2. A Bank is a financial institution and
a financial intermediary that
accepts deposits and channels those
deposits into lending activities, either
directly or through capital markets. A
bank connects customers that have
capital deficits to customers with capital
surpluses.

3.  The banking industry in India has a huge canvas
of history, which covers the traditional banking
practices from the time of Britisher’s to the
reforms period.
 Nationalization to Privatization of banks and
now increasing numbers of foreign banks in
India. Therefore, Banking in India has been
through a long journey.
 Banking industry in India has also achieved a
new height with the changing times. The use of
technology has brought a revolution in the
working style of the banks.

4.  Bank of Hindustan was set up in 1870.
 Later, three presidency banks under Presidency
Bank's act 1876 were setup.
 In 1921, all presidency banks were amalgamated
to form the Imperial Bank of India.
 Reserve Bank of India Act was passed in 1934 &
Reserve Bank of India (RBI) was constituted as an
apex body.
 In 1955, RBI acquired control of the Imperial Bank
of India, which was renamed as State Bank of
India.

5.  Due to the process of liberalization
,Globalization, Privatization and reform of the
financial sector, banking sector has undergone
major transformation.
 Banks are extremely useful and indispensable in the
modern community.
 The banks create the purchasing power
 The banks have played substantial role in the growth
of Indian economy.
 Use of information Technology and Internet.

6.  Technological Environment.
 Economical Environment
 Political / Legal Environment
 Social Environment

8.  Definition:
Typical manner in which
consumer purchase goods or services in
terms of amount, frequency, timing ,etc.

9.  Why consumer make the purchase?
 What factors influence their product?
 Changing factors in our society?

10.  Today’s customer are short of time and they
get uncomfortable when the process is
lengthy.
 Very simple and should be at the minimum
and one time go.
 Repeated info and excessive documentation
dis-satisfy the customer.

11.  Effortless, simple, secure and efficient
channel.
 EX: a customer uses internet banking
 He knows what are his payment
instructions and he can track the payment
online.
 If this facility is not available, he may not
be comfortable with internet.

12.  Need recognition
 Info search
 Evaluation of alternatives
 Purchase
 Consumer experience
 Post-exp evaluation

14.  This concept says that the customers will buy
those products which are available, offer
most qualities, performance and features.
 The customers will select the solution that
meets their need most effectively.
 It is often difficult to identify the exact
market within which a firm competes.

15.  This concept is introduce by:
“ Theodore leavitt “
 He says a product is like a onion in that there
are many layers of offering.
 There is a saying:
“Customers don’t buy
product, they buy benefits!!”

16.  Core products
 Formal products
 Augmented products
 Potential products
 Futuristic products

17. Contest
winners free
deposits,
Future Product Offers for
discounts
Portfolio mgmt
,Mutual
Fund,Insurance
Depositin
g,
Augmented Safety
product
lockers,D.
D
Loans,
Formal product
Deposit
s
Core product

20.  Organizations that seek to provide
consistently high levels of service excellence
will continuously work to align the three sides
of the triangle.
 Aligning the sides of the triangle is an
ongoing process.

21.  This model shows the three marketing functions
important for service firms
 These three marketing functions are internal
marketing, interactive marketing and external
marketing.
 According to Grönroos,…
 the internal marketing has to be managed by the
company’s leadership,
 the interactive marketing happens between the
employees and the clients and
 the external marketing is what takes place between
the company’s management and the clients.

22.  Understanding customer needs
 Managing expectations
 Traditional marketing communications
 Sales and promotion
 Advertising
 Internet and web site communication

23.  Service delivery
Reliability, responsiveness, empathy, assuran
ce,
tangibles, recovery, flexibility.
 Face-to-face, telephone & online
interactions.
 The Customer Experience.
 Customer interactions with sub-contractors
or business partners.
 The “moment of truth”.

24.  Hiring the right people.
 Training and developing people to deliver
service.
 Employee empowermen.t
 Support systems.
 Appropriate technology and equipment.
 Rewards and incentives.

25. Way to Use Service Marketing
Triangle
 Overall Strategic  Specific Service
Assessment Implementation
 What is being
 How is the service promoted and by
organization doing whom?
on all three sides of  How will it be
the triangle? delivered and by
whom?
 Where are the  Are the supporting
weaknesses? systems in place to
 What are the deliver the promised
strengths? service?

27. Core product:
The basic services in banking form a basic product
Eg: Accepting deposits, granting loans
 Formal product:
It is the set of attributes and conditions expected by
the customers when they purchasr the product
Eg: Insurance facilities, locker facilities, atm’s

28.  Augmented product:
It is the additional feature that banks provide which
exceeds the customer’s expectations
Eg: Discounts, Good waiting rooms
 Potential product:
It includes Innovations and product differentiation.
Banks alters its services according to the
requirement of the individual customers
Eg: Mobile and internet banking, new schemes
tailored for specific customers

29.  Interest rates charged
 Transaction charged
 Value pricing
 Going rate pricing
 Mark up pricing
 Charges for cheque books
 Commmission charges

30. Important factors affecting the determination
of the location of bank are:
 The trade area
 Population characteristics
 Commercial structure
 Industrial structure
 Visibility
 Access

31.  Public relations
 Personal selling
 Word of mouth promotion
 Internet
 Tele marketing

32. It refers to the overall layout of the place i.e.
how the entire bank is designed. Physical
evidence refers to all those factors that
makes process much easier and smoother.
Eg: In banks the physical evidence would be
the placement of customer service
executive’s desk or the location of the place
for deposting cheques.

