Chepter .1. Evaluate Marketing Plan: Marketing Strategy of Idbi Bank

MARKETING STRATEGY OF IDBI BANK
CHEPTER .1.
EVALUATE MARKETING PLAN
1. RETURN ON INVESTMENT
Return on investment is always a major concern when it comes to marketing or any
other business expense. The idea is to check whether the money you put into your
marketing plan has resulted in a profit. You must measure the amount spent on
each campaign, versus the amount of sales each campaign brought in specifically.
You can calculate an overall measurement, but a more specific breakdown by each
marketing initiative will tell you exactly which campaigns worked and which fell
short.
2. SALES NUMBERS
Reading the numbers can be the fastest and most basic way to determine whether
your plan is working. For example, if your overall sales for last year from June 1 to
September 1 totaled rs100, 000 and your total sales for this year totaled rs.150,
000, you can deduce that your current marketing plan is having some sort of
positive effect. Take into account any rise in prices or expansion of the business,
but when all is said and done, in raw numbers; you are selling more than you did a
year ago. Customer response in all its varied forms can help you to determine what
type of reactions your marketing creates. Surveys online and in person, general
customer service feedback and online commentary can all reveal what your
customers think of your marketing and which campaigns have the greatest impact.
Simple questions like "How did you find out about our seasonal sale?" can reveal
which initiatives are reaching the customer and which market segments are making
purchases.
1
ST. GONSALO GARCIA COLLEGE (T.Y. BBI)
3. EXPANSION
If your marketing reach is expanding, the effectiveness of your plan is the probable
cause. Marketing that makes its way into new regions either by customer
recommendation or natural growth indicates both a successful and popular product
or experience and an effective marketing message. The expansion of your
marketing budget is another sign that your plan is working well and has gained
more support from the company.
4. PARTNER RESPONSE
Your marketing partners will offer feedback about whether your marketing plan is
working. Partner feedback reveals the effectiveness of your efforts in relation to
associated brands, suppliers and vendors. These outside members of the team
might feel the effects of a successful campaign before you do because they are
often on the front lines and might have more direct customer interaction. The same
goes for a negative report. If your partners are asking when you will be releasing
new marketing efforts, it might be time to revamp the marketing plan.
5. SALESPEOPLE
Outside salespeople are a great barometer for the measurement of marketing
effectiveness. Ask for feedback from your soldiers in the field to determine
whether the message you are providing and the ways you are providing it are
effective. You are sure to get advice in any case, but if the feedback is
overwhelmingly negative or customers are completely unaware of your latest
marketing efforts, your plan should be revised to better address existing clients and
to suit the needs of your sales team.
6. COMPETITOR RESPONSE
The actions of your competitors can often be very telling when it comes to the
success or failure of your marketing plan. If competitors rush to copy what you've
done or try their best to one-up your initiatives, the plan is working. If your
campaigns go largely ignored or there is an immediate negative response, there
may be an issue or at least a question about what you've set in motion.
2
CHAPTER.2.
INTRODUCTION TO MARKETING
Marketing is the process of communicating the value of a product or services to

customer, for the purpose of selling that product or service. Marketing can be
looked at as an organizational function and a set of processes for creating,
delivering and communicating value to customer and customer relationship
management that also benefits the organization. Marketing is the science of
choosing target market through market analysis and market segmentation as well
as upstanding consumer behavior and providing superior customer value. From a
societal point of view, marketing is the link between society's material requirement
and its economic patterns of response. Marketing satisfaction these needs and
wants through exchange processes and building long term relationship.
MEANING OF MARKETING
Marketing is an important social economic activity. It is an essential activity for

the satisfaction of wants and for raising social welfare. Marketing links producer
and consumers together for mutual benefits. Marketing benefits transfer of
ownership of goods and services from producer to consumer. Production will be
meaningless if goods produced are not supplied to consumers through proper
marketing mechanism
3
DEFINITIONS OF MARKETING
1. According to Philip kotler, “marketing is a human activity directed at

satisfying needed and wants through exange process.”
2. According to the American Marketing Association (AMA) Board of

Directors, Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
3. Dr. Philip Kotler defines marketing as “the science and art of exploring,
creating, and delivering value to satisfy the needs of a target market at a
profit. Marketing identifies unfulfilled needs and desires. It defines measures
and quantifies the size of the identified market and the profit potential. It
pinpoints which segments the company is capable of serving best and it designs
and promotes the appropriate products and services.”
4. Marketing is the messages and/or actions that cause messages and/or
actions. Jay Baer – President, Convince & Convert. Author with Amber
Nyasaland of the Now Revolution
5. Marketing is traditionally the means by which an organization communicates

to, connects with, and engages its target audience to convey the value of and
ultimately sell its products and services. However, since the emergence of
digital media, in particular social media and technology innovations, it has
increasingly become more about companies building deeper, more meaningful
and lasting relationships with the people that they want to buy their products and
services. The ever-increasingly fragmented world of media complicates
marketers’ ability connect and, at the same, time presents incredible opportunity
to forge new territory. Julie Braille – Vice President of ecommerce, Fairway
Market.
4
1.1 OVERVIEW OF MARKETING
The activity set of instructions and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.
Requirements for an exchange
1) There must be at least two parties

2) each party has something of value to the other party
3) each party is capable of communication and delivery
4) each party is free to accept or reject the exchangeable offer
5) each party believes it is appropriate or desirable to deal with the other party.
Marketing always occurs even if exchanges do not
1. PRODUCTION ORIENTATION
A philosophy that focuses on the internal capabilities of the firm, rather than on the
desires and needs of the marketplace.
What can we do best? What is easy to produce, given our equipment?
Problem: does not consider whether the goods and services that the firm produces
most efficiently meet the needs of the marketplace Company needs, Customer
wants
2. SALES ORIENTATION
based on the ideas that people will buy more goods and services if aggressive sales
techniques are used and that high sales results in high profits selling things and
collecting money problem: lack of understanding of the needs of the marketplace
Example: Car sales with zero percent financing to entice customers.
5
3. MARKETING CONCEPT
The social and economic justification for an organization's existence is the

satisfaction of customer wants and needs while meeting organizational objectives
what customers think they are buying-the perceived value- defines a business.
Distinguishing your product from competitors. Market oriented: the company
assumes that a sale does not depend on aggressive sales force, but rather on a
customer's decision to purchase a product.
Example: Amazon Superior customer satisfaction
4. SOCIETAL MARKET ORIENTATION
Acknowledging that some products that their customers want may not really be in
their best interests or the best interests of society as a whole. Whether or not to
pollute a river
3. CUSTOMER VALUE
Relationship between benefits and the sacrifice necessary to obtain those benefits.
Price vs. Quality
4. CUSTOMER SATISFACTION
Customers' evaluation of a good or service in terms of whether that good or service

has met their needs and expectations
RELATIONSHIP MARKETING
A strategy that focuses on keeping and improving relationships with current

customers. Assumes that many consumers and business customers prefer to have
an ongoing relationship with one organization rather than switch continually
among providers in their search for value (Mark Rogers' customers).
5. EMPOWERMENT
Market-oriented firms giving employees more authority to solve customer

problems on the spot. Promotes hard work and self evaluation
6
6. TEAMWORK
Entails collaborative efforts of people to accomplish common objectives

improves job performance, company performance, product value, and customer
satisfaction
9. DYNAMIC ENVIRONMENT
Text definition: the activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offerings that have value
Customer is the center of marketing
the economy affects all aspects of marketing
10. THE MARKETING MIX
1.Production
2.Pricing
3.Distribution
4.Promotion
The firm uses the marketing mix to help control the needs of customers within a
target market Customer has more control over marketing mix
1.1.1 INTERNAL MARKETING
Employees and employee development through training recruitment,

communication and administration are critical to the marketing success of the
organization.
Internal marketing activity focus on designing programmers to satisfy the need of

the companies employee. For thise purpose, many companies use planning session,
employee workshop, appreciation letter , and personal conversation.
7
1.1.2 TARGET MARKET
Group of people or organizations for which an organization designs, implements,

