evaluation of promotional strategies of icici bank

PSG COLLEGE OF ARTS AND SCIENCE

Coimbatore -14

An autonomous college and

Affiliated to Bharathiar University

The effects of Promotional strategies in the

Marketing of financial services in ICICI Bank

by

Suryabala.S

BBM II

Dec 2011

The effects of Promotional strategies in the Marketing of financial services in ICICI Bank 2011

Suryabala.S Page 1

TABLE OF CONTENTS:

Preface

Executive Summery

o Research objectives

Introduction

o Scope

Research

o Research methodology

o Sampling

o Data collection

Literature review

Data Analysis and interpretation

o Online banking

o iMobile

o PAYBACK

o Privilege Banking

o ATM Banking

Recommendation

Conclusion

Reference


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PREFACE

Effectiveness is the measure of the gap between results and objectives. Lower the gap, higher the

effectiveness. Thus it is an evaluation of the advertising and other marketing process used as

promotional strategies. The promotional evaluation process is frequently called accountability.

Management wants the promotional managers to identify exactly what results were obtained for

the marketing investment and to provide evidence of the return on investment. After all,

advertising uses the scarce resources that could be invested in a number of ways. Therefore, the

question that management poses is, “Did our promotional strategies reach the customers and

show any effect?" And it is the job of the advertising campaign planner to be able to answer that

question. To do so usually requires some form of promotional evaluation. Evaluation of

advertising campaign effectiveness is a form of research though it is somewhat different from

other forms. Most research is used to predict what might occur in the market place. Effectiveness

research, on the other hand is used to determine exactly what did happen. Although this

information might be used as a basis for future actions, its basic purpose is to measure what

occurred as a result of the promotional strategies and, therefore, what return was received on the

investment made. In short, the reasons to evaluate the promotional campaigns are as follows:

To determine if the objectives set for the advertising campaign were met. This of course

presupposes that measurable objectives were set in the first place. And that these

objectives are in line with the overall marketing objectives and strategies.

The first success of any effectiveness research would be that it forces managers to think

clearly and put down on paper, for themselves and others, what they expect the

promotional strategies to do.


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To quantify the return on the campaign investment. By knowing what was achieved,

management can relate that information to opportunity cost of money and determine cost

effectiveness of the promotional campaigns. Of course this is an ideal situation.

Measurements of promotional results are seldom precise enough to make this

quantification possible.

To use the results of effectiveness research to make changes, additions, or completely

alter course for future campaigns. No promotional campaigns are ever totally successful.


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EXECUTIVE SUMMERY

A successful product or service means nothing unless the benefit of such a service can be

communicated clearly to the target market. An organization promotional strategy can consist of:

Advertising:

Is any non-personal paid form of communication using any form of mass media.

Public relations:

Involves developing positive relationships with the organization media public. The art of

good public relations is not only to obtain favorable publicity within the media, but it is

also involves being able to handle successfully negative attention.

Sales promotion:

Commonly used to obtain an increase in sales short term. Could involve using money of

coupons or special offers.

Personal selling:

Selling a product service one to one. By personalizing advertising, response rates

increase thus increasing the chance of improving sales.

Direct Mail:

Is the sending of publicity material to a named person within an organization.

Message & Media Strategy

An effective communication campaign should comprise of a well thought out message strategy.

What message are you trying to put across to your target audience? How will you deliver that

message? Will it be through the appropriate use of branding? Logos or slogan design? The


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message should reinforce the benefit of the product and should also help the company in

developing the positioning strategy of the product.

Media strategy refers to how the organization is going to deliver their message. What aspects of

the promotional mix will the company use to deliver their message strategy? Where will they

promote? Clearly the company must take into account the readership and general behavior of

their target audience before they select their media strategy. What newspapers does their target

market read? What TV programmers do they watch? Effective targeting of their media campaign

could save the company on valuable financial resources.

RESEARCH OBJECTIVES

A) Primary Objective

To understand & measure the impact of advertising in the market.

To measure the effectiveness of promotional activities for a particular product class and

corporate advertising.

