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CONTENTS Pg No
Introduction 2
FINANCIAL SERVICE 3
Needs of Financial Services 5
Features of Financial Services 6
Promotion 7
Bank marketing and the marketing concept 8
Developing a Marketing Strategy 9
Marketing - Promotion Strategy 12
Objectives of promotional strategy 22
External factors influencing the choice of promotion strategy 24
Merchant bank financial services and the need for marketing 27
Marketing Techniques in Banking 34
Challenges of Bank marketing 37
Future Opportunities 38
Conclusion 39
ICICI Bank 40
BIBILOGRAPHY 51

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Introduction
In an era of such rapid change, the environment in which financial services providers operate has
forced many firms to develop a much more proactive approach to marketing and promotion. Within
this report, Mintel identifies and examines the key issues confronting those involved in promoting
financial services. Furthermore, in recognizing that consumers have disparate financial requirements -
often based upon age, life stage, wealth, financial education and risk profile. Report examines
consumer behaviour when purchasing financial products and services. Such an understanding is
critical when developing both effective and targeted promotional strategies.
In recent years, traditional financial services providers have come under increasing pressure from the
wider business environment. Political, economic, social and technological changes have both
facilitated and forced change within the financial services industry. While, by definition, such factors
will largely be out of the control of the businesses themselves, future success or failure will depend
largely upon how well the management of financial services providers are able to anticipate and react
to such influences.
People from low-income groups live in high-risk and unpredictable environment, making access to
financial services vital for their sustenance. Dealing with life cycle events, emergencies and planning
for future are some aspects in which financial intervention can help. A large part of this financially
under-served segment resides in rural India. Integration of rural India into economic mainstream will
boost rural household incomes and have a multiplier effect on the demand for goods and services
across the economy while promoting financial inclusion.
However, considering the sheer size of the population and the geographic spread, neither the existing
bank branch based infrastructure nor the standard financial products are optimal to meet the financial
needs of the rural populace. Seasonality in income, coupled with dependence on weather, necessitates
creation of financial products that mitigate such risks. At the same time, traceable credit histories need
to be built that will help in designing products that meet needs such as housing, health, education,
child care etc. Further, varying financial needs of different customer segments viz. manual laborers,
farmers, traders, and rural entrepreneurs calls for customized financial products.

An analysis of current promotional strategies and particular emphasis is placed upon market
penetration and defensive marketing activity. Looking beyond the traditional marketing mix, this

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report also investigates how promotional strategy has evolved in recent years. We analyses what
impact developments such as Internet technologies are having on traditional markets and how
marketing and promotion has had to adapt to meet these new challenges. We also examine how
providers are maximizing the use of data-mining tools to develop more accurate promotional
strategies.

FINANCIAL SERVICE
Meaning:
Financial services are the economic services provided by the finance industry, which encompasses a
broad range of organizations that manage money, including credit unions, banks, credit card
companies, insurance companies, accountancy companies, consumer finance companies, stock
brokerages, investment funds and some government sponsored enterprises.
Definition:
Services and products provided to consumers and businesses by financial institutions such as banks,
insurance companies, brokerage firms, consumer finance companies, and investment companies all of
which comprise the financial services industry.
What Does a Financial Services Company Do?
A financial services company is a business or company which manages, invests, exchanges, or holds
money on behalf of clients. Many types of companies can be considered to be in financial services,
including banks, insurance companies, and asset management firms, among others. As money and
finance become ever more complex, there are an increasing number of activities and enterprises a
financial services company can be engaged in.
The largest business in the world, in terms of the amount of money that changes hands, is insurance. It
is also one of the oldest businesses. Insurance is considered a financial service because it protects
against the loss of money or property, and because insurance companies themselves often are involved
very heavily in investment.


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The premiums collected by an insurance company are statistically not likely to have to be completely
repaid. After a while, an insurance company accumulates more money from premiums than it has had
to pay out in claims, and this extra cash is referred to as float. It is not uncommon for an insurance
company to invest its float in order to earn a return, and thus, in a way, insure themselves.

Banks are another very common type of financial services company. Banks provide many services and
products that all of us have a degree of familiarity with, such as charge accounts, checking, electronic
funds transfers, and loans. Many other services are included within the sphere of traditional or
commercial banking. Investment banks may provide many of these same services, but also manage
the assets of their clients in large investment funds.
Foreign exchange is a type of financial service that is often transacted on a small scale, often by small
businesses which operate out of airports or heavily traveled port cities. Many commercial banks offer
foreign exchange services as well. These consist mainly of trading one currency for another at its
market value, minus a commission. Large-scale foreign exchange encompasses the arena in which
banks buy and sell substantial amounts of foreign currencies, and it is sometimes engaged in by large
investment funds and even some individual traders.

No single financial services company has a very large market share, due to the sheer number of these
types of companies in existence. For a financial services company to have a two or three-percent
market share is very significant, because most have much less. Indeed, because of the endless niches
that this type of company can operate in, market share is not fought for as much as in other industries.







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Needs of Financial Services
There is a set of basic needs that usually a financial consumer may have
Cash accessibility: Customers need to have frequent access to cash and look to various money
transmission tools that cater to these needs such as ATMs, credit cards and cheques as well as
telephone banking which enables quick and easy movement of funds

Asset Security: Consumers need physical security of assets and one of the most basic
functions of banks is that of safekeeping. Consumers also need to protect one's assets from
depreciation by earning a return on their money.


Money transfer: This refers to the need to be able to move money around. Technological
developments have made this possible and also have reduced reliance on cash.

Deferred Payment: 'This relates to the need for delaying payment of goods and services at a
reasonable cost. The range of credit cards, loans and mortgages cater to this need.

Financial Advice: 4s financial products increase in number and complexity, consumers have a
greater need for information and advice in order to makeappropriate purchase decisions
Financial needs or objectives form a hierarchy, which evolve over time.
Hierarchy of Financial Needs




Promotion (marketing)
Features of Financial Services

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Customer Oriented: Like any other service industry financial service industry is also a customer
oriented one. That customer is the king and his requirement must be satisfied in full should be
the basic tenant of any financial service industry

Intangibility: Financial services are intangible and therefore, they cannot be standardized reproduced
in the same form. Hence, there is a need to have a track record of integrity, reputation, good corporate
image and timely delivery of services.

Simultaneous Performance: Yet another feature is that both production and supply of financial
service have to be performed Simultaneous. Therefore, both suppliers of services and consumers
should have good rapport, clear cut perception and effective communication.

