Strategies involved n mkt. of service product with reference to ubi

Strategies involved in marketing of service product with reference to Union bank of India
EXECUTIVE SUMMARY
In the today’s age of competition, a bank marketing its services must select its
communication tools from advertising, sales promotion, publicity and personal sales.
Through marketing measures, the bank tries to project its products/services and overall
image to its existing and potential customers. Proper timing and selecting proper media
for advertisement and publicity is the difficult part of the bank’s marketing efforts. The
concept of the project is to promote communication process.
Marketing communication is a dynamic process and continuous in nature. A bank using
various channels of communication should keep in to account its business goals,
customers’ expectation about product and service as well as the marketing environment
prevailing at the time of such marketing campaign. Marketing strategy is the 4th
“P” of
marketing, which covers advertising and sales promotion, publicity and integrated
marketing communication.
Marketing communication is a continuous process and proper communication with
internal as well as external customers is crucial to ensure effectiveness of promotional
measures in achieving the corporate business goals.
A well thought and innovative promotional (marketing) strategy backed by a practical
action plan will certainly enable the banks to satisfy their customers and make profits
without losing sight of the social obligations and changing customer expectations.
Reserve Bank of India issues guidelines from time to time regarding advertising and
publicity by banks, each bank has to decide on proper promotional mix and its strategies
depending on composition of business in its command area and type of services offered
by it to its customers.
Sneha Potdar/T.Y.BBI 1

INTRODUCTION OF MARKETING
Marketing in the true sense of the world, is relatively new to the Financial sector. Until
recently, marketing in most financial sector organizations was largely synonymous with
advertising and public relations and it was not until the 1970’s that marketing
departments were formed on any scale. Even then, the role of marketing tended to be
more tactical that strategic; marketing was seen as a relatively low status activity with
senior management being dominated by executives with a background in finance. In the
last decade, marketing has developed as a more integrated function within financial
service organizations largely as a result of rapid changes in the operating environment.
Marketing thus means the bank’s well organized, planned and goal oriented efforts which
must be in congruence with its overall business goals and objectives in the desired market
area keeping specific needs of customer in mind.
Marketing means communicating with the customer, in order to strengthen his attitudes
that are favorable to the bank offering and to change his attitudes, which are unfavorable
to the bank. This pre-supposes ensuring that such buyers become satisfied customers of
the bank – now or later.

MARKETING STRATEGY
DEFINITION
“Marketing strategy is a set of objectives, policies and rules that guide over time, firm’s
marketing efforts”
-Philip Kotler
Marketing strategy is a technique, which the bank introduces to study and cope up with
market changes. Strategy is the all-important part of marketing. The one time planning
determines where the bank is and in the strategy will followed many more important
things which is analyzed and realized from the market at regular intervals. In other words
marketing is a generic term used for the communication efforts of the firm that are
directed towards achieving the objectives of a marketing strategy.
The Marketing efforts include the communication channels of -
Advertising
Publicity
Sales promotion
Person-to-person communication
Bank’s internal communication process
Marketing thus means the bank’s well organized, planned and goal oriented efforts which
must be in congruence with its overall business goals and objectives in the desired market
area keeping specific needs of customer in mind.
Marketing means communicating with the customer, in order to strengthen his attitudes
that are favorable to the bank offering and to change his attitudes, which are unfavorable

to the bank. This pre-supposes ensuring that such buyers become satisfied customers of
the bank – now or later.
The objectives of “Marketing” are:
• Informing/ telling/ educating potential customer.
• Informing existing customers about new products/ services.
• Following up with existing/ potential customers for schemes introduced.
Approaching a new segment of customers to attract them to promote new scheme.

NATURE AND CHARACTERISTICS OF MARKETING STRATEGY
♦ Strategy is a process
Marketing strategy is a process. The strategy process can be broadly divided into three
parts:
• Strategy planning / Formulation.
• Strategy Implementation.
• Strategy Evaluation.
♦ Achievement of Objectives
Marketing strategy is developed in order to achieve the objectives of the marketing
department in particular and that of the organization in general. To formulate marketing
strategy, one has to know the objectives that are to be pursued, and also the policies that
must be followed.
♦ Future Oriented
Marketing strategy is a future oriented plan. It is designed to attain future position of
the organization. Through marketing strategy, management studies the present position
of the marketing, and then aims at attaining the future position of the marketing
department. The marketing strategy provides answers to certain questions relating to:
• Profitability of the present business.
• Growth and expansion of the business in the long run.
• Entry into different businesses in future.
♦ Unified, Comprehensive and Integrated
A marketing strategy is not just a plan. It is an unified, comprehensive and integrated
plan.
• It is unified as it unifies all the parts or sections of the organization together.