and maintains a marketing mix intended to meet the need of that group, resulting in
mutually satisfying exchanges.
1.1.3 CORE FUNCTIONS OF MARKETING:
• Marketing research establishes the needs and wants and the target market;
• Product development creates the specifications to satisfy the target market;
• Manufacturing makes the products in accordance with specifications;
• Branding attaches an identity that differentiates the products from competitors’;
• Advertising communicates brand value and benefits;
• Promotion stimulates consumer demand and repeated purchases;
• Sales and distribution ensures products are made available at retail outlets;
• Logistics delivers the products cost-efficiently on a timely basis;
• Merchandising maintains product quality and freshness at the retail outlets;
• Customer service provides support for the products to reinforce customer value.
• Selling and sales management, including the collection of payments.
• Advertising – creative ways with less expenditure.
• Sales promotion – good communications skill.
• Publicity.
• Public relations
• Packaging and branding
• Market research
• Encourage word of mouth.
8
3. INTRODUCTION TO MARKETING STRATEGY
The field of marketing strategy considers the total marketing environment and its
impacts on a company or product or service. The emphasis is on "an in depth
understanding of the market environment, particularly the competitors and
customers. A given firm may offer numerous products or services to a market
place, spanning numerous and sometimes wholly unrelated industries.
Accordingly, a plan is required in order to effectively manage such products.
Evidently, a company needs to weigh up and ascertain how to utilize its finite
resources. For example, a start-up car manufacturing firm would face little success
should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global
car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the
issue of divest, or a ceasing of production, may be made. Each scenario requires a
unique marketing strategy. Listed below are some prominent marketing strategy
models.
A marketing strategy differs from a marketing tactic in that a strategy looks at the
longer term view of the products, goods, or services being marketed. A tactic refers
to a shorter term view. Therefore, the mailing of a postcard or sales letter would be
a tactic, but changing marketing channels of distribution, changing the pricing, or
promotional elements used would be considered a strategic change. A marketing
strategy considers the resources a firm has, or is required to allocate in effort to
achieve an objective. Marketing Strategies include the process and planning in
which a firm may be expected to achieve their company goals, in which usually
involves an effort to increase
9
4 FUNCTIONS OF MARKETING
1. BUYING - people have the opportunity to buy products that they want.
2. SELLING - producers function within a free market to sell products to

consumers.
3. FINANCING - banks and other financial institutions provide money for the
production and marketing of products.
4. STORAGE - products must be stored and protect end until they are needed.
This function is especially important for perishable products such as fruits and
vegetables.
5. TRANSPORTATION -products must be physically relocated to the
locations where consumers can buy them. This is a very important function.
Transportation includes rail road, ship, airplane, truck, and telecommunications for
non-tangible products such as market information.
6. PROCESSING - processing involves turning a raw product, like wheat, into
something the consumer can use -- for example, bread.
7. RISK-TAKING - insurance companies provide coverage to protect

producers and marketers from loss due to fire, theft, or natural disasters.
8. MARKET INFORMATION - information from around the world about

market conditions, weather, price movements, and political changes, can affect the
marketing process. Market information is provided by all forms of
telecommunication, such as television, the internet, and phone.
10
5 ADVANTAGES AND DISADVANTAGE OF
MARKETING
“Marketing” the process by which companies create customer interest in goods or

services… through witch companies build strong customer relationships and create
value for their customer and for themselves.”
There are many different marketing mediums and working out which is best for
your business is essential, both to keep cost down and to get the most back from
your marketing campaign.
There are different advantages and disadvantages of marketing depending on your

chosen medium. But there are also general advantages and disadvantages of
marketing across every spectrum.
 GENERAL ADVANTAGE OF MARKETIN
An obvious advantages of marketing is the promotion of your business; getting

the recognition and attention of your target audience across a wide ranging or
specific market.
Going hand-in-hand with this is the enhanced brand recognition. Over time
potential customers and member of public will begin to associate your logo and
your brand with your business.
Every business needs to ‘spend money to make money’. Investing in marketing is

no different. The most important advantage of marketing is therefore quite simply
improving the business profile by boosting sales.
11
 GENERAL DISADVANTAGE OF MARKETIN

The first disadvantages of marketing in general is the cost. Adverting and
marketing costs money. If you don’t do the proper research then you might
end up throwing money away. Wasting marketing efforts by targeting the
wrong audience using inappropriate medium be would be a serious and
costly mistake. So it is important to do your research beforehand and keep
your costs to a minimum.
As well as the financial cost , marketing your business will require investment of
time. Researching the appropriate marketing strategy, designing and writing the
adverts, getting them published, dealing with any response. It’s important to spend
time keeping track of how successful or not your marketing campaign is. A
potential disadvantage of marketing here is the risk of time wasted for an
unsuccessful campaign.
SPECIFI ADVANTAGES AND DISADVANTAGE OF
MARKETING
For specific types of media there may be other advantages and disadvantages of
marketing. Each will obviously very depending on business, your market and your
chosen marketing techniques.
1. PRINT ADVERTISING
Advantages and disadvantages of print marketing are reasonably obvious.
ADVANTAGES:
 Choosing the appropriate e magazine or newspaper to advertise and market

your business allows you to appeal to as specific audience and demographic.
Targeting your adverts at right audience to maximize its effectiveness.
 Often an advantage marketing this is the repeated display of your advert
over time. Multiple appearances in various issues of the paper or magazine
will improve chances of your brand sticking with the customers and also the
result you will see in terms of sales leads.
12
DISADVANTAGE:
 Cost can be prohibitive. The bigger the advert the more the cost magazines
and newspaper with a wider audience generally cost more to advertise in and
marketing over time in this manner may be too expensive for some
businesses. Competition in the marketing space may be another
disadvantages. you want your advert to stand out, but unless you can afford
to pay for a full page spread you will be competing with the other businesses
scrambling for attention.
 Magazines are often released on monthly basis , meaning it can take longer
for your advert to take hold in a potential customer mind
2 TELEVISION AND RADIO MARKETING
The advantages and disadvantages of marketing via radio or television will clearly
be considerably different to those of print.
ADVANTAGES:
 There are many radio and television stations out there. You can appeal to
your local audience by using a local or television station. You may also run
an advert on a specific station with a genre which would suit your business.
The variety of radio and television stations makes it easy to appeal to
specific audience.
 Your advert may well be repeated throughout the day at specific times,
which would allow you to reach the best audience for your marketing
 Radio and television marketing allows for regular repetition of your advert,
helping satisfy.
13
DISADVANTAGE:
 Unless you are targeting a specific audience, you might have to push your
advert across a number of radio and television stations to reach everyone
you need to.
 An obvious disadvantages of radio and television marketing is the temporary
nature of the advert .unlike print, potential customers cannot go back to look
for your contact information. So you will need to run the advert many times
to get the best effect.
 Listeners/ viewer may stop paying attention during advert breaks, which are
essentially a disturbance to their enjoyment of the show.
3 DIRECT MAIL MARKETING
Your chosen market might benefit from a direct marketing campaign. Send
Your advert, catalogues or product samples straight through your customer’s

letterbox. you could target the right audience by using the electoral register to
right age ,sex and demographic or acquire access to marketing mailing lists .
ADVANTAGES:
 Direct mail marketing will allow you to target to your specific customer.
Personalizing your message to have the best possible impact on them.
 Unlike other forms of adverting, your marketing will not need to stand out
on a page full of other advert. It will just need to stand out from the pile on
the doormat. A brightly colored, appealing envelope may be all it takes.
 This type of marketing allows you target a specific area or locality.
Especially important if your business is local.
14
DISADVANTAGE:
 Direct mail is often seen as “junk” mail. So if your marketing doesn’t

stand out and appeal in just the right way it might find its way straight
from the letterbox to the bin.
 The law of 29 means you will need to do a direct mailing campaign
many times before it has an effect.
 You risk annoying your customers by plaguing them with regular “junk”
mail campaigns
TELEMARKETING
Cold –calling and other telemarketing campaigns have their place in business.
They can be effective if done correctly. Like the other types of marketing, they
have their own advantages and disadvantages.
ADVANTAGES:
 Personal contact with the customer is more effective then something abstract
designed to appeal a multitude of people. It makes the customer feel more
important if you can make them think you are only there to help them with
their needs.
 Result are easy to measure and often a potential customer can be easily led
to a sale over the phone. In other words the call to action will be more
effective.
DISADVANTAGES:
 Cold – calling , like junk mail, can have an unwanted effect as it has
negative connotations. Unwanted calls are often dealt with harshly and you
might risk damaging your reputation.
 Technology is out there which is being used to block unwanted
telemarketing calls. There is also legislation that needs to be abided by
(privacy and electronic (EC Directive) Regulations 2003.)
Cost may be more expensive then other forms of marketing , depending on your
plan.
15
 2.3 SCOPE OF MARKETING
 1. STUDY OF CONSUMER WANT AND NEEDS

 Goods are produced to satisfy consumer wants. Therefore study is done to
identify consumer needs and wants. These needs and wants motivates
consumer to purchase.
 2. STUDY OF CONSUMER BEHAVIOR

 Marketers perform study of consumer behavior. Analysis of buyer behavior
helps marketer in market segmentation and targeting.
 3. PRODUCTION PLANNING AND DEVELOPMENT