To understand and measure the affect of advertising in brand-building, brand re-call and

finally the choice of a plan while buying it.

B) Secondary objective

To know the promotional strategies of ICICI prudential. To know how they face their

competitor‟s strategies.

To know how they survive in the cutthroat competition.


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INTRODUCTION

In financial services, people are primarily bothered about security of their funds and default

risks. After the year 1969, the deposits of banks increased more than 80 times as a result of the

nationalization of banks. Paul Cox, (2007) revealed a fact that financial service providers are not

perceived highly trusted, so that they might have difficulty in selling risk-based products. The

effort to promote banking business is quite distinguished affair. At present, it has become very

tricky due to the changing trends of industry, increasing competition and efficiency of regulatory

environment, and the financial system. The complexity in the banking services is also an issue of

vital importance. This is the time when banks are offering new and innovative services,

frequently in the market. The content of promotional tools should help the customer in making

most valuable decision. This can be firmly said that well-designed promotional strategies are

very important to promote banking services effectively. In marketing any product or service,

customer satisfaction has been given the prime importance. The most frustrating aspect of bank

marketing is lack of management support, lack of inter-departmental cooperation, crisis

management, government intrusion and advertising & media problems.

Manpower in service organizations must work with the focus of satisfying the customer. Banking

should bring out the areas requiring improvement and which further throw light on the measures

to improve the quality of services. Promotional packages are very important for financial service

industry. Thus the orientation of banks should be with a much wider focus in relation to

consumer and market needs, and the consequent marketing strategies. The challenges put forth

by the changing environment have to be effectively tackled to identify the consumer needs and

providing valuable services through product innovation.

http://findarticles.com/p/articles/mi_qn6207/is_20040316/ai_n24907335/?lc=int_mb_1001


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SCOPE to

The Study

A big boom has been witnessed in banking Industry in recent times. A large number of new

players have entered the market and are vying to gain market share in this rapidly improving

market. The study deals promotional strategies given by ICICI Bank. The study then goes on

to evaluate and analyze the findings of their effect on customers so as to present a clear

picture of market strategy of the company.

The Company

The result of the survey will help the company to know about the effectiveness of various

promotional strategies followed by ICICI bank and how much effect does it have on the

buying decision of the customers. The results will also help the company to trace the loop

holes and then take the corrective measures to rectify them.

The Industry

This is a limited study which takes into consideration the responses of 50 people. This data

can be exported to take decision for promotional strategy across the industry. The

significance for the industry lies in studying these trends that emerge from the study. It is a

rapidly changing and evolving sector. People are only beginning to wake up to its vast

possibilities. A study like this can attempt to guide the future of the industry based on current

trends.


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RESEARCH METHODOLOGY

Research methodology is a strategy that guides a research in providing answers to research

questions and for this, research survey is being done. “Accuracy of the study depends on the

systematic application of the method”. The researcher has to decide the method to be used that

helps him to get a desired direction in a systematic way.

Methodology Adopted

Questionnaire Design

The questions were designed in an easily understandable way that the respondents may not have

any difficulty in answering them. The questionnaire also contained a comments section. This

section was included so as to get opinion of the people regarding the ICICI products and services

and suggestions for development.

Random Sampling

Sampling can be defined as a part of population. Thus random sampling may be defined as the

selection of a portion from the whole population in which each elements of the population has an

equal chance of being selected. A more please definition is that each element in the population

has a non-zero and known probability of selection a randomly drawn sample is an unbiased

sample. In this research survey 50 people were surveyed at random to get the relevant

information.

Sample Size: The sampling techniques used in this project are probability sampling techniques

and the methods used in cluster sampling.


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Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units.

These comprise of employees of MNCs, Govt. Employees, and Self employed etc.

Sample size: The sample size was restricted to only 50 between age group of 25-40.

Sampling Area: Coimbatore

The area of the research was Delhi Metro Railway Quarters, New Delhi,

Data Collection

Structured Questionnaire

In this collection data, structured questionnaire is used as a tool by asking a set of standardized

questions to know the effect of promotional strategies and advertisements followed by ICICI and

the behavior of the people for the products offered by ICICI.

