Chapter 1 –

Overview of BANKING MARKETING

MARKETING CONCEPT

A situation where buyers and sellers of a commodity or service interact.Coming together of buyers and sellers of the same or similar commodities

TYPES OF MARKET

Geographical Area Product/ Service Nature of Transaction Volume of Transaction

MARKETING

Marketing is the process of determining consumer demand for a product or service, motivating its sale and distributing it into ultimate consumption at a profit

A management function A Business Philosophy

EVOLUTION OF MODERN MARKETING

Industrial revolution Digital revolution Barter System Customer and market driven Wants of customers CRM Customer Satisfaction Nothing is worthwhile unless it

touches the customer

MARKETING VS SELLING

MARKETING MANAGEMENTA process of planning and executing the conception, pricing , promotion and distribution of goods and services and ides to create exchanges with target groups that satisfy customer and organizational objectives.

FUNCTIONS OF MARKETING MANAGEMENT

Analysis Planning Implementation Control

SERVICE

A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It’s production may or may not be tied to physical product.

IMPORTANCE OF MARKETING FOR BANKS

The relevance of aggressive marketing in banks has come to the fore as never before - .

CHARACTERISTICS OF SERVICES Intangibility ex. Food ordered,

college education, cleaner services Inseparability- product and

service go together, customer is part of the product

Heterogeneity or Variability- differences in level of service, food servers, receptionist service

Perishability ex. Air flights, concert, sports match

S.No.S.No. Physical GoodsPhysical Goods ServicesServices1.1. TangibleTangible IntangibleIntangible2.2. HomogeneousHomogeneous HeterogeneousHeterogeneous3.3. Product and distribution Product and distribution

separated from separated from consumptionconsumption

Production, distribution Production, distribution and consumption re and consumption re simultaneous processsimultaneous process

4.4. A thingA thing An activityAn activity5.5. Core value produced in Core value produced in

factory factory Core value produced in Core value produced in buyer-seller interactionbuyer-seller interaction

6.6. Customers do not Customers do not participate in the participate in the production processproduction process

Customers participate in Customers participate in productionproduction

7.7. Can be kept in stockCan be kept in stock Cannot be kept in stockCannot be kept in stock8.8. Transfer of ownershipTransfer of ownership No transfer of ownershipNo transfer of ownership

MARKETING OF FINANCIAL SERVICES

Intangibility, inseparability and heterogeneity are manifested at both strategic and tactible levels in services marketing. Marketing strategy provides the organisation with a sustainable competitive advantage in the markets it operates.Organization should understand consumer needs and identifies how those consumers should be grouped into different market segments.Product attributes, pricing decisions, methods of distribution and communication should all seek to reflect the chosen position.

BANKING MARKETING Provides services Aimed to satisfy customer’s needs and

wants Needs and wants may be non financial

in nature Competitive element, efficiency and

effectiveness Organizational objectives are still the

driving forceCommercial objective to make

profitSocial Objectives

Essentials for a Banks SuccessCannot exist without customerCreate, win and keep customersOrganizational design should be

oriented to the customerDeliver total satisfaction to the

customer Customer satisfaction is affected by

the performance of all the personnel of the bank.