• It is comprehensive as it covers all the major aspects or areas of the marketing
department.
• It is integrated, as all the parts of the marketing strategy are compatible with every
other functional strategy of the organization.
♦ Strategy Alternatives
Organizations need to frame alternative strategies. It is not sufficient to frame one or
two strategies. Small organizations may survive with one or two strategies due to fewer
complexities in their business. However, large organizations need to frame alternative
strategies in respect of growth and survival of the organization. William F. Glueck in
his book 'Strategic Management' has identified the strategic alternatives into four broad
groups:
• Stable Growth Strategy - where a firm tries to hold on to its current position by
concentrating on the same product(s) and in the same market(s).
• Growth Strategy - where a firm aims at substantial increase in market share and / or
sales.
• Retrenchment Strategy - where a firm drops some of the activities in a particular
business or totally getting out of some of its businesses.
• Combination Strategy – a combination of above stated strategies.
♦ Relates to the Environment
The internal and the external environment affect the strategy formulation and
implementation. The internal environment relates to mission and objectives of the
business, the technology used, the physical, financial and human resources. The
external environment relates to competition, customers, channel intermediaries,
government policies and other social, economic and political factors.
There must be proper analysis of both the internal and the external environment before
formulating strategies. The analysis of internal environment reveals strengths and
weaknesses of the organization and the analysis of external environment reveals the

opportunities and threats.
♦ Allocation of Resources
For effective implementation of marketing strategy, there is a need for proper allocation
of resources. Proper allocation of resources is required to undertake the various
activities so as to attain the objectives. The resources can be broadly divided into three
groups:
• Physical resources such as sales offices, showrooms, etc.
• Financial resources - funds required for marketing operations.
• Human resources i.e. manpower
♦ Universal Applicability
Marketing strategy is universally applicable. It is applicable to business organizations
as well as to non- business organizations. This is because every organization need to
frame strategies for their growth and survival. The marketing strategies keep the
organizations moving in the right direction.

IMPORTANCE OF MARKETING STRATEGY
Marketing strategies play an important role in accomplishing the marketing objectives of
a bank, which in turn helps to accomplish the overall objectives of a bank. The role and
importance of marketing strategy is explained as follows:
 Helps to Attain Marketing Objectives
A marketing strategy is a broad long-term plan designed to achieve basic objectives of
the marketing department. The objectives of the marketing department may be expressed
in terms of growth, market share, profitability, etc. Strategy provides the direction and
guidance to undertake the various activities, which are required for the attainment of the
objectives.
 Helps to Identify Market Segments
The marketing strategy enables a bank to identify market segments that it will serve and
what service offers it will make. A well-defined marketing strategy clearly describes
whom (customers and markets) to serve and whom to exclude. Also what to serve
(products and services) and what not to serve (which products/services to avoid, or stop
serving).
 Helps to Identify Major competitors
A well-defined marketing strategy would indicate the major competitors with whom the
bank needs to compete and the others whom the bank should ignore.
 Helps to Identify the Competitive Advantage
A marketing strategy helps a bank to identify the competitive advantage of the bank.
With the help of marketing strategy, a bank can identify the competitive differences on
whose strength the bank can compete effectively at the market place.

 Helps to Minimize Risks
Marketing strategy helps to minimize risks due to changes in competitors' strategies,
changes in technology, changes in consumer likes and dislikes, etc. The management in
order to face emergencies or contingencies frames alternative strategies. If risks or
contingencies take place, the alternative strategies are put into action to minimize the
risks.
 Aids Decision-making
Marketing strategies help in decision-making. Marketing strategy provides necessary
guidance and direction for various decisions relating to marketing of services. The
managers follow the blue print of the strategy at the time of taking vital marketing
decisions.
 Facilitates short term planning
Marketing strategy is a broad long-term plan. It provides necessary guidelines to frame
short term or yearly plans.
 Facilitates organizing
Marketing strategy facilitates organizing of resources in the organization. On the basis of
long-term objectives, the organization can make proper arrangement of physical,
financial and human resources.
 Facilitates direction
The strategy provides guidelines to the organization in respect of the overall objectives of
the bank in the long run.
 Facilitates control
Strategy can also facilitate controlling of activities of the marketing department. The

marketing department can compare the actual performance with the targets. If there are
any deviations, the marketing department can take necessary corrective measures to
control and correct the deviations.
STEPS IN STRATEGIC MARKETING PLANNING
The marketing strategy planning must be done within the framework of the overall
organizational planning. Marketing planning consists of the following steps:
Defining Mission:
The first step in strategic marketing planning is to define the mission of the bank. The
mission is based on the vision and philosophy of the top management, and the purpose of
the business.
Internal Situation Analysis
After identifying the mission, the marketing manager conducts internal situation analysis.
There should be an analysis of the internal environment of the marketing department. It
would be also necessary to analyze the internal environment prevailing in the
organization. Internal marketing analysis (audit) would reveal strengths and weaknesses
of the marketing department and the marketing efforts of the firm.
External Situation Analysis
The marketing manager must also conduct external marketing audit. The external
marketing audit is conducted to analyze:
The competitors' position and their strategies
The likes and dislikes of consumers.
The demand in the market, the government policies affecting the industry, etc.
Establishing Marketing Objectives

After conducting the marketing audit (situation analysis), the marketing manager must set
the objectives. Marketing objectives are set in all key areas of marketing. Such key areas
include sales volume, market share, profit, area coverage, innovation and productivity.
Developing Marketing Strategies
The marketing strategy is a broad plan of action for using marketing resources to meet
the marketing department's objectives. The marketing objectives states as to where the
firm would like to go or what it wants to achieve; whereas marketing strategy tells us
how to go there or how to achieve the objectives. Thus marketing strategies are framed
keeping in mind the objectives.

