Sei sulla pagina 1di 28

1.

PRODUCT MIX

The banks primarily deal in services and therefore, the formulation of product mix is required to be
in the face of changing business environment conditions. Of course the public sector commercial
banks have launched a number of policies and programs for the development of backward regions
and welfare of the weaker sections of the society but at the same time it is also right to mention that
their development-oriented welfare programs are not optimal to the national socio-economic
requirements. A proportional contraction in the number of customers is found affecting the business
of public sector commercial banks. The changing psychology, the increasing expectation, the rising
income, the changing lifestyles, the increasing domination of foreign banks and the changing needs
and requirements of the customers at large make it essential that they innovate their service mix and
make them of worked class. The development of new generic product, especially when the business
environment is regulated is found a difficult task. However, it is pertinent that banks formulate a
package in tune with the changing business conditions. Against this background, we find it
significant that the banking organizations minify, magnify, combine and modify their service mix.
In the formulation of service mix, the banks can follow two guidelines, first is related to the
processing of product to market needs and the second is concerned with the processing of market
needs to product. In the first process, the needs to the target market are anticipated and visualized and
therefore, we expect the prices likely to be productive. In the second process, the banks react to the
expressed needs and therefore we consider it reactive. It is essential that every product is measured
up to the accepted technical standards. This is because no consumer would buy a product, which
contains technical faults. Technical perfection in service is meant prompt delivery, quick disposal,
and presentation of right data, right filing, proper documentation or so. If computers start disobeying,
the command and the customers get wrong facts, the use of technology would be a minus point, and
you dont have any excuse for your faults.
Marketing aims not only offering but also at creating\innovating the services\schemes found new to
the competitors vis-a vis- to the customers. The enhanced customer patronage would be a reward to
the bank. The additional attractions, the product attractiveness would be a plus point of your mix,
which would help you in many ways. This makes it essential that the banking organizations are
sincere to the innovations process and try to enrich their peripheral services much earlier than the
competitors. We also find the product portfolio of the banks. While formulating the services mix, it is
also pertinent that the bank professionals make possible affair synchronization of core and peripheral
services. To be more specific, the peripheral services need an intensive care since the core services
are found by and large the same. Innovating the peripheral services thus appears to be an important
functional responsibility of marketing professionals. We cant deny the fact that if the foreign banks
have been getting a positive response; the credibility goes to their innovative peripheral services.
Thus, the formulation of product mix is found to be a difficult task that requires world-class
professionalism.

2. PROMOTIONAL MIX:

Promotion mix includes advertising, publicity, sales promotion, word of mouth promotion,
personal selling and telemarketing. Each of these services needs to be applied in different degree.
These components can be useful in the banking business in the following ways:

Advertising
Advertising is paid form of communication. Banking organizations use this component of the
promotion mix with motto of informing, sensing and persuading the customers. While advertising it
is essential to be aware of key decision making areas so that instrumentally helps banks at micro and
macro levels.

Finalizing the budget:


This is related to the formulation of the budget for advertisement. The bank professionals, senior
executives and even the policy planners are found to be involved in the process. The business of a
bank determines the scale of the advertisement budget. In addition, the intensity of competition also
plays a decisive role since in the majority of cases; we find a increase in the budget due to a change
in the competitors strategy.

Selecting a suitable vehicle:


There are a number of devices to advertise, such as broad cast media, telecast media and print media.
In the face of the budgetary provisions, it is necessary to select a suitable vehicle. For promoting the
banking business, the print media is found to be economic as well as effective.

Making possible creative:


The advertising professionals bear the responsibility of making the appeals, slogans and messages
more creative. Here, creative means making the advertisement programs distinct to the competitive
organizations, which are active in influencing the impulse of the customers and successful in
informing and sensing the customers. This requires an in-depth knowledge of the receiving capacity
of the target market for which the advertisements are designed.

Testing the effectiveness:


It bears an analogous significance that our advertisements are effective in influencing the impulse of
customers by energizing persuasion. For making the process effective, it is essential to test the
effectiveness before launching of the commercial advertisements.

Instrumentality of branch managers:


At micro level, a branch manager bears the responsibility of advertising locally so that the messages
reach the target audience.

