3 bank marketing

8/8/2019 3 Bank Marketing

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Bank MarketingBank Marketing

&&Comparative Analysis ofComparative Analysis of

Bank Marketing StrategiesBank Marketing Strategies

Presented by Harsh Agarwal (91022)

Harshdeep Garg (91023)

Harshita Periwal (91024)

Karan Khanna (91026)


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2

Classification of ServicesClassification of Services

Pure Tangible Product

Materials / Components

Computers

Major Product withMinor Services

Product = Service

Major Service with

Minor Product

Business Hotels

Good Transportation

Banking

Pure Intangible

Service


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MarketingMix

Price

Product

Promotion

PlacePeople

Process

PhysicalEnvironment


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Identify e

ployeeneeds/

expectations

Market banksproducts

Ac ieve e ployeeinvolve

ent

Identify custo

erneeds

Manage deliveryto t e custo er

Ac ieve custo ersatisfaction

Internal MarketingInternal Marketing & the Marketing Concept& the Marketing Concept


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Features

Variability

Peris ability

Inseparability

Intangiblity

Special features of Bank MarketingSpecial features of Bank Marketing


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PricePre iu Psyc ologicalOwners ip

Uniqueness

Value to

buyers

Competitive AdvantageCompetitive Advantage


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Marketseg ents

Students

Do estictourist

Youngsalariedpeople

Workingwo en

Investors

co unity

House wife

Defensepersonal

Seniorcitizen

Market SegmentsMarket Segments


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Types of Customer based onTypes of Customer based on

Behavioral PatternBehavioral Pattern

Banking/ otherfinancialinstitution

New custo er

Satisfied existingcusto er of t e

bank

Dissatisfiedexisting custo er

of t e bank

Dissatisfiedcusto er exiting

per anently


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Strategy towards Market SegmentsStrategy towards Market Segments

Undifferentiated Marketing

Differentiated Marketing

Niche Marketing


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Marketing in BankingIndustryMarketing in BankingIndustryFactors that have lead to the increasing importance

Govt. initiatives

Deregulation of interest rates

Increasing emphasis on bank profitability

Foreign Banks

Entry of new private banks

Reduction of SLR Social Environment

Technology Development

Availability of Credit


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Coreproduct

For alproduct

Aug entedproduct

Evolution of Banking ProductsEvolution of Banking Products


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Marketing Mix for Banking ServicesMarketing Mix for Banking Services ProductPortfolio

Designing an attractive package

Product development

Proactive Process

Product MixProduct Mix


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Promotion MixPromotion Mix Advertising

Finalizing the budget

Selecting a suitable vehicle

Making possible creativity

Instrumentality of Branch managers

Public Relations

Personal Selling Sales Promotion

Word of mouth promotion


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PlacePlaceStrategyStrategy

Specialized

branc es

Singlewindow

approac

Strategicalliance

Ho etelebanking

ATM

Mobileoffices

Specialcounters


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StudentLoan

SalaryAccount

Car Loan

Ho e LoanLife

Insurance

Retire ent

Plan

ReverseMortgage/

Pension

Customer Life CycleCustomer Life Cycle


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Analysis suggests that a 5% increase in customer retention can

increase profitability by 35% in banking business (Source: Harvard

Business Review)

Over a period of time, retail bank customers tend to increase their

holding of the other products from the across the range of financial

products/services available

Long-term customers are more likely to become referral sourcesfor business promotion

The longer a relationship continues, the better a bank can

understand needs and preferences of the customers17

Need for CRM in BankingNeed for CRM in Banking


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Key Benefits of Implementing such CRM software for

Banking:

360-Degree Client View.

Manage Leads & Opportunities.

Automate Team- and Role-basedProcesses.

Generate Executive Reports.

Regulatory Compliance & Security.

