General Bank Management

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C A I I B

General Bank Management

Marketing Management for Bankers

MODULE D



22

What is Marketing…??What is Marketing…??

Selling?

Advertising?

Promotions?

Making products available in stores?Maintaining inventories?

All of the above, plus much more!

Selling?

Advertising?

Promotions?

Making products available in stores?Maintaining inventories?

All of the above, plus much more!



33

Marketing = ?Marketing = ?

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,

goods, services to create exchanges that satisfy

individual and organizational goals

American Marketing Association



44


Marketing management is the art and science of

choosing target markets and getting, keeping, and

growing customers through creating, delivering, and

communicating superior customer value.

Marketing management is the art and science of

choosing target markets and getting, keeping, and

growing customers through creating, delivering, and

communicating superior customer value.



55


Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over.

Marketing is all about creating a pull, sales is all about

push.

Marketing is all about managing the four P’s –

product

price

place

promotion

Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over.

Marketing is all about creating a pull, sales is all about

push.

Marketing is all about managing the four P’s –

product

price

place

promotion



66

The 4 Ps & 4CsThe 4 Ps & 4Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

Cost

Communication

Convenience



77

Difference Between - Sales &Marketing ?

Difference Between - Sales &Marketing ?

Salestrying to get the customer to want what the

company produces

Marketing trying to get the company produce what the

customer wants



88

Scope – What do we marketScope – What do we market

Goods

Services

Events

Experiences Personalities

Place

Organizations

Properties Information

Ideas and concepts

Goods

Services

Events

Experiences Personalities

Place

Organizations

Properties Information

Ideas and concepts



99

Core Concepts of MarketingCore Concepts of Marketing

Based on :

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

Based on :

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.



1010

In order to understand Marketing let us beginwith the Marketing Triangle

In order to understand Marketing let us beginwith the Marketing Triangle

Customers

CompetitionCompany



1111

Who is a Customer ??Who is a Customer ??

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption

that satisfies a want or a need

CUSTOMER IS . . . . .



1212

Customer –Customer –

CUSTOMER has needs, wants, demands anddesires

Understanding these needs is starting point of theentire marketing

These needs, wants …… arise within a frameworkor an ecosystem

Understanding both the needs and the ecosystem isthe starting point of a long term relationship

CUSTOMER has needs, wants, demands anddesires

Understanding these needs is starting point of theentire marketing

These needs, wants …… arise within a frameworkor an ecosystem

Understanding both the needs and the ecosystem isthe starting point of a long term relationship



1313

Customers - ProblemSolutionCustomers - ProblemSolution

As a priority , we must bring to our customers

“WHAT THEY NEED”

We must be in a position to UNDERSTAND their

problems

Or in a new situation to give them a chance to AVOID

the problems

As a priority , we must bring to our customers

“WHAT THEY NEED”

We must be in a position to UNDERSTAND their

problems

Or in a new situation to give them a chance to AVOID

the problems



1414

Customer looks for ValueCustomer looks for Value

Value = Benefit / Cost

Benefit = Functional Benefit + Emotional

Benefit

Cost = Monetary Cost + Time Cost +

Energy Cost + Psychic Cost

Value = Benefit / Cost

Benefit = Functional Benefit + Emotional

Benefit

Cost = Monetary Cost + Time Cost +

Energy Cost + Psychic Cost



1515

Strategic MarketingStrategic Marketing

Strategic marketing management is concerned with

how we will create value for the customer

Asks two main questions

What is the organization’s main activity at aparticular time? – Customer Value

What are its primary goals and how will these be

achieved? – how will this value be delivered



1616

The Strategic-Planning, Implementation,

and Control Process

The Strategic-Planning, Implementation,

and Control Process



1717

Business Strategic-PlanningProcessBusiness Strategic-PlanningProcess

External environment (Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission



1818

Strategy FormulationStrategy Formulation

Environmental Analysis

Internal AnalysisCompetitor Customer

Supplier

Regulatory

Social/ Political

Technology Know-How

Manufacturing Know-How

Marketing Know-How

Distribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies



1919

CONTENTS of MARKETING PLANCONTENTS of MARKETING PLANBusiness Mission Statement

Objectives

Situation Analysis (SWOT)

Marketing Strategy

Target Market Strategy

Marketing Mix Positioning

Product

Promotion

Price

Place – Distribution People

Process

Implementation, Evaluation and Control



2020

The Marketing ProcessThe Marketing Process

BusinessMissionStateme

nt

Objectives

Situationor SWOTAnalysis

Implementation

Evaluation,Control

Target MarketStrategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix



2121

Why a product like radio

declined and now once again

emerging as an entertainmentmedium ?