Interview

The next step involved in collecting information requires discussion with people. Thus valuable

information was gathered informal friendly talks with the people.

Secondary Data Collection

Various websites were consulted to collect literature relevant to the topic.


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LITERATURE REVIEW

Promotion is the direct way an organization tries to reach its publicity. This is performed through

the five elements of the promotion mix, i.e. advertising, sales promotion, personal selling, public

relations, and direct marketing (czinkota & Ronkainen, 2004). With the growing importance of

the financial services pressures are escalating for more effective marketing management of the

financial services. Despite the recent recessions, the financial services sector is continuing to

grow in terms of turnover and profits and thus, has a supreme impact on the other spheres of the

economy. Consequently, there is currently growing interest in applying marketing techniques

and tools in financial services. (Meidan, 1996)

In spite of major changes on the market of financial institutions, there are indicators that banks

have not yet successfully embraced the marketing philosophy or achieved levels of its

implementation consistent with satisfied customers. Financial institutions are realizing that their

established promotion practices are inadequate for new market conditions as levels of customer

defection in the sector grow. Traditionally, banks have tried to reach out to everyone in the

community, but recent research proposes that banks should aim to identify and serve micro-

segments. (Dawn & Brown, 2000)

The role of promotion has been refined into managing long-term relationships with carefully

selected customers, including construction of a learning relationship where the marketers

maintain a dialogue with an individual customer (Dawes & Brown, 2000). Due to this fact, the

personnel are on the most important resources of a bank. Their competence will determine the

quality of the bank and how well it operates. (Marquardt, 1994)


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The difficulties with understanding a foreign culture often lead to insecurity, which as a result

makes it harder to operate on a new market. This is a reason why many banks choose to operate

in markets that are similar to those of their home countries. (Marquardt, 1994)

Cheese et al. (1988) first indicated the importance of effective bank communications strategies.

Despite the popularity of advertising in the academic field and the relating huge number of

studies published on advertisement-related matters, no any previous study on the specific topic

of financial advertising was found in the literature. This is not surprising as the same finding

was stated by Laskey et al. (1992) in the past, where they emphasized the missing literature and

the paucity of published research dealing with the effectiveness of bank advertising.

Since then, many studies were published, especially for the Greek bank market (Koutouvalas et

al., 2005; Mylonakis, 2004; Mylonakis et al., 1998), which covered spontaneously bank

advertising issues, mainly as relatively small portion of overall bank customer researches,

examining consumer satisfaction rates and more specifically whether or not bank customers were

influenced by advertising to select their main or secondary bank. The only pioneering research

paper found was that of Laskey et al. (1992) which dealt with strategy and structure in bank

advertising. They examined the effectiveness of advertising on bank customers and found that

respondents‟ overall attitude and aesthetic/emotional evaluations varied significantly and that

picture based advertising elicits a higher intention to patronize a bank. They also emphasized the

distinction between information and transformational advertising, the first found to be the most

effective.

In banking the temporal and spatial dimensions are perceived as more important than traditional

dimensions based on outcome and process elements. Tokunbo Simbowale (2005) examined the

usage of marketing concepts & techniques and recommended that a well-structured marketing


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department in banks is essential for profitability & effectiveness. A study by Krishna,

Suryanarayana & Srikant (2005) recommended that promotional strategies should be designed as

per the nature of the services to be promoted. The advertisers should seek a narrative approach to

communicate the service experience rather than a logical, argumentative approach. Narrative

approach involves storytelling methodology using sequence of events (Sehgal Roli, 2004).

Location convenience, speed of service, competence and friendliness of bank personnel are also

the most important points with maximum value in banking services (Laroche, & Manning,

1986). Meidan (1976) revealed that about 90% of the respondents banked at the branch nearest to

their home place and place of work. Convenience, in terms of location, was also found to be the

single most important factor for selecting a branch. It has been generalized in the studies that

services marketing advertisement is more challenging than the advertising of tangible products

(Ray and Bose, 2006).

