EXECUTIVE SUMMARY

The banking industry is an integral part of any society. The key areas that have impacted on the
financial services industry include regulation and legislation in various forms. The 1986
Financial Services Act was brought about to regulate the industry and offer consumer some
protection. With the entry of new private and foreign banks in the country already having
numerous big and small public sector players, the competition has doubt increased.
The competitive environment is continuously changing and is also under increasing pressure due
to the effect of the economic recession, customer spending and confidence. The dynamic nature
of banking industry makes environmental monitoring and analysis essential.
Delighting the customer is the buzzword for the service industry today. To fulfill this the banks
should have an excellent marketing mix. The marketing ix for services is different then the mix
for product.
The marketing mix is the organizations overall offer, or value, to the customer. 'The basic
marketing mix is often nicknamed "The 4Ps" (product, place/distribution, pricing, promotion);
The marketing mix can be expressed in a more customer orientated way as the '4Cs':

Customer Value 'product' benefits from the buyers point of view

Cost to the customer 'price' plus the customers costs - e.g. travel
Convenience for the buyer equivalent to 'place'/channels of distribution
Communication a two-way dialogue - not just 'promotion'.

The marketing of services presents particular problems given characteristics such as:
Services cannot be touched or stocked. They are an experience.
Production, consumption and distribution are simultaneous. 'Production' staff is also the
customer contact.
Quality is variable - and customers tend to use Price as an indicator of quality
Customers are less easily convinced of reliability than with a tangible product.
For understanding marketing mix in detail two famous banks were considered for study:
ICICI
Citibank.
All these three banks are undergoing drastic changes as far as marketing mix goes. The
information about the marketing mix of these banks was collected from various primary and
secondary sources.

INTRODUCTION TO BANKING INDUSTRY

Banking Sector in India
The economic reforms initiated in the aftermath of the 1991 crisis have blown winds of change
in every segment of the economy. The banking industry, one of the supporting precursors to any
rapidly growing economy, has undergone a period of considerable change since the 1990s. The
three sectors of the banking industry namely public, private and foreign are the cornerstones of
the changing banking industry.

The Indian banking sector has a massive geographical reach and the credit- deposit (48%) figures
speak volumes of the inherent strength of this industry. Until recently, the lack of
competitiveness vis-a-vis global standards, low technological level in operations, over staffing,
high NPAs and low levels of motivation had shackled the performance of the banking industry.

The entry of the New Private Sector banks into the market changed the face of this industry.
Nurturing collaborative ventures and paying strong emphasis on forex services, the private banks
are globalizing Indian banking business. Armed with strategic alliances with foreign
collaborators, these banks have opened doors to new positive ideas, concepts and products.
These private banks have set a trend for universal banking. For instance Global Trust Bank is the
first Indian Bank to have equity participation from International Finance Corporation and Asian
Development Bank. Similar trends are seen in Centurion Banks alliance with Keppel Bank,
Singapore and HDFC Bank with NatWest Markets, United Kingdom. Recently ICICI
successfully completed its ADR issue on New York Stock Exchange (NYSE). The intensification
of competition in the banking industry as a result of growing private sector participation coupled
with growing customer needs has spurred innovation resulting in new products and services. The
private sector banks spearhead this "Innovation Revolution". The new private sector banks are
targeting specific products and client group. However with the advent of foreign players
participation, the private sector banks position stands threatened.

With emphasis on service and technology, it is for the first time that Indian banks (mainly
private) are challenging the foreign banks. These banks are making heavy use of technology to
give good service at par with foreign banks but to a much wider clientele. Branch size has been
reduced considerably by using technology thus saving manpower. This has resulted in an overall
cost saving. In addition the Any Time Money (ATM) facility helps draw large customers to a
branch. ICICI Bank has already launched Data Base Management (referring to using the
database of existing clients to generate more revenues).

The new private banks are on an expansion phase and are now moving into semi-urban areas and
satellite towns to fulfill their branch expansion norms. ICICI bank, HDFC bank, GTB, IndusInd,
BOP and UTI Bank have come out with IPOs as per licensing requirement. The other three
private sector banks are expected to come out with their IPOs in next fiscal. Their technological
edge and product innovation has seen them gaining market share from the slower, less efficient
older banks. These banks have targeted non-fund based income as major source of revenue, with
their level of contingent liabilities being much higher then their other counterparts viz. PSU and
old private sector banks. The new private banks have been consistently gaining market shares
from the public sector banks. The major beneficiary of this has been corporate clients who are
most sought after now. Among the top 50 wealth creator ICICI stands 3rd .

THE IMPORTANCE OF MARKETING IN THE SERVICE

SECTOR

Marketing was not that popular in services-industries as it was

with manufacturing firms. Many service businesses they are small
and they are not using management techniques such as
marketing which they thought would be expensive or irrelevant.
There they are also service businesses like law and accounting
firms which believed that it is unprofessional to resort to
marketing. They relied more on their knowledge and efficiency
than marketing their services.
In India services sector has grown significantly. Its growth is also
quite important for India. The employment elasticity [to GDP
growth] in the services sector is higher than as in the case of both
agriculture and manufacturing sector. Secondly, the services
sector by providing complementary services to agriculture and
industry, acts as a catalyst in the growth of the entire economy.
Thirdly, with its greater flexibility in location, low capital intensity
and personal nature is ideally suited for the small sector, which is
the most important sector for overall development of Indian
economy. Accordingly, the services sector has grown faster than
the commodity sector.

INTRODUCTION TO MARKETING MIX

The marketing mix is probably the most famous marketing term. Its elements are the basic,
tactical components of a marketing plan. Also known as the their P's, the marketing mix elements
are price, place, product, and promotion.
Product
It must provide value to a customer but does not have to be tangible at the same time. Basically,
it involves introducing new products or improvising the existing products.
Price
Pricing must be competitive and must entail profit. The pricing strategy can comprise discounts,
offers and the like.
Place
It refers to the place where the customers can buy the product and how the product reaches out to
that place. This is done through different channels, like Internet, wholesalers and retailers.
Promotion
It includes the various ways of communicating to the customers of what the company has to
offer. It is about communicating about the benefits of using a particular product or service rather
than just talking about its features.