 Product planning and development starts with the generation of product idea
and ends with the product development and commercialization. Product
planning includes everything from branding and packaging to product line
expansion and contraction.
 4. PRICING POLICIES
 Marketer has to determine pricing policies for their products. Pricing
policies differs from product to product. It depends on the level of
competition, product life cycle, marketing goals and objectives, etc.
16
 5. DISTRIBUTION
 Study of distribution channel is important in marketing. For maximum sales
and profit goods are required to be distributed to the maximum consumers at
minimum cost
 6. PROMOTION
 Promotion includes personal selling, sales promotion, and advertising. Right
promotion mix is crucial in accomplishment of marketing goals.
 7. CONSUMER SATISFACTION
 The product or service offered must satisfy consumer. Consumer satisfaction
is the major objective of marketing.
 8. MARKETING CONTROL
 Marketing audit is done to control the marketing activities.
17
7 INTRODUCTION TO MARKETING STRATEGY
The field of marketing strategy considers the total marketing environment and its
impacts on a company or product or service. The emphasis is on "an in depth
understanding of the market environment, particularly the competitors and
customers. A given firm may offer numerous products or services to a market
place, spanning numerous and sometimes wholly unrelated industries.
Accordingly, a plan is required in order to effectively manage such products.
Evidently, a company needs to weigh up and ascertain how to utilize its finite
resources. For example, a start-up car manufacturing firm would face little success
should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global
car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the
issue of divest, or a ceasing of production, may be made. Each scenario requires a
unique marketing strategy. Listed below are some prominent marketing strategy
models.
A marketing strategy differs from a marketing tactic in that a strategy looks at the
longer term view of the products, goods, or services being marketed. A tactic refers
to a shorter term view. Therefore, the mailing of a postcard or sales letter would be
a tactic, but changing marketing channels of distribution, changing the pricing, or
promotional elements used would be considered a strategic change. A marketing
strategy considers the resources a firm has, or is required to allocate in effort to
achieve an objective. Marketing Strategies include the process and planning in
which a firm may be expected to achieve their company goals, in which usually
involves an effort to increase
18
8 ELIMENTS OF MARKETING STRATEGY
DEFINITION
Marketing strategy is...

Marketing strategy both influences and is influenced by overall organizational
strategies. It has a primary customer focus in selecting who should be customers
and then guiding what and how to sell to them. The marketing strategic plan is
best written in parallel with the business strategic plan so each influences the
other. Sometimes the reality is that the marketing plan follows the business plan
though this can cause many problems
ELEMENTS
1. SEGMENTS
The first big decision is who should be our customers and who should not. In
other words, what customer segments will be addressed? This is based first on
the overall strategic intent of the firm, for example to be a high-end exclusive
and low-volume provider, or to compete in mass markets where price is critical.
The decision is also based on research that indicates the profitability of different
customers groups and how well the company is able to compete in each segment .
19
2. BRAND
The brand is the overall intended message of the company, its products and
services. It describes what customers and others should think and feel whenever
they encounter the company or its products and services. Brand is influenced by
and influences the strategic intent of the firm and helps focus all other
communications, products and interactions. Brand is fragile in that it is what
customers think and feel rather than what the company communicates. This
makes shaping decisions about brand critical.
3. COMPETITION
An important marketing decision is the nature of competition, for example
whether to compete on quality, price, service, etc. Decisions here will be affected
by brand and will shape further activity such as the approach towards promotion,
the use of advertising, the response to competitive action, and so on.
4. PRODUCTS
Having understood and selected customers, marketing strategy should have a
significant influence on the products created. This not only includes the overall
functionality but also the focus on quality, features, price points and so on, in
order to produce products that align with the brand and complete effectively in
the marketplace.
5. PRICE
While the exact price may not decided in strategic planning, the price ranges
should be understood particularly in terms of what the target customers are
willing and able to pay, and also what price breaks are important to be able to
compete in the markets being addressed.
20
6. PROMOTION
Promotional strategy includes decisions about what approaches to promotion will
be used, for example TV advertising, direct marketing and so on. Promotion can
be extremely expensive, so a key part of the strategic decision here is in the
amount of budget that is being allocated.
7. COMMUNICATION
Related to brand and promotion, the way that communications with customers
and other stakeholders (such as the media) needs to be decided. This includes
broadcast information about products, one-to-one and things in between. It also
includes how service conversations will be conducted, for example using web
interfaces or directs phone conversation.
8. OUTSOURCING
A big decision that can be applied within any of the above is the 'make or buy'
choice of whether to do things in-house, bring in external experts or pass on the
work to third party suppliers. Two key factors in the outsourcing decisions are
first the ability of the company to do the work in comparison with suppliers, and
secondly the costs of doing this.
21
9 TYPES OF MARKETING STATEGY
MARKWTING is a strategy used by companies to communicate with the

consumer and make him knowledgeable about the various features of their
products and services. It is an essential part of attracting the target buyers to a
particular product, and companies use various innovative or tried-and-tested
techniques to stay ahead of their competitors and make their place in the market.
1. AFFINITY MARKETING - Also known as Partnership Marketing, this

technique links complementary brands, thereby creating strategic partnerships
that benefit both companies. While one adds value to existing customers by
generating more income, the other builds new customer relationships.
2. ALLIANCE MARKETING - Here two or more entities come together to

pool in their resources to promote and sell a product or service, which will not
only benefit their stakeholders, but also have a greater impact on the market
3. AMBUSH MARKETING - This strategy is used by advertisers to

capitalize on and associated them with a specific event without the payment of
22
any sponsorship fee, thereby bringing down the value of sponsorship. It has
sub-categories like direct or predatory ambushing or indirect ambushing by
association, to name a few.
4. CALL TO ACTION (CTA) MARKETING - CTA is a part of inbound

marketing used on websites in the form of a banner, text or graphic, where it is
meant to prompt a person to click it and move into the conversion funnel, that
is, from searching to navigating an online store to converting to a sale.
5. CLOSE RANGE MARKETING (CRM) - Also known as Proximity

Marketing, CRM uses Bluetooth technology or Wi-Fi to promote their products
and services to their customers at close proximity.
6. CLOUD MARKETING - This refers to the type of marketing that takes

place on the internet, where all the marketing resources and assets are
transferred online so that the respective parties can develop, modify, utilize
and share them.
7. COMMUNITY MARKETING - This technique caters to the needs and

requirements of the existing customers, as opposed to using resources to gather
new consumers. This promotes loyalty and product satisfaction and also gives
rise to word of mouth marketing among the community.
8. CONTENT MARKETING - In this case, content is created and published

on various platforms to give information about a certain product or service to
potential customers and to influence them, without making a direct sales pitch.
9. CROSS-MEDIA MARKETING - As the name suggests, multiple

channels like emails, letters, web pages etc are used to give information about
products and services to customers in the form of cross promotion.
23
CHAPTER.10
DIFFERENT AREAS OF MARKETING
If you are looking to develop or begin a career in Marketing, you may want to have
a look at what the marketing world has to offer. Since the launch and success of
social media platforms, many more job roles are opening to enhance companies
into the spotlight. With the various areas of Marketing, along with sales for
commercial and bespoke companies, as a professional, marketing and sales is what
drives companies forward, to achieve their goals and maintain a strong image.
1. SALES
Sales can target individual customers to gain an interest in your

company. Salesman includes incentives such as:
 Competitions
 Package Deals
 Collaborations with other Companies
 Charity Sponsorship & Support
 Card Schemes
Responsibilities of sales can include; developing strategies, involvement with

external companies and a confident and knowledgeable understanding of the
company ethics and aims.
24
2. DIGITAL
Digital Marketing covers various digital channels such as mobile phone apps,
SMS, internet sites, Email campaigns and SEO (search engine optimization).
Duties include:
 working with companies to devise marketing strategies

 handling budgets
 liaising with design agencies or departments
 writing copy for targeted e-mails
 analyzing and interpreting results
3. SOCIAL MEDIA
All the time, different tools are being introduced to social media, enhancing the
wonders of the web and connecting businesses globally. Sites such as Twitter, Face
book, LinkedIn and BlogSpot/Word press have become hubs for networking and
branding an easy, affordable and contemporary cost. Incentives, research and
directly targeting your audience is achieved by promoting companies. Social
marketing also focuses on behavior campaigns.
4. PR & ADVERTISING
In order to communicate a products value, the company focuses on the public

relations area and public image. The messages communicated through the
company values, activities and achievements affect and enhance the aesthetic of
the brand.
25
5. BRANDING
This involves includes market research, research and development, production,

distribution, advertising and sales. Brand, or product, management is devoted to
conceptualizing products and getting them to market. Branding management
includes market research, research and development, production, distribution,
advertising and sales.
6. MARKET RESEARCH
A lot of market research held by companies can be executed manually with a

directive input. Product sampling, endorsements and surveys from the public can
help associate what target group the company should be marketing.
Duties include:
 consulting clients about project requirements and objectives

 designing research methods such as interviews and questionnaires
 agreeing timescales and budgets
 supervising staff
 monitoring work progress
 writing reports
 analyzing, translating and presenting results
This article was written on behalf of the STR Group, a recruitment solution
company specialist in marketing jobs.
26
11 NATURE OF MARKETING
1. MARKETING IS AN ECONOMIC FUNCTION

Marketing embraces all the business activities involved in getting goods and
services, from the hands of producers into the hands of final consumers. The
business steps through which goods progress on their way to final consumers is the
concern of marketing.
2. MARKETING IS A LEGAL PROCESS BY WHICH