Winning new customers costs 10 times more than simply holding onto existing ones. The case

should be taken in the marketing of financial services very seriously. While formulating

marketing strategy, a bank should focus attention on

(i) consumer sovereignty,

(ii) attitude,

(iii) responsiveness and personal skills of bank staff,

(iv) revitalizing the marketing department,

(v) top management support to the marketing department,

(vi) participation of marketing personnel in key bank decisions


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ANALYSIS

It includes the summary of the branch feedback scenario and its performance and recognition in

the soaring mass market available in Coimbatore based on the survey conducted.

DATA AND INTERPRETATION

The following are some of the major questions put forth to the person taking up the questionnaire

and according to whose response the interpretation has been made.

Q: Do you use the online banking system provided by the ICICI Bank?

Graphical representation of the result

From the survey conducted it was found that most of the loyal customers and the privilege

customers were accessing ICICI Online banking facility and are making the best use of it.

And merely 80% of them find it user friendly and most effective in use.

The non-account holders are aware that there is Online banking facility provided by the ICICI

Bank but they aren‟t much into the functions and its accessibility. Yet they find it very

0 5 10 15 20 25 30

no

yes


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convenient when a bank provided the customers with online banking facility due to the highly

fast moving world.

Q: Do you use the iMobile which is easy, convenient and secure to use?


ICICI Bank iMobile is a breakthrough innovation in banking where practically all internet

banking transactions can now be simply done on mobiles phones. Customers can now transfer

funds to ICICI and Non ICICI Bank accounts just with the click of their mobile. The application

covers Savings bank, Demat, Credit Card and Loan accounts. Customers can also pay their

utility bills and insurance premium through this facility. ICICI Bank offers this facility free of

charge to customers. Some of the amazing facilities this application offers: Balance enquiry,

Funds Transfer, Cheque Book Request, Cheque Status, Stop Cheque, View Transaction Details,

View Credit Card, Demat, Loan Account Transaction details, Bill pay, Bank Locations and

Prepaid Mobile Recharge.

Though with the introduction of smartphones and 3G services prevailing in every networks and

the products, the mobile bank networking application called iMobile is not aware to most of the

customers. They aren‟t aware that banking is made even simpler with this application.

0 5 10 15 20 25 30 35 40

No

Yes


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Mobile banking payments and mCommerce might finally get some users in India. ICICI

Bank has launched its Mobile Banking Application called iMobile to all its users.

The application can let you do most of the actions you can perform over internet banking.

There‟s surely a huge amount of risk connected to mobile banking for sure. That the main reason

m commerce has always found very less adoption. This app asks for digits on your debit /credit

card to complete the transaction, this is to a feature to prevent misuse and also to make sure the

transaction is being carried out by the account owner. It demonstrates how mobile technology is

making an impact on our lives.

iMobile is ICICI Bank's mobile banking application which is easy, convenient and secure to use,

iMobile lets the account holder transfer funds, pay bills, book travel or movie tickets, recharge

their prepaid mobile and DTH, locate an ATM, and a do lot more while they are on the go.

The non-account holders aren‟t well aware of the iMobile application either. Though much effort

has been taken by the ICICI Bank to make banking even simpler, it isn‟t very effective with the

account holders and the public not much aware of the facilities provided by the bank to do so.

http://www.fonearena.com/blog/802/icici-mobile-banking-application-imobile.html




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Q: Are you aware of the PAYBACK (i-mint) which is a loyalty program and manages

reward redemption as an authorized vendor of ICICI Bank and redeem your PAYBACK

points for fabulous rewards?


PAYBACK is India's largest and one of Europe‟s most successful loyalty programs and manages

reward redemption as an authorized vendor of ICICI Bank. You can earn PAYBACK points on

purchases on ICICI Bank Credit Cards and Debit Cards. Earn even more points at HPCL,

makemytrip.com and many more PAYBACK partners in your city or online and redeem your

PAYBACK points for fabulous rewards.

With PAYBACK you have the power to collect points from different sources into a single

account and redeem them for fabulous rewards. You will continue to earn PAYBACK points

every month on your ICICI Bank Credit Card. These points will get transferred as PAYBACK

points to your PAYBACK account when your ICICI Bank Credit Card statement gets generated.

