Vishal Project Final

8/3/2019 Vishal Project Final

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International Institute of Planning & Management

Bangalore

Subject : Thesis

Project :Comparative Study of Promotional Strategies adoptedby Public and Private Sector Banks in India

Presented By:

Vishal.r

FW 09-2011

Sec B1 (HRM)


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Abstract

Service industry has its own unique characteristics. Marketing mix for services isdesigned to be more descriptive and sophisticated than tangible products. As

marketing strategies are formulated and executed differently for variety of

products, they are also designed differently for variegated services. Marketing

strategies become more crucial when they are executed to design, distribute and

promote banking services. The present study is descriptive in nature and takes out

significant differences in the promotional strategies adopted by private and public

sector banks in India. The study shows noteworthy results and opinions of

customers, which can be very useful for designing effective promotional strategies

for banks. The study reveals remarkable facts connected with customers

perception about promotional tools of both sectors banks and also about the most

effective tools to promote banking services.


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Introduction to Banking

Banking sector in India is of great importance. In present business environment the

promotional efforts are very much essential for the business whether they deal with

any type of product or service. It has been truly said,Doing business without

advertising is like winking at a girl in dark you know what you are doing, but

nobody else does. With same perspective the present study tries to understand

different promotional strategies adopted by private and public sector banks in

India. The study will help to know key promotional techniques for banking

industry from customers perspective. The study will guide to understand criticalareas that banks should consider while positioning their services.

In financial services people are primarily bothered about security of their funds and

default risk. After the year 1969 the deposits of banks increased more than 80

times as a result of the nationalization of banks. Paul Cox (2007) revealed a fact

that financial service providers are not perceived highly trusted, so that they might

have difficulty in selling risk-based products.

The effort to promote banking business is quite distinguished affair. At present, it

is being very tricky due to the changing trends of industry, increasing competition

and efficiency of regulatory environment, and financial system. The complexity in

the banking services is also an issue of vital importance. This is the time when

banks are offering new and innovative services frequently in the market. The

content of promotional tools should make potential customers so much clear about

these services so that they can take the most valuable decision. This can be firmly

said that well-designed promotional strategies are very important to promote

banking services effectively. In the marketing every product or service, customer

satisfaction has been given the prime importance. The most frustrating aspect of

bank marketing was Lack of Management support, Lack of interdepartmental

cooperation, Crisis management, government intrusion and advertising and media

problems (Berry and Lindgreen 1980).


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Sarin and Anil (2007) recommended that manpower in service organizations

must work with the focus of satisfying the customer. Banking should bring out the

areas requiring improvement and further throws light on the measures so that

customers feel should be adopted in order to improve the quality of services.

Promotional packages are very important for financial service industry (Ananda

and Murugaiah 2003) and Orientation of banks should be with a much wider

focus in relation to consumer and market needs, and the consequent marketing

strategies. The challenges put forth by the changes in the environment have to be

effectively tackled to identify consumer needs to provide valuable services

through product innovation (Nair Raman 2006). In banking the temporal and

spatial dimensions are perceived as more important than traditional dimensions

based on outcome and process elements (Kristina Heinonen 2006). Tokunbo

Simbowale (2005) examined the usage of marketing concept and techniques and

recommended that a well-structured marketing department in banks is essential

for profitability and effectiveness. A study by Krishna, Suryanarayana and Srikant

(2005) recommends that promotional strategies should be designed as per the

nature of the services to be promoted. The advertisers should seek a narrative

approach to communicate the service experience rather than a logical,

argumentative approach. Narrative approach involves storytelling methodology

using sequence of events (Sehgal Roli 2004). Location convenience, speed ofservice, competence and friendliness of bank personnel should also be most the

points with maximum value in banking services (Laroche and Manning 1986).

Meidan (1976) had also revealed the fact that about 90% of the respondents

banked at the branch nearest to their home place and place of work.

