International Institute of Planning & Management Bangalore

Subject Project

Thesis

: Comparative Study of Promotional Strategies adopted

by Public and Private Sector Banks in India

Presented By:

Vishal.r
FW 09-2011 Sec B1 (HRM)

Abstract
Service industry has its own unique characteristics. Marketing mix for services is designed to be more descriptive and sophisticated than tangible products. As marketing strategies are formulated and executed differently for variety of products, they are also designed differently for variegated services. Marketing strategies become more crucial when they are executed to design, distribute and promote banking services. The present study is descriptive in nature and takes out significant differences in the promotional strategies adopted by private and public sector banks in India. The study shows noteworthy results and opinions of customers, which can be very useful for designing effective promotional strategies for banks. The study reveals remarkable facts connected with customers perception about promotional tools of both sectors banks and also about the most effective tools to promote banking services.

Introduction to Banking
Banking sector in India is of great importance. In present business environment the promotional efforts are very much essential for the business whether they deal with any type of product or service. It has been truly said, Doing business without advertising is like winking at a girl in dark you know what you are doing, but nobody else does. With same perspective the present study tries to understand different promotional strategies adopted by private and public sector banks in India. The study will help to know key promotional techniques for banking industry from customers perspective. The study will guide to understand critical areas that banks should consider while positioning their services. In financial services people are primarily bothered about security of their funds and default risk. After the year 1969 the deposits of banks increased more than 80 times as a result of the nationalization of banks. Paul Cox (2007) revealed a fact that financial service providers are not perceived highly trusted, so that they might have difficulty in selling risk-based products. The effort to promote banking business is quite distinguished affair. At present, it is being very tricky due to the changing trends of industry, increasing competition and efficiency of regulatory environment, and financial system. The complexity in the banking services is also an issue of vital importance. This is the time when banks are offering new and innovative services frequently in the market. The content of promotional tools should make potential customers so much clear about these services so that they can take the most valuable decision. This can be firmly said that well-designed promotional strategies are very important to promote banking services effectively. In the marketing every product or service, customer satisfaction has been given the prime importance. The most frustrating aspect of bank marketing was Lack of Management support, Lack of interdepartmental cooperation, Crisis management, government intrusion and advertising and media problems (Berry and Lindgreen 1980).

Sarin and Anil (2007) recommended that manpower in service organizations must work with the focus of satisfying the customer. Banking should bring out the areas requiring improvement and further throws light on the measures so that customer s feel should be adopted in order to improve the quality of services. Promotional packages are very important for financial service industry (Ananda and Murugaiah 2003) and Orientation of banks should be with a much wider focus in relation to consumer and market needs, and the consequent marketing strategies. The challenges put forth by the changes in the environment have to be effectively tackled to identify consumer needs to provide valuable services through product innovation (Nair Raman 2006). In banking the temporal and spatial dimensions are perceived as more important than traditional dimensions based on outcome and process elements (Kristina Heinonen 2006). Tokunbo Simbowale (2005) examined the usage of marketing concept and techniques and recommended that a well-structured marketing department in banks is essential for profitability and effectiveness. A study by Krishna, Suryanarayana and Srikant (2005) recommends that promotional strategies should be designed as per the nature of the services to be promoted. The advertisers should seek a narrative approach to communicate the service experience rather than a logical, argumentative approach. Narrative approach involves storytelling methodology using sequence of events (Sehgal Roli 2004). Location convenience, speed of service, competence and friendliness of bank personnel should also be most the points with maximum value in banking services (Laroche and Manning 1986). Meidan (1976) had also revealed the fact that about 90% of the respondents banked at the branch nearest to their home place and place of work. Convenience, in terms of location, was also found to be the single most important factor for selecting a branch. It has been also generalized in the studies that services marketing advertisement is more challenging than the advertising of tangible products (Ray and Bose 2006). Winning new customers costs 10 times more than simply holding onto existing ones, The case should be taken in the marketing of financial services very seriously (Farrokhtakin, Stavash 2000). While formulating marketing strategy, a bank should focus attention on consumer sovereignty, on the attitude, responsiveness and personal skills of their staff, on revitalizing the marketing department, on top management support to the
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marketing department, and on participation of marketing personnel in key bank decisions.