Besides, if you use your PAYBACK card at any of the PAYBACK partners while making

payment, you will be awarded additional PAYBACK points from the respective partner.

0 10 20 30 40 50 60

No

Yes


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Every month, the reward points earned on your lCICl Bank Credit Card will get transferred as

PAYBACK points to your PAYBACK account automatically when your ICICI Bank statement

gets generated.

The core idea behind the scheme is to encourage people to spend more, that too at certain

specific merchants/companies with whom i-Mint has a tie up. In exchange for your money which

is spent at channel partners you will get some points, which when accumulated, can be

exchanged for some gifts. iMint started sometime in late 2006/early 2007.

The concept behind it is really good, but the promoters of i-Mint do not seem to have any

intention of making it a really pleasant experience to end users. Through their incompetent

website and poor customer service, they are destroying a beautiful business opportunity and

turning users away. It‟s high time i-Mint channel partners (lifestyle, ICICI Bank,

Indian, MakeMyTrip and other lesser known shops) take a serious look at this, put some pressure

on i-Mint promoters and ensure that customer gets to enjoy their usage of i-Mint.

Some immediate action points for i-Mint Promoters:

It is necessary to show some courtesy of acknowledging and responding to mails.

Giving a toll free number and investing in site's infrastructure would increase

its efficiency and reliability.

It would be much easier if the points get credited without any additional effort by the

user.

Give online provisions to claim points for eligible transactions for which i-Mint card was

not swiped (this can be done by taking bill number, verifying it with service provider and

then crediting the points)

http://www.icicibank.com/

http://www.makemytrip.com/


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The value of gifts should be at least 2-3% of the amount spent to accumulate the points

which were needed to exchange that gift. If it is less than 1% the extra time and effort

spent in redeeming won‟t be worth it.

To get a better picture of the performance and reach conduct a survey and collect

feedback from your users to recognize their views about the service.

Revamp the website to an user friendly version.


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Q: Are you aware of the features provided of privilege banking provided by ICICI Bank?

Having taken banking to the very doorsteps of the customers across the country, ICICI Bank has

rolled out what it calls „privilege banking‟. Under this, the bank branches have been specially

equipped to give a large number of customer accesses to ICICI Bank products and services with

the convenience that a privileged customer is entitled to. Each branch has a dedicated service

area for privilege banking customers, handled by specially trained professionals and where the

waiting period is minimal.

The following the features provided to the privilege bankers by ICICI Bank:

Payable-at-par chequebook at no extra cost

ICICI Bank International VISA Debit Card – A debit-cum-ATM card

Free Internet Banking

Anywhere Banking

Standing instructions facility

Nomination facility

Interest is payable half-yearly

95%

5%

Overall review

Yes

No


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From the survey taken it was clear that nearly every privilege banker was aware of the features

of the ICICI privilege banking. Free internet banking was one of the features that interested and

found convenient by many who were aware of it and by those who use it frequently. It gave them

the convenience of banking from anywhere anytime. International debit card comes with the

category of the account holders (i.e.) either gold or titanium. It serves as both debit com ATM

card which adds up the product value.

This gets us to an inference that privilege banking attracts much customers and gives way for an

easy and convenient way of banking in this fast moving electronic life of the account holders.

47

47.5

48

48.5

49

49.5

50

50.5

payable at par cheque book at no extra cost

Free internet banking

Standing instruction

facility

Nomination facility

International Debit card

No of people aware of the various features of privilege banking

No of people aware of the various features of privilege banking


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The privilege account holders even feel that their relationship managers keep them in track of

their account transactions and help them out with the banking procedures. They stay in touch

with their customers and give them a secure feeling of banking.

It creates a better understanding between the customers and the relationship managers. Yet the

customers feel a bit disturbed when the products are tried to be pushed at them. It seems like the

relationship managers give a wrong impression to their customers when they give constant calls

to check upon them. Though privilege banking helps to maintain loyal customers and sustain

them by providing full satisfaction and selling new products to them, not many customers

recognize the value of this service. This just seems as another part of banking facility though it is

one of the evolutions in banking where the customers are the king.