33.  Process constitutes the overall procedure
involved in using the services offered by the
bank.
 The process should be customer friendly
 If the overall process is too complicated than
the customer may not be inclined to use such
services

35.  INTANGIBILITY
 PERISHABILITY
 VARIABILITY
 INSEPARABILITY
 HETEROGENOUS
 TRANSFER OF OWNERSHIP NOT POSSIBLE

37.  The concept of market segment is based on
the fact that the market of commodities are
not homogeneous but they are
heterogeneous. Market represent a group of
customer having common characteristics but
two customer are never common in their
nature, habits, hobbies income and
purchasing techniques.

38.  According to Philips Kotler, “Market
segmentation is sub-dividing a market into
distinct and homogeneous subgroups of
customers, where any group can conceivably
be selected as a target market to be met with
distinct marketing mix.”

39.  Identity: The members should be divided into
various groups such as Professional
Sector, Agriculture Sector, Household Sector.
 Accessibility: The Banking services should be
accessible at all the places. Even at remote
places the ATM centers need to be place in
order to give service to customers.

40.  Responsiveness: The banking industry need
to know the changing requirements of the
customers. They should take customers
reviews, suggestions for their services
 Size: Segment should be large and should be
divided into various groups such as high
income group, low income group and middle
income group

42. Advantages of Branding
Clients are more willing to pay a premium price for strong
brands.
A strong brand simplifies client choices.
Helps to retain customers.
People are naturally attracted to firms with strong
brands, which translates to a better pool of talent applying f
positions
It confirms your credibility.

43. Branding strategy for banking
sector
 Meaningful.
 Differentiating.
 Believable.
 Clearly articulated.

45. Positioning Strategy of Banking
Sector
 To successfully position commercial bank services and other
services it requires careful consideration of
important, attractive, distinctive and superior service attributes
to customers.
 It is essential to consider communication to customers as equally
important as to employees for successful positioning of
commercial banking services. Most important is to use customer
contact employees to effectively communicate to customers.
 For successful positioning strategy of commercial bank services
it is important to consider and promote a few but well
specified, distinct and superior benefits relative to competitors
since they do influence the position of the bank in the market
and significantly contribute to market performance.

46. Conti….
 Top management should analyze carefully
the competition that exists within its group
(direct competition) and also consider the
characteristics of the competitive positioning
strategy of the rest of the groups.

48. Strategies for Shifting Demand to match
capacity:
Demand Too High Demand Too Low
Use signage to communicate busy Use sales & ads to increase
days & times. business from current market
segments.
Offer incentives to customers for Modify the service offering to
usage during non- peak times. apply to new market segments.
Take care of loyal or regular Offer discounts or price
customers first. reduction.
Advertise peak usage times & Modify Hours of operation.
benefits of non-peak use.
Charge full price for the service – Bring the service to the customer.
no discounts.

49. Strategies for flexing capacity to match
demand:
Demand Too High Demand Too Low
Stretch time, labour, facilities & Perform maintenance, renovations.
equipment.
Cross-train the employees. Schedule employee training.
Request over-time work from Lay-off employees.
employees.
Rent or share facilities.
Rent or share equipment.
Sub-contract or out source
activities.

50.  Yield Management:- Balancing Capacity
Utilization, Pricing, Market Segmentation, and
Financial Return.
Yield= actual revenue/ potential revenue.
actual revenue= actual capacity used* average
actual price.
potential revenue= total capacity* maximum
price.

51.  Largest nationalized commercial bank in India
 In terms of assets, number of
branches, deposits, profits and workforce.
 Headquarters in Mumbai, India and employs
about 205,896 people.

52. Investment
banking
Credit Commercia
Cards l Banking
Mortgage Retail
PRODUCTS
s Banking
Private
Pensions
Banking
Asset
Management

53. SBI
Personal Publicity &
Sales Instructional
Advertisement Communicati Public
Promotion Material
on Relations

54. STRENGTH WEAKNESS
• Brand Name • Hierarchical
• Wide Distribution management
Network structure
• Market Leader • Highest non
• Diversified Portfolio performing assets
• Low Transition Cost (NPAs)
• Highest market
Capitalization &
Profits

55. OPPORTUNITIES THREATS
• Financial Inclusion • Advent of MNC banks
• Rural India • Changing interest
• Merger of associate rates and the
banks with SBI changing policies of
• Global expansion RBI
• Micro Finance • Competition in the
retail segment
• Branch Expansion
• Private banks in the
• Strong economic
rural and semi-urban
growth
sector
• Corporate demand for
• Change in
credit
government policies