Вы находитесь на странице: 1из 148

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Indian Institute of Planning and Management, Ahmedabad

Thesis Topic
EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Alumni Reference Number

ID No:-SS/06-08/AHD/MKTG/4

Submitted By Balbir Singh Kalwan PGP/SS/06-08

Guided By

Prof. Pabitra Chakravorty


The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Thesis Topic
EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Alumni Reference Number

ID No:-SS/06-08/AHD/MKTG/4

Student Name

Thesis Guide

Balbir Singh

Prof. Pabitra Chakravorty

Signature of Student

Signature of Thesis Guide

(Balbir Singh Kalwan)

(Prof. Pabitra Chakravorty)

Submission Date:The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

LETTER OF CONSENT
To, The Dean, IIPM Ahmedabad, 19, Inquilab Society Gulbai Tekra Ahmedabad-380015

Date: November 20, 2007

Respected Sir,

Subject: Letter of consent

I Prof. Pabitra Ranjan, an internal faculty of your esteemed institute here by informs that Mr. Balbir Singh, a student of PGP/SS/06-08, have expressed his interest in writing a thesis on EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING and has requested me to guide him through the same.

This is to inform that I will assist him as a guide for his thesis on the above mentioned topic and extend his knowledge and help in all possible ways.

Thank You

Prof. Pabitra Ranjan

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

LETTER OF APPROVAL

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Project Proposal Format

Name of the Student:-Balbir singh kalwan

Batch: PGP/SS/06-08

Student id No. A0608SS10047

Specialization: Major: Finance Minor: Marketing

Project title: EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING Why you choose this project?
Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of an unsuspecting person's time to inform him or her of the amazing and different attributes of the product at hand. Because of the constant media saturation that most people experience daily, they eventually become numb to the standard marketing techniques so to learn effective brand building strategy through online marketing.

Research objective(S):y y To study the role of online marketing influences on consumer buying behavior To study whether online marketing contributes towards building Brand image and

Brand preference.

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

To know as a Brand manager all the required attributes to be considered before

selecting online marketing y To study the difference between online marketing and conventional marketing

activities.

Commercial viability
1) This helps the companies to understand, Internet has the power to revolutionize brand building, to create new forms of differentiation, to make brand-building programs more effective, and to help companies move toward the elusive goal of providing integrated, consistent, and synergistic brand building. 2) Potential to provide a unifying link among the totality of communications efforts

that surround a brand. 3) Helping the company improve its brand building and sales efforts while

galvanizing support in the consumer marketplace.

Data collection Methodology:Primary data: - The method of Personal interview through structured

Questionnaire and Group discussion will be used to collect the data.

Data collection methods: The data will be collected by conducting personal interview through structured questionnaire and the method for collection will be convenience sampling (Non probability sampling).

Secondary data: - Help of Books, periodicals, project reports and Internet will be

taken to collect the data.

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

PREFACE

Subject of Study:
EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

BRANDING:

A brand is a product, service, or concept that is publicly

distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names.

E-MARKETING: Very simply put, E-Marketing or electronic marketing refers


to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms E-Marketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers. By such a definition, eMarketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Motive of Study: The motive of study of this research based project is to examine
the E-marketing strategies for building brand for Banking Industries and give it to the company for better results.

Area of Study: The area of study was restricted only to check the effectiveness of
brand building for positioning that was done by different Banks through the medium of advertisements with electronic media. Than on the basis of that we to make or develop the branding strategies for Banks through online marketing

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

ACKNOWLEDGEMENT

Our sincere thanks to all the Professors and other faculties of Indian Institute of Planning and Management, Ahmedabad for helping us to make this project a wonderful experience for us to work on. I would like to specially thank Prof. Pabitra Ranjan for making us understand the importance and the value of this project. This has helped us in Analyzing the EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

I would also like to thank all people who have contributed in making this project a good one. We would also like to thank our class mates and other students of our institute who have given valuable contribution in more than one ways.

The Indian Institute of Planning & Management-Ahmedabad

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

EXECUTIVE SUMMARY

First of all in this project we have studied about the technical Features and over all features of E-BANKING and Online Marketing, then we have found out the no. of players in E-Banking such as ICICI BANK, HDFC BANK, AXIS BANK, HSBC BANK, SBI and BANK OF BARODA, then we have found out the Major difference in the attributes of BANKS as we have mention in our report. On the basis of the attributes we have done the Exploratory Research and prepared a Structured Interview to know that what makes customers to use E-Banking? On that basis we come to know about the psychology of consumers and also come to know what makes a consumer to use EBanking and why they prefers particular Bank Then on that basis we have made the

Questionnaire on rating basis like a likert scale to know the attitude and perception of the people about Banks. Then we have analysis the Questionnaire by using the Software called SIMSTAT and we have done Factor Analysis. We have 16 attributes in our research and by using the software we have converted that 16 attributes in 2 Factors and name them according to there relation such as E-MARKETING STRATEGIES and BRAND BUILDING by taking the means of attributes we have plotted that in perceptual mapping and come to know the position of different Banks and on that basis we come to know how online marketing help the banking Industries to Build a Brand

The most important strategy decisions are targeting and positioning. Once you nail these, everything else follows. Phil Kotler

Because its purpose is to create a customer, the business enterprise has two and only twobasic functions: marketing and innovation.

The Indian Institute of Planning & Management-Ahmedabad

10

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Marketing and innovation produce results; all the rest are costs. Peter Drucker

Advertising being the most important tool in communicating about the company, product, concept, service etc, companies invest huge money in this but how far these investments give results is what was out motive of this project. We picked up the ONLINE MARKETING, how its effects Banking industries for Building Brand

The Indian Institute of Planning & Management-Ahmedabad

11

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

INDEX
PRELIMINARIES
Letter of Consent.3 Letter of Approval ..4 Project Proposal Form5 Preface..7 Acknowledgement...9 Executive Summary....10

LITERATURE REVIEW
Chapter 1: Introduction 1.1 Introduction of Banking ..16 1.2 Banking Sector in Budget 200820 1.3 Opportunity in Banking sector.22 1.4 Challenges Facing Banking Industries in India..24

Chapter 2: Online Marketing and E-Banking 2.1 What is E-Marketing and how is it better than Traditional Marketing.30 2.2 E-Banking...34 2.3 Internet Banking55

The Indian Institute of Planning & Management-Ahmedabad

12

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Chapter 3: Brand Building through Online Marketing 3.1 The Internet as Integrator Fast Brand Building in Slow-Growth Markets.................................................................................................60 3.2 Internet Brand Buildings Five Success Factors.73 FEASIBILITY STUDY Chapter 4: Research Methodology Primary Research 4.1 Introduction of Factor Analysis....78 Findings from the Questionnaire 4.2 Research Findings......................................................................81 4.3 Factor Analysis Test...84 4.4 Perceptual Mapping...93 4.5 Chi-Square Test..95

Secondary Research 4.6 Case Studies99 Chapter 5: Conclusions & Recommendations 5.1 CONCLUSIONS...117 5.2 RECOMMENDATIONS..123

Chapter 6: Annexure

Bibliography...140 Questionnaire.....141 Response Sheets.143

The Indian Institute of Planning & Management-Ahmedabad

13

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

TABLES: Table No.


Table No. 1 Table No. 2 Table No. 3 Table No. 4 Table No. 5 Table No. 6 Table No. 7

Particular
Common E-banking services Software for e-banking Benefits of e-banking Marketing Strategies Brand Building Average of Both the Factors

Page No.
42 44 53 89 90 91

Table No. 8

Brand Building can be done through 96 online marketing preference of 100 customers Directions for Setting up Worksheet for 97 Chi Square

The Indian Institute of Planning & Management-Ahmedabad

14

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Chapter 1:
Introduction
1.1 Introduction of Banking 1.2 Banking Sector in Budget 2008 1.3 Opportunity in Banking sector 1.4 Challenges Facing Baking Industries in India

The Indian Institute of Planning & Management-Ahmedabad

15

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Introduction of Banking Industry


With the Indian economy moving on to a high growth trajectory, consumption levels soaring and investment riding high, the Indian banking sector is at a watershed. Further, as Indian companies globalize and people of Indian origin increase their investment in India, several Indian banks are pursuing global strategies, the industry has been growing faster than the real economy, resulting in the ratio of assets of commercial banks to GDP increasing to 92.5 per cent at end-March 2007. The Indian banks have also been doing exceptionally well in the financial sector with the price-to-book value being second only to china, according to a report by Boston Consultancy Group. Consequently, the degree of leverage enjoyed by the banking system, as reflected in the equity multiplier (measured as total assets divided by total equity), has increased from 15.2 per cent at end March 2006 to 15.8 per cent at the end of March 2007.

Growth
A burgeoning economy, financial sector reforms, rising foreign investment, favorable regulatory climate and demographic profile has led to India becoming one of the fastest growing banking markets in the world. The overall banking industry's business grew at a CAGR of about 20 per cent from US$ 469.4 billion as of March 2002, to US$ 1171.29 billion by March 2007. Aggregate bank deposits of banks increased by US$ 129.26 billion (22.1 per cent) at the end of March 2007 over the corresponding in 2006. In the current fiscal, aggregate bank deposits increased by 23.8 per cent, year-on-year, as of January 4, 2008 as against 21.5 per cent a year ago. While aggregate demand deposits increased by 15.6 per cent, aggregate time deposits increased by 25.3 per cent in the same period, indicating migration from small savings schemes of the Government. Similarly, aggregate deposits of the scheduled commercial banks (SCB), after growing by 17.8 per cent and 24.6 per cent in 2005-06 and 2006-07, rose by 25.2 per cent, year-on-year, as on January 4, 2008. In fact, the absolute increase of US$ 96.34 billion (14.6 per cent) in the current fiscal year up to January 4 2008 was higher than the US$ 70.59 billion (13.2 per cent) increase in the same period last year. Simultaneously, loans and advances of SCBs

The Indian Institute of Planning & Management-Ahmedabad

16

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

rose by over 30 per cent (i.e. 33.2 per cent in 2004-05, 31.8 per cent in 2005-06 and 30.6 per cent in 2006-07) in the last three financial years, underpinned by the robust macroeconomic performance. The growth has continued in the current fiscal with nonfood credit by SCBs increasing by 22.2 per cent, year-on-year, as on January 4, 2008. Significantly, the asset quality of the banks has also improved over this period. The gross non-performing asset (NPA) as a per cent of total assets has declined from 4 per cent as of March 2002 to 1.46 per cent as of March 2006. Simultaneously, the capital adequacy ratio of all SCBs has improved from 11.1 per cent as of March 2002 to 12.3 per cent by March 2007

Private Sector
Ever since the banking operations had been opened to the private sector in 1990s, the new private banks have been increasing its role in the Indian banking industry. Against the industry average growth of about 20 per cent in the past five years, the new private sector banks registered a growth of about 35 per cent per annum, growing from US$ 41.63 billion as of March 2002 to US$ 186.71 billion by March 2007. Consequently, new private banks market share has increased from about 9 per cent in 2001-02 to 16 per cent as of March 2006-07. Foreign banks, which totaled 29 in June 2007, have also been expanding at a rapid pace. For example, India was the fastest growing market for Global banking major HSBC in 2006-07, with a growth rate of 64 per cent. The balance sheet of private banks and foreign banks in India expanded by 38.7 per cent and 39.5 per cent during 2006-07, taking their combined share (along with private banks) in total assets of the banking sector to grow from 22.3 per cent at the end of March 2006 to 24.9 per cent by March 2007.

The Indian Institute of Planning & Management-Ahmedabad

17

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Investment Banking
The flurry of mergers and acquisition deals by Indian corporate has boosted the investment banking revenues to a record high. According to Dealogic, an international firm that tracks global M &A transactions, investment baking revenues from India crossed the US$ 1 billion mark for the first time in 2007 to US$ US$ 1.069 billion. This is significantly higher than the US$ 400 million investment banking revenues recorded in 2006. Also, this surge in revenues has propelled India to become the third largest market for investment banking in Asia-Pacific in 2007.

Potential
While this growth has been very impressive, the potential banking market waiting to be tapped in India is still fairly huge. Out of the 203 million Indian households, threefourths, or 147 million, are in rural areas and 89 million are farmer households. In this segment, 51.4 per cent have no access to formal or informal sources of credit, while 73 per cent have no access to formal sources of credit. In fact, according to a report by Boston Consultancy Group, India has the second largest financially excluded households of about 135 million, which is next only to china. Also, about 60 million new households are expected to be added to India's bankable pool between 2005 and 2009. With such a large untapped market, the Indian banking industry is estimated to grow rapidly, faster than even china in the long run.

Among the Best


Indian banks are one of the most technologically advanced with vast networks of branches empowered by strong banking systems, and their product and channel distribution capabilities are on par with those of the leading banks in the world, says a survey by McKinsey. It also reveals that IT effectiveness at the top Indian banks is world class. With the economy in overdrive and buoyancy in consumption and investment demand, nine Indian banks, led by HDFC Bank and ICICI bank, have made it to the top 50 Asian Banks list in Asian Bankers 300 report. Simultaneously, State Bank of India has

The Indian Institute of Planning & Management-Ahmedabad

18

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

become the top loan arranger in the Asia-Pacific region in 2007, according to UK based Project Finance International (PFI). Also, India emerged as the top provider of educational loans worth US$ 3.67 billion till September in 2007.

Road Ahead
Banks aspiring to become global must have a presence in India and other merging markets, says a report of consultancy major Ernst & Young, as they are set to become a major source of financial sector revenue and profit growth. As the Indian banking industry continues its rapid growth along with rise in financial services penetration in the Indian economy, the industry's profit is likely to simultaneously surge ahead. According to a report by Boston Consultancy Group, the profit pool of the Indian banking industry is estimated to increase from US$ 4.8 billion in 2005 to US$ 20 billion in 2010 and further to US$ 40 billion by 2015. Simultaneously, driven by the expansion of the middle class population, increase in private banks and the burgeoning national economy, the domestic credit market of India is estimated to grow from US$ 0.4 trillion in 2004 to US$ 23 trillion by 2050. With such a favorable scenario, India is likely to emerge as the third largest banking hub in the world by 2040, says a price water house Coopers report.

The Indian Institute of Planning & Management-Ahmedabad

19

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Banking Sector in Budget 2008


The Union Budget of India for the year 2008-2009 was announced by the Indian Finance Minister, Mr. P Chidambaram, on 29th February 2008. The policies and initiatives taken in the Union Budget of India 2008-2009 on the Indian Banking sector were in tandem with the requirements of the Indian economy.

Small and marginal farmers have been relieved of all farm loans, disbursed till March 2007 and also all loans, which are due till December 2007 and were unpaid till February 2008. These farm loan waivers would be facilitated by all the concerned Public Sector Banks and Regional Rural Banks of India. A total of Rs 60,000 crores would be waivedoff under such scheme. The settlement of these loan-waivers will be offered through special type of scheme. Further, the Public Sector Banks and Regional Rural Banks of India were also suggested, to bring within their fold, a minimum of 250 rural household accounts at every branch every year. The Indira Awas Yojana was brought under the ambit of Public Sector Banks. Loan limit up to Rs 20,000 per unit at 4% interest was fixed under differential rate of interest (DRI) scheme. The Finance Minister also advised the Indian PSU Banks to open 288 branches in minority districts of India. Further, he also asked the Indian banking industry to embrace total financial inclusion. In another landmark decision, the Finance Minister, Mr. P. Chidambaram said that the Ex-banking servicemen in India would be offered employment opportunities in the banking sector. Another major announcement was that, the much talked-about 'Banking Cash Transaction Tax (BCTT)' would be withdrawn from the financial year 2009-2010.

Experts believe the impact of the decisions and policies taken during the Union Budget of India 2008-2009 on the Indian Banking sector would be mixed. It is expected that the Indian PSU banks will face pressure on their net interest margins due to the waiving-off of agricultural loans. Further, the cumulative cost that will be incurred for opening up of new Regional Rural Banks in India may substantially increase the operating cost for the banks. The inclusion of the Indira Awas Yojana houses under the differential rate of

The Indian Institute of Planning & Management-Ahmedabad

20

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

interest scheme and at 4% interest will increase the proportion of sub-PLR lending for the concerned banks.

The major Public Sector Banks of India like the State Bank of India, Bank of Baroda, and Punjab National Bank may see their net interest margins shrinking till the subsidy for waiver of agricultural loans is being completely released. Moreover, experts are skeptical about the long term benefit of such agricultural loan waiver as offered through the Union Budget of India 2008-2009.

The Indian Institute of Planning & Management-Ahmedabad

21

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

OPPORTUNITIES IN INDIAN BANKING SECTOR


"Opportunities in Indian Banking Sector" - provides extensive research and rational analysis on the Indian banking industry. This report has been made to help clients to evaluate the opportunities, challenges and driving forces critical to the growth of banking industry in India. The forecast given in this report is not based on a complex economic model but is intended as a rough guide to the direction in which the market is likely to move. The future projection is done on the basis of the current market scenario, past trends, and rules and regulations laid by the regulator and supervisor of the financial system, Reserve Bank of India (RBI).

The report provides detailed overview of the Indian banking industry by contemplating and analyzing various parameters like assets size, and income level. It helps clients to understand various products available in the Indian banking industry and their future scope.

The future forecast discusses the future prospects of different arms of banking industry including rural banking, bancassurance, financial cards, mobile banking, role of technology in rural banking, pension funds, and the future course of action and strategies for pension fund industry to be taken at macro level.

Key Findings of the Report


y

Pension fund industry in India grew at a CAGR of 122.44% from 1999-00 to 2006-07.

Rural and semi-urban India is expected to account for 58.33% of the insurance sector by 2010.

The Indian Institute of Planning & Management-Ahmedabad

22

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

In terms of ownership, debit cards are more in number than credit cards but in terms of transactions, credit cards are used more than debit cards.

The ATM outlets in India increased at a CAGR of 28.09% from March 2006 to March 2007.

y y

Rural and semi-urban centers account for 66% of total bank branches. Indian Mutual Fund industry witnessed a growth of 49.88% from May 2006 to May 2007, and higher growth is recorded in closed ended schemes at 215.61%.

Increasing number of millionaires in India is increasing the scope of Wealth Management Services.

Bankable households in India are anticipated to grow at a CAGR of 28.10% during 2007-2011.

Investment by banking sector in Information Technology is expected to increase at 18% in 2007 from last year.

Key Issues & Facts Analyzed in the Report


y y y y y y

Market analysis of different product segments in the banking industry. Evaluation of current market trends. Basel II Accord and capital requirement by Indian Banking Industry. Role of technology in banking industry. Pension fund industry in India. Urban Vs rural banking in terms of deposit, branches, and credit and future outlook of rural banking.

y y

Drivers and constraints for credit and debit cards industry in India. Analysis of various challenges and opportunities for the industry.

