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 MANAGEMENT A 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. Physical Goods Services 1.TangibleIntangible 2.HomogeneousHeterogeneous 3. Product and distribution separated from consumption Production, distribution and consumption re simultaneous process 4. A thing An activity 5. Core value produced in factory Core value produced in buyer-seller interaction 6. Customers do not participate in the production process Customers participate in production 7. Can be kept in stock Cannot be kept in stock 8. Transfer of ownership No 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 force Commercial objective to make profit Social Objectives

Essentials for a Banks Success Cannot exist without customer Create, win and keep customers Organizational design should be oriented to the customer Deliver total satisfaction to the customer Customer satisfaction is affected by the performance of all the personnel of the bank.