THE EXTENDED MARKETING MIX INCLUDES

People
An essential ingredient to any service provision is the use of appropriate staff and people.
Recruiting the right staff and training them appropriately in the delivery of their service is
essential if the organization wants to obtain a form of competitive advantage. Consumers make
judgments and deliver perceptions of the service based on the employees they interact with..

PHYSICAL EVIDENCE
This element of the expanded marketing mix addresses the "tangible" components of the service
experience and firm's image referred earlier. Physical surroundings and other visible cues can
have a profound effect on the impressions customers form about the quality of the service they
receive. The "servicescape" - that is, the ambience, the background music, the comfort of
seating and the physical layout of a service facility - can greatly affect a
customer's satisfaction with a service experience.
The appearance of the staff, including clothes and grooming, may be used as
important clues. In particular, all physical evidence must be designed to be
consistent with the "personality" that the firm wishes to project in the
marketplace.

PROCESS OF SERVICE PRODUCTION

Customers are often involved in the production of services, the flow and
progress of the production process is more important for services than it is
for goods. The customer at a fine restaurant is not merely interested in the
end result - the cessation of hunger. The entire experience of arriving at the
restaurant - of being seated, enjoying the ambiance, ordering, receiving and
eating the meal - is important. The pace of the process and the skill of the
provider are both apparent to the customer and fundamental to his or her
satisfaction with the purchase.
Therefore, when designing service production processes, particular attention
must be paid to customer perceptions of that process. For this reason,
marketing and operations are closely related in service management

MARKETING IN BANKS
BANK -

A bank is a financial institution licensed by a government. Its

primary activities include borrowing and lending money. Many
other financial activities they are allowed over time.

MARKETING IN BANKS-

Marketing as it is viewed today is a way of managing a business

so that each strategy is evolved with foreknowledge of the impact
of such decision on the customer. Banks have broadly three
dimensions, i.e., deposits, borrowings and other allied services.
The concept of bank marketing encompasses:
Identifying the most profitable markets now and in future;
Assessing the present and future needs of customers;
Setting business development goals and making plans to
meet them;
Managing the various services and promoting them to
achieve the plans;

IMPORTANCE OF MARKETING MIX IN BANKING INDUSTRY

The various other factors which have led to the increasing

importance of marketing in the banking industry are categorized
as follows:
Government Initiatives
The Indian economy embarked on the process of economic reform
and various policy measures initiated by the government resulted
in the increasing competition in the banking industry, thereby
highlighting the importance of effective marketing. The
Narasimhan Committee Report evidence of the Governments
desire to de-regulate the banking industry so as to encourage
efficiency through competition. The Government initiatives
include:
Deregulation of Interest Rates
The bank may reduce their Minimum Lending Rates so as to
attract customers (individual and corporate). Such reduction in
lending rates reduce the spread between the deposit rates and
lending rates,
Increasing Emphasis on Bank Profitability:

With the Narasimhan Committee Report, banks have been

directed to improve their efficiency, productivity and profitability.
Banks are required to be self-sufficient. In fact, the report has
adopted the BIS standards of capital adequacy (though in a
phased manner).
Foreign Banks
Foreign banks offer stiff competition to the Indian Banks and with
their superior services and technology offers them a competitive
advantage. Thus Indian Banks have to effectively apply marketing
concepts to attract customers.

Entry of New Private Banks

In the early 90s new competition emerged in the form of new
Private Banks, who brought along with them a high technologybased banking matching with International Standards and have
made a significant dent in the banking business by capturing
substantial share in the profits of the banking industry.

Reduction of Statutory Liquidity Ratio

With the Governments aim of reducing the SLR to 25 percent, the
banks will have surplus funds for which they will have to attract
users.

MARKETING MIX IN BANKING INDUSTRIES

1 PROMOTION:
Promotion mix includes advertising, publicity, sales promotion,
word of mouth promotion, personal selling and telemarketing.
2 PRICE:
The price must be high enough to cover costs and make a profit
but low enough to attract customers. There are a number of
possible pricing strategies. The most commonly used are:
3 PRODUCT:
The business has to produce a product that people want to buy.
They have to decide which market segment they are aiming at
age, income, geographical location etc.
4 PLACE:
Banks need to take into consideration the place factor as it
decides the volume of business for them.
5 PEOPLE:
Sophisticated technologies no doubt, inject life and strength to a
banks efficiency but the moment there is a lack of productive
human restheirces even the new generation of information
technologies would hardly produce the desired results.
Other than these are;

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

7 PHYSICAL EVIDENCE:
The physical evidences include the logo, the layout of the branch,
the passbooks, cheque books, the furniture, the reports, punch
lines, other tangibles, employees dress code etc.
8 PENETRATION PRICING :
Charging a low price, possibly not quite covering costs to attain a
position in the market. This is quite popular with new businesses
trying to get a toehold.

MARKETING MIX OF ICICI

INTRODUCTION
ICICI Bank is India's second-largest bank with total assets of Rs.
3,674.19 billion (US$ 77 billion) at June 30, 2009 and profit after
tax Rs. 8.78 billion for the quarter ended June 30, 2009. The Bank
has a network of 1,485 branches and about 4,816 ATMs in India
and presence in 18 countries. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its
specialised subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset
management.
ICICI was established by the Government of India in the 1960s as
a Financial Institution with the objective to finance large industrial
projects. ICICI was not a bank - it could not take retail deposits;
and nor was it required to comply with
ICICI Bank now has the largest market share among all banks in
retail or consumer financing. ICICI Bank is the largest issuer of
credit cards in India.
It was the first bank to offer a wide network of ATM's and has a
large
network of ATM's. ICICI Bank now has the largest market value of
all banks in India, and is widely seen as a sophisticated bank able
to take on many global banks in the Indian market.

