Marketing of Services (Bank)

7/28/2019 Marketing of Services (Bank)

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MARKETING

Dr. Fatima Beena

[email protected]&

Ms. Nivedita Sharma
mailto:[email protected]:[email protected]


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MARKETING CONCEPT

A situation where buyers and sellers of acommodity interact.

Coming together of buyers and sellers of

the same or similar commodities

TYPES OF MARKET

Geographical AreaProduct

Nature of Transaction

Volume of Transaction


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MARKETING

Marketing is the process of determining

consumer demand for a product or service,

motivating its sale and distributing it into

ultimate consumption at a profit

A management functionA Business Philosophy


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EVOLUTION OF MODERN MARKETING

Industrial revolution

Digital revolution

Barter System

Customer and market driven

Wants of customers

CRM

Customer SatisfactionNothing is worthwhile unless it

touches the customer


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MARKETING VS SELLING

MARKETING MANAGEMENT

A process of planning and executing theconception, pricing , promotion and distribution of

goods and services and ides to create

exchanges with target groups that satisfy

customer and organizational objectives.

FUNCTIONS OF MARKETING MANAGEMENT

Analysis

Planning

Implementation

Control


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IMPORTANCE OF MARKETING FOR

INDIAN BANKS

"The relevance of aggressive marketing

in banks has come to the fore as never

before" - M N Goiporia.

CHARACTERISTICS OF SERVICES

IntangibilityInseparability

Heterogeneity

Perishability


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SERVICE

A service is any act or performance that

one party can offer to another that is

essentially intangible and does not resultin the ownership of anything. Its

production may or may not be tied to

physical product.


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S.No. Physical Goods Services

1. Tangible Intangible

2. Homogeneous Heterogeneous3. Product and distribution

separated from

consumption

Production, distribution

and consumption re

simultaneous process

4. A thing A activity5. Core value produced in

factory

Core value produced in

buyer-seller interaction

6. Customers do not

participate in the

production process

Customers participate in

production

7. Can be kept in stock Cannot be kept in stock

8. Transfer of ownership No transfer of ownership


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MAREKTING OF FINANCIAL SERVICES

Intangibility, inseparability and heterogeneity aremanifested at both strategic and tactible levels in

services marketing.

Marketing strategy provides the organisation with

a sustainable competitive advantage in the

markets it operates.

Organization should understand consumer needs

and identifies how those consumers should begrouped into different market segments.

Product attributes, pricing decisions, methods of

distribution and communication should all seek to

reflect the chosen position.


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BANK MARKETING

Provides services

Aimed to satisfy customers needs andwants

Needs and wants may be non financial in

natureCompetitive element, efficiency and

effectiveness

Organizational objectives are still thedriving force

Commercial objective to make profit

Social Objectives


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Essentials for a Banks Success

Cannot exist without customerCreate, win and keep customers

Organizational design should be

oriented to the customerDeliver total satisfaction to the

customer

Customer satisfaction is affected bythe performance of all the personnel of

the bank.


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MARKETING MIXKey concept in the modern marketing

Considered to be core of marketing

It is the set of tools that the firm uses to

pursue its marketing objectives in the

target market

Decisions must be made for both the

distribution channels and the finalconsumers


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Marketing Lessons

Product

Price

Place

Promotion

Consumer

Cost

Convenience

Communication

OLD New


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Wining companies are those that can

meet customer needs economically and

conveniently and with effective

communication

Services Marketing Mix7PsProduct, Price, Place, Promotion, People, Physical

evidence, Process


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PRODUCTA product is anything that can be offered

to a market for attention, acquisition, use

or consumption that might satisfy a want

or need

PRODUCT PERSONALITY

THE CORE

THE ASSOCIATED FEATURESTHE BRAND NAME & LOGO

THE PACKAGE AND LABEL


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PRODUCT LEVELS

Core benefit, basic product, expected

product, Augmented product and Potential

product.

PRODUCT CATEGORY

Durability, tangibility and useProduct item, Product Line, Product mix

Banking product


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PRODUCT PLANNING

The process of product planning consistsof determining the strategies in respect of

various elements. Product Line, Product

Mix, Branding, Packaging and New

product development.

PRODUCT LIFE CYCLE

Introduction, Growth, Maturity, DeclineThe product Life cycle operates at three

levels product level, product sub category,

brand level.


