice/9arning Catio +*,9- has been calculated as follo s. 1""!B"" 1"""B2$$$ 2$$$B$1 9arnings 8.8) I.II 18.88 *er Share *,9 Catio 9.) W(56G9 IN W(56G9 OUT <b6ective *rofitability #evelopmental 0 social :nterests of Shareholders *riority sector Strategies *ro/active *assive Segment Target banking Hass banking ;usiness Fee based Fund based E*A Hgt. Cecovery mgt. cell 2redit monitoring cell 2oncentration :nvestments Advances FC policy Fire 0 Fire ?ob Security 2redit Cating :ndividual 2orporate As :2:2: ;ank is a leading private player emphasi$ing more on hat's in rather than hat's out in the banking sector. Thus this merger is beneficial for the parties concerned.
MARKETING MIX FOR ICICI PRODUCTS: *ersonal ;anking 2ards Fome Koans 2ar loans T o heeler loans 2ommercial vehicle loans *ersonal Koans 2# Koans Koans against shares #emat Services ;onds,Fi%ed #eposits EC: Services . C/+2/+56) I-6)+-)6 B5-83-,: :nternet Services for 2orporates. !hether you are looking for investment opportunities" borro ing products or even risk management assistance" the :2:2: Treasury has solutions for you. <ne of the largest operations in the country" its present turnover e%ceeds Cs. 1 trillion. <ver the last fe years" the :2:2: Treasury has pioneered a number of key innovations" including3 multi/tier prime rates yield curve pricing long/term Cupee/#ollar s aps rupee denominated Floating Cate Eotes :n many ays" the Treasury is the nerve center of the organi$ation. :t mobili$es resources for the 2orporation from domestic as ell as international markets" manages its cash surpluses" sets interest rates and is responsible for hedging the organi$ation&s e%posure to market risks. Fully automated independent systems for Foreign 9%change" Fi%ed :ncome and 95uities add to the operational strength of the Treasury. They provide cutting edge ./-9<C63-, 9)+43.)9 6/ .C3)-69 3- 2<7C3. 5-= 2+3456) 9).6/+ ith the ob6ective of developing the infrastructure sectors. The range of consulting services broadly covers advice on policy related issues" restructuring of e%isting players" and facilitating pro6ect specific investments. At present the consulting services are divided into separate sectoral practices for energy +po er" oil 0 gas" coal 0 mining-" telecommunications" transport infrastructure +roads" rail" ports- and urban infrastructure +industrial parks" municipal infrastructure" etc.-. :2:2: ;ank offers the follo ing services3 !orking 2apital Financing Term Koans #ealer Financing 4endor Financing Financing 2ash/flo @aps 2ash Hanagement Services
36
:/*ayments 2orporate :nternet ;anking Foreign 9%change Cemittances,Advisory F:: Services
W/+83-, C52365C F3-5-.3-, :2:2: ;ank is the first bank to introduce 6)-/+ 759)= C)-=3-, +56). :t offers all traditional !orking 2apital Financing products ith a host of features" including lo est prime lending rate ith the highest service 5uality 2omposite cost. Fund/based orking capital products include cash credit" short/term loans payable on demand" bills discounting" e%port and import financing" financing of short/term cash flo mismatches" fi%ed and floating rate debentures and subscription to commercial paper T)+* L/5-9 Term loans for period of three to seven years is sanctioned for financing small and medium si$ed companies and to support normal capital e%penditure. :ncludes rupee loans" foreign currency loans" leasing" preferred stock and fi%ed rate debentures. D)5C)+ F3-5-.3-, The bank provides !orking 2apital Financing for dealers of the company. 2ustomi$ed structures are also orked out to suit dealer needs. Koan assistance is sanctioned to dealers as orking capital or as bill discounting lines of credit. V)-=/+ F3-5-.3-, The ;ank e%tends ;ill #iscounting services on bills dra n by suppliers on the company. ;ills accepted by the company are eligible for discounting under this scheme. #iscounting rate is linked to the tenor based :;C. *riority sector companies are also eligible for this service. F3-5-.3-, C59(B0C/1 G529 To manage the cash flo of an organi$ation" :2:2: ;ank offers assistance for financing cash/flo gaps by giving you an over/draft limit for short tenor financing" consistent ith consortium arrangement. C59( M5-5,)*)-6 S)+43.)9 :2:2: ;ank offers custom/made payment solutions allo ing them to reduce the time period bet een collections and remittances. 2ash management products include physical check/based clearing" electronic clearing services" central pooling of country ide collections" dividend and interest remittance services. IBP5>*)-69 :2:2: ;ank has leveraged the :nternet to offer e/commerce capabilities. :2:2: ;ank is the first bank in :ndia to provide fund transfer facility through the :nternet. :2:2: ;ank helps in setting up an :nternet based funds transfer system for a supply chain. Funds can be transferred from a company to its vendors and from the dealers to its supplier through the :nternet. :2:2: ;ank makes use of the latest security measures for :nternet ;anking.
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C/+2/+56) I-6)+-)6 B5-83-, :nfinity" the ;ank's :nternet ;anking Service" has opened the doors to a Ee !orld of convenience. :f you have a 2orporate :nternet ;anking account" you can get all @roup relationship information at the click of a mouse. F/+)3,- E?.(5-,) R)*3665-.)E A=439/+> :2:2: ;ank's treasury is one of the strongest treasury operations in the country ith a turnover in e%cess of AS# => billion. The ;ank's e%perienced and kno ledgeable team of dedicated foreign e%change dealers is e5uipped to help you ith fast and narro 5uotes for transactions. PRICE They don&t have any service charges hen a customer goes for the first time on normal services. #ebit card of ATH has a yearly charge of 99 Cs. SUPPLIERS LINE OF CREDIT Financing non/pro6ect purchase of capital e5uipment ;acked only by bank guarantee Eon/pro6ect purchases Asually 8 ,= ,I year repayments in semi/annual, 5uarterly installments *ricing based on cost of funds and tenure As a *rivate 95uity Asset Hanagement 2ompany" :2:2: 4enture raises capital from a variety of domestic and international investors" constitutes them into distinct pools and deploys them primarily in unlisted companies that do not have easy access to public sources of debt or e5uity capital. The choice of an e5uity partner is a critical step for any entrepreneur. The right partner provides the e%perience" credibility" responsiveness" fle%ibility and access to resources that complement the skills of operating management. :2:2: 4enture e%cels in all these aspects. :2:2: 4enture's team of G> professionals has a cumulative operating and investment management e%perience of over 1>> man/years and a record of successful and innovative financing in private e5uity. :2:2: 4enture invests in companies across a broad range of industries at all stages of development" from start/ups to e%pansion financing in emerging gro th companies to management buyouts. Since its founding in 1988" :2:2: 4enture has helped fuel the gro th of over 8>> companies in :ndia and 1G in the AS. :n any investment situation" :2:2: 4enture prefers to take an active role to create value for the portfolio company and its shareholders. As a holly o ned subsidiary of :2:2:" :2:2: 4enture has access to a broad spectrum of financial and analytical resources. !ith its keen understanding of the :ndian financial markets" access to global capital and a net ork through influential global alliances" it acts as a vital source of capital and management e%pertise to entrepreneurs. !orking 2apital products include both fund/based and fee/based products. . Fee based products include documentary credit and bank guarantees.
3!
PROCESS The present business model prevalent at :2:2: for the delivery of products and services to the customers is as follo s. :t is based on separate product and channel structures" and results in diffused customer o nership. PRODUCTSESERVICES SUITE CHANNELS C AUTO LOANS CALL CENTRES US MORTGAGES DSAS T LOANS TO BU# DURABLES ATM9 O BONDS MUTUAL FUNDS INTERNET M STOCK TRADING BANK BRANCHES E NET BANKING DISTRIBUTION CENTRES R CREDIT CARDS S C/+2/+56) I-6)+-)6 B5-83-, :2:2: ;ank opens the door to complete transparency in your banking activities The po er to kno is the po er to do Today corporate decisions are taken across the orld in split seconds. These decisions are based on 5uick and easy sharing of vital information. hich is made possible only through transparency of operations. :2:2: ;ank brings you the po er of financial transparency through its net banking service. <ver the last I years" :2:2: ;ank has established itself as one of :ndia's fastest gro ing private banks. !ith a net ork of over 1>> branches +increasing to 86> very soon-" )=> ATHs spread across over 1>> centers" it has increasingly given more and more :ndians the po er to bank the :2:2: ;ank ay. :n 199I" :2:2: ;ank took banking to an entirely ne level. <n to the :nternet. !ith :nfinity" it became the first bank in the country to launch :nternet banking. :t changed the ay banking as done. I-03-36> B P<69 6() 75-8 /- >/<+ 657C) :nfinity helps :2:2: ;ank e%tend its counters and services into homes and offices. Haking the bank accessible through the mouse G) hours a day" I days a eek" 86= days a year H5-=C)= 136( C5+) The transparency of your corporate account is limited to you and the core group you ish to share it ith. This transparency is fully protected by state/of/the/art online security measures. The multi/layered security architecture comprising fire alls" filtering routers" 1G8/bit encryption and digital certification protects your account information from unauthori$ed access. C(5--)C03-5-.)H3-6)+-)6 The ne product launched by :2:2: ;ank integrates channel financing and online banking. :t is aimed at enabling you to shift the supply/chain operations on to the net. This minimi$es paper ork" lo ers banking costs and improves operational efficiency. :n addition the product also offers overdraft facilities to your dealers and suppliers based on their business ith your company. They can no source funds at lo er costs from :2:2: ;ank through you. P
3"
:2:2: ;ank lets you optimise on time" money and business opportunities by simply upgrading to 2orporate :nternet ;anking. :2:2: bank is actively involved in the maintenance of its soft are as ell as hard are. :nfact :2:2: group has come up ith its o n soft are co. called :2:2: :nfosys Technology. The bank&s soft are is updated every 8 months The technological upgradation happens at corporate as ell as branch offices. :2:2: ;ank&s :T :nfrastructure comprises of the follo ing Eet orking services and data center related services and it facilities management. All such needs are met by :2:2: :nfotech. They assist them in all designing" customi$ation" implementation and maintenance of their corporate net ork. Their net orking e%pertise includes3 KAE #esign !AE #esign Eet ork Hanagement Eet ork Security Couting :* Addressing Satellite Eet orking +4SATsThe :2:2: !AE is a closed user group net ork and it connects more than 1=> locations. :2:2: ;ank offers various :T enabled processing services for the follo ing areas of ork3 :nvestor Servicing #epository Services& Hutual Funds :nsurance Ceconciliation +Cupee and Fore%Accounts Ceceivable Hanagement <ther :T enabled services in :2:2: ;ank are 2all 2enter design and management and Transaction *rocessing The application areas of :T in :2:2: banks are !hole Sale ;anking Solutions Cetail ;anking Solutions Solutions Formula Funds Solutions for :nsurance :mage and !orkflo Applications !eb ;ased Applications *erformance 9valuation and Tuning of Systems *KA29 !ith a net ork of over 1>> branches +increasing to 86> very soon-" )=> ATHs" spread across over 1>> centers" it has increasingly given more and more :ndians the po er to bank the :2:2: ;ank ay. :2:2: bank boasts of 6G> >f the 88>> odd ATH outlets in the country" and hopes to account for t o of the si% that ill be installed every day in the ne%t one year plan to garner some e%tra income by leveraging the advertising potential of the teller machines. Ha%imum banking takes place through alk Tins. Though the bank is trying for shifting the clientele to ATH. Till date )=Dof the customer database has been converted to ATH
4$
PROMOTION: ICICI bank is running an advertising campaign that focuses on the convenience of banking ith it. Bamath&s A team has rapped it up by burning money on brand advertising across sectors in a serious manner that" has been rarely seen in the industry T using the services of megastar Amitabh ;achchan to launch credit cards" advertising almost daily on prime time television for banking portals" etc. insiders estimate that :2:2: should have spent" by a conservative estimate" as much as Cs. G>/8> crore for brand building. :2:2: banks media agent is 7uantum. For marketing of ATHs also lot of efforts have been put in. each if :2:2: ATH does G81 transactions a day on an average but 7uantum and :2:2: are hoping advertisers ill be attracted by the 5uality of audience they can reach. :t remains to be seen hether the costs +:2:2: advertising budget is Cs.=>>>/1>>>> lakhs- depending on the no. of ATHs chosen and the fre5uency of the message ill pay off advertises in the long run or hether this trend ill go the ay of banner advertising. The bank considers T4 as the best media for promotion. PH#SICAL EVIDENCE: :2:2: considers ambience very important since they believe that it leaves a ma6or impact on client. All banks have attractive dUcor and lovely interiors. Several scrolling machines are put on hich the ne as ell as e%isting schemes& details are sho n. @lossy brochures and leaflets are available at various counters.
