Fina Copy of Prashant 100 Marks Final Project 2

SERVICE MARKETING IN BANKS
Ch.1. INTRODUCTION TO THE BANKING IN INDIA

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. Bank is defined as one who in ordinary course of business honors the cheques drawn upon him by person from and for whom he receives money on current accounts Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, drafts, order or otherwise. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher
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SERVICE MARKETING IN BANKS valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments.
The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. governmentowned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here.
The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered around the customer understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions.
Ch.2. METHODOLOGY
The study of Service Marketing in Banks requires technical & conceptual understanding of term service marketing for which a good deal of information need to collected. Researcher collects secondary data through various books and also from websites (Internet).
Secondary Data are those, which have already been collected by someone else and which have already been passed through the statistical process. This data is collected from the following sources.
a) Reports of ICICI BANK
b) Magazines c) Journals d) Newspapers
OBJECTIVES: The objective of this project study is to enable the researcher: To understand what is Service Marketing. To know about service marketing in ICICI Bank. To know the importance of service marketing in banks.
SCOPE:
SERVICE MARKETING IN BANKS The scope of this project extends only upto ICICI Bank. Study is restricted only upto Service Marketing in Banks. It will help to understand the concept of service marketing in banks with an example of ICICI Bank and to know the new trends in ICICI Bank & Awards and Recognitions given to ICICI Bank.
LIMITATIONS: This project study is limited to the extent of guidelines issued by University of Mumbai. Adequate primary data was not available.
Ch.3. PEST ANALYSIS
SERVICE MARKETING IN BANKS TECHNOLOGICAL ENVIRONMENT Technology plays a very important role in banks internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed anytime, anywhere banking facilities. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. Credit card facility has encouraged an era of cashless society. Today MasterCard and Visa card are the two most popular cards used world over. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also called as electronic purse. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry, get the statement of accounts, give instructions for fund transfers, etc. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of loosing the post. Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile. The messages are then recognized by the bank to provide you with the required information.
SERVICE MARKETING IN BANKS All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach. ECONOMICAL ENVIRONMENT Banking is as old as authentic history and the modern commercial banking are traceable to ancient times. In India, banking has existed in one form or the other from time to time. The present era in banking may be taken to have commenced with establishment of bank of Bengal in 1809 under the government charter and with government participation in share capital. Allahabad bank was started in the year 1865 and Punjab national bank in 1895, and thus, others followed Every year RBI declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. If in the Budget savings are encouraged, then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector, therefore, booming the economy. If the FDI limits are relaxed, then more FDI are brought in India through banking channels. POLITICAL/ LEGAL ENVIRONMENT Government and RBI policies affect the banking sector. Sometimes looking into the political advantage of a particular party, the Government declares some measures to their benefits like waiver of short-term agricultural loans, to attract the farmers votes. By doing so the profits of the bank get affected. Various banks in the cooperative sector are open and run by the politicians. They exploit these banks for their benefits. Sometimes the government appoints various chairmen of the banks.
SERVICE MARKETING IN BANKS Various policies are framed by the RBI looking at the present situation of the country for better control over the banks. SOCIAL ENVIRONMENT Before nationalization of the banks, their control was in the hands of the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India. In 1969 government nationalized 14 banks. To adopt the social development in the banking sector it was necessary for speedy economic progress, consistent with social justice, in democratic political system, which is free from domination of law, and in which opportunities are open to all. Accordingly, keeping in mind both the national and social objectives, bankers were given direction to help economically weaker section of the society and also provide need-based finance to all the sectors of the economy with flexible and liberal attitude. Now the banks provide various types of loans to farmers, working women, professionals, and traders. They also provide education loan to the students and housing loans, consumer loans, etc. Banks having big clients or big companies have to provide services like personalized banking to their clients because these customers do not believe in running about and waiting in queues for getting their work done. The bankers also have to provide these customers with special provisions and at times with benefits like food and parties. But the banks do not mind incurring these costs because of the kind of business these clients bring for the bank. Banks have changed the culture of human life in India and have made life much easier for the people.
Ch 4. MARKET SEGMENTATION
An organization is supposed to cater to the changing needs of customers; it is only natural that all customers have their own likes and dislikes. They have some uniqueness, which throws a big imprint on their lifestyles. This makes the task of understanding a bit difficult. It has the context that we go through the problem of market segmentation in the banking service. The study of the needs of customers invites a plethora of problems since in addition to other aspects; the regional considerations also influence the hierarchy of needs. To be more specific in the banking services, the banking organizations are supposed to satisfy different types of customers living in different segments. The segmentation of market makes the task of bank professionals easier. If the market segmentation is done in a right fashion, the task of satisfying the customers is simplified considerably. The modern marketing theories advocate the formulation of marketing policies and strategies for each segment, which an organization plans to solicit. The marketing segmentation is based in the principle of divide and rule. If we divide the market into different segments, the size of market is made small and the process of study is found convenient. We find market segmentation division and subdivision of a market based on considerations. The bank professionals have to segment the market in such a way that the expectations of all potential customers are studied in a right perspective and the marketing resources are developed to fulfill the same. The marketing efforts can be made more proactive if the process and bases of segmentation are right.
SERVICE MARKETING IN BANKS It is essential that the bank professionals assign due weightage to the difference that we find in the market behavior due to geographical, age, sex, nationality, educational background, income classes, occupation, social and other considerations. If they overlook or underestimate key bases while segmenting, the study results cant be proactive to the formulation of creative marketing decisions. This makes it essential that the bank professionals are well aware of the criteria for market segmentation. The agriculture sector, industrial sector, services sector, household sector are found important in the very context. The gender segment is found important no doubt but we cant underestimate institutional and professional segments. Since the banking organizations serve different sectors and segments, the segmentation should be done carefully.
IMPORTANCE OF SEGMENTATION: Instrumental
in
exploring
opportunities:
We
find
market
segmentation very much effective in exploring the profitable opportunities. It is well known to us that while segmenting, the market is divided into different groups and sub-groups and this simplifies the process of studying and understanding the customers in a right perspective. If we know about the rural segment, the opportunities are explored to the rural areas. If we know about the women segment, the opportunities are identified in that area. If we know about the lowincome group, the opportunities are identified in that group. Thus the segmentation helps the bank professionals in exploring the profitable opportunities.
Instrumental in designing a sound marketing strategy: We cant
deny that market segmentation makes it easier to formulate a sound strategy. Since the banking professionals are aware of the changing
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SERVICE MARKETING IN BANKS needs and requirements of a segment, the marketing resources can be developed in tune with the needs and requirements of a segment. The formulation of a package is found significant and the bank professionals can do it successfully on the basis of market segmentation. The promotional measures can be satisfied in the face of receiving capacity of a particular segment. The pricing strategy can be made operational and the sales promotion measures can be made productive.
Helpful to the policy planners: In addition, the policy makers also
find segmentation since they are well aware of the emerging trends in the business environment. They get detailed information about the changing needs and requirements of a segment. The planning is an on going process. The banking professionals transmit necessary information to the policy planners, which simplifies the process of making a sound policy.
Enriching the market resources: In addition to other aspects, we find
segmentation instrumental in enriching the marketing potentials. If we know about the preference, needs, requirements, attitudes, lifestyles it is found easier for us to develop the marketing resources accordingly. This in a natural way makes it convenient to develop marketing resources. The process of innovation can be activated. The services, the promotional measures, the pricing tool and the process of offering can be made more competitive. The development of world-class marketing resources thus makes it convenient to influence the impulse of prospects. The bank professionals find it easier to get the positive results for their productive marketing efforts.
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Ch. 5. MARKETING OF BANKING SERVICES