BANK MARKETING
DEFINITION
“Bank marketing is the aggregate of functions, directed at providing
services to satisfy customers financial (and other related) needs and wants, more
effectively and efficiently than the competitors keeping in view the organizational
objectives of the bank.”
-by the NIBM, Pune
The definition highlights the following points:
1. Bank provides services – with all the functions being associated with them.
2. Aim is to satisfy customers’ needs and wants.
3. The needs and wants of the customer are by far financial in nature and some may
be even incidental to or related to the main function
4. The competitive element, efficiency and effectiveness are major factors in the
process.
5. Organizational objectives are still the driving force.
The aggregate of functions mentioned in the definition, is the sum total of an integrated
effort to discover, create, arouse and satisfy customer needs. Each individual working in
the bank is marketing person who contributes to the total satisfaction of customers.

WHY BANK MARKETING?
“Awareness among customers”
Modern technology has made customers aware of the developments in the economic
environment including the financial system. Financial needs of the customer have grown
multifold into various forms of quick cash accessibility, money transfer, asset security,
increased return on surplus funds, financial advice, deffered payments, etc. with a wide
network of branches, even in a dissimilar banking scenario, customers expect the banks
to offer more and better services to match their demands and this has compelled banks to
take up marketing in right earnest.
MARKETING APPROACH IN BANKS
With the need for marketing in banks having evolved out of the changing
environment and constant interplay of various interdependent factors, the importance of a
systematic approach to marketing cannot be overstressed. The application of a marketing
approach in banks will therefore involve:
1. Identifying customers financial needs and wants
2. Developing appropriate banking services to meet these needs.
3. Pricing for the services so developed.
4. Setting up suitable outlets/bank branches.
5. Advertising to promote the services to the existing as well as prospective
customers

6. Forecasting and market research to assess the future financial markets.
In order to achieve the desired results, marketing as a philosophy would require, in
addition the total commitment of top management, the involvement and dedication of
every employee in the organization.
PRINCIPLES OF BANK MARKETING
 Understanding the customers
The concept of bank marketing is well supported by information technologies. In an
age of information technology, the banking services depend substantially on the
marketing information system. With the help of different systems and to be more
specific with the instrumentality of marketing research, the bankers get an
opportunity to study and understand the changing levels of expectations of customers
like their lifestyles, likes and dislikes, preferences, attitudes or the behavioural profile
because it can not remain same. If the professionals make the emerging changes in a
right fashion, the marketing decisions can be made accurately.
 Satisfying the customers
In almost all the organizations, the first and foremost task is to satisfy the customers.
If we understand the customers in a right prospective, the success rate reaches at its
peak. If the marketing processes help in understanding the customers, the task of
satisfying them is found easier. The formulation and innovation processes of the
marketing mixes move in a right and desired order. The customers get the services in
tune with their changing requirements, which help banks in expanding the market,
increasing the market share, profitability and activating the process of mobilizing the
savings and deposits.
 Excelling competition

The modern marketing principles are conceptualized in the banking organizations
also with the motto of excelling competition. The leading foreign banks have made
the business environment so competitive that the task of excelling competition is
found difficult to the public sector commercial banks. The public sector banks would
find it easier to excel competition if they practice marketing and keep on moving the
process of innovation. It is important to mention that the leading foreign banks have
been found promoting the use of new technologies to improve the quality of their
services but the public sector commercial banks have been facing strong opposition of
trade unions on that account.
Formulating and innovating the mixes
We can't negate that the quality factor assumes a place of outstanding
significance, especially in getting the new business vis-à-vis retaining the old
one. The private sector banks have been found promoting consumer financing
in tune with the emerging trends in consumerism but the public sector
commercial banks have not assigned due weightage to this dimension in their
service mix. This makes it essential that while formulating or innovating the
product mix they assign an overriding priority to the peripheral services since
the core services in almost all the banks are by and large the same.
While promoting we need to use sophisticated technologies and the cooperation
of advertising professionals to make the process creative. While setting fees,
rate of interest or commission, the public sector commercial banks need to go
through the strategies followed by the leading competitors. We also need due
weightage to the development of people since the personally committed human
resources are found efficacious in solving the numerous problems. The
recruitment and training facilities, the organization of refresher and capsule
courses, the incentive plans the performance appraisal are some of the important
dimensions influencing the quality of human resources.

THE USERS OF BANKING SERVICES
The users/customers constitute a place of outstanding significance. The line of
services, the planning and development of services, the offering of services, the
pricing strategies or the interests charged for the services made available and the
promotional strategies depend substantially upon the nature and type of users
using the services of an organization. It is against this background that a study
of different categories of users is found significant.
The emerging trends in the level of expectations affect the formulation of
marketing mix. Innovative efforts become essential the moment we find a
change in the level of expectations. Yesterday, the users did not expect fast,
decent services but today they expect. Yesterday, the consumer financing was
not so much important but today, the banks appear to think about the same on a
priority basis. Yesterday, the industrial users did not expect credit facilities on
liberal terms and conditions but today, they expect. These changes make it clear
that the level of expectations contain dynamism vis-a-vis influence the
marketing decisions.
We find three types of customers using the services of banks, they are
1) General Users:

Persons having an account in the bank and using the banking facilities at the
terms and conditions fixed by a bank are known as general users of the
banking services. Generally, they are found small sized customers.
2) Industrial Users:
The industrialists, entrepreneurs having an account in bank and using the
credit facilities and other services for the establishment and expansion of
their business are known as industrial users. Generally, they are found large-
sized.
3) Prospects:
It is also essential to clarify the term, 'Prospects! The general or industrial
prospects do not use the banking services at present but they have potentials to
become a customer if induced or motivated in a right fashion.

