Download - SSM- B&I Sector-mamta rawal
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NAMEROLL
NO.
Vishal Patel 71
Neha patel 72
Bharatsingh Rajpurohit 81
Ankita Rane 83
Shivam Rawal 85
Krutika Sachde 89
Priyanka Shah 98
Virali Shah 100
Bhagyashree Thakkar 116Sameer Velani 125
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PART-I
IntroductionGoods v/s services
PART-II
CharacteristicsClassifications10 Ps of marketing mix4 pillarsSWOT analysis
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Activities which are of financial nature arebrought under the term FinancialServices.
Identification of Banking and Insurancefinancial service institutions asorganisation were meant to take thecountry towards development.
In this service sector quality counts morethan the quantity.
The game is old but the new rules are stilldeveloping.
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Banking and Insurance basically stands formobilizing and allocation savings.
Nationalizations of services leads to
development of Indian economy andcanalized financial resources for the
upliftment of weaker sections of the
society.
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In olden days banking and insurance didnot find any attractions in the low level of
economic activities a little business
prospectus.Banking and insurance control by the
authority of RBI and IRDA.
Basically banks is an institution which
deals with money and credit, where as
insurance is social device to reduce or
eliminate risk of life and property.
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Characteristics Service Goods
Entity Intangible Tangible
Storage Not possible Possible
Title No ownership Ownership
Pricing Labour based Material based
Consumer reaction Spontaneous Delayed
Life Still born Longer
Image Corporate Brand
Focus Customer expectation Customer needs
Inventory Personnel Raw material
Repairs Impossible Possible
Delivery Along with production Separate from
production
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Intangibility :For e.g. Attractive pass book, bank statement, goldcredit card and brand name.
Inseparability :For e.g. Low customer contact i.e. ATM, face- to-face contact For completion of transaction
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Variability :
The greater the degree of automation within any
transaction process, the greater the degree of
standardization.
For e.g.
Simple transaction ATMvariation in quality
Perishibility :For. e.g. Cheque needs to be cleared by the
date.
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Demand:
Fluctuating demand since based oneconomic condition of the nation.
For e.g. In boom condition the customer
are demanding and more moneyinvested in bank.
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CLASSIFICATION
OF BANK
COMMERCIAL BANKS
e.g. HDFC
CO-OPRATIVE BANK
e.g.NKGSB
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STRUCTURE OF BANKING
RBI
COMMERCIAL
e.g. HDFC
NATIONAL
e.g. Punjab
CO-OPRATIVE
e.g. SarasvatDEVELOPMENTAL
e.g. IDBI
SHORT
TERM
INDUSTRIAL
LONG
TERMPRIVATE
EXIMAGRICULTURA
L
NABARD
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PRODUCT: The bundle of utilities
-Borrowing/deposit: -Lending:Current deposit. Term loan.Saving deposit. Loan & Advances.Fixed deposit. E.g. Home loanRecurring deposit. Pre & Post Shipment
OverdraftCash CreditClean LoanGuarantors
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Potential
Augmented
Expected
Core
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Core
Deposit, withdrawals, F.D, Easy loan, Interest,Currency, etc.
Expected
Prompt Services, Convenient timing, lessdocumentation, ATM, Debit & Credit Card, DEMAT,etc.
Augmented
Tele banking, Internet banking, Locker facilities,Discounting of Bills, Bills Payment, Money Transfer,Traveller Cheque, etc.
Potential
Bank at home e.g. ICICI, Counselling, Tax Consultant,Gold Credit card, 24hrs banking, etc.
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PRICING:
In banking price mix is nothing but the rate
of interest and fee or commission charged
by different bank.
RBI RBI regulates rate
of Interest.
E.g. ICICI Bank-Interest on FD- 8-10%
COMPETITION Competition Price
based on theservices of thebank.
E.g. ICICI issue ofduplicatestatement RS: 25per page
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The location analysis for banks branches.
Following are factors of determination of
the locations:
Place
Crowded area
Transportation
Visibility
ResidentialArea
Real StateRates
Competitors
IndustrialStructure
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For e.g. ICICI.