HISTORY OF ICICI BANKING SYSTEM

ICICI was formed in 1955 at the initiative of the World Bank, the
government of India and Indian industry representatives. The
principal objective was to create a development financial

institution for providing medium-term and long-term project

financing to Indian businesses.
Until the late 1980s, ICICI primarily focused its activities on
Project finance, providing long-term funds to a variety of industrial
projects. ICICI Bank was incorporated in 1994 as a part of the ICICI
group. ICICI Bank's initial equity capital was contributed for 75.0%
by ICICI and for 25.0% by SCICI Limited, a diversified finance and
shipping finance lender of which ICICI owned 19.9% at December
1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank
became wholly-owned subsidiary of ICICI. Effective March 10,
2001, ICICI Bank acquired Bank of Madura, an old private sector
bank, in an all-stock merger.

IMPORTANCE OF CUSTOMER SERVICE IN ICICI BANK

Bank is a commercial institution of outfit marketing financial
products. Service performances, production and consumption of
services occurs simultaneously. Therefore, the frontline people
and their interaction with customers, thus everyday postures,
gestures, actions, reactions, emotions, activities and impressions
contribute significantly in projecting a particular image of the
bank distinguishing it from the rest of the field. Further customer
service has a tremendous retention-value. If they can not retain a
customer, all their efforts in terms of time and money in creating
and winning a customer would be a sheer waste. Besides, it is
found that retaining customer is often cheaper than finding a new
customer. In addition to that satisfied customers recommended
the business to others. Thus a customer is viewed as a long-term
relationship rather than a party to a stray single transaction. The
initial transaction is taken as the starting point and opportunity to
establish a relationship through providing total customer
satisfaction, which in turn will ensure further business, from him.
This is what they term as relationship banking. Qualitative

customer service and total satisfaction forms the evidence of

Relationship Banking.

7 Ps OF MARKETING OF ICICI BANK

Marketing of services by ICICI bank
PRODUCT MIX
A)DEPOSITS:

Savings Account:
ICICI Bank offers a packed Savings Account with a host of
convenient features and banking channels to transact through,
without the stress of waiting in queues.
Senior Citizen Services:
ICICI understands that a Savings Account needs to do more
after one reaches the age of seniority. They have an ideal
Savings Bank Service for those who are 60 years and above
Fixed Deposits:
Safety, Flexibility, Liquidity and Returns. A combination of
unbeatable features of the Fixed Deposit from ICICI Bank.
Recurring Deposits:
Through ICICI Bank Recurring Deposit one can invest small
amounts of money every month that ends up with a large saving
on maturity. So one can enjoy twin advantages- affordability and
higher earnings.
B) INVESTMENTS:

 ICICI Bank Tax Saving Bonds

Government of India Bonds
Investment in Mutual Funds
Initial Public Offers by Corporates
Investment in "Pure Gold"
Foreign Exchange Services
Senior Citizens Savings Scheme, 2004
C) ANYWHERE BANKING:
ICICI Bank is the second largest bank in the country. It services a
customer base of more than 5 million customer accounts through
a multi-channel access network. This includes more than 500
branches and extension counters, over 1800 ATMs, Call Centre
and Internet Banking. Thus, one can access the various services
ICICI Bank has to offer at anytime, anywhere and from anyplace
D) LOANS:
ICICI Bank offers wide variety of Loans Products to suit the
customers requirements. Coupled with convenience of networked
branches/ ATMs and facility of E-channels like Internet and Mobile
Banking, ICICI Bank brings banking at their doorstep
Home Loans
Some of the key benefits for HOME LOAN are:
Guidance throughout the process
Home loan amounts suited to their needs

 Home Loan tenure up to 20 years

Simplified Documentation
Doorstep Service
Sanction approval without having selected a property.
Free Personal Accident Insurance
Insurance options for their home loan at attractive premium
Personal Loans
Key Benefits of ICICI Bank Personal Loan:
Loan up to 15 lacs
No security/guarantor required
Faster Processing
Minimum Documentation
Attractive Interest Rates

Car Loans
ICICI offer loans up to 100% of `on-road' cost on select models,
and up to 95% of the ex-showroom price on others. The process
for getting a loan involves only a few simple steps and they will
tailor-make the loan to suit their needs.

1. Loan on Phone for Customers: If you are an ICICI Bank

customer, Go for a pre-approved car loan. Call Customer Care
numbers or sms "car loan " to 567676.
2. Loan on the Strength of their Income: Submit income proofs as
required and avail of finance up to 100% of the `on-road' cost of
the car!*
3. Loan in the absence of Income Proof: ICICI offer car loan for
customers without income proof on producing the bank
statement, loan repayment track record, etc.
4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank
now offers new car loans with both fixed and floating interest rate
options. The customer can opt for fixed interest rate or floating
interest rate for taking a car loan from ICICI Bank according to
his/her discretion.
Farm Equipment Loans
Preferred financier for almost all leading tractor manufacturers in
the country. Financing farm equipments in over 381 locations
spread across the country. Fast processing of files with easy
documentation. Flexible repayment options in tandem with the
farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly
repayment patterns to choose from. Comfortable repayment
tenures from 1 year to 6 years.
Loan against Property
Loan against Property is the perfect way to unlock the hidden
value of their property. With this loan, you can fully benefit from
life's little surprises you may have earlier passed over due to lack
of funds. Live their dreams with a This multi-purpose loan puts
funds at their disposal to use as you wish. This loan is available at
a reasonable rate and can be repaid comfortably over as many as

15 years. The ICICI Bank's Loan against Property can be used for
any purpose.
Expand their business - No longer do you have to stifle their
creative ideas. With funds at their disposal, you can now expand
their business without hesitation. ICICI helps you to meet all their
expenses with ease--when you take an ICICI Bank Loan against
Property.
Send their child for higher studies -Education is the
cornerstone of their family's progress. With a Loan against
Property, you can expect their son or daughter to grow into an
outstanding achiever.