MARKETING MIX FOR THE BANKING ORGANIZATIONS
It is a process of formulating the different mixes for the banking organizations,
such as the product mix, the promotion mix, the price mix, the place mix, the
people, the physical attractions.
The formulation of marketing mix for the banking services is the prime responsibility of
the bank professionals who based on their expertise and excellence attempt to market the
services and schemes profitably. The innovative efforts of the professionals become
essential to make the services internationally competitive.
The needs and requirements, the likes and dislikes, the preferences, the attitudes, the
expectations and the lifestyles can't remain static. There are a number of factors
influencing the process of change. Innovation makes the ways for perfection, which helps
banks substantially in maximizing profitability and establishing leadership.
Marketing mix for the banks includes following:
• Product Mix
The product mix focuses on the different services to be included in the product
portfolio so that the banking organizations successfully manage the present and
future.
• Promotion Mix

In the promotion mix for the banking organizations, they go through different
components of promotion, such as the advertising, publicity, sales promotion,
personal selling, word-of-mouth promotion and telemarketing.
• Price Mix
In the price mix for the banking organizations, they go through the problems
related to the payment of interest, fee and commission.
• Place Mix
In the place mix, bank focus on the problem of location of a bank branch and the
problem of offering of the promised services to the end users.
• People
In the people, banks go through the problem of developing professionally sound,
value-based and personally committed bankers.
• Physical Attractions
In this context, banks go through the problem of developing and maintaining
physique to add attractions in the personality of bankers. This focuses on personal
care services to make your physique sound

MARKET SEGMENTATION
Market segmentation is the grouping of customers or strategy of dividing market in
order to conquer them. It helps in making and innovating the marketing decisions. It
is against background that the market segmentation assumes a place of outstanding
significance particularly in the banking organizations. The bank professionals have to
segment the market in such a way that the expectations of all the potential customers are
studied in a right perspective and the marketing resources are developed to fulfill the
same. The marketing efforts can be made more proactive if the process and bases of
segmentation are right. Since the banking organizations serve different sectors and
segments, the segmentation should be done carefully.
We can’t deny that market segmentation makes it easier to formulate a sound
strategy. Since the bank professionals are aware of the changing needs and
requirements of a segment, the marketing resources can be developed in tune with
the n and requirements of a segment. The formulation of a package is found
significant and the bank professionals can do it successfully on the basis of market
segmentation. The promotional measures can be sensitised in the face of the
receiving capacity of a particular segment. The pricing strategy can be made
operational and the sales promotion measures can be made productive.

UNION BANK OF INDIA
Inaugurated by father of the Nation at the onset of 20th century, Union Bank of India has
traversed the long road of successful Banking of 85 years. The bank traces its origin to
the profound thoughts of Mahatma Gandhi -- "We should have the ability to carry on a
big bank, to manage efficiently crores of rupees in the course of our national activities.
Though we have not many banks among us, it does not follow that we are not capable of
efficiently managing crores and tens of crores of rupees."
The Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of
India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and
Follow on Public Offer in February 2006. Presently Institutions, Individuals and Others
presently hold 44.57 % of Share Capital. Since its inauguration by Mahatma Gandhi in
1919, the Union Bank of India has grown to become one of the country’s largest public
sector financial institutions. With annual revenue of more than INR 6,000 crore
(approximately US$1.3 billion), the bank is more than fulfilling Gandhi’s directive that
India “should have the ability to carry on a big bank, to manage efficiently crores of
rupees in the course of our national activities.” The Union Bank of India now operates
more than 2,000 branches across India, administered by approximately 80 offices,
including 43 regional offices.
Union Bank of India is committed to maintain its identity as a leading innovative
commercial Bank, alive to the changing needs of the society. Union Bank has offered
vast and varied services to its entire valuable clientele taking care of their needs. Today,

with its efficient customer service, consistent profitability & growth, adoption of new
technologies and value added services, Union Bank truly lives up to the image of,
“GOOD PEOPLE TO BANK WITH”. Anticipative banking is an integral ingredient of
value-based services. This ability to gauge the customer's needs long before he realizes,
best reduces the gap between expectations and deliverance.
The Bank has over the years earned the reputation of being a techno-savvy Bank and is
one of the front-runners amongst public sector bank in the field of technology. It is one of
the pioneer public sector banks, which launched Core Banking Solution in 2002. As of
September 2005, more than 750 branches/extension counters of Bank are networked
under Core Banking Solution, powered with the centralized technology platform, the
Bank has launched multiple Electronic Delivery Channels and has installed nearly 505-
networked ATMs. Online Tele banking facility is available to all its Core Banking
customers. The multi facility versatile Internet Banking Solution provides extensive
information in addition to the on line transaction facility to both individuals and corporate
banking with the Core Banking branches of the Bank. In addition to regular banking
facilities, today customer can also avail variety of value added services like cash
management service, insurance, mutual funds, Demat from the Bank.
The Bank continues its endeavor in providing excellent services to its customer
and enhance its businesses thereby fulfilling its vision of becoming “THE BANK OF
FIRST CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND
LASTING RELATIONSHIP WITH CUSTOMERS THROUGH A PROCESS OF
CONTINUOUS IMPROVEMENT”.