PEOPLE:
They consider internal marketing as a very important part. They have e%cellent training programs for their employees. They have training programs for freshers as ell as other employees. These are held every month and also upgraded on a monthly basis. They also have physical training programs. They have a site on the :nternet on hich they take online feedbacks from the employees and there is complete transparency in this case. The cost of training the employees about better technology range bet een Cs. I>>>/ 8>>>> per employee. The cost varies as per the3 4enue3i.e. hether the employee is trained in the ;ank training center or if a hotel is booked for the same. #uration of training3 :2:2: plans to put in a data mining solution that ill effectively collate and make sense of data across 8 million bank accounts" 88) ATHs" 18>">>> cards" 1>> banks branches" )>>">>> net banking accounts and =/6 distribution channels. :ts bank has ) million customers and the institution nearly = million bondholder accounts. Also the banks environment has been constantly emphasi$ed as being omen friendly.
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SWOT OF ICICI
STRENGTH :s the preferred financier for 1> auto manufacturers companies 2onsidered to be a fle%ible company 4ery consumer friendly. Fas the highest month on month share of the market. 1.6 million customer base. < ns the largest ATH net ork. :t is considered as a one stop shop for finance related business. Aggressive pruning of its non performing assets is improving its credit rate profile allo ing access to cheaper funds. #ealers love to ork ith them because of fast speed of processing loans :ts volumes allo :2:2: to offer among the lo est cost
WEAKNESS Eeed to increase its outlets :ts still a metro city bank Eeed to have more branches OPPORTUNITIES 1" sky is the limit as the market is gro ing and large part is still to untapped Eeed to have offers for the consumers ith manufacturers <nline banking can be profitised upon. 2an venture into retail banking. THREATS Ee entrants are making the competition tougher 2onsumers are becoming more and more demanding #ecrease in interest rates have made in this field bit unre arding The threat of takeover for :2:2: bank under the follo ing heads. V De/regulation V Globalization V #isinter mediation V Volatility Hanaging credit card risks is a challenging 6ob. 2hange in leading profile from pro6ect finance to good 5uality corporate business is driving net interest margin do n. Cetail bank business profitability prospects are unclear.
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INTRODUCTION FOR SBI State ;ank of :ndia is the largest bank in the country ith over 19> years of banking e%perience and ith advantaged technology at our fingertips. Today" State ;ank of :ndia ranks among the top G= commercial banks in Asia ith assets e%ceeding ASW =9 billion. !e operate orld ide through the most e%tensive net ork ever o ned by a commercial bank. !ith over 8998 branches in :ndia and =G foreign offices in 81 countries" our total deposits e%ceed AS W )= billion. SBI AN OVERVIEW The State ;ank of :ndia is the largest commercial bank in :ndia in terms of profits" assets" deposits" branches and employees. At the end of the financial year G>>>/>1 +April/ Harch-" the ;ank had total assets of Cs.8"1=6.)) billion +ASW6I.I1 billion-" total deposits of Cs.G")G8.G8 billion +ASW=G.>9 billion-" and made a net profit of Cs.16.>= billion +ASW8)) million- during the year. The ;ank has a vast domestic net ork of 9">19 branches and staff strength of G1)"8)=. :t commanded one/fifth of deposits and loans of all scheduled commercial banks in the country. The origins of State ;ank of :ndia date back to 18>6" hen the ;ank of 2alcutta +later called the ;ank of ;engal- as established. :n 19G1" the ;ank of ;engal and t o other banks +;ank of Hadras and ;ank of ;ombay- ere amalgamated to form the :mperial ;ank of :ndia. :n 19==" the controlling interests of the :mperial ;ank of :ndia ere ac5uired by the Ceserve ;ank of :ndia and the State ;ank of :ndia as created by an act of *arliament to succeed the :mperial ;ank of :ndia. S6+<.6<+) 5-= O+,5-3I563/The ;ank has its 2orporate <ffice at Humbai. :ts domestic operational area is divided in 1) 2ircles" each ith one Kocal Fead <ffice and a fe Xonal and Cegional <ffices. The ;ank's top management consists of the 2hairman" group e%ecutives for Eational ;anking @roup" 2orporate ;anking @roup" :nternational ;anking @roup and Associates 0 Subsidiaries" and four staff functionaries in charge of finance" credit" human resources and technology management" and inspection and audit. Three Strategic ;usiness Anits +S;As- under the 2orporate ;anking @roup have been set up for focussed attention to very large corporate customers" lease finance and pro6ect finance" all reporting directly to the corporate office. #istinguishing features of the S;As are integration of operational planning ith operations ithin each S;A" a focussed delivery system ith appropriate specialist inputs and focussed attention on profitability. S(5+)(/C=)+9 ' /0 9(5+)9 ()C= I-9636<63/Ceserve ;ank of :ndia Eon/Cesidents +F::s,<2;s,EC:sFinancial :nstitutions including :nsurance 2os. Hutual Funds,;anks,@ovt. 2os. #omestic companies,Trusts <ther :ndividuals including employees E4/C<63/44 CENTER OF INTERNATIONAL BUSINESS% ABS
S(5+)(/C=3-, =9.I8 18.81 11.=8 1.8> 6.G) G.8)
The origin of the State ;ank of :ndia goes back to the first decade of the nineteenth century ith the establishment of the ;ank of 2alcutta in 2alcutta on G ?une 18>6. Three years later the bank received its charter and as re/designed as the ;ank of ;engal +G ?anuary 18>9-. A uni5ue institution" it as the first 6oint/stock bank of ;ritish :ndia sponsored by the @overnment of ;engal. The ;ank of ;ombay +1= April 18)>- and the ;ank of Hadras +1 ?uly 18)8- follo ed the ;ank of ;engal. These three banks remained at the ape% of modern banking in :ndia till their amalgamation as the :mperial ;ank of :ndia on GI ?anuary 19G1. *rimarily Anglo/:ndian creations" the three presidency banks came into e%istence either as a result of the compulsions of imperial finance or by the felt needs of local 9uropean commerce and ere not imposed from outside in an arbitrary manner to moderni$e :ndia's economy. Their evolution as" ho ever" shaped by ideas culled from similar developments in 9urope and 9ngland" and as influenced by changes occurring in the structure of both the local trading environment and those in the relations of the :ndian economy to the economy of 9urope and the global economic frame ork. MARKETING MIX FOR SBI: PRODUCTS T() 45+3/<9 2+/=<.69 5453C57C) 136( SBI 5+): *ersonal ;anking @old ;anking EC: ;anking :nternational ;anking 2orporate ;anking Small Scale :ndustries Small ;usiness Finance Cural ;anking @overnment ;usiness Services *9CS<EAK ;AEB:E@ #9*<S:T S2F9H9S 2ACC9ET A22<AET SA4:E@S ;AEB A22<AET Savings Account Savings *lus Account Salary *lus T9CH #9*<S:TS Term #eposits Senior 2iti$en #eposit Scheme Ceinvestment *lan S;: H<#S Cecurring #eposit Haturity 4alue 2alculator
Kong Term Floating Cate #eposit Scheme *9CS<EAK F:EAE29 Fousing Koan Short Term Koan 2ar Koan 9ducational Koan *ersonal Koan *roperty Koan Koan to *ensioners Koan against Shares , #ebentures 9H: 2alculator S9C4:29S Kocker Cupee Traveller 2he5ue @ift 2he5ues *ublic *rovident Fund +**FC;: relief bonds *SA Cetiring 9mployees Scheme Koan <n #emat Accounts ATH Services :nternet ;anking Types of loans3 S;: Term #eposits S;: Koan For *ensioners S;: Cecurring #eposits Koan Against Hortgage <f *roperty S;: Fousing Koan Against Shares 0 #ebentures S;: 2ar Koan Against @ovt.Securities S;: 9ducational Koan #emat Accounts S;: *ersonal Koan Cates <f :nterest @<K# ;AEB:E@ @old #eposit Hetal +@old- Koan To #omestic ?e ellery :ndustry Hetal +@old- Koan To ?e ellery 9%porters The ;ank has prepared the S;: @old #eposit Scheme" hose purpose is to bring privately held gold in circulation" reduce the country's reliance on import of gold and provide its o ners ith additional income apart from freeing them from the problems of storage" movement and security of gold in their possession. The scheme ill only shift the place of holding from lockers to the ;ank and the form of gold from 6e ellery to bullion. The depositor ould derive the benefits of safety and security ithout any cost. At the same time" the depositor ould earn interest on an other ise unproductive asset and also be able to collateralise the same to raise loans. Thus" a virtual physical o nership and a virtual li5uidity is ensured in respect of the gold holding.
46
NRI S)+43.)9 State ;ank of :ndia" is best placed to serve Eon/ Cesident :ndians like you ith a ide range of deposits and investment banking services and to enable you to earn interest rates amongst the highest offered any here in the orld. :nternational banking services of State ;ank of :ndia are delivered for the benefit of its :ndian customers" non/resident :ndians" foreign entities and banks through a net ork of =G offices,branches in 81 countries" spread over all time $ones. The net ork is augmented by a cluster of <verseas and EC: branches ithin :ndia and correspondent links ith over I>> banks" the orld over. ;ank's ?oint 4entures and Subsidiaries abroad further underline the ;ank's international presence. The services include corporate lending" loan syndications" merchant banking" handling Ketters of 2redit and @uarantees" short/term financing" collection of clean and documentary credits and remittances. C/+2/+56) 75-83-, S;: is a one stop shop providing financial products , services of a ide range for large" medium and small customers both domestic and international. W/+83-, C52365C F3-5-.3-, Assistance e%tended both as Fund based and Eon/Fund based facilities to 2orporates" *artnership firms" *roprietary concerns P !orking 2apital finance e%tended to all segments of industries and services sector such as :T E?2/+6 C+)=36 To 2orporates , Eon 2orporates S6+56),3. B<93-)99 U-369 +i- 2orporate Accounts @roup +2A@+ii-*ro6ect Finance +iii- Kease Finance P An e%clusive unit providing one stop shopping to top 2orporates P A dedicated set up speciali$ed in financing of infrastructure and other large pro6ects P 9%clusive set up for handling large ticket leases. I-6)+-563/-5C B5-83-, The bank's products include foreign e%change letters of credit" guarantees" remittances" acceptances and collections. :ts loan syndication activity covers arranging" participating and under riting foreign currency loans. :t also provides short/term finance through buyers' and suppliers' credits. . A,+3.<C6<+5C 75-83-,% *3.+/ .+)=36% +),3/-5C +<+5C 75-89 S;: 2aters to the needs of agriculturists and landless agricultural labourers through a net ork of 66>> rural and semi/urban branches. There are 9IG speciali$ed branches hich have been set up in different parts of the country e%clusively for the development of agriculture through credit deployment. These branches include )GI Agricultural
47
#evelopment ;ranches +A#;s- and =)I branches ith Agricultural ;anking #ivisions +A#;s- and G Agricultural ;usiness ;ranches at 2hennai and Fyderabad catering to the needs of hitech commercial agricultural pro6ects. The branches have covered a hole gamut of agricultural activities like crop production" horticulture" plantation crops" farm mechani$ation" land development and reclamation" digging of ells" tube ells and irrigation pro6ects" forestry" construction of cold storages and godo ns" processing of agri/products" finance to agri/input dealers" allied activities like dairy" fisheries" poultry" sheep/goat" piggery and rearing of silk orms. The ;ank has achieved tremendous gro th in agricultural credit. As on Harch G>>1" it has covered )8 lakh farmers ith loan outstanding of Cs. 1)96G crores" accounting for G8D of total agricultural advances of *ublic Sector ;anks +*S;sS656) B5-8 /0 I-=35G9 C3-85,)9 136( G/4)+-*)-6 7<93-)99 5+) 13=)92+)5=. N/ 1/-=)+ 6(56 /<6 /0 8998 branches in :ndia" about I>>> branches are conducting @overnment business. The large net ork of our branches provides easy access to the common man to deposit their @overnment dues such as :ncome Ta%" 2orporation Ta%" 2entral 9%cise and 2ustoms #uty" etc. SBI C5+=9 S;: 2ard launched through the ;ank's subsidiary" S;: 2ards 0 *ayments Services Ktd. +a 6oint venture ith the @9 2apitals- continued to attract ne customers. The ;ank is looking at 2redit 2ards as a part of its strategic plan for enhancement of customer satisfaction. The number of cards in force at the end of Hay G>>1 as 6.=9 lakh. !ith the addition of 18 more cities during G>>>/>1" the S;: 2ard registered its presence in 89 cities in the country. The highlight of the year G>>>/>1 as the introduction of three ne products3 @old 2ard" Secured 2ard and #octors 2ard. 2o/branded cards ere launched by si% of the ;ank's Associate ;anks during the year. !ith this addition" all the seven Associates have no been covered. I-9<+5-.) S;: has made a foray into insurance business through a 6oint venture vi$." S;: Kife :nsurance 2o." ith 2ardif S.A." one of the largest insurance companies in France. 2ardif is a 1>>D subsidiary of ;E* *aribas" the third largest bank in 9urope. The ;ank is holding I)D e5uity in the 6oint venture. 2ardif holds the remaining G6D. PRICING They have normal charges for their services like drafts, collection of charges etc. but the banks prices are considered to be very nominal compared to other banks. Other features of the banks prices are: * SB !s "rime #ending $ates %"#$& are among the lo'est * "resently Bank has t'o "#$!s ((SB)$ for loans payable on demand and upto one year ((SB*T#$ for loans payable beyond one year. PLACE