Dominance of human element: Financial Service is dominated by human element and thus, they are
people intensive. It calls for competent and skilled personnel to market the quality financial products.
But quality cannot be homogenized since it varies with time, place and customer-to-customer

Perishability: Financial Service is immediately consumed and hence inventories cannot be created.
There is a greater need for balancing demand and supply properly. In other words, marketing and
operations should be closely interlinked




Promotion:

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Promotion is one of the market mix elements or features, and a term used frequently in marketing. The
specification of five promotional mix or promotional plan. These elements are personal selling,
advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much
attention to pay to each of the five subcategories, and how much money to budget for each. A
promotional plan can have a wide range of objectives, including: sales increases, new product
acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate
image. Fundamentally, however there are three basic objectives of promotion.
These are:
To present information to consumers as well as others.
To increase demand.
To differentiate a product.

Definition of 'Promotion'
The publicizing of a product, organization, or venture so as to increase sales or public
awareness.

There are different ways to promote a product in different areas of media. Promoters use internet
advertisement, special events, endorsements, and newspapers to advertise their product. Many times
with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to
increase the sales of a given product.
Promotional activities to push a brand enabling social media channels to spread content making
something viral such as the advertising by Coke ,using the release of a new bond film creating a huge
amount of attention which then gets promoted across all social channels by people spreading the
information due to excitement.
Promotion can be done by different Media's, namely print media which includes Newspaper and
magazines, Electronic media which includes radio and television, Digital media which includes
internet, social networking and social media sites and lastly outdoor media which includes banner ads,
OOH (out of home).

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BANK MARKETING AND THE MARKETING CONCEPT
Marketing according to Kotler (1998) is a social and managerial process by which individual and
group obtain what they need and want through creating, offering and exchanging products of value
with others. This definition of marketing rests on the following core concepts; needs, wants and
demands; products or goods, services and ideas, value, cost and sales faction, exchange and
transaction, relationships and network, markets and marketers and prospects.
Marketing may also be defined as a management process which identifies, anticipates and satisfies
consumer requirement profitably. The concept places the customer in the forefront of the corporate
thinking while the techniques permit the concept to be successfully, economically and profitably
implemented.








Developing a Marketing Strategy
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market
needs and reach marketing objectives. Plans and objectives are generally tested for measurable results.
Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing

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specific actions to be accomplished in the current year. Time horizons covered by the marketing plan
vary by company, by industry, and by nation, however, time horizons are becoming shorter as the
speed of change in the environment increases. Marketing strategies are dynamic and interactive. They
are partially planned and partially unplanned. See strategy dynamics. Marketing strategy needs to take
a long term view, and tools such as customer lifetime value models can be very powerful in helping to
simulate the effects of strategy on acquisition, revenue per customer and churn rate.
Marketing strategy involves careful and precise scanning of the internal and external environments.
Internal environmental factors include the marketing mix and marketing mix modeling, plus
performance analysis and strategic constraints. External environmental factors include customer
analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the
technological, economic, cultural or political/legal environment likely to impact success. A key
component of marketing strategy is often to keep marketing in line with a company's overarching
mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain these
goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to
monitor progress and a set of contingencies if problems arise in the implementation of the plan.
Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to
allocate across the marketing mix to achieve these strategic goals. Moreover, such models can help
allocate spend across a portfolio of brands and manage brands to create value.



STEPS IN DEVELOPING A MARKETING STRATEGY
Define the products or services that your company offers, as well
as their intentions. Determine how they are beneficial to your
customer base. Once you get a full understanding of what you are

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trying to sell, you can better know how to market it to the outside
world.

Establish a marketing plan of action for positioning your product or
service in the marketplace. Ask yourself where it fits in, and even if
there are other similar products available within your market range,
make sure yours has its own niche.



Establish a marketing plan of action for positioning your product or
service in the marketplace. Ask yourself where it fits in, and even if there
are other similar products available within your market range, make sure
yours has its own niche.

Study your competition to determine the various options available
for your target customers to choose from. Compare and contrast their
product or service with yours and evaluate their positive and
negative points. Doing so will guide you more effectively as you
establish your own advertising strategy.


Find out what sets your product or service apart from the
competition. Ask yourself what is unique about what you are
offering and then put together a sales proposition that you can
implement.

Determine the various marketing methods that you can
implement to best promote your particular product or service.
There are many marketing and options available, such as direct mail
advertising, Internet marketing, and promotional events. The

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methods and extent of your marketing plan would obviously be
dependent on your budget.

Be prepared to modify your marketing strategy on a regular basis. Markets and customer tastes
change all the time, so be ready to evaluate your approach and change it to meet those customer
climate changes. If you neglect to modify according to the economy, and you choose to remain
stagnant in your approach, your product will most likely be left behind the competition.









Marketing - Promotion Strategy

Promotion is the method you use to spread the word about your product or service to customers,
stakeholders and the broader public.


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Once youve identified your target market, youll have a good idea of the best way to reach them, but
most businesses use a mix of advertising, personal selling, referrals, sales promotion and public
relations to promote their products or services.

1. Advertising
What is advertising?
Advertising is a form of communication designed to persuade potential customers to choose your
product or service over that of a competitor.
Successful advertising involves making your products or services positively known by that section of
the public most likely to purchase them.

It should be a planned, consistent activity that keeps the name of your business and the benefits of
your products or services uppermost in the mind of the consumer.
Why advertise?
The objective of advertising is to increase your profit by increasing your sales. Advertising aims to:
Advertising
Selling
Public
Relations

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Make your business and product name familiar to the public
Create goodwill and build a favorable image
Educate and inform the public
Offer specific products or services
Attract customers to find out more about your product or service

The rules of advertising
There are four rules to consider when planning any advertising activity ie: before you prepare and
book any form of advertising.
Aim - What is the primary purpose of the advertisement? Is it to inform, sell, produce listings or
improve the image of your business?

Target - Who is the target? From which sector of the public are you trying to achieve a response? For
example is it male, female, adult, teenager, child, mother, father etc.

Media Bearing the aim and target in mind, which of the media available to you is the most suitable
ie: TV, radio, press or Internet?

Competitors What are your competitors doing? Which media channel do they use? Are they
successful? Can you improve on their approach and beat them in competition?

Developing effective advertising
Good advertising generally elicits the following four responses:

Attention It catches the eye or ear and stands out amid the clutter of competing advertisements.