VISION OF UNION BANK OF INDIA

MISSION OF UNION BANK OF INDIA

A logical extension of the Vision Statement is the Mission of the Bank, which is to gain
market recognition in the chosen areas.
 To build a sizeable market shares in each of the chosen areas of business through
effective strategies in terms of pricing, product packaging and promoting the product
in the market.
 To facilitate a process of restructuring of branches to support a greater efficiency in
the retail banking field.
 To sustain the mission objective through harnessing technology driven banking and
delivery channels.
 To promote confidence and commitment among the staff members, to address the
expectations of the customers efficiently and handle technology banking with ease.
ORGANISATIONAL STRUCTURE

List Of Regional Offices Bank has a lean three-tier structure. The delegated powers have
been enhanced. The decentralized power structure has accelerated decision making
process and thereby Bank quickly responds to changing needs of the customers and has
also been able to adjust with the changing environment.
Bank has five General Manager Offices at Ahemedabad, Lucknow, Delhi, Mumbai,
Calcutta and Chennai which function as an extended arm of corporate office. It also has
two Zonal Offices at Bhopal and Pune. Tier 3 comprises of 43 Regional Offices at
various geographical center of the country.
PRODUCT PORTFOLIO OF UNION BANK OF INDIA

 MULTI GAINS CURRENT ACCOUNT SCHEMES
 Union Bank of India offers 'Multi Gains Current Account’ scheme to the existing
as well as new current account holder.
 The scheme offers a host of value added services at no extra cost.
 Average quarterly balance of just Rs. 1.00 lac.
 Domestic individuals, firms and NRIs eligible for this scheme.
 At par payments in 112 cities through Multi City cheque facilities.
 The value added services being offered to the account holders of CBS (Core
Banking Solution Branches, i.e. branches interconnected with each other) and
Non-CBS (i.e. Branch other than the one where account is opened) branches are
as under: -
1) Free demand draft on CBS branches.
2) Free collection of outstation cheque.
3) Two free cheque books of 100 leaves during a financial year.
4) Free collection of cheque deposited at non-base branch
5) Free transfer of funds between CBS branches at the base branch center.
6) Free cash withdrawal
7) Free delivery of statement of account once in a month
 UNION FLEXI-DEPOSIT
 A savings deposit scheme coupled with the benefits of a fixed deposit.
 Minimum balance of Rs. 5000.

 Surplus funds over a predetermined amount transferred to a fixed deposit account.
 Fixed deposit tenure between 46 days to 5 years.
 Minimum fixed deposit for Rs. 5000 and in multiples of Rs.10000 i.e. Rs.6000,
Rs.7000, Rs.8000, etc.
 Interest will be paid quarterly.
 All individuals, singly or jointly and non-resident Indians can open the account.
Cheques book/ Pass book
• Cheque book in Savings Bank Account.
• Automatic two ways transfer of funds from fixed deposits to savings account and
vice versa.
• Specially designed combined passbook/ statement of account for SB and FD.
BENEFITS:
• Free International Debit Card (Only in selected cities).
• No penalty on premature withdrawal.
 UNION HOME
 Purpose -- Purchase, Construction of house, Flat or second house of bigger
Accommodation.
 Eligibility -- Salaried persons, self-employed in business or professional having
regular source of income are eligible.
 Quantum -- Maximum of Rs. 50 lac. No upper limit in major Metro cities.
 Margin -- 15% for purchase/ construction/ repairs/ purchase of plot.

 Repayment -- Up to 20 years with EMI, under Union Awas Maximum 15 years.
 Rate of interest -- Lowest, competitive and attractive rate of interest.
HIGHLIGHTS -- Loans also available for second House, Free Credit card, Flexible
Repayment Schedule, Easy and Convenient EMI. Free
Insurance, Insurance cover for borrowers under our
UNION HOME PLUS Scheme.
 VEHICLE LOANS
 Eligibility -- Firms/Companies/Permanent employees of Public/Reputed Private
sector / Professional/ Businessmen.
 Purpose -- Purchase of new 2 wheeler /old or new 4 wheeler.
 Quantum -- 3 times of net income /net annual salary.
 Margin -- 20% for new and 50% for vehicle. 10% wherever Tie-up arrangement.
 Repayment -- For 4 wheeler 60-84 EMI & for 2 wheeler 36-60 EMI, 36-84 EMI
under Tie-up arrangement.
HIGHLIGHTS -- Loans available for old vehicles, lowest EMI on daily reducing
balance, Firms/ Companies avail loans.

MARKETING FORMULA OF UNION BANK OF INDIA
Union bank of India makes the marketing of its products through Advertising, Sales
promotion, Personal selling, Publicity, Internal communication, Concept of moments of
truth. The Bank uses the various media available to reach the customers through these
channels.
Union bank of India makes the marketing of its products through:-
 Advertising
 Sales promotion
 Personal selling
 Publicity
 Internal communication
 Concept of moments of truth
♦ ADVERTISING
The Bank advertises through mass media, paid communication (presentation and
promotion) of goods, services or ideas by an identified sponsor. Advertisements appear in
media such as newspapers, magazines, radio, television, cinema, ad-film, hoardings,
posters direct mail, etc.
The Objectives of Advertising the product are:
1. Product Promotion
a) New Product