Get their child married - Put aside all their monetary worries
and celebrate their childs wedding with pomp and splendor. Meet
all their expenses with easewhen you take an ICICI Bank Loan
Against Property.
Rural Education Loan
ICICI Bank Rural Educational Institution Finance (REI) caters to the
need of privately runs Educational Institution based out of Rural,
Semi Urban and outside city limit locations. The product is
designed to cater to the specific needs of the education
institutions. New products and features in the existing product are
introduced based on regular customer feedback.
E) CARDS:
ICICI Bank offers a variety of cards to suit different transactional
needs of customers. This includes Credit Cards, Debit Cards and
Prepaid cards. These cards offer convenience during financial
transactions like cash withdrawal, shopping and travel. These
cards are widely accepted both in India and abroad.

Credit cards
ICICI Bank Credit Cards offer a smart way to shop, along with
flexibility and convenience in managing their finances. Choose
from a wide range of credit cards designed to cater to their
specific lifestyle requirements.

Commercial cards
ICICI Bank Commercial Cards have been designed as payment
solutions for large & mid-sized organizations. A widely accepted
concept internationally, Commercial Cards help to better
streamline payment processes & thus increase efficiencies.
Business Card
The ICICI Bank Business Card is aimed at SMEs as an enabler for
their business. The Business card is a smart alternative to
cheques, cash, and personal credit cards. With its purchasing
convenience, cost savings, available credit, and detailed reporting
facilities, the ICICI Bank Business Credit Card offers what their
business needs to stay on top.
Travel Card
Presenting ICICI Bank Travel Card. The hassle free way to Travel
the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss
Francs; Looking for security and convenience; take ICICI Bank
Travel Card. Issued in duplicate. Offers the Pin based security. Has
the convenience of usage of Credit or Debit card.
Debit Cards

The ICICI Bank Debit Card is a revolutionary form of cash that

allows customers to access their bank account around the clock,
around the world. The ICICI Bank Debit Card can be used for
shopping at more than 3.5 Lakh merchants in India and 24 million
merchants worldwide.
F) DEMAT SERVICES:
ICICI Bank Demat Services boasts of an ever-growing customer
base of over 7 lacs account holders. In their continuous endeavor
to offer best of the class services to customers they offer the
following features:

E-Instructions:
Transfer securities 24 theirs a day, 7 days a they through Internet
& Interactive Voice Response (IVR) at a lower cost.
Digitally Signed Statement:
Corporate Benefit Tracking:
Mobile Request:
Mobile Alerts:

G) MOBILE BANKING:

With ICICI Bank, banking is no longer what it used to be. ICICI

Bank offers Mobile Banking facility to all its Bank, Credit Card and
Demat customers. ICICI Bank Mobile Banking enables you to bank
while being on the move.
ICICI Bank Mobile Banking can be divided into two categories of
facilities: Alert facility: The ICICI Bank Mobile Banking Alert facility
informs you promptly of the significant transactions in their
accounts. It keeps you updated wherever you go.

H) NRI SERVICES:
ONLINE MONEY TRANSFER facility available to NRIs worldwide
through www.money2India.com at the click of a button!
Benefits:
FREE Money transfers into accounts with over 30 banks in
India
Demand Drafts issued and payable at over 1250 locations in
India
ONLINE Tracking of the status of their funds
SUPERIOR Exchange rates
OFFLINE MONEY TRANSFER facility is also available across
geographies through

PRICING MIX:

The pricing decisions or the decisions related to interest and fee

or commission charged by banks are found instrumental in
motivating or influencing the target market. The RBI and the IBA
are concerned with regulations. The rate of interest is regulated
by the RBI and other charges are controlled by IBA. The pricing
policy of a bank is considered important for raising the number of
customers vis--vis the accretion of deposits. Also the quality of
service provided has direct relationship with the fees charged.
Thus while deciding the price mix customer services rank the top
position. The banking organizations are required to frame twofold strategies. First, the strategy is concerned with interest and
fee charged and the second strategy is related to the interest
paid. Since both the strategies throw a vice- versa impact, it is
important that banks attempt to establish a correlation between
two. It is essential that both the buyers as they all as the sellers
have feeling of winning.

PLACE MIX:

This component of marketing mix is related to the offering of

services. The services are sold through the branches. The 2
important decision making areas are:
Making available the promised services to the ultimate users
Selecting a suitable place for bank branches.
The number of branches OF ICICI: 4450 in India and 300 in
Mumbai.
LOCATION OF ATMS:

ICICI Bank has more than 13692 ATMs in India and has been
steadily installing ATMs at new locations for the convenience of
the users. There are about 1000 ATMs in Mumbai region.
The selection of a suitable place for the establishment of a branch
is significant with the view point of making place accessible. The
safety and security provisions should be Convenient to both the
parties, such as the users and the bankers.
PROMOTION MIX:

The different components of promotion help bank professionals in

promotion the banking business.
Advertising: Television, radio, movies, theatres. ICICI uses this
component of the promotion mix with the motto of informing,
sensing and persuading the customers. The advertising
professionals bear the responsibility of making the appeals,
slogans, messages more creative.
Print media: Hoardings, newspaper, magazines. There are a
number of devices to advertise, such as broadcast media, telecast
media and the print media
Publicity: road shows, campus visits, sandwich man, Sponsorship
Sales promotion: Gifts, discount and commission, incentives,
etc. ICICI also thinks in relation of their of promotional incentives
both regarding the bankers as well as the customers. The banking
organizations make provisions for incentives
Personal
selling:
Cross-sale
(selling
at
competitors
place),personalized Service. The personal selling is found
instrumental in promoting the banking business. It is just a
process of communication in which an individual exercise his/her
personal potentials, tact, skill and ability to influence the impulse
buying of the customers. Since ICICI gets immediate feedback,

the personal selling activities

communication very effectively.

energies

the

process

of

Telemarketing: ICICI has one sterile Call center.