March 31, 2000, bank had a network of 81
branches, 16 extension counters and 175ATMs.
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SalesPromotion
Advertising
Personnelselling
OnlineBanking
TeleMarketinge.g. SMS
Word ofMouth
Pamphlets
Hoardings
Print Media
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They also used the Sho rt Message Service
(SMS)
Wireless App l icat ion Protocol (WAP)
Call Centre
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ICICI bank views people as a key source of competitive
advantage
ICICI bank is the Indias second largest bank; it had just
over 7,700 employees at March 2002.
ICICI bank has built strong capabilities in training anddevelopment to build competencies.
A six-sigma initiative has been undertaken for the lateral
recruitment process to improve capabilities in its areas.
Frontline staff members are being trained on the regularbasis by IT users support group on the various
enhancements as well as new packages designed for
offering customized solutions to customers.
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Selecting of abank
EnquiryGetting detailedinfo. On various
bank a/c.
Selecting thetype of a/c
Filling the formwith relevantdocuments
VerificationGetting an a/cCreating
Cheques &passbook
Forwarding it tothe customers
Regulardeposits &withdrawals
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The physical evidences include the logo, the layout of the
branch, the passbook, flashy cheque books, thefurniture, the reports, punch lines, other tangibles,
employees dress code etc.
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Based on RATER analysis:
Assurancee.g. Knowledge &
politeness
Tangibles
e.g. clean & ion uniform of the
employees
Empathy
e.g. May I help you
Attitude.
Responsivenesse.g. Teller
Reliability
e.g. Regular
transaction records
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Perception refers to maintain the brand image
in minds of customers in that manner which
they don't switch over to the competitor.
PLANNING:To forecast the future.
Preparation of the blue print of the servicesSmooth conducting.
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BASE OF BANKING SECTOR
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STRENGTH OPPORTUNITIES
WEAKNESS THREATS
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STRENGTHS
-Managed by authorised body.
-Adoptability to change.
-Highly trained employees.-Vast networking.
WEAKNESSES
-Illiteracy of the people
-Close mind People.
-Lack of personnel Skill.
OPPORTUNITIES
-Employment
-Fast growing economy.
-Saving Behaviour.-Development of SSI
-Vast Country.
THREATS
-Lack of awareness.
-Aggressive strategy of foreign players.
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Intangibility :
The offerings of the service, insurance, are
free from any products.
Inseparability :
This goes to say that during a transactionthe presence of both the service provider
and consumer is of the highest essential.
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Variability :The policies & its properties will remain the samefor each and every person and also acrosscompanies, but while the transaction is carried outthe qualities of service may vary with each case.
Perishability :
Insurance service offerings cannot be stored. Oncethe policy tenure expire or matured the benefitsgets over.
Simultaneity :
Service offering is produced and consumed theexact same time.
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Life insurance.
General insurance.
Fire insurance.
Marine insurance.
Health insurance.
Property insurance.
Travel insurance.Total permanent disability insurance
Miscellaneous insurance.
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PRODUCT: LIC INDIA
PRODUCT OFLIFE
INSURANCE
Childreninsurance
plan.e.g. Jeevanannurag
Plans forhandicapped.E.g. Jeevan
aadhar
Endowmentassurance plan.
E.g. Jeevanmitra
Money backplan e.g. Jeevan
surbhi 20
Pension plane.g. Jeevan
nidhi
Special plan
Golden jubileee.g Bima gold
Special jubileee.g. Jeevan
saral
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Potential
Augmented
Expected
Core
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Core
Life
Non life insurance policy.
Expected
After sales service low claim settling period.
Augmented
Online premium payment
Payment through credit card.
Potential
Loan against the policy.
Maturity claims settled on or before the maturity date.
