Marketing of Bank Products Emerging Challenges Strategies (1)

8/13/2019 Marketing of Bank Products Emerging Challenges Strategies (1)

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Marketing Of Bank Products Emerging Challenges & Strategies

'Sandhya /-mari Singh #alla%ee Shri%as&a%a

(shish nand 1ri$a&hi

rof. Usha /iran Rai

A$stract

Since the inception of globalization in India, banking sector has undergone various changes.

Encouragement to foreign banks and private sector banks increased competition for all

operators in banking sector. Under this development Indian public sector banks need to

reinvent the marketing strategy for their rapid growth. This paper acknowledges with samelimitation that private sector banks marketing strategies are uite betterthan our public sector

banks and foreign banks.!n the basis of performance of deposits " advances the growth is

much better in private banks. The paper also suggests some strategies for the

enhancement of bank marketing. !nly those banks will survive in the future which willadopt effective and realistic strategies to win the trust of the customer.

Key%ords2 Ban3 Mar3e&ing, 4-s&omer, 4hallenges and S&ra&egies.

ntroduction' f&er &he ban3ing sec&or reforms, mar3e&ing has de%elo$ed as a morein&egra&ed f-nc&ion 5i&hin financial ser%ice organi6a&ions li3e ban3s largely as a res-l& of

ra$id changes in &he o$era&ing en%ironmen&. Ban3 Mar3e&ing is defined as an aggrega&eof f-nc&ions direc&ed a& $ro%iding ser%ices &o sa&isfy c-s&omers7 financial needs and

5an&s, more effec&i%ely &han &he com$e&i&ion, 3ee$ing in %ie5 &he organi6a&ional

obec&i%es of &he ban3. Ban3 mar3e&ing has become a %ery com$le9 ye& in&eres&ings-bec& as i& re:-ires &he 3no5ledge of economics, sociology, $sychology, ban3ing andalso core mar3e&ing conce$&. ;n mar3e&ing, i& is &he c-s&omer 5ho has &he -$$er hand.

1he man&ra of effec&i%ely mar3e&ing ban3 $rod-c&s lies in &he sys&ema&ic and $rofessional

a$$roach &o5ards sa&isfying c-s&omers7 needs.

Product and Service'rod-c& and ser%ice are &he 5ords -sed in&erchangeably in ban3ing $arlance. 1he ban3$rod-c&s are de$osi&, borro5ing or o&her $rod-c&s li3e credi& cards or foreign e9change

&ransac&ions 5hich are &angible and meas-rable 5hereas ser%ice can be s-ch $rod-c&s

$l-s &he 5ay


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(ifferent Products and Services' Some of &he $rod-c&s and ser%ices of ban3ing sec&or

are gi%en belo52

(e!osits Ban3s acce$& &he de$osi&s of &he $-blic. ;n order &o a&&rac& &he sa%ings of &he

$eo$le, &he ban3 $ro%ides e%ery sor& of facili&y and ins$ira&ion &o &hem and collec&s &he

sca&&ered sa%ings of &he socie&y. 1he ban3 o$ens an acco-n& of &hose $eo$le 5ho de$osi&&heir sa%ings 5i&h &he ban3. 1hese de$osi& acco-n&s can mainly be of &hree &y$es and

$eo$le can o$en any of &hese &hree &y$es of acco-n&s according &o &heir 5ish. 1hese

acco-n&s are c-rren& acco-n&, sa%ing ban3 acco-n&, fi9ed de$osi& acco-n&.

)oans= 1he ban3 -s& don7& 3ee$ 5i&h &hemsel%es &he de$osi&ed amo-n& of &he $eo$le,

ra&her &hey ad%ance &hem in &he form of loans &o &he b-sinessman and en&re$rene-rs, -s&

&o earn $rofi&s for &heir $ar&ners. 1he loaner 3ee$s some gold, sil%er, fi9ed and %ariableasse&s in &he form of sec-ri&y 5i&h &he ban3.

)ocker *acilities +For &he safe&y of yo-r %al-ables 5e offer o-r c-s&omers safe de$osi&

%a-l& or loc3er facili&ies a& a large n-mber of o-r branches. 1here is a nominal ann-alcharge, 5hich de$ends on &he si6e of &he loc3er and &he cen&re in 5hich &he branch is

loca&ed.

nternet Banking) ;n&erne& ban3ing enables re&ail ban3ing c-s&omers &o o$era&e &heir

acco-n&s from any5here, any&ime, remo%ing &he res&ric&ions im$osed by geogra$hy and&ime. ;&>s a $la&form &ha& enables &he c-s&omers &o carry o-& &heir ban3ing ac&i%i&ies from

&heir des3&o$, aided by &he $o5er and con%enience of &he ;n&erne&.

#eal ime ,ross Settlement System -#,S. + n elec&ronic $aymen& sys&em in 5hich$aymen& ins&r-c&ions be&5een ban3s are $rocessed and se&&led indi%id-ally and

con&in-o-sly, on a real &ime basis, &hro-gho-& &he day.