PROCESS MIX:

Flow of activities:
All the major activities of ICICI banks follow RBI
Guidelines. There has to be adherence to certain rules and
principles in the
banking operations. The activities have been segregated into
various departments accordingly.
Standardization:
ICICI bank has got standardized procedures got typical
transactions. In fact not only all the branches of a single-bank, but
all the
banks have some standardization in them. This is because of the
rules they are subject to. Besides this, each of the banks has its
standard forms,
Customization:
There are specialty counters at each branch to deal with
customers of a particular scheme. Besides this the customers can
select their deposit period among the available alternatives.

Number of steps:
Numbers of steps are usually specified and a specific pattern is
followed to minimize time taken.
Simplicity:

In ICICI banks various functions are segregated. Separate

counters exist with clear indication. Thus a customer wanting to
deposit money goes to deposits counter and does not mingle
elsewhere. This makes procedures not only simple but consume
less time. Besides instruction boards in national boards in national
and regional language help the customers further.
Customer involvement:
ATM does not involve any bank employees. Besides, during usual
bank transactions, there is definite customer involvement at some
or the other place because of the money matters and signature
requires.

PHYSICAL EVIDENCE:

Physical evidence is the material part of a service. Strictly

speaking there are no physical attributes to a service, so a
consumer tends to rely on material cues. There are many
examples of physical evidence:
Internet/web pages
Paperwork
Brochures
Furnishings
Business cards

 The building itself (such as prestigious offices or scenic

headquarters)
The physical evidences also include signage, reports, punch lines,
other tangibles, employees dress code etc.
Signage: each and every bank has its logo by which a person can
identify the company. Thus such signage is significant for creating
visualization and corporate identity.
Financial reports: The Companys financial reports are issued to
the customers to emphasis or credibility.
Tangibles: bank gives pens, writing pads to the internal
customers. Even the passbooks, cheque books, etc reduce the
inherent intangibility of services.
Punch lines: punch lines or the corporate statement depict the
philosophy and attitude of the bank. Banks have influential punch
lines to attract the customers.
Employees dress code: ICICI bank follows a dress code for their
internal customers. This helps the customers to feel the ease and
comfort.

PEOPLE:

All people directly or indirectly involved in the consumption of

banking services are an important part of the extended marketing

mix. Knowledge Workers, Employees, Management and other

Consumers often add significant value to the total product or
service offering. It is the employees of a bank which represent the
organization to its customers. In a bank organization, employees
are essentially the contact personnel with customer. Therefore, an
employee plays an important role in the marketing operations of a
service organisation. To realize its potential in bank marketing,
ICICI is conscious in its potential in internal marketing - the
attraction, development, motivation and retention of qualified
employee-customers through need meeting job-products. Internal
marketing paves way for external marketing of services. In
internal marketing a variety of activities are used internally in an
active, marketing like manner and in a coordinated way. The
starting point in internal marketing is that the employees are the
first internal market for the organization. The basic objective of
internal marketing is to develop motivated and customer
conscious employees. A service company can be only as good as
its people. A service is a performance and it is usually difficult to
separate the performance from the people. If the people dont
meet customers' expectations, then neither does the service.
Therefore, investing in people quality in service business means
investing in product quality. ICICI aims at Providing and enabling
favorable environment to foster growth and learning for their
employees

AWARDS & RECOGNITIONS FOR BEST PERFORMANCE

AND BEST SERVICE

ICICI Prudential Life Insurance has

won the first runner up award for the
Best Defect Elimination in Service &
Transaction category at Asian Six
Sigma Excellence Summit 2014.

ICICI Prudential Life won the UK Trade

& Investment India Business Awards
2015 in the Business Partnership
Award-Large Company category.

ICICI Prudential Life Insurance was

awarded with the coveted 'ICAI
Award for Excellence in Financial
Reporting' by the Institute of
Chartered Accountants of India
(ICAI) for the financial year ended
March 31, 2014.

SWOT OF ICICI
STRENGTH
Is the preferred financier for 10 auto manufacturers companies
Considered to be a flexible company
Very consumer friendly.
Has the highest month on month share of the market.
1.6 million customer base.
Owns the largest ATM network.
It is considered as a one stop shop for finance related business.
Aggressive pruning of its non performing assets is improving its credit
rate profile allowing access to cheaper funds.
Dealers love to work with them because of fast speed of processing loans
Its volumes allow ICICI to offer among the lowest cost
WEAKNESS
Need to increase its outlets
Its still a metro city bank
Need to have more branches
OPPORTUNITIES
1, sky is the limit as the market is growing and large part is still to
untapped
Need to have offers for the consumers with manufacturers
Online banking can be profitised upon.
Can venture into retail banking.
THREATS
New entrants are making the competition tougher
Consumers are becoming more and more demanding
Decrease in interest rates have made in this field bit unrewarding
The threat of takeover for ICICI bank under the following heads.

Managing credit card risks is a challenging job.

Change in leading profile from project finance to good quality corporate
business is driving net interest margin down.
Retail bank business profitability prospects are unclear.

MARKETING MIX OF CITI BANK

INTRODUCTION TO CITIBANK
Citibank, the global bank from the US completed 90 years in 1992.It has all
along accepted Indias place in the regional as well as the global economy.
The bank has encased its expectations and over the past 90 years has lived
up to two of its characteristics:

Firstly, it is occupying premium position in the banking industry, and is

making Citibankers feel proud in working for the bank and its customers
feel prestigious to bank with Citibank.
Secondly, it has got well integrated into the ethos and economy of the
country. Citibank continues to be a global leader in cash management and
in India volumes are growing almost 50% every year in this area. But the
buzzword in corporation these days is shareholder value and risk
management.
A great opportunity seen by Citibank was: A bank that would go to the
customers and not vice-versa. It could foresee that since the late 70s the
habits of the Indian consumer were changing; buy now, pay later was
overtaking save now, buy later. India was also becoming one of the biggest
markets for two-wheelers, refrigerators and TVs with annual growth rates of
around 25%. The customer and the product were available, all that
separated them was an easy loan.
The Path Breaker
The bank had aimed to be a path breaker in its operations, wherever it operated, and India is no
exception. It pioneered in mid 1960s, among the foreign banks, recruitment of Indians to
managerial positions. It went to management institutes to recruit its future executives. These
executives, over a period of time have been tapped by the parent bank to manage its global
operations. Citibank has now become the biggest exporter of high caliber manpower, which was
used in other banks. The banks software subsidiary is one of the biggest exporter of bank
oriented computer software.