In the earlier days, bankers like any other private sector organizations had their own plans of business development and adopted their own ways and means to achieve their objective. The MARKETING concept was in the form of advertising & promotion. This was the position till the middle of 20th century. Gradually there was a change in the attitude of bankers with respect to customers. In the late 1950s, new concept in the Marketing Services with respect to banking profession, arose in the West. Deryk-Weyer of Barcelays Bank came out with a comprehensive definition of BANK MARKETING. According to him, Bank Marketing consists of 1] Identifying the most profitable markets now and in future, 2] Assessing the present and future needs of the customers, 3] Setting business development goals, 4] Making plan to meet them and managing the various services and promoting them to achieve the plans- all in the context of changing environment in the market.Thus, the idea of customer satisfaction arose in the 1950s, flourished in the 1960s and became an integral part of Banking Services in 1970s. In the course of time, the concept of Marketing widened further. From the stage of customer satisfaction, the Marketing become more concerned with the wellbeing of the Society as a whole & resulted in coining the term SOCIETAL MARKETING. Hartley would call it as Response Marketing attuning with or responding to the changing needs of customers society and environment.
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SERVICE MARKETING IN BANKS Marketing of banking services is concerned with product, place, distribution, pricing and promotion decisions in the changing, socio-economic and business environment. It means organizing right activities and programmes at the right place, at the right time, at a right price with right communication and promotion. The users of banking services or the prospects play a very significant role in the formulation of overall marketing strategies. The bank marketing activities are concerned with the designing of product strategies keeping in view the needs and requirement of prospect. It is also related with the place decisions i.e. location of a bank at a suitable points. It has following unique features:1] Intangibility 2] Inseparability 3] Variability 4] Perishability
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With liberalization and globalization of the economy, middlemen are gradually emerging in the banking industry. Foreign banks and new private banks like City Bank, Global Trust Bank and ICICI Bank are offering their franchise in marketing their services. This has introduced the middlemen in marketing of banking services. In banking services, the marketing strategy starts with developing customer profiles by which the bank can collect and analyse all relevant information on customers. The preferences and prejudices of the customers are identified with the help of these profiles and this enables the bank to enhance its marketing activities. In order to satisfy the customers needs new services may be introduced or the existing services of the bank may be modified. Customer satisfaction plays an important role in banking services.
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Ch. 6. 7 PS of BANKING
It is very important for any bank to identify the 7 Ps of services so was understands their customers better and provide them with best of service. The 7 Ps are: 1. PRODUCT MIX 2. PRICE MIX 3. PLACE 4. PROMOTION 5. PEOPLE 6. PROCESS 7. PHYSICAL EVIDENCE
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PRODUCT MIX:
A Product can be defined as the bundle of utilities consisting of various product features accompanying services. The product mix of a company includes all different product lines a company offers to its customers. The product line of a bank might easily include more than 100 different services. Bank services are viewed with not just things that are created with value but they are seen in terms of satisfaction they deliver. In todays competitive scenario it has become very necessary for a bank to provide its customers with a wide variety of services and the best technology in order to attract them. BANKS PRODUCT: [A] DEPOSITS:1] Time Deposits. [B] ADVANCES:They are of two types: I] Fund Oriented: a] Term Loan, b] Clean Loan, c] Bill Discounting, d] Advances, e] Pre-shipment finance, f] Post-shipment finance, and
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SERVICE MARKETING IN BANKS g] Secured and Unsecured lines of credit. II] Non-Fund Oriented: a] Guarantees, and b] Letter Of Credit. [C] INTERNATIONAL BANKING:I] Letter Of Credit, and II] Foreign Currency [D] CONSULTANCY:I] Investment Counselling, II] Project Counselling, III] Merchant Banking, and IV] Tax Consultancy. [E] MISCELLANEOUS:I] Traveller cheques, II] Credit Card, III] Remittances, IV] Collections, V] Sale of drafts, VI] Standing Instructions, and VII] Trusteeship.
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PRODUCT LEVELS CORE PRODUCT LEVEL:It is the main or core reason why the customer will buy the service of the bank. More like the basic purpose or necessity. The core product level provides the platform for the development of other peripheral levels. EXPECTED PRODUCT LEVEL:This level reflects the standard required or expected by the customers to satisfy their needs and wants. It is the minimum set of expectations a customer has about a product or service which the marketer must strive to satisfy. If the service offer fails at this level it will mean immediate dissatisfaction. AUGMENTED PRODUCT LEVEL:It includes the fundamental services and benefits that distinguishes the companys offer from the competitors offer. This product is basically a formal product with some ancillary benefits or extra features attached to it. These value additions are made in order to make the service more attractive to customers. The service provider should make continuous efforts to search for further features and benefits in order to add to their offer. POTENTIAL PRODUCT LEVEL:-
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SERVICE MARKETING IN BANKS The potential product focuses on the future. When a product exceeds the augmented level it comes as a pleasant surprise to their customer and he is delighted leading to his loyalty towards the product. For an example, the customer will be delighted to receive a special discount on his next visit, if his bill exceeds a particular amount. PRODUCT LEVEL CORE PRODUCT LEVEL:1] Banking space, 2] Lonable funds, EXPECTED PRODUCT LEVEL:3] Safety of deposits. 1] Correct transaction recording, 2] Timely service, 3] Designated banking hours, AUGMENTED PRODUCT LEVEL:4] Minimum courtesy. 1] Cogenial waiting room, 2] Friendly employees, 3] May I help you attitude, 4] Welcome note, 5] Relationship orientation, 6] Admission of faults in event of a mistake. POTENTIAL PRODUCT LEVEL 1] Occasional greetings at home, 2] The How are you Mr. X culture, 3] Surprise Gifts, 4] Readiness to go out of the way to satisfy the individual customer.
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SERVICE MARKETING IN BANKS Thus it can be seen how a particular product passes through different levels. In todays competitive scenario most banks try offering services at the Augmented and Potential level.
PRICE MIX:
The price mix in the banking sector is nothing but the interest rates charged by the different banks. In todays competitive scenario where customer is the king, the banks have to charge them interest at a rate in accordance with the RBI directives. Banks also compete in terms of annual fees for services like credit cards, DMAT etc. Another important aspect of the banks pricing policy today is the interest charged on the Home Loans and Car Loans. With Indias economy progressing, there are more and more buyers seeking these loans but at a very competitive interest rate.
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SERVICE MARKETING IN BANKS The Reserve Bank of India and the Indian Banking Association are concerned with respect to the pricing in banks. Pricing policy of a bank is considered important for raising the number of actual customers. The potential customer or investors generally frame their investment decisions on the basis of interest to be received on the investments. While framing a pricing policy different pricing methods can be used. In cost plus pricing a detailed analysis of cost structure of various banks products and services is to be done. In case of competition related approach, the price is decided on the competitors price. The banks are required to frame two fold strategies. Strategies concerned with interest and commission to be paid to the customers and interest or commission to be paid by the customer for different types of services. Lets understand this with an example. A particular buyer approaches a bank for a car loan for a period of 3 years. He is charged Rs. 20,000 as interest. However, if a sale representative of another bank comes to know of this deal, he will try to attract the customer by giving him a better deal i.e. a loan at a lower rate on interest. In this way, it is the customer that ultimately benefits.
The pricing factor is very important because of the kind of competition that is prevailing today in the Indian market. However it is very important to understand that in the banking sector, the main pricing policy is concerned with the interest rate charged. This interest rate is however regulated by the RESERVE BANK OF INDIA and THE INDIAN BANKING ASSOCAITION. Any one particular bank or a group of banks does not regulate it. The interest
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SERVICE MARKETING IN BANKS rate charged cannot be higher than that decide by the RBI and the INDIAN BANKING ASSOCIATION. Thus, inspite of the constraints in the pricing policy due to the RBI directives there are mainly three types of pricing methods adopted by banks. They are:
Value pricing: Banks having unique or different products or schemes mainly do this type of pricing. They usually charge a combination of high and low prices depending on the customer loyalty as well as the products. This type of pricing strategy is usually coupled with promotion programmes. Going Rate pricing: The most commonly used pricing technique is the going rate pricing. In going rate pricing, the bank bases its price largely depending on the competitors prices. The banks however have to stay within the RBI directives and compete. The banks may charge higher or lower than their competitors. After 1991 when the foreign banks entered the Indian market this method of pricing has gained increasing importance. Mark up pricing: This is a pricing technique wherein the cost of the service is determined and a small margin is added to it and then the final price is offered to the customers. This type of pricing is the not very popular since in the banking sector it is not very easy to arrive at the cost of the service. Thus most banks use a combination of mark up pricing and going rate pricing.