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WEAKNESS OF PLC CONCEPTUndefined concept

No uniform shape

Unpredictable turning points

Unclear implications

PRODUCT STRATEGIES

Strategies based on Product MixStrategies based on Product Life Cycle


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PRODUCT MODIFICATIONQuality Improvement

Feature Improvement

Style Improvement

PRODUCT ELIMINATION

GROWTH STRATEGIES

Intensive

IntegratedDiversification


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NEW PRODUCT DEVELOPMENT

Idea Screening

Concept TestingProduct Development

Test Marketing

Commercial LaunchDIVERSIFICATION

Concentric Diversificationtechnologicallyrelated but the target customers are entirely different

Horizontal Diversification - technologicallyunrelated but the target customers are same

Conglomerate Diversificationno relationshipwith the existing product


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BRANDING

Line Extension

Brand ExtensionMulti brands

New Brands

PACKAGING

Primary PackageSecondary Package

Shipping Package

LABELLING

Identify the product or brandDescribing information

Promoting the product through 'attractive

graphics'


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PRICING

Price is the sum value of all the valuesthat consumers exchange for the benefits

or having or using the product or service

Different forms - Goods bought, hirecharges, tution fees

Dynamic Pricing - Varying prices

Flexibility


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OBJECTIVE OF PRICING

Profit

SurvivalMarket Share

Cash Flow

Status Quo

Product Quality

Communicating Image

Short term/Long term

FACTORS INFLUENCING PRICINGThe Customer's Demand Schedule

The Cost Function and

Competitors Prices


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PRICING METHODS

Mark up PricingVariable costs and contribution for fixed costs

Absorption cost Pricingmargin for profit

Target Return Pricing

Return on the investmentMarginal cost PricingDirect variable costs are fully realized

Only a portion of fixed costs may realized

Perceived Value PricingBuyers perception of value

Value PricingProduct with high value at a fairly low price

Going Rate Pricing

Based on competitors prices


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PRICING METHODS (Contd..)

Auction Type PricingEnglish Auctions

One seller many buyer

Dutch Auctions

Sealed Bid Auctions

Group Pricing.


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Pricing Strategies

Geographical pricingPrice discount and allowancesPsychological pricingPromotional pricing

Loss-leader pricingLoss is covered by sale of other items

Special event pricingCash rebates

Low-interest financingLonger payment termsWarranties and service contractsPsychological discounting


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Pricing Strategies (Contd.)Discriminating pricing

First degreedifferent prices to each customer dependingupon their intensity of demand

Second degree

Lower prices for buyers of a larger volumeThird degree

Customer groupsstudent, seniorcitizen

Product formImage pricing

Channel

Location

Time


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Pricing Strategies (Contd.)

Product-mix pricingProduct line pricing developing product lineCaptive-product pricing main product atlower price, ancillary product at higher price

Two-part pricing

split into fixed and variablecomponent

By-product pricing by-products obtained inproduction of other products

Product-bundling pricingMarket skimming pricingMarket-penetration pricing


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Distribution

Distribution channelMarketing channels are sets of

independent organizationsinvolved in the process ofmaking a product or service

available for use ofconsumption.


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Functions of distribution channelsMarket information

Promotion

Contact

Matching

Negotiation

Product information

Physical distributionFinancing


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Channels typesChannel 1, Channel 2, Channel 3, Channel 4,

Factor influencing channel sectionProduct characteristics

Perishable products

Consumer durablesIndustrial productsMarket characteristicsCustomer characteristicsCompany resourcesCompetitionProduct lines


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Channels for banking productsIntangibility

InseparabilityVariabilityPerishability

Client relationshipBranchesOther channels

Tele-banking

ATMsComputerizationPlastic Cards

Virtual branches and automated video banking


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Intermediaries in banking servicesDSA

Automobile Dealers

Merchant establishmentsPhysical distribution

TransportationWarehousingInventory

Tasks of physical distributionForecasting

Order processingInventory managementStorageProtective packaging

Transportation


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PromotionRole of promotion

PersuasionInformReminding

Reinforcing


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Promotion mix

AdvertisingPersonalselling

SalesPromotion

PublicRelations

DirectMarketing

Blended Mix of Promotion Tools


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Promotion mix strategies

Push strategy -Retailer

Pull strategy - Customer

Factors influencing promotion mix

Types of product/market Buyers readiness stage

PLC stage

Promotion mix integration


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Marketing Information System (MIS)

Features of MIS

Master Plan

Coordination

Future OrientationComputerized Environment

Analyse Quantitative Information

Regular flow of Information


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Functions of MISCollecting and assembling data

Processing of data

Analysis of data

Storage of data

Discrimination of information


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Need of MIS

Complex marketing activity

Knowledge /information explosion

Communication gapPrompt decision

Non-price competition


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Kinds of information needed

Information about market forces

Information about the banks marketbehaviour

Internal information

Components of MIS Internal marketing information

Marketing intelligence system

Marketing research systemAdvantages of MIS


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? ueries


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Marketing of Services (Bank)

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