MARKETING MIX FOR CITIBANK

PRODUCTS:
Citibank Online offers a wide range of products and services to meet your
banking and investment needs.
Products:
Checking
Savings
Cititrade
Brokerage
Individual retirement account
Loans and lines
Credit card
Pricing packages

Riding in (Citibank Expatriate Indian Programme)

It was Citibanks conscious decision to reach for NRIs, knowing the countrys
needs to mobilize NRI deposits. It was the first among all Indian banks to
systematically cater to NRIs and enable them to intimately play their due
role in the economic development of their country. Citibank has 14 NRI
centers across the globe where there are clusters of expatriate Indians and
six branches in India.
To increase your loan eligibility, you can jointly apply for the loan with an earning co-applicant
who can either be your spouse or your parents. This helps increase the loan applicant's income is
added to the total income available for consideration.
Savings plans to meet your goals.
Citibank offers a variety of savings products to meet both your short and
long-term needs.
Day-to-Day Savings
Great for cash you need on hand, but no checking privileges.

High-Yield Insured Money Market Account

Higher returns plus limited checking privileges.
Certificates of Deposit (CD)
Guaranteed returns on funds you don't need right away.
Individual Retirement Account (IRA)
Tax-deferred savings and investments for retirement
The various benefits can be divided under the following three heads:
Personal banking
Open an account; Everyday Banking; Credit Card/Diners; Mortgages and
Loans; Investment; Planning/Retirement Solutions; Insurance; International
Special Services
Small business:
CitiBusiness; Credit Cards/Diners; Insurance; Investment; Retirement
Solution; Loans; Payments; International Special Services
Corporate/institutional:
Global Corporate/Investment Bank; Citibank e-Business; Citigroup Asset
Management; American Depositary Receipts; Travelers Business; Insurance;
Government Services; Diners Club; Credit Card; Merchant Services;
Expatriate Banking; Private Banking; WorldLink; International Payments
Services
Advantage debit card
ATM card
Debit/ATM card
ATM reimbursement
Auto deduction
Checks as cash
Citi financial needs analysis
Cititrade auto investment
Direct deposit

Online bank statement

Online bill payment
Overdraft protection
Safe web online protection
Wireless alerts
Tools that help put you in control
Planning for the future takes research. Here, you'll find a wide variety of
planning tools, along with resources to help you learn more about everything
from money basics to credit and borrowing and much more.
Maximize the power of your savings
The Citibank Savings Account does more for your money than any other
savings bank account. What makes it superior to any other account of its
kind, is a
host of features carefully designed to give maximum returns on your money.
With it, you enjoy incredible financial value and great transactional
convenience. 24 hours a day. 365 days a year. Take a look at its unique
features and you will know why.

Citibank Multi-Deposit
Investment Services from Citibank
Insurance Benefits
Citibank Check Protect
National Banking
Dial-A-Draft
Faster Check Clearing

Multi-Deposit The flexible fixed deposit

Unlike other fixed deposits, the Citibank Multi-Deposit is held in multiples of
Rs.1000. Therefore, you can withdraw money whenever you need in
multiples of Rs.1000 without breaking your entire deposit or paying interest
on your own money. The deposits are broken on a minimum loss basis so as
to maximize returns for you.

Investment Service The best way to make your money grow

Citibank Investment Services together with international partners such as
Alliance Capital and Prudential bring you the best of Investment ideas. With
assistance from an expert Investment Counselor. One way to ensure that
your money works the hardest for you.
Insurance Benefits
You get a host of insurance benefits.
Free Household Insurance
With your Citibank Savings Account, you now automatically get Household
Insurance worth Rs. 1 lakh against the loss or damage of your household
articles due to accidental fire, burglary or theft.
Free Baggage Insurance
You also get free Baggage Insurance worth Rs. 30,000 against theft or loss of
baggage while travelling in India. This cover is increased to Rs. 50,000 while
travelling abroad.
Lost Card Replacement
In case you lose your Citibank ATM/Debit Card, we will ensure that
replacement a Card reaches you within 48 hours from the time you repost
the loss at no charge.
The benefit of Household and Baggage Insurance has been introduced
W.e.f.July 1, 2000. This cover is not provided by Citibank, NA and is subject to
approval by The New India Assurance Company, Ltd. Special
exclusions/limitations are as per policies issued by the insurance company.

Check Protect Facility Covers low cash flow

You get a temporary overdraft facility of up to Rs.10,000 if your Account is
low on cash flow. You just need to call Citiphone. That's all.

National Banking One bank across the country

With Citibank you can deposit your cash and checks at any of our branches
in Mumbai, Delhi, Calcutta, Chennai or Bangalore. All our branches are open
until 7pm on all working days so you can visit us at your convenience.
Dial-A-Draft Free and convenient draft delivery

Just instruct us on the phone and have a draft delivered at over 40 locations
within 24 hours. All from the comfort of your home or office .

Unnati Current Account

From the moment you open a Citibank Unnati Current Account, you begin
to feel the difference it can make to your business. First of all, you stop
spending time unnecessarily with bank managers, and start spending more
time with your clients. You stop running your business by the clock, because
now you can access your Citibank Unnati Current Account any time and from
anywhere. With Citibank Unnati Current Account you stop paying for things
you should get free.
CitiGold Wealth Management gives you an unparalleled advantage to
stay ahead in life. It is an unmatched package of products and services that
enables you to maximize your wealth, experience the luxury of banking
services and offers you exclusive privileges that benefit your special status.