Convenience, in terms of location, was also found to be the single most important

factor for selecting a branch. It has been also generalized in the studies that

services marketing advertisement is more challenging than the advertising of

tangible products (Ray and Bose 2006). Winning new customers costs 10 timesmore than simply holding onto existing ones, The case should be taken in the

marketing of financial services very seriously (Farrokhtakin, Stavash 2000). While

formulating marketing strategy, a bank should focus attention on consumer

sovereignty, on the attitude, responsiveness and personal skills of their staff, on

revitalizing the marketing department, on top management support to the


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marketing department, and on participation of marketing personnel in key bank

decisions.

Banking Industry is one of the most important service industries which touch the

lives of in millions of people. Its service is unique both in social and economic

points of view of a nation. Earlier the attitude of banking service was that it was

not professional to sell one's services and was unnecessary in the sense that

traditional relationships and quality of products were sufficient to carry forward the

tasks. Before the mid 1950's the banks had no understanding or regard for

marketing. The bank building was created in the image of a Greek Temple to

impress the public about the importance of a bank. The interior was austere and the

teller rarely smiled. Bankers maintained austere dignity and they hardly maintained

friendliness.

It was in the late 1950's that marketing in banking industry emerged in the west. It

emergence was in the form of advertising and promotion concept. At that time,

personal setting could not get a significant place. (.3radually there was a change in

the attitude of bankers, probably in time with the attitudinal change in customers.

The idea of customers' satisfaction began in the late 1950's, flourished in 1960's

and became an integral part of the banking services in the 1970's. But the same

trend could not be applicable, especially in developing countries and to be more

specific in India because of socioeconomic and political reasons.Marketing came into Indian banks in the late 1950's not in the form of marketing

concept but in the forms of advertising and Promotion concept. Soon it was

realized that marketing transcends advertising and friendliness'. Till 1950 it was

recognized that personal selling was not necessary. The bankers went out of their

way to avoid being accused of selling. The bankers even eliminated the word

'selling' and they called the function of customer contact 'business development

function'. The bankers' attitudes and comprehensions about marketing changed in

the 1960's. They began to realize that marketing was a lot more than smiling and

friendly tellers.

The idea of customer convenience began in the late fifties and it flourished in the

1960's. Bankers were beginning to understand the concept of market

Segmentation in the late 1960's. The bank marketing profession Changed

dramatically in the 1970's. Marketing positions in banks were


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created and marketing was accepted as an organizational imperative. To

understand how banking services can be marketed better, one must examine

banking as a service industry, in the content of a swiftly changing environment,

redefine marketing to suit a banker's needs, analyze how the marketing of financial

services differs from that of other products, identify the tasks involved there in and

set forth a series of steps for effective bank marketing. When modern managers the

world over are busy having their marketing skills, bankers in India can ill-afford to

slug it off and keep away from global changes in banking which are in favor of

"Optimal satisfaction of customers' wants and creation of customers for novel

products". As a matter of fact competition was not in existence. On the one side of

the fence was the State Bank of India alone, which is enjoying Government,

ownership and on the other side were private Commercial Banks, local by

orientation, primarily servicing the interest of the controlling business houses.

Therefore neither the State Bank nor the others cared much for the public.

Furthermore, their service is confirmed to a limited range of services whichincluded Current Accounts, Term Deposit Accounts and Savings Bank Accounts in

Deposit Area. In the area of advances, limits were sanctioned on the basis of

security by way of lock and key accounts and bills, purchased limits; their

miscellaneous services included issuance of drafts, collection of outstation

cheques, executing standing instructions and lockers facility at a few centres. It

was the phase of class banking and even the communication through the media was

looked down upon with contempt as something against the tenets of banking

culture.

Even the advertisements released till 1966 were very few4.After nationalization of

14 major commercial banks in 1969, banking system in India is no longer the

exclusive preserve of a few Industrial Houses or business families and has become

a very important instrument of socio-economic changes5. Bankers, after

nationalization, woke up from their splendid isolation and found themselves placed

in a highly competitive and rapidly changing environment with competition

becoming fierce day by day.

