serives_mktg_-_banking__full_and_final_

8/7/2019 Serives_Mktg_-_Banking__full_And_Final_

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IntroductionIntroduction

Banks are the most significant Bodies in the Indian financial market.Banks are the most significant Bodies in the Indian financial market.Dominated by public sector Banks, the Industry has so far acted as anDominated by public sector Banks, the Industry has so far acted as anefficient partner in the growth and the development of the country.efficient partner in the growth and the development of the country.Size of the banking sector has gone up over six times from Rs.5,984 bnSize of the banking sector has gone up over six times from Rs.5,984 bnin 1995 to over RS.36,105 bn in 2006.in 1995 to over RS.36,105 bn in 2006.

This transformation has been largely brought aboutThis transformation has been largely brought aboutby:by:

liberalization and economic reforms.liberalization and economic reforms. Increased Competition from Domestic & foreign Banks.Increased Competition from Domestic & foreign Banks.

More Services Offered e.g. Credit cards, Insurance, ForeignMore Services Offered e.g. Credit cards, Insurance, ForeignCurrency loans and Investment Banking.Currency loans and Investment Banking. Increase in FDI from 49% to 74% for Private banks.Increase in FDI from 49% to 74% for Private banks.

Increase in Retail FinanceIncrease in Retail Finance Consumer CreditConsumer Credit


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Banking Industry : OverviewBanking Industry : Overview

First bank established in 1786 named As General Bank OfFirst bank established in 1786 named As General Bank OfIndia.India.

In 1920 ,three Presidency banks merged to form ImperialIn 1920 ,three Presidency banks merged to form ImperialBank of India. Post Independence this bank was named asBank of India. Post Independence this bank was named as

SBI in year 1955.SBI in year 1955. Post liberalization reforms, we have approximately:Post liberalization reforms, we have approximately:

-- 222 Commercial Banks222 Commercial Banks

-- 28 Public sector banks28 Public sector banks

-- 29 Private Banks29 Private Banks-- 31 Foreign banks31 Foreign banks

With a combined network of more than 60,000With a combined network of more than 60,000branches and 17,000 ATMs across the Country.branches and 17,000 ATMs across the Country.


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Major Players in Banking sectorMajor Players in Banking sector

Indian BanksIndian Banks

ICICI BANKICICI BANK

HDFCHDFC

State Bank of IndiaState Bank of India Punjab National BankPunjab National Bank

AXIS bankAXIS bank

Corporation bankCorporation bank

IDBIIDBI

Bank Of BarodaBank Of Baroda

Foreign Banks

HSBC

Standard Chartered

Bank Barclays Bank

Deutsche Bank

CitiBank Bank of AmericaBank of America


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4 I4 Iss of BANKINGof BANKING

IntangibilityIntangibility

-- No physical Attribute to touch, feel or sense any service.No physical Attribute to touch, feel or sense any service.

InseparabilityInseparability

-- Cannot be separated from CreatorCannot be separated from Creator--Seller of the Services.Seller of the Services.

Inventory/PerishabilityInventory/Perishability

-- Cannot be stored, saved and then used later.Cannot be stored, saved and then used later.

Inconsistency/VariabilityInconsistency/Variability

-- Different customers may get different levels of servicesDifferent customers may get different levels of services


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7 PS OF7 PS OFBANKING SECTORBANKING SECTOR


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PRODUCTMIXPRODUCTMIX

It includes all different product lines a company offers to

its customers.

Deposits

Investments

Anywhere Banking

Loans

Cards

Mobile Banking

Demat Account

NRI Services


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PRICE MIXPRICE MIX

It is nothing but the interest rates charged by the different

banks.

ATM Card Issue Free 2 ATM cards issued

free if it joint account

Add on Card RS. 100 Beyond 2 cards

Duplicate Card Rs. 100


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Other General ChargesOther General Charges

Current Account Savings Account

Transaction

Charges

NIL NIL

Charges for issue of

Cheques book

NIL NIL

Issue of duplicate

statement

Rs. 25 per page Rs. 25 per page

Account closure Rs.100 Rs.100


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The Most Favorable Pricing StrategyThe Most Favorable Pricing Strategy


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PLACE MIXPLACE MIX

It is the location analysis for banks branches. Some of thefactors affecting the location analysis are :-

he ra e rea

Po lation haracteristics

ommercial Str ct reProximity to other con enient O tlets

eal Estate ates

Proximity to P blic rans ortation

ocation of om etition

Visibility

ccess


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PROMOTIONMIXPROMOTIONMIX

It is making the customer more and more aware of the

services and benefits provided by the banks.