Characters and themes:


At apex level it is also important that while advertising the senior executives watch the process
minutely and select events, characters having a regional orientation. The popular characters and
sensational moments are likely to be impact generating. The theme for appeals and messages also
needs due attention. Of course, they have a legitimate right of advertising but it is not meant that like
the goods manufacturing organizations, the service generating organizations also start making
invasion on culture. It is necessary to regulate a bias to gender, profession, region or so.

Public relations:
In the banking services the effectiveness of public Relations is found in high magnitude. It is in this
context that difference is found in designing of the mix for promoting the banking services.
Telemarketing:
The telemarketing is a process of promoting the business with the help of sophisticated
communication network. Telemarketing is found instrumental in advertising the banking services
and the banking organizations can use this tool of the promotion mix both for advertising and selling.
This minimizes the dependence of banking organizations on sales people and just a counter or center
as listed in the call numbers may service multi- dimensional services.
Telemarketing is likely to play an incremental role in marketing the banking services. The leading
foreign banks and even some of the private sector commercial banks have been found promoting
telemarketing and they have been getting positive results for their efforts.

Word-Of- Mouth:
Much communication about the banking services actually takes place by word- of- mouth
information, which is also known as word- of- mouth promotion. The oral publicity plays an
important role in eliminating the negative comments and improving the services. This also helps the
banker to know the feedback, which may simplify the task of improving the quality of services. This
component of promotion mix is not to influence budget adversely or generate additional financial
burden. By improving the quality of services and by offering small gifts to the word- of- mouth
promoters, bankers can get more business command in their area.
The above facts make it clear that such kind of promotion is influenced by a number of factors. The
most dominating factor is the quality of services offered. The bank professionals, the frontline staff
and the senior executives should realize that degeneration in quality would make this tool effective.

3. PRICE MIX:

In the formulation of marketing mix, the pricing decisions occupy a place of outstanding
significance. The pricing decisions include the decisions related to interest and fee or commission
charged by banks. Pricing decisions are found instrumental in motivating or influencing the target
market. The RBI regulates the rate of interest and the Indian Banks Association controls other
charges. In our country, the price mix is more important because the banking organizations are also
supposed to sub serve the interests of the weaker sections and the backward regions. Also in making
the pricing decisions, the Government Of India instrumentalists or commands everything as a
shadow policy maker. This also complicates the price mix for banking sector.
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. Banks also have
to take the value satisfaction variable in to consideration. The value and satisfaction cannot be
quantified in terms of money since it differs from person to person. Keeping in view the level of
satisfaction of a particular segment, the banks have to frame the pricing strategies.
The banking organizations are required to frame two- fold 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 well as the sellers have feeling of winning.

4. THE PEOPLE

Sophisticated technologies no doubt, inject life and strength to our efficiency but the instrumentality
of sophisticated technologies start turning sour id the human resources are not managed in a right
fashion. We cant deny the fact that if foreign banks are performing fantastically; it is not only due to
the sophisticated information technologies they use but the result of a fair synchronization of new
information technologies and a team of personally committed employees. The moment they witness
lack of productive human resources even the new generation of information technologies would
hardly produce the desired results. In addition to the professional excellence, the employees working
in the foreign banks are generally value- based. Thus we accept the fact that generation of efficiency
is substantially influenced by the quality of human resources. The quality for banking sector is an
aggregation of all the properties, which are found essential for generating the efficiency and
projecting a fair image. Even efficiency essentially is supported by ethical dimension, humanity and
humanism.
The development of human resources makes the ways for the formation of human capital. Human
resources can be developed through education, training and by psychological tests. Even incentives
can inject efficiency and can motivate people for productive and qualitative work.

5. THE PROCESS
Flow of activities: all the major activities of banks follow RBI guidelines. There has to be
adherence to certain rules and principles in the banking operations. The activities have been
segregated into various departments accordingly.
Standardization: banks have got standardized procedures got typical transactions. In fact not only
all the branches of a single-bank, but all the banks have some standardization in them. This is
because of the rules they are subject to. Besides this, each of the banks has its standard forms,
documentations etc. Standardization saves a lot of time behind individual transaction.
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 stores: numbers of steps are usually specified and a specific pattern is followed to
minimize time taken.
Simplicity: in banks various functions are segregated. Separate counters exist with clear indication.
Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere.
This makes procedures not only simple but consume less time. 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.