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Interest It arouses interest and delivers sufficient impact in the message or offering.

Desire It creates a desire to learn more or crave ownership.

Action It spurs an action which leads to achievement of the ads original objective ie: it prompts
potential customers to purchase or use your product or service.

Making sure your advertisement is legal
Section 52 of the Trade Practices Act (Cth) 1974 prohibits misleading or deceptive conduct.

You must consider the advertisement as a whole and the ordinary meaning of the words used. You
must determine if the people to whom the advertisement is directed are likely to be misled or deceived
by its content.

You can use humour, cartoons and slogans to make your ad stand out, but be sure theyre not likely to
mislead or deceive your audience. The Australian Competition and Consumer Commission (ACCC)
provides advertising guidelines in information circulars that are available from the local office of the
ACCC, or from www.accc.gov.au.

Commonly used media
There are many media options open to advertisers. Which media you use will depend on who you are
trying to reach, what you want to say and your budget. Often a combination of media (the media mix)
can be used to good effect. Remember to keep your branding and message consistent across all media.
This includes use of colours, logos, design elements and fonts.

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Stationery
Stationery, which includes letterheads, envelopes and business cards, is a means by which your
business image or name identification is projected. Good quality stationery, used with care and
attention and with a high standard of presentation, is an everyday means of presenting your business
image.

Window display or office front
The external presentation of your business office or shop is one of the principal ways of establishing
your business image. An attractive, well maintained exterior with clear, bold sign writing is an
essential start. Windows should be bright, attractively presented, scrupulously clean and well lit at
night. The display should be arranged neatly and aimed at projecting an attractive company image and
providing a reason to buy your products or services. Above all it should have sufficient impact to
attract attention.
Press advertising
This is a commonly used form of general advertising and includes advertising in all press such as
newspapers, magazines and journals. Press advertising is suitable for image building, information
dissemination and sales campaigns. It is also a very affordable option for small businesses.


Radio
Radio is considered by many advertisers as an ideal medium due to its ability to reach specific target
groups e.g. teenagers, racing followers or grocery buyers. Radio advertising covers spot adverts
(usually 15 or 30 second), promotions or talkback/DJ discussions. Most radio stations offer packages
which include production and extension of your radio campaign through their websites.
Television

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Television is a powerful advertising medium because it creates impact through sight, sound and
movement however the cost of producing the advertisement and procuring sufficient air time to allow
the campaign to work often makes it prohibitive for small business.
Direct mail
This is a broad category covering direct communication with the consumer through email, post or fax.
It can include newsletters, catalogues and letters. If you plan to use email, be sure to comply with
national anti-SPAM legislation which makes it illegal to send unsolicited commercial electronic
messages.
Outdoor
This is any type of advertising which is done outdoors, including static advertising such as billboards,
backs of street benches and bus shelters or mobile advertising displayed on buses, trains, taxis or
towed signage.
Ambient
Refers to any form of advertising that occurs in a non-standard medium outside the home, and usually
where your consumers are likely to be. Its limited only by your imagination and includes things like
advertising on the back of shopping receipts or toilet doors at the cinema, placing branded coasters at
the local pub, projecting onto buildings, advertising inside lifts or distributing branded cups.
Cinema
You can purchase cinema advertising by individual cinemas or screens for a set amount of screenings
or runs. Most providers offer packages which include production and screening of your
advertisement
Point of Sale
Advertising at the point where the consumer makes a purchase decision eg: floor stickers, in-store
digital advertising, shopping trolley signage, shelf or counter posters or playing interviews about your
product in store.
Online

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The options for online advertising continue to grow rapidly. They include advertising on your website,
advertising on other websites, creating links to your website from other websites, publishing blogs,
offering online product games, social networks and forums.

2. Selling
What is selling?
Put simply, selling is the exchange of goods or services for an agreed sum of money.
Depending on the circumstances, a sales transaction can include one, some or all of the following
stages.
Prospecting and qualifying identifying qualified prospects ie: those that are likely to want
or need your product or service and can afford to pay for it.
Pre-approach undertaking research about prospects to assist in the actual selling process.
Approach making actual contact with the prospect in person, by phone or in writing.
Presentation and demonstration- presenting and demonstrating the features and benefits of
your product or service in order to convince the prospect that their want or need can be
satisfied.
Handling objections - demonstrating the product or service value to overcome real or
perceived objections or misunderstandings that are impeding the purchase decision.
Closing bringing the selling process to a successful conclusion by either asking for the order
or responding to a positive decision from the prospect.
Follow-up proactive or reactive contact with the purchaser to establish their satisfaction level
and to address any problems that may exist.

In planning the selling element of your marketing strategy you will need to consider the following:
The size and structure of your sales team
Recruiting, training, motivating and evaluating individuals and the team as a whole
The remuneration structure

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The location/territory to be serviced
Management and communication systems
Selling is a particularly important element if you are marketing services because the purchaser of a
professional service is in fact buying the capabilities of the seller. So he or she would be closely
evaluating the behaviour and characteristics of your sales person, your business, its reputation,
facilities and appearance.

3. Sales Promotion
What is sales promotion?
Sales promotion relates to short term incentives or activities that encourage the purchase or sale of a
product or service. Sales promotions initiatives are often referred to as below the line activities.
What are the major sales promotion activities?
Sales promotion activities can be targeted toward final buyers (consumer promotions), business
customers (business promotions), retailers and wholesalers (trade promotions) and members of the
sales force (sales force promotions). Here are some typical sales promotion activities:

Consumer promotions
Point of purchase display material
In-store demonstrations, samplings and celebrity appearances
Competitions, coupons, sweepstakes and games
On-pack offers, multi-packs and bonuses
Loyalty reward programs
Business promotions
Seminars and workshops
Conference presentations
Trade show displays
Telemarketing and direct mail campaigns

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Newsletters
Event sponsorship
Capability documents
Trade promotions
Reward incentives linked to purchases or sales
Reseller staff incentives
Competitions
Corporate entertainment
Bonus stock
Sales Force Promotions
Commissions
Sales competitions with prizes or awards
4. Public Relations
What is public relations?
The Public Relations Institute of Australia (PRIA) defines Public Relations (PR) as: The deliberate,
planned and sustained effort to establish and maintain mutual understanding between an organisation
(or individual) and its (or their) publics.

