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PRESENTED BY:
Sandeep
Amit
SUBMITTED TO:-
Ms. Poonam Sharma
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After studying this, you will come to know:-
` The marketing approach in relation to some
select service in India
` The application of marketing concepts andprinciples in service sector companies
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` A Service is an act or performance offered by one
party to another. Although the process may be tied
to a physical product, the performance is
transistory,often intangible in nature, and does notresult in ownership of any of the factor of
production.
` A service is an economic activity that creates
value and provides benefit for customers atspecific times.
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` Transfer of Ownership
` Nature of Perishable and inventoried
` Tangible VS. Intangible
` Participation in production process` Greater variability in input and output
` Difficulty in evaluation
` Time factor importance
` Distribution channel take different forms
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The major events that have shaped the modern financeindustry are:
` The Great Depression (1929): The Great Depressionoriginated in the US with the Wall Street crash in October1929. The effects of the depression spread across the
world, especially in the heavy industries. Capitalrequirements regulation, financial industry oversights andthe insurance of deposit accounts sprang out of thistumultuous period.
` Black Monday (1987): On October 19, the stock marketsacross the world witnessed a huge crash. This was thelargest one day decline in the stock market history. Thecrash started in Hong Kong, spreading to Europe and theUS. Analysts blamed computer trading systems for magnifying the losses.
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Asian Financial Crisis (1990s): The Asian Financial Crisis wastriggered by the collapse of Thai baht as the government of Thailanddecided to float the national currency.The nation had a huge foreign debt at that point, driving it to the verge
of bankruptcy. The crisis rippled across the whole of Southeast Asiaand has led to many emerging market countries to reduce debts andbuild up foreign currency reserves.
Stock Market Downturn (2002): Stock exchanges around the worldwitnessed a significant decline in March 2002. It was attributed to thebursting of the Dot-com Bubble, which saw major Internet companies
going bankrupt. Sub-prime Crisis (2007): Credit markets faced major crunch due to
large scale default on loans. It led to the Financial Crisis of 2008 2009 and resulted in the bankruptcy, fire-sale acquisition andgovernment bailouts of finance industry giants such as LehmanBrothers, Bear Stearns, AIG, Fannie Mae, Merrill Lynch, NorthernRock, Lloyds TSB, RBS and the entire banking system of Iceland. Theworld economy can expect reduced growth rates and tighter regulations as a result of this crisis.
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DEMAND DRIVER
` Potential Yield
` Risk rating
` Liquidity`Availability of
information
`Access to alternatives
SUPPLY DRIVER
` Money supply
` Interest rates
` Inflation` Economic conditions
` Government
regulations
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The State Bank of India is the largest sector commercial bank in country. It was established in1955.
The SBI over the year had not given adequate focuson mainly providing satisfaction to customers becauseof absence of competition but after changingcompetitive scenario in 1991,forced public sector banks to focus on more customer satisfaction.
So Market Orientation is become necessary toachieve organizational objectives. Considering
these facts, the MARKETING MIX approach is usedto analyze the marketing of banking service.
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` The tools available to a business to gain the
reaction it is seeking from its target market in
relation to its marketing objectives
` 7Ps Price, Product, Promotion, Place, People,Process, Physical Environment
` Traditional 4Ps extended to encompass growth
of service industry
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` Methods used toimprove/differentiatethe product and increasesales or target sales moreeffectively to gain
a competitive advantage e.g. Extension strategies Specialised versions New editions Improvements real or
otherwise!
Changed packaging Technology, etc.
Image copyright: www.freeimages.co.uk
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(a)Product policy and strategiesIt offers Various products to suit theneed of different clientele
The product mix of SBI having threeproduct lines
PRODUCT LINE 1:- DEPOSITS
PRODUCT LINE 2:- LOAN &
ADVANCESPRODUCT LINE 3:- AUXILIARY
SERVICES
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(b)Product planning and development(SbI)
It is done through:
` Market research-
Size of market
Market growth rate
Strength and weakness of competitorFeatures that affect buying pattern
` Customer suggestion
PROCESS
It takes place at centre levelDifferent department for product design, product
development and product execution
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(d) Product for specialized segmentIt has designed various products for the identify
specialized segments. The segments segmented forthe purpose are-
Some services:Personal banking Corporate bankingNRI banking Small scale industries
Gold banking Small Business bankingAgricultural banking Governed banking
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The otherspecialized services are-
` Portfolio management
` STEPS` Demat services
` ATM services
` Internet banking
` Safe deposit locker
` Forex
` Gift cheques
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` (c)Product deletion and addition
The length and breadth of product mix need to be
modified so as to make it suitable for the society.So in this concern SBI dropped as many as 14
products from its product mix during the last 10
years.
Ex. Money bank std scheme, star deposit scheme,-cash certificate scheme, state bank cards, big-buy
scheme etc.