6. THE PHYSICAL EVIDENCE

The physical evidences include signage, reports, punch lines, other tangibles, employees dress code
etc. The companys financial reports are issued to the customers to emphasis or credibility. Even
some of the banks follow a dress code for their internal customers. This helps the customers to feel
the ease and comfort
Signage: each and every bank has its logo by which a person can identify the company. Thus such
signages are significant for creating visualization and corporate identity.
Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks,
chequebooks, etc reduce the inherent intangibility of services.
Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank.
Banks have influential punch lines to attract the customers.
Banking marketing consists of identifying the most profitable markets now and in future, assessing
the present and future needs of customers, setting business development goals, making plans-all in
the context of changing environment.

Marketing Mix Of Bank Of Baroda

The Bank of Baroda was established in the year 1908 in Baroda. Ever since its inception, the bank
has been growing and expanding its branches successfully. At the turn of a century, the bank has its
presence in 25 countries across the world. Bank of Baroda has progressively taken a step towards
commitment and values by providing uncompromising standards of service to its customers,
stakeholders, employees and the like. The initial capital invested was Rs. 10 Lakhs. The Maharaja
was none other than SayajiraoGaekwad who, with his visionary insight, planned the beginning of a
reputed journey which over the years, came to be known as Bank of Baroda.
It is interesting to note that during the period of 1913 to 1917; almost 87 banks in India succumbed to
a financial crisis. However, the Bank of Baroda survived the economic depression by dint of its
financial integrity, business prudence and concern uncompromising concern about its customers and
clients. This has transcended down to the present ages and has become the motto of the bank.

7Ps of Marketing of Bank of Baroda:

1. Products and Services: Bank of Baroda provides various banking products and services to its
customers. They are as follows:
Retail Banking
Rural/Agri Banking
Wholesale Banking
SME Banking
Wealth Management
Demat
Product Enquiry
Internet Banking
NRI Remittances
Baroda e-Trading
Interest Rates
Deposit Products
Loan Products
ATM / Debit Cards
Price:

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.

Place:

The Bank of Baroda has good location across the country. Bank of Baroda has an extensive network
of 3082 branches spanning the length and breadth of the country. There is a branch in the vicinity of
everyone in need of a banking solution.
With a customer centric approach of being operational 24 hours a day, across 25 countries, the bank
branches are the last door you will have to knock while on the lookout for an answer to your queries.

Promotion:

Promotion is nothing but making the customer more and more aware of the services and benefits
provided by the bank. Bank of Baroda uses a lot of new technology to communicate to their
customers. Two of the fastest growing modern tools of communicating with the customers are:
Internet Banking
Mobile Banking

Public Relations:

In todays competitive scenario developing strong public relations is very important for any bank to
be successful. Most banks today have a separate Public Relations department. However primarily it
is considered as a responsibility of the various bank managers to develop a steady and strong
relationship with their present customers as well as potential customers. Bank of Baroda keeps good
relations with their customers by a constant follow up, small programmes etc.

People:

Bank of Baroda has always had an immense faith in the infinite potential of its people. This has been
historically demonstrated in its recruitment practices, developmental initiatives, placement processes
and promotion policies. Strategic HR interventions like, according cross border and cross cultural
work exposure to its managers, hiring diverse functional specialists to support line functionaries and
complementing the technical competencies of its people by imparting conceptual, managerial and
leadership skills, gave the Bank competitive advantage. The elaborate man management policies also
made the Bank a breeding ground for business leaders. The Bank provided around a dozen CEOs to
the industry- men who went on to build other great institutions. People initiatives were blended with
IR initiatives to create an effectively harmonious workplace, where everyone prospered.
State Bank Of India(7P's)

INTRODUCTION:

State Bank OF India is Indias largest bank with total assets of US$ 260 billion at September 31, 2009.
The Bank has a network of 16,000 branches and about 3000ATMs in India and presence in 32
countries. SBI 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 specialized subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset
management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia .SBI Banks equity shares are listed in India on Bombay
Stock Exchange and the National Stock Exchange of India Limited.