Banking Industry is one of the most important service industries which touch the lives of in millions of people. Its service is unique both in social and economic points of view of a nation. Earlier the attitude of banking service was that it was not professional to sell one's services and was unnecessary in the sense that traditional relationships and quality of products were sufficient to carry forward the tasks. Before the mid 1950's the banks had no understanding or regard for marketing. The bank building was created in the image of a Greek Temple to impress the public about the importance of a bank. The interior was austere and the teller rarely smiled. Bankers maintained austere dignity and they hardly maintained friendliness. It was in the late 1950's that marketing in banking industry emerged in the west. It emergence was in the form of advertising and promotion concept. At that time, personal setting could not get a significant place. (.3radually there was a change in the attitude of bankers, probably in time with the attitudinal change in customers. The idea of customers' satisfaction began in the late 1950's, flourished in 1960's and became an integral part of the banking services in the 1970's. But the same trend could not be applicable, especially in developing countries and to be more specific in India because of socioeconomic and political reasons. Marketing came into Indian banks in the late 1950's not in the form of marketing concept but in the forms of advertising and Promotion concept. Soon it was realized that marketing transcends advertising and friendliness'. Till 1950 it was recognized that personal selling was not necessary. The bankers went out of their way to avoid being accused of selling. The bankers even eliminated the word 'selling' and they called the function of customer contact 'business development function'. The bankers' attitudes and comprehensions about marketing changed in the 1960's. They began to realize that marketing was a lot more than smiling and friendly tellers.

The idea of customer convenience began in the late fifties and it flourished in the 1960's. Bankers were beginning to understand the concept of market Segmentation in the late 1960's. The bank marketing profession Changed dramatically in the 1970's. Marketing positions in banks were
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created and marketing was accepted as an organizational imperative. To understand how banking services can be marketed better, one must examine banking as a service industry, in the content of a swiftly changing environment, redefine marketing to suit a banker's needs, analyze how the marketing of financial services differs from that of other products, identify the tasks involved there in and set forth a series of steps for effective bank marketing. When modern managers the world over are busy having their marketing skills, bankers in India can ill-afford to slug it off and keep away from global changes in banking which are in favor of "Optimal satisfaction of customers' wants and creation of customers for novel products". As a matter of fact competition was not in existence. On the one side of the fence was the State Bank of India alone, which is enjoying Government, ownership and on the other side were private Commercial Banks, local by orientation, primarily servicing the interest of the controlling business houses. Therefore neither the State Bank nor the others cared much for the public. Furthermore, their service is confirmed to a limited range of services which included Current Accounts, Term Deposit Accounts and Savings Bank Accounts in Deposit Area. In the area of advances, limits were sanctioned on the basis of security by way of lock and key accounts and bills, purchased limits; their miscellaneous services included issuance of drafts, collection of outstation cheques, executing standing instructions and lockers facility at a few centres. It was the phase of class banking and even the communication through the media was looked down upon with contempt as something against the tenets of banking culture. Even the advertisements released till 1966 were very few4.After nationalization of 14 major commercial banks in 1969, banking system in India is no longer the exclusive preserve of a few Industrial Houses or business families and has become a very important instrument of socio-economic changes5. Bankers, after nationalization, woke up from their splendid isolation and found themselves placed in a highly competitive and rapidly changing environment with competition becoming fierce day by day. The traditional description hardly suffices today's needs. Due to this, banks approaches towards customers and market underwent changes and focus was gradually shifted to marketing their products. Even the economist's view that bankers are creditors of money and not mere purveyors of credit does little justice to the present-day bankers' pivotal role in our society. Today banks are virtually becoming "Financial Supermarket" for their customers6. Banks were product oriented organizations, placing before the prospective customer their range of services, expecting him to choose, presuming that the customer had the knowledge, time,
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interest and skill to pick out the services that would suit him. Along with it, banks also became conscious of their corporate image and its projections and this introduced the public relations philosophy in banks with the purpose of image projection.

The first major step in the direction of marketing was initiated by the State Bank of India in 1972, when it recognized itself on the basis of major market segments, dividing the customers on the basis of activity and carved out four major market segments. They are commercial and institutional segment, small industries and small business segment, agriculture segment and personal and services banking segment. The new organizational framework embodied the principle that the existence of an organization primarily depends up on the satisfaction of customer needs. The hallmark of the reorganized setup was customer orientation. It aimed at - having a t~.)tavl iew of customers needs. - meeting the identified needs in the best possible manner. - Identification of potential customers, and - conducting activities at the branches on the basis of carved out market segments instead of job wise. By 1974. The environment became more demanding with the emphasis on mass banking and canalization of credit into priority areas and lending at differential rates of interest to the weaker sections of the society. This placed strains on the profitability of banks which led to keen competition, which is detrimental to the banking system in the ultimate analysis. This time even though banks were talking of marketing, they were essentially selling. A notable change during the period was related to two major components, that is product and promotion. The other two 'Ps' that is price and place were highly controlled by central banking authority. Banking began to offer profit security regular income, retirement benefits, money for marriage of the daughter, education tor growing children etc. It was in the earl) 1980's that banks realized that marketing was more than that. They started thinking in terms of product development, market penetration and market development. Moreover banks also accelerated the process of equipping their staff with marketing capabilities in terms of both skill and attitude through internal and external training.

