CAIIBGeneral Bank Management Module D MARKETING MANAGEMENT


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CAIIBGeneral Bank ManagementModule D MARKETING
MANAGEMENT

• BY
• S.V.ATRE
• Bsc BA LLB MBA CAIIB
• FACULTY
• BANK OF INDIA
• MANAGEMENT DEVELOPMENT INSTITUTE
• CBD BELAPUR NAVI MUMBAI

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WHAT IS MARKETING ?

• IS SELLING MARKETING ARE SAME ?

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DEFINITION PETER DRUCKER

• Marketing is not only much broader than selling
  it is not a specialised activity at all.
• It encompasses the entire business.
• It is the whole business seen from the point of
  views of its final result that is from the
  customers point of views.
• Concern and Responsibility for marketing must
  therefore permeate all areas of the enterprise
• 
  contd.

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DEFINITION PHILLIP KOTTER

• Marketing is the business function that
  identifies current unfilled needs and wants
• defines and measures their magnitude
• determines which Target Markets the
  organisation can best serve
• and decides on appropriate products services and
  programmes to serve these markets.
• Thus marketing serves as a link between
  societys needs and its pattern of industrial
  response.

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Collecting Analysing the Needs Wants
Demands of Customer
Developing Designing a Product
Feedback
CONCEPT OF MARKETING
Conveying the Customer about the Product
Delivering the Product
Pricing the Product
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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• To make available goods and services to buyers
  according to their requirement Is called
• a selling
• b trading
• c marketing
• d any of the above

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• To make available goods and services to buyers
  according to their requirement Is called
• a selling
• b trading
• c marketing
• d any of the above

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• Marketing combines which of the following
• a philosophy of business and business practices
• b business practices and customer requirements
• c customer requirements and philosophy of
  business
• d all of the above

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• Marketing combines which of the following
• a philosophy of business and business practices
• b business practices and customer requirements
• c customer requirements and philosophy of
  business
• d all of the above

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INTRODUCTION TO MARKETINGMANAGEMENTQuestions

• 3.Which of the following is not a part of the
  marketing activity
• a sales and sales management marketing
  research planning distribution
• b advertising and promotion after sale service
• c pricing packaging product development
• d none of the above

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INTRODUCTION TO MARKETINGMANAGEMENTQuestions

• 3.Which of the following is not a part of the
  marketing activity
• a sales and sales management marketing
  research planning distribution
• b advertising and promotion after sale service
• c pricing packaging product development
• d none of the above

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• Which of the following is more appropriate to the
  process of marketing management.
• a analysis and planning
• b planning marketing and implementation
• c analysis planning implementation and
  control
• d analysis implementation control and
  marketing

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• Which of the following is more appropriate to the
  process of marketing management.
• a analysis and planning
• b planning marketing and implementation
• c analysis planning implementation and
  control
• d analysis implementation control and
  marketing

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• Which of the following is an appropriate
  definition of product.
• a it is anything that can be offered to satisfy
  a need or want of the customer
• b a product can be a physical goods
• c a product can be a service or idea
• d all the above together

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INTRODUCTION TO MARKETING MANAGEMENTQuestions

• Which of the following is an appropriate
  definition of product.
• a it is anything that can be offered to satisfy
  a need or want of the customer
• b a product can be a physical goods
• c a product can be a service or idea
• d all the above together

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MARKETIING OF WHAT

• PHYSICAL GOODS
• SERVICES
• IDEAS
• MARKETING DIFFERS FOR EACH CATEGORY

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MARKETIING OF SERVICES

• AS A BANKER WE ARE CONCERNED WITH THE MARKETING
  OF SERVICES
• WHICH GREATELY DIFFERS FROM MARKETING OF GOODS
• 
  
  contd

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DIFFERNCE BETWEEN PHYSICAL GOODS SERVICES
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DEFINITION OF SERVICE

• Services are by and large Activities or they
  are a series of activities rather than things
• The services are intangible
• They take place in the interaction between the
  customer and the service provider i.e. Services
  are produced and consumed simultaneously

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MARKETING OF BANKING PRODUCTS

