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ServicemarketingbybankingsectorServicemarketingNewandinnovativemethodsofmarketingservicesusedbybankingsectorIntroductionAbankisafinancialinstitutionlicensedbyagovernment.Itsprimaryactivitiesincludeborrowingandlendingmoney.Banksnolongerrestrictedthemselvestotraditionalbankingactivities,butexploredneweravenuestoincreasebusinessandcapturenewmarket.-Inthe1990s,greateremphasisbeingplacedontechnologyandinnovation.-Newconceptlikepersonalbanking,retailbanking,totalbranchautomation,etcwereintroducedBanks'activitiescanbedividedintoretailbanking,dealingdirectlywithindividualsandsmallbusinesses;businessbanking,providingservicestomid-marketbusiness;corporatebanking,directedatlargebusinessentities;privatebanking,providingwealthmanagementservicestohighnetworthindividualsandfamilies;andinvestmentbanking,relatingtoactivitiesonthefinancialmarkets.Mostbanksareprofit-making,privateenterprises.However,someareownedbygovernment,orarenon-profitorganizations.Banksoffermanydifferentchannelstoaccesstheirbankingandotherservices-1-Bankbranch2-ATM3-Mail4-Telephonebanking5-Onlinebanking
6-Mobilebanking7-VideobankingNewinnovativemethodofmarketingservicesusedbybankingsector1-E-banking-Enablespeopletocarryoutmostoftheirbankingtransactionusingasafewebsitewhichisoperatedbytheirrespectedbank.2-Corebanking-itincludeknowingcustomerneeds.Depositingandlendingofmoney.Providingcorebankingsolution.3-Corporatebanking-itincludesprovidingfinancialsolutiontolargecorporateandMNC's.4-Mobilebanking-ithelpsinbalanceinquiry,fundtransfer,chequebookrequestetc.5-Plasticmoney-Plasticmoneyarethealternativetothecashorstandardmoney,itisconvinenttocarryandgenerictermforalltypesofbankcards,debitc
ards,creditcards,smartcards.6-NRIbanking-ThisfacilityisdesignedfordiversebankingrequirementsofthevastNRIpopulationspreadacrosstheglobe.7-TOTALBRANCHAUTOMATION-thisisoneofthelatesttowardspaperlesstransactions,itismorecustomerfriendlyandflexiblethathasspeedupbanktransactionandwithlesserrorpossibility.MarketingmixofbankingsectorThemarketingmixofbankingsectorincludes7p'sthatareexplainedbelowsothattheycanunderstandtheircustomersbetterandprovidethemgoodservices.ProductsBANKSPRODUCTS:(A)DEPOSITS:Savings,Current,Fixedetc.(B)ADVANCES:a)TermLoan,b)CleanLoan,c)BillsDiscounting,d)Advances,e)P
re-shipmentFinance,f)Post-shipmentfinance,g)SecuredandUnsecuredlinesofcredit.(2)Non-fundoriented:a)Guarantees,andb)LetterofCredit.(C)INTERNATIONALBANKING:a)LetterofCredit,andb)ForeignCurrency.(D)CONSULTANCY:a)InvestmentCounselling,b)ProjectCounselling,c)MerchantBanking,andd)TaxConsultancy.(E)MISCELLANEOUS:a)TravellerCheques,b)Creditcard,c)Remittances,d)Collections,e)SaleofDrafts,f)Standinginstructions,andg)Trusteeship.Price-Thepricemixinthebankingsectorisnothingbuttheinterestrateschargedby
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thedifferentbanks.Let'sunderstandthiswithanexample.Aparticularbuyerapproachesforacarloansayforaperiodof3years.HeischargedRs.20,000asinterest.howeverifasalesrepresentativeofanotherbankcomestoknowofthisdealhewilltrytoattractthecustomerbygivinghimabetterdealthatisaloanatalowerrateoninterest.Inthiswayduetothehighlevelofcompetitionthecustomerbenefits.PricingThistypeofpricingismainlydonebybankshavinguniqueordifferentproductsorschemes.Theyusuallychargeacombinationofhighandlowpricesdependingonthecustomerloyaltyaswellastheproducts.Thistypeofpricingstrategyisusuallycoupledwithpromotionprogrammes.-Goingratepricing:-Markuppricing:PlacePlacemixisthelocationanalysisforbanksbranches.Therearenumberafactorsaffectingthedeterminationofthelocationofthebranchofbank.Likepopulationcharacteristics,commercial,proximityofothercommercialoutlets.PromotionPromotionisnothingbutmakingthecustomermoreandmoreawareoftheservicesandbenefitsprovidedbythebank.Thebankstodaycanusealotofnewtechnologytocommunicatetotheircustomers.Twoofthefastestgrowingmoderntoolsofcommunicatingwiththecustomersare:
1.InternetBanking2.MobileBankingProcessTheprocessmixconstitutestheoverallprocedureinvolvedinusingtheservicesofferedbythebank.Let'stakeforexampletheprocessforapplicationforacarloan.Nowthismainlyinvolves3things.1.Producingofproperdocuments2.Fillingupofapplicationform3.PayingfortheinitialdownpaymentPhysicalevidencePhysicalevidenceistheoveralllayoutoftheplace.Howtheentirebankhasbeendesigned.Physicalevidencereferstoallthosefactorsthathelpsmakethep
rocessmucheasierandsmoother.Forexampleincaseofabankthephysicalevidencewouldbetheplacementofthecustomerserviceexecutive'sdesk,orthelocationoftheplacefordepositingCheques.ItisverynecessarytheplaceisdesignedinsuchamannersoastoensuremaximumconveniencetothecustomerandcausenoconfusiontohimInterpretationandrecommendationBanksarethemostsignificantplayersintheIndianfinancialmarket.Theyarethebiggestpurveyorsofcredit,andtheyalsoattractmostofthesavingsfromthepopulation.Dominatedbypublicsector,thebankingindustryhassofaractedasanefficientpartnerinthegrowthandthedevelopmentofthecountry.Drivenbythesocialistideologiesandthewelfarestateconcept,publicsectorbankshavelongbeenthesupportersofagricultureandotherprioritysectors.Theyactascrucialchannelsofthegovernmentinitseffortstoensureequi
tableeconomicdevelopment.TheIndianbankingcanbebroadlycategorizedintonationalized(governmentowned),privatebanksandspecializedbankinginstitutions.TheReserveBankofIndiaactsacentralizedbodymonitoringanydiscrepanciesandshortcominginthesystem.TheIndianbankinghasfinallyworkeduptothecompetitivedynamicsofthenew'Indianmarketandisaddressingtherelevantissuestotakeonthemultifariouschallengesofglobalization.-BanksthatemployITsolutionsareperceivedtobefuturistic'andproactiveplayerscapableofmeetingthemultifariousrequirementsofthelargecustomer'sba