PROCESS
The process for some of its services are
Citibank Investment Services
Citibank Investment Services together with international partners such as
Alliance Capital and Prudential bring you superior investment options. With
an expert Investment Counselor to assist you in making your decisions. One
way to assure that your money works the hardest for you.
Check Protect Facility
A unique facility that allows you an overdraft of up to Rs.10,000 if there is a
shortfall in your Account balance. So, if your cash flow needs temporary
bridging with an overdraft, just call CitiPhone and we'll process your request
instantly.
Free Drafts
You can get free drafts drawn on any of 60 locations, up to Rs. 10 lakh per
week. Just call CitiPhone from the comfort of your home or office and we'll
have the draft delivered to you within 24 hours.
Book a draft through the Internet, and we'll have it delivered to third parties
absolutely free!

Cash/Check Pick-up
Call us and we'll pick up your checks for deposit to your Account, absolutely
free.
Cash Delivery
You can order cash between Rs.1000 and Rs. 25,000 per day at your
residence or office, at a small charge.
Intercity Cheques
With your Citibank Unnati Current Account you get a cheque with payable at
par facility across 8 cities in India and growing. These cheques are locally
cleared. This translates into great savings in time as well as cost of clearing
for your business.

CitiGold Wealth Management Process

CitiGold Wealth Management is a two step process
The first step begins with Citipro, the Financial Managing Tool. It helps you
assess your existing wealth, cash flow requirements, and risk appetite and
investment horizon. Your profile and your cash flows will determine the
optimal portfolio allocation into liquid assets, medium term and long term
investments. It also helps you rationalize your existing liabilities and
determine your insurance requirements so that your family can continue to
avail the same benefits and fulfill their dreams even in case of an
unfortunate eventuality. It thus enables you to preserve, protect and grow
your wealth.
The second step pertains to product selection and portfolio review and
rebalancing with CitiChoice. You can select from a shortlist of top performing
mutual funds in each of the liquid, debt and equity funds asset classes from
leading fund houses in India. Depending on your risk appetite and
investment horizon, you can also invest in Government of India fixed income
securities, treasury bills and corporate bonds/ debentures/ commercial
papers.
Unmatched Banking Convenience
You can conduct your banking in complete exclusivity and confidentiality at
our exclusive the world through financial and business magazines and
television programmes.
CitiGold brings to you superior banking convenience with draft drawing
facilities at over 275 locations, national banking, payable-at-par cheque

books, cash delivery and cheque pick-up facilities.

An exclusive CitiGold telephone line at CitiPhone, Citibank Online and
Citibank Banking Centers enables you to conduct your banking transactions
24 hours a day, 7 days a week - both while you are in India or travelling
overseas. CitiAlert messaging services helps you keep tab on your money
through Alerts on your email or mobile phone.

Direct Debit
When you open a new account, you can have up to $1,000 directly debited
from any non-Citibank account with check-writing privileges.
Direct Deposit
You can have your paycheck directly deposited into your Citibank checking,
savings or insured money market account. Just click on the Direct Deposit
Form link below to download the form. Then print it out and follow the
instructions. Or, if you prefer, you can sign up for Direct Deposit with your
employer.
Wire Transfer
Wires received by 4 p.m. local time will be credited to your account no later
than the next business day

PRICE
The Citibank Personal Loans are clean cash loans. They do not require any
security, collaterals or even guarantors.
In many cases, Citibank won't charge you for using non-Citibank ATMs, as
long as you meet minimum balance requirements or stay within the
transaction limits set for your account. For details, consult the Citibank
Online Client Agreement. (Follow the link below and check the section on
Package Pricing or the "Checking at a Glance" section.)
Basic Checking and Basic Savings are exceptions. With those accounts,
Citibank may charge you for using a non-Citibank ATM. To find out more,
consult the Client Agreement and see the Section on "Basic Banking."
Other financial institutions and ATM operators may independently charge
non-customers a fee for the use of their ATMs. Citibank has no control over

these charges. Be sure to ask your local ATM providers about their usage
fees or look for fee information on the ATM itself.
Citibank may in some cases reimburse qualified account holders for ATM
usage charges by other financial institutions and ATM operators.
It's not a credit card, so you don't have to pay a monthly bill or finance
charges. The money you spend is deducted from your checking account at
the time of purchase. However, with the Citibank A Advantage Debit Card
there is an annual fee. Here's a rundown on our cards:
Basic Citibank Banking Card: No annual fee and no finance charges on
purchases.
Citibank Banking Card with the MasterCard logo: No annual fee and
no finance charges on purchases.
Citibank A Advantage Debit Card: For the Basic plan, which earns one
mile for every $2 spent, there's a $25 annual fee. For the Premium plan,
which earns one mile for every $1 spend, there's a $65 annual fee.
OTHER CHARGES
There are several other charges associated with getting a loan which
together form the effective cost of your loan.
PROCESSING FEE
This fee is paid up-front to the lender for processing your application. Though it may be
a small amount, it increases your cost of borrowing. Processing fees range between 2
to 4 per cent of the loan amount. This charge is negotiable.
DOCUMENTATION CHARGES
These charges also need to be paid up-front to the lender for processing and verifying
all the documents. These charges also add to your cost of borrowing and are
negotiable.
PREPAYMENT CHARGES

There are certain lenders who levy a prepayment charge to the borrower in
case of early repayment of the loan. These charges range between 1 to 4 per
cent of the balance outstanding, which is repaid. This adds to the cost of the
loan.

PENAL INTEREST

In case you delay your repayments, the lender charges a penal interest of
about 2 per cent of the amount due.
there are no fees for accessing your accounts with Citibank Online. In
addition, many of the services that Citibank offers, such as bill payment, are
also free. However, you may be charged for specific banking and investment
services.

PEOPLE:
RELATIONSHIP DISCOUNTS

Relationship discounts are offered to you in case you already have a relation with the
lender. For instance, if you are banking with the lender or have previously taken a loan,
you have the option of negotiating for lower interest rates on the loan.

