Bank

Marketing
Paramjit Sharma
two examples

Paramjit Sharma
•1955 Set up as industrial bank
•1994 ICICI Bank Set Up
•1996 Mr KV Kamath became MD
•1999 Announced retail Loans.. car.. housing
•2000 First bank from India to List stock at NYSE
•2002 ICICI Ltd Merged With Bank
•2004 Foreign Branches
•2005 Rural Branch
•2008 First Branch in New York
•2008 Chanda Koacher as MD
•ICICI Venture, ICICI Prudential ,ICICI Securities, ICI Lombard
•2008 Income 28923,Profit 5900,Deposits 230510,Advances 195865 (Cr)

Paramjit Sharma
Mission Plan- Business Plan 2500 cr by 2011

Marketing Objectives
Business Plan
SWOT Analysis
Mergers
2008-Turnover Rs1900 Cr

Paramjit Sharma
What Could be the reasons of their Success?

Paramjit Sharma
Marketing could be one……….. ?

Paramjit Sharma
What is Marketing…?

• Is it Selling?
• Is it Advertising?
• Is it Promotions?
• Is it Making products/Service available on time.. ?
• Is it Maintaining inventories….?

• All of the above, plus much more!

Paramjit Sharma
 Marketing?

•Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods,
services… to create exchanges that satisfy individual and
organizational goals

Paramjit Sharma
Why Bank
Marketing?

Paramjit Sharma
 For our
Stakeholders

Paramjit Sharma
Who are they ?

Paramjit Sharma
Members

eir
sing th Providing
e a
Incr me Services
inco

Paramjit Sharma
Customers

n d ing Satisfying
e rsta
Und tomers Customers
Cus

Paramjit Sharma
What Bank Can Do for the Customer
& Members ?

Cost Of Service
Quality Of Service
Service
Differentiatio
n

Paramjit Sharma
Excelling in
Competition

Paramjit Sharma
Innovating New
Products and
Services

Paramjit Sharma
Emerging Trends

Customer’s Pressures
Recession

Domination of

Changing Life Styles

Intensity of Competition
Paramjit Sharma
Therefore knowing more about bank marketing……..

Paramjit Sharma
Is it easy to market these products ?

Paramjit Sharma
How about these products?

Paramjit Sharma
Marketing Services

Paramjit Sharma
How about Marketing them?

Paramjit Sharma
How about their films ?

Paramjit Sharma
Let us know more about marketing Process

Paramjit Sharma
There are 10 offerings which can be marketed

Can you name them?

Paramjit Sharma
 PERSONS PROPERTIES
Products/Goods

ORGANISATIONS
SERVICES
MARKETING

EXPERIENCES INFORMATION

PLACES
EVENTS IDEAS

Paramjit Sharma
These can be marketed if there is a
demand for them ?

Paramjit Sharma
What is Demand?

Paramjit Sharma
NEGATIVE NO DELATENT
MAN D DECLINING
DEMAND DEMAND DEMAND DEMAND
STA TE S

DEMAND
STATES

IRREGULAR FULL OVERFULL Unwholesome

DEMAND DEMAND DEMAND demand
Paramjit Sharma
Can we apply the same marketing process to all the markets ?

Paramjit Sharma
 MARKETING
MIX

PLACE
PRODUCT

Variety PRICE
Quality PROMOTION Channels
Design Coverage
Features List price Assortments
Brand Discounts
Sales Locations
Packing Allowances Advertising
Sales force
Inventory
Sizes Purchase Period
Services Credit terms P.R’S Transport
Warranties Direct Marketing
Returns
Paramjit Sharma
 Four P,s Four C,s

PRODUCT CUSTOMER SOL.

PRICE CUSTOMER COST

PLACE CONVENIENCE

PROMOTION COMMUNICATION

Paramjit Sharma
 Marketing Triangle

Customers

Company Competition

Paramjit Sharma
 Customers - Problem Solution

• As a priority , we must bring to our customers

“WHAT THEY NEED”
•We must be in a position to UNDERSTAND their
problems
•Or in a new situation to give them a chance to
AVOID the problems

Paramjit Sharma
 Customer
Delivered
Value
Total Total
Customer value Customer Cost

Product Monetary
value cost
Customer look
Service for Value Time
Value cost
Personal Energy
value cost
Image
Paramjit Sharma Psychic
value
cost
Customer Loyalty

Data warehouse of Customers

Services offered to affluent Customers

Product Customization for different Segments

Acquiring competitors customers

Educating Customers
Paramjit Sharma
 Marketing Triangle

Customers

Company Competition

Paramjit Sharma
 Analysis Of
Competition

 Who are your competitors?