7Ps of Marketing of SBI Bank:

PRODUCT MIX:

1. DEPOSITS:

SBI Bank offers a wide variety of Deposit Products to suit our requirements. Coupled with the
convenience of networked branches/ over 3000 ATMs and facility of E-channels like Internet and
Mobile Banking, SBI Bank brings banking at your doorstep.

Savings Account: SBI Bank offers a power packed Savings Account with a host of convenient features
and banking channels to transact through.

Senior Citizen Services: The Senior Citizen Services from SBI Bank has several advantages that are
tailored to bring more convenience and enjoyment in your life.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of
the Fixed Deposit from SBI Bank.

Recurring Deposits: Through SBI Bank Recurring Deposit you can invest small amounts of money
every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability
and higher earnings.

Bank @ Campus: Thanks to bank@campus, the child can now surf the Net and access all the details of
his / her account at the click of a mouse! No need to visit the bank branch at all.

SBI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an
organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy
numerous other benefits too.
2. INVESTMENTS

Along with Deposit products and Loan offerings, SBI Bank assists you to manage your finances by
providing various investment options such as:

SBI Mutual Funds

SBI Life insurance

SBI Gold Bonds.

3. ANYWHERE BANKING

SBI Bank is the largest bank in the country. It services a customer base of more than 150 million
customer accounts through a multi-channel access network. This includes more than 16000 branches
and extension counters, over 3000 ATMs, Call Centre and Internet Banking.

Thus, one can access the various services SBI Bank has to offer at anytime, anywhere and from
anyplace.

4. LOAN

a) Home Loans

b) Personal Loans

c) Car Loans

d) Two Wheeler Loans

e) Commercial Vehicle Loans

f) Loans against Securities

g) Farm Equipment Loans

h) Construction Equipment Loans

i) Office Equipment Loans

j) Medical Equipment Loans

5. CARDS

a) Credit Card

b) Debit cum ATM Card


c) Travel Card

6. DEMAT SERVICES

SBI Bank Demat Services boast of an ever-growing customer base of over 12 lakes account holders. In
their continuous endeavor to offer the best of the class services to our customers we offer the following
features:

Digitally signed transaction statement by e-mail.

Corporate benefit tracking.

e-Instruction facility facility to transfer securities 24 hours a day, 7 days a week through Internet
Interactive Voice Response (IVR) at a lower cost.

Dedicated specially trained customer care executives at their call center, to handle all queries.

7. MOBILE BANKING

With SBI Bank, banking is no longer what it used to be. SBI Bank offers Mobile Banking facility to all
its Bank, Credit Card and Demat customers. SBI Bank Mobile Banking enables you to bank while
being on the move.

ONLINE MONEY TRANSFER facility available to NRIs worldwide through the click of a button.

Benefits:

FREE Money transfers into accounts in India

ONLINE Tracking of the status of your funds

SUPERIOR Exchange rates

OFFLINE MONEY TRANSFER facility is also available across geographies through

Local branches and in association with partner banks/ exchange houses.

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 two- fold 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 well as the sellers have feeling of winning.

Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this is
relevant in loan pricing. Many banks assign a risk weighting to individual loans over a certain size or
based on loan type and assign a credit risk charge based on those ratings.

Customer relationships are difficult to assign a value to in the pricing process. Customers will generally
press for some price concessions in consideration of other relationships they have with the bank.

Asset and liability mix also impacts pricing results. Generally speaking, banks operating with higher
loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can afford to be more
competitive with certain deposit products if they have fewer maturities in a particular timeframe or less
total outstanding balances in a product line.

PLACE:

This component of marketing mix relates 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 and selecting a suitable place for bank branches.

The number of branches OF SBI: 16000 in India .

Why they select a specific place as a branch?

The selection of a suitable place for the establishment of a branch is significant with the viewpoint of
making places accessible.

The safety and security provisions

Convenient to both the parties, such as the users and the bankers

Infrastructure facility

Near to the station and located on us. v. A road well crowded area.

