MCB_Bank_Mktg_G3_IMG

8/6/2019 MCB_Bank_Mktg_G3_IMG

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Powerpoint Templates

Page 1Powerpoint Templates

Bank Marketing And Customer

Service

Presented By:

Anirudh Singh 043010

Deepika Raghavan 043020

Irshad Ali 043027

Ragini Pant 043042


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Page 2

How is bank marketing differentfrom marketing of other products

and services?


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Page 3

BANK MARKETING

Customer and banks are found engaged in

discovering

creating

satisfying

CUSTOMER NEEDS


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Page 4

Types of services

Primary

Agriculture

Mining

Secondary

Manufacturing

Tertiary

Business(Insurance, banking ,legal)

Trade( wholesale,retail)

Infrastructure

Social


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Page 5

Characteristics of services

End user

Individual

Individual

B2B

B2B

Industrial

Industrial

Tangibility

Tangible

Tangible

Intangible

Intangible

HumanContact

High

High

low

low

No contact

No contact

Expertise

Professional

Professional

Non-professional

Non-professional

ProfitOrientation

Commercial

Commercial

Non profit

Non profit

DeliveryLocation

Customer

Customer

Serviceprovider

Serviceprovider


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Page 6

NEED FOR BANK

MARKETING

Awareness among customer

Quality as a key factorGrowing competition

Technological advancement


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Powerpoint Templates Page 7

FEATURES OFBANK

MARKETING

Intangibility

InseparabilityPerishability

Variability


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BANK MARKETING INVOLVES


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EVOLUTION OFBANK

MARKETING1991 NOW


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Critical examination of goal,

objective, strategy, tactic and

selling techniques in bank

marketing


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GOAL OFBANK

MARKETING

CUSTOMER SATISFACTION

QUALITY

Transparency

Efficiency in terms of service delivery

Sustainability

INNOVATIONSetting tangible goals allows the promotionssuccess to be measured.


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OBJECTIVE

Dual organizational objective

commercial objective

social objective

Shift from maximizing profits to developing long

term relationship with the customers.


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STRATEGY

SHIFTING FROM

PRODUCT

CENTRIC TO

CUSTOMER

CENTRIC


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STRATEGY

ONE STOP SOLUTION

And finally,


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SELLING TECHNIQUE

CROSS SELLING

Selling of banks products/services to analready existing customer


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Impact of changingcustomer profile, product

profile, distribution

channel on banks

business model.


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Consumer

Products

Distribution channelsMarketing strategy


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Consumer

Higher disposable income

Development of modern, urban lifestyles

Increase in consumer awareness

Buying power expanded to new customer segments beit the youth or the urban women

Vast rural hinterland India is beckoning and sheernumbers make it impossible to ignore

Growing economy

Expansion in availability of products and services

Easy availability of credit

Rising acceptability of debt


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Thereis so much choice today andpeopledo

notacceptpoor service. Wecannotmakeany

excuses butneedtogear upour systems to

providethatlevelofservice. Narayanan

Vaghul, Chairman, ICICI Banking

Corporation.(2005)


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Today, every city has its premium consumers and its middleclass consumers and this has put companies into a fix. Theynow need to craft strategies that address the subtle

differences but satisfy each group equally. So what is theIndian consumer market today? It is a market with threesegments.

The first comprises the top end with the mindset: I pay

more to get more, where the purchase is driven by theemotional surplus that the consumer experiences.

The second is the mid-level which thinks: I get good value

at a reasonable price.

More important, however, is the large block at the bottomwhich says: I pay less and I get less and is totally satisfiedwith that.


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Products

Traditionally, banks were only concerned with

acceptance of deposits from customers and lending

surplus money to the suitable customer who want to

borrow at some rate of interest. The most common products being offered by banks

were savings account, current account, term deposit

account and lending products being cash credit and

term loans.

