SERVICE MARKETING- HDFC BANK

MADE BYBBA 4501/08-MRINAL KUMARBBA 451/08-SHILPA KAPOOR

INTRODUCTION TO SERVICES MARKETING

Form of marketing which focuses on selling services. Services are deeds, processes and performance. Intangible, but may have a tangible component. Generally produced and consumed at the same time. It does not result in ownership.

EXAMPLES OF SERVICES INDUSTRIES

1. Health Care: The health care industry includes hospitals, medical practice, dentistry, eye care etc.

2. Professional Services: Accounting, legal, architectural etc are included in the category of professional services.

3. Financial Services: This industry includes banking, investment, insurance, advising etc.

4. Hospitality: This service industry includes restaurant, hotel, motel, bed and breakfast, ski resort, rafting etc.

5. Travel: Travel industry includes airlines, travel agencies, theme parks etc.

6. Others: Some other examples of service industries can be hair styling, pest control, plumbing, lawn maintenance, counselling services, health club etc.

Challenges in Service Marketing

• Defining and improving quality• Communicating and testing new services• Motivating and sustaining employee commitment• Communicating and maintaining a consistent image• Setting prices

Difference Between Goods and Services

Physical goods Services

tangible intangible

homogeneous heterogeneous

Production and distribution are separated from consumption

Production, distribution and consumption are simultaneous processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-seller interaction

Customers do not participate in the production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership

CLASSIFICATION OF SERVICES

Services can be classified on the following basis:

• Classification by Industry• Classification by Target Effect• Skill level of service provider• Labor intensiveness

Classification By Industry

a. Education

b. Telecommunications

c. Finance & Insurance

d. Transportation

e. Public utilities

f. Government services

g. Health

h. Hospitability Industry

i. Business services

j. Trading

k. Entertainment

Classification By Target Effect

1. People Processing: Services aimed at physical care e.g. Healthcare, clinics, restaurant, hospitals, hair stylists, fitness centers

2. Mental Stimulus Processing: Services aimed at mind of customer e.g. Education, information, entertainment, consulting, psychotherapy

3. Possession Processing: Services aimed at physical possession & tangible assets e.g. repair & maintenance, laundry, landscaping, house cleaning services

4. Information Processing : Services for intangible assets e.g. Banking, legal consultation, brokerage, financial services.

Skill level of service provider

•Teacher

•Doctor

•Engineer

•Accountant

Labor intensiveness

1. Mechanic 2. Electrician

3 .Labor

4. Plumber

5. Artisan

HDFC BANK

• The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

• HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite

• The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values –

Operational Excellence, Customer Focus, Product Leadership and People.

• The Bank at present has an enviable network of 1,780 branches spread in 833 cities across India. All branches are linked on an online real-time basis.

• Customers in over 500 locations are also serviced through Telephone Banking, Online Banking, Mobile Banking, etc.

Distribution network

• The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products.

• The Bank also has 5,231 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

Technology In Service

• HDFC Bank operates in a highly automated environment in terms of information technology and communication systems.

• All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers.

• Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

• The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank.

• The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses.

• The Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and increase market share.

Business

• HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking ServicesRetail Banking Services Treasury

AWARDS

• IBA Banking Technology Awards 2010 Winner 1) Technology Bank of the Year2) Best Online Bank3) Best Customer Initiative4) Best Use of Business Intelligence5) Best Risk Management System

• IDC FIIA Awards 2011 -Excellence in Customer Experience