1.

PRODUCT MIX
1. DEPOSITS

• Savings Account
• Senior Citizen Services:
• Current account
• .Fixed Deposits
• Recurring Deposits

2. INVESTMENTS

3. ANYWHERE BANKING

4. LOAN

5. CARDS
a) Credit Card
b) Debit cum ATM Card
c) Travel Card

6. DEMAT SERVICES

7. MOBILE BANKING

8. NRI SERVICES

ONLINE MONEY TRANSFER facility available to NRIs worldwide through

www.money2India.com at the click of a button!
2. PROMOTIONAL MIX::

1.Advertising

Finalizing the budget:

Selecting a suitable vehicle:

Making possible creative:

Testing the effectiveness:

Instrumentality of branch managers:

2. Public relations:.
Telemarketing:

Word-Of- Mouth:

3. PRICE 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 banking organizations 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 well as the sellers have
feeling of winning.
4. THE PEOPLE
All people directly or indirectly involved in the consumption of banking services are an
important part of the extended marketing mix.

Knowledge Workers, Employees, Management and other Consumers often add significant value
to the total product or service offering.
It is the employees of a bank which represent the organisation to its customers.

5. THE PROCESS
Flow of activities: all the major activities of banks follow RBI guidelines. There has to be
adherence to certain rules and principles in the banking operations. The activities have been
segregated into various departments accordingly.
Standardization: banks have got standardized procedures got typical transactions. In fact not only
all the branches of a single-bank, but all the banks have some standardization in them. This is
because of the rules they are subject to. Besides this, each of the banks has its standard forms,
documentations etc. Standardization saves a lot of time behind individual transaction.
Customization: There are specialty counters at each branch to deal with customers of a particular
scheme. Besides this the customers can select their deposit period among the available
alternatives.
Number of stores: numbers of steps are usually specified and a specific pattern is followed to
minimize time taken.
Simplicity: in banks various functions are segregated. Separate counters exist with clear
indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not
mingle elsewhere. This makes procedures not only simple but consume less time. Besides
instruction boards in national boards in national and regional language help the customers
further.
Customer involvement: ATM does not involve any bank employees. Besides, during usual bank
transactions, there is definite customer involvement at some or the other place because of the
money matters and signature requires.

6. THE PHYSICAL EVIDENCE

Physical evidence is the material part of a service. There are many examples of physical
evidence, including some of the following:
• Internet/web pages
• Paperwork
• Brochures
• Furnishings
• Business cards
• The building itself (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, other tangibles, employee’s
dress code etc.
 7. Place mix

It is the location analysis for banks branches. Some of the factors affecting the location analysis
are :-
• The Trade Area
• Population Characteristics
• Commercial Structure
• Proximity to other convenient Outlets
• Real Estate Rates
• Proximity to Public Transportation
• Location of Competition
• Visibility
• Access
Introduction to banking sector

Executive Summary:

Nowadays, the service industry, especially banks, faces increasing competition. In such
environment, differentiation is necessary. The general purpose of this thesis is to understand how
a bank can achieve differentiation based on a marketing approach. Two research questions will
respectively examine the three additional P’s of the marketing mix (People, Presentation or
Physical Evidence and Process) and the Customer Relationship Management as possible
differentiators. To fulfill the purpose, we introduce an extended model of the CRM concept,
including the three additional P’s. After an analysis, it is concluded that the extended model of
the CRM concept is actually used as a differentiator. However, as the major Indian bank have a
similar strategy; it then appears really difficult to differentiate to a large extent.

Background

The importance of financial services is self-evident for the well being of economies as well as
societies. Major providers of such services are banks, next to mortgage credit companies and
insurance companies. Banks, in this context, are commercial retail banks, offering a wide range
of financial services and even insurance. Main functions of banks are, according to Encyclopedia
Britannica (2006), the provision of loans and the acceptance of deposits. Corporate customers
use banks for issuing finance instruments and derivatives. The provision of, among others,
instruments for saving, financing, payment mediation and risk controlling are offered in markets
characterized by federal regulation and stiff competition. Due to the resulting pressure, financial
service providers are forced to evaluate current strategies and to find new ways of approaching
the market. The service nature of bank offers represen ..