ASSIGNMENT

OF
MARKETING OF SERVICES

SBI 7’Ps

Submitted to : Submitted By:

Bhavneet Kaur
MBA II
61121
 INTRODUCTION
 It is the India's largest bank with total assets of US$ 388 billion.
 It has a network of 17000 branches and 30000 ATMs in India and presence in 34
countries.
 It offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialised
subsidiaries and affiliates in the areas of investment banking, life and non life
insurance, venture capital and asset management.
 Currently, it has subsidiaries in the UK, Russia, Canada, branches in the US,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai international
Finance Centre and representative offices in UAE, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia.
 It’s equity shares are listed in India on BSE and NSE.

7P’S OF MARKETING SERVICES OF SBI

 Product
 Pricing
 Place
 Promotion
 People
 Process
 Physical evidence

Product
A product is something which satisfies the needs and wants of the customer. It is the actual item
which is held for sale in the market. Product mix constitutes the combination of all the services
for sale in the market.
For example, the product mix of a saloon will be the combination haircut service, manicure and
pedicure service, facial, shaving etc.

The life cycle of services is same as that of a product as it starts from the day it was first thought
until the time it is finally removed from the market.
Products of SBI :-

Deposits
Investments
Anywhere banking
Loan
Cards
DEMAT services
Mobile banking

Deposits
Bank deposits consist of money placed into banking institutions for safekeeping. These deposits
are made to deposit accounts such as savings accounts, checking accounts and money market
accounts. The account holder has the right to withdraw deposited funds, as set forth in the terms
and conditions governing the account agreement.

Investments
Investment banking is a specific division of banking related to the creation of capital for other
companies, governments and other entities. Investment banks underwrite new debt and equity
securities for all types of corporations, aid in the sale of securities, and help to facilitate mergers
and acquisitions, reorganizations and broker trades for both institutions and private investors.
Investment banks also provide guidance to issuers regarding the issue and placement of stock.

Anywhere Banking
Anywhere Banking is a highly secure and convenient system for online, real-time inter branch
transactions across the Bank. Anywhere banking offers you greater flexibility, transaction
power, convenience and ease in banking. The benefits of anywhere banking come to light in
the context that it is no longer practically possible to carry money everywhere we go and also
to restrict banking to one branch or open multiple bank accounts wherever we go.

Loan
In finance, a loan is the lending of money from one individual, organization or entity to another
individual, organization or entity. A loan is a debt provided by an organization or individual to
another entity at an interest rate, and evidenced by a promissory note which specifies, among
other things, the principal amount of money borrowed, the interest rate the lender is charging,
and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time,
between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal,
from the lender, and is obligated to pay back or repay an equal amount of money to the lender at
a later time.

Cards
Bank-issued plastic card with a magnetic stripe that holds machine readable identification
code. Bank cards are used for electronic commerce (with magnetic stripe readers or via
Internet) and for banking transactions through automatic teller machines (ATMs). Two main
types of bank cards are credit cards (which allow drawing of funds up to an approved credit
limit) and debit cards (which allow drawing of funds up to the available balance in
cardholder'saaccount).

DEMAT services
Dematerialized account number is quoted for all transactions to enable electronic settlements of
trades to take place. Every shareholder will have a Dematerialized account for the purpose of
transacting
Access to the Dematerialized account requires an internet password and a transaction password.
Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the
Dematerialized account are automatically made once transactions are confirmed and completed.

Mobile banking
Mobile banking is a service provided by a bank or other financial institution that allows its
customers to conduct financial transactionsremotely using a mobile device such as
a smartphone or tablet. Unlike the related internet banking it uses software, usually called
an app, provided by the financial institution for the purpose. Mobile banking is usually
available on a 24-hour basis. Some financial institutions have restrictions on which accounts
may be accessed through mobile banking, as well as a limit on the amount that can be
transacted.

Pricing
Pricing in case of services is quite more difficult than in case of products. The price
of the product depends upon the services provided by the Bank on the individual
product to the customers. The pricing strategies of SBI are discussed below.
The pricing decisions and the decisions related to interest and fee or commission
charged by banks are found instrumental in motivating or influencing the target
market.
The IBA and the RBI are concerned with regulations. The rate of interest is
regulated by the RBI and other charges are controlled by IBA.
The banking industry is required to frame two- fold strategies. First, the strategy
is concerned with interest and fee charged and the second strategy is related to
the interest paid.

PRICING OF SBI :-

• INTEREST RATES
• CONSULTING FEES
• COMMISSION
Parameters for determining Price:
• Bank product group price specification
• Bank product price specification
• Business partner price arrangement
• Business partner price agreement.

PLACE
The place part of the marketing mix is where the customer receives the product or
service. Place in case of services determine where is the service product going to be
located. SBI has 17,000 branches in India, as on December 2013, of which 9,851
(66%) were in Rural and Semi-urban areas and had 190 overseas offices extend
over 34 countries. The selection of a appropriate place for the establishment of a
branch is important with the viewpoint of making places accessible. Researchers
find the following reasons why SBI select a specific place as a branch?
The safety and security provisions
Infrastructure facility
Market coverage
Convenient to both the parties, such as the users and the bankers

 BRANCH
 ATM
 HOUSE / OFFICE (INTERNET BANKING & MOBILE BANKING)

Promotion

A business has to convey about its offering and its USP to the customer. It is what keeps it alive
in this competitive environment. The promotion mix decides the marketing communication
techniques, strategies, and mediums used. The medium includes:
• ADVERTISING - Television, radio, movies, theatres.
• PRINT MEDIA- Hoardings, newspaper, magazines.
• PUBLICITY- Road shows, campus visits, sponsorship.
• SALES PROMOTION- Gifts, discount and commission, incentives, etc.
• PERSONAL SELLING- Cross-sale (selling at competitors place),
personalized service

People

Services are inseparable from the provider. These providers form the people of the service
marketing mix. For example, the chef in the restaurant, a banker in the bank, an air hostess in the
flight, etc.Companies spend much time in selecting and training their staff and every other
person who represents the company to the customer.

 BRANCH MANAGER
 FRONT LINE OFFICERS
 EMPLOYEES
 CUSTOMERS

Process

The actual mechanism involved in delivering a service is the process. It’s the route of the actual
product from the provider to the user. For example, a bank has a definite process for its every
operation (to deposit a cheque, to withdraw money, to change your address, etc.).

Since services are diverse, processes involved in carrying out those services are also diverse.
Process can be involved in planning and/or in the execution. But it is always involved in carrying
out a service.

The process of SBI possess following component.

Flow of activities
Standardization
Customization
Number of steps
 Simplicity
Customer involvement

Physical Evidence

Services are intangible. But they are often provided along with many tangible elements. Physical
evidence includes the environment/place where the service is provided and any tangible elements
that facilitate the performance or communication of the service. It’s the tangible part which is
more or less complementary to the service. For example, a physical evidence mix of a premium
saloon will include the staff’s uniform, a good ambience created by playing nice music and
spraying good room freshener, etc

It includes :-
internet/ web pages
Paperwork
Brochures
Furnishing
Business cards
The building itself
Signage
Reports
Punch lines
Mobile ATMs