The Indian Institute of Planning & Management-Ahmedabad

23

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Challenges facing Banking industry in India


The banking industry in India is undergoing a major transformation due to changes in economic conditions and continuous deregulation. These multiple changes happening one after other has a ripple effect on a bank (Refer fig. 2.1) trying to graduate from completely regulated sellers market to completed deregulated customers market.

Source: - http://www.ecs-limited.com/download/Challenges%20facing%20Banking%20Industry%20in%20India.pdf

Deregulation: This continuous deregulation has made the Banking market extremely
competitive with greater autonomy, operational flexibility, and decontrolled interest rate and liberalized norms for foreign exchange. The deregulation of the industry coupled with decontrol in interest rates has led to entry of a number of players in the banking industry. At the same time reduced corporate credit off take thanks to sluggish economy has resulted in large number of competitors battling for the same pie.
The Indian Institute of Planning & Management-Ahmedabad

24

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

New rules: As a result, the market place has been redefined with new rules of the
game. Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer. Natural fall out of this has led to a series of innovative product offerings catering to various customer segments, specifically retail credit.

Efficiency: This in turn has made it necessary to look for efficiencies in the business.
Banks need to access low cost funds and simultaneously improve the efficiency. The banks are facing pricing pressure, squeeze on spread and have to give thrust on retail assets

Diffused Customer loyalty: This will definitely impact Customer preferences, as


they are bound to react to the value added offerings. Customers have become demanding and the loyalties are diffused. There are multiple choices; the wallet share is reduced per bank with demand on flexibility and customization. Given the relatively low switching costs; customer retention calls for customized service and hassle free, flawless service delivery.

Misaligned mindset: These changes are creating challenges, as employees are


made to adapt to changing conditions. There is resistance to change from employees and the Seller market mindset is yet to be changed coupled with Fear of uncertainty and Control orientation. Acceptance of technology is slowly creeping in but the utilization is not maximized.

Competency Gap: Placing the right skill at the right place will determine success.
The competency gap needs to be addressed simultaneously otherwise there will be missed opportunities. The focus of people will be on doing work but not providing solutions, on escalating problems rather than solving them and on disposing customers instead of using the opportunity to cross sell.

The Indian Institute of Planning & Management-Ahmedabad

25

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Strategic options with banks to cope with the challenges


Leading players in the industry have embarked on a series of strategic and tactical initiatives to sustain leadership. The major initiatives include: Investing in state of the art technology as the back bone of to ensure reliable service delivery Leveraging the branch network and sales structure to mobilize low cost current and savings deposits Making aggressive forays in the retail advances segment of home and personal loans Implementing organization wide initiatives involving people, process and technology to reduce the fixed costs and the cost per transaction Focusing on fee based income to compensate for squeezed spread, (e.g. CMS, trade services) Innovating Products to capture customer mind share to begin with and later the wallet share Improving the asset quality as per Basel II norm

The Indian Institute of Planning & Management-Ahmedabad

26

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Transformation initiatives needed for banks

Source: - http://www.ecs-limited.com/download/Challenges%20facing%20Banking%20Industry%20in%20India.pdf

The ECS value proposition for helping banks in their transformation agenda

We at ECS Limited have vast experience in partnering with leading players in banking for addressing these challenges in a holistic manner. Our expertise is reflected in our product offerings for addressing the key challenges. A select few are outlined below: Strategy o Sales & Marketing strategy for both retail & wholesale banking o Expanding geographies

The Indian Institute of Planning & Management-Ahmedabad

27

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Brand o Understanding the values of the brand o Repositioning the brand to communicate the values

Organization restructuring o Re organization of the bank in line with the strategic thrust

Re engineering of the key business processes o Redesign of Sales processes to increase conversion ratio o Six Sigma process improvements for branch channel, Call Center & back office processes o Centralization of branch operations and deferred processes to free up resources

Cost efficiency o Reduction in Total cost of acquisition o Reduction in Transaction costs o Reduction in fixed and overheads cost

Right sizing and matching of skills o Manpower modeling for branch & back office at various volume scenarios o Productivity improvement for sales & service functions o Competency Assessment & profiling

Creating a high performing organization o Define new roles & responsibilities, KRA o Assessing competencies of people across levels and match the position with the skill set o Designing and implementing a new PMS for restructured organization

Change management & creating a new mind set o Developing critical mass of champions and drive Change across the organization to move from conventional banking to new age banking.

The Indian Institute of Planning & Management-Ahmedabad

28

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Chapter 2:
Online Marketing and E-Banking
2.1 What is E-Marketing and how is it better than Traditional Marketing. 2.2 E-Banking. 2.3 Internet Banking.

The Indian Institute of Planning & Management-Ahmedabad

29

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

What is E-Marketing and how is it better than traditional marketing?


Marketing has pretty much been around forever in one form or another. Since the day when humans first started trading whatever it was that they first traded, marketing was there. Marketing was the stories they used to convince other humans to trade. Humans have come a long way since then, (Well, we like to think we have) and marketing has too. The methods of marketing have changed and improved, and we've become a lot more efficient at telling our stories and getting our marketing messages out there. EMarketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied. That said, the specifics are reasonably complex and are best handled piece by piece. So weve decided to break it all down and tackle the parts one at a time. This week well be looking at the "what" and "why" of eMarketing, outlining the benefits and pointing out how it differs from traditional marketing methods. By the end of the series we're pretty sure you'll have everything you need to tell better marketing stories.

What is e-Marketing?
Very simply put, eMarketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms eMarketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous. EMarketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

The Indian Institute of Planning & Management-Ahmedabad

30

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

By such a definition, eMarketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity.

Why is it important?
When implemented correctly, the return on investment (ROI) from eMarketing can far exceed that of traditional marketing strategies. Whether you're a "bricks and mortar" business or a concern operating purely online, the Internet is a force that cannot be ignored. It can be a means to reach literally millions of people every year. It's at the forefront of a redefinition of way businesses interact with their customers

The Indian Institute of Planning & Management-Ahmedabad

31

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

THE BENEFITS OF EMARKETING OVER TRADITIONAL MARKETING


Reach
The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, eMarketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.

Scope
Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. EMarketing includes, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow.

Interactivity
Whereas traditional marketing is largely about getting a brands message out there, eMarketing facilitates conversations between companies and consumers. With a two way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive.

Immediacy
Internet marketing is able to, in ways never before imagined, provide an immediate impact. Imagine youre reading your favorite magazine. You see a double-page advert for some new product or service, maybe BMWs latest luxury sedan or Apples latest iPod offering. With this kind of traditional media, its not that easy for you, the consumer, to take the step from hearing about a product to actual acquisition. With

The Indian Institute of Planning & Management-Ahmedabad

32

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

eMarketing, its easy to make that step as simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iPod. And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours 24 hours per day, 7 days per week for every week of the year. By closing the gap between providing information and eliciting a consumer reaction, the consumers buying cycle is speeded up and advertising spend can go much further in creating immediate leads.

Demographics and targeting


Generally speaking, the demographics of the Internet are a marketers dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes. Buying power is not all though. The nature of the Internet is such that its users will tend to organize themselves into far more focused groupings. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to targeted groups.

Adaptivity and closed loop marketing


Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers wants and needs. With eMarketing, responses can be analyzed in real-time and campaigns can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that theres minimal advertising spend wasted on less than effective campaigns. Maximum marketing efficiency from eMarketing creates new opportunities to seize strategic competitive advantages. The combination of all these factors results in an improved ROI and ultimately, more customers, happier customers and an improved bottom line.

The Indian Institute of Planning & Management-Ahmedabad

33

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

E-Banking

An Introduction

With cyber cafes and kiosks springing up in different places access to the Net has become very easy. Internet banking (a component of e banking) is the latest in this series of technological wonders in the recent past involving use of Internet for delivery of banking products & services.

Internet banking is changing the banking industry and is having the major effects on banking relationships. Banking is now no longer confined to the branches where one has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services. Electronic banking has not only changed the way banking activities are carried out it can provide services to large populations without much difficulty. With the global financial sector becoming heavily dependent on technology, governments are framing policies, procedures and legal framework within which business is conducted smoothly in a secure and transparent manner. E-banking has the immense potential to expand the outreach of microfinance services to large segments of the populations. This has provided the legal systems and policies regarding electronic transactions are appropriately framed, where ebanking flourishes and technology brings substantial improvement to the business.

The Indian Institute of Planning & Management-Ahmedabad

34

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance. In other words a successful Internet banking solution offers Exceptional rates on Savings, CDs, and IRAs Checking with no monthly fee, free bill payment and rebates on ATM surcharges Credit cards with low rates Easy online applications for all accounts, including personal loans and mortgages 24 hour account access Quality customer service with personal attention

DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk considerably. The Internet, ATMs, phone banking has leveled the playing field and afforded open access to customers in the global marketplace. E-banking is a cost-effective delivery channel for financial institutions. Consumers are embracing its many benefits. Access to one's accounts at anytime and from any location via the World Wide Web, Telephone lines is a convenience unknown a short time ago. The six primary drivers of Internet banking includes, in order of primacy are: Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition

The Indian Institute of Planning & Management-Ahmedabad

35

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

INDIAN BANKS ON WEB


The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over the Internet. The deregulation of the banking industry coupled with the emergence of new technologies, are enabling new competitors to enter the financial services market quickly and efficiently. Indian banks are going for the retail banking in a big way. However, much is still to be achieved. One study which was conducted by students of IIML shows some interesting facts: Throughout the country, the Internet Banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet banking services).

In general, these Internet sites offer only the most basic services. 55% are so called 'entry level' sites, offering little more than company information and basic marketing materials. Only 8% offer 'advanced transactions' such as online funds transfer, transactions & cash management services. Foreign & Private Banks are much advanced in terms of the number of sites & their level of development.

EMERGING CHALLENGES
Information technology analyst firm, the Meta Group, recently reported that "financial institutions who don't offer home banking by the year 2000 will become marginalized." By the year of 2002, a large sophisticated and highly competitive Internet Banking Market will develop which will be driven by Demand side pressure due to increasing access to low cost electronic services. Emergence Growing of customer open standards and for banking need of functionality. transparency.

awareness

The Indian Institute of Planning & Management-Ahmedabad

36

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Global players in the fray Close integration of bank services with web based E-commerce or even disintermediation of services through direct electronic payments (ECash).

More convenient international transactions due to the fact that the Internet along with general deregulation trends eliminates geographic boundaries.

Move from one stop shopping to 'Banking Portfolio' i.e. unbundled product purchases. Certainly some existing brick and mortar banks will go out of business. But that's because they fail to respond to the challenge of the Internet. The Internet and its underlying technologies will change and transform not just banking, but all aspects of finance and commerce. It represents much more than a new distribution opportunity. It will enable nimble players to leverage their brick and mortar presence to improve customer satisfaction and gain share. It will force lethargic players who are struck with legacy cost basis, out of business-since they are unable to bring to play in the new context.

MAIN CONCERNS IN INTERNET BANKING


In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. Banking Securely: Online Banking via the World Wide Web provides an overview of Internet commerce and how one company handles secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that your account information is protected from unauthorized access: Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access the system.

The Indian Institute of Planning & Management-Ahmedabad

37

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.

Digital certification procedures provide the assurance that the data you receive is from the Infinity system.

STRATEGIES TO BE ADOPTED BY INDIAN BANKS


Internet banking would drive us into an age of creative destruction due to non-physical exchange, complete transparency giving rise to perfectly electronic market place and customer supremacy. The question to be asked right now is "What the Indian Banks should do" Whatever is the strategy chosen and options adopted, certain key parameters would determine the bank's success on web: 1. For long term success, a bank may follow: Adopting a webs mindset Catching on the first mover's advantage Recognizing the core competencies Ability to deal multiplicity with simplicity Senior Management initiative to transform the organization from inward to outward looking Aligning roles and value propositions with the customer segments Redesigning optimal channel portfolio Acquiring new capabilities through strategic alliances. 2. The above can be implemented in four steps: Familiarizing the customer to new environment by demo version of software on bank's web site. This should contain tour through the features which are to be included. It will enable users to give suggestions for improvements, which can be incorporated in later versions wherever feasible.

The Indian Institute of Planning & Management-Ahmedabad

38

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Second phase provides services such as account information and balances, statement of account, transaction tracking, mail box, check book issue, stop payment, financial and customized information. The third phase may include additional services such as fund transfers, DD issue, standing instructions, opening fixed deposits, intimation of loss of ATM cards. The last step should include advanced corporate banking services like third party payments, utility bill payments, establishment of L/Cs, Cash Management Services etc. Enhanced plan for the customers in future can include requests for demand drafts and pay orders and many more to bring in the ultimate in banking convenience. All the above strategies will help banks in translating their traditional business model into an Internet one, falling into three main categories One stop shop Virtual one-stop-shop Best of breed supplier.

Security on e-banking:
Security is the biggest concern with both current and potential users of online banking services. Though secure electronic transaction (SET) and other encryption schemes have made the actual transaction instructions relatively secure and while there haven't been reports of any of the Indian banks being hacked into , one question still nags users: nothing on the Internet is 100 percent secure and customers fear that their money is vulnerable to attack.

Banks like ICICI, HDFC and Citibank have internationally comparable technology platforms with 'Bankaway' from Infosys and iFlex Solution's 'Flexcube', the most popularly used e-banking solutions in India.

The Indian Institute of Planning & Management-Ahmedabad

39

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Another path breaking technology, which could provide enhanced security to e-banking operations, is Biometrics, the science of verifying an individual's identity by means of personal characteristics, such as voice, retina, face or fingerprint. It advances the security paradigm by empowering banks to verify the actual identity of a person, and not a password or PIN code. LBV, or Layered Biometric Verification, is one such technology, which is based not just on a single biometric verification, but on several layered verification technologies (voice, face and fingerprint).

Internationally banks such as ING Direct Canada have been working closely with organizations like SecuGen Corporation to develop and implement biometric security systems for their Internet Banking products. Biometric solutions and devices like the Umatch BioLinkb Mouse are becoming more affordable.

Federal Bank's Nair says: "We have used a number of tools and technologies like 128-bit encryption also has been used and certified by Verisign, to make transactions highly secure for the customers. Biometric solutions will be examined if it becomes prevalent and found much efficient in matters of security."

Pradeep Bhatia of Axistech Solutions, a Biometrics solutions company explains: "Biometrics has great potential in banks and financial institutions to take the branch automation to new levels. But it will surely take some time for biometrics to penetrate." He adds that today, not many companies have a strong understanding of encryption systems and biometrics together.

The Indian Institute of Planning & Management-Ahmedabad

40

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Definition of e-Banking
Electronic banking or e-banking is the process by which a customer can perform banking transactions electronically without physically visiting the banks or financial institutions.

E-banking or online banking is a powerful "value added" tool to attract and retain new customers while it helps to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment. Trust factor values high in implementing such kind of service and so higher priority is given to the security infrastructure. E-banking should have full proof security infrastructure in place which will satisfy the following criterion, Infrastructure to ensure the integrity of data transactions, records and information.

Providing customers with reliable services and protecting customer data.

Authenticate users in e-banking transactions, insulating both the bank and its customer from repudiation, where one party on either side of a transaction denies having received the data.

Extensive research and development at E-Lock, we have developed online solutions that integrate into the present e-banking applications and provide the necessary data integrity, authentication, non-repudiation and confidentiality to the content and transactions involved in this process.

The Indian Institute of Planning & Management-Ahmedabad

41

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Table no.1: - Common E-banking services

Retail Services Account management Bill payment and presentment New account opening Consumer wire transfers Investment/Brokerage services Loan application and approval Account aggregation

Wholesale Services Account management Cash management Small business loan applications, approvals, or advances Commercial wire transfers

Business-to-business payments Employee benefits/pension administration

Retail Banking:-Banking service for individual customer.


Retail banking is typically mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards.

Wholesale Banking:-Banking service for financial institution.


Wholesale e-banking systems typically expose financial institutions to the highest risk per transaction, since commercial transactions usually involve larger amounts.

The Indian Institute of Planning & Management-Ahmedabad

42

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

TYPES OF E-BANKING
Electronic banking is an umbrella term for the process by which a customer may
perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking is the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used interchangeably.

PC banking: - PC banking is a form of online banking that enables customers to


execute bank transactions from a PC via a modem. In most PC banking ventures, the bank offers the customer a proprietary financial software program that allows the customer to perform financial transactions from his or her home computer. The customer then dials into the bank with his or her modem, downloads data, and runs the programs that are resident on the customers computer. Currently, many banks offer PC banking systems that allow customers to obtain account balances and credit card statements, pay bills, and transfer funds between accounts.

Internet banking: - Internet banking sometimes called online banking is an


outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from a browser software that runs Internet banking programs resident on the banks World Wide Web server, not on the users PC. Net Banker defines a true Internet bank as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks.

The Indian Institute of Planning & Management-Ahmedabad

43

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Virtual banking:-The virtual banks -- institutions that have no branches. You can't
visit a teller and usually you have to use another bank's ATMs. Most of your dealings with the bank are online or by phone.

Home Banking:-A banking service allowing customers to access information about


their account, transfer funds, pay bills, etc using a computer or telephone link from their home or office to the bank's system.

Phone Banking:-Phone banking allows clients to manage most of their banking needs
using a touchtone phone.

Table No. 2: - Software for e-banking


Vendor Chordiant Software Fidelity information services touch point IBM Portrait Software Fisery Oracle SAP HP Business Solution Templates Quadstone Aperio Oracle Fusion Middleware Netweaver Open Bank Software Contact center, Teller Touch point, X Press

The Indian Institute of Planning & Management-Ahmedabad

44

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Indian Institute of Planning & Management-Ahmedabad

45

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Automated Teller Machine (ATM):


 Simple data terminal communicating through a host processor  Can be connected through: a dedicated telephone line dial-up modem Internet service provider

The Indian Institute of Planning & Management-Ahmedabad

46

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Indian Institute of Planning & Management-Ahmedabad

47

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Level 1 DFD ATM


'87654   
48

: - www.

.g

. . / g /

ff/ w

RISKS in e-banking
1) Unauthorized Access 2) Phishing/spoofing It is a common form of piracy. It is deployed to steal users personal and confidential information like bank account numbers, net banking passwords, credit card numbers, personal identity details etc. Later the phishers may use the information for siphoning money from the victims account or run up bills on victims credit cards. In the worst case one could also become the victim of identity theft. A few customers of some other Indian banks have been affected by the attempt of phishing in early 2006.

PKI (Public Key Infrastructure)


PKI (Public Key Infrastructure) is a collection of technologies, processes, and organizational policies that support the use of public key cryptography to verify the authenticity of public keys. PKI provides the mechanisms to ensure that the trusted relationships are established and maintained.

The Indian Institute of Planning & Management-Ahmedabad

'87 654

% 0)(%#$'&" #
/atm.ppt

32 1

SSGVUSDW SVG CU QTS SG QI RD FQ HQP IHCF

   

  

 

0)(# '&A 32 1

%()# B82

%$ @ 8 6 8(#1 &@ 8#)#9

   

 !