Put more simply, public relations is about building good relations with the stakeholders (public) of
your business by obtaining favorable publicity, building a good corporate image and handling or
heading off unfavorable rumors, stories and events.

By building good relationships with your stakeholders, particularly customers, you can generate
positive word of mouth and referrals from satisfied customers.

What are the main public relations tools?
Typical PR tools include:

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News creation and distribution (media releases)
Special events such as news conferences, grand openings and product launches
Speeches and presentations
Educational programs
Annual reports, brochures, newsletters, magazines and AV presentations
Community activities and sponsorships

What are the key steps in implementing public relations?
Implementing effective public relations activities requires careful planning. The three major steps are
outlined below

Setting the objectives what is it you want to achieve and who do you want to reach? Is it to create
awareness of a new product or service to your existing clients, to overcome community
misconceptions about your business or to create a positive impression with your bank manager?

Deciding on the message and the vehicle what is the major thing you want to communicate and
what public relations tools will you use to get the message to its target?

Evaluating the results did you achieve the desired result and did it lead to a positive outcome?

Many small businesses do not devote enough attention to public relations in their promotional mix but
done properly, it can be a powerful and cost effective business development and marketing tool.
5. Who is a stakeholder?
Stakeholders are the various groups in a society which can influence or pressure your businesss
decision making and have an impact on its marketing performance. These groups include:

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Clients/customers
Staff
Shareholders
Strategic partners
Media
Government
Local community
Financial institutions
Community groups
Operationally, stakeholders really refer to those groups that your business is or should be,
communicating with.









OBJECTIVES OF PROMOTIONAL STRATEGY

Promotional strategy objectives vary among organizations. Some use promotion to expand their
markets, others to hold their current positions, still others to present a corporate viewpoint on a public
issue. Promotional strategies can also be used to reach selected markets. Most sources identify the
specific promotional objectives or goals of providing information, differentiating the product,

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increasing sales, stabilizing sales, and accentuating the product's value. Objectives of Promotional
Strategy are:-
Providing Information: In the early days of promotional campaigns, when there was often a
short supply of many items, most advertisements were designed to inform the public of a
product's availability. Today, a major portion of advertising in the United States is still
informational. Fashion retailers advertise to keep consumers abreast of current styles.
Promotional campaigns designed to inform are often aimed at specific market segments.

Differentiating the Product: Marketers often develop a promotional strategy to differentiate
their goods or services from those of competitors. To accomplish this, they attempt to occupy a
"position" in the market that appeals to their target customers. Promotions that apply the
concept of positioning communicate to consumers meaningful distinctions about the attributes,
price, quality, or usage of a good or service. Positioning is often used for goods or services that
are not leaders in their field.

Increasing Sales: Increasing sales volume is the most common objective of a promotional
strategy. Some strategies concentrate on primary demand, others on selective demand.
Sometimes specific audiences are targeted.

Stabilizing Sales: Sales stabilization is another goal of promotional strategy. Sales contests are
often held during slack periods. Such contests offer prizes (such as vacation trips, color
televisions, and scholarships) to sales personnel who meet certain goals. Sales promotion
materials calendars, pens, and the like are sometimes distributed to Stimulate sales during off-
periods. Advertising is also often used to stabilize sales.

Personal Selling: For many companies, personal selling a promotional presentation made on a
person-to-person basis to a potential buyer is the key to marketing effectiveness. The
promotional strategy of Merrill Lynch, a financial services firm, focuses on its 12,000-person
sales force. Selling was the original method of promotion. Today, selling employs over 6
million Americans.


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New Offerings: Introducing new products or services may be key to your business. To meet
this objective, you need to find ways to get your message in front of prospective buyers. Your
strategy may include educating your audience, such as by using the press to help people
understand the value and benefits of a new item. Discounts or coupons may also be part of the
strategy to encourage people to try the new offering.

Market Expansion: Some companies set an objective of expanding their markets to support
goals for growing the company. Your company might want to approach a secondary market or
expand its reach to more of your primary audience. Some companies plan to open new stores
or expand their Internet presence as part of a growth strategy.

Target Specific Markets: Selling to the people most likely to buy your product or service
makes an objective of targeting specific markets important in a promotional strategy. Once you
create the objective, your plan needs to identify the traits and demographics of potential
customers. You also need to develop a plan that clearly shows what tools youll use to
approach your audience and convince them to buy.







EXTERNAL FACTORS INFLUENCING THE CHOICE OF
PROMOTION STRATEGY




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The Product and Industry
The product and industry influences include four factors; type of product, product uniqueness,
technology orientation of the industry and cultural specificity of the product.

Type of Product
Services are intangible products which often cannot be separated from the person performing or
selling them.The value of services is harder to measure, its performances are harder to observe and to
possess, compared to manufactured goods. According to Bossone (2000) banks are intermediaries
between savers and users of capital. They supply transaction services and provide liquidity to both
consumer and industrial markets (ibid).Banks need to offer a wide range of products and services to
meet a variety of financial and related needs from different customers in different areas. The general
types of products offered by a bank can be divided into five categories:
1. Cash accessibility (for instance telephone banking)
2. Asset security (for instance safety of money deposits)
3. Money transfer (for instance payment service)
4. Deferred payments (for instance loans)
5. Financial advice (for instance advice on investments, taxation or wills)


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Product Uniqueness
Cavusgil et define the product uniqueness as the degree to which the product is made or designed to
satisfy unique needs of the customers. There is constant pressure within the competitive environment
of banking to innovate and develop new ways to improve customer service. Long-term Person-to-
person relationships between a financial institution, its distributors and its Customers, are seen as an
important factor for a bank to achieve a competitive advantage However since banks offer similar
products, it is very hard to stand out. A banks services are seldom unique and they are easy for
competitors to copy. Banking services tend to meet general needs rather than specific, and since there
are no particular benefits distinguishing different banks from each other, promotion of financial
services is essential. A bank must strive to attain a good overall image and to attract customers with
the right message.

Technology Orientation of the Industry
According to Cavusgil et al. (1993) the technology orientation refers to the technology intensity of the
industry. Technology has increasingly been applied in the delivery of services since the mid-eighties.
The adoption of technology into service industries has become important, and service providers are
being urged to invest in technology as a way of securing their future in the electronic age (ibid).New
products, new payment systems, new forms of distribution and delivery and improved management
information systems are increasing the demand of technology within the financial services sector
.Internet banking should be seen as part of general trend in which customer relationships as well as
new Web-technologies have become very important. The banking industry provides strong incentives
for banks and customers to use the Internet. Banks can reduce their costs considerably, and at the same
time meet potential demands of customers, such as convenience and cheap transactions.