b) New Uses of Existing Product
2. Enabling Personal Selling
3. Developing Brand Loyalty
4. Dealer Support
5. Facilitate Buying Action
6. To Stimulate Inquiries
7. To Build Corporate Image
8. To Inform Changes in Price (Interest Rate), etc.
Advertising is thus a very effective tool of promoting products to establish and maintain
brand loyalty. It is said that nothing, except mint, can make money without advertising.
Advertising is to a business what electricity is to industry. It is the backbone of the
marketing process.
♦ SALES PROMOTION
The main aim of any business is to earn maximum profit and this is possible only through
maximum sales. The bank makes use of direct mail, catalogues, trade shows, sales
contents, premiums etc. Sales promotions are used by a wide range of organizations in
both the consumer and business markets, though the frequency and spending levels are
much greater for consumer products marketers. The main difference between advertising
and sales promotion can be described as - whereas the advertising moves the consumer to
the product; sales promotion moves the product to the consumer.
♦ PERSONAL SELLING
Sales promotion also can be done through personal selling. In banks, the clerk at the
counter is the primary contact point with both existing and potential buyers (customers).
Well-informed and well-trained staffs at the counter are eager to explain the schemes to
the customers. Proper communication process can ensure successful sales promotion
through personal selling, within the branch, across the counter.

The pro-active approach of the staff and projecting a harmonious image of the bank
taking keen interest in customers' interest can do wonders to boost the image and increase
business of the bank.
♦ PUBLICITY
'Publicity' is a generic term used for wide range of activities ranging from antics of stars
in films or media to genuine methods of getting a product, service or even an
organization (or even an individual 'talked about' and more widely known to the public).
The publicity differs from Advertising not in its aim but in its technique/s. whereas the
latter has a more specific job to do, i.e. inform and motivate publicity seeks to interest
and draw attention, without essentially motivating or informing the public.
Publicity can be good or bad. With high customer expectations and presence of various
consumer councils these days it is just possible that a branch of a bank can get wide bad
publicity for some mistakes/flaws or inadequacies in giving service.
The publicity handouts or press releases are the common form of publicity. Such a press
release must
 Give specific facts
 Not give any sales promotion suggestion
 Be accompanied by photographs
 Be prepared/sent well in advance of the function/event.
Publicity normally is not paid for by the organizations. It comes through good liaison
with press reporters, journalists and column writers. Good public relation strategy (P.R.
strategy) usually compliments publicity to boost the bank's image.
Publicity does the job of reducing ill-effects of bad news and also positive effects of good
news if properly backed by proper public relation.

♦ INTERNAL COMMUNICATION
In order to supplement such external communication measures, the bank also have
internal communication strategies in the form of an Annual Budget or business and
corporate plan which spells out its goals, objectives and targets during the financial year.
For such a budget or business plan, Head Offices of the bank assess the business targets
of various branches, divisions, zones and regions in the past with reference to the
achievement rate (of deposits and advances targets) and the market shares vis-à-vis
branches of other banks in that command area. Field Managers, Planning Officers and
P.R. or marketing specialists assist in this function to assess the projected levels of
business at micro (branch) and macro (corporate) levels.
The success of such an exercise largely depends on the realistic assessment of past data
and realistic targets set. The utilization of positive strokes and empathy in the top-bottom
communications ensures positive feedback/response from bottom to top.
The response and involvement by each level in deciding/accepting and implementing
business plan decides the success of such an important internal marketing
communication.
Besides business plan exercise, internal communication also involves:
• House Journals
• Circulars
• Corporate objective/Business plan booklet
• D.O.letter – for encouragement/ appreciation
• Posters, etc.
♦ CONCEPT OF MOMENTS OF TRUTH

Under promotion, it can be crystal clear that any exercise and strategy in bank marketing
is focused around only one person and, i.e. "CUSTOMER" -his needs and wants.
The customer is a person who buys our products or services. For an organization there are
two types of customers-Internal, i.e. the workforce or employees and External, i.e. the
customer. A customer is thus anyone who receives a product or service from us.
'Caring for Customers', therefore, becomes the focal theme of any marketing strategy.
'Customer Care' is a complex service of relationship between customer and bank. A
successful outcome of such interactive relationship leads to customer satisfaction.
Moments of Truth (MOT)
Anytime we deal with a customer, it is a moment of truth. It can occur in three ways:
I. Face to face
II. Over telephone
III. Through written communication/correspondence
In type (1), i.e. Face to face (MOT) it can happen in any of the following ways:
 With external customer - our organization
 With external customer - our division/department
 With anyone - even ourselves
Each contact with a customer becomes a Moment of Truth. If we try to do something
extra every time by setting measurable standards and monitoring them each moment
without giving any chance for dissatisfaction or complaint, it becomes the best service we
should always put ourselves in customers' shoes which requires lot of empathy but surely
enables to give our best for better customer service which is the soul of marketing of
banking services.

It follows a 4-pronged attack on its market base. In this four pointer scheme, it
uses the different media available to get to its customers and make the products &
bank easily available to them. The 4 – point attack is as below:
MARKETING THE PRODUCTS
Union Bank of India has more than a dozen products available for its customer
base, which is over & above the regular services offered to the customers. The
products are marketed by way of:
♦ Media advertising – The Bank has advertisements appearing in the Print,
Television & Radio networks. The famous byline of the ads of the bank is
“Good people to bank with”.
♦ Direct mail – A mailing list of customers is prepared by the bank. Letters,
leaflets, folders and catalogue are sent to them through mail to inform them of
the details of the product.
♦ Press release – Through press release they make people aware about their new
products and changes in their existing products. This is done through
newspapers, business magazines etc.
♦ Application information – It is the information which a customer or the
person who is going to receive the services of the product provided by the
bank.
♦ Documentation - To receive the services of the product provided by bank the
customer has to fill some application forms which are usually enclosed with
ration card, pan cards etc.
♦ Trade shows – The bank usually conduct trade shows to advertise or to make
customers aware of the newly launched products. These trade shows are
conducted through the medium of fairs and promotions.