Market coverage

PROMOTION MIX
Advertising: Television, radio, movies, theatres

Print media: hoardings, newspaper, magazines

Publicity: road shows, campus visits, sandwich man, Sponsorship

Sales promotion: gifts, discount and commission, incentives, etc..

Personal selling: Cross-sale (selling at competitors place), personalized service.

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 banking organization, employees are essentially the contact personnel with customer. Therefore,
an employee plays an important role in the marketing operations of a service organization.

To realize its potential in bank marketing, SBI become 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
peoples' quality in service business means investing in product quality.

PROCESS:

Flow of activities: All the major activities of SBI banks follow RBI guidelines. There has to be adhered
to certain rules and principles in the banking operations. The activities have been segregated into
various departments accordingly.

Standardization: SBI 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, documentations etc.
Standardization saves a lot of time behind individual transaction.
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
the time taken.

Simplicity: In SBI 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 on 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,
including some of the following:

Internet/web pages

Paperwork

Brochures

Furnishings

Business cards

The building itself

The physical evidences also include signage, reports, punch lines, other tangibles, employee dress code
etc.

Signage: Each and every bank has its logo by which a person can identify the company. Thus such
signages are significant for creating visualization and corporate identity.

Financial reports: The Companys financial reports are issued to the customers with emphasis or
credibility.

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks, checkbooks,
etc. reduce the inherent intangibility of services.

Punch lines: Punch lines or the corporate statement depicts the philosophy and attitude of the bank.
Banks have influential punch lines to attract the customers.
Employees dress code: SBI bank follows a dress code for their internal customers. This helps the
customers to feel the ease and comfort.

ICICI Bank
Is The Second Largest Bank Marketing Essay

In my term paper I had to discuss 7ps of ICICI bank. 7ps means what the marketing mix they used for
promoting their products. It is usually a strategies used by icici bank for promoting their products, or
we can say that for promoting their sales. As we know ICICI (Industrial Credit and Investment
Corporation of India) is largest private sector bank by market capitalization and second largest overall
in term off assets.
The growth of the ICICI over the years has proved repeatedly the ability of the institution in adopting
new technologies and products. It is through its ability to nourish new products and services that the
institution has become a household name in a very short span of time. ICICI Bank decided to target
Indias burgeoning middle class and corporate's by offering a high level of customer service and
efficiency that rivaled the foreign banks, on a much larger scale, at a lower cost.
ICICI offer very services which is very good in comparison to other banks. Credit cards services of
ICICI bank are also very good as comparison of other banks. In my term paper I also compare ICICI
with HDFC and AXIS bank.

INTRODUCTION TO ICICI BANK:

ICICI Bank (Industrial Credit and Investment Corporation of India) is India's largest private
sector bank by market capitalisation and second largest overall in terms of assets. Total assets of Rs.
3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$
648.8 million) for the nine months ended December 31, 2009. The Bank also has a network of 1,700+
branches (as on 31 March, 2010) and about 4,721 ATMs in India and presence in 18 countries, as well
as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a variety of delivery channels
and specialised subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank is also the largest issuer of credit cards in
India. ICICI Bank has got its equity shares listed on the stock exchanges
at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on
the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest
international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries,
branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain
and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United
Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in
particular.
ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to
Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings
account (CASA) ratio increased to 30% in 2008 from 25% in 2007.
Sensing an untapped opportunity, ICICI Bank decided to target Indias burgeoning middle class and
corporate's by offering a high level of customer service and efficiency that rivalled the foreign banks,
on a much larger scale, at a lower cost. ICICI has around 27 subsidiaries. Of course, the most
prominent and most successful among them is the ICICI bank.ICICI Bank is one of the Big Four
Banks of India with State Bank of India, Axis Bank and HDFC Bank.

7 PS OF ICICI BANK

PRODUCT MIX

1. DEPOSITS

ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with
convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet and
Mobile Banking, ICICI Bank brings banking at your doorstep.
Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient
features and banking channels to transact through.
Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages that are
tailored to bring more convenience and enjoyment in your life.
Young Stars: It's really important to help children learn the value of finances and money management
at an early age. Banking is a serious business, but we make banking a pleasure and at the same time
children learn how to manage their personal finances.
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 you can invest small amounts of money
every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability
and higher earnings.
Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with
your business. You can access your accounts at over 500 networked branches across the country.
Bank @ Campus: Thanks to bank@campus, child can now surf the Net and access all the details of his
/ her account at the click of a mouse! No need to visit the bank branch at all.
ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an
organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy
numerous other benefits too.

