7 P’s of Marketing

(With Reference To)

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1. Acknowledgement

2. Indian Scenario

3. History of IDBI bank

4. 7 P‟s of marketing

5. Product Mix

6. Price Mix

7. Place Mix

8. Promotion Mix

9. People Mix

10. Process Mix

11. Physical Evidence

12. Conclution

Acknowledgement

We express our sincere thanks to our esteemed institutions “” for this opportunity given to us. We

wish to express our deep sense and gratitude to Professor. We also sincerely thanks to all our

professors and non-technique staff. They have been constant source of inspiration completing the

project. It is our foremost duty to thanks all our respondents and group members who helped us

in completing our project.

INDIAN OUTLOOK & SCENARIO: In order to reduce transaction costs, banks are trying to shift to technology supported

banking from the age-old brick. Many banks introduced Voluntary Retirement Scheme

(VRS) to cut the operational costs. Banks are aggressively trying to become a one-stop

financial shop providing all types of financial services to suit their customer needs. They

are selling products ranging from insurance policies to government securities to increase

their non-interest income. This helps them in acquainting themselves with

products/segments where they do not have any experience. Banks are concentrating on

vehicle loans, housing loans, other fee-based business like guarantees, remittances, goldbanking

etc.Public sector banks have increased their exposure to housing loans by 53% to Rs. 29,456cr.

during the year ended March 31, 2002 as compared to Rs. 19,204 cr. during the earlieryear.

Borrowers are comfortable with the falling interest rate regime. The financiers forhome loans

have slashed their lending rates to align with the current falling interest ratesstructure. This has

made the home loans very attractive. Banks are expected to reach ahigher market share in the

current fiscal as they have a low risk weightage of 50% asagainst 75% for housing finance

companies.

Traditional branch banking has changed. A number of banks have adopted a new modelof branch

banking. The customers avoid standing in queue in branches; instead theyprefer transacting at

offsite locations like supermarkets, petrol pump stations etc. This isthe reason why retail-banking

products like credit cards, vehicle loans are available atoffsite locations also. In fact, this mode is

becoming more popular these days. Banks are making tie-ups with shopping malls and

supermarkets which are offering such retailBanking products to the customers. The banks for

promoting credit card services havealso appointed direct selling agents. Such agents arrange for

door-to-door campaigning ofthese products. These steps are being taken to ensure customer's

convenience, which isthe most important factor on the retail business agenda of banks.Credit

card business is growing in India at the rate of about 25% per year. There are about5.5 billion

cardholders in India but the average amount spent is very low. Slowly peopleare getting

acquainted with the plastic money culture.The urban and metropolitan centers have a large

concentration of corporate andcommercial advances and wholesale deposits. In the rural and

semi-urban centers,deposits and advances are probably mostly retail in nature, considering big-

ticketadvances are non-existent. These customers include all categories of depositors

andborrowers like farmers, households, service and other professionals mainly located inrural

and semi-urban areas.

At present, much of the action in the retail financial services segment is mainly restrictedto urban

and metro centers as now. The entire banking operation in rural areas iscompletely branch-

centered and alternate delivery channels are yet to develop.

The ATMs are the main distribution channel for migration of branch transactions and the

pace also is slow. World over there are over one million machines operating in over 100

countries. India has about 5,000 machines-a small numbers given the country's size.

While the use of ATMs is on the upswing, use of ATMs for services other than cash

withdrawals is yet minimal investors, reveals an extremely low usage of ATMs in India.

As per the study almost 81% of respondents have stated that they have never used an

ATM. The study indicates a higher usage of ATMs in the south zone (28%) as comparedto other

geographical regions. The percentage of customers using ATMs in North is 14East 11 and West

14.

The IDBI Bank

Industrial Development Bank of India Limited, now more popularly known as IDBI

Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The

foundation of the bank was laid down under an Act of Parliament, in July 1964. The main

aim behind the setting up of IDBI was to provide credit and other facilities for the Indian

industry, which was still in the initial stages of growth and development. In February

1976, the ownership of IDBI was transferred to Government of India.

After the transfer of its ownership, IDBI became the main institution, through which the

institutes engaged in financing, promoting and developing industry were to be

coordinated. In January 1992, IDBI accessed domestic retail debt market for the first

time, with innovative Deep Discount Bonds, and registered path-breaking success. The

following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned

subsidiary, to offer a broad range of financial services, including Bond Trading, Equity

Broking, Client Asset Management and Depository Services.