The traditional description hardly suffices today's needs. Due to this, banks

approaches towards customers and market underwent changes and focus was

gradually shifted to marketing their products.Even the economist's view that bankers are creditors of money and not mere

purveyors of credit does little justice to the present-day bankers' pivotal role in our

society. Today banks are virtually becoming

"Financial Supermarket" for their customers6. Banks were product oriented

organizations, placing before the prospective customer their range of services,

expecting him to choose, presuming that the customer had the knowledge, time,


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interest and skill to pick out the services that would suit him. Along with it, banks

also became conscious of their corporate image and its projections and this

introduced the public relations philosophy in banks with the purpose of image

projection.

The first major step in the direction of marketing was initiated by the State Bank of

India in 1972, when it recognized itself on the basis of major market segments,

dividing the customers on the basis of activity and carved out four major market

segments. They are commercial and institutional segment, small industries and

small business segment, agriculture segment and personal and services banking

segment. The new organizational framework embodied the principle that the

existence of an organization primarily depends up on the satisfaction of customer

needs. The hallmark of the reorganized setup was customer orientation.It aimed at

- having a t~.)tavl iew of customers needs.

- meeting the identified needs in the best possible manner.

- Identification of potential customers, and

- conducting activities at the branches on the basis of carved out

market segments instead of job wise.

By 1974. The environment became more demanding with the emphasis on mass

banking and canalization of credit into priority areas and lending at differential

rates of interest to the weaker sections of the society. This placed strains on the

profitability of banks which led to keen competition, which is detrimental to the

banking system in the ultimate analysis. This time even though banks were talking

of marketing, they were essentially selling. A notable change during the period was

related to two major components, that is product and promotion. The other two 'Ps'

that is price and place were highly controlled by central banking authority.

Banking began to offer profit security regular income, retirement benefits, money

for marriage of the daughter, education tor growing children etc. It was in the earl)

1980's that banks realized that marketing was more than that. They started thinking

in terms of product development, market penetration and market development.

Moreover banks also accelerated the process of equipping their staff withmarketing capabilities in terms of both skill and attitude through internal and

external training.


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Through the continuous modification and rectification in banking and

implementation of financial sector reforms as per the recommendation of the

committee on Financial system the functioning of banks in India has undergone

dramatic changes. Starting from very conservative traditional banking where the

service of banks was confined to a few in the society, now due to liberalization and

privatization, a 'U' turn has taken place in Indian banking. The hallmark of the

changed concept aimed at having a full view of customers' needs. 'That is,

fulfilling the identified needs in the best possible manner by required service.

These spleen did changes have three phases.

They are

- Traditional banking period

- Development banking period, and

- Bank marketing period


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Marketing strategy

It is a process that can allow an organization to concentrate its limited resources on

the greatest opportunities to increase sales and achieve a sustainable competitive

advantage. A marketing strategy should be centered around the key concept that

customer satisfaction is the main goal.

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and dominance of

a targeted market niche. A marketing strategy combines product development,

promotion, distribution, pricing, relationship management and other elements;

identifies the firm's marketing goals, and explains how they will be achieved,

ideally within a stated timeframe. Marketing strategy determines the choice of

target market segments, positioning, marketing mix, and allocation of resources. It

is most effective when it is an integral component of overall firm strategy, defining

how the organization will successfully engage customers, prospects, and

competitors in the market arena. Corporate strategies, corporate missions, and

corporate goals. As the customer constitutes the source of a company's revenue,

marketing strategy is closely linked with sales. A key component of marketing

strategy is often to keep marketing in line with a company's overarching mission

statement.


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Types of strategies

Marketing strategies may differ depending on the unique situation of the individual

business. However there are a number of ways of categorizing some generic

strategies. A brief description of the most common categorizing schemes is

presented below:

Strategies based on market dominance - In this scheme, firms are classifiedbased on their market share or dominance of an industry. Typically there are

four types of market dominance strategies:

Leader Challenger Follower Niches

Porter generic strategies - strategy on the dimensions of strategic scopeand strategic strength. Strategic scope refers to the market penetration while

strategic strength refers to the firms sustainable competitive advantage. The

generic strategy framework (porter 1984) comprises two alternatives each

with two alternative scopes. These are Differentiation and low-cost

leadership each with a dimension of Focus-broad or narrow.