Banker's main purpose was to manage the savings of

people through the mobilisation of funds


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ATM (Automated Teller Machine),

Internet Banking,

Credit Cards,PC banking,

EFTs,

Debit Cards, Smart Cards etc

Products


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Distribution

BankBank

Rural MarketRural Market

PlainVanillaRoute

PlainVanillaRoute

PartnershipsPartnerships FranchiseeFranchisee

DirectIntervention

DirectIntervention

BranchesBranches

Dedicatedmicro

financebranches

Dedicatedmicro

financebranches

Alternatedistribution channels

Alternatedistribution channels

Partnership withState

Administration

Partnership withState

Administration

Urban MarketUrban Market

InternetInternet PhonesPhones


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Marketing strategy

With formidable competition from both traditionalbrick and mortar operations and emerging Internetbanks, a large number of banks are having trouble

meeting performance expectations because theyare unable to differentiate their business, reachcustomers likely to respond to new salesopportunities or make the most of their valued

staff.With changing consumer, the marketing strategy of

the bank also needs to get revised.


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Marketing strategies


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The KeyChallenges Facing the

RetailB

anking Industry

Increased Competition Lowers Profit Margins

Wit h formidable competition from both traditional

brick and mortar operations and emerging Internet

banks, customers view retailbanking products and

services as undifferentiated commodities and shop

for the best deal.


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Therefore, retail banks that implement and

optimize an enhanced customer contact center

experience as a key component of a service

differentiation approach will enjoy a tremendouscompetitive advantage.


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Banks are Dissatisfied with the Results

of Their Cross-Selling/Up-SellingEfforts

Banks have had tremendous success in shifting to day-to-day

banking services from walk-in branches to lower cost channels.

For example, according to a 2005 Capgemini study of 41retail banks, 58% of all transactions were conducted throughremote channels such as automated teller machines(ATMs), Web sites and call centers.

However, banks have been disappointed by their relativeinability to cross-sell across these non-branch channels thesame Capgemini study found that only 14% of sales wereclosed through remote channels in 2005.


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Although the closing stage of a sales processmay occur at the branch, customers prefer tofirst perform the initial steps in the process viaremote channels, most notably the Web.Banks may be losing sales by not being ableto provide relevant information or sales andadvisory assistance at each step.


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AgentProductivity Continues to Suffer

The average employee attrition rate for callcenter

staff in the retailbanking industry is 33%. Entry-levelstaff mayhave attrition rates of over 70%

while outbound-selling staffhave attrition rates that

surpass 180%.

Source:byThe Corporate Executive Board, a

provider of bestpractices research and analysis

focusing on corporate strategy, operations and

generalmanagement issues


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THE STRATEGIC ROLE OF THECONTACT CENTER IN RETAIL

BANKING


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Facilitate Integrated and

Consistent InteractionsAcross All Channels

Offering an exceptional customer experiencevia multi-channel interactions comprised of

branches, ATMs, phone, fax, e-mail and Web

chat is the first step to maintaining a personal

connection to customers, particularly those

decreasing their visits to branches.


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Offer an Inviting CustomerFront Door


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Integrate Self-Service withAgent Assistance


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InitiateProactiveContact


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Make More Effective Use of

Customer Data and

Segmentation


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Leverage DemographicProfiling to Establish

Customer Intimacy


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Boost theProductivity of Your

Agents

through InteractionBlending


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Comparative Analysis of

Marketing Strategy of

ICICI Bank andHDFC

Bank.


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ICICI Banks SILO

(Product Based)

HDFC Banks Relationship

Based

Coordination between

different departments

Different departments do

not share information

Departments are inter-

linked through IT that

enables each department to

share information

Marketing Type Marketing is not targeted Customers are presented

with the right product at the

right time

Customer Relationship Customers are hoarded

with unnecessary calls

leading to the assumption

that his/her own bank is not

aware of the customer

Helps build personalized

relationships with

customers


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SWOT ICICI

Strengths Weaknesses

y Strong domestic market makes ICICI a

leading private sector bank in India.

y International expansion of commercial

banking increases profitability of ICICI.

y Steady financial performance and relatively

higher efficiency generates higher returns

for shareholders

y Overdependence on the domestic Indian

market increases business risk for ICICI.

y Credit risk concentration increases the

default risk of ICICI.

y Increase in nonperforming loans reduces

the profitability of the company

Opportunities Threats

y

Rural financing and loans to smallenterprises could increase the market share

and profitability of ICICI.

y Growth in general insurance industry will

help increasing the market share of ICICI

LombardGeneral Insurance Company.

y

Global and domestic economic slow downcould further affect financial performance

of ICICI.