4! CENTER OF INTERNATIONAL BUSINESS% ABS
As of no bank sees ma%imum transaction through alk ins. ;ut the bank is trying to convert these to ATHs. :t is also emphsi$ing a lot on :nternet banking. The ;ank has its 2orporate <ffice at Humbai. :ts domestic operational area is divided in 1) 2ircles" each ith one Kocal Fead <ffice and a fe Xonal and Cegional <ffices. The ;ank's top D/*)963. B+5-.( N)61/+8 At the core of the ;ank's commercial banking business is its nation ide net ork of 9">19 branches as on Harch 81" G>>1" by far the largest branch net ork of any bank in :ndia. The ;ank's domestic branches represent appro%imately 1)D of all bank branches in :ndia. About )=D of the ;ank's branches are located in rural areas" GID in semi/urban areas and 16D and 1GD are located in urban and metropolitan areas respectively. ATHs / gro ing speedily to touch the 1>>> mark by Harch G>>G. This idespread branch net ork enables the ;ank to raise a substantial and stable deposit base" to provide a ide range of lending products and other financial services and to diversify lending risks geographically as ell as by type of credit risk and customer. The ;ank's ability to diversify and enhance the 5uality of service related to its deposit taking as ell as its lending activities and other financial services is a fundamental strength of the ;ank. I-=35- A99/.356)9 5-= S<793=35+3)9 A net ork of eight :ndian ;anking Subsidiaries of the ;ank" comprising seven Associate ;anks and S;: 2ommercial and :nternational ;ank Ktd." are engaged in the business of commercial banking in the country. ;ranches of the seven associates are located in various regions of the country hile S;:2: has its offices in Humbai. The ;ank has foreign offices in 81 countries ith a net ork of =1 branches,offices spanning all time $ones. The ;ank's foreign offices include full/fledged branches at centers such as Kondon" Ee Jork" Frankfurt" *aris" Fong Bong" and Tokyo. ;esides full/fledged branches" the ;ank also has offshore branches" representative offices" subsidiaries" and other arrangements for conducting business. :n addition to its o n branches and offices overseas" the ;ank also has t o holly/ o ned subsidiaries" namely" S;: +2anada- and S;: +2alifornia-" four other subsidiaries" namely" S; :nternational Ktd." Hauritius" :ndo/Eigerian Herchant ;ank Ktd. Kagos" S;: Finance :nc." Ee Jork and S;: Services Kimited" Sao *alo" and t o 6oint/venture <verseas ;anking Subsidiaries" namely" Eepal S;: ;ank and ;ank of ;hutan" for providing banking services overseas. The ;ank has a net ork of =G overseas offices spread over 81 countries covering all the time $ones and has correspondent relationship ith IG> foreign banks. #uring 1999/ G>>>" s aps orth ASW 6= million ere put through The ;ank had 189 ATHs in =G cities. A fe ATHs are already made on/line for the ;ranches" here they are located" and the remaining ATHs ill soon have similar facility. PROCESS T).(-/C/,> O+3)-6563/!ith increased competition and ne business opportunities" it is imperative for the ;ank to introduce and absorb technology e%tensively and at a rapid speed" not only to remain customer/friendly" efficient and competitive for e%isting services and business but also" and perhaps more importantly" to be able to manage ne er forms of business and services
4"
in an increasingly dynamic and global environment. The ;ank's effort to improve efficiency and customer service through use of technology is reflected in the rapid pace of its branch computeri$ation. As at the end of August G>>1" the ;ank had G"6I8 fully computeri$ed branches at 6)> centers" covering I8D of the ;ank's business. This includes 9=> of the top 1">>> business branches have already been computeri$ed. All speciali$ed branches" like <verseas ;ranches" EC: ;ranches" *ersonal ;anking ;ranches" 2ommercial ;ranches" :ndustrial Finance ;ranches" etc." are no fully computeri$ed. The ;ank crossed many milestones in technological upgradation. 9lectronic Eostro Account Ceconciliation +9K9E<C- and State ;ank 9lectronic *ayment Systems +ST9*S- became operational in #ecember G>>> and ?anuary G>>1" respectively. ;oth the pro6ects ere conceived" developed and implemented ith in/house e%pertise" and the success as idely acclaimed. 9K9E<C" dealing ith on/line nostro account reconciliation" enabled online reporting of fore% transactions from ))) fore% intensive branches. ST9*S as launched to facilitate instantaneous electronic transfer of funds. its present coverage is 6G9 computeri$ed branches. Any here Anytime ;anking3 The ambitious ATH net orking pro6ect ent on stream in its pilot phase in Harch G>>1" ith the aim of enabling the customers accessing their accounts from many designated centers at any time. As at August G>>1" ATHs ere net orked in eight cities covering G=> branches and 1>6 ATHs. There are 8>9 ATHs installed in 1>> centers all over the country. The ;ank has issued 1.) million ATH cards" accounting for 8> per cent of the ATHs card issued in the country" as on ?une G>>1. :nternet ;anking started on a pilot basis on the 1st August G>>> at 11 branches" and by ?une G>>1" =1 branches in ma6or centers ere covered. For electronic transmission of inter/branch data for reconciliation through the :nternet. The *ro6ect 9C92<E as e%tended to G">>9 fully computeri$ed branches :n G>>>/>1" the ;ank established (S;:/Felpline( at KF< centers" e5uipped ith toll/free telephone lines" fa% and e/mail for providing 5uick and complete information on ;ank's products and services" and to enable the customers to have their grievances redressed through electronic media. The S;: Fome *age as thoroughly redesigned and revamped during the year. The site is a indo for all S;: products and services and detailed corporate profile" and provides seamless integration ith Eet banking. *roduct/ ise Fre5uently Asked 7uestions +FA7s-" Ee sletters and Felpline facilities attracted a large number of visitors to the site. The ;ank made significant improvements to provide better and efficient banking services to customers through introduction of appropriate technologies. These include / 1. 9lectronic #ata :nterchange pro6ects for handling customer transactions at airports and seaports made operational at 11 centers. G. :ntroduction of computeri$ed printing of drafts. 8. <pening of H:2C and 92S centers for 9lectronic 2learing Services. ). Cemote login facilities for corporate customers implemented in over I> branches covering about )>> customers. =. Tele/banking introduced on a pilot basis at 88 branches in Humbai 2ircle of the ;ank" to be e%tended to other 2ircles soon.
f- <n/line 9lectronic Funds Transfer facility in 6G9 branches g- S ift 2onnectivity to 1)6 ;ranches" accounting over 8=D Fore% ;usiness h- 9/recon//Transmission of inter/branch data for reconciliation through :nternet in 1I9> fully computeri$ed branches. i- :ntroduction of Telebanking on a pilot basis at 88 branches in Humbai to be e%tended to select branches across all 2ircles. 6- :ntroduction of remote banking facility for )>> corporate customers in I> branches" allo ing them to vie and do nload account balance and transaction details from their office through a computer connected to the branch M5-5,)*)-6 I-0/+*563/- S>96)* The ;ank&s Hanagement :nformation System +H:S- aims at providing timely and accurate information to the management ith the help of advanced information technology. To ards efficient data management" <racle C#;HS has been introduced in the ;ank and the process of migration of e%isting H:SKA programme to <racle environment has started ith the development of a 2redit :nformation System" hich ill replace H:SKA. <ther plans include introduction of S#F" a database on branch environment,infrastructure" and migration of other applications on <racle. These initiatives ill help in creating a 2orporate #ata !arehouse. :n a spectacular technology demonstration State ;ank of :ndia" the country's largest bank" installed a 4ideo 2onferencing Eet ork ith a state/of/the/art Hulti 2onferencing Anit connecting its G) 9ndpoints spread all across the country from Ahmedabad to @u ahati and 2handigarh toThiruvananthapuram. The net ork inaugurated on the =th ?anuary as part of the 'Technology Fortnight' being observed by the ;ank enabled its management functionaries to attend a mega conference lasting ) hours and spanning the country" at the flick of a button. The net ork connects the 2orporate 2enter in Humbai ith the 2orporate Accounts @roup" Humbai" 1) Kocal Fead <ffices in various State capitals" ) ape% training centers at Fyderabad and @urgaon" its Foreign #epartment in Bolkata" the :nspection 0 Audit #epartment at Fyderabad and the Agency ;anking #epartment in Humbai / in all G) locations at present and e%pandable to 96 such locations. The facility provides for full motion video transmission connecting the hole conference rooms and its participants to interact" broadcast" share and collaborate seamlessly. The facility ill enable S;: to leverage the full strength of its net ork and empo er its management functionaries to coordinate their plans" programmes" product launches etc. in the most cost and time efficient manner. :t ould enable its highly trained faculty to impart training any here or every here in the ;ank ith minimum of travel for either the trainers or the participants. Host important" it ill enable the ;ank's 2hairman" the Hanaging #irectors" #eputy Hanaging #irectors and other Top 9%ecutives to interact ith the 2hief @eneral Hanagers at its 1) Kocal Fead <ffices and other functionaries in the ;ank" signaling the breakdo n of the time/distance barriers and bringing about a greater synergy of operations. The net ork ill greatly facilitate and e%pedite the information sharing and decision making process in the ;ank ith its huge and multi/ layered structure. U9) /0 I-0/+*563/- T).(-/C/,> !ith the addition of ))= branches during the financial year" the ;ank&s total number of computeri$ed branches ent up to G"11I" at )8= centers" capturing over 69D of the ;ank's business. ;usiness hours have been e%tended in 1"81G computeri$ed branches in
the country. !ith the addition of 16 more branches" a total of 181 domestic branches ere covered under the S!:FT net ork. 4SAT net ork covered 1)I critical branches rendering cash/management services and S;: #atanet" used for inter/branch,inter/office data transmission" covered 1">18 branches. 9lectronic #ata :nterchange pro6ects for handling customs transactions at airports and seaports have been implemented at 11 centers. PEOPLE 9%perience a hole ne orld of banking at our ne ly opened *ersonal ;anking ;ranches +*;;s-/ often dubbed bouti5ue branches by others. 2ustomer friendly kno ledgeable staff ill cater to your financial re5uirements ith speed and efficiency. The continuing deregulation of :ndia's financial services sector has resulted in increased competition for the ;ank. :n order to ma%imi$e shareholder value in this increasingly competitive environment" the ;ank aims to improve profitability hile consolidating its position as :ndia's leading bank" and capitali$e on opportunities presented by deregulation and other changes in the financial services sector to further enhance profitability through the follo ing strategies3 a. :mprove customer service b. #evelop and market ne products and services c. :ncrease employee productivity through training and ne technology d.. :mprove credit assessment" loan monitoring and debt recovery e. Selectively develop its international operations. H<*5- R)9/<+.)9 M5-5,)*)-6 Taking into account the vast changes taking place in the financial sector in :ndia" the ;ank has taken a critical look at the changes re5uired in the Fuman Cesources Hanagement +FCH- policies to make the organi$ation more vibrant" customer friendly and respond to the e%ternal environment ith vision. The ;ank has a very large in/house training capacity consisting of t o ape% Staff 2olleges" an :nstitute of Cural #evelopment" an :nstitute of :nformation 0 2ommunication Hanagement and => Staff Training 2enters. <ver I>">>> employees pass through the training system every year. The annual e%penditure on training is over Cs.== crore. The ;ank has full/fledged technology training system ith one ape% institute at Fyderabad and GG satellit) .)-6+)9. T3CC =56)% 6()9) .)-6)+9 (54) 6+53-)= 57/<6 7 %$$$ OFFICIALS :n the FC# area" a ma6or event during the year as implementation of a 4oluntary Cetirement Scheme" ith the ob6ective of improving the age and skill profile of the staff. A total number of 8="88> employees applied for retirement and G>"I8) ere permitted to retire. <f the retired employees" 6"69) +8GD- ere officers" 11"GI1 +=)D- ere from A ard staff category and the remaining G"819 +1)D- ere from subordinate staff category. S6500 S6+)-,6( The ;ank had total staff strength of G"1)"8)= on 81.>8.G>>1. <f this" =G")=9 +G).)Dere officers" 1">6"I81 +)9.ID- belonged to the A ard staff category" and the remaining =="6== +G=.9D- ere sub/staff.
PROMOTION: They consider print media as the best media. The advertising agency is Ape% Advertising. Their famous punchline is Q ith you all the ayR. PH#SICAL EVIDENCE: They give a lot of importance to the physical evidence. The ambience is ell taken care of. There has been a considerable improvement in the ambience of several branches. They have been emphasi$ing on glossy brochures" better infrastructure etc. ho ever this cannot be said about all the branches of S;:.
SWOT FOR SBI