 !

  %()# B82 GFEDC

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Complex business systems, e-commerce and automated business transactions require robust and precise security procedures. While todays Internet client demands security to protect their interests, privacy, communication, value exchange, and information assets.

PKI enables users using insecure public network like Internet to securely and privately exchange data and do financial transaction through the use of public and private cryptographic key pair that is obtained and shared through a trusted authority (Certifying Authority).

The specific security functions in which a PKI provides foundation are confidentiality, authentication, integrity and non-repudiation.

Confidentiality
Confidentiality means ensuring the secrecy and privacy of data or ensuring that no one other than the expected parties is able to access the data.

Authentication
Authentication means verifying the identity of entities or ensuring that the persons with whom you are corresponding are actually the same who they say they are.

Integrity
Integrity means ensuring that data cannot be corrupted or modified and transactions cannot be altered. In the Electronic world digital signature has replaced the traditional seal.

The Indian Institute of Planning & Management-Ahmedabad

49

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Non-Repudiation
Non-repudiation means ensuring that data cannot be renounced or a transaction denied. That means there can be no denial on the part of the sender of having sent a message. This is provided through public key cryptography by digital signing.

PKI technology is mainly based on the asymmetric cryptography as it involves an asymmetric key pair. This key pair consists of a public key and a private key. The public key, as its name suggests, may be freely distributed. This key does not need to be kept confidential. The private key, on the other hand, must be kept secret. The owner of the key pair must guard his private key closely, as sender authenticity and non-repudiation are based on the signer having sole access to his private key. A Certification Authority, who confirms and verifies the identity of an individual before issuing a certificate, certifies the key pair. This forms the 'Digital Identity' for that individual. The certificate issued is called the 'Digital Certificate'. There are several important characteristics of these key pairs: While they are mathematically related to each other, it is impossible to calculate one key from the other. Therefore, the private key cannot be compromised through knowledge of the associated public key. Each key in the key pair performs the inverse function of the other. What one key does, only the other can undo. The private key is used for signing and decrypting a message or a document while the public key is used to verify or encrypt.

The primary function of a PKI is to allow the distribution and use of public keys and certificates with security and integrity.

E-Lock Digital Signature products and solutions leverage the underlying PKI infrastructure to provide signing and encryption for documents and transactions. While the PKI deals with creation of key pairs and issue and management of digital certificates, digital signature technology deals with use of these keys for various security functions from within the applications.

The Indian Institute of Planning & Management-Ahmedabad

50

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Encryption & Decryption


In todays world Internet has touched each and every aspect of life changing the way we work, communicate and live. But the major concern has been about the security and privacy of the data that is being exchanged via Internet especially when you are sending the sensitive information through it. Amongst many ways of securing data, encrypting the sensitive data is the most popular and effective way to have data security.

Encryption is translation of data into a secret code called a cipher text. Decryption is the process of decoding data that has been encrypted into a secret format this requires secret code or password.

Computer encryption uses the science of cryptography. As the human-based code is too easy for a computer to crack, most of the encryption systems belong to the one of two categories.

1. Symmetric-key encryption:
In Symmetric-key encryption technique single key is used to encrypt and decrypt the message.

2. Public-key encryption:
While in public-key (or asymmetric) encryption technique, uses one key (private key) to encrypt a message while another key (public key) to decrypt the message. Public-key encryption uses the combination of a private key and a public key. The private key is kept secret and is only known to the person who encrypts the message, while the public key is freely disseminated which helps to verify the message. To decode an encrypted message, receiver uses the public key of the sender and his own private key.

The Indian Institute of Planning & Management-Ahmedabad

51

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Encryption/Decryption is advisable while carrying out any kind of sensitive transaction, such as an online purchases or the communication of a company sensitive documents between different departments in the organization etc.

Digital Signature
A digital signature is an electronic signature that can be used to authenticate the identity of the sender of a message or the signer of a document, and to ensure that the original content of the message or document that has been sent is unchanged.

Digital signature has gained importance as a tool, which allows the users to sign the electronic document and authenticate the data provided in it. This in turn reduces the paper costs and processing time and increases the efficiency.

Feature of Digital Signature:


Digital signatures are easily transportable, Cannot be imitated by someone else Can be automatically time-stamped.

Digital Signature imparts the ability, which ensures that the original signed message arrived which means that the sender cannot easily repudiate it later.

A digital signature can be used with any kind of message, whether it is encrypted or not, simply so that the receiver can be sure of the sender's identity and that the message arrived intact. A digital certificate contains the digital signature of the certificate-issuing authority so that anyone can verify that the certificate is real.

The use of digital signatures is even more effective when dealing in international trade, making it no longer necessary to fly overseas in order to demonstrate intent to sign a

The Indian Institute of Planning & Management-Ahmedabad

52

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

contract. The use of digital signatures makes commerce faster, more secure and more effective.

Table No. 3: - Benefits of e-banking

Benefits to Customers Convenient banking Tailored products and services Easy access

Benefits to Banks Lower cost per transaction Increase customer knowledge Ability to tailor product and services as per customers requirement

Ease of shopping around for best price Ease of changing supplier Low cost and saves time

Ability to access a large market Increase customer relationship Reduce errors, time consumed and overhead cost

Financial planning capability

Minimum physical infrastructure requirement

Privacy Elimination of waiting time Information gate way

Reaching new segments of the population Create customer loyalty Achieve better cross-channel productivity and performance

Offers new values to the customers

Increase in flexibility and the opportunity for improved service

Avoids traveling to and from a bank branch Round the clock availability

Eliminate the waste of paper

The Indian Institute of Planning & Management-Ahmedabad

53

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Conclusion:IT is allowing banks to offer new products, operate more efficiently, raise productivity, expand geographically and compete globally. Efficiency of bank increased and it became more productive and e-banking enabled banks to provide services of greater quality and value.

The Indian Institute of Planning & Management-Ahmedabad

54

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

INTERNET BANKING
Effective Internet Banking strategies, opportunities and pitfalls As Internet Banking enables customers to be savvier about the range of products on offer, they are inclined to be less loyal to an individual bank, cherry picking the best products from multiple providers and being more proactive towards switching accounts when introductory offers reach maturity. While Internet Banking is the most popular financial activity for consumers, paying bills online is growing at a rapid pace. Affluent spend more of their Internet time on business-oriented sites and tasks, such as banking, bill payment, stock trading and media engagement. Wealthier households go online to find product information more often than lower income households. Online product information research rises dramatically as household income increases, while fraud and security remain key issues in terms of retail banking distribution; it is particularly true for the online channel as security concerns can deter customers from using internet banking. Banks are susceptible to fraud across all their channels; however the online channel has proved to be particularly vulnerable as it enables fraudsters to target multiple accounts across multiple countries without leaving their computers. As banks develop new distribution channels, so fraud will follow; for example, banks must consider the security issues surrounding mobile phone/PDA banking as it emerges as a channel over the next few years. The shift in mobile payment is emerging, once public accepts eCommerce the mobile banking will follow. This year mobile payments could begin to make inroads in the US, as more consumers learn to scan a barcode or key in a text message and view the results on their mobile devices. Banks are not waiting for the market to emerge when it comes to mobile banking. Several large banks and wireless providers are rolling out mobile services, while other credit card giants readying mobile payment systems. Online Customer Service (OCS) solutions necessitate investment in hardware, software and employees. For OCS solutions to function efficiently, it is not only a question of reorganizing the business but a question of retraining employees to use new software and to understand new workflows and necessary procedures. Online customers have become accustomed to instantaneous gratification, which exists online for example, 37 per

The Indian Institute of Planning & Management-Ahmedabad

55

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

cent of consumers would be unwilling to wait longer than 3 minutes on the telephone or online.

Some of key benefits:


y y y y y

Improving Internet Banking services for customers Increasing Internet Banking security Increasing customers awareness of fraud & ID theft Learning from some of leading banks experiences of Internet Banking Increasing online customers loyalty, satisfaction and confidence with regards to Internet Banking

y y y y y

Learning how to attract new customers Adding more value for online customers Identifying new opportunities for bank Update on Internet Banking trends and competition Learning about mobile banking opportunity

The Indian Institute of Planning & Management-Ahmedabad

56

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Chapter 3:
Brand Building through Online Marketing
3.1 The Internet as Integrator Fast Brand Building in Slow-Growth Markets. 3.2 Internet Brand Buildings Five Success Factors.

The Indian Institute of Planning & Management-Ahmedabad

57

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Branding gaining in importance, says Philip Kotler


Internet has to be factored into the marketing framework CHENNAI: In today's world of Internet and media explosion, branding is becoming important more than before, feels the marketing guru Philip Kotler. Branding is critical for creating trust in the minds of consumers. The four P's of marketing product, price, place and promotion were the corner stones of building a brand in the past. Today, one needs to redefine the role of marketing as creating, communicating and delivering value to the consumer (CCDV), says Mr. Kotler. Addressing a press conference here on Monday, Mr. Kotler said today the consumer would buy a product or service or a combination only if he saw a value in it. So the central role of marketing was to deliver the value to the consumers. The marketing guru said the 4Ps, the most important factors of Philip Kotler's theory, were more relevant for the manufacturing sector. But in the current economic system, this had been replaced with `CCDV' marketing, which was creating value (instead of product), communicating value (in place of promotions) and delivering value. Mr. Kotler said information technology (IT) played an important role, which had helped to build relationship databases, which in turn helped in tracking the change in preferences and segments. It had become important to be the early spotters of these changes in preferences, he added. About Internet, the marketing guru said it was a tool that had to be factored into the marketing framework. For instance, every company needed to have a good website. "Companies cam use the Internet to study competitors, marketing research (organize focus groups), probably do B2B auctioning, and set up chat rooms for your customers to discuss issues." Today from B2B the entire marketing face was changing into C2C, with the help of Internet.

The Indian Institute of Planning & Management-Ahmedabad

58

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Mr. Kotler was in Chennai to address Cognizant Technology Solutions' management team on `customer intimacy' as part of the company's global leadership programme entitled `Hi5'.

The Indian Institute of Planning & Management-Ahmedabad

59

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Internet as Integrator Fast Brand Building in Slow-Growth Markets


By David A. Aaker

To link and augment marketing communications programs, spin the Web around them. Today, as most industries confront overcapacity and weakening demand in the face of an uncertain economic environment, the need for cost-effective brand building has never been greater. There are two ways to improve the ROI of brand marketing: Create more brand-building programs that are so differentiated and efficient that they boost awareness, purchase intent and ultimately sales and market share; or increase the synergies and impact among the firms individual brand-building programs so that the whole is greater than the sum of the parts. Each path is strewn with obstacles, however. Achieving home runs in brand building has always been difficult; the increasingly cluttered and complex media environment makes it even more so. The era of mass media, when the challenge was merely to have memorable advertising, is itself a memory. The modern explosion of television channels and magazine titles, combined with many new brand-building options, means that it is much harder for on-brand executions to break out of the clutter and gain notice. Equally problematic, with so many channels and vehicles involved, brand-building efforts are increasingly diffuse, inconsistent, and ad hoc not the coherent, consistent, and integrated programs they should be. Similar forces conspire to inhibit the effectiveness of individual and integrated brandbuilding programs, taxing even the best marketing organizations. Brand implementation in a fragmented media environment needs to involve sets of disparate communications companies or autonomous parts of companies; victory for a particular brand-building effort is just as hard to attain as are powerful, integrative, synergistic programs. Creating alliances or virtual firms to deliver integrated brand building has had, at best, limited and ephemeral success.
The Indian Institute of Planning & Management-Ahmedabad

60

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Brand building is an area in which the Internet could change everything. Indeed, the real transforming power of the Internet derives from its ability to serve as the central organizing platform for integrated marketing communications programs the glue that holds disparate channels and executions together, making them a cohesive force. Turning the Internet into the medium that rationalizes a firms multiplicity of brand-building programs has the potential to change both perception and (the resulting) reality for the brand marketer. But the Internet can address todays communications challenges only if its role in the brand-building process and its place in the organization are reimagined and reshaped. Too often, companies perceive the Internet simply as another channel. That view positions the Net as a minor player in the media mix a direct-marketing vehicle for some, an ancillary brand-communications venue for others, analogous to the painted VW Beetles some companies deploy as traveling billboards. If a business wants the Internet to add leverage to a brand and its communications program, the business must start with a holistic view of brand building. An organizational structure and culture that encourages and supports synergies between brand-building programs in general, and between the Internet and other programs in particular, must exist. The all-too-typical treatment of the interactive channel as a specialized silo, separated from other communications support, makes it very hard to generate the synergies that are usually possible. Companies must mesh Internet capabilities into the entire brand-building effort, with the whole driven by a common brand vision. They need to think creatively and more broadly about brand-building programs, recognizing the Internet as one of the components. Can employing the Internet leverage existing or conventional brand-building programs? Are there new programs that simply would not work without the Internet? Can the product offering itself be enhanced by adding an Internet component? Just considering these questions will create opportunities.

The Indian Institute of Planning & Management-Ahmedabad

61

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Power of Involvement


Three concepts, already in use by a few advanced marketers, illustrate how the Internet can be turned into a mechanism to integrate multichannel marketing programs effectively.
y

Amplification. The Internet can add continuity and depth to single-channel marketing programs; the goal is to increase the engagement of existing and potential customers. The Internet can also provide a critical market-sensing test, providing marketers with metrics that help them decide whether to scale up or cut back programs in other media.

Differentiation. The Internet can support a feature or service that will differentiate the brand, by augmenting a firms services or products with information, entertainment, or other added values.

Integration. The Internet can help integrate multiple brand-building approaches by being a common component and a forum where they can appear together, thus demonstrating synergy and consistency.

Behind all three concepts lies a single force: involvement. Absent its consideration, it is easy to dismiss the Internet as an insignificant brand-building tool. With click-through rates averaging around 0.2 percent, its clear that most banner advertising doesnt work. The meltdown of so many e-commerce and e-content concepts (recall Pets.com and Eve.com) has shown that early assumptions about the Internet, such as that first-time visitors not only return again and again, but also respond to banner ads, were simply wrong. Looking at the smoldering ruin that was digital mania, it is tempting to conclude that the Internet was over rated and oversold, and that its appropriate place is at the margins of a companys brand building, tucked somewhere between the catalog division and point-ofpurchase display design. But the mediums growth alone indicates that something powerful and powerfully different is at work in the online world. There are more than 75 million active users

The Indian Institute of Planning & Management-Ahmedabad

62

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

each month in the United States and 260 million worldwide, according to Nielsen//Net Ratings Inc., which projects growth for at least five more years. Yahoo and AOL each get more than 100 million visitors a month worldwide. Moreover, the time consumers spend on the medium continues to grow. The average athome user in the U.S. now spends more than 10 hours per week on the Web, a figure that has increased markedly for at least the last three years. For AOL members, the number is much higher, as it is for workplace users. This involvement in the medium for consumption of the Internet is, by definition, active, requiring a continuing series of decisions and actions, which distinguishes it from the more passive consumption of conventional media adds a dimension to communications between the brand and consumer that is potentially even greater than the engagement difference of radio over newspapers, or television over radio. The involvement power of a medium is of central importance to marketers. The strength of a brand depends on customerbrand relationships. Such relationships are defined by the quality, intensity, and quantity of the experiences that link the brand with its customers or potential customers. Relationships can translate into loyalty, which, even if weak, can help drive crucial incremental sales and share gains. The Internet provides the opportunity to create additional experiences, experiences that are potentially positive and meaningful, even when they are not intense. Leverage and Amplify

Brand-building programs can be rendered more effective when the online presence is used to amplify such offline programs as customer promotions, sponsorships, guerrilla marketing, retail experience, and even advertising. Offline programs can do the same for online branding. Sometimes online support can mean the difference between failure and success for a customer promotion. For example, from August to December 2000, PepsiCo Inc. ran a joint promotion with Yahoo Inc. in which 1.5 billion bottles of Pepsi and Mountain Dew

The Indian Institute of Planning & Management-Ahmedabad

63

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

branded soft drinks had caps containing codes that could be converted to Pepsistuff points on the www.pepsistuff.com or www.dewstuff.com sites. Consumers could accumulate points they could then use to obtain prizes or as currency for shopping and auctions on Yahoo. The promotion attracted 3.5 million participants and boosted sales of both beverages by a total of 5 percent, especially impressive in the context of an industry experiencing almost no growth. Pepsi had held a similar version of that promotion offline three years earlier; with results so disappointing it abandoned the project. The Web support, however, turned it into a significant success. Measurement tools, some unique to the Internet, help to make promotions more effective. By quantifying results and tracking user behavior, marketers can learn not only how many users visited a site, but also how many forwarded news of a given promotion to friends, how many product purchases were involved, and often from which sites visitors came. Such information can contribute to a marketing ROI analysis. In the PepsiYahoo alliance, Pepsi could send e-mails to support the promotion, drawing its target audience from Yahoos database of more than 200 million users. Responses by segment can lead to program refinement. Sponsorships, too, can be leveraged via the Internet for greater effectiveness. For a sponsorship to realize its potential as a brand builder, the brand needs to be strongly associated and intimately involved with the event. Most sponsorship linkages to events suffer because they lack continuity and depth. The Internet can be a vehicle to create or support the association and involvement of the core audience. Take the Valvoline auto racing and program. enriches The the Valvoline sponsorship Web site

(http://www.valvoline.com/)

extends

experience.

Valvoline.com has become a destination site for those involved with racing the core customer base for Valvoline, a maker of motor oil and other automobile products. Visitors can access the schedule for NASCAR and other racing circuits and obtain results of recent races, complete with driver photos and interviews. The Behind Closed Garage Doors section provides commentary and analyses from a well-connected member of the motor sports community. Site visitors can adopt the Valvoline NASCAR team and

The Indian Institute of Planning & Management-Ahmedabad

64

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

learn about its finishes and the activities of the team members. In addition, it is possible to send Valvoline racing greeting cards, buy official Valvoline racing gear, download a Valvoline racing screensaver, and sign up for a weekly newsletter, Track Talk, which provides updates on the racing circuits. For customers, Valvoline thus becomes closely associated with the racing experience it is far more involving than a mere logo on a car, and it has greater reach than any hospitality tent could ever hope to have. For all the talk of virtuality, the Internet clearly can support the physical, in-store retail experience. At the Internet site of electronics retailer CompUSA Inc.

