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.
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 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.
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.
Portfolio for Banks
Loans and Advances
loan e. Miscellaneous
iii. Travellers‟ Cheque
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.
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.
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
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
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.
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.
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.
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.