STRENGTHS: :t has a branch net ork of 91>> branches and has an e%cellent delivery channel. ;eing one of the oldest bank people have a lot of trust in the bank. :ts :ndia Hillenium deposit scheme last year got total EC: #eposits of a huge =.= W billion hich makes up a large chunk of the total :ndia&s W)> billion foreign e%change. WEAKNESS: S;: Fome Finance finds itself in a spot today because of its focus on housing pro6ects rather then retail housing. :t is considered as one of the biggest ealth destroyers. S;: tops on si$e based measures like revenues" *AT" total assets but appears among the bottom ranks for ealth creations.
OPPORTUNIT#: TF9 A;EB :S TCJ:E@ T< *ASF :TS C9TA:K @AH9*KAE :E A ;:@ !AJ AE# AKS<*KAES T< HAB9 HA?<C :EC<A#S :ET< F<AS:E@ F:EAE29 <E :TS <!E
THREAT: Hore and more corporates are moving from traditional bank loans to cheaper funding avenues in a bid to cut costs. Ander the guidelines of C;: a bank can advance only G=D of its capital to a single borro er. Eo due to the coming together of standard chartered and AEX @rindlays" they have an increased capital base. The bank can issue Cs. =>> crore to a single corporate. That makes it the only foreign bank ith this facility and hence has given the customers a choice that no longer have to go to S;: for this kind of a loan.
INTRODUCTION TO CITIBANK
2itibank" the global bank from the AS completed 9> years in 199G.:t has all along accepted :ndia&s place in the regional as ell as the global economy. The bank has encashed its e%pectations and over the past 9> years has lived upto t o of its characteristics3 Firstly" it is occupying premium position in the banking industry" and is making 2itibankers feel proud in orking for the bank and its customers feel prestigious to bank ith 2itibank. Secondly" it has got ell integrated into the ethos and economy of the country. 2itibank continues to be a global leader in cash management and in :ndia volumes are gro ing almost =>D every year in this area. ;ut the bu$$ ord in corporation these days is shareholder value and risk management. A great opportunity seen by 2itibank as3&A bank that ould go to the customers& and not vice/versa. :t could foresee that since the late LI>s the habits of the :ndian consumer ere changing.&buy no " pay later L as overtaking Lsave no " buy later&. :ndia as also becoming one of the biggest markets for t o/ heelers" refrigerators and T4s ith annual gro th rates of around G=D. The customer and the product ere available" all that separated them as an easy loan. T() P56( B+)58)+ The bank had aimed to be a path breaker in its operations" herever it operated" and :ndia is no e%ception. :t pioneered in mid 196>s" among the foreign banks" recruitment of :ndians to managerial positions. :t ent to management institutes to recruit its future e%ecutives. These e%ecutives" over a period of time have been tapped by the parent bank to manage its global operations. 2itibank has no become the biggest e%porter of high caliber manpo er" hich as used in other banks. The bank&s soft are subsidiary is one of the biggest e%porter of bank oriented computer soft are.
MARKETING MIX FOR CITIBANK PRODUCTS: 2itibank <nline offers a ide range of products and services to meet your banking and investment needs. *roducts3 2hecking Savings 2ititrade ;rokerage :ndividual retirement account Koans and lines 2redit card *ricing packages . R3=3-, 3- JC36375-8 E?256+356) I-=35- P+/,+5**)K :t as 2itibank&s conscious decision to reach for EC:s" kno ing the country&s needs to mobili$e EC: deposits. :t as the first among all :ndian banks to systematically cater to EC:s and enable them to intimately play their due role in the economic development of their country. 2itibank has 1) EC: centers across the globe here there are clusters of e%patriate :ndians and si% branches in :ndia. To increase your loan eligibility" you can 6ointly apply for the loan ith an earning co/ applicant ho can either be your spouse or your parents. This helps increase the loan applicant's income is added to the total income available for consideration. S543-,9 2C5-9 6/ *))6 >/<+ ,/5C9. 2itibank offers a variety of savings products to meet both your short and long/term needs. D5>B6/BD5> S543-,9 @reat for cash you need on hand" but no checking privileges. H3,(B#3)C= I-9<+)= M/-)> M5+8)6 A../<-6 Figher returns plus limited checking privileges. C)+6303.56)9 /0 D)2/936 JCDK @uaranteed returns on funds you don't need right a ay. I-=343=<5C R)63+)*)-6 A../<-6 JIRAK Ta%/deferred savings and investments for retirement
The various benefits can be divided under the follo ing three heads3 *ersonal banking
<pen an account. 9veryday ;anking. 2redit 2ard,#iners. Hortgages and Koans. :nvestment. *lanning,Cetirement Solutions. :nsurance. :nternational Special Services S*5CC 7<93-)99:
2iti;usiness. 2redit 2ards,#iners. :nsurance. :nvestment. Cetirement Solution. Koans. *ayments. :nternational Special Services C/+2/+56)E3-9636<63/-5C: @lobal 2orporate,:nvestment ;ank. 2itibank e/;usiness. 2itigroup Asset Hanagement. American #epositary Ceceipts. Travelers ;usiness. :nsurance. @overnment Services. #iners 2lub. 2redit 2ard. Herchant Services. 9%patriate ;anking. *rivate ;anking. !orldKink. :nternational *ayments S)+43.)9 Advantage debit card ATH card #ebit,ATH card ATH reimbursement Auto deduction 2hecks as cash 2iti financial needs analysis 2ititrade auto investment #irect deposit <nline bank statement <nline bill payment <verdraft protection Safe eb online protection
!ireless alerts other then these it also provides investment services market snapshot 5uotes 0 charts T//C9 6(56 ()C2 2<6 >/< 3- ./-6+/C *lanning for the future takes research. Fere" you'll find a ide variety of planning tools" along ith resources to help you learn more about everything from money basics to credit and borro ing and much more. O-) .5- C)5+- */+) 57/<6 2redit 0 ;orro ing 9ducation *lanning Fome < nership :nsurance *lanning :nvestment :nformation Honey ;asics Asing 2itibank <nline B> 6//C9 9<.( 59: 9ducation Funding 2alculator Financial Fealth 2heck Future 4alue 2alculator :CA 2omparison 2alculator :CA Collover 2alculator Ha6or *urchase *lanner *eriodic Additions 2alculator *resent 4alue 2alculator M5?3*3I) 6() 2/1)+ /0 >/<+ 9543-,9 The C36375-8 S543-,9 A../<-6 does more for your money than any other savings bank account. !hat makes it superior to any other account of its kind" is a host of features carefully designed to give ma%imum returns on your money. !ith it" you en6oy incredible financial value and great transactional convenience. G) hours a day. 86= days a year. Take a look at its uni5ue features and you ill kno hy. 2itibank Hulti/#eposit :nvestment Services from 2itibank :nsurance ;enefits 2itibank 2heck *rotect Eational ;anking #ial/A/#raft Faster 2heck 2learing
M<C63BD)2/936 L T() 0C)?37C) 03?)= =)2/936 Anlike other fi%ed deposits" the 2itibank Hulti/#eposit is held in multiples of Cs.1>>>. Therefore" you can ithdra money henever you need in multiples of Cs.1>>> ithout breaking your entire deposit or paying interest on your o n money. The deposits are broken on a minimum loss basis so as to ma%imi$e returns for you. I-4)96*)-6 S)+43.) L T() 7)96 15> 6/ *58) >/<+ */-)> ,+/1 2itibank :nvestment Services together ith international partners such as Alliance 2apital and *rudential bring you the best of :nvestment ideas. !ith assistance from an e%pert :nvestment 2ounselor. <ne ay to ensure that your money orks the hardest for you. I-9<+5-.) B)-)0369 Jou get a host of insurance benefits. F+)) H/<9)(/C= I-9<+5-.) !ith your 2itibank Savings Account" you no automatically get Fousehold :nsurance orth Cs. 1 lakh against the loss or damage of your household articles due to accidental fire" burglary or theft. F+)) B5,,5,) I-9<+5-.) Jou also get free ;aggage :nsurance orth Cs. 8>">>> against theft or loss of baggage hile travelling in :ndia. This cover is increased to Cs. =>">>> hile travelling abroad. L/96 C5+= R)2C5.)*)-6 :n case you lose your 2itibank ATH,#ebit 2ard" e ill ensure that replacement a 2ard reaches you ithin )8 hours from the time you repost the loss at no charge. The benefit of Fousehold and ;aggage :nsurance has been introduced !.e.f.?uly 1" G>>>. This cover is not provided by 2itibank" EA and is sub6ect to approval by The Ee :ndia Assurance 2ompany" Ktd. Special e%clusions,limitations are as per policies issued by the insurance company. C().8 P+/6).6 F5.3C36> L C/4)+9 C/1 .59( 0C/1 Jou get a temporary overdraft facility of up to Cs.1>">>> if your Account is lo on cash flo . Jou 6ust need to call 2itiphone. That's all. N563/-5C B5-83-, L O-) 75-8 5.+/99 6() ./<-6+> !ith 2itibank you can deposit your cash and checks at any of our branches in Humbai" #elhi" 2alcutta" 2hennai or ;angalore. All our branches are open until Ipm on all orking days so you can visit us at your convenience. D35CBABD+506 L F+)) 5-= ./-4)-3)-6 =+506 =)C34)+> ?ust instruct us on the phone and have a draft delivered at over )> locations ithin G) hours. All from the comfort of your home or office
"
CC)5+3-, L A9 M<3.8 59 .5- 7) At 2itibank" checks take minimum processing time. ?ust G days for local clearing" ) days for most metros" 1) days for checks dra n on any state capital and 11 days for AS #ollar checks. U--563 C<++)-6 A../<-6 From the moment you open a 2itibank U--563 C<++)-6 A../<-6" you begin to feel the difference it can make to your business. First of all" you stop spending time unnecessarily ith bank managers" and start spending more time ith your clients. Jou stop running your business by the clock" because no you can access your 2itibank Annati 2urrent Account any time and from any here. !ith 2itibank Annati 2urrent Account you stop paying for things you should get free. C363G/C= W)5C6( M5-5,)*)-6 gives you an unparalleled advantage to stay ahead in life. :t is an unmatched package of products and services that enables you to ma%imi$e your ealth" e%perience the lu%ury of banking services and offers you e%clusive privileges that benefit your special status. PROCESS T() 2+/.)99 0/+ 9/*) /0 369 9)+43.)9 5+) 2itibank :nvestment Services 2itibank :nvestment Services together ith international partners such as Alliance 2apital and *rudential bring you superior investment options. !ith an e%pert :nvestment 2ounselor to assist you in making your decisions. <ne ay to assure that your money orks the hardest for you. C().8 P+/6).6 F5.3C36> A uni5ue facility that allo s you an overdraft of up to Cs.1>">>> if there is a shortfall in your Account balance. So" if your cash flo needs temporary bridging ith an overdraft" 6ust call 2iti*hone and e'll process your re5uest instantly. F+)) D+5069 Jou can get free drafts dra n on any of 6> locations" up to Cs. 1> lakh per eek. ?ust call 2iti*hone from the comfort of your home or office and e'll have the draft delivered to you ithin G) hours. ;ook a draft through the :nternet" and e'll have it delivered to third parties absolutely freeN C59(EC().8 P3.8B<2 2all us and e'll pick up your checks for deposit to your Account" absolutely free.