(http://www.compusa.com/), for instance, visitors can check whether an item is in stock at a nearby store and get a map to find the stores location. Using in-store computers, customers can order out-of-stock or even never-stocked items from the companys Web site. The retail shopping experience becomes richer (and less frustrating) when the Web site is viewed as a complement to, rather than a competitor of, the retail presence. Guerrilla marketing programs can also be leveraged using the Web. Guerrilla marketing covers offbeat but on-brand programs that use unconventional communications vehicles to create conversation and awareness, breaking through the clutter that diminishes the effectiveness of measured media. By now, most brand marketers are aware of the guerrilla campaign that helped create buzz around the independently produced film The Blair Witch Project a few years ago. Mainstream consumer products companies have also begun to employ the Internet to under gird offline guerrilla efforts. The venerable Oscar Mayer Wienermobile qualifies. Eight frankfurter-shaped vehicles tour the U.S. each tagged with an appropriate license plate, such as Hot Dog turning up at special sports events, parades, fairs, and the like. As engaging as these ambassadors for Oscar Mayer are, the Wiener mobiles have limited reach; for most consumers, encountering one is a one-time experience. But, through its Web site, http://www.oscarmayer.com/, Oscar Mayer allows children (or adults, for that matter) to experience the Wienermobile in multiple ways, over an extended time period. Consumers can take a virtual tour of the interior of a Wienermobile, and they can visit Oscar town, checking out such places as the Oscar

The Indian Institute of Planning & Management-Ahmedabad

65

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Museum, the Oscar Mart, and Town Hall. At the online Family Fun Park, they can choose to play a game of Weiner Pong, which uses hot dogs as paddles, or drive the animated Wiener Patrol, gaining points by picking up schoolchildren and Oscar Mayer products while avoiding mustard slicks. Wienermobilia such as T-shirts, Hot Wheels toy Weiner mobiles, and Wiener whistles can be purchased. There is a postcard pit stop from which an e-card featuring the Wienermobile can be sent. This World Wide Wiener Web leverages the Wienermobile program against the core target, giving the program much more power than it otherwise would have had. Finally, even that most respectable of marketing communications tools, measured media advertising, can be amplified through the loudspeaker of the Internet. Too often, buying an ad represents the purchase of reach and frequency for a message that does not stick. An integrative Web program can multiply not only the exposure of the advertising, but, more important, its impact. Anheuser-Buschs Budweiser site

(http://www.budweiser.com/) shows how. When the delightful Lizard and Whassup TV ads were attracting attention, customers could go to the Web site and play the spots. Fans could also purchase T-shirts and pool toys depicting Frank and Louis, the star lizards from the campaign. Further, e-cards were available to send to friends and family an inexpensive but powerful way to leverage advertising symbols because they add personal endorsement to brand imagery. The potential of extending the life of the media message in a meaningful way, especially among the core target audience, can change the economics of the advertising. Augmenting the Product

Differentiation, being perceived as uniquely and positively unlike competing offerings, is the key to strong brands. Without differentiation, there is no basis for selection or loyalty except price, which turns a brand into a commodity. Analyses by the global advertising agency Young & Rubicam Inc. (through its Brand Asset Evaluator database, which tracked thousands of brands over a nearly 10-year period) found that new brands enjoyed success when differentiation was high even if relevance, esteem, and recognition had not

The Indian Institute of Planning & Management-Ahmedabad

66

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

yet developed. Conversely, brands that saw their differentiation fade lost position even though their relevance, esteem, and recognition remained high. As product classes mature whether computers or retailing or packaged goods or pharmaceuticals or financial services there is a tendency to see sameness in the product and service offerings. It is more difficult to create differentiation. Product refinements often get lost in a cluttered environment, and technical advances are copied quickly. A classic way to achieve differentiation in mature categories is to augment the product, thereby redefining what is being purchased. For example, an industrial firm making expendable supplies may differentiate on the basis of logistical services, or even by supplying advice on managing operations rather than on the core product. The augmented product is differentiated, and it becomes the basis for a deeper customer relationship. When the augmented product defines a new product class, and the firm brands and actively manages it to create a lasting point of differentiation, its a home run. Charles Schwab & Company hit just such a home run with its mutual fund OneSource branded service, which is now integrated into its Web site (http://www.schwab.com/) and represents a new and distinct category of Schwab brokerage services. In contrast to offline avenues, which have been nearly exhausted through the years, the Internet still provides wide-open territory for product and service augmentation, and will be more likely to result in first-mover or fast-follower advantages. Again, though, the key is to think of the Internet not as a stand-alone media vehicle, but, rather, as a way to leverage the products and services of the business. Consider the FedEx Corporations Internet-based tracking system

(http://www.fedex.com/us/), which allows customers to find out exactly where their package is at any given point in the delivery process. FedEx has extended tracking to the handheld world of PDAs. The company has even moved beyond tracking to offer other online services, such as the FedEx Ship Manager, which allows registered users to track shipments, prepare labels online, maintain an online address book, get rate quotes,

The Indian Institute of Planning & Management-Ahmedabad

67

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

arrange pickups and drop offs, and request delivery announcements and confirmations via e-mail. Such services augment FedExs offerings, actually changing the customers perception of what is being purchased, and transforming the nature of that customers relationship with FedEx. Financial and delivery services are both information-rich categories. But even the most conventional and mature product categories are open to Web-based differentiation. Procter & Gamble Companys Pampers is a consumer good that struggles to create and maintain points of differentiation from other disposable-diaper brands. With the Pampers Web site (http://www.pampers.com/), it has created online programs to augment the basic product in a variety of ways. During last years Pampers Perks loyalty program, consumers collected Pampers Points from diaper and wipe purchases and exchanged them for Fisher-Price and Sesame Street toys. The recent Pampers Vantastic Sweepstakes gave customers a chance to win a Chrysler minivan filled with diapers. The Pampers Gift Packs provide a convenient way to send a supply of Pampers along with a Fisher-Price toy to a friend. There is a playing center, learning center, and sharing center, where visitors can explore a variety of practical topics posted by other parents. The Pampers Parenting Institute offers advice from experts in child care, health, and development, as well as a parenting newsletter, Parent Pages, delivered by e-mail and customized to each stage of life from the third trimester through age 4. The Pampers Parenting Institute is also the visible driver of such programs as a public service campaign to reduce the risk of sudden infant death syndrome. In part because of the Pampers Parenting Institute, Pampers is the second most popular baby-care site on the Web, with about 1 million unique visitors per month, many times more than are attracted to the site of the Kimberly-Clark Corporations Huggies, Pamperss arch-competitor. And the financial impact is real; consumers visiting the Pampers site are 30 percent more likely to purchase Pampers, according to Advertising Age. Another Procter & Gamble brand, Tide, has an online Tide Stain

Detective (http://www.clothesline.com/) to stimulate traffic (and bookmarking) from

The Indian Institute of Planning & Management-Ahmedabad

68

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

those who realize that at some point in life, they will need advice on stain removal. The Stain Detective provides credibility and differentiation for a brand in a functional category. Kraft boasts the Kraft Interactive Kitchen (http://www.kraftfoods.com/), one of the leading food sites, which features Kraft Kids Corner, Just for You, and Wisdom of Moms. Such branded features provide points of differentiation, which enhance brands that have a difficult time breaking out from the clutter of low-involvement activities and brands. It is no coincidence that, in early 2002, Kraftfoods.com and Tide.com were the No. 2 and No. 3 packaged-goods sites (after http://www.pg.com/), according to COM Score Networks. Television, too, has historically been a commodity product, with networks in the precable age, certainly all trafficking promiscuously in news, talk shows, situation comedies, dramas, and other conventional programming forms. Although the explosion of cable and satellite television channels has allowed producers more opportunity to create targeted programming, it has also made differentiation a necessity if a network is to attract and hold an audience and embed itself as the brand of choice. In the competitive childrens television category, Nickelodeon has maintained its leadership among the 8- to 12-year-old set in part via the Nick.com Web site, which gets 1.5 million visitors a week. This site gives the brand much more depth and a qualitatively stronger relationship with its target audience than would be possible with the television network alone. Nickelodeons favored position on the Web expands and deepens the parent brands has fun brand experience, in large part by allowing kids to engage actively with the content (something that a passive medium like television cannot provide on its own). Kids can vote all day for their favorite music video, and then see the winner played the same evening. Real-time multiplayer trivia tournaments can be played on the site, and winners can see their name on national television. Jimmy Neutron, a science-loving nerd, was introduced with several 30-second TV vignettes whose endings were available only on

The Indian Institute of Planning & Management-Ahmedabad

69

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

the Web site. The character has become one of Nickelodeons strongest. Nick.com also started an e-Collectibles program that allows viewers to buy (with points earned by Web activities) or trade cards to accumulate complete sets. When a Jimmy Neutron set of cards became available, 50,000 kids got involved during the first week. To make Web-enabled product or service augmentation a sustainable point of differentiation, it is critical to brand it. Amazon.com was a pioneer in developing one of its most powerful features: the ability to recommend books and other products based on a customers interests, as reflected by the individuals purchase and search history and the purchase history of others who bought similar offerings. But, regrettably, it never branded this service, and the feature quickly became a commodity an expected offering of many e commerce sites. If Amazon had branded the service and then actively managed it as part of the brand, improving the feature over time, it would have had a lasting point of differentiation that would have created an invaluable perhaps insurmountable barrier to entry. The Seattle retailer did not make the same mistake with 1-Click, a branded checkout service that plays a key role in defining Amazon in the messy e-tail marketplace. The point is, you need to brand it! Pampers Perks, Tide Stain Detective, and Jimmy Neutron are all brands that are actively controlled and managed by their firms. As a result, each has the potential to gain the authenticity and energy that accompany a strong brand. Brand Buildings Strongest Link

Perhaps the most powerful role the Internet can play in brand-building programs is that of integrator. It has the potential to provide a unifying link among the totality of communications efforts that surround a brand. Moreover, the medium can do this both internally and externally, helping the company improves its brand marketing and sales efforts while galvanizing support in the consumer marketplace.

The Indian Institute of Planning & Management-Ahmedabad

70

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Internally, the Web provides a single place in which all the firms brand-building programs can appear. When one or more of these programs is off strategy in presentation or in content, the departure can be observed and understood by senior executives. The medium becomes a version of the big wall on which companies and their ad agencies used to attach and view the entirety of a brands visual representations (i.e., ads, packaging, product designs, and brochures) in order to observe inconsistencies. Externally, the Internet site has the potential to play an integrating role similar to that of an event store, the way Niketown does for Nike. Niketown provides a total brand experience, with the full scope of the brand portrayed in a controlled context. Such a use of retail stores (the outdoor equipment retailers REI and L.L. Bean also employ them) portrays a brand in all its richness to an important segment of consumers, who get to see the brand as a whole, in an on-brand context, rather than in bits and pieces. A well-designed Web site performs a comparable function, integrating disparate business units and communications programs into a coherent and cohesive narrative. The Martha Stewart site (http://www.marthastewart.com/), for example, brings together a wide spectrum of business units on a single site that effectively communicates the core identity of the brand improves the quality of living in the home, elevate homemaking, and encourage do-it-yourself ingenuity. The Martha Stewart Signature section of the site details collections of coordinated decorator fabrics (sold through fabric retailers) and paints (sold exclusively through Sherwin-Williams stores). Visitors clicking on Martha Stewart Everyday are linked to Kmarts site (http://www.bluelight.com/), where the house wares line is presented with a design characteristic of Martha Stewart, despite being on a different site. Martha Stewart Shop, the online version of the Martha by Mail catalog, sells a variety of cookware and gardening tools Ms. Stewart uses on her TV shows, as well as such on-brand products as craft kits and holiday-themed decorations. Visitors can preview the content of Martha Stewart Living magazine, check out the TV program lineup, and order transcripts of radio spots. Registered members of the site can share tips and ideas in the Bulletin Boards section.

The Indian Institute of Planning & Management-Ahmedabad

71

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The total impact of Marthastewart.com thus does more than support individual businesses and programs; it reflects the Martha Stewart brand in its entirety. Like many integrative sites, Marthastewart.com is primarily aimed at the loyal user: Its greatest value is in maximizing retention and increased purchases from brand friends, and it has only a marginal effect on fringe buyers. Successful Internet brand builders have a core target group on which to focus. They dont try to service a broad audience. The Internet has the power to revolutionize brand building, to create new forms of differentiation, to make brand-building programs more effective, and to help companies move toward the elusive goal of providing integrated, consistent, and synergistic brand building. Businesses need to get out of the silo mentality both conceptually and organizationally. The Internet can make that happen because it can link to all the other brand-building efforts.

The Indian Institute of Planning & Management-Ahmedabad

72

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

INTERNET BRAND BUILDINGS FIVE SUCCESS FACTORS


Five success factors must be addressed if the Internet is to play an effective role in amplifying, differentiating, and integrating a brand and its communications. 1. The firm needs a clear brand identity and vision that drives all the brandbuilding programs. The key is to know your brand and what associations you want it to have what user profiles, brand personality, organizational associations, emotional and self-expressive benefits, and functional benefits. 2. Companies must create an organization that allows the Internet to be integrated into the total brand-building effort of the firm. Indeed, the Internet must be integrated into the actual product and service offerings of the firm. For some companies, this will require a fundamental change in structure, people, and culture. No longer can the Internet be perceived as another communications medium to be managed by silo organizations of specialists. 3. Design matters. The Web site and other Internet components need to support the brand with a look, feel, and personality that is on-brand and consistent with the brand presence elsewhere. A good example is Pottery Barns site (http://www.potterybarn.com/), where visitors can shop by viewing completely furnished rooms accompanied by lists of the products that decorate them. Consider also Harley-Davidson Inc. (http://www.harley-davidson.com/), whose site opens with a picture of an open road hugging a rugged shoreline and provides links to the Harley experience all with the Harley feel and colors. When the brand is represented by on-brand visuals and content, it becomes easier to detect programs that have not achieved on-brand focus. Achieving that focus is

The Indian Institute of Planning & Management-Ahmedabad

73

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

surprisingly difficult; even a casual surfer knows that few Web sites consistently represent what the brand stands for. This rather sad state of affairs is due in part to the functional need to be comprehensive, easy to navigate, and uncluttered, and in part to the lack of a clear vision.

4. Customers need to be motivated to come to the site and return regularly. Motivation usually involves information, entertainment, or interactive communication. The if we build it, they will come philosophy, heavy on brochure ware, has long been obsolete. There are a variety of ways to motivate return visits. ESPN.com, with more than 5 million visitors per day, attracts people regularly with its news from current sporting events. Sonys game site (www2.station.sony.com), which includes several versions of the popular Jeopardy game, was one of the most visited gaming sites in late 2001, with more than 6 million unique visitors per month. Nabiscoworld.coms games and sweepstakes have helped it become one of the top 10 packaged-goods sites in terms of the number of visitors, ahead of Coke and Pepsi. People come to the Pampers site to compare notes on the progress their babies have made and the challenges at each stage. The restaurateur located on a busy corner will thrive. Similarly, the easiest way to get Internet traffic is to become part of a site that already has it. For example, Bolt, a leading site for teens and young adults, features sponsored contests from the likes of Hawaiian Punch, Ford, Kodak, Nike, Verizon, and Maybelline. Such an approach will have legs and long-term equity if a branded subsection of a well-traveled site such as Bolt, or ESPN or Disney or Yahoo, can be established. If not, much of the brand benefit will be transient. But the affiliated site must be on-brand as well as heavily trafficked because its associations will affect the brand in question.

The Indian Institute of Planning & Management-Ahmedabad

74

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

5. The brand Web site needs to be linked to other brand-building programs or to the product or service itself. When the offline and online efforts are truly linked, traffic will be driven to the Web site. People are motivated to go to the Harley-Davidson site to relive H.O.G. Rallys and to plan new ones, for example. By comparison, using banner advertising or offline media spending to attract people to particular sites is usually expensive and ineffective. The big payoff occurs when visiting the Web site is not a discrete action, but rather part of a large brand experience. Having the Nickelodeon television experience amplified with the interactive online component deepens the audience experience and thereby the audiences relationship with the brand.

The Indian Institute of Planning & Management-Ahmedabad

75

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Chapter 4:
Research Methodology
Primary Research

4.1 Introduction of Factor Analysis Finding from the Questionnaire 4.2 Research 4.3 Factor Analysis 4.4 Chi-Square Test 4.5 Perceptual Mapping

The Indian Institute of Planning & Management-Ahmedabad

76

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

PRIMARY RESEARCH
RESEARCH METHODOLOGY

Methodology Adopted: The method used for research was mixer of the primary
and secondary research methods Exploratory research design technique.

The scope of analysis is restricted to the electronic and print media advertisements.

Approach of study: Market research techniques have been used by our group
was as follows.

Primary questionnaire: - Designed consisting of qualitative questions where the consumers were asked to rank, rates the Banks according to the questions asked.

Structure Interview: - Structure Interview was designed, where the people who Use the Online products were interviews and asked to fill up the questionnaire.

Approach of analysis:
The analysis was executed using CHI-SQUARE TEST and Co-relation techniques and through FACTOR ANALYSIS.

The Indian Institute of Planning & Management-Ahmedabad

77

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Introduction of Factor Analysis Factor Analysis:


What is factor analysis? Factor analysis is a statistical data reduction technique used to explain variability among observed random variables in terms of fewer unobserved random variables called factors. The observed variables are modeled as linear combinations of the factors, plus "error" terms. Factor analysis originated in psychometrics, and is used in behavioral sciences, social sciences, marketing, product management, operations research, and other applied sciences that deal with large quantities of data.

Factor Analysis in Marketing:


The basic steps are:
y y

Identify the salient attributes consumers use to evaluate products in this category. Use quantitative marketing research techniques (such as surveys) to collect data from a sample of potential customers concerning their ratings of all the product attributes.

Input the data into a statistical program and run the factor analysis procedure. The computer will yield a set of underlying attributes (or factors).

Use these factors to construct perceptual maps and other product positioning devices.

Information collection
The data collection stage is usually done by marketing research professionals. Survey questions ask the respondent to rate a product sample or descriptions of product concepts on a range of attributes. Anywhere from five to twenty attributes are chosen. They could include things like: ease of use, weight, accuracy, durability, colorfulness, price, or size. The attributes chosen will vary depending on the product being studied. The same

The Indian Institute of Planning & Management-Ahmedabad

78

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

question is asked about all the products in the study. The data for multiple products is coded and input into a statistical program such as SPSS, SAS, Stata, and SYSTAT. We used SIM STAT software for the analysis of data.