• Banks provide services
• Its aim is to satisfy customers needs and wants
• The needs and wants of the customer are financial
  in nature
• Competition Efficiency and Effectiveness are
  major factors

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CONSUMER BEHAVIOUR

• STUDY OF THE CONSUMER EHAVIOUR IS ESSENTIAL FOR
  MARKETING
• UNDERSTANDING CONSUMER BEHAVIOUR IS THE GREATEST
  CHALLENGE
• CAN CONSUMER BEHAVIOUR BE PREDICTED
• CONSUMERS ARE HUMAN BEINGS

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CONSUMER BEHAVIOUR

• To buy or not to buy
• What to Buy?
• When to Buy ?
• Consumer behaviour is influenced by
• Needs and Motives
• Hierarchy of Consumer Needs
• Decision making process

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NEEDS MOTIVES
5. SelfActualisation Self
Fulfillment
4. Esteem Needs Self respect Recognition
Status and Success
3. Social Needs Friendshipaffection and a sense
of belonging
2. Safety Needs Avoidance or Protection from
Threatening situations and economic security
1. Physiological Needs Food Oxygen Sleep
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Individual Perception

• An individual is motivated by
• his personal needs for self esteem
• love or social recognition
• his behaviour is affected by his particular
  perception of himself and the world around him.
• Selective Perception
• Human consumers have the ability to select from
  the many sensations bombarding our brains

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CONSUMER BEHAVIOUR

• Learning and Habit Development
• Cognitive theory views
• Learning as a mental process of memory thinking
• and the rational application of knowledge to
  practical problem solving
• Most consumer behaviour is habitual. They rely on
  habit because
• 1they resort to habit when they select products
  because it is easy
• 2they rely on habit because of necessity
• 3they resort to habit because it is the rational
  thing to do

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FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING

• Location Where a bank branch is located often
  influences the choice of the bank.
• Very often the bank next door wins on that
  basis alone
• 
  
  contd.

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FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING

• Safety Depositors are very often placing their
  hard earned money in a bank and a worrying factor
  for them is is the bank safe?
• To quell the fear the background of the bank
  its promoters international connections the
  years it has been operating in the country all
  influence the choice
• 
  
  contd.

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FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING

• Returns A consumer having satisfied himself
  that his money is safe wants to be sure that the
  returns being earned are attractive

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FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING

• Range of Services With greater sophistication
  in the environment a consumer gets more
  demanding and would like his bank to offer a
  variety of services and products which increase
  convenience for him.
• Ex. Phone billing ATMs or offer him greater
  choice a range of term deposit products which
  offer him high returns and liquidity.

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CUSTOMER SERVICE AS A MARKETING TOOL
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CUST SERVICE AS A MRKTING TOOL

• MARKETING COST IS VERY HIGH
• SUCCESS OF MKTG IS UNCERTAIN
• SATISFIED CUSTOMER IS THE BEST MARKETING MANAGER
  FOR THE BANK
• NOT ONLY HE RETAINS BUSSINESS HE CANVASSES
  NEW BUSINESS ALSO
• HIGHER SUCCESS RATIO
• ITS FREE

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Customer Service The Essence Of bussiness

• Customers are the backbone of the Organizations
• They posses the power to make or break any
  organisation irrespective of its nature and size
  .
• You forget your customers and you are out of your
  bussiness

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CSThe essence of business.

• So it is necessary to take adequate care of them
  and at the same time increase their number.

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NEED OF CUST SERVICE

• IN A FREE MARKET ECONOMY THE CUSTOMER HAS CHOICE
• IT COSTS MORE TO GAIN A NEW CUSTOMER THAN TO
  RETAIN AN EXISTING ONE.
• UNLESS THE SITUATION IS RECOVERED
  QUICKLY
• A LOST CUSTOMER WILL BE LOST FOR EVER.

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NEED OF CUSTOMER SERVICE

• DISSASTISFIED CUSTOMERS HAVE FAR MORE FRIENDS
  THAN SATISFIED ONES.
• IF YOU DONOT LOOK AFTER YOUR CUSTOMERS SOMEBODY
  ELSE WILL.