6$
C59( D)C34)+> Jou can order cash bet een Cs.1>>> and Cs. G=">>> per day at your residence or office" at a small charge. I-6)+.36> C()M<)9 !ith your 2itibank Annati 2urrent Account you get a che5ue ith payable at par facility across 8 cities in :ndia and gro ing. These che5ues are locally cleared. This translates into great savings in time as ell as cost of clearing for your business. C363G/C= W)5C6( M5-5,)*)-6 P+/.)99 2iti@old !ealth Hanagement is a t o step process The first step begins ith 2itipro" the Financial Hanaging Tool. :t helps you assess your e%isting ealth" cash flo re5uirements" and risk appetite and investment hori$on. Jour profile and your cash flo s ill determine the optimal portfolio allocation into li5uid assets" medium term and long term investments. :t also helps you rationali$e your e%isting liabilities and determine your insurance re5uirements so that your family can continue to avail the same benefits and fulfill their dreams even in case of an unfortunate eventuality. :t thus enables you to preserve" protect and gro your ealth. The second step pertains to product selection and portfolio revie and rebalancing ith 2iti2hoice. Jou can select from a shortlist of top performing mutual funds in each of the li5uid" debt and e5uity funds asset classes from leading fund houses in :ndia. #epending on your risk appetite and investment hori$on" you can also invest in @overnment of :ndia fi%ed income securities" treasury bills and corporate bonds, debentures, commercial papers. U-*56.()= B5-83-, C/-4)-3)-.) Jou can conduct your banking in complete e%clusivity and confidentiality at our e%clusive the orld through financial and business maga$ines and television programmes. 2iti@old brings to you superior banking convenience ith draft dra ing facilities at over GI= locations" national banking" payable/at/par che5ue books" cash delivery and che5ue pick/up facilities. An e%clusive 2iti@old telephone line at 2iti*hone" 2itibank <nline and 2itibank ;anking 2enters enables you to conduct your banking transactions G) hours a day" I days a eek / both hile you are in :ndia or travelling overseas. 2itiAlert messaging services helps you keep tab on your money through Alerts on your email or mobile phone. D3+).6 D)736 !hen you open a ne account" you can have up to W1">>> directly debited from any non/ 2itibank account ith check/ riting privileges. D3+).6 D)2/936 Jou can have your paycheck directly deposited into your 2itibank checking" savings or insured money market account. ?ust click on the D3+).6 D)2/936 F/+* link belo to do nload the form. Then print it out and follo the instructions. <r" if you prefer" you can sign up for #irect #eposit ith your employer.
61
W3+) T+5-90)+ !ires received by ) p.m. local time ill be credited to your account no later than the ne%t business day
PRICE The 2itibank *ersonal Koans are clean cash loans. They do not re5uire any security" collaterals or even guarantors. :n many cases" 2itibank on't charge you for using non/2itibank ATHs" as long as you meet minimum balance re5uirements or stay ithin the transaction limits set for your account. For details" consult the C36375-8 O-C3-) CC3)-6 A,+))*)-6. +Follo the link belo and check the section on *ackage *ricing or the (2hecking at a @lance( section.;asic 2hecking and ;asic Savings are e%ceptions. !ith those accounts" 2itibank may charge you for using a non/2itibank ATH. To find out more" consult the 2lient Agreement and see the Section on (;asic ;anking.( <ther financial institutions and ATH operators may independently charge non/customers a fee for the use of their ATHs. 2itibank has no control over these charges. ;e sure to ask your local ATH providers about their usage fees or look for fee information on the ATH itself. 2itibank may in some cases reimburse 5ualified account holders for ATH usage charges by other financial institutions and ATH operators. :t's not a credit card" so you don't have to pay a monthly bill or finance charges. The money you spend is deducted from your checking account at the time of purchase. Fo ever" ith the 2itibankY AAdvantageY #ebit 2ard there is an annual fee. Fere's a rundo n on our cards3 B593. C36375-8N B5-83-, C5+=3 Eo annual fee and no finance charges on purchases. C36375-8N B5-83-, C5+= 136( 6() M596)+C5+=N C/,/3 Eo annual fee and no finance charges on purchases. C36375-8N AA=45-65,)N D)736 C5+=3 For the ;asic plan" hich earns one mile for every WG spent" there's a WG= annual fee. For the *remium plan" hich earns one mile for every W1 spend" there's a W6= annual fee. PEote3 :f you have a 2hecking *lusY line and don't have enough in checking to cover a debit card purchase" then your overdraft line ill be accessed and the regular finance charges ill apply. OTHER CHARGES There are several other charges associated ith getting a loan hich together form the effective cost of your loan. PROCESSING FEE This fee is paid up/front to the lender for processing your application. Though it may be a small amount" it increases your cost of borro ing. *rocessing fees range bet een G to ) per cent of the loan amount. This charge is negotiable.
62
DOCUMENTATION CHARGES These charges also need to be paid up/front to the lender for processing and verifying all the documents. These charges also add to your cost of borro ing and are negotiable. PREPA#MENT CHARGES There are certain lenders ho levy a prepayment charge to the borro er in case of early repayment of the loan. These charges range bet een 1 to ) per cent of the balance outstanding" hich is repaid. This adds to the cost of the loan.
PENAL INTEREST
:n case you delay your repayments" the lender charges a penal interest of about G per cent of the amount due. " there are no fees for accessing your accounts ith 2itibank <nline. :n addition" many of the services that 2itibank offers" such as bill payment" are also free. Fo ever" you may be charged for specific banking and investment services. P+3.)9 0/+ 9/*) 9)+43.)9 5+): S)+43.) Abandoned *roperty Transfer1 ;ond 2oupon Cedemption +per series2heckbook,2heck <rders 2hecking Account 2losing + ithin 9> days of opening2heck :ssued in Foreign 2urrency +!orldlink2heck Ceturned,*aid Against :nsufficient,Anavailable Funds +overdraft-G 2lerical Cesearch +per hour" one hour minimum2oin 2ounting8 2ollection of 2hecks #ra n on Foreign ;ank) / if less than A.S. W1>>.>> / if A.S. W1>>.>> or more 2ollection of Eotes and Sight #rafts on #omestic ;ank 2onsular,4erification Ketter 2opy of 2ancelled 2hecks= 2ounter 2hecks #eposited 2heck Ceturned Anpaid #omestic ;ank 2ollections) Foreign 2urrency 9%change W1">>> and over / Ander W1">>> :nterim Statement Kegal *rocess 2ompliance +levies" attachments" etc./ E<T93 This fee ill change to W1G=.>>" effective ),1,>G. Hiscellaneous 2opies +:CS Forms 1>99" #eposit Ticket" etc.F))9 WG>.>> W1>.>> 4aries WG=.>> WG=.>> W8>.>> WG=.>> =D W1>.>> W8>.>> WG=.>> WG=.>> W=.>> W=.>> W1>.>> WG=.>> Eo 2harge W=.>> W=.>> W1>>.>> W=.>>
63
Honey <rder for 2ustomers Honey <rder for non/2ustomers <fficial 2heck *ostdated 2heck Ce5uest6 7uicken +*er Statement *eriodCeturning <riginal 2hecks in Statement +effective ),1,>GSafe #eposit ;o% Annual Cental Safety 2heck Staff Assisted ;ill *ayments +*er Statement *eriodStatement 2opy Stop *ayment Ce5uest Temporary Safekeeping for First 1= #ays / 9ach Additional Honth or portion of Honth Travelers 2hecks !ire Transfer / :ncoming #omestic and :nternational / <utgoing #omestic / <utgoing :nternational
W=.>> W1>.>> W1>.>> WG=.>> W9.9= WG.>> 4aries W=.>> W).9= W=.>> W8>.>> Eo 2harge W1>.>> 1.=D
PEOPLE: RELATIONSHIP DISCOUNTS Celationship discounts are offered to you in case you already have a relation ith the lender. For instance" if you are banking ith the lender or have previously taken a loan" you have the option of negotiating for lo er interest rates on the loan. PH#SICAL EVIDENCE: Ambience of office is greatly emphasi$ed by the 2itibank. The dUcor" maintenance" 5uality of posters and brochures is keenly taken care of. 9ven the ebsites are made attractive and catchy ith detailed information. 9ven the ATH centers are ell e5uipped and impressively kept. PLACE <ne can use ATE,#ebit card to get cash at over half a million ATHs orld ide and to make purchases at merchants displaying the 2irrusY" HaestroY" EJ29Y" and STACY symbols. Select merchants in these net orks ill allo cash back from your account hen you make a purchase. :n addition to the locations listed above" the 2itibankY ;anking 2ard ith the Haster2ardY logo is accepted at over G1 million Haster2ard locations orld ide.
64 CENTER OF INTERNATIONAL BUSINESS% ABS
EC: Services in :ndia 1. Humbai G. #elhi 8. 2hennai ). Fyderabad =. 2alcutta 6. ;angalore I. *une 8. ;aroda 9. Ahmedabad ;ranch locations are at 1. Humbai G. #elhi 8. 2hennai ). Fyderabad =. 2alcutta 6. ;angalore I. *une 8. ;aroda 9. Ahmedabad 1>. ?aipur 11. 4adodara PROMOTION ;iggest spender on promotion is considered to be 2itibank" hich spends Cs.1= crore on advertising" of hich about =>D is" spend on boosting its credit card business. The bank ho ever spends Cs. 6> crore on marketing. 2itibank is glit$y and high profile and it has the idest portfolio/it is into credit cards" personal loans and other such products. :t also introduced local understanding of a global level of service that came to :ndia. 2itibank has been coming up ith various schemes from time to time. Hostly it uses print media to promote its products. :t has several punchlines of hich the most famous are T() B)66)+ W5> T/ M5-5,) #/<+ M/-)> S65+69 H)+). The 2iti Eever Sleeps. Apart from these it also goes in for various schemes in collaboration ith companies like :ndian <il and HT4. :t also promotes e%tensively on :nternet. *resently it has an advertisement in sify.com home pages Some e.g. S30> C36375-8 S2).35C O..593/-9 9%clusive round/the year Special <ffers on 2itibank cards 6ust for Sify users. ;ecause for a 2itibank cardholder" no day is 6ust the same and no month is 6ust like another. There's al ays more to look for ard to from 2itibank every month. ;esides en6oying the usual benefits like orld/ ide acceptance" G) hour accessibility and