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Q: Are you aware of the services provided by the ATM Banking of ICICI?

ATM means neither “avoids traveling with money” nor “any time money,” but certainly implies

both. Slim ATM cards are fast replacing confounding withdrawal forms as a convenient way of

getting your money from banks. In a way, they are rewriting the rules of financial transaction. A

smart person no longer needs to carry a wallet full of paper money on his person. All he needs to

do is fish out an ATM (automated teller machine) card, insert it in the slot, punch in a few details

and go home with hard cash.

Customer satisfaction is one of the major factors measuring the performance of the banks. ATM

does not mean the plastic card and PIN (Personal Identification Number) but the services for

which you can use it are the most important part. These services are cash/cheque deposit, fast

cash withdrawal, view account balances & mini statements and request a chequebook or account

statement.

76%

24%

Total percentage of people aware of the

services provided by ATM Banking of

ICICI

Yes

No


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The following table shows the percentage of customers using this service very often and making

the efficient use of the ATM facility provided by ICICI Bank.

Customers using services very often

Services Cash/ cheque

deposit

Fast cash

withdrawal

View account

balances

Request cheque

book or account

statement

ICICI Bank 30% 100% 60% 10%

From the data collected it was found that nearly all the customers use the ATM for cash

withdrawal which is the ultimate purpose of it. And only 3/4th

of the customers use ATM to view

their account balance. Merely 1/3rd

of the customers from whom the data was collected use ATM

for cash deposit. Very few customers use ATM to request cheque book and account statement.

The following table projects the percentage of customers not using the major services of ATM

provided by ICICI Bank.

Customers never using these services

Services Cash/ cheque

deposit

Fast cash

withdrawal

View account

balances

Request cheque

book or account

statement

ICICI Bank 25% - 3% 45%


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ICICI Bank's widespread network of ATMs makes it easy and convenient for one to bank 24

hours a day.The various new value added services provided by the ATM Banking facility of

ICICI Bank are as follows:

Open Fixed deposit

Transfer funds

Pay credit card bills

Request cheque book

Recharge mobile

Pay utility bills

Update mobile number

Not many customers are aware of the new value added services provided by the ICICI ATM

Banking.

0

5

10

15

20

25

30

35

40

45

50

Open fixed

deposit

Transfer funds

pay credit

card bills

recharge mobile

pay utility bills

update mobile number

No of customers aware of the other services provided by ATM

No of customers aware of the other services provided by ATM


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From the data collected it was found that only a hand full of customers were aware that they

could update their mobile number to their account via the ATM. Nearly all the customers were

aware that they could transfer funds to other accounts through ATM facility provided by ICICI

Bank. The new service to recharge mobile was not known to many. Though a few customers

were aware of it yet they weren‟t the service users. The customers were well aware that they

could pay their credit card bills through ATM and many customers even use this service.

Thus it was found that though the efforts of ICICI Bank to make banking easier for customers

and its value added services provided through ATM has made a great change in financial sector

and created an unique spot for the bank, it does not influence much on the customers satisfaction

and their loyalty towards the bank. It just serves as a unique facility and does not attract much

customers yet sustains the present customers.


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RECOMMENDATION

Strategies for the enhancement of bank marketing

In the fierce competitive market, needs of customer keep changing. Hence, our marketing

strategy must be dynamic and flexible to meet the changing scenario. Here are steps that form

successful and effective marketing strategy for bank products.

Emphasis on Deposits

Emphasis, though in a discrete manner, should be given to mobilize more of term deposits as

they are more profitable for the bank in comparison to demand.

Form a Saleable Product Scheme

Bank should form a scheme that meets the needs of customers. A bunch of such schemes can

also form a product. A bank product may include deposit scheme, an account offering more

flexibilities, technically sound banking, tele/mobile/net banking, an innovative scheme

targeted to special group of customers like children, females, old aged persons, businessman

etc. In short, a bank product may consist of anything that you offer to customers.

Effective Branding

Man is a bundle of sentiments and emotions. This can effectively be helpful in branding our

products. Considering the features of products and target group of customers, the product can

be effectively branded so as to sound it catchy and appealing. The branding should be done

in such a way that the brand name must attract the attention of customers. It should be easy to


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remember. The target group and the silent feature of the product should resemble brand

name. This will help a lot in making the brand successful. All employees and all our

campaigns should refer the product by its brand name only so that to strike the same in the

customer‟s mind.

Products for Women

The national perspective plan for women states that 94 pc of women workers are engaged in

the unorganized sector and 83 pc of these in agriculture and allied activities like dairy, animal

husbandry, sericulture, handloom, handcrafts and forestry. Banks should do something to

improve their access to credit which they require.

Customer Awareness

There is a need to educate the customers on bank products. Efforts should be made to widen

and deepen the process of information flow for the benefit and education of Indian

customers. Today, the customers do not have any idea as to how much time is required for

any type of banking service. The rural customers are not aware for what purpose the loans

are available and how they can be availed. Customers do not know the complete rules,

regulations and procedures of the bank and bankers preserve them for themselves and do not

take interest in educating the customers. It is a need to educate the customers from the

grassroots of banking. It is time that each bank branch takes steps to educate the customers

on all banking function, which will facilitate growth of banking on healthy lines both

qualitatively and quantitatively.


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Advertisement

Advertisement is an eminent part of marketing of bank products. Advertisement should be

such that appeals to people. It should not follow the orthodox pattern of narrating a product.

For effective advertisement, bank should understand people‟s tastes and choices.

Selling Products in Rural Areas

For enhancing the marketing of their product, bank should sell their products in rural areas.

For it, there is a need to open branches in the rural areas.

Informing Customers about Products

The bank should embark upon aggressive marketing of its products, particularly at the time

of launching a new product, which will inform the perspective customers regarding product

and at the same time relieve staff at branch level from explaining the product to all

customers.

Customer Convenience

In a service industry like banking where product differential is hard to maintain and quality

of service depends upon the service provider, from whom it cannot be separated. So the bank

employees have to render services to the satisfaction of the customer, not as per their own

conveniences or whims.


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Re-orient Staff

Sincerity of efforts in implementation of the measures is lacking among the bank staff. It is a

fact that its employees are not able to rise up to the expectations of its customers. They lack

in their behavior, attitude and efficiency. The phenomenon is glaring at urban centers.

Therefore, it calls for an immediate attention which is missing link in the entire process of

marketing, and the bank should undertake all such steps to motivate and reorient its staff.

Sale of Products and Services through E-delivery Channels

After the Information Technology Act, many new e-delivery products have been introduced.

These e-delivery channels are very helpful in enhancing the marketing of various products

and services. Thus the bank should sale the products and services through e-delivery

channels.

Sale of Products and Services through Web-sites

Internet is a network of network which connects the world. Thus, the bank should sale their

products through web-site. This will enhance the marketing of the products not only at the

national but also at the international level


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CONCLUSION

Thus the study implies that for a successful and effective banking marketing of bank products is

a necessary condition. This condition can only be fulfilling only by attracting the more and more

customers. Thus, bank should make only policies which are helpful in fulfilling the needs of

customers.

Banking sector reforms have changed the traditional way of doing banking business. Mainly

technology is the outcome of banking reforms. Customer is now the king and customer focus or

satisfaction of customer is the main aim of the banks. With the introduction of new products and

services competition has grown up among the banks. Only those banks will survive who face the

competition with the effective ways of marketing

Banks Marketing is defined as a aggregate of function directed at providing service to satisfy

customer‟s financial needs and wants, more effectively than the competition keeping in view the

organizational objective of the bank. The bank marketing has become a very complex yet

interesting subject as it requires the knowledge of economics, sociology, psychology, banking

and also core marketing concept .In marketing, it is the customer who has the upper hand. The

mantra of effective marketing bank products lies in the systematic and professional approach

towards satisfying customers‟ needs. Thus, banks have to set up “Research and Market

Intelligence” wings so as to remain innovative to ensure customer satisfaction and to keep

abreast of market development.


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