Why a product like radio

declined and now once again

emerging as an entertainmentmedium ?



2222

What Were the Drivers of This Change ?What Were the Drivers of This Change ?

Technology ?

Government policy ?

Other media substitutes ?

Technology ?

Government policy ?

Other media substitutes ?



2323

Why Market LeadersSuffered ?Why Market LeadersSuffered ?

HMT vs. Titan

HLL vs. Nirma

Bajaj vs. Honda

Dot.com boom, then bust and now resurgence

Market leadership today cannot be taken for

granted.New and more efficient companies are able to

upstage leaders in a much shorter period.

HMT vs. Titan

HLL vs. Nirma

Bajaj vs. Honda

Dot.com boom, then bust and now resurgence

Market leadership today cannot be taken for

granted.New and more efficient companies are able to

upstage leaders in a much shorter period.



2424

Factors

Influencing

Company’sMarketing

Strategy

Factors

Influencing

Company’sMarketing

Strategy



2525

The macro-environmentThe macro-environment

is the assessment of the external forces that act upon the

firm and its customers, that create threats & opportunities



2626

P r o d u c t P r o d u c t P r o d u c t P r o d u c t



2727

Anything that is offered to the market for

attention, acquisition, use or consumption that

satisfies a want or a need

Product is . . . . .Product is . . . . .



2828

Product Items, Lines, and MixesProduct Items, Lines, and Mixes

Product ItemProduct Item

Product LineProduct Line

Product MixProduct Mix

A specific version of a productthat can be designated as adistinct offering among anorganization’s products.

A specific version of a productthat can be designated as adistinct offering among anorganization’s products.

A group of closely-relatedproduct items.

A group of closely-relatedproduct items.

All products that anorganization sells.

All products that anorganization sells.



2929

Product MixProduct Mix

Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a

product line

Consistency – how closely related the product lines are in

end use

Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a

product line

Consistency – how closely related the product lines are in

end use



3030

Gillette’s Product Lines & MixGillette’s Product Lines & Mix

Blades and Writingrazors Toiletries instruments Lighters

Fusion – 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II Toni S.T. DupontAtra Right GuardSwivel Silkience

Double-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Width of the product mixWidth of the product mix

Deptho

ft h

eprodu

ctlin

es

Dept h

o

fthep

rodu

ctlines

h i S i ?Wh i S i ?



3131

What is a Service?Defining the Essence

What is a Service?Defining the Essence

An act or performance offered by one party to another (performances are intangible, but may involve use of

physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired

change in customers themselves, or their physical

possessions, or intangible assets

S I d i S iS I d t i S i



3232

Some Industries - ServiceSectorSome Industries - ServiceSector

Banking, stock broking

Lodging

Restaurants, bars,

cateringInsurance

News and entertainment

Transportation (freight andpassenger)

Health care

Education

Wholesaling and retailing

Laundries, dry-cleaningRepair and maintenance

Professional (e.g., law,architecture, consulting)



3333

Classification of ServicesClassification of Services

Pure Tangible Product

Materials / Components

Computers

Major Product withMinor Services

Product = Service

Major Service with

Minor ProductBusiness Hotels

Good Transportation

BankingPure Intangible

Service





3535

The Marketing MixThe Marketing Mix

The conventional view of the marketing mix consisted of

four components (4 Ps): Product, Price, Place/ distribution and Promotion.

Generally acknowledged that this is too narrow today;

now includes , Processes, Productivity [technology ]

People [employees], Physical evidence

Marketers today are focused on virtually all aspects of

the firm’s operations that have the potential to affect

the relationship with customers.

The conventional view of the marketing mix consisted of

four components (4 Ps): Product, Price, Place/ distribution and Promotion.

Generally acknowledged that this is too narrow today;

now includes , P rocesses, P roductivity [technology ]

P eople [employees], P hysical evidence

Marketers today are focused on virtually all aspects of

the firm’s operations that have the potential to affect

the relationship with customers.

The “8Ps” of Integrated ServiceThe “8Ps” of Integrated Service



3636

The 8Ps of Integrated Service

Management vs. the Traditional

“4Ps”

The 8Ps of Integrated ServiceManagement vs. the Traditional

“4Ps”

► Product elements

► Place, cyberspace, and time

► Process

► Productivity and quality

► People

► Promotion and education

► Physical evidence

► Price and other user outlays



3737

The Give and Get of MarketingThe Give and Get of Marketing

G t W d M k tiG t W d M k ti



3838

Great Words on MarketingGreat Words on Marketing

1. “The purpose of a company is ‘to create a customer…The only

profit center is the customer.’”