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CUSTOMERS NEEDS

• SPEED
• TIMELINESS
• ACCURACY
• COURTESY
• CONCERN

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TOOLS STAFF EMPOWERMENT

• ATTITUDE
• POLITENESS
• LISTENING
• PROMPTNESS
• KNOWELEDGE
• COMMUNICATION
• CUSTOMER EDUCATION

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COMMON COMPLAINTS

• RUDE SERVICE /RESPONSE AT THE COUNTER
• UNATTENDED PHONES
• DELAYED SERVICE
• INSENSESITIVITY AND APATHY TOWARDS CUSTOMER
• UNINFORMED STAFF

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COMPLAINTS REDRESSAL

• WELCOME COMPLAINTSTHEY ALLOW FOR RECOVERY
• THE CUSTOMER MAY NOT ALWAYS BE RIGHT BUT HOW YOU
  RESPOND CAN MAKE ALL THE DIFFERENCE
• IF YOU DONOT LOOK AFTER THEMSOMEBODY ELSE WILL

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TIPS

• AVOID CONFRONTATIONS
• YOU MAY WIN THE ARGUMENT BUT WILL LOSE THE
  CUSTOMER

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CUSTOMER DELIGHT

• GIVE HIM MORE THAN WHAT HE NEEDS OR DEMANDS
• SERVE WITH SMILE
• MAKE HIM A DELIGHTED CUSTOMER
• MAKE HIM A FRIEND

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LEGAL PROTECTION TO CUSTOMERS

• Consumer protection act
• Banking Ombudsman scheme
• Right to information act
• Lenders liability act

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The Consumer Protection Act

• Consumers are provided with easy access to
  justice.
• Simple and faster mechanism
• since it is a welfare legislation the interpreted
  to the benefit of the consumer.

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COPRA PROTECTS FOLLOWING RIGHTS OF CONSUMERS.

• Protection from goods which are dangerous to life
  and property.
• To be informed about the qualityquantitypotency
  puritystandard and price of goods
• To have competitive price
• The consumer interest will receive proper
  consideration

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COPRA

• The right to seek redressal against unfair trade
  practices/exploitation
• The right to consumer education.

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THE BANKING OMBUDSMAN SCHEME 1995

• POWERS AND DUTIES
• a to receive complaints relating to banking
  services.
• b to consider such complaints and facilitate
  their I satisfaction or
• iisettlement by agreement or
• iii by making a recommendation or
• iv award

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Ombudsmans authority include

• All complaints concerning deficiency in
  servicesuch as
• 1.Non payment/inordinate delay in payment or
  collection of chequesdrafts/billsetc.
• 2.Non acceptance without sufficient causeof
  small denomination notes tendered for any
  purposeand for charging of commision in respect
  thereof.

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All complaints concerning deficiency in service
such as

• 3.Non issue of drafts to customers and others
• 4.Nonadherence to prescribed working hours by
  branches
• 5.Failure to honour gurantee letter of credit
  commitments by banks.

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OMBUDSMAN

• 6.Claims in respect of unauthorised or fradulent
  withdrawals from deposit accountsetc
• 7.Complaints pertaining to deposit accounts.
• 8.Complaints from exporters in India pertaining
  to the banks operations in India.

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OMBUDSMAN

• Complaints from Non Resident Indians having
  accounts in India in relation to their
  remittances from abroad deposits and other
  bankrelated matters.

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Complaints concerning advances only in so far
they relate to

• 1.Non observance of RBI directives on intt
  rates.
• 2.Delays in sanction/nonobservance of prescribed
  time schedule for disposal of loan application
• 3.Non observance of any other directions or
  instructions of RBI as specified for the purpose.

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Prerequisite for filing a complaint with the
Ombudsman

• 1.The complainant should have filed a complaint
  with the bank in writing and
• either the bank had rejected the complaint or
• the complainant had not received any
  satisfactory reply within two months.

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Pre requisites for filing complaint

• 2.The complaint should be made not later than one
  year after the bank had rejected the
  representation or sent its final
  reply on the representation of the complainant.
  