Cultural Specificity of Product
According to Cavusgil et al cultural specificity of a product concerns if the product relates to the
extent to which the product mediates the needs of a specific culture. Consumer expectations can differ
tremendously and the issues of culture should therefore be thoroughly examined by the bank in wish
of conducting international business. An understanding of the customers is essential in order to create
effective promotion. The greater the distance between two cultures, the harder it is to communicate

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effectively. Culture can affect many, if not all, of an organizations strategic decisions. Banking
services tend to meet general needs rather than specific. He claims that a bank should analyze the
wants and needs of different market segments and design its marketing mix to fulfill them.
Consequently, market segmentation is essential. Consumer behavior towards financial services is very
much a function of social class.
Other External Factors Influencing the Choice of Promotion Strategy
Country of Origin Image
People in industrial countries tend to have a more favorable image of their own countrys product than
foreigners do. Knowledge of made-in images can be of great help when operating abroad. Each image
contains both positive and negative attitudes towards the product identifiable with the country of
origin. By being aware of these attitudes and promoting on the positive ones, a company can increase
the chance of success. The increasing internationalization of financial services eliminates
discrimination in treatment between foreign and domestic financial services providers, and removes
barriers to the cross border provision of financial services.
Economic Factors
The economic conditions prevailing in the host country are of major concern in influencing
international strategy. These economic factors can include inflation, exchange rates, income,
consumption potential, rate of unemployment and exchange control regulations. That is very
important, since modern taxation laws are crucial for foreign investors.
Advertising Infrastructure
The availability, performance and cost aspects of the advertising infrastructure can affect the
promotion decisions. The advertising infrastructure consists of the institutions and functions essential
to the advertising process, such as availability of media, the structure of media, availability of
technical equipment, local advertising experience and staff talent in the target country .Arnold et al.
(2001) claim that in the latter years, a great deal of money has been invested in advertising in the
Baltic States, and this in turn has increased availability of media and development of the advertising
structure.


27
MERCHANT BANK FINANCIAL SERVICES
AND THE NEED FOR MARKETING

The economic reforms in India have resulted into metamorphic changes in the economic framework. A
number of developments took place in the financial markets, which increased the importance of
financial intermediaries and also opened up the opportunity for growth and development of various
financial services. As a result, there has been a qualitative shift in the financial services being
provided. They have evolved into highly competitive, complex and sophisticated services due to their
continuous refinement. This in turn has led to the development of market-driven financial market. In
such a scenario, the need for specialist institutions like a merchant bank has been realized, which
provide specialist services effectively and efficiently. Since liberalization, merchant banks have
emerged as important intermediaries in the financial market. They provide specialist services to the
corporate clients. With the growing opportunities for the merchant banks a large number of players
have entered the market to exploit the opportunities both in the public as well as private sector. The
present study focuses on evaluating the marketing mix of the merchant banks both in public as well as
the private sector to analyses their marketing effectiveness.
Kotler and Armstrong (1987) defined a service as any activity, benefit or satisfaction that is offered for
sale. It is characterized by intangibility, inseparability, variability and perishability. Services are
intangible, they cannot be soon tested, felt, heard or smelt before they are bought. Service providers
can only improve their clients confidence by increasing the services tangibility.
Services are inseparable from their providers; they cannot be put on shelf and be bought by customers
whenever needed. The service provider must be present. Services are variable; their qualities depend
on who provided them, when and where they are provided. Finally, services cannot be stored and it
gives them perishability features. But the perishability of services cannot be a problem when demand
is steady thus is because it is easy to store the services in advance. When demand fluctuates, service
firms have problems (Stanton, 1981).
Merchant bank services can be divided into two broad categories; banking services and corporate
finance services. However, there is no hard and fast rule as to this division. Rather it is a question of
choice to suit bank management and objectives, which of these pigeon-holes a service falls into

28
depends on the bank and nature of serves provided for client and considerable inter-relationship of the
services.
Marketing of financial services is also essential because previous studies have shown that even in
advanced countries, such as Britain and the USA, there is a marked lack of awareness among both
customers(both corporate and personal).

MERCHANT BANKING STRATEGY

UNIQUE SERVICES

Approach driven by long-term strategic objectives of clients
To recommend shareholder value enhancement strategies or other financial strategies that
focus on the long-term success of our client companies.

Transaction Execution & Results: Private equity investments, acquisitions, sale processes,
mergers, recapitalizations and restructurings.

Senior-Level Attention & Experience: senior-level attention to all facets of a transaction,
from the initial evaluation phase to the final stage of executing our recommendations.

Independence & Confidentiality: avoiding underwrite securities, publish securities research,
or act as a lender. This enables us to avoid the potential conflicts that may arise from these
activities at larger, more diversified competitors.


Aligned Interests: To Commit our own capital and bring third-party capital to our
transactions, so we dont do well unless our clients do well. To us, thats simply common
sense.




29

M&A




M&A (Mergers & Acquisitions): Provide analysis of a Business Units (BU) operations,
management, products, customers and markets, and determination of the most effective
strategies and alternatives to assist a BU reach its objectives.
1. Structure and assist the realization of strategic partnership including Start-Ups
2. Structure and assist in purchase and sale of companies/business units
3. Structure and assist the spin-off of companies in part or in whole
4. Assist in the divestitures of companies/business in part or in whole
5. Assist in the recapitalizations of companies
6. Assist in the realization of co-investment and management/ leverage Buy-Outs
7. Develop strategies to maximize efficiency, profits and shareholders value
8. Supervise the implementation of shareholders rights
9. Supervise Charter amendments and other corporate governance provisions
10. Plan marketing strategies, Corporate Restructuring and Rehabilitation

Major investment banks across cities and town.
Knowledgeable advice to build reputation.
Free from product, research or client conflicts.

Customers Satisfaction: The need to establish the relationship between customer satisfaction
and banks marketing strategies as a tool for achieving improved service, profitability and
market share cannot be overemphasized. This is against the background that banks operations
have often been criticized for its inadequacies and poor performance particularly, in creating
awareness on its services, rendition of statement of account, poor attitude of staff towards
customers, long waiting hours in the banking hall and intricate lending policies.
Based on the data analyzed, the study revealed the following.