In September 1994, in response to RBI's policy of opening up domestic banking sector to

private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July

1995, public issue of the bank was taken out, after which the Government's shareholding

came down (though it still retains majority of the shareholding in the bank). In September

2003, IDBI took over Tata Home Finance Ltd, renamed „IDBI Home finance Limited‟,

thus diversifying its business domain and entering the arena of retail finance sector.

The year 2005 witnessed the merger of IDBI Bank with the Industrial Development Bank

of India Ltd. The new entity continued to its development finance role, while providing

an array of wholesale and retail banking products (and does so till date). The following

year, IDBI Bank acquired United Western Bank (which, at that time, had 230 branches

spread over 47 districts, in 9 states). In the financial year of 2008, IDBI Bank had a net

income of Rs 9415.9 crores and total assets of Rs 120,601 crores.

Today, IDBI Bank is counted amongst the leading public sector banks of India, apart

from claiming the distinction of being the 4th largest bank, in overall ratings. It is

presently regarded as the tenth largest development bank in the world, mainly in terms of

reach. This is because of its wide network of 509 branches, 900 ATMs and 319 centers.

Apart from being involved in banking services, IDBI has set up institutions like The

National Stock Exchange of India (NSE), The National Securities Depository Services

Ltd. (NSDL) and the Stock Holding Corporation of India (SHCIL).

IDBI (Industrial Development bank of India) Bank

7 P’s of Marketing

Marketing professionals and specialist use many tactics to attract and retain their customers.

These activities comprise of different concepts, the most important one being the marketing mix.

There are two concepts for marketing mix: 4P and 7P. It is essential to balance the 4Ps or the 7Ps

of the marketing mix. The concept of 4Ps has been long used for the product industry while the

latter has emerged as a successful proposition for the services industry.

The 7Ps of the marketing mix can be discussed as:

1. Product - It must provide value to a customer but does not have to be tangible at the same

time. Basically, it involves introducing new products or improvising the existing

products.

2. Price - Pricing must be competitive and must entail profit. The pricing strategy can

comprise discounts, offers and the like.

3. Place - It refers to the place where the customers can buy the product and how the

product reaches out to that place. This is done through different channels, like Internet,

wholesalers and retailers.

4. Promotion - It includes the various ways of communicating to the customers of what the

company has to offer. It is about communicating about the benefits of using a particular

product or service rather than just talking about its features.

5. People - People refer to the customers, employees, management and everybody else

involved in it. It is essential for everyone to realize that the reputation of the brand that

you are involved with is in the people's hands.

6. Process - It refers to the methods and process of providing a service and is hence essential

to have a thorough knowledge on whether the services are helpful to the customers, if

they are provided in time, if the customers are informed in hand about the services and

many such things.

7. Physical (evidence) - It refers to the experience of using a product or service. When a

service goes out to the customer, it is essential that you help him see what he is buying or

not. For example- brochures, pamphlets etc serve this purpose.

1. PRODUCT MIX

Various Products & Services offered by IDBI Bank are as follows:-

Personal Banking

Deposits

Loans

Payments - Tax Payments, Stamp Duty Payments, Easy Fill, Bill Payment, Card to Card

Money Transfer, PayMate, Online Payments

Mutual Fund

Demat Account

IPO

Insurance - FamilyCare, Weathsurance

Cards - Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-ATM

Card, World Currency Card

Institutional Banking

Lockers

India Post

NRI Services

Phone Banking

SMS Banking

Account Alerts

Internet Banking

Corporate Banking

Project Finance

Infrastructure Finance

Syndication, Underwriting & Advisory Services

Carbon Credits Business

Cash Management Services

Trade Finance

Tax Payments

Derivatives

Technology Upgradation Fund Scheme (TUFS)

Film Financing Scheme

Direct Discounting Bills

Rehabilitation Finance

Others

SME Finance

Agri-business Products

2. PRICCE MIX

POWER PLUS ACCONT

We bring to you a product that reflects and matches your financial needs and requirements at

every step. PowerPlus account allows you to access a complete suite of product and services and

enjoy world class banking experience, complimenting your professional and personal goals. This

account helps you take complete charge of your banking by providing multiple channel and

products and a wide range of benefits to help your time and money.

We have a set of alternate channels to meet your needs – ATM's, Phone banking, Mobile

banking, Internet banking.

