MARKETING OF BANKING SERVICES.

1.Introduction.
Bank Marketing.
Why Bank Marketing.
Features oI Bank Marketing.
Services.
Characteristics oI Services.
DiIIerence between Product and Services.

2. Marketing.
Features.
Marketing oI Tools and Techniques.
Marketing Mix in Banking.
Growth oI Service Market.
Marketing Approach in Banks.

3. JustiIication Ior Marketing the Banking Services.
SatisIaction oI Customer Needs.
Bank Marketing in the Indian Perspective.

4. Articles.
Summary
Conclusion.

Shyamji Mehrotra.
A Var|el|rg persor W|lroul adequale rar|el|rg s||||s W||| deslroy sa|es
|rslead ol |rcreas|rg |l.Var|el|rg ol l|rarc|a| producls reed rol or|y se|||rg
s||||s, oul adequale |roW|edge aooul oar||rg Wor|d a|so. A good
sa|espersor requ|re r|grl soll s||||s |||e pos|l|ve all|lude, good
corrur|cal|or elc.
'Nothing happens in a company unless a product or services is sold,
Everything else is cost.

Introduction.
%re orgo|rg process ol ecoror|c relorrs ras corp|ele|y crarged lre
operal|ora| erv|rorrerl lor lre Wro|e oar||rg |rduslry |r lre courlry.
8ar|s are roW requ|red lo cope W|lr sl|ll corpel|l|or |r ous|ress ard a|so
lre corp|ex regu|alory rorrs regard|rg cap|la| adequacy ard prov|s|or|rg.
8ar|s are lorced lo adopl var|ous rar|el|rg lecrr|ques ard approacres.
%rus, rar|el|rg ras oecore |rperal|ve lor a|| oar|s |rc|ud|rg lrose |r lre
puo||c seclor.
Var|el|rg |r oar|s car oe slaled as a reW preroreror lral |s srap|rg We|| over lre pasl ore decade.
Puo||c seclor oar| rard|y cors|dered rar|el|rg as a loo| lor ous|ress. %re corpel|l|or, deregu|al|or lral
lo||oWed lre relorrs ras crarged lre erv|rorrerl lor oar|s, Wrere rar|el|rg ras occup|ed lre p|ace |r
lre ous|ress ol oar|s. %oday, rar|el|rg |r lre oar||rg |rduslry |s craracler|zed oy rary |rroval|ors |r
producls ard serv|ces, use ol advarced lecrro|ogy |r producl des|gr, up gradal|or ol de||very sysler,
adverl|s|rg ard sa|es prorol|or acl|v|l|es, Wrelrer |r puo||c seclor or pr|vale seclor. 8ar|s roW rave a l|rr
lral rar|el|rg slraleg|es a|ore car or|grler lre lulure ol oar||rg ous|ress. Var|el|rg |r oar|s ras
oecore syroryrous W|lr cuslorer ard oar|s are lourd ergaged |r severa| acl|v|l|es ol d|scover|rg,
creal|rg ard sal|slacl|or cuslorer reeds.
lrd|ar oar||rg |s al cross roads loday. w|lr lre deregu|al|or ard
||oera||zal|or process |r lu|| sW|rg, lre corsequerl po||cy crarges
|rlroduced |r lre lrd|ar l|rarc|a| sysler |r gerera| ard oar||rg |r parl|cu|ar
are ellecl|rg urprecederled crarges |r |ls lurcl|or|rg. w|lr lre ererg|rg
crarges d|d spr|rg up reW cra||erges ol correrc|a| v|ao|||ly, cosl
ellecl|veress, ellecl|ve rar|el|rg slralegy, elc.Var|el or|erled po||c|es a|so
gave o|rlr lo reW p|ayers |||e lore|gr ard pr|vale seclor oar|s ard
suos|d|ar|es oller|rg var|ed r|gr lecr ard cosl ellecl|ve 3erv|ce. %rere Was
ar aoso|ule sr|ll lror se||ers |rlo ouyers' rar|el, eslao||sr|rg lre
'corsurer' as lre |ey laclor |r lre rar|el. %re d|clur 'as lre oar| ex|sls
oecause ol |ls cuslorers, ras oecore rore prorourced ard re|evarl |r lre
preserl corlexl. %rus, rar|el|rg corsl|lules lre |ey slralegy lor oar|s lo
rela|r good cuslorers ard a|so arl|c|pale lre|r lulure derards.