2. INVESTMENTS

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by
providing various investment options such as:
ICICI Bank Tax Saving Bonds
Government of India Bonds
Investment in Mutual Funds
Initial Public Offers by Corporate
Investment in "Pure Gold"
Foreign Exchange Services
Senior Citizens Savings Scheme, 2004

3. 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.

4. LOAN

a) Home Loans
b) Personal Loans
c) Car Loans
d) Two Wheeler Loans
e) Commercial Vehicle Loans
f) Loans against Securities
g) Farm Equipment Loans
h) Construction Equipment Loans

Get help with your essay


Read more about our Essay Writing Service >

Looking for examples of OUR work?


Click here to see our Essay Writing Examples >

Want to know more about our services?


Take a look at our Writing & Marking Service Index >
i) Office Equipment Loans
j) Medical Equipment Loans

5. CARDS

a) Credit Card
b) Debit cum ATM Card
c) Travel Card
d) VBV (VERIFY BY VISA): Verified by Visa (VBV) is a new service from VISA that lets us shop
securely online with our existing Visa Credit card. Usable only on Verified by Visa sites, this service
through a simple checkout process, confirms our identity when we make purchases.
e) Master Card Securecode: MasterCard SecureCode is an easy to use, secured online payment
service from ICICI Bank that lets you shop securely online with your existing ICICI Bank
MasterCard Credit Card. This service through a simple checkout process, confirms your identity
when you make purchases on the Internet.
f) American express card: With ICICI Bank American Express Credit Card just shop online as you
normally would and then enter your correct card information and billing address. We would validate
the billing address that we provide with our records and authenticate our transaction. Its that simple
and helps in safeguarding our online transaction.If we are unsure what is our billing address on record
with us, simply call our 24-hour Customer Care numbers given on the back of the card for a quick
check.

6. 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 our customers we offer the following
features:
Digitally signed transaction statement by e-mail.
Corporate benefit tracking.
e-Instruction facility - facility to transfer securities 24 hours a day, 7 days a week through Internet
Interactive Voice Response (IVR) at a lower cost.
Dedicated specially trained customer care executives at their call centre, to handle all queries.

7. 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.

8. 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 your funds
SUPERIOR Exchange rates
OFFLINE MONEY TRANSFER facility is also available across geographies through
our local branches and in association with partner banks/ exchange houses.

PRICING MIX

The pricing decisions or the decisions related to interest and fee or commission charged by ICICI 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 ICICI bank has to frame two- fold 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 ICICI bank attempt to establish a correlation between two. It is
essential that both the buyers as well as the sellers have feeling of winning.

Get help with your essay


Read more about our Essay Writing Service >

Looking for examples of OUR work?


Click here to see our Essay Writing Examples >
Want to know more about our services?
Take a look at our Writing & Marking Service Index >

Pricing ICICI Bank Products Starts With Three Basic Questions.

1. What rate does the bank need to meet its financial objectives?

The answer is, it depends.


Some considerations for loan and deposit pricing are:
ROA or ROE objectives
Related income taxes
Earning assets to total assets
Equity-to-asset ratio
Cost to service earning assets being funded or deposits funding an earning asset
Pricing for the activities and risks associated with the product
Rate tiers based on product balances
Asset and liability mix
Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this is
relevant in loan pricing. Many banks assign a risk weighting to individual loans over a certain size or
based on loan type and assign a credit risk charge based on those ratings.
Customer relationships are difficult to assign a value to in the pricing process. Customers will generally
press for some price concessions in consideration of other relationships they have with the bank.
Asset and liability mix also impacts pricing results. Generally speaking, banks operating with higher
loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can afford to be more
competitive on certain deposit products if they have fewer maturities in a particular timeframe or less
total outstanding balances in a product line.