Product differentiation (broad) Cost leadership (broad) Market segmentation (narrow)


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Innovation strategies - This deals with the firm's rate of the new productdevelopment and business model innovation. It asks whether the company is

on the cutting edge of technology and business innovation. There are three

types:

Pioneers Close followers Late followers

Growth strategies - In this scheme we ask the question, How should the firm

grow? There are a number of different ways of answering that question, but

the most common gives four answers:

Horizontal integration Vertical integration Diversification Intensification


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MARKETING MIX

Meaning and Definition

Marketing Mix means to collect and mix the resources of marketing in the manner

that objects of the enterprise may be achieved and maximum satisfaction may be

provided to the consumers. The term marketing mix is used to describe a

combination of four elements the product, price, physical distribution and

promotion. These are popularly known as Four Ps. A brief description of the

four elements of marketing mix (Four Ps) is.

Product: The product itself is the first element. Products most satisfy consumerneeds. The management must, first decide the products to be produced, by

knowing the needs of the consumers.

Price: The second element to affect the volume of sales is the price. The marketor announced amount of money asked from a buyer is known as basic value

placed on a product.


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Promotion: The product may be known to the consumers. Firms mustundertake promotion work-advertising, publicity, personal selling etc. which are

the major activities.

Place: Physical distribution is the delivery of products at the rights time andat the right place. The distribution mix is the combination of decisions relating

to marketing channels, storage facility, inventory control, location

transportation warehousing etc.

MARKETING IN BANKING

Marketing approach in banking sector had taken significance after 1950 in western

countries and then after 1980 in Turkey. New banking perceptiveness oriented

toward market had influenced banks to create new market. Banks had started toperform marketing and planning techniques in banking in order to be able to offer

their new services efficiently. Marketing scope in banking sector should be

considered under the service marketing framework. Performed marketing strategy

is the case which is determination of the place of financial institutions on

customers mind. Bank marketing does not only include service selling of the bank

but also is the function which gets personality and image for bank on its

customers mind. On the other hand, financial marketing is the function which

relates uncongenitalies, differences and non similar applications between financial

institutions and judgment standards of their customers.


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The reasons for marketing scope to have importance in banking and for banks tointerest in marketing subject can be arranged as:

Change in demographic structure: Differentiation of population in the number

and composition affect quality and attribute of customer whom benefits from

banking services. Intense competition in financial service sector: The competition

became intense due to the growing international banking perceptiveness and

recently being none limiting for new enterprises in the sector. Increase in

liberalization of interest rates has intensified the competition. Banks wish for

increasing profit: Banks have to increase their profits to create new markets, to

protect and develop their market shares and to survive on the basis of intense

competition and demographic chance levels. The marketing comprehension that is

performed by banks since 1950 can be shown as in following five stages:

1. Promotion oriented marketing comprehension

2. Marketing comprehension based on having close relations for customers

3. Reformist marketing comprehension

4. Marketing comprehension that focused on specializing in certain areas

5. Research, planning and control oriented marketing comprehension


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THE MARKETING MIX IN BANKING SECTOR

SERVICE

Recently, banks are in a period that they earn money in servicing beyond selling

money. The prestige is get as they offer their services to the masses. Like other

services, banking services are also intangible. Banking services are about the

money in different types and attributes like lending, depositing and transferring

procedures. These intangible services are shaped in contracts. The structure of

banking services affects the success of institution in long term. Besides the basic

attributes like speed, security and ease in banking services, the rights like

consultancy for services to be compounded are also preferred.

PRICE

The price which is an important component of marketing mix is named differentlyin the base of transaction exchange that it takes place. Banks have to estimate the

prices of their services offered. By performing this, they keep their relations with

extant customers and take new ones. The prices in banking have names like

interest, commission and expenses. Price is the sole element of marketing variables

that create earnings, while others cause expenditure. While marketing mix

elements other than price affect sales volume, price affect both profit and sales

volume directly. Banks should be very careful in determining their prices and price

policies. Because mistakes in pricing cause customers shift toward the rivals

offering likewise services.