Analysis
The analysis will isolate the underlying factors that explain the data. Factor analysis is an interdependence technique. The complete set of interdependent relationships is examined. There is no specification of dependent variables, independent variables, or causality. Factor analysis assumes that all the rating data on different attributes can be reduced down to a few important dimensions. This reduction is possible because the attributes are related. The rating given to any one attribute is partially the result of the influence of other attributes. The statistical algorithm deconstructs the rating (called a raw score) into its various components, and reconstructs the partial scores into underlying factor scores. The degree of correlation between the initial raw score and the final factor score is called a factor loading. There are two approaches to factor analysis: "principal component analysis" (the total variance in the data is considered); and "common factor analysis" (the common variance is considered). Note that there are very important conceptual differences between the two approaches, an important one being that the common factor model involves a testable model whereas principal components does not. This is due to the fact that in the common factor model, unique variables are required to be uncorrelated, whereas residuals in principal components are correlated. Finally, components are not latent variables; they are linear combinations of the input variables, and thus determinate. Factors, on the other hand, are latent variables, which are indeterminate. If your goal is to fit the variances of input variables for the purpose of data reduction, you should carry out principal components analysis. If you want to build a testable model to explain the Interco relations among input variables, you should carry out a factor analysis. The use of principal components in a semantic space can vary somewhat because the components may only "predict" but not "map" to the vector space. This produces a

The Indian Institute of Planning & Management-Ahmedabad

79

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

statistical principal component use where the most salient words or themes represent the preferred basis.

Advantages
y y y y

Both objective and subjective attributes can be used It is fairly easy to do, inexpensive, and accurate It is based on direct inputs from customers There is flexibility in naming and using dimensions

Disadvantages
y

Usefulness depends on the researchers' ability to develop a complete and accurate set of product attributes - If important attributes are missed the value of the procedure is reduced accordingly.

Naming of the factors can be difficult - multiple attributes can be highly correlated with no apparent reason.

If the observed variables are completely unrelated, factor analysis is unable to produce a meaningful pattern (though the eigenvalues will highlight this: suggesting that each variable should be given a factor in its own right).

If sets of observed variables are highly similar to each other but distinct from other items, Factor analysis will assign a factor them, even though this factor will essentially capture true variance of a single item. In other words, it is not possible to know what the 'factors' actually represent; only theory can help inform the researcher on this.

Perceptual Mapping
Perceptual mapping is a graphics technique used by marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.

The Indian Institute of Planning & Management-Ahmedabad

80

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

PRIMARY RESEARCH
In our Primary Research we have taken the data of 100 different customers, as below you can see by using Pie Charts we have described the Quantitative Data of the customers.

THE CUSTOMERS QUESTIONNAIRE ANALYSIS

AGE
50-60 5% 40-50 16% above60 0% 20-30 42% 20-30 30-40 40-50 50-60 above60 30-40 37%

The Age of 100 Respondents is above alienated, here you can see that 42 % of respondent are having an age between 20-30 years, 37% of respondents are between 3040 years, 16% of respondents are between 40-50 years, 5% of respondents are between 50-60 years and 0% or No Respondents are above 60 years
GENDER

female 28% male female male 72%

As in above Pie chart 72 % are Male Respondents and 28% are Females

The Indian Institute of Planning & Management-Ahmedabad

81

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

LOCATION
Nehru nagar 8% ADIPUR 15% Gulbai tekra 9% C.G.road 8% IIMA road 16% Satelite 9% Nehru nagar Gulbai tekra C.G.road IIMA road Satelite GANDHIDHAM ADIPUR

GANDHIDHAM 35%

We have preferred the different locations for research, in that 35% of Respondents are from Gandhidham, 16% of Respondents are from IIMA road, 15% of Respondents are from Adipur, 9% of Respondents are from Satellite road, 9% of Respondents are from Gulbai Tekra road , 8% of Respondents are from C.G road, 8% of Respondents are from Nehru Nagar.

INCOME RANGE

above 10 lakhs 8% 8-10 lakhs 22%

2-4 lakhs 27%

2-4 lakhs 4-6 lakhs 6-8 lakhs 8-10 lakhs above 10 lakhs

6-8 lakhs 21%

4-6 lakhs 22%

The Income Range of Respondents, 27% of respondents having income between 2-4 lakhs, 22% of respondents having income between 4-6 lakhs, 21% of respondents having income between 6-8 lakhs, 22% of respondents having income between 8-10 lakhs and 8% of respondents are above 10 lakhs.

The Indian Institute of Planning & Management-Ahmedabad

82

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

OCCUPATION

Business

Service 67%

As per the Occupation details 33% of respondents are from Business sector and 67% are from Service sector.

ARE YOU FAMILIAR WITH E-BANKING


No 13%

Yes 87%

As far as the Question arise that how much respondents are Familiar with E-Banking?, 87% of Respondents are Familiar and 13% are not.

The Indian Institute of Planning & Management-Ahmedabad

YXX

Business Service

Yes No

83

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

FINDINGS FROM THE QUESTIONNAIRE


The analysis of the Questionnaires is done by using the software SIMSTAT we have done the Correlation analysis, Chi-square test, Factor analysis. The out put we got from the software we are showing you below in which all the analysis has done.

FACTOR ANALYSIS
Easy Factor Analysis 4.1

(c) 2004 Darren Fuerst, All Rights Reserved

Analysis Parameters ------------------Command Line Data File Analysis Type Max # Factors Min Eigenvalue Rotate Score Analysis Log -----------Analysis began Mon Nov 08 21:24:15 2010 Note: The raw data file has 100 subjects and 17 variables. Correlation matrix created. Factor extraction complete. Note: Trace = 17 with 36% of the total trace extracted by 2 factors. Rotation complete. Analysis ended Mon Nov 08 21:24:15 2010 Elapsed time 0.00 seconds SIM2EFA.DAT -N2 -RU -PM- -PW- -C -Z3 -V > SIM2EFA.LIS SIM2EFA Principal Components 2 0 Varimax No

The Indian Institute of Planning & Management-Ahmedabad

84

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Correlation Matrix

RES_NO_ CONVENIENT TAILORED_P RES_NO_ CONVENIENT TAILORED_P PRIVACY INFORMATIO ROUND_THE_ INTERNET_B INCREASING DIFFERENTI BRAND_BUIL USER_FRIEN HASSLE_FRE OFFERS_NEW VALUE_ADDE CUSTOMER_R VALUE_FOR_ OVER_ALL_P 1.00000 0.11898 -0.17986 0.09643 -0.25792 -0.09578 -0.28048 -0.17738 -0.23915 0.21707 -0.22908 0.14214 0.00077 -0.20760 -0.29815 -0.18617 -0.27194 0.11898 1.00000 0.10450 0.06963 0.12980 0.14323 0.23958 0.12102 0.17308 0.28218 0.11795 0.11719 0.01032 0.02971 0.12945 0.22734 0.31944 -0.17986 0.10450 1.00000 0.09566 0.19678 0.29303 0.32085 0.02368 0.25012 0.08342 0.07807 0.02239 0.02938 0.43354 0.40663 0.16002 0.25703

PRIVACY INFORMATIO ROUND_THE_ 0.09643 0.06963 0.09566 1.00000 0.27700 0.30145 0.13595 0.39116 0.09109 0.17528 -0.00700 0.15681 0.03961 0.24869 0.17389 0.22172 0.30749 -0.25792 0.12980 0.19678 0.27700 1.00000 0.29867 0.34992 0.30523 0.21314 0.05419 0.30634 -0.13922 0.15327 0.24795 0.29386 0.27315 0.29082 -0.09578 0.14323 0.29303 0.30145 0.29867 1.00000 0.31462 0.34946 0.18487 0.33542 0.19384 0.07399 0.26077 0.27658 0.39290 0.22252 0.29908

INTERNET_B INCREASING DIFFERENTI BRAND_BUIL USER_FRIEN HASSLE_FRE RES_NO_ CONVENIENT TAILORED_P PRIVACY INFORMATIO ROUND_THE_ INTERNET_B INCREASING DIFFERENTI BRAND_BUIL USER_FRIEN HASSLE_FRE OFFERS_NEW VALUE_ADDE CUSTOMER_R VALUE_FOR_ OVER_ALL_P -0.28048 0.23958 0.32085 0.13595 0.34992 0.31462 1.00000 0.47754 0.28315 0.19764 0.30825 0.30132 0.11650 0.25555 0.40411 0.35262 0.31094 -0.17738 0.12102 0.02368 0.39116 0.30523 0.34946 0.47754 1.00000 0.33835 0.16189 0.24688 0.24313 0.15100 0.20541 0.19442 0.13629 0.34884 -0.23915 0.17308 0.25012 0.09109 0.21314 0.18487 0.28315 0.33835 1.00000 0.16635 0.26358 0.10195 0.10607 0.13801 0.18219 0.12512 0.34747 0.21707 0.28218 0.08342 0.17528 0.05419 0.33542 0.19764 0.16189 0.16635 1.00000 0.17521 0.45376 0.31572 0.15476 0.10630 0.23600 0.08373 -0.22908 0.11795 0.07807 -0.00700 0.30634 0.19384 0.30825 0.24688 0.26358 0.17521 1.00000 0.07742 0.26992 0.16570 0.13153 0.24925 0.31289 0.14214 0.11719 0.02239 0.15681 -0.13922 0.07399 0.30132 0.24313 0.10195 0.45376 0.07742 1.00000 0.19257 0.12550 -0.01090 -0.00757 0.08219

The Indian Institute of Planning & Management-Ahmedabad

85

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

OFFERS_NEW VALUE_ADDE CUSTOMER_R VALUE_FOR_ OVER_ALL_P RES_NO_ CONVENIENT TAILORED_P PRIVACY INFORMATIO ROUND_THE_ INTERNET_B INCREASING DIFFERENTI BRAND_BUIL USER_FRIEN HASSLE_FRE OFFERS_NEW VALUE_ADDE CUSTOMER_R VALUE_FOR_ OVER_ALL_P 0.00077 0.01032 0.02938 0.03961 0.15327 0.26077 0.11650 0.15100 0.10607 0.31572 0.26992 0.19257 1.00000 0.19734 0.06984 0.07620 -0.00285 -0.20760 0.02971 0.43354 0.24869 0.24795 0.27658 0.25555 0.20541 0.13801 0.15476 0.16570 0.12550 0.19734 1.00000 0.39265 0.23533 0.27863 -0.29815 0.12945 0.40663 0.17389 0.29386 0.39290 0.40411 0.19442 0.18219 0.10630 0.13153 -0.01090 0.06984 0.39265 1.00000 0.29258 0.18498 -0.18617 0.22734 0.16002 0.22172 0.27315 0.22252 0.35262 0.13629 0.12512 0.23600 0.24925 -0.00757 0.07620 0.23533 0.29258 1.00000 0.37933 -0.27194 0.31944 0.25703 0.30749 0.29082 0.29908 0.31094 0.34884 0.34747 0.08373 0.31289 0.08219 -0.00285 0.27863 0.18498 0.37933 1.00000

Unrotated Solution: Screen Plot

5.0+ | | | | E i g e n v a l u e | | | | | | | | | | | | | | 3 4 7 8 9 0 1 2 3 4 5 6 7 1.0+--------------5--6--------------------------------2 1

+-----------------------------+--------------------10 Factor

The Indian Institute of Planning & Management-Ahmedabad

86

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Unrotated Solution: Eigenvalues

Factor1 Eigenvalue Difference %Trace Cumulative 4.32036 2.45378 25.41390 25.41390 Factor7

Factor2 1.86658 0.54985 10.97990 36.39380 Factor8

Factor3 1.31673 0.06805 7.74549 44.13930 Factor9

Factor4 1.24868 0.08223 7.34519 51.48450 Factor10

Factor5 1.16645 0.08795 6.86149 58.34600 Factor11

Factor6 1.07850 0.20658 6.34412 64.69010 Factor12

Eigenvalue Difference %Trace Cumulative

0.87192 0.03626 5.12897 69.81910

0.83566 0.15250 4.91567 74.73470

0.68317 0.05480 4.01863 78.75340

0.62837 0.03797 3.69631 82.44970

0.59040 0.06032 3.47295 85.92260

0.53008 0.03796 3.11814 89.04080

Factor13 Eigenvalue Difference %Trace Cumulative 0.49213 0.04328 2.89487 91.93560

Factor14 0.44885 0.09710 2.64027 94.57590

Factor15 0.35175 0.04242 2.06910 96.64500

Factor16 0.30932 0.04830 1.81955 98.46460

Factor17 0.26103 0.00000 1.53545 100.00000

Unrotated Solution: Factor Pattern Factor1 CONVENIENT PRIVACY TAILORED_P USER_FRIEN DIFFERENTI VALUE_FOR_ VALUE_ADDE INFORMATIO CUSTOMER_R INCREASING ROUND_THE_ OVER_ALL_P INTERNET_B BRAND_BUIL -0.34315 -0.42754 -0.48320 -0.48505 -0.49875 -0.53350 -0.55456 -0.56749 -0.58211 -0.59675 -0.61863 -0.62606 -0.69616 -0.39429 Factor2 0.26864 0.20376 -0.25649 -0.02109 -0.04911 -0.07429 -0.11658 -0.26839 -0.27917 0.14480 0.11449 -0.12472 -0.00415 0.69641

The Indian Institute of Planning & Management-Ahmedabad

87

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

HASSLE_FRE RES_NO_ OFFERS_NEW

-0.24851 0.35511 -0.30088

0.67341 0.63514 0.35165

Rotated Solution: Percentage Communalities

RES_NO_ CONVENIENT TAILORED_P 52.94990 18.99210 29.92670

PRIVACY INFORMATIO ROUND_THE_ INTERNET_B 22.43080 39.40820 39.58070 48.46550

INCREASING DIFFERENTI BRAND_BUIL USER_FRIEN HASSLE_FRE OFFERS_NEW VALUE_ADDE 37.70750 25.11630 64.04540 23.57200 51.52350 21.41890 32.11330

CUSTOMER_R VALUE_FOR_ OVER_ALL_P 41.67860 29.01440 40.75090

Rotated Solution: Percentages of Variance Accounted For

Factor1 22.55030

Factor2 13.84350 Rotated Solution: Factor Pattern

Factor1
RES_NO_ USER_FRIEN DIFFERENTI INCREASING ROUND_THE_ VALUE_FOR_ TAILORED_P VALUE_ADDE OVER_ALL_P INTERNET_B INFORMATIO CUSTOMER_R BRAND_BUIL HASSLE_FRE OFFERS_NEW CONVENIENT PRIVACY 0.60083 -0.44367 -0.46842 -0.46979 -0.50287 -0.51075 -0.54686 -0.54844 -0.61608 -0.62514 -0.62764 -0.64552 -0.04282 0.07745 -0.11276 -0.18758 -0.29203

Factor2
0.41048 0.19717 0.17818 0.39544 0.37805 0.17112 -0.01442 0.14263 0.16719 0.30636 0.01247 0.00933 0.79914 0.71361 0.44886 0.39336 0.37286 (BRAND BUILDING) (MARKETING STRATEGIES)

As the above data shows that how 16 attributes are club together and the names are given to them.

The Indian Institute of Planning & Management-Ahmedabad

88

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Group 1. MARKETING STRATEGIES Group 2. BRAND BUILDING

Below Example gives you the picture of how the study of the data has been undertaken

Table No. 4 MARKETING STRATEGIES


Gro up-1 2 MARKETING STRATEGIES 4 5 6 7 Incre Tail ored prod ucts and servi ces ICI CI BA NK 6.63 6.8333 3 6.79 7.21 7.11 7.02 7.43 7.1 2 7.11 7.21 7.22 77.6 8333 7.06 2121 Infor matio n gate way Roun d the clock availa bility Inte rnet Ban king secu rity asing onlin e custo mers loyalt y Differe ntiation Use r frie ndl y web site C R M VA LUE FO R MO NE Y Val ue add ed serv ices OVER ALL PERFOR MANCE TO TA L AV G 8 10 15 16 17 18

HD FC AXI S HS BC 7.76 7.69 7.54 7.83 7.7 7.79 8.09 7.73 7.72 7.66 7.79 7.66 7.45 7.85 7.66 7.58 7.56 7.8 7.57 7.42 7.67

7.6 1 7.61 7.34 7.81

83.6 3 84.9

7.60 2727 7.72 1818 7.80 2727 7.04 0909 6.80 8182

7.7 7.7 8 6.9

7.93

7.52

7.93

4 85.8

7.86

7.83

7.96

3 77.4

SBI BO B IDE AL VA LU E

7.02

7.01

6.94

7.03

6.86

6.89

7.16

7 6.8

7.33

7.1

7.14

5 74.8

6.85

6.92

6.49

6.85

6.8

6.56

6.87

6.82

6.78

7.09

8.81 9 8 9 9 8 8 10 9 9 9 9 97 8182

MARKETING STRATEGIES

The Indian Institute of Planning & Management-Ahmedabad

89

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

TABLE NO. 5: - BRAND BUILDING

Group-2 9 Brand Building through online Marketing ICICI BAN K HDF C AXIS HSB C SBI BOB IDEA L VAL UE 9 8 7.95 7.02 6.84 7.07 6.62 6.26 7.32 7.52 7.06 7.16 7.24 7.04 Hassle free Banking 11

BRAND BUILDING 12 Offers new values to the customers Convenie nt Ebanking Privac y TOT AL AVG 1 3

6.94

6.38

7.31

34.91

6.982

7.35 7.35

7.15 7.38

7.88 7.8

36.76 37.21

7.352 7.442

7.59 6.8 6.47

7.56 6.66 6.6

7.88 7.29 7

38.05 34.39 33.17

7.61 6.878 6.634

42

8.4

BRAND BUILDING

The Indian Institute of Planning & Management-Ahmedabad

90

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Tabular presentation of above club factors and there mean


Over all means of different groups and names given to them. TABLE NO. 6: - AVERAGE RATING OF BOTH THE FACTORS

Group-1 MARKETING STRATEGIES


AVG ICICI BANK HDFC AXIS HSBC SBI BOB 7.062 7.602 7.721 7.802 7.040 6.808 IDEAL IDEAL VALUE 8.818 VALUE

Group-2 BRAND BUILDING


AVG 6.982 7.352 7.442 7.610 6.878 6.634

8.400

The Indian Institute of Planning & Management-Ahmedabad

91

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Description of Factor analysis


we have studied about the technical parts and over all features of E-BANKING and Online Marketing, then we have found out the no. of players in E-Banking such as ICICI BANK, HDFC BANK, AXIS BANK, HSBC BANK, SBI and BANK OF BARODA, then we have found out the Major difference in the attributes of BANKS as we have mention in our report. On the basis of the attributes we have done the Exploratory Research and prepared a Structured Interview to know that what makes customers to use E-Banking? On that basis we come to know about the psychology of consumers and also come to know what makes a consumer to use EBanking and why they prefers particular Bank We have made the Questionnaire on rating basis like a likert scale to know the attitude and perception of the people about Banks. Then we have analysis the Questionnaire by using the Software called SIMSTAT and we have done Factor Analysis. We have 16 attributes in our research and by using the software we have converted that 16 attributes in 2 Factors and name them according to there relation such as E-MARKETING STRATEGIES and BRAND BUILDING by taking the means of attributes we have plotted that in perceptual mapping and come to know the position of different Banks and on that basis we come to know how online marketing help the banking Industries to Build a Brand

Now By Taking The Two Factors In To Consideration The Mean Has Been Taken Of Group-1 And Group-2 Because E-Marketing And Brand Building Are Related With Each Other in General. By Adding Them Together And By Calculate There Means We Have Plotted That On Perceptual Mapping And Come To Know Where Banks are Positioned.

