1. JAIIB/DB&F-Principles & Practices of Banking
– Module D- Support Services – Marketing of Banking Services
- Ms.Neha Gupta

2. MARKETING CONCEPT
Market
A situation where buyers and sellers of a commodity interact.
Coming together of buyers and sellers of the same or similar commodities
TYPES OF MARKET
Geographical Area
Product
Nature of Transaction
Volume of Transaction

3. 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

4. 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

5. 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

6. IMPORTANCE OF MARKETING FOR INDIAN BANKS
"The relevance of aggressive marketing in banks has come to the fore as never before" - M N Goiporia.
CHARACTERISTICS OF SERVICES
Intangibility
Inseparability
Heterogeneity
Perishability

7. 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.

8. Physical Goods Services
S.No.
Physical Goods
Services 1.
Tangible
Intangible 2.
Homogeneous
Heterogeneous 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

9. MAREKTING 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.

10. BANK 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

11. 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.

12. MARKETING MIX
Key concept in the modern marketing
Considered to be core of marketing
It is the set of tools that the firm uses to pursue its marketing objectives in the target market
Decisions must be made for both the distribution channels and the final consumers

13. Marketing Lessons OLD New Product Consumer Price Cost Convenience
Place
Promotion
Communication

14. Services Marketing Mix – 7P’s
Wining companies are those that can meet customer needs economically and conveniently and with effective communication
Services Marketing Mix – 7P’s
Product, Price, Place, Promotion, People, Physical evidence, Process

15. PRODUCT
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
PRODUCT PERSONALITY
THE CORE
THE ASSOCIATED FEATURES
THE BRAND NAME & LOGO
THE PACKAGE AND LABEL

16. PRODUCT LEVELS
Core benefit, basic product, expected product, Augmented product and Potential product.
PRODUCT CATEGORY
Durability, tangibility and use
Product item, Product Line, Product mix
Banking product

17. PRODUCT PLANNING
The process of product planning consists of determining the strategies in respect of various elements. Product Line, Product Mix, Branding, Packaging and New product development.
PRODUCT LIFE CYCLE
Introduction, Growth, Maturity, Decline
The product Life cycle operates at three levels product level, product sub category, brand level.

18. WEAKNESS OF PLC CONCEPT
Undefined concept
No uniform shape
Unpredictable turning points
Unclear implications
PRODUCT STRATEGIES
Strategies based on Product Mix
Strategies based on Product Life Cycle

19. PRODUCT MODIFICATION
Quality Improvement
Feature Improvement
Style Improvement
PRODUCT ELIMINATION
GROWTH STRATEGIES
Intensive
Integrated
Diversification

20. NEW PRODUCT DEVELOPMENT Idea Screening Concept Testing
Test Marketing
Commercial Launch
DIVERSIFICATION
Concentric Diversification – technologically related but the target customers are entirely different
Horizontal Diversification - technologically unrelated but the target customers are same
Conglomerate Diversification – no relationship with the existing product

21. BRANDING
Line Extension
Brand Extension
Multi brands
New Brands
PACKAGING
Primary Package
Secondary Package
Shipping Package
LABELLING
Identify the product or brand
Describing information
Promoting the product through 'attractive graphics'

22. PRICING
Price is the sum value of all the values that consumers exchange for the benefits or having or using the product or service
Different forms - Goods bought, hire charges, tuition fees
Dynamic Pricing - Varying prices
Flexibility

23. OBJECTIVE OF PRICING
Profit
Survival
Market Share
Cash Flow
Status Quo
Product Quality
Communicating Image
Short term/Long term
FACTORS INFLUENCING PRICING
The Customer's Demand Schedule
The Cost Function and
Competitors Prices

24. Absorption cost Pricing Target Return Pricing Marginal cost Pricing
PRICING METHODS
Mark up Pricing
Variable costs and contribution for fixed costs
Absorption cost Pricing
margin for profit
Target Return Pricing
Return on the investment
Marginal cost Pricing
Direct variable costs are fully realized
Only a portion of fixed costs may realized
Perceived Value Pricing
Buyer’s perception of value
Value Pricing
Product with high value at a fairly low price
Going Rate Pricing
Based on competitor’s prices

25. PRICING METHODS (Contd..)
Auction Type Pricing
English Auctions
One seller many buyer
Dutch Auctions
Sealed Bid Auctions
Group Pricing.

26. Pricing Strategies Geographical pricing Price discount and allowances
Psychological pricing
Promotional pricing
Loss-leader pricing
Loss is covered by sale of other items
Special event pricing
Cash rebates
Low-interest financing
Longer payment terms
Warranties and service contracts
Psychological discounting

27. Pricing Strategies (Contd.) Discriminating pricing
First degree
different prices to each customer depending upon their intensity of demand
Second degree
Lower prices for buyers of a larger volume
Third degree
Customer groups – student, senior citizen
Product form
Image pricing
Channel
Location
Time

28. Pricing Strategies (Contd.) Product-mix pricing
Product line pricing –developing product line
Captive-product pricing – main product at lower price, ancillary product at higher price
Two-part pricing – split into fixed and variable component
By-product pricing – by-products obtained in production of other products
Product-bundling pricing
Market skimming pricing
Market-penetration pricing

29. Distribution
Distribution channel
Marketing channels are sets of independent organizations involved in the process of making a product or service available for use of consumption.

30. Functions of distribution channels
Market information
Promotion
Contact
Matching
Negotiation
Product information
Physical distribution
Financing

31. Channels types
Channel 1, Channel 2, Channel 3, Channel 4,
Factor influencing channel section
Product characteristics
Perishable products
Consumer durables
Industrial products
Market characteristics
Customer characteristics
Company resources
Competition
Product lines

32. Channels for banking products Intangibility Inseparability Variability
Perishability
Client relationship
Branches
Other channels
Tele-banking
ATMs
Computerization
Plastic Cards
Virtual branches and automated video banking

33. Intermediaries in banking services
DSA
Automobile Dealers
Merchant establishments
Physical distribution
Transportation
Warehousing
Inventory
Tasks of physical distribution
Forecasting
Order processing
Inventory management
Storage
Protective packaging

34. Promotion
Role of promotion
Persuasion
Inform
Reminding
Reinforcing

35. Promotion mix Blended Mix of Promotion Tools Personal selling
Advertising
Public
Relations
Sales
Promotion
Direct
Marketing

36. Promotion mix strategies
Push strategy -Retailer
Pull strategy - Customer
Factors influencing promotion mix
Types of product/market
Buyer’s readiness stage
PLC stage
Promotion mix integration

37. Marketing Information System (MIS)
Features of MIS
Master Plan
Coordination
Future Orientation
Computerized Environment
Analyse Quantitative Information
Regular flow of Information

38. Functions of MIS
Collecting and assembling data
Processing of data
Analysis of data
Storage of data
Discrimination of information

39. Need of MIS
Complex marketing activity
Knowledge /information explosion
Communication gap
Prompt decision
Non-price competition

40. Kinds of information needed
Information about market forces
Information about the bank’s market behaviour
Internal information
Components of MIS
Internal marketing information
Marketing intelligence system
Marketing research system
Advantages of MIS

41. Q
? ueries