 What are their strengths and
weaknesses?
 What have been their
strategies?
 How are they likely to respond
to your Marketing plan?

Paramjit Sharma
Marketing
Competition

Poor firms ignore their competitors

Average firms copy their competitors

Winning Firms lead their competitors

Paramjit Sharma
Bracing Competition

Gamut of Services

Unique Marketing Strategies

Gaining New Customers

Retaining Old One

Call Centers

Single Window
Paramjit Sharma
 Marketing Triangle

Customers

Company Competition

Paramjit Sharma
Organisations actively work to build a strong,
Favourable image in the minds of their target
Public.
Organizations spend money on corporate
Identity ads

Paramjit Sharma
Paramjit Sharma
Organizational Strategies

SWOT Analysis
Balance Scorecard
Cost Leadership
Differentiation

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Marketing Strategy

Cost Leadership is a competitive

Strategy in which a firm succeeds
in producing products or services
at the lowest costs in the industry

Paramjit Sharma
 Marketing Strategy

Differentiation is a competitive strategy in which

a firm succeeds by developing and maintaining a unique
value for the product as perceived by
consumers

Paramjit Sharma
Cooperative Group

Retailing
Banking
Insurance
Dairy
Funeral Care
Real Estate
Agriculture
Legal Services
Pharmacy
Travel

Paramjit Sharma
Product

Paramjit Sharma
 Product is . . . . .

Anything that is offered to the market for

attention, acquisition, use or consumption that
satisfies a want or a need

Paramjit Sharma
 Types of
Products

PRODUCTS

Consumer Industrial
Services
Products Products

Paramjit Sharma
Product
Life PLC Stages
Cycle

Fax
Cell Phones
Bottled Water

Type Writers
News Papers

Type Writers
Paramjit Sharma
 What is a Service?

•An act or performance offered by one party

to another (performances are intangible, but
may involve use of physical products)

•An economic activity that does not result in

ownership

Paramjit Sharma
 Some Services

• Banking, stock broking • Health care

• Lodging • Education
• Restaurants, bars, catering • Wholesaling and
retailing
• Insurance • Laundries, dry-cleaning
• News and entertainment • Repair and
maintenance
• Transportation (freight and
• Professional (e.g., law,
passenger) architecture, consulting)

Paramjit Sharma
Classification of
Services
Banking Pure Intangible
Service
Good Transportation

Major Service with

Minor Product
Business Hotels
Product = Service

Computers

Major Product with

Minor Services
Materials / Components

Pure Tangible Product

Paramjit Sharma
Major
Characteristic
of Services

 Intangibility – Services are intangibility cannot

be seen, tasted, felt, heard or smelled before
purchase.
 Inseparability - Services are produced and
consumed simultaneously.
 Heterogeneity – Services are highly variable
 Perishability – Services cannot be stored.

Paramjit Sharma
Pricing

Paramjit Sharma
 Price …..Quality ….Strategies
Price
High Med low
1 2 3
H Premium High value Super value
Product Quality

Strategy strategy strategy

4 5 6
Overcharging Medium Good value
M
strategy Value Stg. Strategy

7 8 9
Rip off False Econ. Economy
L Strategy Strategy Strategy
Paramjit Sharma
 Are Banks truly
marketing-savvy
and
customer - centric?

Paramjit Sharma
Myth 1 –
The larger the range of products,
the more customer-centric we are.

Mythbuster – The range of products has

emerged from being competition-centric.

Paramjit Sharma
Myth 2 –
Better technology leads to
better customer service.

Mythbuster – Technology
alone does not helps people do.

Paramjit Sharma
Myth 3 –
Launch a product and the customer
will start using instantly.
Give a customer a card and he will learn how to play
with it immediately

Mythbuster – Customers need

To be educated too…

Paramjit Sharma
Myth 4 –
Just advertise and –
You will sell.

Mythbuster – Advertising will only sell,

Not retain customers.
Paramjit Sharma
Myth 5 – No difference between
marketing & selling

Mythbuster – “Selling focuses on the needs of the

seller; marketing on the needs of the buyer.

Paramjit Sharma
 Market Growth
Rate

10x 4x 2x Relative
1.5xMarket
1x Share
0.5 0.4 0.3 0.2
0.1
BCG MODEL Paramjit Sharma
 thanks

Paramjit Sharma