Below matrix shows the calculation of mean of two different factors and they are plotted on the perceptual mapping.
The Indian Institute of Planning & Management-Ahmedabad

92

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

PERCEPTUAL MAPPING

The Indian Institute of Planning & Management-Ahmedabad

93

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

DISCRIPTION OF PERCEPTUAL MAPPING AND HOW WILL PERCEPTUAL MAPPING HELPS BRNAD MANAGERS?
As you have seen above how we club the different Attributes in Two factors i.e. EMarketing Strategies and Brand Building, Taking E-Marketing Strategies on X-axis and Brand Building on Y-axis. We have plotted the different points according to Banks i.e. no. of players in E-Banking such as ICICI BANK, HDFC BANK, AXIS BANK, HSBC BANK, SBI and BANK OF BARODA, then we have found out the Major difference in the attributes of BANKS as we have mention in our report.

HSBC Banks is very near to the idle point that means his practice of Building Brand through Online Marketing is Very effective and liked by the respondents the kind of user friendly website he providing and liking of respondents the features are resulting in Brand Building, AXIS BANK and HDFC Bank are following respectively and Bank of Baroda is very far from Idle point that means he is lacking in his practice of Building Brand through E-marketing strategies and he needs to Improve in his features so that customers should like the features that should result into success of his Brand.

So the picture is very self explanatory that how the Brand Managers should keep the different features in his mind and make there strategies according to that or Making necessary changes in his features in which they are lacking in that should help them to result in to Building Brand by using E-marketing strategies.

The Indian Institute of Planning & Management-Ahmedabad

94

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

CHI-SQUARE TEST
Adapted by Anne F. Maben from "Statistics for the Social Sciences" by Vicki Sharp The chi-square (I) test is used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories. Do the numbers of individuals or objects that fall in each category differ significantly from the number you would expect? Is this difference between the expected and observed due to sampling error, or is it a real difference?

Chi-Square Test Requirements 1. Quantitative data 2. One or more categories. 3. Independent observations. 4. Adequate sample size (at least 10). 5. Simple random sample. 6. Data in frequency form. 7. All observations must be used.

The steps in using the chi-square test may be summarized as follows: I. Write the observed frequencies in column O 2. Figure the expected frequencies and write them in column E. 3. Use the formula to find the chi-square value: 4. Find the df. (N-1) 5. Find the table value (consult the Chi Square Table.) 6. If your chi-square value is equal to or greater than the table value, reject the null hypothesis: differences in your data are not due to chance alone.

Chi-Square Test Summary

The Indian Institute of Planning & Management-Ahmedabad

95

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

SITUATION
The average rating given by 100 respondents to the different banks are observed through primary research According to Research, the expected frequencies or number of customers choosing each Banks. Expected 25% would choose ICICI BANK, 20% would choose HDFC BANK, 15% would choose AXIS Bank, 20% would choose HSBC Bank, 15% would choose SBI and 5% would choose Bank of Baroda. Now took a random sample of 100 customers and asked them their Banks preferences.

The null hypothesis is online Marketing effects Brand Building and Vice a versa. Table No. 7: - Brand Building can be done through online marketing preference of 100 customers.

BANKS` ICICI BANK HDFC AXIS HSBC SBI BOB

OBSERVED 20 15 20 15 20 10

EXPECTED 25 20 15 20 15 5

The chi-square formula used on these data is X2 = (O - E)2 E where O is the Observed Frequency in each category E is the Expected Frequency in the corresponding category is sum of df is the "degree of freedom" (n-1) X2 is Chi Square

The Indian Institute of Planning & Management-Ahmedabad

96

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

PROCEDURE
We are now ready to use our formula for X2 and find out if there is a significant difference between the observed and expected frequencies for the customers in choosing Banks. We will set up a worksheet; then you will follow the directions to form the columns and solve the formula.

TABLE NO. 8: - Directions for Setting up Worksheet for Chi Square O


BANKS` ICICI BANK HDFC AXIS HSBC SBI BOB

(O-E)

(O-E)2 25 25 25 25 25 25

(O )2 __________

20 25 15 20 5 15

25 20 20 15 10 10

5 5 5 5 5 5

1.00 1.25 1.25 1.67 2.50 2.50 X2 = 10.16

After calculating the Chi Square value, find the "Degrees of Freedom." (DO NOT SQUARE THE NUMBER YOU GET, NOR FIND THE SQUARE ROOT THE NUMBER YOU GET FROM COMPLETING THE CALCULATIONS AS ABOVE IS _CHI SQUARE.) Degrees of freedom (df) refers to the number of values that are free to vary after restriction has been placed on the data The degrees of freedom here is defined as N - 1, the number in the group minus one restriction (6 - 1 ). Find the table value for Chi Square. Begin by finding the df found in step 2 along the left hand side of the table. Run your fingers across the proper row until you reach the predetermined level of significance (.05) at the column heading on the top of the table. The table value for Chi Square in the correct box of 5 df and

P=.05 level of significance is 11.07

The Indian Institute of Planning & Management-Ahmedabad

97

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

As the calculated chi-square value for the set of data we have analyzing (10.16) is equal to or lesser than the table value (11.07), so we will accept the null hypothesis.

Yes, we will accept the Null Hypothesis i.e. E-marketing surely affects the Brand Building and which is technically proved by our Chi-square test, it will help the Brand Manager to understand the E-Marketing feature and to improve them which will result in to Building Brand.

The Indian Institute of Planning & Management-Ahmedabad

98

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

SECONDARY RESEARCH Case Studies


CASE STUDY OF ICICI BANK OF BUILDING BRAND BY INTERNET BANKING
The Internet Banking Boom In 2001, a Reserve Bank of India survey revealed that of 46 major banks operating in India, around 50% were either offering Internet banking services at various levels or planned to in the near future. According to a research report,
1

while in 2001, India's

Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh by 2003. Also, while only 1% of these Internet users utilized the Internet banking services in 1998, the Internet banking user base increased to 16.7% by mid- 2000. Many of the major banks like ICICI, HDFC, IndusInd, IDBI, Citibank, Global Trust Bank (GTB), Bank of Punjab and UTI were offering Internet banking services. Based on the above statistics and the analysts' comments that India had a high growth potential for Internet banking, the players focused on increasing and improving their Internet banking services.

As a part of this, the banks began to collaborate with various utility companies to enable the customers to perform various functions online. ICICI's 'Infinity,' which was already a leader in the Indian Internet banking arena, began to allow its customers to pay their online real time shopping bills. HDFC, through its 'payment gateway' feature, allowed its Internet banking customers to make online and real time payments for their purchases. HDFC also entered into tie-ups with various portals to provide these business-tocustomer (B2C) e-commerce transactions. Centurion bank acquired an equity stake in the teauction.com portal to bring together buyers, sellers, suppliers, registered brokers and associations in the tea market and eliminate the need for their physical presence at various auctions. As more banks entered Internet banking arena, the competition between the banks also increased. This compelled the banks to focus on capturing new markets and customers and adopting advanced technology on the Internet. In the light of these

The Indian Institute of Planning & Management-Ahmedabad

99

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

developments, industry watchers remarked that Internet banking had arrived in a big way. Though it had a long way to go compared to the global standards, it was beginning to be seen as a replacement for the traditional banking set up in the future.

Globally, the banking business has always been in the forefront of harnessing technology to improve its services and efficiency. Banks have been quick to adopt rapidly evolving electronic and telecommunication technologies to deliver an extensive line of value added products and services to their customers. By the early 1990s, direct dial-up connections, personal computers, tele banking and automated teller machines (ATMs) became common in most developed nations. Internet banking evolved in the mid-1990s when Internet and the World Wide Web began to catch on. Soon, many major banks in the US and Europe began to use the Internet to provide banking services. Internet banking is a web-based service that enables the bank's authorized customers to access their account information. It allows the customers to log on to the bank's website with the help of a bank-issued identification and a personal identification number (PIN).

The banking system verifies the user and provides access to the requested services. The range of products and services offered by each bank on the Internet differs widely in their content. Most banks offer Internet banking as a value-added service. Internet banking has also led to the emergence of new banks, which operate only through the Internet and do not exist physically. Such banks are called 'Virtual' banks or 'Internet only' banks. The products and services offered by the banks on the Internet can be divided into three types:

Information Kiosks: It includes providing information regarding various products and services offered by the bank to its customers and others in general. The bank's site receives and answers queries of customers through e-mails.

The Indian Institute of Planning & Management-Ahmedabad

100

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Basic Internet Banking: It includes enabling customers to open new accounts, check account balance and pay utility bills.

E-commerce Banking: Banks function as electronic market places (e-market place) enabling customers to use their accounts for money transfers, bills payment, purchase and sale of securities and online real time purchases and payments.

In a typical Internet banking transaction, customers' requests for online banking information are passed on from Web server to the bank's Internet banking server through the WWW interface. These requests pass through a firewall2 before they reach the Internet banking server. Due to the use of SSL technology,3 only authenticated requests reach the Internet banking server. The customer information database is stored on a bank's server, which is protected by the use of various security tools in addition to the firewall technology. The WWW interface is the only media of communication with the Internet banking server and Internet banking server is the only media of communication with the customer database, thus ensuring the safety of operation and customer data. When the customer requests reach the Internet banking server it passes the requests to the bank server hoarding customer database. The database provides the required information to the Internet banking server, which is in turn passed on to the web server, through the firewall, from where the customer is able to access it (Refer Figure I). This sort of architecture, known as the 'three-tiered architecture' (comprising of a web server, Internet banking server and customer database protected by firewalls) creates a controlled environment, which allows quick incorporation of Internet security technologies.

A security analyzer constantly monitors login attempts and recognizes failures that could indicate a possible unauthorized attempt to log into an account. When such trends are observed, steps are automatically taken to prevent that account from being used. The most significant benefit of Internet banking is the ready accessibility of bank accounts at all times. The inconvenience of visiting and waiting at the banks is also eliminated.

The Indian Institute of Planning & Management-Ahmedabad

101

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

INTERNET BANKING TRANSACTION MECHANISM

This result in, enhanced customer satisfaction, reduced customer attrition and increased customer base. Internet banking considerably reduces transaction costs for the banks. According to a study conducted by consultants Booz-Allen & Hamilton, the cost of an average transaction on the Internet is as low as 13 cents, compared to $ 1.07 through the branch, 54 cents through the telephone and 27 cents through the ATM. The study also stated that Internet banking helped banks reduce the branch load and attract future customers. In India, the cost of one banking transaction through the Internet amounted to 10 paise to the bank, as compared to Re.1 through a branch, 45 paise through an ATM, 35 paise through phone banking and 20 paise through debit cards.

The low transaction costs and the promising picture painted by analysts induced many banks in India to introduce Internet banking services during the late 1990s. However, only few of them succeeded in moving beyond the launch of the website. ICICI's Internet banking service 'Infinity' became the most recognized and popular service in the country, providing a wide range of products and services. ICICI Internet Banking Initiatives ICICI bank was incorporated as a commercial banking company, by the Industrial Credit and Investment Corporation of India (ICICI) 4, in May 1994. The first ICICI branch was started in June 1994 at Chennai. The bank provides an array of domestic and international banking services to enable national and international trade and business, investment and foreign exchange and treasury services. Right from its inception the bank focused more on incorporating advanced technology. The bank operated the largest chain of ATMs in the country, which amounted to more than 450 in 2000. All the bank's branches were fully computerized and networked through V-SAT5 technology. By 1999, the number of branches increased to 65 and the bank plans to have over 200 branches by the end of 2002.

The Indian Institute of Planning & Management-Ahmedabad

102

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

In April 2000, ICICI became the first Indian bank to be listed on the New York Stock Exchange. ICICI was always regarded as one of the best private banks to foster advanced technologies in the banking sector As part of its technology drive, in 1997, ICICI launched 'Infinity,' the first Indian Internet banking service.

The service was launched to reduce transaction cost and offer convenient banking to customers. This meant enabling the customers to access their bank account and make transactions at any time. ICICI realized that to make Infinity a success, it would have to invest heavily in sound Internet banking e-commerce technology. During 1995-99, ICICI invested Rs 50 million in online banking technology solutions. In 1997, ICICI bought the 'BankAway'6 software from Infosys. BankAway was an e-commerce solution that provided the bank a platform to offer an integrated financial services portal to the customers. It offered access to account information, bill payment, cash management, trade finance and online shopping. Infinity' was initially targeted at the non-resident Indians (NRIs) to enable them to manage their bank accounts in India through the Internet. According to the bank's sources, Infinity helped to increase the business generated from NRI customers from Rs 300 million in 1997 to Rs 1.4 billion in 1998.

The service was also aimed at individuals in the age group of 30 to 50 years working in the corporate sector and proficient in using technology. However, over the next few years, the bank enhanced its services to attract other customers as well. As a result, by early 2000, ICICI had over 110,000 Internet banking customers. In the first half of 2000, ICICI's Internet banking customer base touched 275,000. On account of the growing competition in the Internet banking sector, ICICI focused on enhancing and extending its business-to-business (B2B) and B2C services through tie-ups and acquisitions. The bank entered into a 50-50 joint venture with Satyam Infoway7 in December 1999 to offer retail banking products and services on the Internet. BankAway was the first Internet banking solution in India and was installed at four out of the six leading banks in the country offering Internet banking services. It was featured in

The Indian Institute of Planning & Management-Ahmedabad

103

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

a study, 'Ranking of International Internet Banking Solutions' by Meridien Research, USA. BankAway was the only solution from Asia Pacific to be featured in the report.

7] Satyam Infoway or Sify was a Chennai-based subsidiary of Satyam Computer Services. Sify focused on providing Internet solutions like ISP operations, cybercafes and e-commerce consultancy.

R. Ramraj, Managing Director, Satyam Infoway, said, "ICICI bank has many corporate clients and the idea is to develop e-commerce on a B2B platform where payments will be facilitated through ICICI. The alliance is going to give a big fillip to B2B." Infinity's services included account information, funds transfer, bill payments, online Real-Time eshopping payments; communication with bank manager, various customized services. The products were targeted at two different customers: individuals and small businesses, and corporates having an annual turnover of over Rs 500 million. In the first half of 2000, ICICI introduced new Internet banking products for school and college students. Kid-ebank was introduced to help children between 5-12 years to open an account and check the account balance on the Internet. Bank@campus was a service for students to enable services like ATMs, Smart Card, educational loans etc. It was launched across the country in many campuses. As part of its B2C programs, ICICI tied up with 10 shopping malls all over India. This allowed customers to shop and pay bills online from their accounts. It also tied up with 24 billing companies across 11 cities, including Bharat Sanchar Nigam Ltd. (BSNL) for bill payment. The bank also offered mutual funds related services to its customers. It also tied up with automobile major Ford, for local delivery of its car 'Ikon' against orders placed on the Internet. In 2000, ICICI bank acquired the Bank of Madura. Bank of Madura (BoM). BoM was amalgamated with ICICI bank from March 10, 2001, as a part of which, ICICI acquired BoM's customer base of 1.2 million. However, analysts felt the biggest gain was BoM's IT-savvy employees. By 2001, ICICI bank had emerged as one of the leading providers of Internet banking services in India. The bank was reportedly moving towards becoming a full-fledged e-commerce company in a couple of years. Nachiket Mor, Head of ICICI Treasury said, "The Seven-Eleven

The Indian Institute of Planning & Management-Ahmedabad

104

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

supermarket chain in Japan has recently applied for a banking license. This is the way world is moving. If supermarkets get into banking, then it is also time for banks to get into the selling of consumer durables." The Future Despite the rosy predictions and increased corporate activity, the Indian Internet banking system is facing many hurdles. The problems include operational risks, security risks, system architecture risks, reputational risks and legal risks (See Exhibit I for Problems in Internet Banking). Apart from the security issues, there are a host of other problems like:

PC user base in India is extremely low compared to global standards.

The Internet user base is limited.

Lack of infrastructure to advanced technology based banking services.

The absence of a regulatory framework for Internet banking transactions in India.

The mindset of the Indian consumer, who prefers personal interactions and is not very comfortable, doing transactions through the Internet.

Limited awareness about the potential of Internet banking on the part of banks.

The issue of banks not being ready to realize the full benefits of Internet banking was aptly summed up by a critic, "Much of what is now on display at bank websites is an embarrassment, to put it politely. The average site has information about certain products, e-mail contacts of bank department, perhaps the Chairman's annual general meeting speech as well. A mere information booth. This is definitely not Internet banking." However, banks are working towards addressing these problems. The security issues can be tackled by having the bank's systems technologically equipped to evade operational and security risks. Reputational risks can be prevented by testing of the system before

The Indian Institute of Planning & Management-Ahmedabad

105

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

implementation, developing contingency plans (to handle system disruptions, system hackers, security lapses and virus attacks) and creating back-up facilities Legal and cross-border risks can be avoided through proper customer identification devices, information screening techniques, periodic reviews on compliance with various laws, and gaining knowledge of various national laws (applicable) and guide the customers through their cross-border dealings. Apart from ensuring the security of the Internet-based transactions, ICICI is taking steps to overcome the other hurdles. The bank is tying up with computer manufacturers to make PCs available to customers at low prices. The bank also plans to tie-up with Sify to place its ATMs in Sify cybercafes.

In 2000, ICICI opened Internet kiosks (cabins) at its ATMs to enable easy Internet access to its customers for banking. Many other banks are also adopting such practices. Analysts claim that Internet banking holds lots of potential with the emergence of growing Internet awareness among customers, integration of banking services with e-commerce service, the increasing reach of the Internet and the entry of global players in the banking sector. Even the Reserve Bank of India has come out with Internet banking related guidelines (Refer Exhibit II). With ICICI already having decided to make the Internet an integral part of its future business plans and other banks reportedly following suit, Internet banking seems poised to become an important part of the Indian banking sector in the years to come.

Source: ICMR.

The Indian Institute of Planning & Management-Ahmedabad

106

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

CASE STUDY
Banks Build Brand Loyalty With E-Mail Marketing

A look at how e-mail technology is enabling a more relevant, loyalty-building Brand of marketing.

Overview
Todays savvy corporate clients demand greater value and tangible solutions from a reduced number of banking partners. While this desire by corporates nets banks fewer customers overall, the potential revenue gains that banks can realize from these finite relationships have never been greater. At the same time, however, the financial implications of customer churn related to a shrinking and shifting client pool means bank marketers have much to lose if they fail to modify their methods for retaining existing relationships. To win the trust and business of CFOs, bank marketers must migrate away from traditional, product-oriented communications toward more informative, solutionsoriented messaging such as newsletters, Webinars, white papers and case studies. After all, clients arent interested in buying products; they want proven business solutions. Banks that shift away from a product-centric culture toward a customer centric model will be better positioned to maintain client loyalty and grow their bottom lines organically.