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DISTRIBUTION

The complexities of banking services are resulted from different kinds of them.The most important feature of banking is the persuasion of customers benefiting

from services. Most banks services are complex in attribute and when this feature

joins the intangibility characteristics, offerings take also mental intangibility in

addition to physical intangibility. On the other hand, value of service and benefits

taken from it mostly depend on knowledge, capability and participation of

customers besides features of offerings. This is resulted from the fact that

production and consumption have non separable characteristics in those services.

Most authors argue that those features of banking services makes personal

interaction between customer and bank obligatory and the direct distribution is the

sole alternative. Due to this reason, like preceding applications in recent years,

branch offices use traditional method in distribution of banking services.

PROMOTION

One of the most important element of marketing mix of services is promotion

which is consist of personal selling, advertising, public relations, and selling

promotional tools.


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PERSONAL SELLING

Due to the characteristics of banking services, personal selling is the way that most

banks prefer in expanding selling and use of them. Personal selling occurs in two

ways. First occurs in a way that customer and banker perform interaction face to

face at branch office. In this case, whole personnel, bank employees, chief and

office manager, takes part in selling. Second occurs in a way that customer

representatives go to customers place. Customer representatives are specialist in

banks services to be offered and they shape the relationship between bank and

customer.

ADVERTISING

Banks have too many goals which they want to achieve. Those goals are for

accomplishing the objectives as follows in a way that banks develop advertising

campaigns and use media.

1. Conceive customers to examine all kinds of services that banks offer

2. Increase use of services

3. Create well fit image about banks and services

4. Change customers attitudes

5. Introduce services of banks

6. Support personal selling

7. Emphasize well service


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Advertising media and channels that banks prefer are newspaper, magazine, radio,

direct posting and outdoor ads and TV commercials. In the selection of media,

target market should be determined and the media that reach this target easily and

cheaply must be preferred.

Banks should care about following criteria for selection of media.:

1. Which media the target market prefer

2. Characteristics of service

3. Content of message

4. Cost

5. Situation of rivals

PUBLIC RELATIONS

Public relations in banking should provide;

1. Establishing most effective communication system

2. Creating sympathy about relationship between bank and customer

3. Giving broadest information about activities of bank.

It is observed that the banks in Turkey perform their own publications, magazine

and sponsoring activities.


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SELLING PROMOTIONAL TOOLS

Another element of the promotion mixes of banks is improvement of selling.

Mostly used selling improvement tools are layout at selling point, rewarding

personnel, seminaries, special gifts, premiums, contests.

DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF

SERVICE MARKETING

Marketing scope develops day to day. These developments carry special

significance for service sector in which customer and service producer interact

closely.

INTERNAL MARKETING

Especially in service sector like external relations, internal relations also have

significance. It requires finding and keeping successful personnel. For personnel of

the organization to be considered their own goals and service situation, values ofthe organization are sold to them. The communication techniques carried out for

customers are also performed for the personnel in internal marketing and this two

techniques go together. For example, the ads that aim creating firms image should

be prepared with regarding to audience which is composed of firms personnel.

NETWORK MARKETING

This approach takes the organization as a sequence which involves producer and

customer that market services to each other in the organization. In this structure,

the activities of departments that compose organization would be more focused on

market. This will also affect the structure of organization.


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RELATIONSHIP MARKETING

It was mentioned that close relationship was established between producer andcustomer in service sector. In addition to this, life cycle of a customer relationship

was also mentioned under the product outline. According to the researchers,

maintaining the relationship for extant customer increases the profit of firms. It

should be emphasized that this fact has an importance for service sector.


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Objectives of the Study

(i) To know about the various promotional tools of Private and Public sectorsbanks.

(ii) To make a comparative analysis of customers perception for promotional

strategies of private and public sector banks.

(iii) To find out the key promotional tools for banking services on the basis of

customers responses.

Research MethodologyThe present study is descriptive in nature, which is based on empirical evidences in

the form of primary data. The data collection has been done form respondents who

are presently availing banking services with a sample size of 300. The respondents

were approached with systematic random sampling where every 3rd visitor was

approached when he/she was coming outside bank after availing the service. The

response rate was found to be 65%.