  

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Settlement of complaint

• The BO must notify the branch or office of the
  bank named in the complaint about the receipt of
  complaint along with a copy of the complaint.
• The BO must strive to promote a settlement of the
  complaint by agreement between the complainant
  and bank through concillation or mediation.

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PROCEDURE

• For the purpose of promoting a settlement BO is
  not bound by any legal rule of evidence
  
  BO may follow
  any appropriate procedure.
• BO will pass an Award after affording the parties
  reasonable opportunity to present their case.

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LEGAL PROTECTION TO CUSTOMERS

• Right to information act
• Lenders liability act

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QUOTES

• IF YOU BUILD A GREAT
• EXPERIENCECUSTOMERS TELL EACH OTHER
• ABOUT THAT .
• WORD OF MOUTH IS VERY POWERFUL.
• 
  Jeff Bezos

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QUOTES

• Customers dont expect you to be perfect
• They do expect you to fix things when they
• go wrong.
• 
  Donald Porter

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QUOTES

• The longer you wait the harder it is to
• produce outstanding customer service.
• 
  William H Davidow

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QUOTES

• Customer service is awareness of needs
• problemsfears and aspirations.
• 
  Anonymous

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QUOTES

• Quality in service or product
• is not what you
• put into it.
• It is what the client or customer
• gets into it
• 
  Peter Drucker

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QUOTES

• Our greatest asset
• is the customer.
• Treat each customer
• as if they are the only one
• 
  
• 
  Laurice Leito.

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QUOTES

• It takes less effort to keep an old customer
  satisfied
• than to get a new customer interested
  
  
• 
  Robert Half

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QUOTES

• What you give is
• what you you get returned I.e.
• the way you handle your employees
• is the way they will handle manhandle your
  customers.
• E..D.HORRELL

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QUOTES

• HAPPY STAFF
• MAKES CUSTOMERS HAPPY.
• Don Silvensky
• CEO MicroteTek

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CONSUMER AND MARKET SEGMENTATION
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CONSUMER MARKET SEGMENTATION

• The market for product or service is not one
  homogenous mass of customers.
• Each potential buyer has individual needs and
  desire and specific circumstances that effect his
  purchasing and consumption behaviour.

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CONSUMER MARKET SEGMENTATION

• Market segmentation is
• the division of the total market into
• several relatively similar
• and meaningful groups.

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CONSUMER MARKET SEGMENTATION

• Market segmentation
• the well tested system for guiding marketing
  strategy
• starts not with distinguishing product
  possibilities
• but rather with distinguishing customer needs or
  interests.

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APPLICATION OF SEGMENTATION TO BANKING

• 1 The most commonly applied application in
  Banking in the category of deposits is by
  demographic variables. Therefore target segments
  which a bank wants to pursue may be defined by
• Age/Income/Occupation/Education
• 
  contd

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APPLICATION OF SEGMENTATION TO BANKING

• 2 For example a typical definition for a target
  segment for deposit customers could be
• Individuals within a city/locality
• Age Group 20 to 55 years
• Income Rs.100000 p.a.
• Occupation Salaried Individuals
• Education Graduates
• 
  contd

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APPLICATION OF SEGMENTATION TO BANKING

• 3 Very often target segments could be defined by
  profession
• Doctors
• Chartered Accountants
• Lawyers
• Consultants
• contd

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APPLICATION OF SEGMENTATION TO BANKING

• 4 Other organizations and nonprofit entities
  to whom banks market
• Trusts
• Associations Societies
• Schools Colleges
• Small Establishments like shops
• contd.

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APPLICATION OF SEGMENTATION TO BANKING

• 5 Since location is a great influencer in Retail
  Banking Locality mapping is undertaken.
• Very often localities have a skew of
  ethnic/community groups like Gujarathis Sindhis
  Catholics Tamilians this forms a basis also
  for target segmenting
• contd.

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APPLICATION OF SEGMENTATION TO BANKING

• 6 In Retail Banking Segmentation is done at
  various levels so that it actually provides
  proper guidance to the marketing staff
• Demographic
• Geographic Mapping
• Community clusters
• Listing of entities
• contd.