With customers in short supply and bank products and services highly commoditized, financial institutions must differentiate themselves by creating and communicating unique value. For many, the primary communications channel is e-mail. For example, banks including Wells Fargo, Key Bank and Royal Bank of Canada are shifting away

The Indian Institute of Planning & Management-Ahmedabad

107

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

from product-centric marketing toward customer- centric tactics. Strategies include using e-mail communications such as electronic newsletters to respond to their customers increasing need for on demand, strategic business intelligence. Customers are devoted to companies that help them learn and make them smarter, says Chip Bell, a consultant and author of several customer experience books, in a recent Web trends white paper. Its very powerful. It says, I care about your growth. Indeed, relevant content keeps current clients loyal and indifferent to poachers. Segmenting your reader list allows you to time the distribution of product information and perspectives to complement clients financial life cycles, delivering the right product to the right client at the right time. In Business-to Business (B2B) marketing circles, e-newsletters are described as the point where customer service and marketing converge. Financial professionals seem to agree. CFOs are very unlikely to respond to traditional advertising ... they appreciate succinct reports and executive level research, says Caroline Smith, Director of Marketing at CFO magazine, in a recent interview with MarketingSherpa. Those who can deliver this kind of relevant information, in a concise and direct format, will be the most likely to get the attention of todays CFO. Further validating Smiths assertion, Forrester Research reports in its 2004 white paper, The Marketing Technology Backbone, that traditional advertisings effectiveness has all but vanished. Consumers have grown intolerant of the volume and irrelevance of ads, the report says. Mass advertising encourages churn not loyalty, further commoditizing markets. Engaging Clients to Reduce Churn By contrast, solutions-based messaging that clients have opted in to receive cements existing relationships and affords banks the opportunity to cross market complementary services or products to a receptive customer base. The Direct Marketing Association (DMA) says the return on investment for e-mail dwarfs that of any other direct response marketing vehicle. The DMA Says email generated a whopping $57.25 for every dollar spent on it in 2005, compared to just $22.52 for every dollar spent on non-e-mail Internet marketing. Commercial e-mail generated $16.5 billion in U.S. sales in 2005, the association says. Furthermore, e-mail marketing agency Quris reports that 40% of e-mail subscribers will go out of their way to patronize a company whose e-mail programs they like. What these statistics reveal is that email marketing can positively impact your banks organic growthdefined as the

The Indian Institute of Planning & Management-Ahmedabad

108

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

increase in your profitability brought about by internal rather than external means. For financial institutions, organic growth means more emphasis on customer retention, brand loyalty and share of wallet. Organic growth is the key opportunity for most financial services companies today, and significant growth can be achieved by developing deeper, more relevant and more profitable relationships with customers, states an article published by Accenture, a global provider of management consulting and technology services. Gartner Research adds that banks are almost exclusively focused on organic growth. This stems from the fact that it is five times more costly to acquire new clients than it is to retain existing customers, the firm says. Additionally, loyal customers are more likely to refer new business and utilize higher margin products. E-mail communications provide touch points with these clients, keeping them engaged with your brand Banks are replacing outbound customer communications with messages delivered at customer touch points, says Pradeep Amladi, Director of Industry Marketing, and Epiphany. By communicating relevant offers to customers as they conduct business in person, on the phone or online, banks are in a better position to up-sell,while they have their customers permission, time and attention, Amladi says in a recent Webtrends white paper. How E-Newsletters Score in Banking Consultative e-newsletters, case studies and white papers enhance your banks brand as a thought leader and business advisor. The capability and willingness to invest in the success of clients in this way demonstrates your commitment to your clients and to deliveringhigh-caliber customer service. When an e-newsletter is first published, the e-mail list of targeted recipients is often culled from client and prospect addresses supplied by bank calling officers. However, as a newsletter builds a reputation for delivering quality content and consultative value, additional individuals self-subscribe, or opt in, to receive the publication. Not only are your targeted markets opting in to receive e-newsletters, but theyre opening and clicking through to read them, as well. As shown in the chart on page 4 (Comparing E-Mail Open Rates), industry-wide e newsletters distributed over the past two years by financial services providers averaged open rates of 70%. This statistic is double the average for all types of financial institution e-mail communications during the same period, reports e-marketing research firm MailerMailer. (The 70% figure is based on the open rates of more than 80 newsletter editions published by our firms

The Indian Institute of Planning & Management-Ahmedabad

109

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

clients. Even though e-mail open rates have declined over the past year, research shows that e-newsletters providing a significant consultative value consistently maintain open rates that are double the industry average for all types of financial e-communications.)

List Size
25 499 500 999 1,000

Open Rate
42.72% 34.78% + 31.13%

Source: MailerMailer

CLICK-THROUGH RATE BY INDUSTRY

Financial services communications also score high in click-through rates. In a 2005 survey of click-through rates by industry conducted by e-mail marketing company MailerMailer, banking (8.64%) ranks behind only government e-communications (9.18%) for generating the most click-through activity

The Indian Institute of Planning & Management-Ahmedabad

110

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Capitalizing on Cross-Selling Opportunities Even while maintaining your focus on consultative advice and marketplace intelligence, there are ways to showcase your product and service portfolio. By presenting product information within the context of case studies or problem/solution formats, you effectively help clients overcome their own business challenges, while illustrating the value of your solutions.

COMPARING E-MAIL OPEN RATES

Information presented in such a manner takes the reader through the consideration path, which is a necessary and sometimes lengthy part of the sales process. As a result, you can close more sales with fewer meetings, accelerate the sales process and lower your cost of sales. The e newsletter sample that follows features a list of articles and related financial products offered in a particular edition. Customers can select which topics and/or services and products they find valuable, while simultaneously being exposed to the banks other areas of expertise. The sample \ broadcast notice optimizes cross-selling opportunities because it highlights a number of different topics, any one or more of which might interest your readers According to Synergistic Research Corporation, about 20% of Internet users who receive marketing-oriented financial e mails actually obtain a financial service as a result. It is therefore in your banks best interest to similarly expose your readers to products that might appeal to their needs. Risks of Not Engaging the Customer A recent American Banker article adds that e-mail newsletters are a necessary tool for retaining customers; most lines of business will suffer if a bank neglects to offer them. Banks that fail to provide these consistent, positive touch points with clients run the risk

The Indian Institute of Planning & Management-Ahmedabad

111

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

of seeming inattentive. Customer service is the key to client retention. In fact, 74% of respondents to said that when they stopped using a product or service, customer service was a major factor in their decision. Even the very basic act of re-communicating with clients gets you tremendous returns, says Michael Lowenstein, co-author of Customer Winback: How to Recapture Lost Customersand Keep Them Loyal. People do want to be engaged ... they want to know that you care, and they want to hear from you, he says. If, in hearing from you, clients receive needed tools and information that help them succeed, youve reinforced your brand as a business partner. The more embedded you become in your clients business process, the more likely the client is to remain loyal to the partnership. Further proof of the effectiveness of e-mail can be found in The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, by Frederick F. Reich held and Thomas Teal. In their book, the authors report that customer churn rates decrease drastically when customers stay connected to the brand. On average, as little as a 5% reduction in customer churn can positively impact net profits by as much as 20%, the authors claim. This positive impact is estimated to reach as high as 80% in the banking industry. According to a recent report a November 2004 by technology company Exametric, Inc., when Wells Fargo realized a 1% reduction in customer churn it resulted in a $20 million boost in annual net income. The report added that 80% of Wells Fargos revenue growth came from cross-selling to existing customers. The bank consequently realigned its marketing strategy to be more customer- centric. How is this strategy working? The Customer Think Corporation reported in a recent white paper that Wells Fargo has achieved double-digit profit and revenue growth as a result of reorganizing around its customers. Acquisitions: A Zero Sum Game On average, the banking industry loses 12.5% of customers each year, while acquiring new customers at a rate of just 13.5%, according to Yankelovich, Inc. And these numbers dont tell the whole story. Loyal customers statistically spend more, refer additional customers and become more profitable over time. Conversely, new prospects cost anywhere from $200 to $3,500 each to acquire, and relatively few of them will be profitable, Gartner Research says. To illustrate this point, consider him following cenario: Assume you have 1000 large corporate accounts. Each ear, your account list grows by 13.5%. Lets also factor in the cost of those acquisitions. Well use a figure on the low endsay $300 per new account.

The Indian Institute of Planning & Management-Ahmedabad

112

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

After three years, using that average churn rate of 12.5%, your net profit will have increased about $3.6 million ASSUMING YOU HAVE 2,000 LARGE CORPORATE ACCOUNTS

Factors: $63,677 annual net profit value per client* 13.5% acquisition rate $300 acquisition cost per new client

AVERAGE CHURN RATE: 12.5% churn in three years: + $3.6 million

REDUCED CHURN RATE: 7.5% churn in three years: +$22.9 million

*Annual net profit estimates from Treasury Strategies 2006 Benchmark Report. Large corporations are defined as those having more than $1 billion in revenues.

Now, all things being equal, lets see what happens when we reduce that churn rate to 7.5%: Your net profit soars to about $22.9 million. The figures dont lie: Improving your client retention ratio even slightly is the surest and fastest way to profitability.

The Indian Institute of Planning & Management-Ahmedabad

113

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

CASE STUDY E-Mail Marketing Positions ABN AMRO As Trusted Advisor


ABN AMRO faced two challenges when it decided to launch an e-mail marketing program in 1998, beginning with a quarterly newsletter for treasury services customers. The first challenge was how to construct a distribution list consisting of qualified e-mail addresses. The second challenge was to cultivate relevant, meaningful content on an ongoing basis. To meet these challenges head on, the bank teamed up with Financial Publishing Services (FPS), a marketing communications firm. Through a telemarketing campaign, the partners validated 500 e-mail addresses culled from an existing database of contacts, which was sufficient to begin the program. ABN AMRO subsequently worked with FPS to develop a pipeline of customized articles based on interviews with experts, including those from the banks Treasury Management Services department. Over the past decade, ABN AMROs email distribution has grown to exceed 10,000 clientsand that figure continues to rise. Our clients are always adding more recipients, says Marna Goldwin, Senior Vice President of Transaction Banking Marketing & Communications for ABN AMRO. If they move, they want to make sure that they stay on the [broadcast] list. The feedback has been very positive. The banks e-newsletter open rates confirm the value clients derive from the program. ABN AMROs e newsletters achieve more than double the average open rate reported in Mailer in a 2006 survey, which was 31.6% for banking/finance sector e communications. Such high open rates support the popularity of the banks program, through which its corporate treasury practitioner clients can receive five distinct e-newsletters. Publications include the bimonthly Cash Solutions newsletter and quarterly newsletters Commercial Card Solutions and Global Trade Advisor, which are directed to management- level personnel at these client organizations.

The Indian Institute of Planning & Management-Ahmedabad

114

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The bank also offers Treasury Tips to Users of its CashPro treasury management system and MaxTrad Exchange to users of its MaxTrad trade services system. These publications provide tips and how-to information. ABN AMROs e-newsletter programs are successful because they build product and service awareness, optimize cross selling opportunities, reinforce its brand and, most importantly, enhance client relationships. Its more important that we educate customers as a trusted advisor, Goldwin says. The cross-sell Opportunity then becomes one of the benefits of having built a strong relationship. Acquisitions are driven by our advisory and relationship management teams; our goal is to retain those clients and expand those relationships. Furthermore, ABN AMROs e newsletters connect with customers because they provide real business tools and information. Each edition of Commercial Card Solutions, for example, includes a case study, says Trish Miller, First Vice President of Marketing & Communications at ABN AMRO. These success stories are popular because they resonate with clients. Theyre very effective and are probably one of the most important components of our overall program.

Goldwin notes that customers glean additional value through industry and regulatory development updates featured in the e-newsletters. Such updates are particularly valuable to readers who may lack the time to participate in industry conferences or whose budget does not allow for membership in trade organizations that provide this type of information. Ultimately, these companies rely on the bank to keep them informed about industry changes, as well as about new bank products that enable them to improve internal processes and overcome business challenges, Goldwin says. Our e-newsletter program fills this need for them.

ABN AMROs marketing efforts also receive rave reviews from internal staff members. I know our sales specialists really value having these kinds of communications vehicles to keep their clients informed, Goldwin says. Miller adds that sales advisors tell her they cant always call on customers as often as they would like. Our e-newsletters provide the advisors with another tool to

The Indian Institute of Planning & Management-Ahmedabad

115

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

touch their customers electronically when they cant reach out to them personally, Miller says.

With such success to date, ABN AMRO expects e-mail marketing to become even more important to its future overall mix of treasury management marketing. E-newsletters are a widely accepted communications channel today and are a reasonable investment, Goldwin says. The main challenge going forward will be to customize our messages even further, and to continue to develop more communications where the content is client-driven rather than bank-driven.

Ultimately, these companies rely on the bank to keep them informed about industry changes, as well as about new bank products that enable them to improve internal processes and overcome business challenges, Goldwin says. Our e-newsletter program fills this need for them.

The Indian Institute of Planning & Management-Ahmedabad

116

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

CONCLUSIONS
Analysis from the Questionnaire
Our understanding from the above factor analysis and perceptual mapping is that different Banks is LACKING in different ATTRIBUTES and as they are shown above such as price, value delivery, technical performance of E-Banking and over all feature (Technicals and Branding Features) and over all Comfort Level (During using web site) as compare to each other Banks of using online marketing. There is not clear comment from the surveyed people that they do make notice of the Banks. If we look at the comments posted on the mouthshut.com about the Banks as well as advertisement, their we can get a clear cut appeal from masses who have rated the advertisement poor. They have also mentioned that they fail to acknowledge whether Banks is advertising himself or it is a product advertisement to Build a Brand

They are failed to create an impact on the mind of people and also they should try to improve on the attributes of the Banks.

y Analysis From the Structure Interview


Our understanding from the Structure Interview is that mainly the user of E-Banking are doesnt give much importance to PRICE and they are more concern with CRM and the Hassle free banking through E-banking. They told that the user friendly web site of Banks can able to Create an impact in the mind of the people as compare to Traditional Marketing and also the different advertisement posted on different websites or links so that every times it reminds the customers the usage of the Ebanking.

The Indian Institute of Planning & Management-Ahmedabad

117

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Analysis from the Group Discussion


Today all the companies in India and corporate in India have products or services to sell and they are advertising them via T.V, newspapers, brochures, magazines, radio etc. But its time to take the promotions online. Online advertising is an effective way of advertising that uses the power of Internet and World Wide Web in order to deliver marketing messages and attract customers. Different examples of online advertising include contextual ads on search engine results pages, banner ads, advertising networks and e-mail marketing, including e-mail spam and newsletters. For online advertisement in India you can use India centric websites which are popular and have a good traffic building. For e.g. Dimakh Consultants offers these online advertisement solutions and provides options to online media buying in India through various cost effective channels.

THE OUT COME OF THE GROUP DISCUSSION THAT IS WHY ONLINE ADVERTISEMENT IN INDIA
The number of net surfers in India is increasing at a rapid rate and studies have shown that people are spending more and more time on the web. Buying products online is convenient, hassle-free and easy. Online market places allow buyers to see the best deals available without moving from their desks and choose the products they want which they could not find at the local supermarket. For a company putting an advertisement online gives a benefit of being present right next to your competition when people are looking for products or services. Online Advertisement in India is a fast growing market and media buying is becoming a very important decision for all online spenders. The biggest advantage of Online Advertisement is it helps you to track your user online and understand online consumer behavior.

The Indian Institute of Planning & Management-Ahmedabad

118

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

(ROI)
RETURN ON INVESTMENT How the Brand Manager should keep in mind the ROI through Online Marketing?

As you can see from the case analysis of ICICI bank that how they getting the Return on Investment through E-Marketing strategies.

Cost Effective
ICICI's Internet banking service 'Infinity' became the most recognized and popular service in the country, providing a wide range of products and services. In 1997, ICICI bought the 'BankAway' software from Infosys. Bank Away was an e-commerce solution that provided the bank a platform to offer an integrated financial services portal to the customers.

According to a study conducted by consultants Booz-Allen & Hamilton, the cost of an average transaction on the Internet is as low as 13 cents, compared to $ 1.07 through the branch, 54 cents through the telephone and 27 cents through the ATM. The study also stated that Internet banking helped banks reduce the branch load and attract future customers. The study also stated that Internet banking helped banks reduce the branch load and attract future customers. In India, the cost of one banking transaction through the Internet amounted to 10 paise to the bank, as compared to Re.1 through a branch, 45 paise through an ATM, 35 paise through phone banking and 20 paise through debit cards.

Brand Awareness in youth


ICICI introduced new Internet banking products for school and college students. Kid-ebank was introduced to help children between 5-12 years to open an account and check the account balance on the Internet.Bank@campus was a service for students to enable

The Indian Institute of Planning & Management-Ahmedabad

119

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

services like ATMs, Smart Card, educational loans etc. It was launched across the country in many campuses. As part of its B2C programs, ICICI tied up with 10 shopping malls all over India. This allowed customers to shop and pay bills online from their accounts. It also tied up with 24 billing companies across 11 cities, including Bharat Sanchar Nigam Ltd. (BSNL) for bill payment.

Brand Awareness in Corporate


R. Ramraj, Managing Director, Satyam Infoway, said, "ICICI bank has many corporate clients and the idea is to develop e-commerce on a B2B platform where payments will be facilitated through ICICI. The alliance is going to give a big fillip to B2B." Infinity's services included account information, funds transfer, bill payments, online Real-Time eshopping payments; communication with bank manager, various customized services. The products were targeted at two different customers: individuals and small businesses, and corporates having an annual turnover of over Rs 500 million

The Indian Institute of Planning & Management-Ahmedabad

120

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

UNDERSTANDING FROM CASE STUDY OF


Banks Build Brand Loyalty With E-Mail Marketing

The marketing strategy adopted by the company is perfect. The payment options provided boost to the sales. All promotional strategies are working great. Advertising section is one aspect that the company has failed to make most out of it.

From the statistical tools used to verify the results, we can conclude that the Banks has made a mark in terms of quality, luxury, MUV and feature but what lacks miserably is a good positioning. The sales are not benefiting from the advertisements to increase their number. Its whole and sole the companys policies of payment, offers and schemes and the dealers attempts to make sales. The product is extremely good, best in its class and one of its kinds.

When it comes to online marketing, people are still very particular since in India purchase to use particular E-Banking services. The company needs to define their target market well. The advertisements do not reflect as to whom the marketing is associates to. Who are the people for whom it can be a style statement? Who can use it the best? The advertisement lack of appeal. It has content and quality but not offer.

The Indian Institute of Planning & Management-Ahmedabad

121

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

ANALYSIS FROM CASE STUDY OF ABN AMRO


Cost of Inaction E-mail marketing continues to thrive across all B2B sectors, but research clearly indicates that its bottom-line impact is particularly strong for banks. When considering whether you should invest in a brand enhancing e-marketing program, keep in mind that the cost of not doing so could be far greater.