30
1. That banks adopt marketing strategies is their operations with attendant impacts on customers
satisfaction.
2. That the banks focus on marketing mix of products, price, place and promotions as tools for
marketing strategies.
3. Those among identifiable strategies in use are product/service innovations, advertisements to
create awareness, provision of comfortable hall for customers to transact business, provision of
staff who are cordial and understanding, and provision of computers to facilitate operations.









Strategies for the enhancement of Financial Institution (Commercial
Banks) 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.

31
Introduction of products comparable to Kisan Vikas Patra of post office and product with the
facility of tax rebate under section 88 of Income Tax Act will of much help in this regard.

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. Some
proven examples are Apna Ghar, Dhan Laxmi, Kuber, Flexi Deposit, Smart Kid, Sapney,
Vidya etc. The branding should be done in such a way that the brand name must attract the
attention of customers. It should be easy to 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 customers 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

32
educate the customers on all banking function, which will facilitate growth of banking on
healthy lines both qualitatively and quantitatively.

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 peoples 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.

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 behaviour, 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
Indian banks should sale the products and services through e-delivery channels.


33
Sale of Products and Services through Web-sites Internet is a network of network which
connects the world. Thus, banks 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.

Implication
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.
Conclusion
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.




Marketing Techniques in Banking
Through Advancement in technology
In simple terms application of marketing techniques in banking means a co- ordinated organizational
effort to reach the customer to fulfill his specific needs for getting his patronage by maximizing
customer satisfaction. In other words, the customer and his needs are central to marketing and the
specific needs are satisfied through utilization of people, products or services, price, promotion,

34
processes and branch location and distribution.. In the analysis of marketing techniques, facilities and
amenities inside the branch arid the processes are being looked into in detail.
In recent years Indian banks have urged their branches to adopt more and more marketing techniques
for achieving their business goals. The growing competition in the banking sector, both within India
and outside, has made it imperative for them to adopt various marketing strategies to gain competitive
edge over each other. Customer's needs have been made the focal point of attention by banks.
Branch Location and Distribution
The starting point for the marketing of financial services to the customer is his local branch. Because
the business of a bank is largely centralized through its individual branches, it is important to select the
most promising locations wherever it is possible.
In marketing, distribution is the means through which a seller makes his product available to the
buyer. The channels of distribution for bank's services should be thought of as any means used to
increase the availability and/or convenience of the services that help to maintain existing bank users or
increase their use among existing or new customers
However, banking today is not about where the branch is but where the customer is and banks are
resorting to the use of technology so that customers can access their accounts from remote locations
Technology
Advancement in technology have had a profound effect on the delivery of financial services in the last
decade, and the pace of change and level of impact is continually increasing. Technology was first
used in branches of banks as a means of reducing the cost of many routine processes, but now it
provides a cost effective and competitive solution to the delivery of products and communication with
customers.
Technology has enabled banks to target customers, provide customised products and services to match
their individual requirements. It has also enabled banks to strengthen relationships with its customers
as they now use the convenience offered by technology to stay in touch with their branch and their
accounts more often.
Computerisation

35
Public Sector barks have been doing Branch Automation since 1993. The historic agreement of
October 1993 with the staff unions has opened up the vistas of computerization in every functional
area of banking. Central .vigilance commission has also directed the banks to computerize at least 70
percent of their total business by January 1,2000, making it non-negotiable with the unions has cleared
the road for bank managements to take advantages of banking technology to improve the efficiency
and decision making process for customer value creation. Branch Mechanization is given top priority
in State Bank of Travancore. The Bank had 320 fully computerized branches and 76 partially
computerized branches as on 31'' March 2003. In order to harness technology for better advantage,
user- friendly back office automation software had been developed in-house and the package had been
implemented in 71 non-computerized branches. Total business captured through computers reached
80% as at the end of March 2003. 630 branches/offices of the Rank have been provi8ded with E-mail
connectivity, with scope for further expansion. E-mail is extensively used by NRIs and for the Bank's
inter branch departmental communication. Online banking (with value added facilities like online
requisition of cheque books, E-mail alert etc.,) and mobile banking products are made available in
computerized branches. Comprehensive Forex Trade Finance Software package is implemented in 47
"B" category forex intensive branches. Bank has a software development team that keeps on
modifying the software packages to suit the specific requirements
Automated Teller Machines
Banks are outdoing one another to attract retail clients with superior technology and much better
service levels. One way banks are doing this is by expanding their ATM networks. ATMs are one of
the latest variants of the 'place' marketing factor. They increase the convenience factor as well as
saving the valuable staff time.
Online
Distribution and reach are also critical for efficient functioning of banks. ,4 large and fast growing
section of urban and semi urban population in India has woken up to the convenience of electronic
channels and banks are offering facilities like Telebanking and Online banking
Telebanking
Face to face encounters are giving way to telephone encounters. Personal servxe is being replaced by
self-service, often through the medium of computers or easy to use machines. Web sites are beginning

36
to replace or supplement voice telephone contacts

May I Help You Counter
May I help you counter functions almost like a reception counter from where customers can get all the
information and guidance that is required, whether it be regarding deposits, loans and advances or
other services. The required stationary items like vouchers, pay-in-slips, brochures etc., are also made
available at this counter.
Single Window
In Single window system employees manning the counter shall handle all types of transactions as
desired by the management including payment and receipt of cash. This facilitates the customer to put
through the transactions at one counter instead of moving from one counter to another and thus save
time and the transactions are hassle free.






Challenges of Bank marketing
Technology Marketing by private sector banks and foreign banks is more effective than
public sector banks because these banks are IT oriented. Private sector banks and foreign banks
are attracting more customers by providing e-services. Thus, technology has become a
challenge before the public sector banks.

37

Untrained Staff Often it happens that when a prospective customer approaches the branch, the
employees seem to have very little knowledge about the scheme. This reflects an ugly picture
of our banks image. Banks are not losing one prospective customer but 10 more customers
who would be touch of this man. Attitude of the employees towards customers is also not very
well. Thus, it is a need of time to reorient the staff.

Rural Marketing This is a big challenge before the Indian banks to enhance rural marketing to
increase their customers. Banks should open their branches not only in the urban and semi-
urban areas but also in the rural areas.


Trust of Customers Marketing can be enhanced only by increasing the customers. Customers
can be increased or attracted only by winning the trust of the customers.