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APPLICATION OF SEGMENTATION TO BANKING

• 7 For corporate lending the target segment of
  companies could be defined by the following
  variables
• Location
• Sales turnover
• Industry category
• Number of employees

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MARKETING MIX

• Marketing tools in relation to products known as
  the Marketing Mix contains four elements
• i Product Customer Solution
• ii Price Customer Cost
• iii Place Convenience
• iv Promotion Communication
• contd

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CHANNELS OF DISTRIBUTION

• Distribution refers to Place one of thePs in
  marketing mix.
• Channels of distribution should be thought of as
  means to increase
• the availability and/ or convenience of
• service that help in satisfying the need of the
  existing user or increase their use among the
  existing or new customers.

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CHANNELS OF DISTRIBUTION

• Branches have been the delivery system for
  Banking.
• Various characteristics of services also had a
  lot of say in restructuring the channels of
  distribution

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CHANNELS OF DISTRIBUTION

• However the technological evolution has brought
  a great change and development of innovative
  channels of distribution.
• The types of Branches in operation include
• Full Service Branches
• Limited Service Branches SPOKES linked to
  Main HUB branches
• Specially Branches like Corporate Banking
  Branches Housing Finance Branches NRI
  Branches SME Branches
• contd

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CHANNELS OF DISTRIBUTION

• Electronic Banking Services include
• a ATMs
• b Intelligent Terminals
• c Home Banking
• d Telemarketing
• e Internet Banking

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MARKET SEGMENTATIONQUESTIONS

• The aggregation of a heterogeneous market into
  two or more relatively homogeneous and meaningful
  groups is called
• a consumer groups
• b market groups
• c market segmentation
• d market and consumer groups

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MARKET SEGMENTATIONQUESTIONS

• The aggregation of a heterogeneous market into
  two or more relatively homogeneous and meaningful
  groups is called
• a consumer groups
• b market groups
• c market segmentation
• d market and consumer groups

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MARKET SEGMENTATIONQUESTIONS

• 2. Market segmentation begins with which of the
  following
• a distinguishing product possibilities
• b distinguishing customer needs or interests
• c distinguishing service range
• d any of the above

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MARKET SEGMENTATIONQUESTIONS

• 2. Market segmentation begins with which of the
  following
• a distinguishing product possibilities
• b distinguishing customer needs or interests
• c distinguishing service range
• d any of the above

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MARKET SEGMENTATIONQUESTIONS

• Which of the following is the important aspect
  used to segment a market
• a significantly related to buying and
  consumption
• behaviour capable of being used in
  design and
• implementation of marketing strategy
• b identifiable and measurable without great
  effort
• c capable of being used in design and
  implementation of
• marketing strategy
• d all of the above

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MARKET SEGMENTATIONQUESTIONS

• Which of the following is the important aspect
  used to segment a market
• a significantly related to buying and
  consumption
• behaviour capable of being used in
  design and
• implementation of marketing strategy
• b identifiable and measurable without great
  effort
• c capable of being used in design and
  implementation of
• marketing strategy
• d all of the above

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MARKET SEGMENTATIONQUESTIONS

• When one product or service can serve most or all
  of the market usually the segmentation is
• a least possible
• b more desirable
• c not feasible
• d not possible

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MARKET SEGMENTATIONQUESTIONS

• When one product or service can serve most or all
  of the market usually the segmentation is
• a least possible
• b more desirable
• c not feasible
• d not possible

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MARKET SEGMENTATIONQUESTIONS

• 5. Which of the following can be categorized as
  benefit of non adoption of market segmentation
• a economies of scale
• b standardization of product
• c minimal inventories
• d all the above

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MARKET SEGMENTATIONQUESTIONS

• 5. Which of the following can be categorized as
  benefit of non adoption of market segmentation
• a economies of scale
• b standardization of product
• c minimal inventories
• d all the above

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MARKETING MIX BANK MARKETINGQUESTIONS

• Which of the following is the prominent
  difference between the goods and services which
  also suggests different marketing strategy
• a intangibility and separability
• b inseparability and homogeneity
• c intangibility inseparability and
  nonperishability
• d intangibility inseparability heterogeneity
  and perishability