OWNERSHIP TRANSFERS
In the process of marketing the ownership of goods transfers from seller to the
purchaser or from product to the end user.
3. MARKETING IS A SYSTEM OF INTERACTING BUSINESS

ACTIVITIES
Marketing is that process through which a business enterprise, institution, or
organisation interacts with the customers and stakeholders with the objective to
earn profit, satisfy customers, and manage relationship. It is the performance of
business activities that direct the flow of goods and services from producer to
consumer.
4. MARKETING IS A MANAGERIAL FUNCTION

According to managerial or systems approach - "Marketing is the combination of
activities designed to produce profit through ascertaining, creating, stimulating,
and satisfying the needs and/or wants of a selected segment of the market."
According to this approach the emphasis is on how the individual organisation
processes marketing and develops the strategic dimensions of marketing activities.
5. MARKETING IS A SOCIAL PROCESS

Marketing is the delivery of a standard of living to society.
According to Cunningham and Cunningham. Societal marketing performs three
essential functions:-
27
12 THE ROLE OF MARKETING
Marketing is the "man in the middle"--mediating between Customers, Prospects,

Sales, Development, and the Executive Team. As such, Marketing is pulled in
multiple directions. Marketing is the critical intersection between Development,
Sales, Customers, and the Executive Team.
1.CUSTOMER,PROSPECTS,INDUSTRYANALYSIS
Marketing touches Customers, Prospects, and industry thought leaders via press
releases, magazine articles, briefings, brochures, trade shows, customer councils,
advisory boards, and lead generation programs. In addition to performing market
research, Marketing also conducts or commissions win/loss interviews and gathers
input from customers and prospects on feature requirements via interviews,
surveys, and focus groups.
28
2. EXUCUTIVE TEAM
drawing on the information gathered both externally and internally, Marketing
supports the Executive Team in developing business strategy by identifying market
opportunities and generating and executing marketing strategies and plans that
support attainment of business objectives.
3.DEVELOPMENT
Marketing works with Development to define requirements, plan products, and
bring products to market. Marketing must assure the delivery of a reliable and
"complete" product that includes documentation, training, and support. If relevant,
Marketing also addresses upgrade, migration and "end-of-life" planning.
4.SALE
marketing trains the sales force on new products, manages the HQ visits of
customers, prospects, and industry analysts, performs Win/Loss analyses, and
gathers input on customer and prospect requirements.
29
13 INTRODUCTION OF MARKETING SERVICES AND

SECTOR
Services are ever where we turn, whether it be travel to an exotic, tourism

destination, a visit to the doctor, a church service, a meal at our favorite restaurant,
OR a day of school. More and more countries particularly the so called
industrialized countries, are finding that the majority of their gross national product
are being generated by their services sector. However, the growth of the services
sector does not just lie within traditional services industries such as leisure and
hospitality services education and health, fanatical and insurance services ,and
professional and business services traditional products such as automotive,
computer and numerous other manufacturers are now trying to the services aspects
of their operations to establish a differential advantage in the marketplace as well
as the generated additional sources of revenue for their firms .In essence these
companies ,which used to complete by marketing “boxes” have now switched their
competitive focus to the provision of unmatched , unparalleled customer services .
Ample evidence exists that document this transition from selling “boxes” to service
competition. Traditional goods – producing industries such as the automotive
industry are now emphasizing the services aspects of their dustiness such a low
APR financing ,attractive lease arrangement ,bumper –to –bumper factory
warranties ,low maintenance guarantees, and free shuttle services for customer
.simultaneously less is being heard about the tangible aspects of vehicle such as
gas mileage ,acceleration ,and vehicle styling .similarly the personal computer
industry promotes in –home repairs ,24 hours customer service ,and leasing
arrangement ; and the satellite television industry is now boasting the bebefite of
digital services ,pay –to -pay view alternatives ,and security options to prevent
children from viewing certain programming .
30
14 INPORTANCE OF MARKETING IN SERVICES
Relationship s are a key factor when it comes to the marketing of services .since
provider is intangible ,a large part of the customer ‘s buying decision will depend
on the degree to which he trust the seller .hence the need to listen to the , cusromer
and fulfill them through the appropriate services offering and build a log lasting
relationship which would lead to reaped sales and positive word of mouth.
Stated simply, services marketing refers to the marketing of services as against

tangible products.
As already discussed, service are inherently intangible, are consumed

simultaneously at the time of their production, cannot be stored, saved or resold
once they have been used and service offering are unique and cannot be exactly
repeated even by the same service provider.
Marketing of services is a relative new phenomenal in the domain of marketing

,having gained in importance as a discipline only the end of the 20 th century.
Customer Retention: Given today’s highly competitive scenario where

multiple providers are vying for a limited pool of customers, retaining customers is
even more important than attracting new ones. Since services are usually generated
and consumed at the same time, they actually involve the customers in service
delivery process by taking into consideration his requirements and feedback. Thus
they offer greater scope for customization according to customer requirements thus
offering increased satisfaction leading to higher customer retention.
31
CHEPTER. 13
7PS OF MARKETING MIX
INTRODUCTION
The marketing mix is a business tool used in marketing and by marketers.

The marketing mix is often crucial when determining a product or brand's offer,
and is often associated with the four P's: price, product, promotion, and place. In
service marketing, however, the four Ps are expanded to the seven P's or Seven
P's to address the different nature of services.
In the 1990s, the concept of four C's was introduced as a more customer-driven
replacement of four P's.There are two theories based on four Cs: Lauterborn's four
Cs (consumer, cost, communication, convenience), and Shimizu's four Cs
(commodity, cost, communication, channel
32
14 HISTORY OF MARKETING MIX
In his paper "The Concept of the Marketing Mix", Neil Borden reconstructed the
history of the term "marketing mix". He started teaching the term after an
associate, James Colleton, described the role of the marketing manager in 1948 as
a "mixer of ingredients"; one who sometimes follows recipes prepared by others,
sometimes prepares his own recipe as he goes along, sometimes adapts a recipe
from immediately available ingredients, and at other times invents new ingredients
no one else has tried
15 ELIMENTS OF 7PS OF MARKETING MIX
3.1.1 THE PRODUCT (1ST P):
Before we get into finer details about the product, it would be better to know what
a product is. In its widest sense every offering that is being marketed can be called
a product. Thus, not only a fridge, but fixed deposit facilities provided by a bank,
lunch at a restaurant, polio vaccination campaign of UP Government, and
promoting Jaywalker during winters are all products. It means every good like
Sony TV, service (domestic maid), event (Wimbledon), etc. received in exchange
is a product.
A product may be either tangible ‘like this book’, or intangible like telecom
services. A product is a bundle of benefits which may be functional car for
transportation, social status to own a car, and psychological (a security that I can
always move due to car. A product is inclusive of installation an air conditioner is
installed, guarantees one year, warranty replacement of defective part up to 10,000
km, product information Booklet prescribing Dos and Don’ts)and after sale service
three free services for new cars.
i. A PRODUCT OFFERING HAS THREE INDEPENDENT

ELEMENTS;
33
1. The first level is the core product – consisting of core benefit (a

fundamental benefit – a tyre for a car). For a midway restaurant between Delhi
and Jaipur, one expects clean wash rooms. Supplemental features add value to
the core benefit in the form of TV, different kind of foods, free drinking water,
bar, shopping arcade, lawns, fountains, etc. For a tyre, supplemental products
mean installation, delivery, training, financing, replacement, etc.
2. The second level -comprises of supplemental features (Kotler calls them as
expected and augmented product levels).
3. The third element is experiential benefit – when you go to a garage,
the sitting arrangement for customers, some attendant offering water/tea/coffee,
TV, day’s newspapers, timely servicing, etc.
Products can be consumer products and business products. Consumer goods can
be classified fast moving E.G soap, shampoo, etc.
 durables goods washing machine, TV, microwave, etc

 Convenience products (relatively inexpensive, frequently bought, with
limited efforts, and not much fussy about brand — salt, bread, etc.),
 Shopping products (bought after investing some time and effort –
furniture, washing machine, fridge, TV, camera, shoes etc), Specialty
products (bought after spending considerable time and effort — Mont Blanc
pen, expensive men’s suit, jeweler, first new car, an apartment, etc.), and
unsought goods (consumers are unaware of, or aware but do not want to buy
now, and solving sudden problems – video telephone, Encyclopedias
Britannica, and nearest mechanic when car gets punctured).
 Business products may be classified into installations large machines;
accessory equipment calculators; raw materials corn flour for soup powder
making); component parts mouse for a personal computer; process material
cardamom for sweets, Maintenance, Repairs, and operating items detergents
for cleaning factory floors; and Business services Speed Post
 Single product is known as a product item. Closely related product items
are referred as product line. Cinthol soap is a product item of the Soaps
product line of Godrej Consumer Products Limited, as the product line
34
(Group of closely related products) includes Godrej No. 1, Fair & Glow,
Vigil and Evita. A product mix is a total of all groups of products. The
number of product lines refers to width of product mix; like a human being, a
product also has a finite life cycle. Though, some products like Coca Cola
continue for a long time through improvements. Every product has four
major stages: Introduction, growth, maturity and decline. Marketers have to
make many decisions about products, including Brand names, trademarks,
and trade names. These names may be associated with founders (Tata Salt),
Sports (Polo shirts), animals (Crocodile tee shirts), invented names (Dalda
ground nut oil), abbreviated names (ICICI Bank, 3M, HDFC Bank), Gods
(Nat raj pencils, Shri Krishna Droop and Agarbatti), Forts and Palaces (Lai
Quail Rice, Lai Mahal Rice), numbers (555 soap), number and words (7UP),
geography (Woodland shoes, Fuji Camera), objective (Boost nutritional food
drink granules) and fruits (Fruit of The Loom inner wear and casual wear).
When a brand is registered with trademark authority, the owner gets
exclusive authority to use.
 Trade names; refer to company names instead of product names.