Customer Awareness Customer awareness is also a challenge before the banks. Bank can
market their products and services by giving the proper knowledge about the product to
customer or by awarding the customer about the products. Bank should literate the customers.

Future Opportunities
Future Opportunities One might say that the financial services sector is, in essence, in the business of
expanding economic opportunity: this is the core value proposition of its products and services to
clients. Large commercial financial institutions are increasingly engaging and experimenting with
ways of expanding that pool of clients to include lower-income individuals and entrepreneurs.

38

Engage in multi-pronged strategies for expanding economic opportunity.
While each of the four business strategies for expanding economic opportunity outlined here is
individually important, significant breakthrough seem to require combinations of these strategies.
Because financial services are both the core business of commercial financial institutions and a critical
ingredient in economic opportunity, firms primary focus should be to develop inclusive business
models that make those services widely accessible. But constraints in the system mean that inclusive
business models often require complementary strategies to be viable.

Be creative in financing your economic opportunity strategies
The systemic constraints that necessitate multi-pronged economic opportunity strategies mean that
financial viability, to say nothing of traditional commercial rates of return, must often be a longer-term
objective. As a result, we see a number of companies creatively assembling the funding for their
economic opportunity strategies from a mix of commercial, corporate p, and public or individual
donor sources.

Collaborate.
Collaboration is a key feature of nearly all the examples and recommendations in this report. allows
partners to focus on their comparative advantages to increase impact, share risk, and increase the
credibility of the efforts with other important stakeholders. It also allows them to develop new
capabilities and, by changing the context for their efforts, uncover and even create new strategic
opportunities.
CONCLUSION
Financial services marketing tends to fall on the shoulders of the personal financial planners or
advisors that help individuals with their personal financial situations. While marketing has some
general strategies that service providers can employ and all types of businesses can use, financial
service providers can cater or alter these strategies to reach their particular audience. Some of the best

39
tips for financial services marketing start with identifying who the customers truly are so that
strategies are employed that speak directly to the members of the overall group.
Personal selling is considered to be the most important promotional tool, as it aims to build
relationships between the customer and the bank. Relationships are crucial, since they make the
customer loyal to the brand and enable the bank to reach its long-term goals. It is also of great
importance to make a thorough segmentation of the customers in order to make the personal selling as
cost-efficient as possible.
Banks are careful in their use of sales promotion. However, special offerings and other forms of price
manipulation are used to some extent. Public relations are performed in order to create goodwill and to
spread information. This is done through participation in magazines as well as via sponsoring of social
projects. The aim of direct marketing is to inform as well as to promote. It is commonly used through
post circulars, but the use of Internet is also considered to be of importance.
From the discussion above, the following conclusions are drawn:
All promotion tools in the promotion mix are used to some extent for the promotion of banking
services
Personal selling is the most important promotion tool when promoting banking services.
Segmentation of customers is an essential part of the promotion for banking services.
A strong brand is crucial in order to attract customers.



ICICI BANK MARKETING TECHNIQUES

About ICICI Bank
ICICI Bank is an Indian multinational bank and financial services company
headquartered in Mumbai. Based on 2014 information, it is the second largest bank in
India by assets and by market capitalisation. It offers a wide range of banking products

40
and financial services to corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries in the areas of investment banking, life
and non-life insurance, venture capital and asset management. The Bank has a network
of 3,539 branches and 11,162 ATM's in India, and has a presence in 19 countries
ICICI Bank is one of the Big Four banks of India, along with State Bank of India,
Punjab National Bank and Bank of Baroda. The bank has subsidiaries in the United
Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative
offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. The company's UK subsidiary has established branches in Belgium and
Germany
Indias second largest bank
614 branches and extension counters
2200 ATMS
Biggest private sector bank in India
Most valuable bank in India in terms of market capitalization
Described by the competitors and industry expert in one word Aggressive
FIRSTS IN THE INDUSTRY
introduced concept of branding in the Indian banking industry
process, people and physical evidence brought to life by icici
product innovation
introduction of dsas and dsts
unleashed the power of the internet
first bank to focus on retail banking as a driver for growth
comprehensive data centre availability & data protection solutions
ICICI DIRECT

41
ICICI Direct.com is a truly online share-trading site. Which means that from the time
you punch in a buy or sell trade on their computer to the final settlement in their
account, everything happens completely online? The 3-in-1 e-invest account integrates
their brokerage, bank and one or more depository accounts to make sure that you can do
the otherwise cumbersome share trading from the comfort of their home or office, at
absolutely any time of the day or night.
BASIS FOR SEGMENTATION
Occupation Different products for different occupational segment identified
Income: Minimum balance serves as an income segment barrier
Geographical: Concentrated on Tier 1 & Tier 2 Cities trying to extend reach
Age: Different products like student account

DIFFERENTIATED MARKETING STRATEGY
Tailors its marketing campaigns to meet the needs of its target prospects
Creates differentiated product offering for different segment
Use of technology in tracking customer segment



MARKETING OF ICICI BANK
Marketing of services by ICICI bank
1. PRODUCT MIX
A) DEPOSITS:

42
Savings Account:
ICICI Bank offers a potheyr packed Savings Account with a host of convenient features and banking
channels to transact through, without the stress of waiting in queues.
Senior Citizen Services:
ICICI understands that a Savings Account needs to do more after one reaches the age of seniority.
They have an ideal Savings Bank Service for those who are 60 years and above

B) INVESTMENTS:
ICICI Bank Tax Saving Bonds
Government of India Bonds
Investment in Mutual Funds
Initial Public Offers by Corporates
Investment in "Pure Gold"
Foreign Exchange Services
Senior Citizens Savings Scheme, 2004
C) ANYWHERE BANKING:
ICICI Bank is the second largest bank in the country. It services a customer base of more than 5
million customer accounts through a multi-channel access network. This includes more than
500branches and extension counters, over 1800 ATMs, Call Centre and Internet Banking. Thus, one
can access the various services ICICI Bank has to offer at anytime, anywhere and from anyplace

D) LOANS:
ICICI Bank offers wide variety of Loans Products to suit the customers requirements. Coupled with
convenience of networked branches/ ATMs and facility of E-channels like Internet andMobile
Banking, ICICI Bank brings banking at their doorstep


43
Home Loans
Some of the key benefits for HOME LOAN are:
Guidance throughout the process
Home loan amounts suited to ytheir needs
Home Loan tenure up to 20 years
Simplified Documentation
Doorstep Service
Sanction approval without having selected a property.
Free Personal Accident Insurance
Insurance options for their home loan at attractive premium
Personal Loans
Key Benefits of ICICI Bank Personal Loan:
Loan up to 15 lacks
No security/guarantor required
Faster Processing
Minimum Documentation
Attractive Interest Rates
12-60 Months repayment options




Farm Equipment Loans
Preferred financier for almost all leading tractor manufacturers in the country. Financing farm
equipments in over 381 locations spread across the country. Fast processing of files with easy
documentation. Flexible repayment options in tandem with the farmer's seasonal liquidity. Monthly,
Quarterly and Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1
year to 6 years.