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MARKETING MIX BANK MARKETINGQUESTIONS

• Which of the following is the prominent
  difference between the goods and services which
  also suggests different marketing strategy
• a intangibility and separability
• b inseparability and homogeneity
• c intangibility inseparability and
  nonperishability
• d intangibility inseparability heterogeneity
  and perishability

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MARKETING MIX BANK MARKETINGQUESTIONS

• Intangibility inseparability and heterogeneity
  are manifested in services marketing at which of
  the following levels
• a strategic level
• b tactical level
• c a and b both
• d none of the above

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MARKETING MIX BANK MARKETINGQUESTIONS

• Intangibility inseparability and heterogeneity
  are manifested in services marketing at which of
  the following levels
• a strategic level
• b tactical level
• c a and b both
• d none of the above

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MARKETING MIX BANK MARKETINGQUESTIONS

• 4. Marketing mix represents a series of
  responses employed to
  implement a chosen strategy
• a tools
• b measures
• c tactic
• d any of the above

97
MARKETING MIX BANK MARKETINGQUESTIONS

• 4. Marketing mix represents a series of
  responses employed to
  implement a chosen strategy
• a tools
• b measures
• c tactic
• d any of the above

98
MARKETING MIX BANK MARKETINGQUESTIONS

• 5. Marketing mix is component of
  any marketing strategy.
• a important
• b core
• c latest
• d first

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MARKETING MIX BANK MARKETINGQUESTIONS

• 5. Marketing mix is component of
  any marketing strategy.
• a important
• b core
• c latest
• d first

100
NEW CHALLANGES IN BANK MARKETING

• YOUNG CUSTOMERS
• TECHNOLOGY
• NON BANKING PRODUCTS INSURANCEMUTUAL FUNDS
• PHYSICAL PRODUCTS GOLD COINS etc

101
Real MarketingHow to market all our products to
single customer

• Manager of a Retail store in US asks Do you
  have any sales experience? The Indian says
  Sir I was a salesman back home in India.
• Well the boss liked the Indian chappie so he
  gave him the job. You start tomorrow.. Ill come
  down after we close and see how you did.

102
Real MarketingHow to market all our products to
single customer

• His first day on the job was rough but he got
  through it.
• After the store was locked up the boss came
  down. How many sales did you make today?
  Indian boy says Sir Just ONE sale. The
  boss says Just one? No No No You see here
  our sales people average 20 or 30 sales a day.
  If you want to keep this job youd better be
  doing better than just one sale.

103
Real MarketingHow to market all our products to
single customer

• By the way how much was the sale for? Indian
  boy says 101 237. 64 Boss says 101 237.
  64? What the hell did you sell

104
Real MarketingHow to market all our products to
single customer

• Indian boy says Sir First I sell him small
  fishhook. Then I sell him medium fishhook. Then
  I sell him large fishhook. Then I sold him new
  fishing rod and some fishing gear.

105
Real MarketingHow to market all our products to
single customer

• Then I ask him where hes going fishing and he
  said down on the coast so I told him hell be
  needing a boat so we went down to the boating
  department and I sell him twin engine Chris
  Craft.

106
Real MarketingHow to market all our products to
single customer

• Then he said he didnt think his Honda Civic
  would pull it so I took him down to our
  automotive department and sell him that 4X4
  Blazer.

107
Real MarketingHow to market all our products to
single customer

• I then ask him where hell be staying and since
  he had no accommodation I took him to camping
  department and sell him one of those new igloo 6
  sleeper camper tents.

108
Real MarketingHow to market all our products to
single customer

• Then the guy said while were at it I should
  throw in about 100 worth of groceries and two
  cases of beer.

109
Real MarketingHow to market all our products to
single customer

• The boss said Youre not serious? A guy came in
  here to buy a fishhook and you sold him a boat
  a 4X4 truck and a tent?

110
Real MarketingHow to market all our products to
single customer

• Indian boy says No Sirji actually he came in
  to buy Anacin for his headache and I said Well
  fishing is the best way to relax your mind.