Different ways of promotion are :-

ublic Relations

ersonal Selling

Sales romotion

Word-of-mouth romotion

Telemarketing

Internet


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PEOPLEPEOPLE

An essential ingredient to any serviceAn essential ingredient to any serviceprovision is the use of appropriateprovision is the use of appropriatestaff and people.staff and people. RecruitingRecruiting the rightthe rightstaff andstaff and trainingtraining them appropriatelythem appropriatelyin the delivery of their service isin the delivery of their service isessential if the organisation wants toessential if the organisation wants toobtain a form of competitiveobtain a form of competitiveadvantage. Consumers makeadvantage. Consumers make

judgements and deliver perceptions ofjudgements and deliver perceptions ofthe service based on the employeesthe service based on the employees

they interact with. Staff should havethey interact with. Staff should havethe appropriate interpersonal skills,the appropriate interpersonal skills,aptititude, and service knowledge toaptititude, and service knowledge toprovide the service that consumers areprovide the service that consumers arepaying for.paying for.


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PROCESSPROCESS

The process mix constitutes the overall procedureThe process mix constitutes the overall procedureinvolved in using the services offered by the bank. Ainvolved in using the services offered by the bank. Aprocess should be such that the customer is easilyprocess should be such that the customer is easily

able to understand and easy to follow.able to understand and easy to follow.

LetsLets taketake forfor exampleexample thethe processprocess forfor applicationapplication forforaa carcar loanloan..

NowNow thisthis mainlymainly involvesinvolves 33 thingsthings..

1.1. ProducingProducing ofof properproper documentsdocuments2.2. FillingFilling upup ofof applicationapplication formform3.3. PayingPaying forfor thethe initialinitial downdown paymentpayment..

TheThe smallersmaller andand simplersimpler thethe procedure,procedure, thethe betterbetterthethe rocess,rocess, andand thethe customercustomer willwill bebe moremore satisfiedsatisfied..


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PHYSICAL EVIDENCEPHYSICAL EVIDENCE

Physical evidence is the overall layout of thePhysical evidence is the overall layout of theplace i.e. how the entire bank has beenplace i.e. how the entire bank has beendesigned. Physical evidence refers to alldesigned. Physical evidence refers to allthose factors that help make the processthose factors that help make the process

much easier and smoother.much easier and smoother. For example, in case of a bank, the physicalFor example, in case of a bank, the physical

evidence would be the placement of theevidence would be the placement of thecustomer service executives desk, or thecustomer service executives desk, or the

location of the place for depositing cheques.location of the place for depositing cheques.The more the bank does to make the serviceThe more the bank does to make the serviceeasiereasier

and better the more satisfied will be theand better the more satisfied will be thecustomer.customer.


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PESTANALYSISPESTANALYSISPolitical/legal environment AnalysisPolitical/legal environment Analysis

Economic environment AnalysisEconomic environment Analysis

Social environmentSocial environment AnalysisAnalysis

Technological environmentTechnological environment AnalysisAnalysis


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Political/legal environmentPolitical/legal environment

Government and RBI policiesGovernment and RBI policies

Declaration of measures like waiver of shortDeclaration of measures like waiver of short--termterm

agricultural loans, to attract the farmers votes.agricultural loans, to attract the farmers votes.Exploitation of various banks in the cooperativeExploitation of various banks in the cooperative

sector, open and run by the politicians.sector, open and run by the politicians.

Chairmen of the various banks appointed by the govt.Chairmen of the various banks appointed by the govt.

Various policies are framed by the RBI forVarious policies are framed by the RBI forbetter control over the banks.better control over the banks.


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Economic environmentEconomic environment

Existence of banking in one form or the other from timeExistence of banking in one form or the other from timeto time.to time.

Commencement of the present era in banking withCommencement of the present era in banking withestablishment of bank of Bengal in 1809 under theestablishment of bank of Bengal in 1809 under the

government charter and with government participationgovernment charter and with government participationin share capital.in share capital.