♦ Catalogs – The bank uses catalog to make customers aware of their products
and the services provided by them through the medium of brochures,
pamphlets etc.
♦ Articles – The bank provides articles which show their current position and
their activities. This is usually provided through the medium of newspapers
and business magazines.
♦ Sales guide – The sales person of the bank guides the customer with detailed
information about the product. He also solves the queries of the customer
regarding the product or services provided by bank.
MARKETING THE CONCEPTS
♦ Media relations – The bank maintains good relations with the media as they
have to advertise to make people aware about them and to make people aware
of the services rendered by them.
♦ Press releases – It is the source of providing information to the customer
regarding the services or the product provided by the bank.
♦ Articles – It is also one of the source of providing information regarding the
product services provided by the bank. The bank market their products through
various articles in newspapers and magazines.
♦ Sponsorships – The bank provides sponsorships to organizations to make
aware about the services provided by them.
♦ Advertising – advertising plays a key role in marketing the product services in
the market. Bank usually advertises through television, radio, hoardings,
pamphlets etc.
♦ Investor relations – The bank maintains good relation with their investors.
♦ News letter/ magazines – The bank uses magazines and different news papers
to market the newly launched concepts.

MARKETING SALES TO PROSPECTS
♦ Presentations -- The bank conducts presentations in small scale. It is usually
conducted among the internal management of the bank. This is done to
provide knowledge to internal staff.
♦ Seminars – The bank conducts seminars on a large scale. It is usually
conducted to provide information to the people about the product services
rendered by the bank.
MARKETING CUSTOMER PARTNERSHIP
♦ Communication - Personalized customer communications, based on data in a
database, can be shown (using tests and controls) to increase customer retention,
loyalty, cross sales, upsales and referrals. They are effective. They are the main
reason you build a marketing database.
♦ Future direction – The bank promises its customers that they will try to
provide better services to its customers in near future.
Challenges facing Union Bank of India
The Union Bank of India is undergoing a major transformation due to changes in
economic conditions and continuous deregulation. These multiple changes
happening one after other has a ripple effect on a bank trying to graduate from
completely regulated sellers market to completed deregulated customers market.

 Deregulation: This continuous deregulation has made the Banking market extremely
competitive with greater autonomy, operational flexibility, and decontrolled interest
rate and liberalized norms for foreign exchange. The deregulation of the industry
coupled with decontrol in interest rates has led to entry of a number of players in the
banking industry.
 New rules: As a result, the market place has been redefined with new rules of the
game. Banks are transforming to universal banking, adding new channels with
lucrative pricing and freebees to offer. Natural fall out of this has led to a series of
innovative product offerings catering to various customer segments, specifically retail
credit.
 Efficiency: This in turn has made it necessary to look for efficiencies in the business.
Banks need to access low cost funds and simultaneously improve the efficiency. The
banks are facing pricing pressure, squeeze on spread and have to give thrust on retail
assets
 Diffused Customer loyalty: This will definitely impact Customer preferences, as
they are bound to react to the value added offerings. Customers have become
demanding and the loyalties are diffused. There are multiple choices, the wallet share
is reduced per bank with demand on flexibility and customization. Given the
relatively low switching costs; customer retention. calls for customized service and
hassle free, flawless service delivery.
 Misaligned mindset: These changes are creating challenges, as employees are made
to adapt to changing conditions. There is resistance to change from employees and the
Seller market mindset is yet to be changed coupled with Fear of uncertainty and
Control orientation. Acceptance of technology is slowly creeping in but the utilization
is not maximized.

 Competency Gap: Placing the right skill at the right place will determine success.
The competency gap needs to be addressed simultaneously otherwise there will be
missed opportunities. The focus of people will be on doing work but not providing
solutions, on escalating problems rather than solving them and on disposing
customers instead of using the opportunity to cross sell.
Strategic options with other banks to cope with the challenges
Leading players in the industry have embarked on a series of strategic and tactical
initiatives to sustain leadership. The major initiatives include:
 Investing in state of the art technology as the back bone of to ensure reliable service
delivery
 Leveraging the branch network and sales structure to mobilize low cost current and
savings deposits
 Making aggressive forays in the retail advances segment of home and personal loans.
 Implementing organization wide initiatives involving people, process and technology
to reduce the fixed costs and the cost per transaction
 Focusing on fee based income to compensate for squeezed spread, (e.g. CMS, trade
services)
 Innovating Products to capture customer ‘mind share’ to begin with and later the
wallet share
 Improving the asset quality as per Basel II norms
Transformation initiatives needed for bank
The ECS value proposition for helping banks in their transformation agenda

