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Prof. Priyanka Kumar
MARKETING OF BANKING AND INSURANCE PRODUCT
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What is Marketing?
Marketing is a human activity directed at satisfied needs andwants through exchange process.
Marketing is the performance of business activity that direct theflow of goods and services from the producer to consumer.
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Marketing vs SellingAim Selling concentrate on how to sell the goods and earn profit from the sale
Marketing concentrate on the satisfaction of consumer
Orientation Selling is production oriented
Marketing is consumer oriented
Importance Selling gives less importance to marketing research
Marketing gives more importance to marketing research
Target
Selling is homogeneous Marketing is heterogeneous
Consumer place Selling views consumer as the last link in the business
Marketing views consumer as the purpose of the business
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Satisfaction Of human need and wants
Profit and Market reputation
Widen the Market
Improve standard of living
Bring economic growth
Need for Marketing?
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Service Marketing
A service is an act of performance that one party can offer toanother that is essentially intangible and does not result in theownership of anything. Its production may or may not be tied
to a physical product.
The promotion of economic activities offered by a business toits clients. Service marketing might include the process of sellingtelecommunications, health treatment, financial, hospitality, carrental, air travel, and professional services.
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Characteristics of Services
Intangibility
Perishability
Inseparability
Heterogeneity
Ownership
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S.No. Physical Goods Services
1. Tangible Intangible
2. Homogeneous Heterogeneous
3.
Product and distributionseparated from consumption Production, distribution andconsumption re simultaneousprocess
4. A thing A activity
5. Core value produced in factory Core value produced in buyer-
seller interaction6. Customers do not participate in
the production processCustomers participate inproduction
7. Can be kept in stock Cannot be kept in stock
8. Transfer of ownership No transfer of ownership
Goods vs Services
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7 Ps of Marketing Mix
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Service Marketing Mix
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7 Ps of Banking Product
Product Deposits :- Savings, current, fixed
Term Loan,
Guarantees
Investment counseling
Tax counselling
Bill discounting
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Price
Interest rates charged
Transaction charged
Mark up pricing
Charges for cheque books
Commission charges
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Place
The trade area
Population characteristics
Transportation
Communication
Visibility
Access
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Promotion
Public relations
Personal selling
Word of mouth promotion
Internet
Tele marketing
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People
Skill for social interaction
Tolerance level
Humanity
Knowledgeable
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Physical evidence
Signage(Logo)
Punch lines
Tangibles
Employee dress code
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Process
Process constitutes the overall procedure involved in
using the services offered by the bank.
The process should be customer friendly
If the overall process is too complicated than the
customer may not be inclined to use such services
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7 Ps of Insurance Product
Auto Insurance
Home Insurance
Health Insurance
Accident, Sickness and
Unemployment Insurance
Casualty Insurance
Life Insurance
Property Insurance
Liability Insurance
Credit Insurance
Others:
All-risk Insurance
Pet Insurance
Travel Insurance
Reinsurance
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Price
Premium charged against the policies. (Includes:
Mortality, Expenses, Interests)
Interest charged for defaulting the payment of
premium.
Commission charged for underwriting and
consultancy.
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Place
Managing the Insurance Personnel
Locating a Branch
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Promotion
Advertising and Publicity
Organisation of Conferences and Seminars
Incentive to Policyholders
Plays
Exhibitions
Participation in fairs and festivals
Wall paintings
Mobile Publicity Van
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People
Training & Development of Employees.
Strong Relationship with Mediators.
Use of IT for efficiency, both at staff and agent level.
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Process
Customer friendly.
Speed and accuracy in payment.
Easy and convenient processing method. Schemes catering demand of customers.
IT & Data warehousing to smoothen the process flow
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Physical evidence
Internet/Web Pages Brochures Business Cards
Building & Offices Signage Financial Reports Punch Lines
Employees Dress Code
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Major Channels Of Direct Marketing
Face to face selling
Telemarketing
Direct mail marketing
Catalogue marketing
Television marketing
Online marketing
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Segment-Wise Marketing Strategy
Segment Small saver
Package of servicesEasy to handle depositschemes providing an
attractive collection box
Teaching bankinghabits inschools/colleges
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Segment-Wise Marketing Strategy
Segment Illiterate Deposit Scheme
-easy to handle-door to door collection facility-simplified facilities
Better attitude and good behavior from anemployee
Personal contact, preferably through
commission agent
Mobile Vans
Mass promotional campaigns
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Segment-Wise Marketing Strategy
Retire or about to retire Deposit Scheme with interest payable
monthly
Deposit Scheme with post-dated interest
warrants payable any where in India
Contacting retired employees
Personalized customer services
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Segment-Wise Marketing Strategy
Professional and Service worker Deposit-cum-loan scheme for
consumer durables
Mutual Funds
Mailing, customer meeting etc.
Shift in banking hours
Working on holidays in certain branches
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Segment-Wise Marketing Strategy
High Income Group Deposit scheme with personalizedbanking facility
Deposit-cum-loan scheme forconsumer durables
Credit Cards
Miscellaneous Services like taxconsultancy,
portfolio management etc.
Telephone calls
Mailing
Personal meetings, etc.
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E-Marketing
E-Marketing is the process of marketing a brand using theInternet. It includes both direct response marketing and indirectmarketing elements and uses a range of technologies to helpconnect businesses to their customers.
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Advantage of Online Marketing
Selling goods and services online.
Additional customer service.
Saving overhead costs.
Exciting and sizzling means of visual impact.
Every hit could gain a potential customer.
Reduction in order processing and handling costs
Enhanced after sales service.
Get closer to the customer
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What do we Market?
Goods
Service
Event
Experiences
Personalities
Place
Properties
Information
Ideas & Concepts
S C SS S O
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SUCESSFUL E - MARKET STORY
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? ueries