MARKETING OF BANKING SERVICES.
1.Introduction.
Bank Marketing.
Why Bank Marketing.
Features oI Bank Marketing.
Services.
Characteristics oI Services.
DiIIerence between Product and Services.
2. Marketing.
Features.
Marketing oI Tools and Techniques.
Marketing Mix in Banking.
Growth oI Service Market.
Marketing Approach in Banks.
3. JustiIication Ior Marketing the Banking Services.
SatisIaction oI Customer Needs.
Bank Marketing in the Indian Perspective.
4. Articles.
Summary
Conclusion.
Shyamji Mehrotra.
A Var|el|rg persor W|lroul adequale rar|el|rg s||||s W||| deslroy sa|es
|rslead ol |rcreas|rg |l.Var|el|rg ol l|rarc|a| producls reed rol or|y se|||rg
s||||s, oul adequale |roW|edge aooul oar||rg Wor|d a|so. A good
sa|espersor requ|re r|grl soll s||||s |||e pos|l|ve all|lude, good
corrur|cal|or elc.
'Nothing happens in a company unless a product or services is sold,
Everything else is cost.
1
Introduction.
%re orgo|rg process ol ecoror|c relorrs ras corp|ele|y crarged lre
operal|ora| erv|rorrerl lor lre Wro|e oar||rg |rduslry |r lre courlry.
8ar|s are roW requ|red lo cope W|lr sl|ll corpel|l|or |r ous|ress ard a|so
lre corp|ex regu|alory rorrs regard|rg cap|la| adequacy ard prov|s|or|rg.
8ar|s are lorced lo adopl var|ous rar|el|rg lecrr|ques ard approacres.
%rus, rar|el|rg ras oecore |rperal|ve lor a|| oar|s |rc|ud|rg lrose |r lre
puo||c seclor.
Var|el|rg |r oar|s car oe slaled as a reW preroreror lral |s srap|rg We|| over lre pasl ore decade.
Puo||c seclor oar| rard|y cors|dered rar|el|rg as a loo| lor ous|ress. %re corpel|l|or, deregu|al|or lral
lo||oWed lre relorrs ras crarged lre erv|rorrerl lor oar|s, Wrere rar|el|rg ras occup|ed lre p|ace |r
lre ous|ress ol oar|s. %oday, rar|el|rg |r lre oar||rg |rduslry |s craracler|zed oy rary |rroval|ors |r
producls ard serv|ces, use ol advarced lecrro|ogy |r producl des|gr, up gradal|or ol de||very sysler,
adverl|s|rg ard sa|es prorol|or acl|v|l|es, Wrelrer |r puo||c seclor or pr|vale seclor. 8ar|s roW rave a l|rr
lral rar|el|rg slraleg|es a|ore car or|grler lre lulure ol oar||rg ous|ress. Var|el|rg |r oar|s ras
oecore syroryrous W|lr cuslorer ard oar|s are lourd ergaged |r severa| acl|v|l|es ol d|scover|rg,
creal|rg ard sal|slacl|or cuslorer reeds.
