Bank Marketing

Bank Marketing

The new concept of bank marketing assigned due weightage to customer satisfaction. It is aimed at having a full view of customers needs fulfilling them in the best possible way by required services, identification of potential customers and conducting the activities on the basis of market segmentation. It is said that marketing of banking service is concerned with product, promotion, pricing and place. In addition, an number of experts also advocate in favour of people, process and physical evidence.

Market Segmentation

The bank professionals have to segments the market in such a way that the expectations of all the potential customers are studied in the right perspective and the marketing resources are developed to fulfil the same.

The policy of segmentation helps the professionals in formulating and innovating the policies and at the same time simplifies their task, while formulating and innovating the strategic decisions.

An important criteria for market segmentation is the economic system is which agricultural sector, industrial sector, services sector, household sector, institutional sector and rural sector require due weightage.

Marketing Mix for the Banking Services

The formulation of the marketing mix for the banking services is the prime respnonsible-to the product portfolio, which means, the different types of services/ schemes formulated by the banks.

Product Portfolio for Banks

a.                       Deposits

i.     Time deposit

ii.     Demand deposit

b.                       International Banking

i.     Letters of credit

ii.     Foreign currency

c.                        Consultancy

i.     Tax

ii.     Merchant banking

iii.     Project counselling

iv.    Investment counselling

d.                       Loans and Advances

i.     Agricultural loan

ii.     Vehicle loan

iii.     Educational loan

iv.    Jewel loan

v.     Business loan e. Miscellaneous

i.     Safe-custody

ii.     Credit cards

iii.     Travellers‟   Cheque

iv.    Collections

v.     Gift Cheque

Promotion Mix

In the formulating of marketing mix, the bank professionals see also supposed to blend the promotion mix in which different components of promotion, such as advertising, publicity, sales promotion, word of mouth promotion, personal selling and telemarketing are given due weightage.

Advertisement

While developing advertising he bank has to prepare appeals, slogans and messages and select a suitable media for travelling the messages. There are a number of devices to advertise, such a broadcast media, telecast media and the print media. For promoting the banking business, the print media is found economic as well as effective. The telecast media very much effective, but it is found very expensive. The messages, appeals can be presented in a very effective way.

They have to provide sufficient budget and test the effectiveness of advertisements. Banks need to develop and strengthen the public relation activities to promote their business.

Personal selling

The personal selling is found instrumental in promoting the banking business. It is just another name for persuasion. The banking organizations need to make use of this dimension with the help and cooperation of efficient and personally committed sales people. If the sales people have in-depth knowledge of the sales, dialogue, sales technique behavioral profile of the customers, the task of transforming the dialogue into a business is found easier. This requires an intensive training programme. The personal selling is based on the personal skill of sales people. If they know in detail about the prospects to be interviewed, the questions to be asked by the prospects/ representative of business houses, it is possible for them to convince.

Sales Promotion

The banking organizations also think in favour of promotional incentives both to the bankers as well as the customers. The gift, contests, fairs and shows, discount and commission, entertainment and travelling plans for bankers, additional allowances, low interest financing and retaliatory are to mention a few found instrumental in promoting the banking business.

Word of mouth

The social reformists, popular cine artists, TV artists, opinion leaders, vocal persons may act as word of mouth promoters. A satisfied group of customers is considered to be the most successful hidden promoters. They will commend to others the excellent services of a particular bank or the outstand properties of a particular scheme. Hence it is clear that the word of mouth promotion is an important component of promotion mix, but its instrumentality is influenced by the quality of service offered.

Price Mix

The pricing decisions related to interest and fee or commission charged by banks are found instrumental in motivating the target market. The pricing policy is considered important for raising the number of customers vis-à-vis the accretion of deposits. Of course, there are a number of factors of influence the process, but the key role is placed by the Reserve Bank of India.

Place Mix

A selection of suitable place for the establishment of a branch is significant with the view pint of making the  place accessible  and  in  addition,  the  safety  and  securing  provision  are  also  important.  The management of office is also found significant with the view point of making the services attractive. The furnishing, civic amenities and parking facilities cannot be overlooked. Of late, aesthetic management getting due place in the foreign branches. This draws our attention on beautifying the office and premises and making the place environment friendly. Thus these consideration need due weightage while managing the branches of a bank.

People

Generation of efficiency is substantially influenced by the quality of human resources. The commercial banks need to assign a priority to the development of quality people for the development of an organisation. Hence the first task before the banks is to overhaul the recruitment process. While fixing criteria for selection, they need assign due weightge to the ethical values. Further, the education and training facilities are required to be innovated. Above all due weightge to be given for the development of Human, Humane, Humanism, these three terms if found in the human resources, help developing productive people.

It is high time that the commercial banks con expectations and to meet the global competition.