Every year RBI declares its 6 monthly policy andEvery year RBI declares its 6 monthly policy andaccordingly the various measures and rates areaccordingly the various measures and rates are

implemented which has an impact on the bankingimplemented which has an impact on the bankingsector. 3sector. 3

Union budget affects the banking sector to boost theUnion budget affects the banking sector to boost theeconomy by giving certain concessions or facilities. Foreconomy by giving certain concessions or facilities. Fore.g. encouragement of the savings in the Budget,e.g. encouragement of the savings in the Budget,

relaxation of the FDI limits.relaxation of the FDI limits.


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Social environmentSocial environment

Nationalization of the banks in 1969Nationalization of the banks in 1969 Only big business houses and the effluent sections of the societyOnly big business houses and the effluent sections of the societygetting benefits of banking in Indiagetting benefits of banking in India

To adopt the social development in the banking sector and speedyTo adopt the social development in the banking sector and speedyeconomic progress, consistent with social justice.economic progress, consistent with social justice.

Help economically weaker section of the society and provide needHelp economically weaker section of the society and provide need--based finance to all the sectors of the economy with flexible andbased finance to all the sectors of the economy with flexible andliberal attitude.liberal attitude.e.g. various types of loans to farmers, working women,e.g. various types of loans to farmers, working women,professionals, traders, education loans, housing loans, consumerprofessionals, traders, education loans, housing loans, consumer

loans etc.loans etc.

Banks having big clients or big companies have to provide servicesBanks having big clients or big companies have to provide serviceslike personalized banking to their clients.like personalized banking to their clients.

Banks have changed the culture of human life in India and haveBanks have changed the culture of human life in India and have

made life much easier for the people.made life much easier for the people.


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Technological environmentTechnological environment

Much important and wider role of technology in banks internalMuch important and wider role of technology in banks internalcontrol mechanisms and services offered by them.control mechanisms and services offered by them.

Change of the concept of branch banking to anywhere banking.Change of the concept of branch banking to anywhere banking.

An era of cashless society with electronicAn era of cashless society with electronic--purse.purse.

Use of SMS and Internet as major tool of promotions and utility toUse of SMS and Internet as major tool of promotions and utility tocustomers.customers.

Simplified operations and customer handling.Simplified operations and customer handling.

Home banking and Internet banking.Home banking and Internet banking.

All these technological changes have forced the bankersAll these technological changes have forced the bankersto adopt Customerto adopt Customer--Based Approach instead of ProductBased Approach instead of Product--Based Approach.Based Approach.


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RATER AnalysisRATER Analysis -- Indian OverseasIndian OverseasBankBank

RELIABILITY

ASSURANCE

TANGIBILITYEMPATHY

RESPONSIVENESS


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ReliabilityReliability

Ability to perform the promised service dependably andAbility to perform the promised service dependably andaccurately.accurately.

No Excuses service delivery.No Excuses service delivery.

Indian Overseas BankIndian Overseas Bank Faces stiff competitionFaces stiff competition Existing customers have faith, loyalty and trust in thisExisting customers have faith, loyalty and trust in this

bank.bank. Provide them best and reliable servicesProvide them best and reliable services

For e.g., no person likes to wait to withdraw his/herFor e.g., no person likes to wait to withdraw his/hermoney. Indian Overseas Bank has ensured that whoevermoney. Indian Overseas Bank has ensured that whoevercomes in for cash withdrawal will receive his/her cashcomes in for cash withdrawal will receive his/her cashwithin five to ten minutes.within five to ten minutes.


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AssuranceAssurance Employees knowledge and courtesy and the ability of the firmEmployees knowledge and courtesy and the ability of the firm

and its employees to inspire trust and confidence.and its employees to inspire trust and confidence. Indian Overseas BankIndian Overseas Bank

Every customer treated with utmost careEvery customer treated with utmost care

Problem solved with great enthusiasm.Problem solved with great enthusiasm. Customers are assuredCustomers are assured the money they invest is securethe money they invest is secure the interest rate that is being provided to them is at par orthe interest rate that is being provided to them is at par or

higher.higher. the money they have invested will be returned to them asthe money they have invested will be returned to them as

and when required with proper interest.and when required with proper interest. Empower their customer contact peopleEmpower their customer contact people Regularly train them in skills to build trust and loyaltyRegularly train them in skills to build trust and loyalty

between employees and customers.between employees and customers. Assigned some of their staff members to build relationshipsAssigned some of their staff members to build relationships

with the customers by getting to know them personally.with the customers by getting to know them personally.


