service marketing1!97!03
TRANSCRIPT
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Banking Sector
SERVICE MARKETING
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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.
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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.
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PRODUCT & PROMOTION
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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
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7 PS OF BANKING SERVICES
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.
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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.
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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
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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.
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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.
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HSBCS INTERNET ADVERTISEMENT
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PRICING
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7 PS OF BANKING SERVICES
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.
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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.
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PEOPLE & PLACE
Complaints are at an all timelow since we hired Mehta.
He is stone deaf.
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7 PS OF BANKING SERVICES
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.
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7 PS OF BANKING SERVICES
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.
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PROCESS & PHYSICAL EVIDENCE
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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.
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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
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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.
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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
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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.
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THANK YOU
Group 2
Jacob, 2719
Jitin, 2722
Lester, 2727
Mandanna, 2729
Nisha, 2741