The study includes the customers of 10 leading banks out of which 5 are from

public sector (SBI and Associates, PNB, CBI, OBC and Bank of Baroda) and 5

from private sector (ICICI, HDFC, UTI, IDBI, Kotak Mahindra Bank)

A structured questionnaire has been used for collection of data comprising open

and close-ended questions. Likert scale has been used as a scaling technique in the

questionnaire. Structured interviews have been taken of 2-2 employees of the

above stated banks for getting the initial information about the promotional

strategies adopted by leading private and public sector banks in India.


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Data Analysis and Interpretation

The responses have been captured in a scale of 5 to 1. 5 for Strongly Agreed and

1 is for Strongly Disagreed. Similarly in other questions 5 is forVery

Effective and 1 is forNot at all Effective. Table 1 show that the Promotional

Strategies of Private and Public Sector banks are almost similar. Both types of

banks take the help of almost all type of media to promote their services. The first

objective of the study deals with the analysis of the promotional strategies adopted

by both. The analysis is done on the basis of review of existing literature and with

personal contact and informal interview with the personnel of the private andpublic sector banks. The major difference in the promotional strategies adopted by

banks is in the two techniques of the promotion and they are Personal Selling

and Direct Marketing. The difference is that Public sector banks do not adopt the

strategies of promotion as Personal Selling and Direct Marketing; on the other

hand the same are adopted by Private Sector Banks. The reasons for this is high

reliability and less profit orientation of public sector banks, public sector banks do

not go for innovative strategies of promotion, however they go for interactive

marketing through internet but that is not promoted so much like private sector

banks.This has been demonstrated in Table 2 that the Respondents in the present study

are mixed and are seem representative, they include farmers (19%), shopkeepers,

students (31%), highly (23%) as well as low educated (25%) persons. Table 3

states that the maximum respondents (48.33%) were availing the services of

Saving Accounts, which is followed by current account service holders (28.33),

only few are availing the service of fixed deposits (11%) and Loans (7%). The loan

takers also include the students in the form of education loans.

Most of the respondents answered that they were influenced by Friends and

Relatives (42%) for choosing the services from a particular bank. This is the power

of word of mouth. This shows that the impact of opinion leadership and referencegroup is very much in banking services however advertising (21%) also affects the

decision of selecting a particular bank Table 4. As per the responses given in Table

5. The difference between public and private sector banks is known to the

maximum number of people (85%). 15% of the respondents are not aware about

the difference between public and private sector banks.


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Table 6 gives a clear idea about the question related to the perception of customers

about private and public sector banks the results are not so surprising. People think

that the advertisements and promotional efforts of Private sector banks are more

effective than Public sector banks with a weighted mean score 3.51 for 5. The

respondents are strongly agreed with the statement that Private Sector Banks do

more advertisement than Public Sector Banks (3.81). Further, one more aspect, that

is very important in the case of services and especially in financial services i.e.

Truthfulness, and completeness in advertising. The respondents look agree with the

statement that the information provided by Public Sector Banks is more reliable

than private sector banks because that is truer and complete (3.62).

This has been narrated in Table 7 Private Sector Banks are slightly better in

catching the awareness of people than Public Sector Banks in mass media

advertising. 69% respondents accepted that they have exposure of advertising on

television and 61% of advertising in newspapers in case of private sector banks.

However in the case of public sector banks it is 66% and 52% respectively.Table 8 gives descriptive idea about the exposure of various promotions. In

outdoor advertising and online marketing, private sectors banks are again more

successful to spread awareness than public sector banks, but the total awareness

level has stayed low. In public sector banks 21% of the respondents were accepted

that they have an exposure of outdoor advertising while the respondents for it in

case of private sector banks were 28%. As online marketing is not so much

adopted by public sector banks only 7% customers have the exposure of the same,

while for private sectors banks the exposure of respondents is 17%.

When the respondents were asked the question about the exposure of tele calling

and personal selling the responses did not show high exposure. Almost 26% People

are exposed to tele calling and 30% are exposed to any salesperson of the bank.