2. What is the market rate for the core product?

Customers have more distribution channels available to them today than at any other point in history.
In the past 10 years, the number of bank locations has increased 20%. Of course, there are the mortgage
bankers, the Internet, and a host of other financial service providers competing for your customers
loan and deposit business.
The point is, the competitive marketplace always ensures that if a financial institution is charging too
much for loans or paying too little for deposits, its share of the market will likely dwindle as existing
and prospective customers find alternative providers. You can do all the math you want to determine
required pricing points, but if your pricing is uncompetitive, your market share will shrink.

3. What would the bank have to do to sales and operations to make its rates the most competitive in its
market?

Pricing is a key issue for the associates who sell bank products to your customers. The fact is, lenders
want the lowest rates, and people dealing with depositors want to pay the highest rates. You need the
right balance of fee income, strategies to reduce operating costs, and a healthy asset and liability mix to
change your required pricing.

PLACE

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 and selecting a suitable place for bank branches.
The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

What attract peoples for choosing ICICI?

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 a
Convenient to both the parties, such as the users and the bankers
Infrastructure facility
Near to station and located on s. v. road well crowded area.
Market coverage

PROMOTION MIX

Advertising: Television, radio, movies, theatres


Print media: hoardings, newspaper, magazines
Publicity: road shows, campus visits, sandwich man, Sponsorship
Get help with your essay
Read more about our Essay Writing Service >

Looking for examples of OUR work?


Click here to see our Essay Writing Examples >

Want to know more about our services?


Take a look at our Writing & Marking Service Index >
Sales promotion: gifts, discount and commission, incentives, etc.
Personal selling: Cross-sale (selling at competitors place),personalized service
Telemarketing: ICICI one source Call center (mind space)

PROCESS

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, documentations
etc. Standardization saves a lot of time behind individual transaction.
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 EVIDENCES

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,
including some of the following:
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
signages are 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, chequebooks,
etc reduce the inherent intangibility of services.
Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank.
Banks have influential punch lines to attract the customers.
Employees dress code: ICICI bank follows a dress code for their internal customers. This helps the
customers to feel the ease and comfort.
THE 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 organisation 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.

Get help with your essay


Read more about our Essay Writing Service >

Looking for examples of OUR work?


Click here to see our Essay Writing Examples >

Want to know more about our services?


Take a look at our Writing & Marking Service Index >
To realize its potential in bank marketing, ICICI become 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.

COMPARISON OF ICICI WITH OTHER BANKS:

ICICI bank market capitalization is more then other banks. It has market capitalization is 105,709.63
cr, while HDFC is 91,326.65 cr and AXIS bank is 91,326.65 cr.
ICICI has net interest income is 25,706.93 cr, which is higher then other banks. While net interest
income of HDFC is 16,172.91 cr and AXIS bank is 11,638.02 cr.
Net profit of ICICI bank is 4,024.98 cr, which is again higher then other banks. While net profit of
HDFC is 2,948.69 cr and AXIS bank net profit is 2,514.53 cr.
Total assets of ICICI bank are 379,300.96 cr, which is higher then other banks. While total assets of
HDFC bank is 183,270.78 cr and total assets of AXIS bank is 147,722.06 cr.
ICICI banks headquarters in Mumbai is vary huge, then other bank headquarters.
In the past two years, the bank has spent Rs 185 crore on advertising and publicity (In comparison,
HDFC has spent Rs 100 crore).
HDFC Bank's retail deposits are about Rs 23,000 crore (Rs 230 billion). Even in home loans, ICICI
Bank commands 30 per cent of the market, having eaten into housing finance pioneer, HDFC's share.
ICICI Bank has issued 3 million credit cards -- that is more than twice the number of HDFC Bank's
credit card users. However, industry observers point out that ICICI Bank's effective users for credit
cards may not be high.
As a result of its perceptive branch strategy, ICICI Bank has acquired more than five million internet,
mobile and telephone banking customers, i.e. much greater then HDFC and AXIS bank.