ATH facility" ith these 2ards you can no en6oy additional e%clusive offers that come your ay every no and thenN Haking the hole year a special occasionN :ndian oil 2itibank international card Ase this fuel efficient 2redit 2ard any here in the orld and get free fuel in :ndiaN Eo transaction fees at :ndian <il <utletsNN 2ollect turbo points every time you use it and get free fuelZ *lus discounts on ?B tyres" 9%ide batteries etc plus moreZ @o places ith this cardN S*5+6 =)5C9 Eo 2itibank <nline helps you make the most of your money" every ay possible. :ntroducing Smart #eals // uni5ue values and special savings developed e%clusively for you.
66
SWOT OF CITIBANK INDIA STRENGTHS 1. ;eing the first entrant in the auto/finance business the brand recall is high among consumer. G. As it has tie/up ith Haruti hich is the largest seller of automobile in :ndia. :t has an edged over its competitors as hen consumer goes to dealer. 8. *eople associated 2iticorp ith Haruti. ). The 2iticorp has very ide net ork hich gives it an e%tra leverage. =. :t has the first mover advantage. 6. Along ith Times @roup it brought in Times <nline Honey Ktd. !hich is :ndia&s largest financial supermarket. WEAKNESS 1. *eople are una are about the fact that 2iticorp provides are loans for other car manufacturing companies. OPPORTUNITIES 1. As the auto/financing market is increasing rapidly the company can gain considerable market share. G. The companies to have preferred financial status ith other manufacturing automobiles company. 8. !ith the change in life style of companies people are open to the idea of car finance. !hich ill help 2iticorp the gain a greater market share. THREATS 1. 9ntry of ne players in the market the competition is increasing. G. !ith a decrease in the interest rates the profits of the company are under threat.
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ANAL#SIS OF QUESTIONNAIRE
To find banks3 hat does the consumer believe about the marketing mi% of the above three
Q.1. W(3.( /0 6() 0/CC/13-, 75-8 =/ >/< 5453C 9)+43.) /0 : ICICI SBI CITIBANK <ut of the => people contacted for filling up of the 5uestionnaire )6Ddealt ith :2:2:" 8>D ith the S;: and onlyG)D ith the 2itibank. There is only a marginal difference bet een the no. <f customers for each bank.
SEVICES AVAILED FROM
CITIBANK 24% SBI 30%
ICICI 46%
Q.2. W(56 5+) 6() 9)+43.)9 6(56 >/< ,)-)+5CC> 5453C 0+/* 75-89O ATM C+)=36 C5+= L/5-9 O6()+9 J9543-,9 P=)2/9369K
SERVICES AVAILED
OTHERS ATM 18% 26% LOANS 14% CREDIT CARD 42%
6!
The services availed by customers are as above. Q.3. A+) 5CC >/<+ 03-5-.35C +)M<3+)*)-69 *)6 )00).634)C> 136( >/<+ 75-8O #)9 N/ !hen asked about this6>D of the respondents ans ered in the affirmative. <ut of these 6ID ere the customers of :2:2:" G>D of S;: and 18D of 2itibank. This gives an idea about the amount of varied services provided by different banks. ALL FINANCIAL REQUIREMENTS ARE MET WITH YOUR BANK
20 20 10 0 3 ICICI 6 9 4 8 YES NO
SBI
CB
Q.4. D/ >/< 0))C 136( 6() 3-6+/=<.63/- /0 2+3456) 5-= 0/+)3,- 75-89 6() 9)+43.)9 /0 2<7C3. 9).6/+ 75-89 (54) 3*2+/4)=O #)9 N/ Host of the respondents felt that ith the advent of private and foreign banks the services of public sector banks have improved drastically. 6GD of the respondents felt that there has been a change hile 88D feel there ahas been no considerable change.
HAVE SERVICES OF UBLIC SECTOR IM ROVED
NO 38%
YES 62%
Q. . A+) 6() 9)+43.) .(5+,)9 /0 >/<+ 75-8 : H3,( L/1
6"
R)59/-57C) <ut of the total respondents I)Dfeel that bank charges are reasonable +of these 16.GD ere 2itibank customers" =ID ere for :2:2: and GID for S;:-" 6Dfeel that they are lo +1>>D of these ere S;: customers- hile G>Dfeel that they are high +out of these 6>D ere dealing ith :2:2:" and G>Deach for S;: and 2itibank-. SERVICE CHAR!ES OF THE BANKS ARE
30 20 10 0 20 ICICI 21 10 23 SBI 6 0 CB 6
HIGH LOW REASONABLE
Q.6. W(56 39 6() 7)96 9/<+.) /0 2+/*/63/- 7> 1(3.( >/< ,)6 6/ 8-/1 57/<6 6() -)1 9)+43.)9 2+/43=)= 7> >/<+ 75-8O T.V. P+3-6 I-6)+-)6 W/+= O0 M/<6( 88D of the respondents feel that T4 is the best means for promoting banking services" G8D found print media as the best alternative and GGD favored :nternet as the best means. 1GD of the total respondents believed that nothing could promote banking services better then ord of mouth.
BEST MEDIA FOR ROMOTION
WOM 12%
RINT 28% INTERNET 22%
TV 38%
Q.7. A+) 6() 2+/*/63/-5C 9.()*)9 /0 >/<+ 75-8 522+/2+356) 5-= <-=)+965-=57C)O #)9 N/
7$
66D of the total respondents feel that the current promotional schemes of their respective banks are both appropriate as ell as understandable.
ARE THE ROMOTIONAL SCHEMES A RO RIATE"UNDERSTANDABLE
NO 34% YES 66%
Q.!. C5- >/< +).5CC 6() C596 5=4)+639)*)-6 /0 >/<+ 75-8 3- 6() *)=35 >/< ./-93=)+ 59 7)96O #)9 N/ <nly 6)D of the total respondents ere able to recall the last advertisement for their banks. <ut of these I1D ere dealing ith :2:2:" 6.GD ith S;: and G1.8D ith 2itibank. <ut of the ones that ere not able to recall IGD ere dealing ith S;: and G8D ith 2itibank and none from :2:2:. CAN YOU RECALL THE LAST ADV OF YOUR BANK
30 20 10 0 ICICI 0 2 SBI 23 13 # $ YES NO
CB
Q.". B> 1(3.( 9/<+.) =/ >/< ,)-)+5CC> 2)+0/+* >/<+ 75-83-, 0<-.63/-9O W5C8 IATM T)C)2(/-) H/*) C+)=36 C5+= I-6)+-)6 The sources by hich the functions performed by customers of various banks are as follo s3
71
20 18 16 14 12 10 8 6 4 2 0
MEANS BY WHICH YOU DO BANKIN! 18
9 6 1 WALK IN 2 0 0 TELE 0 0 0 HOME INTERNET 2 3 #
10 6 2 0 ATM CREDIT CARD #
ICICI SBI CB
Q.1$. A+) 6() 7+5-.()9 /0 >/<+ 75-8 13=)92+)5=O #)9 N/ I8D of the total respondents felt that their bank had enough branches +=)D of :2:2: customers" 86D of S;: customers and 1>Dof the 2itibank customers-. I8D of the 2itibank customers felt that their bank had not enough branches. ARE THE NO% OF BRANCHES OF YOUR BANK ENOU!H
30 20 10 0 ICICI SBI CB 2 21 14 1 4 8 YES NO
Q.11. H/1 *<.( =/ >/< 0))C >/<+ 75-89 9)+43.)9 (54) 3*2+/4)= 7> *)5-9 /0 -)1 6).(-/C/,3.5C ,5=,)69O V)+> M<.( N/6 M<.( N/6 AT ACC !hen confronted ith this 5uestion most of the customers replied that technology has changed the look and performance of the banking services.I>D of the total believed that there has been a lot of change +=1D of :2:2:" G6D of S;: and G8D of 2itibank customers-. !hile G)D believed that there has been only a marginal change 6D felt the
72
services and its 5uality has not changed at all +out of these 6ID ere S;:" 88D of :2:2: and none of the 2itibank customers. HAS TECHNOLO!Y LED TO IM ROVEMENT OF SERVICES
20 1$ 10 $ 0 18 9 4 1 4 2 VERY MUCH 8 4 0 CB NOT MUCH NOT AT ALL
ICICI
SBI
Q.12. H/1 =/ >/< 03-= 6() 5*73)-.) /0 >/<+ 75-8O V)+> G//= A4)+5,) P//+ 6GD of the total respondents found their banks ambience as very good +61D of :2:2:" 6.)D of S;: and 8G.GD of 2itibank customers. 8)D felt that the banks ambience as kind of <.B.G>D of the respondents had complaints regarding the ambience out of hich 6>D ere customers of S;:" 8>D of :2:2: and only1>D of 2itibank customers.
HOW IS THE AMBIENCE OF YOUR BANK
20 1$ 10 $ 0 ICICI SBI CB 1 3 2 # 6 19 10 1 1 VERY GOOD AVERAGE VERY POOR
Q.13. H/1 39 6() 56636<=) /0 6() 75-8 96500 6/15+=9 >/<O V)+> F+3)-=C> F/+*5C B5= =)D of the respondents had very good e%perience ith the bank&s staff. 6ID of the :2:2: customers found their staff very friendly" hile only 1=D of S;: and 18D of 2itibank customers found their bank&s staff friendly. 8)D of the => respondents found their bank&s staff formal +G)D of :2:2:" )ID of S;: and G9D of 2itibank customers-. <ut of the 1GD
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ho felt that the bank&s staff attitude as bad 16D ere :2:2: customers" =>D ere S;: customers and 8)D ere 2itibank customers.
ATTITUDE OF THE STAFF 20 1$ 10 $ 0 ICICI SBI CB 4 1 4 8 3 $ $ 2 18 VERY FRIENDLY FORMAL BAD
Q.14. A+) 6() 2+/.)99 /0 >/<+ 75-8 9)+43.)9: E59> D3003.<C6 I6D of the total customers felt that bank processes for the delivery of services ere easy +6ID of :2:2: customers" G>D of S;: and 18D of 2itibank customers. <ut of the )>D ho felt the processes ere difficult )=D ere S;:" 1=D ere :2:2: and )>D ere 2itibank customers.
THE BANK ROCESSES ARE 20 1$ 10 $ 0 ICICI SBI CB # 2 16 13 9 3 EASY DIFFICULT
74
CONCLUSION
:2:2: has one of the largest bou5uet of services available and has been successful in positioning itself as a one/stop shop for various services. Fo ever 2itibank despite of large no. <f available services has not been very successful in convincing its customers. The entry of the large no. of private sector banks and foreign banks had a positive conse5uence for customers of public sector banks. Since scared of competition and under constant pressure of the threat of losing their customers to any of the above public sector banks improved the 5uality as ell as 5uantity of their services. *ublic sector charges for services are still very nominal compared to other banks. 2itibank&s service charges are considered to be the highest T4 is still the favorite among the consumers to see the advertisement of their brands. Although the most traditional and primitive method of spreading positive comments through ord of mouth is still being preferred by a large no. of customers. :nternet marketing has also set its foot in the marketing of banking services. Host of the :2:2: customers ere able to recall the advertisement ith Amitabh ;achchan talking about :2:2: bank and its services. :t seems that the bank&s aim of getting a place in customers mind has been largely fulfilled by taking a role model most of the :ndians can relate to and trust. Traditional form of banking by alk in still very popular even though banks are trying hard to convert these customers to ATHs. The other forms of banking are ay behind these t o and need to be pushed to the customers in the most effective and efficient manner. The banks need to create a areness among the customers about these methods. 2itibank needs to have far more branches then it currently has. :2:2:&s gro th and increase in the no. of branches has earned fruitful conse5uences ith most of its customers =)D satisfied ith the no. of branches. The change brought about in the banking industry due to various ne and technologically upgraded methods has been e%ponential. Host of the banks have changed their service pattern completely to stay upbeat ith these technological advances. These help not only in providing services in the most cost efficient and effective manner but also largely reduce the time and hassles involved. :2:2: has made the best use of these innovations hile the public sector banks like S;: has still ay to go to upgrade its systems and come to par ith other players in private sector. The ambience of a bank leaves a dark impact on the minds of the customers. :2:2: has completely renovated its banks according to the changing times. The ambience of 2itibank is also up to par ith other players. Fo ever the most commendable task has been performed by S;: hich has undergone a complete change in its interiors and dUcors ell as the presentation of brochures. Though not all branches have been totally revamped but ould soon be going on the same lines. The behavior of the S;:&s staff has also seen a great change in the recent years. Though still a lot of its customers are not satisfied ith the staff&s attitude. :2:2: and 2itibank customers are pretty happy ith the attitude of the staff.