We at ECS Limited have vast experience in partnering with leading players in banking
for addressing these challenges in a holistic manner. Our expertise is reflected in our
product offerings for addressing the key challenges. A select few are outlined below:
♦ Strategy
• Sales & Marketing strategy for both retail & wholesale banking
• Expanding geographies
♦ Brand
• Understanding the values of the brand
• Repositioning the brand to communicate the values
♦ Organization restructuring
• Re organization of the bank in line with the strategic thrust
♦ Re engineering of the key business processes
• Redesign of Sales processes to increase conversion ratio
• Six Sigma process improvements for branch channel, Call Center & back office
processes
• Centralization of branch operations and deferred processes to free up resources
♦ Cost efficiency
• Reduction in Total cost of acquisition
• Reduction in Transaction costs
• Reduction in fixed and overheads cost

♦ Right sizing and matching of skills
• Manpower modeling for branch & back office at various volume scenarios
• Productivity improvement for sales & service functions
• Competency Assessment & profiling
♦ Creating a high performing organization
• Define new roles & responsibilities, KRA
• Assessing competencies of people across levels and match the position with the
skill set
• Designing and implementing a new PMS for restructured organization
♦ Change management & creating a new mind set
• Developing critical mass of champions and drive ‘Change’ across the
organization to move from conventional banking to new age banking
Image makeover on at Union Bank
Thiruvananthapuram: A business, organizational and process makeover is on at the
Union Bank of India, which is likely to be capped by an extensive re-branding exercise
during the final stages of implementation.
The made over 88-year-old public sector bank will be unveiled by March - April 2008, in
tome for the new financial. The most visible change will be the new logo, which will be
accompanied by a comprehensive corporate communication strategy.

The Boston Consulting Group has been appointed as advisor to the bank for its business
and process re-engineering efforts, the most immediate impact of which will be felt in the
form of a renewed focus on the retail, SME and agri-business sectors.
Back office processes such as clearing, account opening, cheques book issuing and
dispatch of account statements are slated to be spun off from branches to centralized
back-offices.
The bank has set up a centralized data centre in Mumbai, with an onsite back-up server
and an offsite mirroring facility in Bangalore. Almost half of the bank's branch network
has completed migration to this core banking platform, with the remaining expected to
follow suit over the next few months.
Excerpts of Interview with Mr. Mahadik, Customer Relationship
Manager, Borivali branch, Union Bank of India
1) What is Strategy?
A strategy is a plan of action designed to achieve long term objectives of a firm.
2) What is Marketing Strategy?

Marketing strategy is a technique, which the bank introduces to study and cope up with
market changes. Strategy is the all-important part of marketing. The one time planning
determines where the bank is and in the strategy will followed many more important
things which is analyzed and realized from the market at regular intervals. In other words
marketing is a generic term used for the communication efforts of the firm that are
directed towards achieving the objectives of a marketing strategy.
3) Importance of marketing strategy in banking sector?
The marketing strategy plays very important role because it helps to Attain Marketing
Objectives, Identify Market Segments, identify Major competitors, Identify the
Competitive Advantage, Helps to Minimize Risks, etc.
4) What are the steps followed in strategic marketing planning?
• Defining Business Mission.
• Internal Situation Analysis.
• External Situation Analysis.
• Setting of Marketing Objectives.
• Developing Marketing Strategies.
5) How UBI market their different products?
Union bank of India makes the marketing of its products through
Advertising
Sales promotion
Personal selling
Publicity
Internal communication
Concept of moments of truth
6) What are the different Medias used for marketing?
The medias that are used for marketing is divided in to two and they are as follow:

Indirect media
Indirect media includes
Press media
Visual media
Web media
Radio
Direct media
Direct media includes
Cards
Sale letters
Circulars
Book lets
Folders
Calendars
Diaries
House organ
7) What is the relevance of Advertising in Marketing Strategy?
Advertising is a very effective and most frequently used promotional tool in marketing of
banking services.
The success of Advertising reflects in the business figures like Deposits, Advances,
Profitability, etc.
Effective Advertising is the technique of creative communication. It ensures co-
ordination and application of various batches of the art and profession to achieve a pre-
determined end, i.e. to communicate a message to the public in general or to the desired
segment of public/market in particular.
Advertising serves as a ‘mouthpiece’ for the organization’s objective to be made public.

CONCLUSION
So, I would like to conclude by saying that the marketing of service sector products is of
core importance. No product or service can establish or get his share of market without
marketing. Today, bank in India have to face tough competition among themselves to
survive in the globally competitive market. They have to strictly abide by the proverb
“Survival of the fittest”

The marketing strategy adopted by the Union Bank of India seems to be good but not
sufficient if it wants to be the contender of India’s best bank in terms of sales and profit,
with banks like State Bank of India and Bank of Baroda marketing their products
effectively and aggressively. It has become imperative for the Union Bank of India to
market its products and services aggressively and also efficiently. State Bank of India and
Bank of Baroda have charged their image and attitude in order to face the challenges
posed by the global banking sector.
Due to globalization and liberalization, even foreign banks are allowed to set up their
branches in India. Thus, Indian banks not only have to face competition between
themselves but also from their foreign counterparts. In order to make its presence felt in
the masses, it has become mandatory for Union Bank of India to revamp its marketing
strategy to face other Public sector banks, Private sector banks and foreign banks.
BIBLIOGRAPHY
BOOKS REFERRED:
Marketing of Banking Services
Marketing and Finance – by Michael Waz & Vinayak Paralikar

WEBSITES REFFERED
 www.unionbankofindia.com

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