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Gale Force CRM for BankingGale Force CRM for Banking


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Customer

Advice & Expertise

Give e independent advice specific to y needs

Expertise in dealing wit people in y situationflexibility

Brand

Moderninnovative i aget at fits y own

i age

PersonalRelationships

Provide e wit asingle advisor to

ange y affairs

Discretion

Treat y affairswit ut ostdiscretion

Respect y

need for privacyat all ti es

Performance

Provide e wit t e best possible return on y assets

Perfor ance t at will elp increase y inco e

Global

Access anyw erein t e world

P ysicalpresence in

countries I visit

High QualityService

Consistent, igquality, error-free

service

Flexibility

Cope wit yparticular lifestyle,& y fluctuating

needs

Customization Process CycleCustomization Process Cycle


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Bank Share in Aggregate OppositeBank Share in Aggregate Opposite

31%

25%13%

22%

9%

Sales

SBI and its associates

nationalized banks

foreign banks

regional rural banks

ot er co ercial

sc eduled banks


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Strategies of Bank MarketingStrategies of Bank Marketing

Urban Areas

Universal Banking

CRM

Rural Areas

Microfinance


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Marketing Strategies A ComparisonICICI BankICICI Bank SiloSilo--basedbased

Different departments do

not share information

Marketing is not targeted

Customers are hoarded with

unnecessary calls leading to

the assumption that his/her

own bank is not aware of the customer

HDFC BankHDFC Bank Relationship CentricRelationship Centric

Departments are inter-

linked through IT that

enables each department toshare information

Customers are presented

with the right product at the

right time Helps build personalized

relationships with

customers


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ProductInnovation


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CitibankCitibank SuvidhaSuvidha Premium Savings AccountPremium Savings Account

Free access to domestic airport lounges

Free access to premier golf ranges and discount

on green fee

Daily withdrawal limit of Rs. 1 lakh

Earn while you spend: Get 1 RewardPoint on

every Rs. 150 spent Exclusive discounts at premier stores offered by

MasterCard


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Senior Citizen AccountSenior Citizen Account Dedicated Relationship Manager

Time Deposits

Higher Interest rates exclusive for the clients Deposits are held in units of Rs. 1,000 for easy liquidity

Choice of flexible tenures

Option of overdrafts against your Time Deposit (allowingyou to meet your short-term liquidity needs, while earning

higher rates of interest on your deposit)

Succession Planning offered by IL&FS Trust CompanyLtd. (ITCL)


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Commercial Banks LoanCommercial Banks Loan

Secured Term Loans

Quick Loans Overdrafts

Drop line Overdrafts

Import ExportFinance Eligibility


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27%

27%

25%

8% 13%

selling of utual funds

bank assurance

forex anage ent

wealt anage ent

derivative trading

New Business OpportunityNew Business Opportunity

tapped byI

ndian Bankstapped byI

ndian Banks


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New Delivery ChannelsNew Delivery Channels Internet Banking

Mobile Banking

Core Banking or Centralized Banking

INFINET

SWIFT

Electronic data interchange

Magnetic Ink Character Recognition

Automated Clearing House

Real time gross settlement Electronic funds transfer

Electronic bill payment


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Future ofIndian BankingFuture ofIndian Banking


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Vital tool in the process ofFinancial Inclusion

Easy sharing of information between rating

agencies and financial institutions

Tracking customers credit record and bring down

cost of financial transactions

Reduce the possibility of fraud

Relevance of UniqueIdentification SchemeRelevance of UniqueIdentification Scheme


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Customer Acquisition MistakesCustomer Acquisition Mistakes Narrowly Defining "New" Customers

Underestimating the Profitability of New Accounts

Targeting Promotional Messages Poorly

Paying Inadequate Attention to New CustomerProducts


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Customer Acquisition MistakesCustomer Acquisition Mistakes Failing to OfferPrice Appeals

Failing to OfferPremiums

Neglecting to Provide Employees Adequate Training

Failing to Track and Calculate New Customer Costs

Failing to Make a Long-term Commitment


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Thank YouThank You

3 bank marketing

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