CAIIB-General Bank Management Module D -MARKETING MANAGEMENT

CAIIB-General Bank ManagementModule D -MARKETING MANAGEMENT BY S.V.ATRE Bsc, BA, LLB, MBA, CAIIB FACULTY, BANK OF INDIA, MANAGEMENT DEVELOPMENT INSTITUTE, CBD BELAPUR, NAVI MUMBAI

WHAT IS MARKETING ? • IS SELLING & MARKETING ARE SAME ?

DEFINITION – PETER DRUCKER • Marketing is not only much broader than selling, it is not a specialised activity at all. • It encompasses the entire business. • It is the whole business seen from the point of views of its final result that is from the customer’s point of views. • Concern and Responsibility for marketing must therefore permeate all areas of the enterprise contd…….

DEFINITION – PHILLIP KOTTER • Marketing is the business function that identifies current unfilled needs and wants, • defines and measures their magnitude, • determines which “Target Markets” the organisation can best serve • and decides on appropriate products, services and programmes to serve these markets. • Thus, marketing serves as a link between society’s needs and its pattern of industrial response.

Collecting & Analysing the Needs, Wants & Demands of Customer Developing & Designing a Product Feedback CONCEPT OF MARKETING Conveying the Customer about the Product Delivering the Product Pricing the Product

INTRODUCTION TO MARKETING MANAGEMENT-Questions • To make available goods and services to buyers according to their requirement Is called : • a) selling • b) trading • c) marketing • d) any of the above

INTRODUCTION TO MARKETING MANAGEMENT-Questions • Marketing combines which of the following : a) philosophy of business and business practices b) business practices and customer requirements c) customer requirements and philosophy of business d) all of the above

INTRODUCTION TO MARKETINGMANAGEMENT-Questions 3.Which of the following is not a part of the marketing activity a) sales and sales management, marketing research, planning distribution b) advertising and promotion, after sale service c) pricing, packaging, product development d) none of the above

INTRODUCTION TO MARKETING MANAGEMENT-Questions • Which of the following is more appropriate to the process of marketing management. a) analysis and planning b) planning, marketing and implementation c) analysis, planning, implementation and control d) analysis, implementation, control and marketing

INTRODUCTION TO MARKETING MANAGEMENT-Questions • Which of the following is an appropriate definition of product. a) it is anything that can be offered to satisfy a need or want of the customer b) a product can be a physical goods c) a product can be a service or idea d) all the above together

MARKETIING OF WHAT • PHYSICAL GOODS • SERVICES • IDEAS • MARKETING DIFFERS FOR EACH CATEGORY

MARKETIING OF SERVICES • AS A BANKER WE ARE CONCERNED WITH THE MARKETING OF SERVICES • WHICH GREATELY DIFFERS FROM MARKETING OF GOODS (contd)

DIFFERNCE BETWEEN PHYSICAL GOODS & SERVICES

DEFINITION OF SERVICE • Services are by and large “Activities” or they are a series of activities – rather than things • The services are intangible • They take place in the interaction between the customer and the service provider i.e. Services are produced and consumed simultaneously

MARKETING OF BANKING PRODUCTS • Banks provide services • Its aim is to satisfy customers’ needs and wants • The needs and wants of the customer are financial in nature • Competition, Efficiency and Effectiveness are major factors

CONSUMER BEHAVIOUR • STUDY OF THE CONSUMER EHAVIOUR IS ESSENTIAL FOR MARKETING • UNDERSTANDING CONSUMER BEHAVIOUR IS THE GREATEST CHALLENGE • CAN CONSUMER BEHAVIOUR BE PREDICTED • CONSUMERS ARE HUMAN BEINGS

CONSUMER BEHAVIOUR • “To buy or not to buy” • What to Buy? • When to Buy ? Consumer behaviour is influenced by :- • Needs and Motives • Hierarchy of Consumer Needs • Decision making process

NEEDS & MOTIVES 5. Self-Actualisation Self Fulfillment 4. Esteem Needs – Self respect, Recognition, Status and Success 3. Social Needs Friendship,affection and a sense of belonging 2. Safety Needs– Avoidance or Protection from Threatening situations and economic security • 1. Physiological Needs : Food - Oxygen - Sleep

Individual Perception • An individual is motivated by • his personal needs for self esteem, • love or social recognition, • his behaviour is affected by his particular perception of himself and the world around him. Selective Perception • Human consumers have the ability to select from the many sensations bombarding our brains

CONSUMER BEHAVIOUR Learning and Habit Development – Cognitive theory views • Learning as a mental process of memory thinking • and the rational application of knowledge to practical problem solving • Most consumer behaviour is habitual. They rely on habit because :- 1)they resort to habit when they select products because it is easy 2)they rely on habit because of necessity 3)they resort to habit because it is the rational thing to do

FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING • Location : Where a bank branch is located often influences the choice of the bank. • Very often the “bank next door” wins on that basis alone • contd….

FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING Safety : Depositors are very often placing their hard earned money in a bank and a worrying factor for them is “is the bank safe?” • To quell the fear, the background of the bank, its promoters, international connections, the years it has been operating in the country, all influence the choice contd….

FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING • Returns : A consumer having satisfied himself that his money is safe, wants to be sure that the returns being earned are attractive

FACTORS INFLUENCING CONSUMER BEHAVIOUR IN BANKING • Range of Services : With greater sophistication in the environment, a consumer gets more demanding and would like his bank to offer a variety of services and products which increase convenience for him. • Ex. Phone billing + ATMs or offer him greater choice – a range of term deposit products which offer him high returns and liquidity.

CUSTOMER SERVICE AS A MARKETING TOOL

CUST SERVICE AS A MRKTING TOOL • MARKETING COST IS VERY HIGH • SUCCESS OF MKTG IS UNCERTAIN • SATISFIED CUSTOMER IS THE BEST MARKETING MANAGER FOR THE BANK • NOT ONLY HE RETAINS BUSSINESS HE CANVASSES NEW BUSINESS ALSO • HIGHER SUCCESS RATIO • ITS FREE

Customer Service -The Essence Of bussiness • Customers are the backbone of the Organizations • They posses the power to make or break any organisation irrespective of its nature and size . • You forget your customers and you are out of your bussiness

CS-The essence of business. • So, it is necessary to take adequate care of them and at the same time increase their number.

NEED OF CUST SERVICE • IN A FREE MARKET ECONOMY THE CUSTOMER HAS CHOICE • IT COSTS MORE TO GAIN A NEW CUSTOMER THAN TO RETAIN AN EXISTING ONE. • UNLESS THE SITUATION IS RECOVERED QUICKLY- • A LOST CUSTOMER WILL BE LOST FOR EVER.

NEED OF CUSTOMER SERVICE • DISSASTISFIED CUSTOMERS HAVE FAR MORE FRIENDS THAN SATISFIED ONES. • IF YOU DONOT LOOK AFTER YOUR CUSTOMERS, SOMEBODY ELSE WILL.

CUSTOMER’S NEEDS • SPEED • TIMELINESS • ACCURACY • COURTESY • CONCERN

TOOLS STAFF EMPOWERMENT • ATTITUDE • POLITENESS • LISTENING • PROMPTNESS • KNOWELEDGE • COMMUNICATION • CUSTOMER EDUCATION

COMMON COMPLAINTS • RUDE SERVICE /RESPONSE AT THE COUNTER • UNATTENDED PHONES • DELAYED SERVICE • INSENSESITIVITY AND APATHY TOWARDS CUSTOMER • UNINFORMED STAFF

COMPLAINTS REDRESSAL • WELCOME COMPLAINTS,THEY ALLOW FOR RECOVERY • THE CUSTOMER MAY NOT ALWAYS BE RIGHT BUT HOW YOU RESPOND CAN MAKE ALL THE DIFFERENCE • IF YOU DONOT LOOK AFTER THEM,SOMEBODY ELSE WILL

TIPS • AVOID CONFRONTATIONS • YOU MAY WIN THE ARGUMENT BUT WILL LOSE THE CUSTOMER

CUSTOMER DELIGHT • GIVE HIM MORE THAN WHAT HE NEEDS OR DEMANDS • SERVE WITH SMILE • MAKE HIM A DELIGHTED CUSTOMER • MAKE HIM A FRIEND

LEGAL PROTECTION TO CUSTOMERS • Consumer protection act • Banking Ombudsman scheme • Right to information act • Lenders’ liability act

The Consumer Protection Act • Consumers are provided with easy access to justice. • Simple and faster mechanism • since it is a welfare legislation the interpreted to the benefit of the consumer.

COPRA PROTECTS FOLLOWING RIGHTS OF CONSUMERS. • Protection from goods which are dangerous to life and property. • To be informed about the quality,quantity,potency,purity,standard and price of goods • To have competitive price • The consumer interest will receive proper consideration

COPRA • The right to seek redressal against unfair trade practices/exploitation, • The right to consumer education.

THE BANKING OMBUDSMAN SCHEME 1995 • POWERS AND DUTIES • a) to receive complaints relating to banking services. • b) to consider such complaints and facilitate their : I) satisfaction or • ii)settlement by agreement or • iii) by making a recommendation or • iv) award

Ombudsman’s authority include • All complaints concerning deficiency in service,such as: • 1.Non payment/inordinate delay in payment or collection of cheques,drafts/bills,etc. • 2.Non -acceptance , without sufficient cause,of small denomination notes tendered for any purpose,and for charging of commision in respect thereof.

All complaints concerning deficiency in service ,such as: • 3.Non- issue of drafts to customers and others • 4.Non-adherence to prescribed working hours by branches • 5.Failure to honour gurantee ,letter of credit commitments by banks.

OMBUDSMAN • 6.Claims in respect of unauthorised or fradulent withdrawals from deposit accounts,etc • 7.Complaints pertaining to deposit accounts. • 8.Complaints from exporters in India pertaining to the bank’s operations in India.

OMBUDSMAN • Complaints from Non -Resident Indians having accounts in India in relation to their remittances from abroad , deposits and other bank-related matters.

CAIIB-General Bank Management Module D -MARKETING MANAGEMENT