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SWOTHDFC

Strengths Weaknessesy Franchise strength and market

recognition in India and abroad

y Diversified revenue streams check

financial performance volatility

y Increasing capital strength provides

higher risk tolerance

y Relative lack of scale hampering

competitive strengths

y Deteriorating asset quality

Opportunities Threats

y Investments in ICT could boost

financial performance

y Growing Indian financial services

sector

y Positive outlook of the Indian

economy

y Intense competition likely to erode

margins

y Likely scenario of increasing interest

rates in India

y Increasing regulatory spending


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Common mistakes inBank

Customer Acquisition

Narrowly defining new customers

Underestimating the potential returns from new

accounts

Failing to tailor promotional messages to attract

new customers

Not using a variety of new products are costly

mistakes


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Not offering price appeals.

Failing to offer premiuns.

Not monitoring new customers costs.Not training employees in handling new

customers.

Not making a long-term commitment to thesenew customers.

Common mistakes inBankC

ustomer Acquisition


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ConsumerBehaviour Matrix in

Banking

No Purchase Relational Dependent

Repeat Passive Rational Active

ConsumerBehaviour Matrix

HIGH

HIGH

Uncertainty

LOW

LOW Involvement


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Powerpoint TemplatesPage 49

Product Development inBank

Marketing

There are two parallel paths involved in the NPD (new

product development) process:

one involves the ideageneration, productdesign and detail engineering;

the other involves market research and

marketinganalysis.


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Six stages for the development of a

product

Commercial Launching

Test marketing

Analysing the cost

Assessing of market potential

Screening of the concept

Idea Generation


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The screening of the product concept focuses on the process of narrowing

down the list of the ideas generated to a small number of concepts.

The assessment of market potential is the third stage in which we find

scanning of the market potentials at the apex level. The branch managers

can assess the potentials in their command areas.

The fourth stage draws our attention on analyzing the cost on the basis of acost-benefit analysis

The fifth stage before launching is test marketing which is found

instrumental in minimizing the risk element.

Finally, the commercial launch. The Reserve Bank of India is also required

to make the regulations liberal so that the public sector commercial banks

get an opportunity to make their services or schemes internationally

competitive.


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1. Core Benefit

The fundamental need or want that consumers satisfy byconsuming the product or service.

2.Generic ProductAversion of the product containing only those attributes or

characteristics absolutely necessary for it to function.3.Expected Product

The set of attributes or characteristics that buyers normally expect

and agree to when they purchase a product.4.Augmented Product

Inclusion of additional features, benefits, attributes or relatedservices that serve to differentiate the product from itscompetitors.

5.Potential Product

All the augmentations and transformations a product mightundergo in the future.


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9.Anywhere Banking

10.Online banking

11.Extension Counter (for example, NRI Services, Personal

Banking)

12.SMS Banking

13.Internet Banking

a)eTax

b)Online money transfer

c)Online Bank Securityd)Electronic bill payment

e)Shop Online

f)Other value added services


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Innovative products and

services introduced in Indian

Banking

Citibank SuvidhaPremium Savings Account:

Free access to domestic airport loungesFree access to premier golf ranges anddiscount on green fee

Daily withdrawal limit of Rs. 1 lakh

Earn while you spend:Get 1 Reward Pointon every Rs. 150 spent

Exclusive discounts at premier stores offeredby MasterCard


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Senior Citizen Account:

Dedicated Relationship Manager

Time Deposits

Higher Interest rates exclusive for the clients

Deposits are held in units of Rs. 1,000 for easy liquidity

Choice of flexible tenures

Option of overdrafts against your Time Deposit (allowing you to

meet your short-term liquidity needs, while earning higher rates of

interest on your deposit)Succession Planning offered by IL&FS Trust Company Ltd.

(ITCL)


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Innovative products andservices

introduced in IndianBanking

Oriental Bank of Commerce have prepared a detailed dress

code of their employees, others have gone a step forward and

are recruiting people from the airline and hospitality industries

to improve the quality of front line sales staff.

Food cards distributed by HDFC which can be used in select

restaurants (where VISA cards are accepted) and for purchase

of groceries, the user avails discounts by using such cards.

Cash back offer: On every purchase points are credited, which

can be redeemed later on.


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Thank You

Documents

MCB_Bank_Mktg_G3_IMG