(e$it Card+ n elec&ronic card iss-ed by a ban3 5hich allo5s ban3 clien&s access &o

&heir acco-n& &o 5i&hdra5 cash or $ay for goods and ser%ices. 1his remo%es &he need forban3 clien&s &o go &o &he ban3 &o remo%e cash from &heir acco-n& as &hey can no5 -s& go

&o an 1M or $ay elec&ronically a& merchan& loca&ions.

Marketing A!!roach to Banking Services'Ban3ing is a $ersonali6ed ser%ice orien&ed ind-s&ry and hence sho-ld $ro%ide ser%ices

5hich sa&isfy &he c-s&omers 7needs. 1he mar3e&ing a$$roach in%ol%es an&ici$a&ing,iden&ifying, reci$roca&ing ?&hro-gh designing and deli%ering c-s&omer)orien&ed ser%ice,

and sa&isfying &he c-s&omers> needs and 5an&s effec&i%ely, efficien&ly, and $rofi&ably.

;& can be said &ha& &he e9is&ence of &he ban3 has li&&le %al-e 5i&ho-& &he e9is&ence of &he c-s&omer.

1he 3ey &as3 of &he ban3 is no& only &o crea&e and 5in more and more c-s&omers b-& also &o re&ain

&hem &hro-gh effec&i%e c-s&omer ser%ice. Mar3e&ing as rela&ed &o ban3ing is &o define an

a$$ro$ria&e $romise &o a c-s&omer &hro-gh a range of $rod-c&s and ser%ices and also &o ens-re

effec&i%e deli%ery &hro-gh sa&isfac&ion. 1he ac&-al sa&isfac&ion deli%ered &o a c-s&omer de$ends

-$on ho5 &he c-s&omer is in&erac&ed 5i&h. ;& goes on &o em$hasis &ha& e%ery em$loyee from &he

&o$mos& e9ec-&i%e &o &he -nior mos& em$loyee of &he ban3 sho-ld be mar3e&ing orien&ed.


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(iscussion and Suggestions'

9ature of marketing activities in the $anking industry !re and !ost li$erali>ation'

glance a& &he &able ' re%eals &ha& &here is a lo& of difference in &he na&-re of mar3e&ing in &he

ban3ing ind-s&ry before and af&er ban3ing reforms. Many ne5 $rod-c&s ha%e been in&rod-ced.

No5 all &he 5or3 is done by &echnological &ools. Many e)deli%ery channels li3e 1M, credi&

card, M)ban3ing, 1ele)ban3ing, ;)ban3ing ha%e come in&o e9is&ence. No5 ban3s &a3e $rofi& in&oconsidera&ion ra&her &han $rice. 4-s&omer 5as sla%e &o &he ban3 before liberali6a&ion b-& no5 he

has become &he 3ing of &he ban3. 4-s&omer can ge& feedbac3 as $er his o5n 5ish.

a$le 2' 9ature of Com!etition in the Banking ndustry Pre and Post li$erali>ation'

ndicator Pre+ li$erali>ation Post+li$erali>ation

4-s&omer Ser%ice Manda&ed by commi&&ee

re$or&s and la5

4onscio-sly $rac&iced as a

5ay of ban3ing

4-s&omer feedbac3 Gone based on reg-la&or7s

g-idelinecom$lain&


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a$le 0' Performance Parameters of Pu$lic/ Private Sector and *oreign Bank ,rou!

Paramete

rs

,r ,r ,r

2::? 0122 ,ro%th

@

2::

?

0122 ,ro%th

@

2::

?

0122 gro%th

@

(e!osits #"(#+

(!#*8

+

'+"' '+

+

'00#!+

*

"(*( #08!

+

#0"8

*

'0+(

Advances '+(880

((0+"(

#

#08 80'# !*!+( *8++ '0((

'*++(

*

'!!

So-rce2 Re$or& on 1rend and rogress of Ban3ing in ;ndia '**( and #0'' RB;, M-mbai.

Challenges of Bank Marketing1he im$ro%emen& of o$era&ional and dis&rib-&ion efficiency of ban3s has al5ays been an

iss-e for o%ernmen& of ;ndia ?A; in cons-l&a&ion 5i&h RB;. Ho5e%er, &he economicrise of '**0s ga%ebir&h &o &he ne5 economic macro le%el &hin3ing &o im$ro%e &he

economic heal&h of &he ;ndian economy. Financial sec&or reforms, $ar&ic-larly ban3ing

sec&or, ga%e ne5 so-ndand heal&hy direc&ion &o &he ;ndian economy. Vario-s challenges

ha%e &a3en $lace &o &ac3le &he $roblemD some of &hem are gi%en belo52

Com!etitive Environment

1he Foreign Ban3s and Ne5 ri%a&e Sec&or Ban3s ha%e 5i&nessed a significan& gro5&hb-& on &he o&her side, -blic Sec&or Ban3s are a& &he edge of s-r%i%al among &hem 5i&h

h-ge ca$i&al base, la&es& &echnology, inno%a&i%e and globally &es&ed $rod-c&s


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Customer *ocus & A%areness

1he ban3s re:-ire im$ro%ing on $ro%iding ser%ices and $rofi&abili&y efficiency ofser%ices. 1he ban3s ha%e &o e9$lore o-& fas&es& and efficien& means of $ro%iding ser%ices