44

DEMAT SERVICES:
ICICI Bank Demat Services boasts of an ever-growing custome rbase of over 7 lacs account holders.
In their continuous endeavor to offer best of the class services to customers they offer the following
features:
E-Instructions:
Transfer securities 24 htheirs a day, 7 days a theyek through
Internet & Interactive Voice Response (IVR) at a lower cost.
Digitally Signed Statement
Corporate Benefit Tracking
Mobile Request
Mobile Alerts

G) MOBILE BANKING:
With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility
to all its Bank, Credit Card and Demat customers. ICICI Bank Mobile Banking enables you to bank
while being on the move. ICICI Bank Mobile Banking can be divided into two categories of facilities:
Alert facility: The ICICI Bank Mobile Banking Alert facility informs you promptly of the significant
transactions in ytheir accounts. It keeps you updated wherever you go


PRICING MIX
The pricing decisions or the decisions related to interest and fee or commission charged by banks are
found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned
with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA.
The pricing policy of a bank is considered important for raising the number of customers vis--vis the
accretion of deposits. Also the quality of service provided has direct relationship with the fees charged.
Thus while deciding the price mix customer services rank the top position. The banking organizations

45
are 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. Since both the strategies throw a vice- versa
impact, it is important that banks attempt to establish a correlation between two. It is essential that
both the buyers as the sellers have feeling of winning

PROMOTION MIX IN
ICICI BANK

The different components of promotion help bank professionals in promotion the banking business.
Advertising: Television, radio, movies, theatres. ICICI uses this component of the promotion mix
with the motto of informing, sensing and persuading the customers. The advertising professionals bear
the responsibility of making the appeals, slogans, messages more creative.
ICICIs Advertisements











46




Public Relation
Purpose -To deliver communication that is uniform in its message and yet customized for specific
target audiences
Media relations
Press conferences
Press Releases
1-1 interviews

Investor relations
Analyst relations
Government relations


Print media: Hoardings, newspaper, magazines. There are a number of devices to
advertise, such as broadcast media, telecast media and the print media
Publicity: road shows, campus visits, sandwich man, Sponsorship
Need to be seeneverywhere!!

47
Events at corporate campus
Promotional material at channel partner outlets
Billboards
Signboards
Kiosks in residential and commercial complexes
YOUNG STARS ACCOUNT
Promotion through tie-up with Cartoon Network, and in-series promotion through Tom & Jerry
A unique initiative to introduce banking to children
Internet banking and International debit card facility to ensure cash-free transactions For
children and parents and exciting deposits products








In-film promotions Baghban
The activity: In film placement with Archies and ICICI
The promotion: Extensive promotion of the merchandise through POS, contests, theatre promotions
etc. All creatives are the generic film images to maintain the communication thread.

48
POS (vinyls/ posters/ backlist) etc on display at over 80 retail outlets across the country. This
includes 14 Shoppers Stops, 5 Big Bazaars, 2 Crossroads, 4 Pantaloons and around 30 Stand
Alone stores.
Direct mailing: E-MAILS to 60 thousand FCC CUSTOMERS of Shoppers Stop WITH
IMAGES
Cross promotions: Gift vouchers with movie tickets, at Dandiya events etc across India
Theatre: Branding at key theatres
Sales promotion: Gifts, discount and commission, incentives, etc. ICICI also thinks in favor of the
promotional incentives both to the bankers as the customers. The banking organizations make
provisions for incentives.
Positioning
Hum hain na trust,credibility, total financial solution provider(brought about through its cross
selling effort)
Modernization process and physical evidence technology as the backbone and accelerator
Adapting international practices to the local context
Information system warehouse
Product development department continuously studies market and analyses competitive
landscape
Personal selling: Cross-sale (selling at competitors place), personalized Service. The personal selling
is found instrumental in promoting the banking business. It is just a process of communication in
which an individual exercise his/her personal potentials, tact, skill and ability to influence the impulse
buying of the customers. Since ICICI gets immediate feedback, the personal selling activities energies
the process of communication very effectively.

49
Telemarketing: ICICI one sterile Call center
Co-Branding Initiatives
Alliance with Amway India for launch of the international credit card. The card will enable
Amway distributors to purchase Amway products and earn and redeem reward points
Indian Railways Catering And Tourism Development Corporation, in conjunction with ICICI
Bank, announced the launch of mobile payments and ticketing system, offering IRCTC customers
to book railway tickets via SMS and make payments through their ICICI Bank accounts
FINDINGS
The banking industry in India is facing the challenges on deposit mobilization front, because of the
severe competition from various financial institutions and public corporations.
ICICI Bank today services a growing customer base of more than 5 million customer accounts and 5
million bondholders accounts through a multi-channel access network. This includes over 1485
branches and extension counters, 4816ATMs, call centres and Internet banking.
Bank renders personalized services and the present emphasis in marketing is customer
satisfaction. They believe in customer satisfaction in every possible way. They are focused on
quality of products and services rather than quantity of products and services
ICICI is Aimed at generating sales & Communicates product features and benefits. Mainly
through adversting media. Point of purchase promotion tools for different products to reach the
relevant customer segment
DATA and interpretation
ICICI Highly used Media

42%
36%
14%
8%
Media
Television
Newspaper
Internet
Radio

50








ICICI Advertisement in Brand Building
ICICI is Building through corporate advertising As many business now recognize corporate brands as
fundamental business assets so ICICI has begun reaching out to customers, prospects and the financial
community by advertising those brands.






BIBILOGRAPHY

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51
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http://www.slideshare.net/SHAHBAZ562/marketing-of-financial-services
http://www.educacion-virtual.org/cursos/files/Marketing-of-Financial-Services.pdf
http://www.smallbusiness.wa.gov.au/marketing-promotion-strategy/
http://www.pnbindia.in/En/ui/content.aspx?ID=154
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