25% discount on locker rates.

10 other banks ATM transaction free.

Any branch cash withdrawal and deposit limit is Rs.1,00,000/- per day.

Free demand draft within network.

No statement charges.

Super Savings Account

Instant Banking

International Debit Card

Family Account

Quick Money Transfer

Easy Payments

Bank on the Move

Profit from your Account

Value Added Services

All these features are offered for a minimum balance of Rs 5,000.

Jubilee Plus (Senior Citizens) Account

Now banking can be done from home. IDBI has brought to the senior citizens an account that can

facilitate your banking transactions with hosts of facilities catering to the needs of the customer. This is

deal in which you cannot just save the money but also make it grow. Also get the benefit of getting

another account with an AQB of Rs. 1,000.

An account with a balance of just Rs. 5,000 (Category A branches) Rs. 2,500 (Category

B branches) and Rs. 1,000 (Category C branches)

Free Sponsor‟s account with AQB of Rs 1000 with the senior citizen account.

SuperShakti (Women's) Account

Understanding the specific requirements of our customers, we at IDBI Bank have introduced a

special Savings Account for Women, which we have coined „Super Shakti‟. Not only this, along

with this account we offer one Zero Balance Savings Account absolutely free for her child below

the age of eighteen years. The Account offers you a host of features, which include:

Free Transactions at other Bank ATMs*.

An account opening balance of just Rs.1000

An AQB requirement of Rs. 5000.

A Zero balance account for your child below the age of 18 years.

Agri Business Group

IDBI Bank's total agriculture advance was Rs.1387 Cr for year ended March 2007. It has gone

up by Rs.6924 Cr (around 500%) to Rs.8311 Cr as on March 31, 2009.

3. PLACE MIX

Place mix is the location analysis for banks branches. There are number a

factors affecting the determination of the location of the branch of bank. It is very

necessary a bank to situated at a location where most of its target population is

located.

Some of the important factors affecting the location analysis of a bank

are:

1. The trade area

2. Population characteristics

3. Commercial structure

4. Industrial structure

5. Banking structure

6. Proximity to other convenient outlets

7. Real estate rates

8. Proximity to public transportation

9. Drawing time

10. Location of competition

11. Visibility

12. Access

It is not necessary that all the above conditions have to be satisfied while

selecting the location but it should be tried to satisfy as many of them as

possible.

1. The Trade Area:

The trade area is a very important factor determining the place where a bank branch should be

set up. For e.g. a particular location maybe a huge trading place for textiles, diamonds or for that

case even the stock market. Such locations are ideal for setting up of bank branches.

2. Population Characteristics:

The demography of a place is a very important factor. This includes:

The income level of the population

The average age

The average male female population

The caste, religion, culture and customs

The average spending and saving habit of the people.

These factors are very important for a bank as the help them decide the kind of business

the branch will get.

3. Commercial Structure:

The commercial structure refers to the level of commerce i.e. business activities taking place at a

particular location. The higher the level of business activities taking place in a particular location

the more preferable it is for setting up a bank branch.

4. Industrial Structure:

This is nothing but a combination of the trade area analysis and the commercial structure.

However the industrial structure focuses more on the kind of industries operating in a particular

location. For example, an area like SEEPZ is marked with a lot of electronic manufacturing

units. Thus the industrial stricture determines the kind of financial transactions that could take

place in a particular location.

5. Banking Structure:

The Banking structure refers to the existence of other banks in the area. Whether there is

already an efficient network of other bank branches operating at that particular area. Thus the

overall infrastructure needed for the working of a bank.

6. Proximity of other convenient outlets:

This refers to the other branches of the same bank as well other commercial,

entertainment and industrial outlets.

7. Real Estate Rates:

This is mainly dealing with the cost factor involved in opening up a bank branch at a

particular location. The real estate rate is a very strong factor influencing the location decision

for a bank branch.

8. Proximity to public transportation:

The location should be proximate to public transportation facilities. This means it should

have bus stops close by as well as it should be proximate to railway stations so as to make it

convenient for the common man.

9. Drawing Time:

Drawing time refers to the time period during which a customer can draw money from

the banks. It should be convenient to the customer and somewhat flexible to accommodate the

customer‟s needs. No bank has more than a certain amount with them and in case a customer

wants to withdraw an amount more than that available with the bank, the bank needs to draw that

amount from other banks. Hence, a location must be such that it facilitates minimum drawing

time.

