marketing mix the challenge in Indian banking sector

1. Marketing mix the challenge
in Indian Banking Sector
Dr. Tushar Chaudhari,
Assistant professor,
Seth Kesarimal Porwal College, Kamptee

2. Objectives
 To study the concept of marketing mix
for Indian banks.
 To study how marketing mix is done in
Indian banks.
 To give appropriate suggestions in this
regard.

3. Structure of Indian Banking
Sector

4. Indian banking Sector will be the
third highest in the world by 2025
Source: BANCON 2012

5. Market Share of banks
67.2
18.7
6.5
2.7
3.4
1.5
Public sector Banks
Private sector Banks
Foreign Banks
Regional Rural Banks
Rural and urban
cooperative banks
Local Area Banks
Source :- RBI

6. Future of Indian Banking
sector
 Mortgages to cross Rs 40 trillion by 2020
 Wealth management will be big business with 10X
growth
 The number of branches to grow 2X; ATMs to
grow 5X
 Mobile banking to see huge growth
 Customer Relationship Management (CRM)
 Banking margins will come under pressure
 New models to serve the Small and Medium
Enterprises
 pradhanmantri Jan Dhan Yojna by which Banks
have opened 7.73 crore accounts

7. Major before Challenges Indian
banking sector
 Modified new rules
 Efficiency
 Diffused customer loyalty

8. Marketing Mix

9. Marketing Mix
Product
Price
Place
Promoti
on
Place
People
Physical
evidenc
e
(Tangibil
ity )

10. Marketing mix
Product
• significant to maintain the commercial viability
• need frequent innovations
Price
• important factor of bank marketing mix due numerous players in
the industry
• improved performance, function, services, reliability, promptness
for problem solving and of course, higher rate of return
Place
• where and when to make a product available
• bank branches near to their official area or the place of easy
access.

11. Marketing mix
Promotion
• marketing of reliability and faith of the people
• Word of mouth publicity, reliability showing through long
years of establishment and other services.
Physical
Distribution
• Tangible indicators in the physical environment of a
service firm
• Consumers look at tangible elements and assume about
the service firm and its performance.
People
• Customers and employees participation.
• Customers can't be separated from the production
process of service firms

12. Marketing mix
Process
• How services are being
delivered by service
organization.
• If customer does not
have sufficient time, he
seeks bank that provides
effort and time saving
banking services.

13. Strategies to cope up with the marketing
mix
 The marketing research
 external sources
 opinion surveys
 feed back from customers,
 To make multidimensional changes in
the services mix can be made
productive if it is based on marketing
research.

14. Findings
 The formulation of marketing mix is
substantially influenced by the emerging
trends in the national and international
scenario.
 Technology plays a vital role in
formulating the marketing mix for Indian
banks.
 The GDP, per capita income,
expectation, the rate of literacy, the
geographic and demographic
Considerations are the other important
parameters.

15. Suggestions
 The banks should Focus on ensuring
reliable service delivery through
Investing on and implementing right
technology
 The banks must leverage the branch
networks and sales structure to
mobilize low cost current and savings
deposits.
 The banks has General users and
industrial users. The banks must

16. Suggestions
 To survive, bankers will have to develop
entirely new revenues, driven by
radically different products and services
offered to totally new markets and
customers.
 we need community based marketing not
just through print, television and print
media.
 Beyond promoting the product and
services marketing will need to enhance
the financial literacy among the people.
Such credit counseling services

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