Brands may be manufacturer’s brands like Tata Motors, ACC cement,
Reliance, et al. Private brands or labels refer to brand names owned by
wholesalers or stores or dealers. Manufacturers’ brands have to compete
with private labels. Some brand names have become so popular that they
have become generic names, like Dada (HLL), Nylon (DuPont), Vim
(HUL), etc. Companies may have individual branding (each product
getting different name – HUL’s Lux, Dove, Pears, Rin, Surf, Wheel, and
so on), family or umbrella branding (Godrej locks, hair oil, Godrej
Fridge).
 Packaging; Next decision relates to packaging. Packaging protects and

maintains the functional form of the product, provides convenience to
consumers, and promotes the image of the company and the product.
Dabber India uses reusable packages. Colours on the packages influence
consumer emotions.
35
 Product modification, Another method used for existing products is

known as product modification, i.e., changing one or more features of a
product. Three major ways to modify include – quality (MRF introduced
tubeless tires), functional modification (Goodnight modified its
mosquito-repellent with greater intensity, if the need be), and aesthetic
modifications (altering taste, sound, smell, or appearances- as most
automakers do).
With regard to new product development, a 7 steps process has to be

followed – idea generation, screening, concept testing, business analysis,
product development, test marketing, and commercialization.
3.1.2 THE PRICE (THE 2ND P):
Price is an important element in marketing mix, because it directly relates to

revenue generation. Price is the one, which creates sales revenue – all other parts
of marketing mix are costs. Pricing has to be done whenever a new product is
launched, its variant is launched, a product is launched in new geographies, to
counter inflationary trends, or company bids for industrial customers.
Pricing decisions are influenced by many factors – organizational and marketing

objectives, pricing objectives survival, market share, profit maximization,
maximizing market skimming, or product-quality leadership), costs (most of the
airlines increase the fares due to increase in Gasoline pricing), other marketing mix
variables (the product improvement and cost of promotion ) expectations of
channel members (commission demanded by petrol pump owners is also a factor in
oil pricing), customer interpretation and response (psychological pricing by Bata
Rs, 99.95; at times lower price leads to the perception that product quality is
lower), competition (Price of Coca Cola and Pepsi Cola are often highly
competitive), ethics, Price sensitivities (See Boxl6…) and (A Public Distribution
Dealer cannot charge prices lower or higher to what prices are fixed by the
government). A company must set the price in relation to value delivered and
perceived by consumers.
36
1. NUMEROUS PRICING STRATEGIES:
a. Product Line Pricing:

b. Premium pricing; Charging a high price, with good quality
product/service – like Mark & Spencer products.
c. 2. Captive product pricing; Products that complement others, like
cheaper tooth paste and costly tooth brush, cheaper printer costly cartridge.
d. Bait Pricing ;Low price of one item to attract customers to store for
selling a higher priced item in the line, like Reality developers.
e. Price Lining; Different prices for different combinations – Tata Sky gives
different channels packages at different prices.
f. Volume Pricing ;Rationale of Product range, like ice cream cup Rs.15,
family Pack Rs.50, and giant size Rs.75.
2. NEW PRODUCT PRICING:
A. Penetration pricing; Low price to gain market share and then increase
price, like Tata Telecom
B. Price skimming; High initial price, in future price will come down to
parity, like films on release
C. Psychological Pricing:
 Reference Pricing ;Pricing at moderate level a product kept next to a

more expensive product, so that customer can differentiate between
moderate and better products.
 Group or Bundle Pricing Package to contain two or more products and
the package is priced, like tour to Europe Price includes air fare, transfers,
sight-seeing, hotel, and food.
 Multiple – Unit pricing; in Big Bazaar socks with three pairs are per
unit cheaper than buying one pair.
 Everyday Low Prices; Instead of declaring frequent short-term price
reductions, marketers keep the prices otherwise low, like Wal-Mart-”Always
Low Prices. Always.”
37
 Odd Pricing; Bata; keeping price at Rs. 995.99 for women’s saddles.
 Prestige Pricing; Keeping higher price because customers believe that
a higher priced product is of better quality.
3. PROMOTIONAL PRICING:
a. Price Leaders ;Keeping low prices of some products in the hope of sale
of other regularly priced items, like lower sugar price and regular pricing for
tea leaves, milk and cardamom.
b. Special Event Pricing ;Most of the big stores announce lower prices on
the eve of Denali, Id, Gurpurab, 25th December, 15th August.
c. Comparison Discounting; Company writing earlier higher prices
along with current lower prices for comparison by the customers.
d. Economy pricing; No frills and low price, like Indigo Air.
e. Cash Rebate Pricing; Purchase air ticket from makemytrip.com and get
air ticket from makemytrip.com and get cash back of Rs. 300.
f. Other promotional pricing strategies; Includes Low Interest
financing, longer payment terms, extended warranties and Service Contracts,
and Psychological Discounting
4. OTHER PRICING STRATEGIES:
a. Pricing variations Early bird discounts, like ticket booking one month in
advance at lower price
b. Optional product-pricing Optional extra, like stereo price extra in Alto
Car
c. Geographical pricing (Different prices in different geographies, like
Indian Oil charges different prices for petrol and diesel in different cities
d. Value pricing Difficult economic conditions and marketer making value
offering, like restaurant offering value menu
e. Transfer Pricing Price charged for intra-company or group companies
selling
38
3.1.3 THE PLACE (THE 3RD P):
Place is concerned with making available the products at a place where is

demands. Thus, it is concerned with the store where the goods shall be displayed
and sold, the channels of distribution and logistics management through which
goods will flow from marketer to consumers. Chain or path or route in the channels
may be marketer to consumer e.g. through factory outlet or internet or company
owned stores, or mail order business or door to door sales, or multilevel marketing
as done by Amway., or marketer to retailer to consumer, or marketer to wholesaler
(also referred to as distributors) to retailer to consumer, or agent to wholesaler to
retailer to consumer. The organizations between the marketer and the consumers
are known as intermediaries. Each one of them has an important role to play. A
Retailer is an important bridge with the consumers as he has much stronger
personal relationship with the consumer, holds a variety of products, offers
consumers credit, promote and merchandise products, prices the final product, and
builds retailer ‘brand’ in the high street.
A Wholesaler breaks down ‘bulk’, buys from producers and sells small quantities
to retailers, provides storage facilities, reduces contact cost between producer and
consumer, and takes some of the marketing responsibility, e.g., sales force,
promotions. In some of the trades no trade is possible without agents. To illustrate,
in foods, jewelry, monetary products, metals, etc., agent is a must. But in
international markets, their role is undisputed. They Commission Agents do not
take title of the goods, secure orders, and (Stockiest agents) hold ‘consignment’
stock with the advent of internet and WWW the concept of channels has undergone
a sea-change and there is a paradigm shift in marketing and consumption. Through
internet marketer can sell to a geographically disperse market, target and focus on
specific segments, relatively keep low costs set-up, and makes use of e-commerce
technology (for payment, shopping software, etc.) With regard to channel six basic
decisions are to be made -direct or indirect channel (in certain sectors, both direct
and indirect channels may be used. Hotels, for example, may sell their rooms
directly or through travel agents, tour operators, airlines, and tourist boards.
39
A. TYPE OF MARKETING CHANNEL:
1. Intensive distribution:
Where every kind of retail outlet is used. For example Coca Cola uses Grocery
Stores, Pinwale, and the restaurant owners to market its beverages, and hull uses
not only grocery stores but also chemists to market its soaps and shampoos. This
kind of distribution is suitable for convenience goods, like bread, butter, egg,
newspapers, napkins, potato chips, etc.
2. Selective distribution:
Only a few outlets in an area are to distribute a product. It is most suitable for
shopping products which include consumer durables.
3. Exclusive distribution:
Only one outlet in a bigger geographical area is used to sell the product. Exclusive
distribution is used for costly, fashionable items whose sale is limited. There is
only one Mark & Spencer outlet in whole of Delhi.
3.1.4 THE PROMOTION (THE 4TH P):
Promotion relates to communicating with customers. It will provide information to

assist them in making a decision to buy a product or service. The cost associated
with promotion often represents a sizeable proportion of the overall cost of
producing an item. However, successful promotion helps to build long term
relationship. With increased sales due to promotion, costs are spread over a larger
output. Though increased promotional activity is often a sign of a response to a
problem such as competitive activity, it enables an organization to develop and
build up a succession of messages and can be extremely cost- effective. Here, the
company should follow Integrated Marketing Communication (IMC), which means
coordinated use of promotion mix to send a consistent message.
40
A.PROMOTION MIX CONTAINS FOUR ELEMENTS:
1. ADVERTISING:
Advertising informs, persuades and at times entertains Vodafone’s Zoos.

Advertising can be of numerous types – Competitive or Comparative Advertising
showing comparison with another brand, like Zen with Sentry, Reinforcement
Advertising assures current users about quality, Reminder Advertising (brand is
still around with same quality attributes, like Bourn Vita during the Second World
War, Institutional Advertising (to promote corporate image, ideas, and political
issues – like Reliance Power ad for supremacy of family agreement), Advocacy
Advertising Tata Tea’s ad asking questions to a political candidate), Pioneer or
Primary Demand Advertising (Egg Board ad saying Sunday ho yak Monday
rojkhaoande, In-film Advertising (In the movie ChalteChalte, actor Shah Rusk
Khan acting as a driver, recommends other drivers to also use Castrol CRB like
him, National Advertising Amul Butter, being sold throughout India, is being
advertised through various media, Transit Advertising ad placed in Metro or Local
trains, and so on.
Various media are available for advertising — Newspapers, Magazines, Direct

mail, Radio, TV, Internet, yellow pages, Outdoor, etc. It is the advertiser to decide
which one or ones to make use of. The ad message would be given differently on
different media, due to media characteristics. Advertising effectiveness can be
judged through pretest, and posttest.
ST.GONSALO GARCIA COLLEGE (T.Y BBI)41 Page 41

2. PERSONAL SELLING:
Personal selling is a process which includes seven steps – Prospecting (Developing

a list of potential customers), Reproach (prepares customer profile about his needs,
present use and reaction to current brand (s), Approach Contacting to deliver
value), Presentation (to create a desire to buy the product, Overcoming Objections
(regarding price, quality, use, after sale service, warranty, etc), Closing the sale
asking the prospect to buy the product) and Follow up to see that order was
properly executed. Some of the firms instead of personal selling go in for vending
machines, which are cheaper to install and operate and flexible in location. Mother
Dairy, Weighing machines at Railway Stations, Metro stations, ATMs operated by
Banks, Coffee and Tea machines operated by Hindustan Unilever and Nestle are
good examples, recent fake notes at one of the ATMs of a bank has shaken the
faith of people in vending machines.
3. SALES PROMOTION:
Sales promotions are short-term incentives to encourage the purchase or sale of a

product or service. Sales promotion as a technique of promotion has been
developed to supplement and coordinate advertising and personal selling efforts of
a firm. It is any short-term incentive used by a firm to increase the sales of its
product. It consists of all those promotional activities that help in enhancing sales
through non-repetitive and one-time communication. It is aimed at stimulating
market demand and consumer purchasing. It focuses the selling efforts on a
selected small group of people

B. A FIRM UNDERTAKES SALES PROMOTION WITH THE

FOLLOWING OBJECTIVES:
 Increasing the buying response of ultimate consumers.

 Increasing the selling efforts and intensity by dealers as well as by sales
personnel.
 Supplementing and co-coordinating the efforts of advertising and personal
selling.
 Introduction of new products and brands, and acquainting the customers
about the use of product.
 Acquainting the customers about the utility of the product.
 Affecting instant purchase and attracting new customers.
 Increasing sales during slack periods and increasing profits of the firm.
 Improving the corporate image of the firm.
 Others – improving market share, obtaining dealer outlets, meeting
competition.
Sales promotion includes several communications and activities that attempt to

provide added value or incentives to consumers, wholesalers, retailers, or other
organizational customers to stimulate immediate sales. These efforts can attempt to
stimulate product interest, trial, or purchase. While developing a sales promotion
strategy, it is important to keep the in mind: Consumer attitudes and buying
patterns, Firm’s brand strategy, competitive strategy, advertising strategy, stage in
PLC, and government regulations.

4. PUBLIC RELATIONS:
Public Relations are used to build rapport with employees, customers, investors,
and the general public. Almost any organization that has a stake in how it is
portrayed in the public arena employs some level of public relations. There are a
number of public relations disciplines falling under the banner of corporate
communications, such as analyst relations, media relations, investor relations,
internal communications and labor relations. Most of them include the aspect of
peer review to get visibility.
3.1.5 THE PEOPLE (THE 5TH P):
The fifth P of the marketing mix is people. People inside and outside of the
business who are responsible for every element of sales and marketing strategy and
activities. 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. Staff should have the
appropriate interpersonal skills, attitude, and service knowledge to provide the
service that consumers are paying for. In his best-selling book, “Good to Great”,
Jim Collins discovered the most important factor applied by the best companies
was that they first of all "got the right people on the bus, and the wrong people off
the bus." Once these companies had hired the right people, the second step was to
"get the right people in the right seats on the bus."

In many cases, it's not possible to move forward until one can attract and put the
right person into the right position. Many of the best business plans ever developed
sit on shelves today because the [people who created them] could not find the key
people who could execute those plans. Right people, properly trained, is a must for
obtaining competitive advantage. It is the interaction with people consumers
perceive of quality of service. The people should have appropriate interpersonal
skills, aptitude and service knowledge to deliver expected service. The students
perceive of their college on the basis of teaching and non-teaching staff attitudes.
3.1.5 THE PROCESS (THE 6TH P):
Process is the delivery and operating systems of procedures, mechanisms and flow
of activities which services are consumed. To deliver products or services, systems
or processes have to be in place, to avoid any discretion. Imagine you get in
McDonalds and order a burger and get it within 2 minutes. Such an efficient
service will earn customer loyalty and repeat visits. Every business must have
processes, like, processes for handling customer complaints, processes for
identifying customer needs and requirements, processes for handling order etc.
Refers to the systems used to assist the organization in delivering the service.
Imagine you walk into Burger King and you order a Whopper Meal and you get it
delivered within 2 minutes. What was the process that allowed you to obtain an
efficient service delivery? Banks that send out Credit Cards automatically when
their customer’s old one has expired again require an efficient process to identify
expiry dates and renewal. An efficient service that replaces old credit cards will
Foster consumer loyalty and confidence in the company.

3.1.7 THE PHYSICAL EVIDENCE (THE 7TH P):
Physical evidence refers to the environment in which the service is delivered, and
the tangibles that help to communicate and perform the service. If you walk in a
grocer’s shop and find rats, insects and flies, what will be your perception? The
young generation prefers to go to malls instead of street shop is the physical
ambience.- the cleanliness, air conditioning, parking facility, facility to touch, etc.
People do not mind to pay more but need clean environment at the place of
delivery for having better experience. The importance of quality of physical
evidence is important is required both for services and product marketing.
Physical evidence can also refer to the people within your company and how they
dress and act. It can refer is how your office is set up, the proffesnalism of your
staff. How your interact with your customer.
Most services cannot be offered without the support of tangibles. Customers

cannot see the service provided, but they can definitely see the tangibles that
accompany. For example, a passenger transport organization promises for a safe,
comfortable and timely journey from one place to another. Now this is examined
on the bases of transport vehicle’s condition, seating facilities and other physical
facilities and also the way in which the employees are responding to the customers.
All these physical factors are used as evidence by the customer to evaluate and
expect the service from the provider. As, a result physical evidence plays a crucial
role in shaping the consumers perception as well as expectations.

14 CHEPTER .
INDUSTRIAL DEVELOPMENT BANK OF INDIA
5.1PROFILE OF IDBI BANK:

IDBI Bank Ltd. is today one of India's largest commercial Banks. Forever 40
years, IDBI Bank has essayed a key nation-building role, first as the apex
Development Financial Institution(DFI) (July 1, 1964 to September 30,2004) in the
realm of industry and thereafter as a full-service commercial Bank (October 1,
2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere
project financing to cover an array of services that contributed towards balanced
geographical spread of industries, development of identified backward areas,
emergence of a new spirit of enterprise and evolution of a depend vibrant capital
market. On October 1, 2004, the erstwhileIDBI converted into a Banking company
(as Industrial Development Bank of India Limited) to undertake the entire gamut
of Banking activities while continuing to play its secularDFI role. Post the mergers
of the erstwhile IDBI Bank with its parent company (IDBI Ltd.) on April 2, 2005
(appointed date: October 1, 2004) and the subsequent merger of the erstwhile
United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-savvy,
new generation Bank with majority Government shareholding today touches the

lives of millions of Indians through an array of corporate, retail, SME and Agri
products and services.
Headquartered in Mumbai
IDBI Bank today rides on the back of a robust business strategy, a highly
competent and dedicated workforce and a state-of-the-art information technology
platform, to structure and deliver personalized and innovative Banking services
and customized financial solutions to its clients across various delivery channels.
As on March 31, 2012, IDBI Bank has a balance sheet of Rs.2.91 lakh crore and
business size (deposits plus advances) of Rs.3.92 lakh crore. As an Universal
Bank, IDBI Bank, besides its core banking and project finance domain, has an
established presence in associated financial sector businesses like Capital Market,
Investment Banking and Mutual Fund Business IDBI Bank Ltd. is today one
of India's largest commercial Banks. Forever 40 years, IDBI Bank has essayed key
nation-building role, first as the apex Development Financial Institution(DFI) (July
1, 1964 to September 30,2004) in the realm of industry and thereafter as a full-
service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile
IDBIstretched its canvas beyond mere project financing to cover an array of
services that contributed towards balanced geographical spread of industries,
development of identified backward areas, emergence of a new spirit of enterprise
and evolution of a depend vibrant capital market. On October 1, 2004, the
erstwhileIDBI converted into a Banking company (as Industrial Development
Bank of India Limited) to undertake the entire gamut of Banking activities while
continuing to play its secularDFI role. Post the mergers of the erstwhile IDBI Bank
with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date: October 1,
2004) and the subsequent merger of the erstwhile United Western Bank Ltd.

5.1 7PS OF IDBI BANK
PRODUCT MIX
Various Products & Services offered by IDBI Bank are as follows:-
1. PERSONAL BANKING
 Deposits
 Loan
 Payments - Tax Payments, Stamp Duty Payments, Easy Fill, Bill
Payment, Card to Card Money Transfer, Playmate, Online Payments
 Mutual Fund
 Demat Account
 IPO
 Insurance - Family Care, Wealthsurance
 Cards - Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-ATM
Card, World Currency Card
 Institutional Banking
 Lockers
 India Post
 NRI Services
 Phone Banking
 SMS Banking
 Account Alerts
 Internet Banking

2. CORPORATE BANKING
 Project Finance
 Infrastructure Finance
 Syndication, Underwriting & Advisory Services
 Carbon Credits Business
 Cash Management Services
 Trade Finance
 Tax Payments
 Derivatives
 Technology Up gradation Fund Scheme (TUFS)
 Film Financing Scheme
 Direct Discounting Bills
 Rehabilitation Finance
3. OTHERS
 SME Finance
 Agri-business Products

IDBI BANKFREEDOME DEPOSIT FEATTURES
1. Monthly, Quarterly and Annual Income Plans For those who seek regular
incomes - A great option for people who require interest income at regular
intervals. The interest income will be credited automatically into your
savings account at the interval (Monthly/Quarterly/Annual) specified by you.
Monthly interest payout is calculated at monthly discounted rate and Annual
interest payout is calculated at Simple interest rate. The deposit is automatically
renewed on maturity so that you don't lose interest for single day. What more
you can book your ‘Freedom Deposit’ with only Rs.10, 000.
2.Quarterly Compounding ‘Freedom Deposit’ Ideal for those how want a

higher rate of return combined with a low risk ‘Freedom Deposit’- This
option re-invests the interest earned on your deposit, every quarter resulting in a
higher rate of return for you. For example, the interest rate for a 2 years + 1 day
deposit is 5.80% p.a. but the effective yield is higher at 6.11% p.a. on account
of re-investment of the interest earned. Also, there is automatic renewal of
‘Freedom Deposit’ on maturity; hence you don't lose interest for a single day.
What's more you can book your ‘Freedom Deposit’ with only Rs. 10,000.

3. Sweep in Savings'- Earn ‘Freedom Deposit’ interest rate on your savings

account. This option offers you the flexibility of a savings account combined
with the safety and higher rate of interest on ‘Freedom Deposit’. Open a savings
account and you can link multiple ‘Freedom Deposit’ to your savings account.
If there are no funds in the savings account the same can be broken (in
multiples of Rs. 1,000) from the ‘Freedom Deposit’ through a debit card or a
cheque. Moreover, the ‘Freedom Deposit’ booked last will be broken first so
that you lose the least amount of interest.
4.Overdraft against ‘Freedom Deposit’- Tide over your urgent cash

requirements without breaking your ‘Freedom Deposit’ This option allows you
to continue earning the higher rate of interest on an ‘Freedom Deposit’ and at
the same time, you meet your monetary requirements. An overdraft of up to
90% of the Freedom Deposit /Multiple Freedom Deposit held with the bank
will be setup in the account. The overdraft can be availed against a Freedom
Deposit amount of Rs.10, 000 or higher at competitive rates. Moreover, the
overdraft is first given on the Freedom Deposit earning least interest so that
your interest payout is minimized.
5. Senior Citizens Freedom Deposits'- Earn higher rates if you are a senior
citizen, you have the advantage of earning higher interest on your regular
income plans and reinvestment plans. Our interest rates for senior citizens are
higher by 0.50% pa. For deposit from 6 months 2 days and above except for
500 days maturity bucket, where additional rate for Sr. Citizen is 0.25% only.
You can choose from tenure ranging from 15 days to 20 years for minimum
deposits starting from Rs.10,000.

IDBI BANK CORPORATE BANKING SERVICES INCLUDE:
FUND BASED SERVICES
 Project Finance
 Working Capital Finance
 Structured Finance
 Bill Discounting
 Term Lending
 Export Credit
 Upfront Finance against Carbon Credit
Receivables

NON FUND BASED SERVICES
 Letter of Credit
 Bank Guarantees
 Collection of Documents

DEBT SERVICE PRODUCTS - IDBI BANK DEBT SERVICE PRODUCTS
Debt Service Products include servicing of Interest payments, Dividend servicing,

redemptions and refund (IPO’s, FPO’s and Right Issues)
In our quest for excellence; bank has developed a new process by which the Debt Servicing
business will get a new dimension. This system helps in giving on line reconciliation for all
the warrants issued on IDBI Bank locations. At any given point of time, a list of all unpaid
warrants, tallied with outstanding balance can be provided.
Brief Features:
Online Validation as warrant module in-built in Core Banking System

Scanned Images of paid Warrants with query module
Instrument Level Debits for online reconciliation
Paid/Unpaid status of warrants matching with the account balance, on demand
Immediate ‘Stop Payment’ for warrants issued on IDBI Bank stationary

2. PRICCE MIX
a. POWER PLUS ACCONT
We bring to you a product that reflects and matches your

financial needs and requirements at every step. Power Plus account allows you to
access a complete suite of product and services and enjoy world class banking
experience, complimenting your professional and personal goals. This account
helps you take complete charge of your banking by providing multiple channel and
products and a wide range of benefits to help your time and money. We have a set
of alternate channels to meet your needs
 ATM's, Phone banking, Mobile banking, Internet banking.

 25% discount on locker rates.
 10 other banks ATM transaction free.
 Any branch cash withdrawal and deposit limit is Rs.1, 00,000/- per day.
 Free demand draft within network.
 No statement charges.

B.SUPER SAVINGS ACCOUNT
 Instant Banking
 International Debit Card
 Family Account
 Quick Money Transfer
 Easy Payments
 Bank on the Move
 Profit from your Account
 Value Added Services
All these features are offered for a minimum balance of Rs 5,000.
C.JUBILEE PLUS (SENIOR CITIZENS) ACCOUNT
Now banking can be done from home. IDBI has brought to the senior citizens an
account that can facilitate your banking transactions with hosts of facilities catering
to the needs of the customer. This ideal in which you cannot just save the money
but also make it grow. Also get the benefit of getting another account with an AQB
of Rs.1,000.
An account with a balance of just Rs.5,000 (Category A branches) Rs.2,500

(Category branches) and Rs 1,000 (Category C branches)
 Free Sponsor’s account with AQB of Rs1000 w

 It the senior citizen account.

d.SUPERSHAKTI (WOMEN'S) ACCOUNT
Understanding the specific requirements of our customers, we at IDBI Bank have

introduced especial Savings Account for Women, which we have coined
Super Shakti‟. Not only this, along
With this account we offer one Zero Balance Savings Account absolutely free for
her child below the age of eighteen years.
The Account offers you a host of features, which include
 Free Transactions at other Bank ATMs*.

 An account opening balance of just Rs.1000
 An AQB requirement of Rs. 5000.
 A Zero balance account for your child below the age of 18 years
e. AGRI BUSINESS GROUP
IDBI Bank's total agriculture advance was Rs.1387 Cr for year ended March 2007.
It has gone up by Rs.6924 Cr (around 500%) to Rs.8311 Cr as on March 31, 2009.

3. PLACE MIX
Place mix is the location analysis for banks branches.

There are number factors affecting the determination of the location of the branch
of bank. It is very necessary a bank to situated at a location where most of its target
population is located.
Some of the important factors affecting the location

analysis of a bank are:
 The trade area

 Population characteristics
 Commercial structure
 Industrial structure
 Banking structure
 Proximity to other convenient outlets
 Real estate rates
 Proximity to public transportation
 Drawing time
 Location of competition
 Visibility

4. PROMOTION MIX
Promotion is nothing but making the customer more and more aware of the
services and benefits provided by the bank. The banks today can use a lot of new
technology to communicate to their customers. Two of the fastest growing modern
tools of communicating with the customers are:
 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
 Telemarketing: IDBI one source Call center (mind space)

1. Internet Banking
2. Mobile Banking
 The IDBI bank reaches its new schemes products to its customer through
 Email for customer who are interactive with them by sending mails.
 When the customer comes to the bank they inform him about its new products.
 By putting hoarding that we see on both side of the road which is optional. The
bank may or may not use this option.
 If there are 1000 customers of IDBI at one branch then all the customers are
allotted accordingly to different officers.
 The bank advertises about its products in newspapers. This is one of the
important source through which it tries to inform the general public about its
product.
 The new customer is informed by the already existing customer about the new
scheme of the bank.
 The easiest way to advertise is to put a banner in the entrance of every branch.

5. PEOPLE
People are the employees that are the service
providers. In a banking sector, the service provider
plays a very important and determinant role in
rendering the customers a satisfactory and a good service. It is extremely essential
that the service provider understand what his customers expect from him. In the
banking sector, the customer needs to be guided in a lot of matters, which is
possible only with the help of the service provider. The position in the eyes of the
customer will be perceived by appearance, attitude and behavior of the customer
contact employees. Not only does the customer contact employee
Influence the customer’s perception but also the customer base of the organization
does so.
IDBI
The people working in IDBI are professionally trained, they have adequate
knowledge about the products of their banks and their interactions with the people
are pleasant. The employees are happy with their current pay scales indicating that
the management takes care of their employee.

6. PROCESS MIX
The process mix constitutes the overall procedure involved in

using the services offered by the bank. It is very necessary that
the process is very customer friendly. In other words process
should be such that the customer is easily able to understand and easy to follow.
Today if particular banks formalities are long and the procedure very complicated
the overall process fails and the customer may not be inclined towards using that
banks services.
IDBI
IDBI uses internet for various process such as
 money transfer,
 credit card process,
 debit card process,
 ATM etc.
Flow of activities: all the major activities of IDBI 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
a. STANDARDIZATION:
IDBI 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.
b. 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.
c. NUMBER OF STEPS:
Numbers of steps are usually specified and a specific pattern is followed to

minimize time taken.
d. SIMPLICITY:
In IDBI 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.
e. 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.

7. PHYSICAL EVIDENCE
Physical evidence is the overall layout of the place i.e. how the entire bank has
been designed. Physical evidence refers to all those factors that help make the
process much easier and smoother. For example, in case of a bank, the physical
evidence would be the placement of the customer service Executive’s desk, or the
location of the place for depositing cheques.
IDBI
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,
employee’s dress code etc.

a. SIGANGE:
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.
b. FINANCICAL REPORTS:
The Company’s financial reports are issued to the customers to emphasis or

credibility.
c. TANGIBLES:
Bank gives pens, writing pads to the internal customers. Even the passbooks,
cheque books, etc reduce the inherent intangibility of services.
d. 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.
e. EMPLOYEE’S DRESS CODE:
IDBI bank follows a dress code for their internal customers. This helps the
customers to feel the ease and comfort.

CONCLUSION
A marketing strategy is something that constantly evolves, adapting to

changing market conditions. Within Enterprise, the outcomes from its
many different types of business are constantly reviewed and evaluated.
Judgments are then fed into the decision making process. This enabled
new strategies to be developed to improve operations. However, while
strategies change, one aspect of the business has remained in place. This
is a continued focus on high levels of customer service and employee
relate.
IDBI marketing mix has created a unique position for the brand within
the mind of consumers whilst remaining true to its corporate values.
It is the quality of product, level of technology and speed of services
rendered which is going to be deciding factor .It will have to
differentiate from other bank offering similar products to consumers.
By uniquely understanding and valuing consumers, IDBI Bank
continues to grow within a difficult economic and corporative market

adapting and changing its market mix through a focus on consumers, is

has effectively managed to stay ahead of the competition.
REFFERENCE
BIBLOGRAPHY
MARKETING MANAGEMENT
(HOD management studies SMU DDE)
Dr. Tapank .pande
WEBLOGRAPHY
1. http://blog.thecompanywarehouse.co.uk/2010/11/02/advantages-and-
disadvantages-of-marketing.
2. Jump up^ Baker, Michael The Strategic Marketing Plan Audit 2014.
3. WWW. Marketing strategy of IDBI Bank.
4. http://www.researchandmarketing.com/reports/2235928.
5. http;//en wikipidia.org/wiki/marketing/strategy.com
6. http://www.idbi.com/product/currentaccount-gold account.asp

7. http://www.idbi.com/product/currentaccount-bronzeaccount.asp
8. http://www.idbi.com/product/taxpaymentonlinecedandst.asp

Chepter .1. Evaluate Marketing Plan: Marketing Strategy of Idbi Bank

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Chepter .1. Evaluate Marketing Plan: Marketing Strategy of Idbi Bank

Caricato da

Copyright:

Formati disponibili

MARKETING STRATEGY OF IDBI BANK

EVALUATE MARKETING PLAN

Marketing is the process of communicating the value of a product or services to

Marketing is an important social economic activity. It is an essential activity for

1. According to Philip kotler, “marketing is a human activity directed at

2. According to the American Marketing Association (AMA) Board of

5. Marketing is traditionally the means by which an organization communicates

1.1 OVERVIEW OF MARKETING

The activity set of instructions and processes for creating, communicating,

Requirements for an exchange

1) There must be at least two parties

Marketing always occurs even if exchanges do not

The social and economic justification for an organization's existence is the

4. SOCIETAL MARKET ORIENTATION

Customers' evaluation of a good or service in terms of whether that good or service

A strategy that focuses on keeping and improving relationships with current

Market-oriented firms giving employees more authority to solve customer

Entails collaborative efforts of people to accomplish common objectives

10. THE MARKETING MIX

1.1.1 INTERNAL MARKETING

Employees and employee development through training recruitment,

Internal marketing activity focus on designing programmers to satisfy the need of

1.1.2 TARGET MARKET

Group of people or organizations for which an organization designs, implements,

1.1.3 CORE FUNCTIONS OF MARKETING:

3. INTRODUCTION TO MARKETING STRATEGY

2. SELLING - producers function within a free market to sell products to

7. RISK-TAKING - insurance companies provide coverage to protect

8. MARKET INFORMATION - information from around the world about

5 ADVANTAGES AND DISADVANTAGE OF

“Marketing” the process by which companies create customer interest in goods or

There are different advantages and disadvantages of marketing depending on your

 GENERAL ADVANTAGE OF MARKETIN

An obvious advantages of marketing is the promotion of your business; getting

Every business needs to ‘spend money to make money’. Investing in marketing is

 GENERAL DISADVANTAGE OF MARKETIN

SPECIFI ADVANTAGES AND DISADVANTAGE OF

 Choosing the appropriate e magazine or newspaper to advertise and market

2 TELEVISION AND RADIO MARKETING

3 DIRECT MAIL MARKETING

Your advert, catalogues or product samples straight through your customer’s

 Direct mail is often seen as “junk” mail. So if your marketing doesn’t

 2.3 SCOPE OF MARKETING

 1. STUDY OF CONSUMER WANT AND NEEDS

 2. STUDY OF CONSUMER BEHAVIOR

 3. PRODUCTION PLANNING AND DEVELOPMENT

7 INTRODUCTION TO MARKETING STRATEGY

8 ELIMENTS OF MARKETING STRATEGY

Marketing strategy is...

9 TYPES OF MARKETING STATEGY

MARKWTING is a strategy used by companies to communicate with the

1. AFFINITY MARKETING - Also known as Partnership Marketing, this

2. ALLIANCE MARKETING - Here two or more entities come together to

3. AMBUSH MARKETING - This strategy is used by advertisers to

4. CALL TO ACTION (CTA) MARKETING - CTA is a part of inbound

5. CLOSE RANGE MARKETING (CRM) - Also known as Proximity

6. CLOUD MARKETING - This refers to the type of marketing that takes

7. COMMUNITY MARKETING - This technique caters to the needs and

8. CONTENT MARKETING - In this case, content is created and published

9. CROSS-MEDIA MARKETING - As the name suggests, multiple

DIFFERENT AREAS OF MARKETING

Sales can target individual customers to gain an interest in your

Responsibilities of sales can include; developing strategies, involvement with