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` Pricing Strategy
` Importance of:
knowing the market elasticity
keeping an eyeon rivals
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1.Pricing policy and strategies
in the Banking sector the prices are-(a)Interest rate for loan and deposits
(b)Services charges for various services
The price is accordance with the RBI guidelines
Price based attributes:-Term of loan/depositType of loan/deposit
Creditworthiness ofborrower
Tax treatment for bothparties
Demand, supply ofservices
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` Earlier the interest rate is settled by the market authorities
not by market forces. But in order to make banking sector
more competitive and market oriented, the RBI shifted it
from administered to free and flexible pricing system.
Four circumstances where price need to considered
1.When product is being introduced for first time
2.Effecting price changes
3.Price changes due to competition
4.Due to demand and supply
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` The means by which products and
services get from producer
to consumer and where they can beaccessed by the consumer
The more places to buy the product
and the easier it is made to buy it,the better for the business (and the
consumer?)
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The SBI follows-1 Direct marketing
2.Production and Distribution outlets
3.ATMs
4.Largest network of bank branches in rural area5.Implementation of system and technology in
-Accounting ledger modules
-customer account modules
-Internal account modules
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6.Provide necessary Infrastructure for setting
transaction through SWIFT7.Set up main offices in four metropolitan cities
to improving the Speed, Dependability, and Securityof communication network.
8.Twelve Satellite Disk antennae were installed in 11cities
9.SBI covered Remote Area Network also by IT
10.SBIdo their work full on computerization
11. In order to provide Value services, the bank launchpilot services at Bangalore,mumbai,nagpur.
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12.Tele-Banking facility also introduced by SBI
13.Model Branch- the selection of branches is a propermix of metropolitan,urban,semi-urban,and rural
branches all over country
14.Personalised branch network
15.Physical facility16.Branch Layout
17. Management Information System(MIS)
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` Strategies
to make the
consumer aware ofthe existence of a
product
or service
` NOT just advertising
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The SBI uses-
` Advertising-
Newspaper
Radio, Television
MagazineOutdoor advertising
Transit advertising
` Personal selling
` Websites- www.statebankindia.com
sbi.org.in\
` Promotional campaign
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` Customer Councils-The Bank organizes inter-
active session with customer
` Disposal of complaints
` Customer service committees
`
Community service banking` Customer feedback- SBI observe 15th of every
month as a Customer Day
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The Promotional measures are at three level:-
Central office- use advertising through news-paper,hoardings for customer catchment area
Local Head office-they focused on promotion activity incapital city where it is placed
Module(Regional office)-ad through brochure,
pamphlets, calendars and other leaflets directly fromthe Lho and from the central office
Attractive Slogans like-
Bank for excellence
State bank of India with you all the way
By Front line people- the employees offers choice,guides and assist customer in the purchase-decisionprocess.
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` People represent the business The image they present can be important
First contact often human what is the lasting imagethey provide to the customer?
Extent of training and knowledgeof the product/service concerned
Mission statement how relevant?
Do staff represent the desired culture
of the business?
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` How do people consume services?` What processes do they have to go through
to acquire the services?
` Where do they find the availability
of the service? Contact Reminders Registration Subscription
Form filling Degree of technology
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` The ambience, mood or physical presentation of
the environment Smart/shabby?
Trendy/retro/modern/old fashioned? Light/dark/bright/subdued?
Romantic/chic/loud?
Clean/dirty/unkempt/neat?
Music?
Smell?
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Blend of the mix depends upon:Marketing objectives Type of product
Target marketMarket structureRivals behaviourGlobal issues culture/religion, etc.Marketing position Product portfolio
y Product lifecycley Boston Matrix
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COMPANY
INTERNAL MARKETING External marketing
EMPLOYEES CUSTOMERS
INTERACTIVE MARKETING
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` The state bank of India comprises of officers,
clerks and subordinates. Advertisement for
recruitment are published in newspaper. There are
three channels through which officers are
recruited.
-Direct recruitment
-Promotions as trainees officers
-Promotion as junior management
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Banking is a concept that is to be communicated
effectively persuade customer.Advertising through Print media, electronic media,
hoardings and posters were taken up mainly to createawareness of the various policies offered
The co. depends largely on sales force for communication.the sales personnel approach potential buyers, explainvarious policies and their feature and make effort toconvince them.
Sales promotion and publicity are also effective.
Word-of-Mouth communication is useful The co. have have a wider distribution network and
systems in operation. Reliability and Credibility areassociated with co. So they are responsive to thecustomers. With all these, they can maintain the leader
status in the market.
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` Training in SBI
` Training Centre
` Support system
` Employee Benefits` Financial Benefits
` Welfare Facilities
` Perquisites
` Allowances
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` In banking services, most interaction take place b/w
customers and intermediaries.` Intermediaries are generally self-motivated to interact
with customers. Professional training on how tointeracts imparted to them. Therefore, Bankingservices are progressive in interactive marketing.
` With the change in scenario, the bank have to satisfythe customer. the study of customer problem,grievences and expectations from basis ofinteractive marketing
` So, the service personnel, including employees andagents
` Need to be oriented towards generating qualityinteractions when they meet customers.
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