Through the continuous modification and rectification in banking and implementation of financial sector reforms as per the recommendation of the committee on Financial system the functioning of banks in India has undergone dramatic changes. Starting from very conservative traditional banking where the service of banks was confined to a few in the society, now due to liberalization and privatization, a 'U' turn has taken place in Indian banking. The hallmark of the changed concept aimed at having a full view of customers' needs. 'That is, fulfilling the identified needs in the best possible manner by required service. These spleen did changes have three phases. They are - Traditional banking period - Development banking period, and - Bank marketing period

Marketing strategy It is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

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Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:  Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:  Leader  Challenger  Follower  Niches  Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.  Product differentiation (broad)  Cost leadership (broad)  Market segmentation (narrow)

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 Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:  Pioneers  Close followers  Late followers

Growth strategies - In this scheme we ask the question, How should the firm grow? There are a number of different ways of answering that question, but the most common gives four answers:  Horizontal integration  Vertical integration  Diversification  Intensification

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MARKETING MIX Meaning and Definition Marketing Mix means to collect and mix the resources of marketing in the manner that objects of the enterprise may be achieved and maximum satisfaction may be provided to the consumers. The term marketing mix is used to describe a combination of four elements the product, price, physical distribution and promotion. These are popularly known as Four Ps. A brief description of the four elements of marketing mix (Four Ps) is.

 Product: The product itself is the first element. Products most satisfy consumer needs. The management must, first decide the products to be produced, by knowing the needs of the consumers.

 Price: The second element to affect the volume of sales is the price. The market or announced amount of money asked from a buyer is known as basic value placed on a product.

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 Promotion: The product may be known to the consumers. Firms must undertake promotion work-advertising, publicity, personal selling etc. which are the major activities.

 Place: Physical distribution is the delivery of products at the

rights time and

at the right place. The distribution mix is the combination of decisions relating to marketing channels, storage facility, inventory control, location

transportation warehousing etc.

MARKETING IN BANKING Marketing approach in banking sector had taken significance after 1950 in western countries and then after 1980 in Turkey. New banking perceptiveness oriented toward market had influenced banks to create new market. Banks had started to perform marketing and planning techniques in banking in order to be able to offer their new services efficiently. Marketing scope in banking sector should be considered under the service marketing framework. Performed marketing strategy is the case which is determination of the place of financial institutions on customers mind. Bank marketing does not only include service selling of the bank but also is the function which gets personality and image for bank on its customers mind. On the other hand, financial marketing is the function which relates uncongenitalies, differences and non similar applications between financial institutions and judgment standards of their customers.

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The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be arranged as: Change in demographic structure: Differentiation of population in the number and composition affect quality and attribute of customer whom benefits from banking services. Intense competition in financial service sector: The competition became intense due to the growing international banking perceptiveness and recently being none limiting for new enterprises in the sector. Increase in liberalization of interest rates has intensified the competition. Banks wish for increasing profit: Banks have to increase their profits to create new markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels. The marketing comprehension that is performed by banks since 1950 can be shown as in following five stages: 1. Promotion oriented marketing comprehension 2. Marketing comprehension based on having close relations for customers 3. Reformist marketing comprehension 4. Marketing comprehension that focused on specializing in certain areas 5. Research, planning and control oriented marketing comprehension

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THE MARKETING MIX IN BANKING SECTOR SERVICE Recently, banks are in a period that they earn money in servicing beyond selling money. The prestige is get as they offer their services to the masses. Like other services, banking services are also intangible. Banking services are about the money in different types and attributes like lending, depositing and transferring procedures. These intangible services are shaped in contracts. The structure of banking services affects the success of institution in long term. Besides the basic attributes like speed, security and ease in banking services, the rights like consultancy for services to be compounded are also preferred.