10. Location of Competition:

The existence of other banks also means competition. If the level of competition is very

high in a particular location, it is necessary that a bank does a lot of market research before

opening a branch so as to estimate the kind of business it would get.

10. Visibility:

The location of a branch should be such that it is visible and easily noticed by the

customers as well other people.

10. Access:

The bank branch should be very easily accessible to the customers. If this is not the case,

the customer might switch to some other bank, which is more convenient to him and very easily

accessible. The location should be such that it is very convenient for the customer to reach.

IDBI

IDBI has a wide spread branches across metropolitans but its spread across the towns and

villages is less.

4. Promotion Mix

Promotion is nothing but making the customer more and more aware of the

services and benefits provided by the bank. The banks today can use a lot of new

technology to communicate to their customers. Two of the fastest growing modern

tools of communicating with the customers are:

1. Internet Banking

2. Mobile Banking

The IDBI bank reaches its new schemes products to its customer through

1) Email for customer who are interactive with them by sending mails.

2) When the customer come to the bank they inform him about its new products.

3) By putting hoarding that we see on both side of the road which is optional. The bank may

or may not use this option.

4) If there are 1000 customers of IDBI at one branch then all the customers are allotted

accordingly to different officers.

5) The bank advertises about its products in news papers. This is one of the important source

through which it tries to inform the general public about its product.

6) The new customer are informed by the already existing customer about the new scheme

of the bank.

7) The easiest way to advertise is to put a banner in the entrance of every branch.

5.People

People are the employees that are the service providers. In a banking sector, the service

provider plays a very important and determinant role in rendering the customers a satisfactory

and a good service. It is extremely essential that the service provider understand what his

customers expect from him. In the banking sector, the customer needs to be guided in a lot of

matters, which is possible only with the help of the service provider.

The position in the eyes of the customer will be perceived by appearance, attitude and

behavior of the customer contact employees. Not only does the customer contact employee

influence the customer‟s perception but also the customer base of the organization does so.

IDBI

The people working in IDBI are professionally trained, they have adequate knowledge about the

products of their banks and their interactions with the people are pleasant. The employees are

happy with their current pay scales indicating that the management takes care of their employee.

6. Process Mix

The process mix constitutes the overall procedure involved in using the services offered

by the bank. It is very necessary that the process is very customer friendly. In other words a

process should be such that the customer is easily able to understand and easy to follow. Today if

particular banks formalities are long and the procedure very complicated the overall process fails

and the customer may not be inclined towards using that banks services.

IDBI

IDBI uses internet for various process such as money transfer, credit card process, debit card

process, ATM etc. It also uses telecommunication technology to inform its customer. All this

steps enhances the quality of services provided by the bank. The bank is now able to handle

more work load and its profit earning capacity has also increased dramatically due to the use of

these new process technology.

7. PHYSICAL EVIDENCE

Physical evidence is the overall layout of the place i.e. how the entire bank has been designed.

Physical evidence refers to all those factors that help make the process much easier and smoother. For

example, in case of a bank, the physical evidence would be the placement of the customer service

executive‟s desk, or the location of the place for depositing cheques. It is very necessary that the place be

designed in such a manner so as to ensure maximum convenience to the customer and cause no confusion

to him.

IDBI

The infrastructure of the bank is quite good. The entire branch has good ventilation facility. The

ambience inside the branch keeps the mind of the customer calm. There adequate employees in

the branch to handle every customers need. The seating arrangements are adequate and the

customer don‟t feel discomfort while sitting in the chairs provided by the bank.

CONCLUSION

IDBI Bank is aware of the importance of retail Banking business and its strength in

improving their bottom line. It is the quality of products, level of technology and

speed of services rendered which is going to be the deciding factor. It will have to

differentiate from other Banks offering similar products to the customers. With

blossoming consumerism in India, retail banking has come to stay and in the scene of

close competition, the common consumer is the ultimate beneficiary in terms of

quality and cost. As more and more players chant the mantra of retail Banking, IDBI

needs to provide customer a choice of options at the lowest cost to choose from. With

the barriers for Internet Banking diminishing new players will gain the market access

and provide similar services to customers making the existing players to be ever

vigilant and look out for choices.

In this fierce war for higher market shares in retail segment the only beneficiary is the

customer. We can say that customer is the king for banks nowadays.

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