Today" the customer is the master. Fe,She has a lot of choices to select from and if one has to retain one&s customers one ill have to ensure that that the customers get a much better deal from their banks. :n order to survive" all banks and financial services ould probably have to 5uickly and seriously re/evaluate their delivery strategy" if they have to survive in the market space. The :nternet is slo ly converting retail banking into a commodity here the days of loyalty to bricks and mortar banking are obsolete. ?urassic banking is passU. :n concluding one may state that :ndian banking in the ne%t millennium is likely to be driven by mergers" universal banking and :nternet technology. !hile mergers ill confer economies of scale" universal banking ill dismantle the barriers bet een the traditional dichotomies of financial services. !hile one reali$es the fact that the :nternet is likely to convert banking into a commodity one has to take into account that thirty years of solitude has steeped :ndian ;anks into a morass of inefficiency" slothfulness and complacency. :f :ndian banks refuse to visuali$e this trend they may ell be consigned to history. Fo ever" if they react proactively :ndian ;anks stand to gain a lot from the opportunities that 9/banking offers.
76
RECOMMENDATIONS:
;anks should go in for branding e%ercises comprising of t o parts3 enhance brand logo i.e. to make it more catchy and easy so that customers could relate to it" and secondly by focussing on service since hether in the bank or at the ATH service is key. Fence these should be incorporated in branding. ;anks like :2:2: can go into retail banking as it is the best long term solution for :2:2: to remain ith the A group of finance companies in the future. Assuming that :2:2: continues to gro at its historical rate of 1=Dper annum" five years from no " retail disbursals ill amount to a hooping Cs.1=">>> crore. :2:2: needs to move a ay from high risk" lo return business of pro6ect finance and venture into ne areas. :t also needs to focus on being the best and forego its earlier strategy of 6ust being the first of the block. :2:2: needs to remove laid back investor unfriendly unit approach. <f All the three concerned banks :2:2: needs to build a strong management team . ;anks need to have high investment in infotech hile at the same time should o n e%pensive premises in the most attractive locations. The banks should emphasi$e on being completely automated and provide information faster and keep fle%ible orking hours. They can use outsourced agents to contact customer directly. ;anks should ork to transform themselves into one stop shop for all financial services. ;anks should go for seamless connectivity for corporate customers" device neutral connectivity for retail consumers" cross selling and up selling using 2CH technologies" evaluating and enhancing the lifetime value of customers and so on. At the back end the head5uarters of all the banks should have a central serve that provides on a daily basis" the balance sheet of the bank" its asset liability profile" details of individual customer payments and the risk status of the assets. This ill help the bank to ensure that rogue employees aren&t abusing the po ers granted to them and still better ill improve the financial health of the banks. ;ranch banking is clearly out as it involved huge costs and also considered outdated in the ne technology age. So" the banks need to be here the customer is i.e. take bank to the customer&s door step through other distribution channels from :nternet to phone" even mobile banking. ;anks could opt for H0A ith one specific ob6ective to ac5uire customers and increase their geographic reach. This provides a lead of atleast 1G months and considering C;:&s branch licensing policy" it ould take atleast = years to get an all :ndia branch net ork. ;anks should improve their advertising and other means of promotion. This is so since hen there is no big benefit to offer because products have become standardi$ed" there is need to advertise to create a sharp reference and then preference.
77
The foreign banks such as 2itibank earlier restricted business to HE2s should no e%pand completely and strategically in the domestic market. F/+)3,- 75-8s should no mark some capital for their non/fund/based activities in their tier :: capital. this ould effect their balance sheets to some e%tent. B5-89 .5- (54) 2+/2)+ .5CC .)-6)+9 C38) ICICI. These provide the follo ing advantages3 1. A QSingle *oint <f 2ontactR to provide customers ith a uniform :nterface. G. ;etter service to customers by giving them consistent information and e%tended hours of service and hence promote cross selling. 8. Haintenance of contact history for all customers to have better understanding of customers& needs. ). To increase customer retention rate. MANAGING CUSTOMERS AS HUMAN RESOURCES B5-89 9(/<C= C)6 6).(-/C/,>% .C)5+3-, 5-= 7//8 8))23-, 658) 5 75.89)56 5-= 2<6 .<96/*)+ 9)+43.)9 3- 0+/-6. The idea here is to (look to your customers to increase productivity( to borro from the title of a classic" but some hat overlooked" FAC4AC# ;AS:E9SS C94:9! article by 2hristopher Kovelock and Cobert Joung. *erhaps the thought of (making customers serve themselves( or (having them do some of the ork themselves( seems out of step ith these times in hich businesses are constantly chided to pamper and delight their customers. Jet customers can obtain delight from serving themselves if it provides them ith a greater sense of control over the service production process. PERFORMING A CUSTOMER AOB ANAL#SIS : A 6ob analysis specifies the critical behavioral re5uirements of a position. :t details" for e%ample" the most important and most common behaviors needed to perform the 6ob satisfactorily. *recisely hat is it that e ant our customers to doM The ay e have been thinking about this is to put customers on a kind of service co/production time line and figure out hat e ant them to do on that time line. There are four stages in the customer's 6ob3 J1K T() 2+)B9)+43.) )-./<-6)+ J2K T() )-./<-6)+ 369)C0 J3K D)B./<2C3-, J4K P/96B)-./<-6)+ R)./4)+> A.63/-9: / Firms can sometimes bounce back from broken promises through acts of recovery. Fere" too" fairness comes in to play. There is research sho ing that customers feel their complaints have been dealt ith more fairly hen recovery is handled (by the book(. 2ustomers seem to get greater peace of mind from kno ing that the effective handing of their complaints as because of in/place company policies rather than to their having been lucky enough to have stumbled upon one particular employee ho happened to figure out hat to do on his or her o n. AFTER SALES SERVICES: Fistorically" after/sales service as regarded in most manufacturing companies as a necessary evil / as a supporting but relatively minor function in the overall function of
7!
the organi$ation. !hile it as reali$ed that it as important to provide a reasonable level of after/sales service" the role and function of service as generally vie ed purely as a cost center. As consumers gre more sophisticated" they became less illing to accept poor 5uality goods and services. The banking organi$ations should to reali$e that by offering guarantees and service arranties they could enhance their competitive position. CUSTOMER CARE PROGRAMMES Service organi$ations are particularly dependent on levels of customer care" as the 'people' element in the marketing mi% reflects. For customer care programmes to be successful they need to span the entire organi$ation. Training ill not ork if it is carried out on a piecemeal basis and should be supported all the ay from the top. Customer care ro!rammes "#$$ t% #ca$$% &e com r#se' o( s#) ma#* sta!es+ <b6ective setting3 #efine the programme ob6ectives 2urrent situation analysis3 2onduct a customer service audit / internally and e%ternally Strategy development3 #evelop a strategy for raising levels of customer service from the current to the desired standard. Functional planning3 #efine training needs and other re5uirements to e%ecute the strategy :mplementation3 :mplement training and other initiatives through orkshops" seminars. *romote the programme both internally and e%ternally" develop internal marketing programmes. Honitoring3 Test results through customer and employee surveys" evaluate the training methods. :mprove and update the programme on a continuous basis. N)1 9),*)-69 9<.( 59 2hildren and teenagers are a keen target market for the banks because of the possibility of the future business. F/+ ./**<-3.563/- 96+56),>3 The banks should try to reflect a consistent and attractive personality in all manifestation of organi$ation that reaches the public. Also they should aim for a recogni$able human personality to compensate for intangible,diverse Lproduct& and incorporate the staff as the key T.A. #uring communication the banks should emphasi$e in the speciali$ation rather then all the things for all the people" hich could help in creating a uni5ue positioning. <ne of the best strategies is customer retention. Koyal customers ho keep purchasing are e%tremely valuable. This could be done by having a database marketing here customer buying histories and other information can be listed on a database" and then referenced and cross/referenced in the future to target ne products or promotions accurately. A market research should be conducted by the banks to find out about the customers ho have defected. A research is important to establish hy customers defect" as studies sho s that a huge proportion of dissatisfied customers don&t complain and simply stop using the service. ;y the same token" customer complaints handling procedures process should be handled out carefully to ensure that - the complaint is rectified and the customer is satisfied.