5i&h &he -se of ;1 a$$lica&ions, &eleban3ing, in&erne& ban3ing and im$ro%ing deli%ery

sys&em by im$ro%ing &he a&&i&-de and beha%ior of &he s&aff also. 4-s&omer a5areness is alsoa challenge before &he ban3s. Ban3 can mar3e& &heir $rod-c&s and ser%ices by gi%ing &he $ro$er

3no5ledge abo-& &he $rod-c& &o c-s&omer or by a5arding &he c-s&omer abo-& &he $rod-c&s. Ban3

sho-ld li&era&e &he c-s&omers.

Strategies for the enhancement of $ank marketing';n &he fierce com$e&i&i%e mar3e&, needs of c-s&omer 3ee$ changing. Hence, o-r mar3e&ing s&ra&egy

m-s& be dynamic and fle9ible &o mee& &he changing scenario. Here are s&e$s &ha& form s-ccessf-l

and effec&i%e mar3e&ing s&ra&egy for ban3 $rod-c&s.

Marketing Strategies

1he ban3s are re:-ired &o de%ise s-i&able mar3e& s&ra&egies &o a-gmen& &he %ol-me of

b-siness le%el. So, &he ban3s sho-ld research on &he %as& 3no5ledge &hey ha%e abo-& &hecons-mer, de%ise abo-& s$ecific $rod-c&s for s$ecific segmen&s, differen&ia&e according

&o cons-mer $o&en&ials and i&s e9$ec&a&ions, and foc-s on fe5 $o&en&ial c-s&omers 5i&hc-s&omi6ed $rod-c&s and ser%ices ra&her &han ser%ing all c-s&omers 5i&h -ni%ersal

$rod-c&s. Using 4-s&omer Rela&ionshi$ Managemen& ?4RM, a$$oin&men& of yo-ng

em$loyees 5i&h fresh and crea&i%e minds 5i&h e9$er&ise in la&es& &echnology, as a ma&&erof choice is desirable &o s-r%i%e in &he globalised mar3e&.

Effective Branding

Man is a b-ndle of sen&imen&s and emo&ions. 1his can effec&i%ely be hel$f-l in branding o-r

$rod-c&s. 4onsidering &he fea&-res of $rod-c&s and &arge& gro-$ of c-s&omers, &he $rod-c& can be

effec&i%ely branded so as &o so-nd i& ca&chy and a$$ealing. Some $ro%en e9am$les are $na

har, Ghan Ja9mi, /-ber, Fle9i Ge$osi&, Smar& /id, Sa$ney, Vidya e&c. 1he branding sho-ld be

done in s-ch a 5ay &ha& &he brand name m-s& a&&rac& &he a&&en&ion of &he &arge& gro-$ and &he

salien& fea&-re of &he $rod-c& sho-ld resemble brand name. ll &he $romo&ional cam$aigns sho-ld

refer &he $rod-c& by i&s brand name only so &ha& &o s&ri3e &he same in &he c-s&omer7s mind.

mage $uilding

1he SBs sho-ld s&ar& on massi%e scale &he image)b-ilding e9ercise. 1he ban3s sho-ld

foc-s &heir a&&en&ion on crea&ion of s-ch an o-&5ard loo3 &ha& i& feels li3e any&hingen&ering &he ban3. 1he regen& of &he ban3 sho-ld be -ser)friendly 5i&h good :-ali&y

f-rni&-re and o&her a&&rac&i%e infras&r-c&-re.

Products for omen1he na&ional $ers$ec&i%e $lan for 5omen s&a&es &ha& mos& of 5omen 5or3ers are engaged in &he

agric-l&-re and allied ac&i%i&ies li3e dairy, animal h-sbandry, seric-l&-re, handloom, handcraf&s

and fores&ry. Ban3s sho-ld do some&hing &o im$ro%e &heir access &o credi& 5hich &hey re:-ire.

Advertisement

d%er&isemen& is an eminen& $ar& of mar3e&ing of ban3 $rod-c&s. d%er&isemen& sho-ld be s-ch

&ha& a$$eals &o$eo$le. ;& sho-ld no& follo5 &he or&hodo9 $a&&ern of narra&ing a $rod-c&. For

effec&i%e ad%er&isemen&, ban3 sho-ld -nders&and $eo$le7s &as&es and choices.


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Marketing of Bank Products Emerging Challenges Strategies (1)