The Benefits of Offering E-Newsletters E-newsletters generate many benefits that are not available through other marketing alternatives, including:

Enhanced brand awareness and marketplace credibility Improved client retention High industry readership Facilitation of cross-selling opportunities Perception as a customer service, not a sales pitch Accelerated sales processes, decreased cost of sales Quantifiable results: Open and click through rates provide tools for measuring an E-newsletters effectiveness.

By communicating relevant offers to customers as they conduct business in person, on the phone or online, banks are in a better position to up-sell, while they have their customers permission, time and attention,

The Indian Institute of Planning & Management-Ahmedabad

122

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

RECOMMENDATION
As far as advertisement of Banks goes, a complete makeover is required. As I have thought of a theme and its in the hands of the advertising gurus to make magic out of our raw idea.

y From the view point of attributes: -

As the perceptual mapping shows that how Banks performing well on the basis of ATTRIBUTES. The different Banks used to have reviews and ratings in features and reliability. How the Banks like ICICI is good in Brand Building and low in Marketing strategies. Major problems of the past have been given solutions, especially those that were given recalls by the NHTSA and those that were noticed by major critics.

As Banks is lacking in better price, delivering better value, Technical performance and over all Features and comfort level. So Banks should work on the ATTRIBUES of the online Marketing by changing the E-marketing Strategies and Brand building Features of the E-Banking and also provide better value to the customers.

The Indian Institute of Planning & Management-Ahmedabad

123

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

From the view point of ADVERTISMENT.


Idea: First of all, over all advertisement should be increase of Banks through online marketing because in our survey many people dont know the E-Banking options and many people even dont know the usage of E-banking.

Idea: As our survey shows that the maximum Banks holders are from the people who are from business occupation and from service also, so they are not getting time for watching televisions so they should increase there advertisement through Online marketing ads.

Idea: As the other competitors are endorsing celebrity in there ads for example: Amir Khan in Toyota, so they should also endorse celebrity in there ads and design the web sites and online marketing strategies accordingly

For Example
Prudential ICICI

The online advertising of Prudential ICICI has also caught the attention of Net users in India. Is it just the frequency or the creativity which should get the credit? Ramani of Mediaturf, the agency behind Prudential ICICI campaigns, said, "The creative work for various mutual fund companies were all stereo typed. You could change the logos of various companies and not lose anything. Everyone went on either TRUST or EXPERTISE. The consumer was not adequately convinced. This was the point in time when we came up with the then famous HAND creative (a kind of pop-up ad)." Pop-ups are another form of online advertising which has been so heavily used for promoting a brand. In fact, there are some very popular sites where multiple pop-ups open up when you log on to the site.

The Indian Institute of Planning & Management-Ahmedabad

124

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Prudential ICICI campaign was so successful on the Net that the client actually asked their offline agency to replicate the same creative on various offline media. Ramani further adds, "The key for this creative was to just spot the answer which lay just under our noses and depict it in a manner which forced the consumer to sit up, notice and take action." The Abby award winning site capture for the same company was again the first of its kind. When you logged on to the site www.myiris.com, you suddenly saw a duster come and wipe the page contents 'clean'. Just when your jaw was dropping to point of being painful, you saw the line which connected to the wiping act, 'Don't let taxes wipe out your savings in Feb and March'. Ramani said, "This did win a lot of kudos and opened the market wide for people to try and replicate work in this fashion." See Prudential ICICI shoshkele creative

The Indian Institute of Planning & Management-Ahmedabad

125

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

STRATERGY TO BUILD BRAND BY USING E-MARKETING TOOLS

Web Marketing Tools Internet Marketing Tools, Online Marketing Tools, Web Publicity and Sales Tools The first priority for a base for internet marketing and the best long term web marketing tool is a well designed website that targets your markets and delivers targeted internet inquiries through good search engine optimization.

The companies like Ron Castle WEB are providing services to increase the ROI by providing the web marketing tools If you need immediate action, you can get first page rankings on Google is less than 10 days with a search engine optimized press release. This online marketing tool doesn't even require having a web site! Read more about small business web publicity as an online marketing tool here. This internet marketing tool delivers incredible bang for the buck and can be implemented in a few days compared to waiting weeks or months for search engine optimization to deliver leads. Linking with other websites is a longer term web marketing strategy that delivers lasting results. Read more about web linking software tools here. You can download a FREE e-book about linking strategy. If you want us to run a linking campaign for you, we can do that. We have a free link popularity check software program

you can download for FREE! Read about it here.

The Indian Institute of Planning & Management-Ahmedabad

126

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Email as a web marketing tool:


SPAM or unsolicited email is no longer a very effective internet marketing tool due to abuse. Plus, in the USA you have the Federal CAN-SPAM law to consider. But, if you already have an option in list of email recipients, email can be dynamite! Large list management and productivity is a big issue. Read about Mail List King Email software. The best $89 you can spend for an email web marketing tool. New prospect follow-up is always an issue. A Weber has a great automated email follow-up web marketing tool. Read more about A Weber here. Take the free trial.

Online advertising as a marketing tool:


If you are using Google AdWords or AdSense and want to maximize your return on investment, here are three good AdWords marketing tools for you on our Small Business Online solutions page.

Online presenting, an internet marketing tool that sells:


Sell while you sleep. Save the miles, the gas, the time and the plane tickets. Read about online webinars for on demand presenting and online or audio conferencing here. Global Link will give you a free webinar website if you use their audio conferencing services.

Online video, an effective web marketing tool:


Online video is not difficult. If you have sales, product demonstration, training or other videos already in your marketing tool bag, we can put them online. See online video on our Online Broadcasting page. If you are a road warrior, you will appreciate these services:

The Indian Institute of Planning & Management-Ahmedabad

127

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

FAX via emails


Receive Faxes in Your Email Inbox! You'll get faxes without tying up your phone line or sharing the company fax machine. Get your FAX while you are on the road. Try it FREE!

Internet Answering Machine


Stop missing important calls while online! Try Call Waves Internet answering machine free for 30 days! Click Here!

Remote Access to Your Computer


Access Your PC from Anywhere - Free Download PC Magazine calls GoToMyPC "Revolutionary."

(http://www.roncastle.com/index.html)

The Indian Institute of Planning & Management-Ahmedabad

128

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

ONLINE MARKETING TOOLS FOR BUILDING BRANDS


THE 6 MAIN TYPES 1. Display Advertising
Is the use of graphics-based advertisements on websites, and generally includes banner ads, rich media (ads that you can rollover and interact with), and video advertising.

2. Text Advertising
Is the use of text-based advertisements on websites, mostly search engines. Also known as SEM (Search Engine Marketing), or PPC (Pay Per Click) advertising

3. SEO (Search Engine Optimization)


Is the use of techniques to improve the traffic arriving at your site from search engines. Also known as Natural Search Optimization, or Organic Search Optimization. In Search Engine Optimization, SEO, advertisers submit their Web sites, which are then indexed and ranked based on a number of different factors decided by the search engines like Google, msn, rediff etc. This process of search engine optimization, SEO is time consuming, and it often takes a couple of months to see results. We ensure the best possible results for the SEO campaigns in India that we do but there is no guarantee of top placement within the search results. With online Advertisement you get instant results. Based on your budgets your advertisements can start appearing on multiple websites or portals immediately and which will drive traffic to your website. The advantage of online advertisement is that you can monitor the response to your advertisements and have a choice to alter the campaigns you are running and maintain a complete control on your advertising campaigns as well as budgets.

The Indian Institute of Planning & Management-Ahmedabad

129

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

4. Affiliate Marketing
Is the practice of paying other sites to drive traffic to your site, usually by paying a bounty for a certain action that you want to track. Also known as Pay-For-Performance or Performance Marketing, and often managed through networks such as Commission Junction or Click bank.

5. Classifieds / Platforms
Is the promotion of your products or services on another site set up specifically for sales. Common examples are ecommerce platforms (e.g. eBay), classifieds sites (e.g. Cars.com), and shopping comparison sites (e.g. Shopping.com).

6. Email Marketing
Is the distribution of your advertising to a known database of potential customers via email. This can be either a list of your own customers, or a list from a 3rd party.

PLUS two up-and-coming channels


There are also 2 other developing channels apart from these 6 which are quickly gaining importance. The first is sometimes called social marketing or social media marketing. This usually includes efforts to build a community around your business, with some combination of the abovementioned channels in new sectors of the industry, such as display ads on social networking sites (e.g. Facebook), or generating inbound links (SEO) on social media sites (e.g. Digg). The other developing channel is mobile advertising, with native applications and ads on phones and other smart phones. Although this is sometimes classified as an alternative to online marketing, rather than as a type of online marketing, insofar as this channel is

The Indian Institute of Planning & Management-Ahmedabad

130

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

driven by analytics and delivered electronically, I tend to think of it as just another channel within online marketing. Enough for tonight, we will be back with a closer look at each of these 6 main types in coming weeks.

The Indian Institute of Planning & Management-Ahmedabad

131

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

PURPOSED BRAND EQUITY MODEL TO BE IMMPLIMANTED BY BANKS TO BUIL A BRAND


As we have studied in our 2nd trimester in our one of the subject that is ADVERTISMENT on that basis we can say that Banks are not following the rule of RULES OF ADVRTISMENT and the Rule of Advertisement says: -

1. Try to increase the TRUST and EQUITY between the consumer and the brand by providing more SATISFACTION, PROPOSITIONS and by deliver the

IDENTIFICTION of the product, LOYALTY of customers or consumers by better CUSTOMER RELATIONSHIP.

2. What ever you are promising through the BRAND to the consumer DELIVER it to them and at the same time what ever are the Expectations of the Consumer try to fulfill it by providing value through BRAND.

Deliver

Promise

Consumer

rand

xpectation

Fulfillment

The Indian Institute of Planning & Management-Ahmedabad

132

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

y What Makes A Brand?


- Functionality What functional needs the Brand will satisfy?

- Feelings Who is the Brand for? (Personality, Attitude, Perceptions)

- Performance How does the Brand satisfy the needs better?

- Values Core values that Brand will stand for

The Indian Institute of Planning & Management-Ahmedabad

133

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Guiding Principles for Building & Sustaining Strong Brand


How to implement the strategies for making the Brand stronger and to position it in the mind of people

Withstand the test of time volve

Own the category Lead

Own a word Focus

e consistent ndure

Strong rand

e relevantly different Uniqueness

e refreshingly different dvertise

e the benchmark Quality

The Indian Institute of Planning & Management-Ahmedabad

134

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Here is the Explanation of above terms and also examples.

1. Own the Category

For Example:

Cola Con. Electronics Fast Food Luxury Car Coffee Ketchup Business School Toothpaste Operating System

Coke SONY McDonalds Mercedes Nescafe Heinz / Maggi Harvard Colgate Windows

2. Own a Word
Refreshing (Cola) Beauty (Soap) Cooling (Fridge) Fresh breath Memories Coke Lux Kalvinator Close Up Kodak

The Indian Institute of Planning & Management-Ahmedabad

135

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

3. Be Relatively Different

Difference from the Consumers perspective E.g. Pepsi in Cola segment

4. Be the Benchmark

Essential to lead a quality & innovations Consistency helps reinforce the trust of the Consumers e. g. Intel

5. Be Refreshingly Different

The difference comes from the quality of advertising Focus on Quality & Quantity What the advertising needs to communicate is no different from what the Brand needs to stand for in Consumers mind

Difference comes from creating advertising stands Relevance comes from creating advertising in which Consumers see themselves Motivation comes from creating advertising that makes consumers see themselves not as they are but as they want to be

The Indian Institute of Planning & Management-Ahmedabad

136

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

6. Be Consistent
Whether it about owns a word in the Consumers mind or delivering top quality products or creating memorable and asp rational advertising, if there is one thing that stands out for strong brand it is the consistent performance in doing so

Core Brand Identity


Beauty soap for film stars The real thing Utterly butterly delicious The complete man Have a break

Brand
Lux Coke Amul Raymonds Kit Kat

The Indian Institute of Planning & Management-Ahmedabad

137

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Advertising Framework


Marketing Objective

Role of dvertising
dvertising Objective

Media Strategy Media Mix Creative Strategy

Marketing Strategy

Creative Mix

Segmentation arget group Positioning

dvertising Strategy udience Key message Positioning

Style / Design / one deal / Concept / Campaign

The Indian Institute of Planning & Management-Ahmedabad

138

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

The Advertise Framework


The focus of the Creative Strategy is to come up with an advertising Idea and campaign that can inspire and motivate the consumers to identify with and own the brand The focus of the Media Strategy is to ensure that the advertising is taken to the peoples homes & lives in the most visible & effective way possible

The Indian Institute of Planning & Management-Ahmedabad

139

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

BIBLOGRAPHY
Books:
Marketing Management by Philip kotler Online Marketing

Reports:
IAMAI Reports on Online Banking 2006 ICRAS REPORT

Articles:
Banking Annual Business & Economy 4Ps DNA Newspaper The Economic Times The Times of India

Websites:
www.banketindia.com www.google.com www.ibef.org www.strategy-business.com

The Indian Institute of Planning & Management-Ahmedabad

140

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Whats your view about Brand Building through Online Marketing?


Dear Sir/ Madam, We need a little time of yours in discovering How Brand Building can be done through online marketing. We, the students of The Indian Institute of Planning and Management, have undertaken a study to understand why people choose E-Banking. Our study might be very helpful for Banks to give you a better product and services.

Please spare a few valuable minutes of yours and fill up the questionnaire given below. This study is purely for academic purpose and the information provided by you will be used solely for academic purpose and will not be shared with any individual or organization. Thank you.

_____________________________________________________________
Your age: ______________________ Gender: ________________________ Your occupation: ______________________________________ Your education level: __________________________________________ Your average annual family income: ____________________________________ Are you familiar with E-Banking? _____________________________ Instruction: Given next page is a list of attributes/ features which the given Banks have. Kindly rate each of the given Banks on each of the attributes on a scale of 1 to 10. 1 denotes very poor and 10 denotes excellent. Please see the following example to understand what has to be done. Example:

Attributes Brand 1 Features 7 (your rating) Brand 2 5 (your rating)

Brands Brand 3 2 (your rating) Brand 4 10 (your rating) Brand 5 8 (your rating) Brand 6 3 (your rating)

The Indian Institute of Planning & Management-Ahmedabad

141

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Please rate the following Banks on the given attributes/ issues:

Banks Attributes Convenient E-banking Tailored products and services Privacy Information gate way Round the clock availability Internet Banking security Increasing online customers loyalty Differentiation Brand Building through online Marketing User friendly web site Hassle free Banking Offers new values to the customers Value added services Customer relationship management Value for money Overall performance

AXIS Bank

HSBC Bank

HDFC Bank

ICICI Bank

SBI Bank

Bank of Baroda

Thanks you very much for your valuable time and opinion.

The Indian Institute of Planning & Management-Ahmedabad

142

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Response Sheet

1. Name: - Balbir Singh Centre: - IIPM, Ahmedabad

2. ID No:-SS/06-08/AHD/MKTG/4

3. The topic of Study: - EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING 4. Details of Meeting: - This step was basically to understand about online marketing concept? What is online marketing and other basic things?

5. Date when the Guide had consulted: - 05-08-08

6. The outcome of the meeting/discussion: - I understood about the concept and basics of online marketing

7. The Progress of the thesis: - Completed first stage of my thesis

Signature of Thesis Guide

The Indian Institute of Planning & Management-Ahmedabad

143

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Response Sheet

1. Name: - Balbir Singh Centre: - IIPM, Ahmedabad

2. ID No:-SS/06-08/AHD/MKTG/4

3. The topic of Study: - EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING 4. Details of Meeting: - This step was basically to understand about the difference between online marketing and Traditional marketing concept? And how the Banks are applying the concept of online marketing

5. Date when the Guide had consulted: - 15-08-08

6. The outcome of the meeting/discussion: - I understood what are the concept of online Banking and the different players in Banking and the benefits of online marketing

7. The Progress of the thesis: - Completed second stage of my thesis

Signature of Thesis Guide

The Indian Institute of Planning & Management-Ahmedabad

144

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Response Sheet

1. Name: - Balbir Singh Centre: - IIPM, Ahmedabad

2. ID No:-SS/06-08/AHD/MKTG/4

3. The topic of Study: - EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING 4. Details of Meeting: - This step was basically to understand about the Internet Banking or E- banking and how the Banking players are building brands through using it.

5. Date when the Guide had consulted: - 19-08-08

6. The outcome of the meeting/discussion: - I understood concept of online Banking and how the different players in Banking are using the E-Marketing concept in building brands

7. The Progress of the thesis: - Completed Third stage of my thesis Signature of Thesis Guide

The Indian Institute of Planning & Management-Ahmedabad

145

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Response Sheet

1. Name: - Balbir Singh Centre: - IIPM, Ahmedabad

2. ID No:-SS/06-08/AHD/MKTG/4

3. The topic of Study: - EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING 4. Details of Meeting: - This step was basically to understand about the features or attributes of online marketing for the understanding for the preparation of research work which has to be done on it.

5. Date when the Guide had consulted: - 29-08-10

6. The outcome of the meeting/discussion: - I understood what are the attributes I have to find for the data collection on online marketing.

7. The Progress of the thesis: - Completed fourth stage of my thesis

Signature of Thesis Guide

The Indian Institute of Planning & Management-Ahmedabad

146

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Response Sheet

1. Name: - Balbir Singh Centre: - IIPM, Ahmedabad

2. ID No:-SS/06-08/AHD/MKTG/4

3. The topic of Study: - EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING 4. Details of Meeting: - This step was basically to understand about primary research and the attributes that has to be taken regarding the preparation of questionnaire

5. Date when the Guide had consulted: - 30-09-2010

6. The outcome of the meeting/discussion: - I understood how I have to analysis the data collected through questionnaire and how I have to write what necessary steps are required for online marketing

7. The Progress of the thesis: - Completed the fifth or main part of my thesis

Signature of Thesis Guide

The Indian Institute of Planning & Management-Ahmedabad

147

EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

Response Sheet

1. Name: - Balbir Singh Centre: - IIPM, Ahmedabad

2. ID No:-SS/06-08/AHD/MKTG/4

3. The topic of Study: - EFFECTIVE BRAND BUILDING STRATEGY FOR BANKING INDUSTRY THROUGH ONLINE MARKETING

4. Details of Meeting: - Submitted final copy of thesis to known what all changes are required in final copy.

5. Date when the Guide had consulted: - 14-03-11

6. The outcome of the meeting/discussion: I understood what all changes are required in the final thesis

7. The Progress of the thesis: - Completed my thesis

Signature of Thesis Guide

The Indian Institute of Planning & Management-Ahmedabad

148

Вам также может понравиться