PRICE The price which is an important component of marketing mix is named differently in the base of transaction exchange that it takes place. Banks have to estimate the prices of their services offered. By performing this, they keep their relations with extant customers and take new ones. The prices in banking have names like interest, commission and expenses. Price is the sole element of marketing variables that create earnings, while others cause expenditure. While marketing mix elements other than price affect sales volume, price affect both profit and sales volume directly. Banks should be very careful in determining their prices and price policies. Because mistakes in pricing cause customers shift toward the rivals offering likewise services.

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DISTRIBUTION The complexities of banking services are resulted from different kinds of them. The most important feature of banking is the persuasion of customers benefiting from services. Most banks services are complex in attribute and when this feature joins the intangibility characteristics, offerings take also mental intangibility in addition to physical intangibility. On the other hand, value of service and benefits taken from it mostly depend on knowledge, capability and participation of customers besides features of offerings. This is resulted from the fact that production and consumption have non separable characteristics in those services. Most authors argue that those features of banking services makes personal interaction between customer and bank obligatory and the direct distribution is the sole alternative. Due to this reason, like preceding applications in recent years, branch offices use traditional method in distribution of banking services.

PROMOTION One of the most important element of marketing mix of services is promotion which is consist of personal selling, advertising, public relations, and selling promotional tools.

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PERSONAL SELLING Due to the characteristics of banking services, personal selling is the way that most banks prefer in expanding selling and use of them. Personal selling occurs in two ways. First occurs in a way that customer and banker perform interaction face to face at branch office. In this case, whole personnel, bank employees, chief and office manager, takes part in selling. Second occurs in a way that customer representatives go to customers place. Customer representatives are specialist in banks services to be offered and they shape the relationship between bank and customer.

ADVERTISING Banks have too many goals which they want to achieve. Those goals are for accomplishing the objectives as follows in a way that banks develop advertising campaigns and use media. 1. Conceive customers to examine all kinds of services that banks offer 2. Increase use of services 3. Create well fit image about banks and services 4. Change customers attitudes 5. Introduce services of banks 6. Support personal selling 7. Emphasize well service

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Advertising media and channels that banks prefer are newspaper, magazine, radio, direct posting and outdoor ads and TV commercials. In the selection of media, target market should be determined and the media that reach this target easily and cheaply must be preferred. Banks should care about following criteria for selection of media.: 1. Which media the target market prefer 2. Characteristics of service 3. Content of message 4. Cost 5. Situation of rivals

PUBLIC RELATIONS Public relations in banking should provide; 1. Establishing most effective communication system 2. Creating sympathy about relationship between bank and customer 3. Giving broadest information about activities of bank. It is observed that the banks in Turkey perform their own publications, magazine and sponsoring activities.

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SELLING PROMOTIONAL TOOLS Another element of the promotion mixes of banks is improvement of selling. Mostly used selling improvement tools are layout at selling point, rewarding personnel, seminaries, special gifts, premiums, contests.

DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE MARKETING Marketing scope develops day to day. These developments carry special significance for service sector in which customer and service producer interact closely. INTERNAL MARKETING Especially in service sector like external relations, internal relations also have significance. It requires finding and keeping successful personnel. For personnel of the organization to be considered their own goals and service situation, values of the organization are sold to them. The communication techniques carried out for customers are also performed for the personnel in internal marketing and this two techniques go together. For example, the ads that aim creating firms image should be prepared with regarding to audience which is composed of firms personnel. NETWORK MARKETING This approach takes the organization as a sequence which involves producer and customer that market services to each other in the organization. In this structure, the activities of departments that compose organization would be more focused on market. This will also affect the structure of organization.
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RELATIONSHIP MARKETING It was mentioned that close relationship was established between producer and customer in service sector. In addition to this, life cycle of a customer relationship was also mentioned under the product outline. According to the researchers, maintaining the relationship for extant customer increases the profit of firms. It should be emphasized that this fact has an importance for service sector.

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Objectives of the Study

(i) To know about the various promotional tools of Private and Public sectors banks. (ii) To make a comparative analysis of customers strategies of private and public sector banks. perception for promotional

(iii) To find out the key promotional tools for banking services on the basis of customers responses.

Research Methodology
The present study is descriptive in nature, which is based on empirical evidences in the form of primary data. The data collection has been done form respondents who are presently availing banking services with a sample size of 300. The respondents were approached with systematic random sampling where every 3rd visitor was approached when he/she was coming outside bank after availing the service. The response rate was found to be 65%. The study includes the customers of 10 leading banks out of which 5 are from public sector (SBI and Associates, PNB, CBI, OBC and Bank of Baroda) and 5 from private sector (ICICI, HDFC, UTI, IDBI, Kotak Mahindra Bank) A structured questionnaire has been used for collection of data comprising open and close-ended questions. Likert scale has been used as a scaling technique in the questionnaire. Structured interviews have been taken of 2-2 employees of the above stated banks for getting the initial information about the promotional strategies adopted by leading private and public sector banks in India.

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Data Analysis and Interpretation

The responses have been captured in a scale of 5 to 1. 5 for Strongly Agreed and 1 is for Strongly Disagreed. Similarly in other questions 5 is for Very Effective and 1 is for Not at all Effective. Table 1 show that the Promotional Strategies of Private and Public Sector banks are almost similar. Both types of banks take the help of almost all type of media to promote their services. The first objective of the study deals with the analysis of the promotional strategies adopted by both. The analysis is done on the basis of review of existing literature and with personal contact and informal interview with the personnel of the private and public sector banks. The major difference in the promotional strategies adopted by banks is in the two techniques of the promotion and they are Personal Selling and Direct Marketing. The difference is that Public sector banks do not adopt the strategies of promotion as Personal Selling and Direct Marketing; on the other hand the same are adopted by Private Sector Banks. The reasons for this is high reliability and less profit orientation of public sector banks, public sector banks do not go for innovative strategies of promotion, however they go for interactive marketing through internet but that is not promoted so much like private sector banks. This has been demonstrated in Table 2 that the Respondents in the present study are mixed and are seem representative, they include farmers (19%), shopkeepers, students (31%), highly (23%) as well as low educated (25%) persons. Table 3 states that the maximum respondents (48.33%) were availing the services of Saving Accounts, which is followed by current account service holders (28.33), only few are availing the service of fixed deposits (11%) and Loans (7%). The loan takers also include the students in the form of education loans. Most of the respondents answered that they were influenced by Friends and Relatives (42%) for choosing the services from a particular bank. This is the power of word of mouth. This shows that the impact of opinion leadership and reference group is very much in banking services however advertising (21%) also affects the decision of selecting a particular bank Table 4. As per the responses given in Table 5. The difference between public and private sector banks is known to the maximum number of people (85%). 15% of the respondents are not aware about the difference between public and private sector banks.
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Table 6 gives a clear idea about the question related to the perception of customers about private and public sector banks the results are not so surprising. People think that the advertisements and promotional efforts of Private sector banks are more effective than Public sector banks with a weighted mean score 3.51 for 5. The respondents are strongly agreed with the statement that Private Sector Banks do more advertisement than Public Sector Banks (3.81). Further, one more aspect, that is very important in the case of services and especially in financial services i.e. Truthfulness, and completeness in advertising. The respondents look agree with the statement that the information provided by Public Sector Banks is more reliable than private sector banks because that is truer and complete (3.62). This has been narrated in Table 7 Private Sector Banks are slightly better in catching the awareness of people than Public Sector Banks in mass media advertising. 69% respondents accepted that they have exposure of advertising on television and 61% of advertising in newspapers in case of private sector banks. However in the case of public sector banks it is 66% and 52% respectively. Table 8 gives descriptive idea about the exposure of various promotions. In outdoor advertising and online marketing, private sectors banks are again more successful to spread awareness than public sector banks, but the total awareness level has stayed low. In public sector banks 21% of the respondents were accepted that they have an exposure of outdoor advertising while the respondents for it in case of private sector banks were 28%. As online marketing is not so much adopted by public sector banks only 7% customers have the exposure of the same, while for private sectors banks the exposure of respondents is 17%. When the respondents were asked the question about the exposure of tele calling and personal selling the responses did not show high exposure. Almost 26% People are exposed to tele calling and 30% are exposed to any salesperson of the bank. The last but the most important aspect has been discussed in Table 9. When customers were asked to tell the most effective tool for promotion of banking services, very meaningful results were came out of the study. The most effective tools in respondents opinion is advertising on television with weighted mean value 3.84 and advertising in newspapers was at second place (3.59). This is followed by personal selling (3.43) and advertising in journals and magazines (3.26). Advertising on Television has been given the first rank and Publicity (2.25) is given the last. However there is no so significant variability in the factors if we move from one. The variability as per standard deviation is 0.5274.

