Download What is bank marketing

Marketing Strategy
Babli
Gokul D
Shraddha Labde
Ravikant Sharma
Prabhat Kumar Sinha
02
11
23
43
48
Marketing = ?
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, services to
create exchanges that satisfy individual and
organizational goals.
Marketing is the art and science of choosing
target markets and getting, keeping, and growing
customers through creating, delivering, and
communicating superior customer value.
What is bank marketing ?
Bank marketing is the aggregate of functions,
directed at providing services to satisfy customer
financials (and other related) needs and wants,
more effectively and efficiently than the
competitors keeping in view the organization
objectives of the bank
Why bank marketing is
necessary ?
• The existence of the bank has little value without
the existence of the customer
• Aim is not only to create and win more and more
customers but also to retain them through
effective customer service
• Appropriate promise to a customer through a
range of services (products) and also to ensure
effective delivery through satisfaction is
necessary
Concept of bank marketing
• Identifying the most profitable market now and in
future
• Assessing the present and future needs of the
customers
• Setting business development goals and making
plans to meet them
• Managing the various services and promoting
them to achieve the plans
• Adapting to a changing environment in the
market place
Simple Marketing System
Communication
Industry
(a collection
of sellers)
Goods/services
Money
Information
Market
(a collection
of Buyers)
The 4 Ps & 4Cs
Marketing
Mix
Convenience
Place
Product
Customer
Solution
Price
Promotion
Customer
Cost
Communication
Marketing Triangle
Customers
Company
Competition
How Do Consumers Choose
Among Products & Services?
• Value - the value or benefits the customers gain
from using the product versus the cost of
obtaining the product.
• Satisfaction - Based on a comparison of
performance and expectations.
– Performance > Expectations => Satisfaction
– Performance < Expectations =>
Dissatisfaction
Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost + Energy
Cost + Psychic Cost
Analysis Of Competition
• Who are your competitors?
• What are their strengths and weaknesses?
• What have been their strategies?
• How are they likely to respond to your Marketing
plan?
Strategic Marketing
•
Strategic marketing management is concerned
with how we will create value for the customer
•
Asks two main questions
– What is the organization’s main activity at a
particular time? – Customer Value
– What are its primary goals and how will these
be achieved? – how will this value be delivered
Business Strategic-Planning
Process
External environment
(Opportunity &
Threat analysis)
Goal Formulation
Business Mission
Internal Environment
(Strength/ Weakness analysis)
Strategy Formulation
Environmental Analysis
Internal Analysis
Competitor
Customer
Supplier
Regulatory
Social/ Political
Technology Know-How
Manufacturing Know-How
Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Identify opportunity
Strength & Weaknesses
Identity Core Competencies
Fit internal Competencies with external opportunities
Firm Strategies
• Are Banks truly marketing-savvy and
customer - centric?
Myth 1 – The larger the range of products,
the more customer-centric I am.
Myth buster – The range of products has
emerged from being
competition-centric.
• Myth 2 – Better technology (read CRM)
leads to better customer service.
Myth buster – Technology
alone does not deliver,
helps people do.
• Myth 3 – Launch a product and the customer
will start using instantly. Give a customer a
card and he will learn how to play with it
immediately
Myth buster – Customers need
To be educated too…
• Myth 4 – The only way to get a customer
is from competition.
Myth buster – Customers
are not only present
where competition is.
• Myth 5 – Just advertise and - You will
sell.
Myth buster – Advertising will only sell,
Not retain customers.
Myth 6 – No difference between marketing &
selling
Myth buster – “Selling focuses on the needs of the
seller; marketing on the needs of the buyer.
Myth 7 – In the absence of relationships ‘trust’
builds financial brands
Myth buster – Trust is not a differentiator at all…
it is the very minimum that the customer expects!!
Current Marketing Strategies
•Referral Services
•Direct mailing
•Cold calling
•Offering items having your brand identity
•Using the media
•Getting celebrities to endorse the product or
services
•Sponsoring events
•Using permission based marketing
Drivers of Customer Satisfaction
• Many aspects of the firm’s value proposition
contribute to customer satisfaction:
– The core product or service offered
– Support services and systems
– The technical performance of the firm
– Interaction with the firm and it employees
– The emotional connection with customers
• Ability to add value and to differentiate as a
firm focuses more on the top levels
Stages of Customer Interaction
Rural Bank Marketing
• Follows 80-20 Parato principal
• Bankers need to understand the rural psychology
• Employing local literate youth for confidence
building
• Banker must be aware of agriculture aspects,
cultural communal aspects, institutional facilities
etc
• Process of changes should be known to him
• Status of various developmental plans should be
known
Rural Strategy
• R : Retail business for rural community as
customer and producer
• U : Urban facilities, investments, infrastructure
• R : Animal husbandry and Allied activities
• A : Agri Productions
• L : Linkages and synergy
Strategies for Rural Areas
•
BY PROPER COMMUNICATION IN INDIAN LANGUAGE
•
BY UNDERSTANDING CULTURAL AND SOCIAL VALUES
•
BY PROVIDING WHAT CUSTOMER WANT
•
BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS
•
BY PROMOTING INDIAN SPORTS TEAM
•
BY DEVELOPING RURAL-SPECIFIC PRODUCTS
•
BY GIVING INDIAN WORDS FOR BRANDS
•
BY EFFECTIVE MEDIA COMMUNICATION
•
BY ADOPTING LOCALISED WAY OF DISTRIBUTING
•
MELAS