PHYSICAL EVIDENCE:
Ambience of office is greatly emphasized by the Citibank. The dcor, maintenance, quality of
posters and brochures is keenly taken care of. Even the websites are made attractive and catchy
with detailed information. Even the ATM centers are well equipped and impressively kept.

PLACE
One can use ATN/Debit card to get cash at over half a million ATMs worldwide
and to make purchases at merchants displaying the Cirrus, Maestro,
NYCE, and STAR symbols. Select merchants in these networks will allow
cash back from your account when you make a purchase.
In addition to the locations listed above, the Citibank Banking Card with the
MasterCard logo is accepted at over 21 million MasterCard locations
worldwide.
NRI Services in India
1 Mumbai

2 Delhi
3 Chennai
4 Hyderabad
5 Calcutta
6 Bangalore
7 Pune
Branch locations are at
1 Mumbai
2 Delhi
3 Chennai
4 Hyderabad
5 Calcutta
6 Bangalore
7 Pune
8 Baroda
9 Ahmedabad
10 Jaipur
11 Vadodara

PROMOTION
Biggest spender on promotion is considered to be Citibank, which spends
Rs.15 crore on advertising, of which about 50% is, spend on boosting its
credit card business. The bank however spends Rs. 60 crore on marketing.
Citibank is glitzy and high profile and it has the widest portfolio-it is into
credit cards, personal loans and other such products. It also introduced local
understanding of a global level of service that came to India.

Citibank has been coming up with various schemes from time to time. Mostly it uses print media
to promote its products. It has several punch lines of which the most famous are:
The Better Way To Manage Your Money Starts Here.
The Citi Never Sleeps.

Apart from these it also goes in for various schemes in collaboration with
companies like Indian Oil and MTV.
It also promotes extensively on Internet. Presently it has an advertisement in
sify.com home pages
Smart deals
Now Citibank Online helps you make the most of your money, every way
possible. Introducing Smart Deals -- unique values and special savings
developed exclusively for you.

SWOT OF CITIBANK INDIA

STRENGTHS
Being the first entrant in the auto-finance business the brand recall is high
among consumer.
As it has tie-up with Maruti which is the largest seller of automobile in India.
It has an edged over its competitors as when consumer goes to dealer.
People associated Citicorp with Maruti.
The Citicorp has very wide network which gives it an extra leverage.
It has the first mover advantage.
Along with Times Group it brought in Times Online Money Ltd. Which is
Indias largest financial supermarket.
WEAKNESS
People are unaware about the fact that Citicorp provides are loans for other
car manufacturing companies.
OPPORTUNITIES
As the auto-financing market is increasing rapidly the company can gain
considerable market share.
The companies to have preferred financial status with other manufacturing
automobiles company.
With the change in life style of companies people are open to the idea of car
finance. Which will help Citicorp the gain a greater market share.
THREATS
Entry of new players in the market the competition is increasing.
With a decrease in the interest rates the profits of the company are under
threat.

CONCLUSION
The banking industry in India is facing the challenges on deposit mobilization front, because of
the severe competition from various financial institutions and public corporations.
ICICI Bank today services a growing customer base of more than 5 million customer accounts
and 5 million bondholders accounts through a multi-channel access network. This includes over
1485 branches and extension counters, 4816ATMs, call centres and Internet banking. Bank
renders personalized services and the present emphasis in marketing is customer satisfaction.
They believe in customer satisfaction in every possible way. They are focused on quality of
products and services rather than quantity of products and services.
This project has given me an insight as to how Bank should market their products in the right
way by overcoming all the difficulties like a suitable location, advertising etc.
In concluding one may state that Indian banking in the next millennium is likely to be driven by
mergers, universal banking and Internet technology. While mergers will confer economies of
scale, universal banking will dismantle the barriers between the traditional dichotomies of
financial services. While one realizes the fact that the Internet is likely to convert banking into a
commodity one has to take into account that thirty years of solitude has steeped Indian Banks
into a morass of inefficiency, slothfulness and complacency. If Indian banks refuse to visualize
this trend they may well be consigned to history. However, if they react proactively Indian Banks
stand to gain a lot from the opportunities that E-banking offers.

RECOMMENDATIONS:

Banks should go in for branding exercises comprising of two parts:

enhance brand logo i.e. to make it more catchy and easy so that
customers could relate to it, and secondly by focussing on service since
whether in the bank or at the ATM service is key. Hence these should be
incorporated in branding.
Banks like ICICI can go into retail banking as it is the best long term
solution for ICICI to remain with the A group of finance companies in the
future. Assuming that ICICI continues to grow at its historical rate of
15%per annum, five years from now, retail disbursals will amount to a
whooping Rs.15,000 crore.
ICICI needs to move away from high risk, low return business of project
finance and venture into new areas.
It also needs to focus on being the best and forego its earlier strategy of
just being the first of the block.
Banks need to have high investment in infotech while at the same time
should own expensive premises in the most attractive locations.
The banks should emphasize on being completely automated and provide
information faster and keep flexible working hours.
They can use outsourced agents to contact customer directly.
Banks should work to transform themselves into one stop shop for all
financial services.
Banks should go for seamless connectivity for corporate customers,
device neutral connectivity for retail consumers, cross selling and up
selling using CRM technologies, evaluating and enhancing the lifetime
value of customers and so on.
At the back end the headquarters of all the banks should have a central
serve that provides on a daily basis, the balance sheet of the bank, its
asset liability profile, details of individual customer payments and the risk
status of the assets. This will help the bank to ensure that rogue
employees arent abusing the powers granted to them and still better will
improve the financial health of the banks.
Branch banking is clearly out as it involved huge costs and also
considered outdated in the new technology age. So, the banks need to be
where the customer is i.e. take bank to the customers door step through
other distribution channels from Internet to phone, even mobile banking.
Banks should improve their advertising and other means of promotion.
This is so since when there is no big benefit to offer because products
have become standardized, there is need to advertise to create a sharp
reference and then preference.

BIBILIOGRPAHY

www.marketingteacher.com
www.icicibank.com
www.valuenotes.com
www.coolavenues.com
www.citibank.com