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General insurance
Premium
Mortality tables
Expected surplus
Life insurance Life expectancy
age
Medical history
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CHANNEL OF
DISTRIBUTION
Direct selling
Agents
Financialadvisors
Call centres
Partner selling
Bank assurance
Postaldepartment
Selling throughcorporate
Electronicchannel
LIC on internet
Informationkiosks
SMS
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7 Zonal offices
100 Divisional offices
2048 Branch office.
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SalesPromotion
Advertising-T.V-Met life
Personnelselling-agents
Internet(www.licindi
a.com)
TeleMarketinge.g. SMS
Word ofMouth
Publicrelation
Radio-ICICIPrudential.92.5redFm
Print Media-LIC
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Sponso r ing event :
e.g. Max new York life insurance company
sponsored the recent ICC cricket would
cup 2010- India.
Gif ts:
e.g. LIC provides diaries, pens, booklets,etc.
Brochu res, sem inars, etc.
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LIC views people as a key source of competitive
advantage LIC of Indias top public insurance company; it
have just over6,28,301 Agents employees.
Agents are the front stage employees
The attitude and friendliness of the agentsdetermines what the customer feels about the
service given to him
LIC has built strong capabilities in training and
development to build competencies.A six-sigma initiative has been undertaken for
the lateral recruitment process to improve
capabilities in its areas.
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Selecting of aInsurance co.
Enquiry Calls to agentFinancial review
form
Agent suggest 2or 3 policies
Selection of planFilling of
proposals alongwith documents
Agents submits &signed form in theinsurance office
Verifying thedocumentssubmitted
ReconfirmationRegularly
payment ofpremium
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Physical evidence includes:Policy documents, Brochures, Periodic
statement, Renewal Notices, Business
cards, Stationary, Calendars, Diaries,websites.
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Assurance
e.g. Knowledge &
politeness
Tangibles
e.g. Insurance policy documents
Empathy
e.g. May I help you Attitude
and human carrying.
Responsivenesse.g. Responsible for
claim.
Reliabilitye.g. Agent is reliable
in providing inf. Of
policy
Based on RATER
Analysis:
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Perception refers to maintain the brand image
in minds of customers in that manner which
they don't switch over to the competitor.
PLANNING:To forecast the future.
Preparation of the blue print of the servicesSmooth conducting.
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BASE OF INSURANCE SECTOR
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STRENGTH OPPORTUNITIES
WEAKNESS THREATS
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STRENGTHS
-Consumer grievance redresses.
-Adoptability to change.
-Diversification of funds.-Channels.
-Rural customer are must.
WEAKNESSES
-Less coverage in rural Ares.
-Out dated Product.
-Lack of personnel Skill.OPPORTUNITIES
-Employment
-Fast growing economy.
-Saving Behaviour.
-Increasing per capita income in India.
-Vast Country.THREATS
-Lack of awareness.
-Aggressive strategy of foreign players.
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INSURANCE IS NO MORE A PUBLIC
SECTOR MONOPOLY IN INDIA
R.N. MALHOTRA COMMITTEE. Govt. stake in insurance co. 50%
Holding of GIC subsidiaries not > 5%
Controller of Insurance (Currently a part from the
Finance Ministry) should be made independent.
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Opened the Insurance sector.
Made I.R.A a statutory body.
STATUTORY STATUS: the Insurance Act, 1938,
Life Insurance Corporation Act , 1956 &
the General Insurance Business Act , 1972 .
The IRDA (Insurance regulatorydevelopment authority) was set up on April19th,2000.
This made the conventional Insurance sectorto be more competitive
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The opening of the sector was done to,
Make available long term funds forinfrastructure
Introduce new and innovative products
Make Effective improvement in quality of
service to the customers
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This gave rise to a cutting edge competitionbetween private players and L.I.C.
A Shakeout. Private insurers financial muscle,their professionalism, and the incentives theyoffer has created a shakeout in public sector.
Importance of service: The service factor. Anarea, which never received its desiredimportance earlier was tapped by private
players.
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Aditya Birla group & Sun Life ,
Canada-
LIFE
HDFC and Standard Life, UK LIFE
ICICI and Prudential, UK LIFEMax India and New York Life,USA LIFE
Tata group and AIG, USA LIFE & NON-LIFE
SBI and Cardiff, France LIFE
Reliance with no foreign alliance NON-LIFE
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