Service Marketing1!97!03

8/9/2019 Service Marketing1!97!03

1/24

Banking Sector

SERVICE MARKETING


2/24

INTRODUCTION

The bank is a financial institution which accepts deposits and lends that

money to its customers. As banks deal with their customers finances,

banking is a high-involvement service. Therefore banks need to win the trust

of their customers.

Based on the customer profiles, banks segment their market into retail

banking, corporate banking, personal banking etc.

Needs of the Customer

y Depending on customer needs for finance, the market can also be segmented

into trade finance, consumer finance, etc.y To derive maximum returns and enhance market position effective

management of marketing mix

y Products offered- may be in the core or augmented form.

y Core products- savings bank account or a housing loan.


3/24

INTRODUCTION

y Augmented Products

y internet banking,

y ATMs,

y 24-hour customer service etc.

These augmented services help to differentiate service

offering from those of competitors.


4/24

PRODUCT & PROMOTION


5/24

7 PS OF BANKING SERVICES

Product

In the formulation of service mix, the bank follow two guidelines:

Processing of product to market needs

Processing of market needs to product

Global Trade Solutions

Cash Management

Factoring Solutions

Foreign Exchange Services

Business Current Accounts

Business Loans and Overdrafts

Self Service Marketing

Internet Banking

HSBCs Products and Services


6/24


Promotion

Promotion mix includes

Advertising

Publicity

Sales promotion

Word of mouth promotion

Personal selling

Telemarketing

Each of these services needs to be applied in different degree.


7/24

PROMOTION

Selecting a vehicle

A number of devices to advertise such as broad cast media, telecast media

and print media.

In the face of the budgetary provisions, it is necessary to select a suitablevehicle. For promoting the banking business, the print media is found to be

economic as well as effective.

Advertising

Paid form of communication.

Banking organizations : promotion mix with motto ofinforming, sensing andpersuading the customers.

While advertising it is essential to be aware of key decision making areas sothat instrumentally helps banks at micro and macro levels.


8/24

PROMOTION

Public relations

Banking services: effectiveness of public Relations is found in high magnitude.

It is in this context that difference is found in designing of the mix for

promoting the banking services.

Punch lines

Punch lines or the corporate statement depict the philosophy and attitude of

the bank.

Banks have influential punch lines to attract the customers.

The Worlds Local Bank HSBC BANK

Different People. Different Views


9/24

PROMOTION

Telemarketing

Process of promoting the business with the help of sophisticated communication

network.

Instrumental in advertising the banking services

Banking organizations can use this tool of the promotion mix both for

advertising and selling.

A counter or center as listed in the call numbers may service multi- dimensionalservices.

Likely to play an incremental role in marketing the banking services.


10/24

PROMOTION

Word-Of- Mouth

Much communication about the banking services actually takes place byword- of- mouth information, which is also known as word- of- mouthpromotion.

Helps the banker to know the feedback, which may simplify the task ofimproving the quality of services.

This component of promotion mix is not to influence budget adversely orgenerate additional financial burden.

By improving the quality of services and by offering small gifts to the word-of- mouth promoters, bankers can get more business command in their area.


11/24

HSBCS INTERNET ADVERTISEMENT


12/24

PRICING


13/24


Pricing

y Pricing decisions occupy a place of outstanding significance.

y The pricing decisions include: interest and fee or commission charged by

banks.

y The RBI regulates the rate of interest and the Indian Banks Association

controls other charges. This also complicates the price mix for banking sector.

y The value satisfaction variable should be taken in to consideration.

y The value and satisfaction cannot be quantified in terms of money since it

differs from person to person.


14/24

PRICING

y The banking organizations are required to frame two- fold strategies.

y First, the strategy is concerned with interest and fee charged and the second

strategy is related to the interest paid.

y Since both the strategies throw a vice- versa impact, it is important that banks

attempt to establish a correlation between two. It is essential that both the

buyers as well as the sellers have feeling of winning.


15/24

PEOPLE & PLACE

Complaints are at an all timelow since we hired Mehta.

He is stone deaf.


16/24


People The instrumentality of sophisticated technologies start turning sour if the

human resources are not managed in a right fashion.

Foreign banks are performing fantastically: due to a fair synchronization of

new information technologies and a team of personally committedemployees.

The development of human resources makes the ways for the formation ofhuman capital.

Human resources can be developed through:

Education, Training

psychological tests.

Even incentives can inject efficiency and can motivate people for productiveand qualitative work.


17/24


Placey The place element of the marketing mix refers to making the services available

and accessible to customers.

y Improvements in the availability and accessibility of services have changed theprocess of banking.

y Technological innovations have given rise to modern channels like theInternet, which have helped banks increase business volumes and attract new

customers.

y In case of the Banking industry, Bank branches and ATMs should be situated atconvenient locations.


18/24

PROCESS & PHYSICAL EVIDENCE


19/24

7 Ps OF BANKING SERVICESProcess

Flow of activities:

y All the major activities of banks follow RBI guidelines.

y Adherence to certain rules and principles in the banking operations.

y Activities segregated into various departments accordingly.

Standardization:

y Standardized procedures for typical transactions.

y All banks have some standardization- because of the rules they are subject to.

y Each bank has its standard forms, documentations etc.

y Standardization saves a lot of time behind individual transaction.

Customization:

y Specialty counters at each branch to deal with customers of a particular scheme.

y Customers can select their deposit period among the available alternatives.


20/24

y Number of stores:

y Numbers of steps are usually specified

y

Specific pattern is followed to minimize time taken.

y Simplicity:

y Various functions are segregated.

y Separate counters exist with clear indication. Thus a customer wanting to

deposit money goes to deposits counter and does not mingle elsewhere.

y Procedures simple and efficient.

y Instructions (on boards) in national and regional languages help the customers

further.

y Customer involvement:

y ATM does not involve any bank employees.

y Usual bank transactions- definite customer involvement at some or the other

place because of the money matters and signature required


21/24

Physical Evidence

y The physical evidences: signage, reports, punch lines, other tangibles,employees dress code etc. The companys financial reports are issued to

the customers to emphasis or credibility.

y Dress code for internal customers. This helps the customers to feel the

ease and comfort

y Signage:

y logo by which a person can identify the company.

y significant for creating visualization and corporate identity.

y Tangibles:y Pens, writing pads to the internal customers.

y Passbooks, chequebooks, etc reduce the inherent intangibility of

services.

y Seating area available for waiting customers, ambience etc.


22/24

RECOMMENDATIONS

After visiting a HSBC Branch in MG ROAD, following suggestions are made:

y Multiple Help Desks

y

Strategic positioning of the counters so as to make it more convenient for thecustomers

y Providing a one stop solution to all problems instead using different resource

personnel to solve different issues

y Providing customers with some value added services such as offering

something to drink during the waiting hour

y After Sales Service


23/24

CONCLUSION

y The banking industry has changed drastically over the past decade.

y The banking reforms and the opening of the economy to foreign and private

banks have improved the working of the public sector banks.

y This has resulted in improved service to the customers of the banking industry.

Increased competition and technology have enhanced the quality of service

offered to the customers and also improved the returns for bankers.

y Banking marketing consists of identifying the most profitable markets now and

in future, assessing the present and future needs of customers, setting

business development goals, making plans-all in the context of changing

environment.


24/24

THANK YOU

Group 2

Jacob, 2719

Jitin, 2722

Lester, 2727

Mandanna, 2729

Nisha, 2741

Date post:	29-May-2018
Category:	Documents
Upload:	muffadal0307
View:	214 times
Download:	0 times

Service Marketing1!97!03

Documents