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Table: 1 Promotional strategies by public and private sector banks Promotional Tool Public Sector Bank Private Sector Bank Yes Yes Yes

Advertising on Yes Television Advertising in Yes Newspapers Personal No Selling/Personal Contact In Journals and Yes Magazines Tele Calling by Sales No Persons Outdoor Advertising Yes Hoardings etc Schemes/Gifts/Prizes No for Customers Public Yes Relations/Events/Progr ammes Online Marketing/EYes But Few Mail Pamphlets/Propaganda No Letter/Mail/ with No Relevant Material Publishing News in Newspapers Yes But

Yes Yes Yes Yes Yes

Yes Yes Yes

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Suggestions and Recommendations

The suggestions have been assembled on the basis of respondents opinion. Banks must concentrate on the innovative and attractive mass media advertising. Both sectors banks must do practical efforts for the awareness of Internet banking to promote their services in a modern manner. There is a need to make outdoor advertising more effective. The ads should be placed where more people visit and wait for some time. Banks should also go for the social marketing because this shows the affections with the society and forms a better corporate image. This will also help the banks to get a little away from their typical financial and rational image. Public Sector Banks must concentrate to make their promotional campaigns more effective and attractive. These banks are enjoying high reliability; the same should be utilized in promotional strategies. Now the time has come that public sectors banks should also think for personal selling and tele calling. Public sector banks lack in quality in the respondents opinion. They must ensure their customers better quality with the help of promotional tools. Private sector banks have less reliability than public sector banks. They must take insert transparency in their schemes. Private Sector Banks should enhance the effectiveness of personal selling as the respondents have also considered it as a very good promotional tool.

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Managerial and Academic Implications of the Study

Results in present study are in favor of mass media advertising. This has been generalized that the message can be conveyed to a retail customer through mass media in the best way. The study gives so many key areas to marketers to focus in their promotional campaigns. There is a significant contribution of the study in academic literature. It reveals certain very important facts about the customers perspectives about promotional tools for banking services. The same information can be quoted while imparting knowledge with the students about the same field.

Scope for Future Research

The study is related to the districts of Karnataka. The future researches can be conducted by taking other areas as population. A comparative analysis of SemiUrban areas and other parts can be done of promotional strategies. The future researches may include public, private, foreign banks exclusively on the same topic. As information technology is now entering into villages and semi urban areas also, the scholars may concentrate on carrying out research on direct marketing and Internet marketing tools as well as Internet advertising of banking services. Further the various components of promotional mix can be studied exclusively.

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Conclusion
Promotion has different aspects for different industries, products and services. Its final goal is to communicate positive word of mouth among existing and potential customers about the corporate, product and service. In banking the customers must be ensured that services provided by a particular bank have been designed to give them maximum value of their money. In brief, it can be said that in India wherever the dilemma of private and public sector comes always two things are considered. Public sector is more reliable but not so good in the quality and innovativeness. Private sector is not considered so reliable, there may be hidden charges in the services and false and misleading information in the advertising but they are better in the service quality. Private sector banks must be truer and reliable first, they have to win the hearts of the customers, after that they will be able to win minds as well. In traditional tools of promotion both sectors banks are almost same. Private Sector banks are adopting more push strategies to attract and catch the customers and this creates the difference between promotional strategies adopted by Public and Private Sector Banks.

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References
Ananda S. and Murugaiah V. (2003), New Marketing Dimension for Financial Services Industries. Indian Journal of Marketing, Vol. 35, pp. 34-38. Berry L L, Kehoe, W J, Lindgreen J H, (1980), How Bank Marketers View their Jobs, The Bankers Magazine (USA), Vol. 163, pp. 35-40. Kristina, Heinonen (2006), A Conceptual Framework of Online Banking Services Journal of Financial Services Marketing; Vol. 12, pp. 39-52. Kumar, Ashok (1991), Marketing Strategies in the Banking Sector, IBA Bulletin, Vol. 6 pp. 13-14. Laroche M, Rosenblatt, J A and Manning T (1986) Services Used and Factors Considered Important in Selecting a Bank: An Investigation across Diverse Demographic Segments International Journal of Bank Marketing, Vol. 4 (1), pp. 35-55. Median A (1976), Branch Manager s Attitude on Bank Objectives and Operations, Proceedings of the European Academy of Advanced Research in Marketing Conference, France, pp. 215-228. Nair V Raman (2006) The Icfaian Journal of Management research, Vol. 5, pp. 66-78. Paul Cox (2007), Should a financial service provider care about trust: Study of retail saving and investment allocations Journal of Financial Services Marketing, Vol.12 Pp.75-87. Ray Subhasis, Suchetana Bose (2006), Strategizing Advertisements in Services Sector, Marketing Mastermind. Vol. 3, pp. 23-29. Sarin Anil (2007), Contemporary Issues in Services Marketing. Indian Journal of Marke

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