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TangibilityTangibility

The appearances of physical facilities, equipments,The appearances of physical facilities, equipments,personnel and communication materials.personnel and communication materials.

Indian Overseas BankIndian Overseas Bank

Entire premise is airEntire premise is air--conditioned.conditioned. Computerized systems in placeComputerized systems in place -- quick, accurate andquick, accurate and

efficient service can be provided to the customers.efficient service can be provided to the customers. Tables and chairs are conveniently located.Tables and chairs are conveniently located. Personnel always have a cheerful and helping behaviour.Personnel always have a cheerful and helping behaviour.

Entire place done up in bright coloursEntire place done up in bright colours -- customer cancustomer canimmediately feel the warmth and the radiance of theimmediately feel the warmth and the radiance of theplace.place.


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EmpathyEmpathy The caring, individualized attention the firmThe caring, individualized attention the firm

provides its customers.provides its customers.


Employees are always polite humble and helpful.Employees are always polite humble and helpful.

Ready to go out of the way.Ready to go out of the way.

Regularly holds seminars and training workshopsRegularly holds seminars and training workshopsfor employees so that they can understand thefor employees so that they can understand the

consumer better and thus serve them better.consumer better and thus serve them better.


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ResponsivenessResponsiveness

The willingness to help the customer andThe willingness to help the customer andprovide him with immediate and fast service.provide him with immediate and fast service.


Prompt at providing customers with informationPrompt at providing customers with informationand services they seek.and services they seek.

Prompt when it comes to resolving complaints ofPrompt when it comes to resolving complaints ofcustomers.customers.

The customers, in their feedback form,The customers, in their feedback form,mentioned this as one of the most importantmentioned this as one of the most importantfactor that has prompted them to continue withfactor that has prompted them to continue withthis bank.this bank.


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SERVICE RECOVERYSERVICE RECOVERY

Service recovery pertains to the actions taken by an organizationService recovery pertains to the actions taken by an organizationin response to a service failure. When a customer complains, hein response to a service failure. When a customer complains, heexpects 3 types of fairnessexpects 3 types of fairness--

Outcome FairnessOutcome Fairness :: Charging the customer for a service whichCharging the customer for a service whichwas a result of a mistake on banks part.was a result of a mistake on banks part.

ProceduralFairnessProceduralFairness :: No efforts made by any of the employeesNo efforts made by any of the employees

to help the customer.to help the customer.

Interaction fairnessInteraction fairness : Non: Non--fulfillment of the promises to thefulfillment of the promises to thecustomer, lack of apologizing act.customer, lack of apologizing act.


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Complaint HandlingComplaint Handling--HDFC BankHDFC Bank

Even the best firms are going to find themselves facing complaintsEven the best firms are going to find themselves facing complaints

from customers.from customers. How to diffuse them and then turn them into positive experiences forHow to diffuse them and then turn them into positive experiences for

all involved.all involved.

Turned to the airline industry for inspiration.Turned to the airline industry for inspiration.

Maps the customer flow at its branch.Maps the customer flow at its branch.

'May I help you' desk at the reception.'May I help you' desk at the reception.

Efficiency parameters for each subEfficiency parameters for each sub--process.process.

Monitors how long it takes for customer transactions as well asMonitors how long it takes for customer transactions as well ascomplaints to get processed.complaints to get processed.

Moments of truth' surveys modeled after the airline industry'sMoments of truth' surveys modeled after the airline industry'sSatisfaction surveys.Satisfaction surveys.

Believes that unless they change to create convenience for theirBelieves that unless they change to create convenience for theircustomer and add to his brand experience, they will fail to capture thecustomer and add to his brand experience, they will fail to capture theloyalty.loyalty.


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COMPLAINT RESOLUTION MODELCOMPLAINT RESOLUTION MODEL

(CRM) of HDFC Bank(CRM) of HDFC Bank

Not as a mere complaintNot as a mere complaint

but as an issue.but as an issue.

If there is any complaintIf there is any complainteither by an employee oreither by an employee ora customer in anya customer in anybranch; it will be lookedbranch; it will be lookedinto and resolved in 24into and resolved in 24

hours.hours.


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Presented by..

1) Daljit Singh Arora 03

2) Simrat Singh Arora 06

3) Dharamveer Singh Badech 08

4) Simran Kaur Chadha 18

5) Rajvinder Kaur 16

6) Gobind Kohli 46


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