7" CENTER OF INTERNATIONAL BUSINESS% ABS
/the necessary action is taken to prevent that problem from occurring again. *roper monitoring of service 5uality should take place. This is done under the follo ing headings/ :nternal performance analysis 2ustomer satisfaction analysis Specialist market research ;anks like S;: should emphasi$e more on :nternet banking. :2:2: is already cashing on it. e/mail is the sleeping giant of the marketing mi%" and its appropriate and strategic use can help businesses reach e%isting markets" and ne markets" cost/effectively and ith a high success rate. @raeme 4ictor" H# of !orld <nline" says many companies are loath to use e/mail as a marketing tool because they are concerned ith spamming and damaging their brand. they vie it as inappropriate for leading brands. and they do not believe they ill obtain sufficiently high response rates. Eet banking though is convenient but the fact that there is no human interface is unnerving some customers. So banks should try to personali$e the online site as much as possible. <f the top ten internet banking sites 2itibank :ndia32itidirect holds the Gnd position hile :2:2: bank3 :nfinity holds the 8rd position. R)C563/-9(32 B5-83-,: The modern bank cannot rely on its branch net ork alone. 2ustomers are no demanding ne " more convenient" delivery systems. And services such as :nternet banking have a dual role to the customer. They provide traditional banking services" but additionally offer much greater access to information on their account status and on the bank&s many other services. To do this banks have to create information layers" hich can be accessed both by the bank staff as ell as by the customers themselves. THE BANKS CAN HAVE EXTENSIVE ONLINE ADVERTISING @artner @roup recently provided a guideline to marketing managers ho need to determine the true costs of online banner advertising and opt/in e/mail marketing compared to traditional print +offline- marketing campaigns. :t says marketing managers are struggling to divide increasingly limited marketing budgets among various online and offline marketing platforms. B5--)+ A=4)+6393-,3 !eb/based advertising revenue is shrinking for many !eb sites" and banner advertisement 2*H +cost per thousand impressions- rates are plummeting. Thanks to the (e/advertising la of diminishing returns"( this is a natural progression for banner advertising as the :nternet continues to gro . O26BI- EBM53C M5+8)63-,3 #irect e/mail marketing has response rates of = percent to 1= percent" e%ceeding those of online banner ads and traditional direct mail +1 percent to 8 percent-. #ra n by high response rates and perceived lo er costs" t o/thirds of @lobal 1>>> companies have allocated as much as = percent of their marketing budgets for e/
!$
mail campaigns. 9nterprises are also building their o n e/mail marketing lists from storefronts" !eb sites" catalogues and public events. The cost of ac5uisition for these efforts ill vary greatly. 9/mail list rental rates are dropping" especially on the business/to/consumer side. ?ust as traditional marketers use publications" T4" radio" trade sho s and many other forms of media to create a (mi%( that reaches the right audience in the right ay" so should online marketers use e/mail and banner ads as part of an overall marketing mi%. B5-83-, /- 65+,)6)= *5+8)63-, B5-89 9(/<C= -/1 9.5-9 5CC /0 369 .<96/*)+9 0/+ 45C<)% +398% 566+363/-% 5-= 2+/2)-936> 6/ 7<>. 2ontrary to popular belief" banks do have many unprofitable customers. A 2CH report issued by the AB/based 2ranfield School of Hanagement" assisted and sponsored by 2omputer Sciences 2orporation +2S2-" finds that each year a 5uarter of ne customers at AS banks never generate enough revenue to offset basic ac5uisition costs. An additional 8> percent never generate enough income to make a positive contribution to profits. The report found that most banks are not doing effective database/driven targeted marketing. :n fact" only one in eight banks adopt targeted marketing using an enterprise/ ide strategy /that is" developing campaigns based on an understanding of the customer's value to the bank across product areas. ATM9: T() N)1 R/C) M/=)C9 B5-89 9(/<C= +)5=> 6()3+ ATM 0C))69 6/ )?2C/+) -)1 0+/-63)+9 3- 9)+43.) The banks can make ATH screens blossom ith high/resolution color" featuring ne s" entertainment and advertisements. <f course" cash and stamps still are available" but no so are movie tickets" coupons and maps. !ith a realm of possibilities as vast as cyberspace" these devices can be dressed to impress/and financial institutions take notice. Some board the band agon" initiating pilot programs that offer a range of banking features on customi$ed ATHs. <thers are more cautious. And all ait for a measure of supercharged success. Ee er ATH services" such as bill payment and ticket offerings" can be introduced. ;anks should really look at their ATHs not as product sellers" but as relationship devices. <ne ay that !eb/enabled machines can enhance customer relationships is by interfacing ith home computers. :t really is talking about personali$ing that ATH e%perience/personali$ing the transaction e%perience for your customers.( #eveloping ATH technologies could bring benefits to F:s" too" 9arley says. (: think access to the :nternet is another method of communicating that decreases the number of technologies they need to support and put things on a centrali$ed platform. And that may be important to the banks. the ,erma Comm#ttee recommended the need for greater use of :T even in the eak *ublic sector banks. Actually" the nationali$ation of banks back in the 8>s is proving to be a ma6or obstacle in bringing about the re5uired technological changes. Eationali$ation of the banking sector has led to occurrences of pseudo developmental
!1
activities for nurturing vote banks" loss of accent on performance and profitability" creation of unions etc to name a fe . Today" technology savvy private banks are making the most out of opportunities thro n up by the :nternet leaving behind their slo moving public sector counterparts in valuations as ell as gro th. Eo " hen one considers the fact that public sector banks dominate the banking landscape in :ndia" one reali$es that a lot has to be done and done 5uickly for :ndia to catch up on 9/banking. *resently there are 88 private banks and )8 foreign banks but the GI public sector banks mop up the bulk of the business. They account for over 8)D of the total deposits and over 8GD of the total banking advances in :ndia. :n the ords of Hr. ;andi Cam *rasad" 2hief 9conomist" :ndian ;anks Associations" If Indian banking system has to undergo a transformation, then the public sector banks must be in the forefront of the change.R ;efore e delve into the problems plaguing the public banks a look at the present scenario in :ndia acts as an eye/ opener. B5-89 9(/<C= 2<6 */+) )*2(5939 /- RURAL BANKING About I=D of the :ndian population lives in rural areas and about 8>D of this population is dependent on agriculture for its livelihood. Agriculture accounts for about 8ID of the national income. The development of the rural areas and of agriculture and its allied activities thus becomes vital for the rapid development of the economy as a hole. :n this regard" :ndia has succeeded in developing one of the largest rural banking systems in the orld. 4arious regulatory measures have been taken enabling the banking system to play an important role in the economic development of the rural areas. B5-89 9(/<C= ,/ 3- 0/+ +<+5C ./**)+.35C 75-8 7+5-.( )?25-93/-% 6(<9 */43-, 0+/* .C599 75-83-, 6/ *599 75-83-, 5-=
!2
LIMITATIONS:
The preference of various customers may be a bit influenced since most of the respondents ere from #elhi and E2C. Since the data has been collected from a variety of primary and secondary sources there might be slight inaccuracy in conclusion. Since the 5uestionnaire as structured" non/disguised type" it prevented me from probing the respondents for more e%planation on certain topics. Eumber of customers,respondents for each bank as different and hence the final ratio of response varied.
!3
ANNEXURE
!4
ANAL#SIS OF QUESTIONNAIRE:
!hat does the consumer believe about the marketing mi% of the above three banks3 Q.1. W(3.( /0 6() 0/CC/13-, 75-8 =/ >/< 5453C 9)+43.) /0 : ICICI SBI CITIBANK Q.2. W(56 5+) 6() 9)+43.)9 6(56 >/< ,)-)+5CC> 5453C 0+/* 75-89O ATM C+)=36 C5+= L/5-9 O6()+9 J9543-,9 P=)2/9369K Q.3. A+) 5CC >/<+ 03-5-.35C +)M<3+)*)-69 *)6 )00).634)C> 136( >/<+ 75-8O #)9 N/ Q.4. D/ >/< 0))C 136( 6() 3-6+/=<.63/- /0 2+3456) 5-= 0/+)3,- 75-89 6() 9)+43.)9 /0 2<7C3. 9).6/+ 75-89 (54) 3*2+/4)=O #)9 N/ Q. . A+) 6() 9)+43.) .(5+,)9 /0 >/<+ 75-8 : H3,( L/1 R)59/-57C) Q.6. W(56 39 6() 7)96 9/<+.) /0 2+/*/63/- 7> 1(3.( >/< ,)6 6/ 8-/1 57/<6 6() -)1 9)+43.)9 2+/43=)= 7> >/<+ 75-8O T.V. P+3-6 I-6)+-)6 W/+= O0 M/<6( Q.7. A+) 6() 2+/*/63/-5C 9.()*)9 /0 >/<+ 75-8 522+/2+356) 5-= <-=)+965-=57C)O #)9 N/ Q.!. C5- >/< +).5CC 6() C596 5=4)+639)*)-6 /0 >/<+ 75-8 3- 6() *)=35 >/< ./-93=)+ 59 7)96O #)9 N/ Q.". B> 1(3.( 9/<+.) =/ >/< ,)-)+5CC> 2)+0/+* >/<+ 75-83-, 0<-.63/-9O
W5C8 IATM T)C)2(/-) H/*) C+)=36 C5+= I-6)+-)6 Q.1$. A+) 6() 7+5-.()9 /0 >/<+ 75-8 13=)92+)5=O #)9 N/ Q.11. H/1 *<.( =/ >/< 0))C >/<+ 75-89 9)+43.)9 (54) 3*2+/4)= 7> *)5-9 /0 -)1 6).(-/C/,3.5C ,5=,)69O V)+> M<.( N/6 M<.( N/6 AT ACC Q.12. H/1 =/ >/< 03-= 6() 5*73)-.) /0 >/<+ 75-8O V)+> G//= A4)+5,) P//+ Q.13. H/1 39 6() 56636<=) /0 6() 75-8 96500 6/15+=9 >/<O V)+> F+3)-=C> F/+*5C B5= Q.14. A+) 6() 2+/.)99)9 /0 >/<+ 75-8 9)+43.)9: E59> D3003.<C6
!6

Marketing Mix in Banks

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Marketing Mix in Banks

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY LIST OF FIGURES S.NO.

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

INTRODUCTION TO PRESENT PROBLEM

Vital stats for private sector banks:

IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

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INTRODUCTION TO BANKING INDUSTR#

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

ENVISIONING THE FUTURE OF BANKING

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

THE NEED FOR BETTER MARKETIN MIX:

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

INTRODUCTION TO SERVICES MARKETING

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

EXPANDING THE MARKETING MIX FOR SERVICES MARKETING

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IN-DEPTH STUDY OF MARKETING MIX OF BANKING INDUSTRY

THE BANKING MARKETING MIX: