Marketing Strategy

Babli 02

Gokul D 11

Shraddha Labde 23

Ravikant Sharma 43

Prabhat Kumar Sinha 48

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.

Marketing is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

What is bank marketing ?

Bank marketing is the aggregate of functions, directed at providing services to satisfy customer financials (and other related) needs and wants, more effectively and efficiently than the competitors keeping in view the organization objectives of the bank

Why bank marketing is necessary ?

• The existence of the bank has little value without the existence of the customer

• Aim is not only to create and win more and more customers but also to retain them through effective customer service

• Appropriate promise to a customer through a range of services (products) and also to ensure effective delivery through satisfaction is necessary

Concept of bank marketing

• Identifying the most profitable market now and in future

• Assessing the present and future needs of the customers

• Setting business development goals and making plans to meet them

• Managing the various services and promoting them to achieve the plans

• Adapting to a changing environment in the market place

Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Communication

Information

Goods/services

Money

The 4 Ps & 4Cs

MarketingMix

Product

Price Promotion

Place

CustomerSolution

CustomerCost

Communication

Convenience

CustomerSolution

CustomerCost

Communication

CustomerSolution

CustomerCost

Convenience

Communication

CustomerSolution

CustomerCost

Marketing Triangle

Customers

CompetitionCompany

How Do Consumers Choose Among Products

& Services?• Value - the value or benefits the customers gain

from using the product versus the cost of obtaining the product.

• Satisfaction - Based on a comparison of performance and expectations.

– Performance > Expectations => Satisfaction

– Performance < Expectations => Dissatisfaction

Customer looks for Value

Value = Benefit / Cost

Benefit = Functional Benefit + Emotional Benefit

Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

Analysis Of Competition

• Who are your competitors?

• What are their strengths and weaknesses?

• What have been their strategies?

• How are they likely to respond to your Marketing plan?

Strategic 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 a particular time? – Customer Value

– What are its primary goals and how will these be achieved? – how will this value be delivered

Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission

Strategy FormulationEnvironmental Analysis

Internal AnalysisCompetitorCustomerSupplier

RegulatorySocial/ Political

Technology Know-HowManufacturing Know-How

Marketing Know-HowDistribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies

• Are Banks truly marketing-savvy and Are Banks truly marketing-savvy and customer - centric?customer - centric?

Myth buster – The range of products has Myth buster – The range of products has

emerged from beingemerged from being

competition-centric.competition-centric.

Myth 1 – The larger the range of products,

the more customer-centric I am.

• Myth 2 – Better technology (read CRM) leads to better customer service.

Myth buster – TechnologyMyth buster – Technology

alone does not deliver, alone does not deliver,

helps people do.helps people do.

• 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

Myth buster – Customers needMyth buster – Customers need

To be educated too…To be educated too…

Myth buster – Customers Myth buster – Customers are not only present are not only present where competition is.where competition is.

• Myth 4 – The only way to get a customer is from competition.

• Myth 5 – Just advertise and - You will sell.

Myth buster – Advertising will only sell, Myth buster – Advertising will only sell,

Not retain customers.Not retain customers.

Myth 6 – No difference between marketing & selling

Myth buster – Myth buster – “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.

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

Myth buster – TMyth buster – Trust 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!!

Current Marketing Strategies

•Referral Services

•Direct mailing

•Cold calling

•Offering items having your brand identity

•Using the media

•Getting celebrities to endorse the product or services

•Sponsoring events

•Using permission based marketing

Drivers 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

Stages of Customer Interaction

Rural Bank Marketing

• Follows 80-20 Parato principal• Bankers need to understand the rural psychology• Employing local literate youth for confidence

building• Banker must be aware of agriculture aspects,

cultural communal aspects, institutional facilities etc

• Process of changes should be known to him• Status of various developmental plans should be

known

Rural Strategy

• R : Retail business for rural community as customer and producer

• U : Urban facilities, investments, infrastructure• R : Animal husbandry and Allied activities• A : Agri Productions• L : Linkages and synergy

Strategies for Rural Areas

• BY PROPER COMMUNICATION IN INDIAN LANGUAGE

• BY UNDERSTANDING CULTURAL AND SOCIAL VALUES

• BY PROVIDING WHAT CUSTOMER WANT

• BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS • BY PROMOTING INDIAN SPORTS TEAM

• BY DEVELOPING RURAL-SPECIFIC PRODUCTS

• BY GIVING INDIAN WORDS FOR BRANDS

• BY EFFECTIVE MEDIA COMMUNICATION

• BY ADOPTING LOCALISED WAY OF DISTRIBUTING

• MELAS