The last but the most important aspect has been discussed in Table 9. When

customers were asked to tell the most effective tool for promotion of banking

services, very meaningful results were came out of the study. The most effective

tools in respondents opinion is advertising on television with weighted mean

value 3.84 and advertising in newspapers was at second place (3.59). This is

followed by personal selling (3.43) and advertising in journals and magazines

(3.26). Advertising on Television has been given the first rank and Publicity (2.25)

is given the last. However there is no so significant variability in the factors if wemove from one. The variability as per standard deviation is 0.5274.


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Table: 1 Promotional strategies by public and private sector banks

Promotional Tool Public Sector Bank Private Sector Bank

Advertising on

Television

Yes Yes

Advertising in

Newspapers

Yes Yes

Personal

Selling/Personal

Contact

No Yes

In Journals andMagazines

Yes Yes

Tele Calling by Sales

Persons

No Yes

Outdoor Advertising

Hoardings etc

Yes Yes

Schemes/Gifts/Prizes

forCustomers

No Yes

Public

Relations/Events/Programmes

Yes Yes

Online Marketing/E-

Mail

Yes But Few Yes

Pamphlets/Propaganda No Yes

Letter/Mail/ with

Relevant Material

No Yes

Publishing News in Newspapers Yes But


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Suggestions and Recommendations

The suggestions have been assembled on the basis of respondents opinion. Banks

must concentrate on the innovative and attractive mass media advertising. Both

sectors banks must do practical efforts for the awareness of Internet banking topromote their services in a modern manner. There is a need to make outdoor

advertising more effective. The ads should be placed where more people visit and

wait for some time. Banks should also go for the social marketing because this

shows the affections with the society and forms a better corporate image. This will

also help the banks to get a little away from their typical financial and rational

image. Public Sector Banks must concentrate to make their promotional campaigns

more effective and attractive. These banks are enjoying high reliability; the same

should be utilized in promotional strategies. Now the time has come that public

sectors banks should also think for personal selling and tele calling. Public sectorbanks lack in quality in the respondents opinion. They must ensure their

customers better quality with the help of promotional tools. Private sector banks

have less reliability than public sector banks. They must take insert transparency in

their schemes. Private Sector Banks should enhance the effectiveness of personal

selling as the respondents have also considered it as a very good promotional tool.


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Managerial and Academic Implications of the Study

Results in present study are in favor of mass media advertising. This has been

generalized that the message can be conveyed to a retail customer through mass

media in the best way. The study gives so many key areas to marketers to focus in

their promotional campaigns. There is a significant contribution of the study in

academic literature. It reveals certain very important facts about the customers

perspectives about promotional tools for banking services. The same information

can be quoted while imparting knowledge with the students about the same field.

Scope for Future ResearchThe study is related to the districts of Karnataka. The future researches can be

conducted by taking other areas as population. A comparative analysis of Semi-

Urban areas and other parts can be done of promotional strategies. The future

researches may include public, private, foreign banks exclusively on the same

topic. As information technology is now entering into villages and semi urban

areas also, the scholars may concentrate on carrying out research on direct

marketing and Internet marketing tools as well as Internet advertising of banking

services. Further the various components of promotional mix can be studied

exclusively.


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38

Conclusion

Promotion has different aspects for different industries, products and services. Its

final goal is to communicate positive word of mouth among existing and potential

customers about the corporate, product and service.

In banking the customers must be ensured that services provided by a particular

bank have been designed to give them maximum value of their money. In brief, it

can be said that in India wherever the dilemma of private and public sector comes

always two things are considered.

Public sector is more reliable but not so good in the quality and innovativeness.

Private sector is not considered so reliable, there may be hidden charges in theservices and false and misleading information in the advertising but they are better

in the service quality.

Private sector banks must be truer and reliable first, they have to win the hearts of

the customers, after that they will be able to win minds as well.

In traditional tools of promotion both sectors banks are almost same.

Private Sector banks are adopting more push strategies to attract and catch the

customers and this creates the difference between promotional strategies adopted

by Public and Private Sector Banks.


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.

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