lrd|ar oar||rg |s al cross roads loday. w|lr lre deregu|al|or ard
||oera||zal|or process |r lu|| sW|rg, lre corsequerl po||cy crarges
|rlroduced |r lre lrd|ar l|rarc|a| sysler |r gerera| ard oar||rg |r parl|cu|ar
are ellecl|rg urprecederled crarges |r |ls lurcl|or|rg. w|lr lre ererg|rg
crarges d|d spr|rg up reW cra||erges ol correrc|a| v|ao|||ly, cosl
ellecl|veress, ellecl|ve rar|el|rg slralegy, elc.Var|el or|erled po||c|es a|so
gave o|rlr lo reW p|ayers |||e lore|gr ard pr|vale seclor oar|s ard
suos|d|ar|es oller|rg var|ed r|gr lecr ard cosl ellecl|ve 3erv|ce. %rere Was
ar aoso|ule sr|ll lror se||ers |rlo ouyers' rar|el, eslao||sr|rg lre
'corsurer' as lre |ey laclor |r lre rar|el. %re d|clur 'as lre oar| ex|sls
oecause ol |ls cuslorers, ras oecore rore prorourced ard re|evarl |r lre
preserl corlexl. %rus, rar|el|rg corsl|lules lre |ey slralegy lor oar|s lo
rela|r good cuslorers ard a|so arl|c|pale lre|r lulure derards.
2
Bank marketing.
0ery| weyer ol 8arc|ays 8ar| ca|| |l 'a process, cors|sl|rg ol |derl|ly|rg
lre rosl prol|lao|e rar|els roW ard |r lulure; assess|rg lre preserl ard lre
lulure reeds ol lre cuslorers; sell|rg ous|ress deve|oprerl goa|s ard
ra||rg p|ars lo reel lrer; ard rarag|rg var|ous serv|ces ard prorol|rg
lrer lo acr|eve lre p|ars - a|| |r lre corlexl ol a crarg|rg erv|rorrerl |r
lre rar|el.
Why Bank Marketing?
Awareness among Customers
Voderr lecrro|ogy ras rade cuslorers aWare ol lre deve|oprerls |r lre
ecoror|c erv|rorrerl, Wr|cr |rc|udes lre l|rarc|a| sysler. F|rarc|a| reeds
ol lre cuslorers rave groWr ru|l|lo|d |rlo var|ous lorrs |||e qu|c| casr
access|o|||ly, rorey lrarsler, assel secur|ly, |rcreased relurr or surp|us
lurds, l|rarc|a| adv|ce, delerred payrerls elc. w|lr a W|de relWor| ol
orarcres, ever |r a d|ss|r||ar oar||rg scerar|o, cuslorers expecl lre oar|s
lo oller a rore ard oeller serv|ce lo ralcr lre|r derards ard lr|s ras
corpe||ed oar|s lo la|e up rar|el|rg |r r|grl earresl.
Quality as a Key Factor
w|lr lre oper|rg up ol lre ecorory, lasl crarge ras oeer exper|erced |r
every acl|v|ly, ard oar||rg ras oeer ro exerpl|or. 0ua||ly |s lre WalcrWord
|r lre corpel|l|ve Wor|d, Wr|cr |s rar|el dr|ver ard oar|s rave rad lo lace
up lo lr|s ererg|rg scerar|o. lr lacl, |l ray rol oe oul ol p|ace lo re|lerale
lral qua||ly W||| |r lulure oe lre so|e delerr|rarl ol successlu| oar||rg
verlures ard rar|el|rg ras lo locus or lr|s rosl cruc|a| reed ol lre rour.
Growing Competition
lrcreased corp|el|or |s oe|rg laced oy lre lrd|ar oar||rg |rduslry lror
W|lr|r lre sysler W|lr olrer agerc|es oolr, |oca| ard lore|gr, oller|rg va|ue
added serv|ces. Corpel|l|or |s ro rore corl|red lo resource roo|||zal|or
oul a|so lo |erd|rg ard olrer areas ol oar||rg acl|v|ly. %re lore|gr
correrc|a| oar| W|lr lre|r super|or lecrro|ogy, speed |r operal|ors ard
|rag|ral|ve pos|l|or|rg ol lre|r serv|ces ras a|so prov|ded lre recessary
|rpelus lo lre lrd|ar oar|s lo |rrovale ard corp|ele |r lre rar|el p|ace.