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THE MOST FAVORABLE PRICING STRATEGY
This model shows a pricing strategy, which should be adopted in order to ensure maximum satisfaction to both the bank as well as the customers. The price should be set in such a manner that the customer is assured that he is not being cheated or overcharged by the bank and at the same time the bank is able to reap maximum profits. Such a pricing stand helps the bank get
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SERVICE MARKETING IN BANKS maximum sales as well as profits since the customer feels that by entering such a transaction he is winning.
PLACE MIX:
Place mix is the location analysis for banks branches. There are number a 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: 1. The trade area 2. Population characteristics 3. Commercial structure 4. Industrial structure 5. Banking structure 6. Proximity to other convenient outlets 7. Real estate rates 8. Proximity to public transportation 9. Drawing time 10.Location of competition 11.Visibility 12.Access
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It is not necessary that all the above conditions have to be satisfied while selecting the location but it should be tried to satisfy as many of them as possible.
1. The Trade Area: The trade area is a very important factor determining the place where a bank branch should be set up. For e.g. a particular location maybe a huge trading place for textiles, diamonds or for that case even the stock market. Such locations are ideal for setting up of bank branches.
2. Population Characteristics: The demography of a place is a very important factor. This includes: The income level of the population The average age The average male female population The caste, religion, culture and customs The average spending and saving habit of the people. These factors are very important for a bank as the help them decide the kind of business the branch will get.
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SERVICE MARKETING IN BANKS 3. Commercial Structure: The commercial structure refers to the level of commerce i.e. business activities taking place at a particular location. The higher the level of business activities taking place in a particular location the more preferable it is for setting up a bank branch.
4. Industrial Structure: This is nothing but a combination of the trade area analysis and the commercial structure. However the industrial structure focuses more on the kind of industries operating in a particular location. For example, an area like SEEPZ is marked with a lot of electronic manufacturing units.Thus the industrial stricture determines the kind of financial transactions that could take place in a particular location. 5. Banking Structure: The Banking structure refers to the existence of other banks in the area. Whether there is already an efficient network of other bank branches operating at that particular area. Thus the overall infrastructure needed for the working of a bank. 6. Proximity of other convenient outlets: This refers to the other branches of the same bank as well other commercial, entertainment and industrial outlets. 7. Real Estate Rates:
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SERVICE MARKETING IN BANKS This is mainly dealing with the cost factor involved in opening up a bank branch at a particular location. The real estate rate is a very strong factor influencing the location decision for a bank branch. 8. Proximity to public transportation: The location should be proximate to public transportation facilities. This means it should have bus stops close by as well as it should be proximate to railway stations so as to make it convenient for the common man. 9. Drawing Time: Drawing time refers to the time period during which a customer can draw money from the banks. It should be convenient to the customer and somewhat flexible to accommodate the customers needs. No bank has more than a certain amount with them and in case a customer wants to withdraw an amount more than that available with the bank, the bank needs to draw that amount from other banks. Hence, a location must be such that it facilitates minimum drawing time. 10. Location of Competition: The existence of other banks also means competition. If the level of competition is very high in a particular location, it is necessary that a bank does a lot of market research before opening a branch so as to estimate the kind of business it would get. 11. Visibility: The location of a branch should be such that it is visible and easily noticed by the customers as well other people.
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SERVICE MARKETING IN BANKS 12. Access: The bank branch should be very easily accessible to the customers. If this is not the case, the customer might switch to some other bank, which is more convenient to him and very easily accessible. The location should be such that it is very convenient for the customer to reach.
Promotion Mix:
INTRODUCTION:Consumer behavior is very complex phenomenon, which is considered primarily in marketing decisions. It has been rightly said "Understand, you do not understand, you will not understand, you cannot understand all your customers but still you have to do your best to understand them." In consumer behavior this is very difficult to make a uniform theory that may suggest that a particular individual or group will behave in a particular manner. Consumer behavior is dynamic and to be studied regularly. Increasing awareness, living standards and urbanization has led to increase in the changing preferences and the same has forced the marketers to change their product features, packaging styles, distribution channels and so on. There is a famous saying the "Success has a simple formula-Do your best and people must like it". Similarly, for marketers the advice is- offer the best and customers must like it'. Identical products always have their life cycle the product life cycle suggests that there is a level of maturity of the product and after that no more consumers
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SERVICE MARKETING IN BANKS can be attracted for that. The case is very same with preferences of consumers that they always like some innovative and different products to use. The study of consumer behavior is compulsory to know about likes and dislikes of consumers from time to time so that the products and services can be offered accordingly. Customers have their own unique needs, demands and preferences in a particular segment. Marketers have to study customers in particular segment. Really interesting it is, the study of consumer behavior can make it possible that after observing and examining the behavior of consumer a marketer can present his product in such a way that the product can capture the market. However it was very difficult to sell that product earlier. Consumer behavior indeed gives every possible answer to the complex questions concerned with consumer's buying reasons. The following diagrammed will tell about the all marketing decisions taken in services industry or banking services. These all are essential decisions which are concerned are essential ingredients of services marketing mix. The analysis has been done in the context of banking services.
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When customer is treated as the king of the market, the study of consumer behaviour becomes more important for marketing decisions. There is no doubt that the behaviour is the base of marketing decisions. 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. A bank may have very attractive schemes and services to offer to their customers but they are of no use if they are not communicated properly to the customers. Promotion is o inform and remind the individuals and persuade them to accept, recommend or use of product, service or idea. However there some very important points that is to be considered before the promotion strategy is made. These points are:
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SERVICE MARKETING IN BANKS Finalizing the Budget: Before the bank decides the kind of promotion that should be done, it very important to finalize the budget for it. The formulation of a sound budget is essential to remove the financial constraints in the process. The budget is determined on the basis of volume of business of the bank. In addition to this the intensity of competition also plays a decisive role. Selecting a suitable vehicle: Another very important task is to select a suitable vehicle for driving the message. There are a number of devices to advertise such as broadcast media, telecast media and the print media. The selecting of the mode of advertising is strongly influenced by the kind of budget decided. Usually for promoting banks the most effective and economical form of advertising has been the print media. Making possible creativity: Making possible creativity is nothing but the kind of slogans, punch lines etc. that are supporting the message. They should be very creative but yet simple to be understood by the common man. It should appeal to the customers. It should be distinct from that of the competitors and should be successful in informing and sensing the customers. Testing the Effectiveness: It should be borne in mind that the advertisement is first tested for its effectiveness. This should be done with the help of various techniques like
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SERVICE MARKETING IN BANKS testing effectiveness on a sample group. This helps determine the success of the advertisement and in case of any problem the advertisement can be altered and remedied. Instrumentality of Branch Managers: At a micro level, it is the responsibility of the branch managers to promote and drive the message to the people in the local area. They should organize small programs in order to attract people and crate awareness in the local area about the new schemes of the bank.
Different Ways of Promotion

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
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SERVICE MARKETING IN BANKS responsibility of the various bank managers to develop a steady and strong relationship with their present customers as well as potential customers. This can be done by a constant follow up, small programmes etc. Personal Selling: Personal selling is found to be one of the most effective and popular forms of promoting bank business. The main reason for this is that banking is a service in which trust plays a very important role. In personal selling, a bank representative goes to the customers and explains the scheme to the customers. Also he gives the customers any kind consultation he might need. He provides the customers all the information sought by him. The representative tries to persuade the customers to go for the scheme provided by the bank by telling him all the benefits. Here are some of the important features of personal selling It is a direct relation between the buyers and the seller It is oral presentation in conversation It is personal and social behavior It is found to be more effective in service oriented organizations It is based on the professional excellence or expertise of an individual Sales Promotion: Sales promotions are basically giving the customers some additional benefits, maybe at times just some small gifts, in order to promote the schemes. The more innovative the sales promotions the more positive are the results. Some of the most popular sales promotions techniques are gifts, contests, fairs and shows, discounts and commission, entertainment and traveling plans for
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SERVICE MARKETING IN BANKS bankers, additional allowance, low interest financing etc. It is very important that the sales promotions benefits are designed in such a manner that they are better than those of the competitors. Word of mouth Promotion: This form of promotions is not only very effective in banking services but in any kind of service. However it is more important in banking for the only reason that this is a service where trust plays a very important role. If a particular banks services are recommended by friends, relatives, or other well wishers the person is more influenced and inclined towards that bank. It is very important to note that the internal employees of the bank play a very important role in word of mouth promotion technique. This is because they can start the process by recommending the bank to their friends and relatives and after that it is like a chain, which spreads like a wild fire.
Telemarketing: In recent times telemarketing has gained increasing importance as an effective tool for promotion. The telemarketing is a process of making use of sophisticated communication network for promoting the banks. This includes promoting through television, telephone, and radio. Nowadays, cell phones are used extensively for the same. This is the most popular form of promotion.
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SERVICE MARKETING IN BANKS Banks today have started using SMS and many other services supported by cell phones to provide benefits to their customers and thus have tried to increase their sales. In todays competitive and modern scenario it very important that banks makes use of telemarketing techniques very efficiently to have desirable results. Internet: In present time the most popular tool for promotion of banking services has become Internet Marketing of services. E-Advertising is being very much popular. In city areas of India, people use internet so frequently. Studies tell that they use internet mostly for checking their mails, finding results and educations and research purposes. The e-advertising of banking services not only promote the services by giving offers but it also interacts with the person and a potential customer can purchase the product with the help of this. However internet advertising in pop ups irritates the internet users but advertisements done on home page of any website such as email service provider is useful and customers get knowledge about the new banking services and promotions. When they see something in front of their eyes they can remember it much. The use of Internet as a promotional tool is increasing. More and more banks are using Internet to promote their services. The online banking has made it even easier for the customers to avail the banks services. No longer do people have to go to their bank branches for small petty matters like checking their balance etc. All this can be done with the help of a few clicks.
Mass Media Advertising: Most Preferred mode for marketing of Banking Services:
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SERVICE MARKETING IN BANKS Mass media advertising includes TV commercials and advertising in national level newspapers which have a wide coverage. Advertising in these has made maximum people aware about the offerings of the banks and established most of the bank names as big brands. In a recent survey ICICI Bank has been considered as the most popular banks in private sector. The use of umbrella branding works well in promotion of banking services. Different types of advertisement campaigns have been seen in form of TV commercials and as print ad in newspapers. Print ads mainly focus on corporate image advertising of banks as well as a new offering of the bank such as increase in interest rate on deposits or decrease in the interest rates in loans and so on. TV commercials mainly focused on corporate advertising, where banking service is promoted as a whole rather than a particular product of banks. Themes and appeals used in TV commercials of banking: Advertising appeal is the method used to draw the attention of consumers and to influence their feelings toward the product, service, or cause. There are hundreds of different appeals that can be used as the foundation for advertising messages. These are the central idea of an ad which has been used to catch the attraction of customer by heart. The theme of a commercial strikes a person in depth and forces him/her to act in the desired manner. Generally advertising appeals are broken into two categories: rational appeals and emotional appeals. Uses of Appeals in Banking Services Advertising:
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Name of Broad Personal/Social Bank Category Union Emotional Social/Parental Bank of Appeal Affection India Royal Emotional Personal/Style Bank of Appeal Scotland Group HSBC Rational Practical
Marketing Theme/Punch Line Approach Security and Future Because your dreams benefit are not only yours. Differentiation
In years a player comes who change the way the game is played. Customization of Not two people are Service Offering the same IDBI Rational Practical Comprehensivenes Banking for All s of Services offering State Bank Emotional Personal/Reliability Supporting the With you all the way of India Security customers
ADVERTISEMENT BY BANKS IN INDIA:Banks in India try to get the maximum mileage through the publicity route. Towards this objective, they organize several events which are extensively covered by the print and electronic media. Even then, they spend a huge sum of money on releasing advertisements. The advertisements released by banks may cover routine matters like the change of address of branches on relocation, opening of a new branches, change in the rates of interest on deposits and loans, or even the inauguration of ATM facilities at new centres. Banks frequently release advertisements to announce the launch of new products or to extol the virtues of their existing products. The banks also take out other ads for improving their image. These marketing ads are becoming more imaginative day by day, trying to lure the upwardly mobile young achievers to their banks. These ads are not restricted to the print media and depend on many interesting innovations.
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The practice of banks employing professional models for advertising their brands is on the rise, thereby enhancing their appeal. Banks also advertise their products on electronic screens where the message and images keep repeating continuously. Banks do not leave moving vehicles too, the rear and side panels of buses and the covers of scooters carry the bank message to the distant corners of the city. Appointment of brand ambassadors has become a standard practice for most of the banks. Nowadays, hefty fees are being paid by the banks to prominent people in the show business, who single-mindedly and effectively, try to create a positive impact in the viewers mind. Amitabh Bachchan was one of the first superstar to endorse a bank (ICICI BANK). Later on Hema Malini & Rahul Dravid endorsed the banks like BANK OF RAJSTHAN & BANK OF BARODA respectively.
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
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SERVICE MARKETING IN BANKS 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 customers perception but also the customer base of the organization does so. The products and the seller together constitute the banking product. Bank products can not be separated from people who market them. While designing the product due care should be given to both the product and the seller. A well conceived product could fail if it is not implemented properly. The bank products can be implemented only through people. Banks should adopt internal marketing in order to make the whole business customer-oriented. The bank products should be marketed to the employees first before they are marketed to customers. Most of the banks are moving towards technology based banking. But still matters like investment banking deposit, mobilization, credit evaluation, etc. can be done through personal contacts. SERVICE MARKETING TRIANGLE:SERVICE FIRM (BANK)
INTERNAL MARKETING (ENABLING THE PROMISES)
EXTERNAL MARKETING (MAKING THE PROMISES)

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EMPLOYEES (KEEPING THE PROMISES)
CUSTOMERS
INTERACTIVE MARKETING
(MOMENT OF TRUTH) EXTERNAL MARKETING:The external marketing efforts are the traditional functions of marketing of the customers and make promises to the customers as to what is to be delivered. Anything conveyed to the customer in any form before the delivery of service can be viewed as a part of external marketing function. The first step towards external marketing is to make the firm understand what makes a customers want a particular type of service and what are their expectations of a certain type of service, since external marketing builds customers expectations and belief about service delivery. The external marketing then gives promises that correspond with the personal needs of the target group. The company conveys promises through promotion campaign, corporate image and word of mouth communication. It also conveys through the past experience which the customer has had with the firm. Care should be taken to maintain credibility while setting the promise because a very high expectation may lead to a highly dissatisfied customer. INTERNAL MARKETING:-
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SERVICE MARKETING IN BANKS The expectations of the customers that are created by the external environment must be met by the employees of the service firm who interact with the customers. If the service system as well as the service staff do not support the frontline employees, it will not be possible to meet the promises made by the organization. Thus, the employees are the internal customers who in their job depend on others in the organization for providing goods & services to external customers. Hence, directly or indirectly every employee in the organization in one way or the other serves the external customers. Berry defines internal marketing as the means of applying the philosophy & marketing to people who serve external customers so that: (i) The best possible people can be employed & retained and (ii) They do the best possible work. Internal marketing suggests that the firm should employ market research, market segmentation and traditional marketing activities like advertising and publicity in order to attract employees and make them perform. INTERACTIVE MARKETING:Interactive marketing takes place outside the marketing mix. It takes place at the very moment the buyer and seller interacts. These interactions are also called SERVICE ENCOUNTERS or MOMENT OF TRUTH. It is the skill and motivational tools employed by service personnel in handling the customer contacts. In this process of interaction, the customer judges the quality of service delivered by the service provider. There are different types of service encounters such as 1] Remote encounter:-
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SERVICE MARKETING IN BANKS The tangible evidence of the service becomes a primary basis for judging quality as there is no human contact in service delivery. E.g. ATM vending machines. 2] Phone encounter:Here the service quality can be judged on the basis of how long they had to wait for the phone to be attended, the tone of voice & efficiency in handling the issues.
3] Face-to-face encounter:When there is direct contact between the employee and customer, this type of encounter occurs. In this situation determining the quality is highly complex as it will be influenced by the behaviour of both the customer and employee. Thus, in the interactive marketing the service encounter or the moment of truth is where the value to the customer is created in the service delivery process. At this stage, all the efforts of internal and external marketing will be reflected.
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 a process should be such that the customer is easily able to understand and easy to follow. Today if particular banks
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SERVICE MARKETING IN 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. PROCESS OF BANKS:
PROCESS INNOVATION IN THE INDIAN BANKING INDUSTRY The crisis in the international financial markets had been simmering for quite some time. However, its effects are now evident with the collapse of some of the leading financial institutions. While India has not been as seriously impacted by the global financial turmoil, the current credit crunch has affected all sectors of the Indian economy. On the one hand, the Indian banking industry is witnessing rapid change given
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SERVICE MARKETING IN BANKS the evolving regulatory environment, rapid technological advancements, heightened competition and consolidation. On the other hand, with the global recession looming, the industry is now exploring process innovation and is more aggressively adopting technology. Value Notes along with the Indian Banks' Association (IBA) conducted a conference on "Process Outsourcing in the Indian Banking Industry" on January 6th to address the immediate issues concerning the banking industry. There were several speakers from the banking industry including HDFC Bank, Punjab National Bank, Bank of India, IDBI, who spoke on the issues and concerns of the banks. There were also some service providers such as Intel net, MphasiS BPO, HTMT Global and Shell Tran source who were present at the conference. These service providers talked about their experience with the international banks and spoke about issues related to vendor selection and process transition. Inaugurating the conference, Dr. K Ramakrishnan, Chief Executive, IBA talked about the economy and the banking sector in his opening remarks. He said "The country will see difficult times for at least another one year and in these trying times the question that most banks are asking themselves is How do I still lend and keep the portfolio intact?" He emphasized that this is a time to look internally and examine and set processes in place. Outsourcing in the Indian Banking Industry: Globally, the banking and financial services sector has been at the forefront of the outsourcing movement. Third party service providers have also built greater processing and analytical capabilities and are able to handle more complex functions like financial modeling and equity research. In contrast with
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SERVICE MARKETING IN BANKS global evolution of outsourcing, the Indian banking industry has been slower to outsource. The Indian banking Industry is highly fragmented. There are banks ranging from small co-operative banks (presence limited to a few branches in a city) to large nationalized commercial banks like SBI with over 10,000 branches (one of the largest banking network in the world). The Indian banking Industry is dominated by PSBs with 70% market share. Further, there are different issues that concern the Indian banks when outsourcing. Harsha Pai, General Manager, Sparsh BPO (part of Intel net) touched upon the issue of vendor selection and the necessary parameters while selecting a suitable vendor. Several attendees said that Indian banks were wary of outsourcing especially given the client confidentiality issues and the associated risks. According to Pai, "Initially, international banks had also certain concerns about outsourcing, however, now a majority of the banks outsource a wide range of services to third-party service providers. Indian banks need to clearly understand and convey to the service providers what is truly confidential". While there were some apprehensions about outsourcing, there were also banks such as HDFC Bank, Bank of India and Punjab National Bank who shared their experiences about outsourcing and its rewards. BinduMadhav Tikekar, Senior Vice President & Regional Head - Wholesale banking Operations, HDFC Bank talked about the rewards in the form of cost effectiveness, reduction in technical staff and low implementation and operational costs. However, he also cautioned the banks about the risks associated with outsourcing.
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SERVICE MARKETING IN BANKS Gaurav Bhatia, (Vice President) BFS Solutioning Head - BPO, spoke about process transition - possibility and plausibility. With the help of several case studies he drove home the point that processes are crucial for outsourcing. Banks need to standardize and document every process before they can initiate outsourcing. PROCESS INNOVATION AND TECHNOLOGY : In India, outsourcing of processes is largely constrained by the RBI regulations and resistance from trade unions. According to Arun Jethmalani, CEO, Value Notes, "Aggressive adoption of IT and centralization of operations have served as a key enabler to outsourcing of business processes in the banking industry." Other factors such as growth in the banking industry, deregulation, increasing competition, consolidation and improving benchmarks in the industry are driving the outsourcing of business processes. PSBs have been sluggish in adopting new technology as compared to global banks. Post liberalization, with RBI tightening its regulations, PSBs have undertaken massive computerization to achieve 'Total Branch Automation'. With privatization and increasing competition, all the large banks are now aggressively implementing 'Core Banking Solutions'. There is increasing focus on technology as evidenced by more and more PSU banks going for aggressive computerization and transferring their processes into some technology platform or other. While a few large PSBs have been quick to respond to competitive pressures by introducing new services, investing in technology and acquiring capabilities like marketing and sales, others lag behind. Sanjay Sharma, MD & CEO, IDBI Intech Ltd spoke about leveraging technology for process innovation. He argued that "Banks still need to reach
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SERVICE MARKETING IN BANKS the level where processes are streamlined in a manner so that there is consistent customer service in every branch on any bank. P.A. Kalyanasundar, General Manager, Bank of India said that "Unlike the new generation private and foreign banks, PSBs come with a legacy. The biggest challenge that PSBs are faced with is completeness of data. This poses a hurdle when a bank decides to outsource." On similar lines, R I S Sidhu, Chief General Manager (IT), Punjab National Bank said that "While banks need to invest in technology, it is a challenge for them to implement technology and train their staff. Explaining the marked difference when talking about technology in a PSB, he said that until recently there was very little 'technology' for the banker and processes were largely manual procedures, however today technology implies enterprise wide data warehousing."
Lets take for example the process for application for a car loan. Now this mainly involves 3 things. 1. Producing of proper documents 2. Filling up of application form 3. Paying for the initial down payment. Here the process may fail in the following cases:
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SERVICE MARKETING IN BANKS 1. If the customer is asked to produce a number of forms out of which some may not be necessary at all. Thus it is very necessary that the customer be asked for the minimum but most necessary document and not the other unnecessary documents. 2. In case of application form, the application form must be in a language best understood by the customers and it should not be very lengthy one or demanding a lot of unnecessary information. 3. Finally the payment of initial amount. The customer should be given options as to how he would like to pay by cheques or by credit card. Once again the amount should be very competitive not very high above the regular rates prevailing in the markets. The smaller and simpler the procedure, the better the process, and the customer will be more satisfied.
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 executives desk, or the location of the place for depositing cheques. It is very necessary
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SERVICE MARKETING IN BANKS that the place be designed in such a manner so as to ensure maximum convenience to the customer and cause no confusion to him. The environment is changing. It is becoming more friendly. Most of the private and foreign banks portray a new welcoming and friendly look to the customer. Flashy cheque books with the name of the account holder printed, imaginative design of bank brochure, statements of accounts with details of transaction are other tangible aspects. Logos, symbols, attractive brand names etc. add to the customers perception of service quality. 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.
Ch.7. ICICI BANK
Overview:
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SERVICE MARKETING IN BANKS ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization*. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its 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 Unites 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. Our UK subsidiary has established branches in Belgium and Germany.
INTRODUCTION: ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. ICICI Bank has total assets of about USD 79 Billion (end-Mar 2007), a network of over 950 branches and offices, about 3500 ATMs, and 24 million customers (as of end July '07). ICICI Bank offers a wide range of banking products and financial services to corporate and retail
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SERVICE MARKETING IN BANKS customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its ADRs are listed on the New York Stock Exchange (NYSE). HISTORY: ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.
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Ch. 8. 7 PS OF MARKETING OF ICICI BANK
Marketing of services by ICICI bank:

1. Product Mix:
i.
Deposits: ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with convenience of networked branches/ over 1800 ATMs and
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SERVICE MARKETING IN BANKS 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.
ii.
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
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iii.
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 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 multichannel 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
iv.
Loan: Home Loans Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans against Securities Farm Equipment Loans Construction Equipment Loans Office Equipment Loans Medical Equipment Loans
v.
Cards:
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Credit Card Debit cum ATM Card Travel Card

vi.
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: lower cost. Dedicated specially trained customer care executives at their call centre, to handle all queries. 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
vii.
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.
viii.
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
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SERVICE MARKETING IN BANKS 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
2. 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.
3. 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
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SERVICE MARKETING IN BANKS suitable place for bank branches. The number of branches OF ICICI: 1900 in India and 33 in Mumbai. LOCATION OF BRANCH: Shivam Shopping Centre, S.V.Road, Opp. New Era Cinema, Malad (W), Mumbai. LOCATION OF ATMS: Malad subway With branch Mindspace Orlem Raheja township They select this place as branch because
The selection significant with
The view poi
The safety an
Convenient to
Infrastructure
Near to statio
Market cover
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4. 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
Telemarketing: ICICI one source Call center (mind
space)
5. 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.
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SERVICE MARKETING IN BANKS 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. 6. 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
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SERVICE MARKETING IN 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.
7. 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
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SERVICE MARKETING IN BANKS Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters) The physical evidences also include signage, reports, punch lines, other tangibles, employees dress code etc. Signage: each and every bank has its logo by which a person can identify the company. Thus such signage is significant for creating visualization and corporate identity. Financial reports: The Companys financial reports are issued to the customers to emphasis or credibility. Tangibles: bank gives pens, writing pads to the internal customers. Even the passbooks, 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.
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Ch. 9. RECENT TRENDS IN ICICI BANK

ICICI Bank, India's largest private sector bank, has contracted with Air2Web India to use their Mobile Internet Platform to provide ICICI Bank customers with wireless access to their banking and credit card accounts. "Our new wireless applications are going to help customers better manage their checking and credit card accounts by allowing them to receive and request pertinent information anytime, anywhere via their digital cell phone," said Ms. Chanda Kochhar, Executive Director of ICICI Bank. "With this wireless service, our customers can keep track of their account balances, as well as request details on how to pay credit card balances, confirm when they have been paid, and receive banking and credit card statements. We feel this value added service will improve our customer service offering." "ICICI Bank has developed a wireless application which enables their customers to get their banking and credit card account information when and where they want it and from their most common wireless device, their digital cell phone," said Sanjoy Malik, President and CEO of Air2Web India. "ICICI Bank has always been known for its use of cutting edge technology. So, it is no surprise that they are launching one of the first wireless banking products to not only incorporate automated notifications of balances of both your credit card and bank accounts, but one that also allows customers to pull timely account information. This new wireless service gives ICICI Bank customers substantially more control and flexibility over their
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SERVICE MARKETING IN BANKS accounts, thus enhancing their customers' experience and another added value which sets ICICI Bank apart from its competitors." Air2Web's Mobile Internet Platform provides businesses with a competitive edge enabling its customers to wirelessly access critical back-end information residing in existing CRM, ERP, SFA or SCM systems. Information can be accessed across any network and with any carrier and via any digital wireless device including Short Message Service (SMS) and web-enabled phones, personal digital assistant devices (PDAs), and pagers. Air2Web's ability to work with multiple data and audio formats streamlines integration with existing applications. The ICICI Bank Credit Cards was launched in January 2000 with three variants Solid Gold, Sterling Silver and True Blue. The card is now available in 36 cities across India. The customer base is over 6.5 million.
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Ch. 10. AWARDS AND RECOGNITIONS

ICICI BANK:-
2009:
ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in Mobile Payments and Banking" by IDRBT, on May 18, 2009 in Hyderabad.
ICICI Bank's b2 branch free banking was adjudged "Best E-Banking Project Implementation Award 2008" by The Asian Banker, on May 11, 2009 at the China World Hotel in Beijing.
ICICI Bank bags the Best bank in SME financing (Private Sector) at the Dun & Bradstreet Banking awards 2009.
An ICICI Bank NRI service wins the Excellence in Business Model Innovation Award in the eighth Asian Banker Excellence in Retail Financial Services Awards Programme. ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event & Experiential Marketing Award in two categories - Rural Marketing programme of the year and Small Budget On Ground Promotion of the Year. These awards were given for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on the move campaign' respectively. ICICI Bank's Germany Branch has been certified by Stiftung Warrentest. ICICI Bank is ranked 2nd amongst 57 savings products across 19 banks ICICI Bank Germany won the yearly banking test of the investor magazine uro in the call money category. The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence and Excellence Award for Asia Pacific for its Business Intelligence functions.
ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008 certification by TUV Nord. The scope of certification comprised processes around consulting and capability building on methods of quality & improvements.
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ICICI Bank has been awarded the following titles under The Asset Triple A Country Awards for 2009: Best Transaction Bank in India Best Trade Finance Bank in India Best Cash Management Bank in India Best Domestic Custodian in India
ICICI Bank has bagged the Best Cash Management Bank in India award for the second year in a row. The other awards have been bagged for the third year in a row. ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. The award was given to ICICI Bank its long-standing support to this unique training centre for people who are deaf-blind.
ICICI Bank wins World Finance 2009 Banking Awards for Best NRI Services bank.
ICICI Bank wins Asset Triple A Investment Awards for the Best Derivative House, India. In addition ICICI Bank were Highly commended, Local Currency Structured product, India for 1.5 year ADR GDR linked Range Accrual Note.
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Ch. 11. CONCLUSION

Change is a continuous process and banking industry is no exception to this law which is natural. Due to the implementation of the financial sector reforms and policies for the country change in the banking industry is inevitable. After liberalization and globalization process that was initiated in 1991, the Indian banking industry has undergone tremendous transformation. These changes have forced the Indian banking industry to adjust the product mix and to remain competitive in the globalised environment. The following are some of the vital challenges that threaten the Indian banking industry: Competition from foreign banks and now new private sectors banks
Technological advancement Innovation Diversified Activities Customer Awareness and Satisfaction Development of skills of Banks Personnel Profitability Nature Corporate Governance In order to survive and succeed the domestic banks must identify their marketing areas, develop adequate resources, convert these resources into efficient services and distribute them effectively so that the customers are satisfied. ICICI Bank today services a growing customer base of more than 5 million customer accounts and 5 million bondholders accounts through a multi-
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SERVICE MARKETING IN BANKS channel access network. This includes over 400 branches and extension counters, 1080 ATMs, call centers and Internet banking. Bank renders personalised services and the present emphasis in marketing is customer satisfaction. The customer satisfaction, which must be the ultimate goal of bank marketing, is achieved not only through creating suitable products according to his need but also through delivering them in a most satisfying manner. In spite of the changing banking environment and newer challenges emerging, Service Marketing by ICICI Bank will continue to remain popular.
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Ch.12. BIBLIOGRAPHY
BOOKS REFERRED
1] Service Marketing By P.K. Gupta 2] Bank Marketing By Umesh C. Patnail 3] Marketing in Banking and Insurance By Romeo S. Mascarenhas
WEBLIOGRAPHY
www.icicibank.com www.scribd.com www.marketingteacher.com www.google.com
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SERVICE MARKETING IN BANKS

Ch.1. INTRODUCTION TO THE BANKING IN INDIA

SERVICE MARKETING IN BANKS

b) Magazines c) Journals d) Newspapers

Ch.3. PEST ANALYSIS

SERVICE MARKETING IN BANKS

IMPORTANCE OF SEGMENTATION: Instrumental

Helpful to the policy planners: In addition, the policy makers also

SERVICE MARKETING IN BANKS

Ch. 5. MARKETING OF BANKING SERVICES

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

THE MOST FAVORABLE PRICING STRATEGY

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

Different Ways of Promotion

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

INTERNAL MARKETING (ENABLING THE PROMISES)

EXTERNAL MARKETING (MAKING THE PROMISES)

SERVICE MARKETING IN BANKS

EMPLOYEES (KEEPING THE PROMISES)

Ch.7. ICICI BANK

SERVICE MARKETING IN BANKS

Ch. 8. 7 PS OF MARKETING OF ICICI BANK

Marketing of services by ICICI bank:

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

Credit Card Debit cum ATM Card Travel Card

a day, 7 days a week through Internet Interactive Voice Response (IVR) at a

The selection significant with

The view poi

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

Ch. 9. RECENT TRENDS IN ICICI BANK

SERVICE MARKETING IN BANKS

Ch. 10. AWARDS AND RECOGNITIONS

SERVICE MARKETING IN BANKS

SERVICE MARKETING IN BANKS

Ch. 11. CONCLUSION

SERVICE MARKETING IN BANKS

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