2. “A business has two—and only two—basic functions: marketing

and innovation. Marketing and innovation produce results: all the

rest are costs.”

3. “The aim of marketing is to make selling unnecessary.”

4. “While great devices are invented in the Laboratory, greatproducts are invented in the Marketing department.”

5. “Marketing is too important to be left to the marketing

department.”



3939

Drivers of Customer SatisfactionDrivers of Customer Satisfaction

Many aspects of the firm’s value proposition contribute

to customer satisfaction:

The core product or service offered

Support services and systems

The technical performance of the firm

Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels

Many aspects of the firm’s value proposition contribute

to customer satisfaction:

The core product or service offered

Support services and systems

The technical performance of the firm

Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels



4040

Marketers and MarketsMarketers and Markets

Marketers are focused on stimulating

exchanges with customers who make upmarkets – B2C or B2B.

The market is comprised of people who playa series of roles: decision makers,consumers, purchasers, and

influencers.It is absolutely essential that marketers

have a detailed understanding of consumers, their needs and wants.

Much happens before and after the sale toaffect customer satisfaction

Marketers are focused on stimulating

exchanges with customers who make upmarkets – B2C or B2B.

The market is comprised of people who playa series of roles: decision makers,consumers, purchasers, and

influencers.It is absolutely essential that marketers

have a detailed understanding of consumers, their needs and wants.

Much happens before and after the sale toaffect customer satisfaction



4141

Stages of Customer InteractionStages of Customer Interaction



4242

What Changed in Marketing…What Changed in Marketing…

• Organize by product units

• Focus on profitable transactions

• Look primarily at financialscorecard

• Focus on shareholders

• Marketing does the marketing

• Build brands through advertising

• Focus on customer acquisition

• No customer satisfactionmeasurement

• Over-promise, under-deliver

• Organize by product units

• Focus on profitable transactions

• Look primarily at financialscorecard

• Focus on shareholders

• Marketing does the marketing

• Build brands through advertising

• Focus on customer acquisition

• No customer satisfactionmeasurement

• Over-promise, under-deliver

• Organize by customer segments

• Focus on customer lifetime value

• Look also at marketing scorecard

• Focus on stakeholders

• Everyone does the marketing

• Build brands through performance

• Focus on customer retention

• Measure customer satisfaction andretention rate

• Under-promise, over-deliver

Old Economy New Economy



4343

Are Banks trulyAre Banks truly

marketing-savvy andmarketing-savvy andcustomer - centric?customer - centric?

Are Banks trulyAre Banks truly

marketing-savvy andmarketing-savvy andcustomer - centric?customer - centric?



4444

Myth 1 – The larger the range of products, themore customer-centric I am.

Myth 1 – The larger the range of products, themore customer-centric I am.

Mythbuster – The range of products hasMythbuster – The range of products hasemerged from being emerged from being

competition-centric.competition-centric.



4545

Myth 2 – Better technology (read CRM) leads to

better customer service.

Mythbuster – Technology Mythbuster – Technology

alone does not deliver,alone does not deliver,

helps people do.helps people do.



4646

Myth 3 – Launch a product and the customer will start

using instantly.

- Give a customer a card and he will learn how to play

with it immediately

Mythbuster – Customers need Mythbuster – Customers need

To be educated too…To be educated too…



4747

Mythbuster – CustomersMythbuster – Customersare not only present are not only present

where competition is.where competition is.

Myth 4 – The only way to get a customer isfrom

competition.



4848

Myth 5 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell,Mythbuster – Advertising will only sell,

Not retain customers.Not retain customers.



4949

Myth 6 – No difference between marketing &selling

Mythbuster –Mythbuster – “Selling focuses on the needs of the“Selling focuses on the needs of the

seller; marketing on the needs of the buyer.seller; marketing on the needs of the buyer.



5050

Myth 7 – In the absence of relationships ‘trust’builds financial brands

Mythbuster – T Mythbuster – T rust is not a differentiator at all…rust is not a differentiator at all…

it is the very minimum that the customer expects!! it is the very minimum that the customer expects!!



The real differentiator of The real differentiator of

customer – centricity in acustomer – centricity in a

commoditised world of commoditised world of financial products -financial products -

Customer Service !Customer Service !

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General Bank Management