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1. Introduction.
 Bank Marketing.
 Why Bank Marketing.
 Features of Bank Marketing.
 Services.
 Characteristics of Services.
 Difference between Product and Services.

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

3. Justification for Marketing the Banking Services.

 Satisfaction of Customer Needs.
 Bank Marketing in the Indian Perspective.

4. Articles.
 Summary
 Conclusion.

Shyamji Mehrotra.

A Marketing person without adequate marketing skills will destroy sales

instead of increasing it.Marketing of financial products need not only selling
skills, but adequate knowledge about banking world also. A good
salesperson require right soft skills like positive attitude, good
communication etc.

“Nothing happens in a company unless a product or services is sold,

Everything else is cost.”


The ongoing process of economic reforms has completely changed the

operational environment for the whole banking industry in the country.
Banks are now required to cope with stiff competition in business and also
the complex regulatory norms regarding capital adequacy and provisioning.
Banks are forced to adopt various marketing techniques and approaches.
Thus, marketing has become imperative for all banks including those in the
public sector.

Marketing in banks can be stated as a new phenomenon that is shaping well

over the past one decade. Public sector bank hardly considered marketing as
a tool for business. The competition, deregulation that followed the reforms
has changed the environment for banks, where marketing has occupied the
place in the business of banks. Today, marketing in the banking industry is
characterized by many innovations in products and services, use of advanced
technology in product design, up gradation of delivery system, advertising
and sales promotion activities, whether in public sector or private sector.
Banks now have a firm that marketing strategies alone can brighten the
future of banking business. Marketing in banks has become synonymous
with customer and banks are found engaged in several activities of
discovering, creating and satisfaction customer needs.

Indian banking is at cross roads today. With the deregulation and

liberalization process in full swing, the consequent policy changes
introduced in the Indian financial system in general and banking in particular
are effecting unprecedented changes in its functioning. With the emerging
changes did spring up new challenges of commercial viability, cost
effectiveness, effective marketing strategy, etc.Market oriented policies also
gave birth to new players like foreign and private sector banks and
subsidiaries offering varied high tech and cost effective Service. There was
an absolute shift from sellers into buyers’ market, establishing the
‘consumer’ as the key factor in the market. The dictum “as the bank exists
because of its customers, has become more pronounced and relevant in the
present context”. Thus, marketing constitutes the key strategy for banks to
retain good customers and also anticipate their future demands.

Bank marketing.
Deryk Weyer of Barclays Bank call it “a process, consisting of identifying
the most profitable markets now and in future; assessing the present and the
future needs of the customers; setting business development goals and
making plans to meet them; and managing various services and promoting
them to achieve the plans – all in the context of a changing environment in
the market”.

Why Bank Marketing?

Awareness among Customers
Modern technology has made customers aware of the developments in the
economic environment, which includes the financial system. Financial needs
of the customers have grown multifold into various forms like quick cash
accessibility, money transfer, asset security, increased return on surplus
funds, financial advice, deferred payments etc. With a wide network of
branches, even in a dissimilar banking scenario, customers expect the banks
to offer a more and better service to match their demands and this has
compelled banks to take up marketing in right earnest.
Quality as a Key Factor
With the opening up of the economy, fast change has been experienced in
every activity, and banking has been no exemption. Quality is the watchword
in the competitive world, which is market driven and banks have had to face
up to this emerging scenario. In fact, it may not be out of place to reiterate
that quality will in future be the sole determinant of successful banking
ventures and marketing has to focus on this most crucial need of the hour.
Growing Competition
Increased completion is being faced by the Indian banking industry from
within the system with other agencies both, local and foreign, offering value
added services. Competition is no more confined to resource mobilization
but also to lending and other areas of banking activity. The foreign
commercial bank with their superior technology, speed in operations and
imaginative positioning of their services has also provided the necessary
impetus to the Indian banks to innovate and complete in the market place.

Technological Advances

Technological innovation has resulted in financial product development
especially in the international and investment banking areas. The western
experience has demonstrated that technology has not only made execution of
work faster but has also resulted in greater availability of manpower for customer

Marketing Approach in Banks.

With the need for marketing in banks having evolved out of the changing
environment and constant interplay of various interdependent factors, the
importance of a systematic approach to marketing cannot be overstressed.
The application of a marketing approach in banks will therefore involve:
a. Identifying customers’ financial needs and wants;
b. Developing appropriate banking services to meet these needs;
c. Pricing for the services so developed;
d. Setting up suitable outsells / banks branches;
e. Advertising to promote the services to the existing as well as prospective

Features of Bank Marketing.