Technological Advances
3
%ecrro|og|ca| |rroval|or ras resu|led |r l|rarc|a| producl deve|oprerl
espec|a||y |r lre |rlerral|ora| ard |rveslrerl oar||rg areas. %re Weslerr
exper|erce ras derorslraled lral lecrro|ogy ras rol or|y rade execul|or ol
Wor| lasler oul ras a|so resu|led |r grealer ava||ao|||ly ol rarpoWer lor cuslorer
Contact.
Marketing Approach in Banks.
w|lr lre reed lor rar|el|rg |r oar|s rav|rg evo|ved oul ol lre crarg|rg erv|rorrerl ard corslarl
|rlerp|ay ol var|ous |rlerdeperderl laclors, lre |rporlarce ol a sysleral|c approacr lo rar|el|rg carrol
oe overslressed.
%re app||cal|or ol a rar|el|rg approacr |r oar|s W||| lrerelore |rvo|ve:
a. lderl|ly|rg cuslorers' l|rarc|a| reeds ard Warls;
o. 0eve|op|rg appropr|ale oar||rg serv|ces lo reel lrese reeds;
c. Pr|c|rg lor lre serv|ces so deve|oped;
d. 3ell|rg up su|lao|e oulse||s / oar|s orarcres;
e. Adverl|s|rg lo prorole lre serv|ces lo lre ex|sl|rg as We|| as prospecl|ve
customers.
Features oI Bank Marketing.
Banking product cannot be seen or touched like manuIactured
products (intangibility)
In marketing banking products, the product and the seller are in
separable; they together deIine the banking product (inseparability)
Banking products are products and delivered at the same time; they
cannot be stored and inspected beIore delivering` (perishability)
Standardization oI banking product is diIIicult (variability)
4
Conclusion
ll |s suor|lled lral lre oar||rg sysler |s or lre lrresro|d ol a rorerlous
era ol crarge ard corl|ru|ly |r groWlr ard deve|oprerl, ol |rd|v|dua|
cuslorer reeds ard corporale pracl|ces, lecrro|ogy ard corpel|l|ors. %re
ro|e ol rar|el|rg |r lre oar||rg |rduslry corl|rues lo crarge. For rary
years lre pr|rary locus ol oar| rar|el|rg Was puo||c relurrs. %rer lre
locus sr|lled lo adverl|s|rg ard sa|es prorol|or. %ral Was lo||oWed oy a
locus or lre deve|oprerl ol a sa|es cu|lure. NoW lre locus |s or lre
|rd|v|dua| cuslorer reel|rg ard ever arl|c|pal|rg r|s or reeds ard
deve|op|rg lrusl|rg, |org-lerr re|al|orsr|ps oy de||ver|rg r|gr qua||ly
persora||zed serv|ce. Var|el|rg oolr as a pr||osopry ard ar acl|v|ly; |s
expecled lo corlr|oule |rrerse|y lo lre rea||zal|or ol goa|s oolr |rred|ale
ard lulure. A|| lrougr a|| lre e|ererls ol lre rar|el|rg corcepl - cuslorer
sal|slacl|or, prol|l |rlegraled lrareWor| ard soc|a| respors|o|||ly rusl
rece|ve lre grealesl erpras|s |r lre years a read. %rey rusl oe gu|ded oy
lre d|clur ol Varalra 0ardr|.
'A cuslorer |s lre rosl |rporlarl v|s|lor |r our pror|ses. le |s rosl
deperderl or us. we are deperd|rg or r|r. le |s rol ar |rlerrupl|or or our
Wor|. le |s lre purpose ol |l. le |s rol ar ouls|der or our ous|ress. le |s
parl ol |l. we are rol do|rg r|r a lavour oy serv|rg r|r. le |s do|rg as a
lavour oy g|v|rg as ar opporlur|ly.