ICICI strategy for promotion of financial inclusion:

ICICI Bank has taken up specific initiatives to ramp up financial literacy as well as
intermediation to the underserved and under banked segments in both rural and
urban areas.
ICICI Banks financial intermediation models, both through the microfinance institutions and business
correspondents have been designed to build a repository of information with regard to financial
behaviour of the customers.
ICICI Banks Financial Intermediation Models:
With focus on low-income segments, ICICI Bank has come up with innovative
delivery channels:

Microfinance

ICICI Bank works closely with MFIs and NGOs to adapt its products to suit consumer
needs.
Two innovative models have helped achieve scale in serving the low-income

Get help with your essay


Read more about our Essay Writing Service >

Looking for examples of OUR work?


Click here to see our Essay Writing Examples >

Want to know more about our services?


Take a look at our Writing & Marking Service Index >
household:
a) Partnership Model being implemented with NGOs and MFIs: Under this model
ICICI Bank forges an alliance with existing MFIs wherein the MFI undertakes the
promotional role of identifying, training and promoting the micro-finance
clients and the ICICI Bank finances the clients directly on the recommendation
of the MFI, so the customer and portfolio resides in the Banks book.
b) Securitisation of Portfolios of MFIs: Under this model ICICI Bank buys out
portfolios from MFIs. The MFI continues to service the clients and acts as the
collection agent. Here again, the MFI shares the credit risk with the Bank. A
variant of the securitisation model is on-tap securitisation, wherein the MFI
receives an advance purchase consideration to create a portfolio of loans that
could then be periodically sold to ICICI Bank.

Technology

The Bank has been actively looking at technology solutions to scale up the micro
finance portfolio. Further, the Bank has been considering adopting a 'Core Banking
System' (CBS) for managing the loan portfolio generated under the partnership
model. In this regard, the Bank has found an able partner in FINO to provide
technology solutions to the micro finance sector. The technology solution
comprises of core banking and smart card systems. In light of the technology
solutions available through FINO, the Bank has designed a new process for
delivering loans under the partnership model.
Some of the key aspects where a strong technology platform will add value to the
micro finance operations include reduction in transaction cost; better data
management and reporting capacities and capability to interface with multiple
peripherals, etc. This will also enable enhanced disclosure and transparency in the
operations of MFIs, setting a platform for robust securitisation / buyout
opportunities to meet the priority sector lending objectives of the regulator.

Business Correspondent

In line with the RBI guidelines ICICI Bank employs Business Correspondent (BC)
model to extend financial services, especially the much-needed savings services to
rural customers.
In the pilot stage, the transactions by BC are being done with the help of an 'e-Passbook' and an
Authentication Device (AD). The e-Passbook can display and store
the customer KYC information, customer account details and the transactions in
each account. It also has a unique feature of biometric authentication by the way
of fingerprints, thereby mitigating the risk related to PIN (Personal Identification
Number) in the rural scenario.
ADs provide Customer interface with user-friendly menu options, enabling
transactions. An authorized operator is enrolled by capturing the fingerprints of all
the 10 fingers to mitigate fraud risk, can operate each AD. The transaction is
recorded on the AD, which at specific intervals would be uploaded and updated in
the Bank's system through a normal telephone line, which is a widely available
infrastructure even in remote rural areas. Further connectivity through GSM and
CDA would also be made possible to ensure that the transaction details are
updated in the Banks system at higher frequency.

Multiple products

ICICI Bank offers a complete suite of products and services to meet the individual
financial requirements of customer segments. Savings, investments and insurance
Get help with your essay
Read more about our Essay Writing Service >

Looking for examples of OUR work?


Click here to see our Essay Writing Examples >

Want to know more about our services?


Take a look at our Writing & Marking Service Index >
products are made available to its rural and agri customer base. The Bank also
offers microfinance services to low-income households and crop loans, farm
equipment loans, commodity based loans to farmers.

Hybrid channels

ICICI Bank employs delivery channels backed by technological innovations to


achieve scale and outreach in a sustainable manner. The Banks channel
architecture includes branch and non-branch channels. Branches act as a business
hub providing banking services on the one hand, while facilitating the fulfilment of
products that have been sourced by the business facilitators and business
correspondents.
Non-branch channels are of two types, business facilitators and business
correspondents.

http://www.slideshare.net/guest60535459/axis-bank

http://www.slideshare.net/Dharmikpatel7992/7ps-of-marketing-mix-24274520

Potrebbero piacerti anche