 Banking product cannot be seen or touched like manufactured
products (intangibility)
 In marketing banking products, the product and the seller are in
separable; they together define the banking product (inseparability)
 Banking products are products and delivered at the same time; they
cannot be stored and inspected before delivering’ (perishability)
 Standardization of banking product is difficult (variability)

It is submitted that the banking system is on the threshold of a momentous
era of change and continuity in growth and development, of individual
customer needs and corporate practices, technology and competitions. The
role of marketing in the banking industry continues to change. For many
years the primary focus of bank marketing was public returns. Then the
focus shifted to advertising and sales promotion. That was followed by a
focus on the development of a sales culture. Now the focus is on the
individual customer meeting and even anticipating his or needs and
developing trusting, long-term relationships by delivering high quality
personalized service. Marketing both as a philosophy and an activity; is
expected to contribute immensely to the realization of goals both immediate
and future. All though all the elements of the marketing concept – customer
satisfaction, profit integrated framework and social responsibility must
receive the greatest emphasis in the years a head. They must be guided by
the dictum of Mahatma Gandhi.
“A customer is the most important visitor in our promises. He is most
dependent on us. We are depending on him. He is not an interruption on our
work. He is the purpose of it. He is not an outsider on our business. He is
part of it. We are not doing him a favour by serving him. He is doing as a
favour by giving as an opportunity”.


1.What are the new products you would be launching?

 Some of the new products we are launching are: wave guide for
communication application; wave guide for satellite application;
miniature pneumatic cylinder barrels; and refrigeration and air
conditioning condenser tubes.

2. India is a huge country. How do you service the all India market?

 We have 14 Business Partners (agents) all over India. We invite all our
Business Partners once in a year to our plant to interact with
production and marketing people and brief them about development
taken place during the year.

3. What is the market size of DTH service in India?

 India has 13.09 million Direct to Home subscribers as of March 2009

according to link#1 which has TRAI as reference.

TRAI (The Telecommunications Regulatory Authority of India) press

release (Link#2) seems to be broken, it should give you the company
wise numbers else you can check the corporate site/press releases of
each provider to come up with a ball park figure.

4. What can you do that your competitors cannot?

 This is good to know because it speaks to the defensibility and value

of the company. Life is challenging for a company that has
undistinguished products and services. This doesn’t mean the
company will fail, but it has to be “special” in some way soon.

5. Who are your investors?

 Hopefully, there are one or two well-known venture capitalists.

However, a perfectly acceptable—and perhaps even better—answer is
that there are no investors other than the founders, and the plan is to

bootstrap the company as long as possible. These days revenue is the
best source of capital.

6. Who is on your board of directors?

 If there are outside investors, they are likely to be on the board. That’s
cool. But you should beware of boards that are only the founders and
their family and friends. You need at least one “adult” on board who
can be the hardass bull shiitak detector.

7. Assume that you have $0 for marketing, how would you market the

 Any bozo can market a product with a million dollars. What you want
is a team that can (a) make a great product that markets itself and (b)
catalyze people to believe in the product enough to market it for you.
If the answer you get is, “When we’re ready to ship, we’ll raise more
money to market it,” you should run for the door.

15. Promotion in Marketing means—

(A) passing an examination
(B) elevation from one grade to another
(C) selling the products through various means
(D) selling the product in specific areas
(E) None of these
Ans : (C)

21. Market Expansion means—

(A) hiring more staff
(B) firing more staff
(C) buying more products
(D) buying more companies
(E) None of these
Ans : (E)

23. Effective marketing helps in—
(A) developing new products
(B) creating a competitive environment
(C) building demand for products
(D) All of these
(E) None of these
Ans : (D)
26. Delivery Channel means—
(A) maternity wards
(B) handing over the products to the buyers
(C) places where products are made available to the buyers
(D) All of these
(E) None of these
Ans : (C)

29. Innovation mean—

(A) Product Designing
(B) New ideas
(C) Impulse
(D) Both (A) and (B)
(E) None of these
Ans : (D)
30. One of the following is a target group for the marketing of educational
(A) All the customers
(B) Students
(C) Only poor students
(D) Students having promising educational track record
(E) All of these
Ans : (B)
31. Service after sale is not the function of—
(A) Marketing staff
(B) Seller
(C) Director of the company
(D) Employees of the company
(E) All of the above are wrong

Ans : (A)

32. If done through………the rural marketing would be more effective.

(A) fairs
(B) village fairs
(C) door to door campaign
(D) All of these
(E) None of these
Ans : (B)

33. Market Survey means—

(A) Market Research
(B) Market Planning
(C) Marketing Strategies
(D) Market Monitering
(E) All of these
Ans : (A)
34. ………can be done through digital Banking?
(A) Mobile phone
(B) Internet
(C) Telephone
(D) All of these
(E) None of these
Ans: (A)

35. A good seller should have the following quality/qualities?

(A) Devotion to the work
(B) Submissive
(C) Sympathy
(D) All of these
(E) None of these
Ans: (D)
36. The rural marketing is not required because—
(A) rural people do not understand marketing
(B) its not practical from the cost point of view
(C) it is sheer wastage of time
(D) All are wrong

(E) All are correct
Ans : (D)
37. Planned-cost service means—
(A) Costly products
(B) Extra profit on the same cost
(C) Extra work by seller
(D) All of these
(E) None of these
Ans : (B)

39. The aim of successful marketing is—

(A) to increase the sale
(B) to increase the profit
(C) to increase the output of sellers
(D) All of these
(E) None of these
Ans : (D)