MARKETING STARTEGIES OF BANKS

1. IN THE NAME OF ALLAH
THE MOST BENEFICIENT
THE MOST MERCIFUL

3. What is marketing strategy?
A process that can allow an organization
to concentrate its resources on the
optimal opportunities with the goals of
increasing sales and achieving a
sustainable competitive advantage

4. MARKETING STRATEGIES
 Designed after taking into account the
strengths and weaknesses of the
organization.
 Market penetration
 Market Development
 Design new product range for their
customers of various segments

5. WHAT IS BANK MARKETING
“Bank marketing is the aggregate of
functions directed at providing services to
satisfy customers financial needs and
wants, more effectively and efficiently than
the competitors keeping in view the
organizational objectives of the bank.”

6. WHY BANK MARKETING NECESSARY
 Existence of the customer
 Win more and more customer
 Appropriate promise to a customer

7. PURPOSE OF BANK MARKETING
 Identifying the most profitable markets now
and in future
 Assessing the present and future needs of
customers
 Setting business development goals and
making plans to meet them
 Managing the various services and
promoting them to achieve the plans
 Adapting to a changing environment in the
market place.

8. MARKET SEGEMENTATION
The concept of market segment is based
on the fact that the market of commodities
are not homogeneous but they are
heterogeneous. Market represent a group
of customer having common
characteristics but two customer are never
common in their nature, habits, hobbies
income and purchasing techniques.

9. CRITERIA FOR MARKET
SEGMENTATION
 Identity
 Accessibility
 Responsiveness
 Size

10. TYPES OF MARKETING
External
marketing
Internal
marketing
Interactive
marketing

11. EXTERNAL MARKETING
 Consists of usual four ‘Ps’ of Product,
Price, Place and Promotion of marketing
mix
Product:
The products offered are the
services which includes various types of
bank accounts, different types of loans,
investment services, Credit cards, online
banking, mobile banking and many more.

12. PRICING
 Interest rates charged
 Transaction cost
 Value pricing
 Going rate pricing

13. PLACE
 It refers to the establishment and
functioning of a network of branches and
other offices through which banking
services are delivered.
 Objective is to get the right product ,at
right places at right time at the least
cost.
 Extensive branch network- access to
large section of people

14. PLACE
With the advent of technology other point
of contacts have come up. Such as:
ATM
Telephone banking
Online banking
Mobile banking
Video banking etc.

15. PROMOTION
 Advertising
 Publicity
 Sales Promotion
 Personal Selling
 Push and Pull Strategies

16. PROMOTION
 Public relation
 Word of mouth promotion
 Internet
 Tele marketing

17. INTERNAL MARKETING
 It involves the people(5th P) of the bank
i.e. the employees.
 Employees should also be treated as
internal customers, and sort of
marketing mix should be followed.
 Quality Human resource can be a point
of differentiation

18. INTERACTIVE MARKETING
 The quality of service provided during
the buyer-employee interaction.
 Efforts for previous strategies will turn
futile if the interaction does not takes
place satisfactorily.
It involves :
• Process (6th P)
• Physical evidence (7th P)

19. PROCESS
 Refers to the systems used to assist the
organization in delivering the service.
 Aids to the promotion of customer
satisfaction
 It involves:
Speeding delivery of services
Reducing the paper work
Standardization of procedures
Customization as per individual
demand simplicity etc.

20. PHYSICAL EVIDENCE
Physical evidence is the environment in
which the service is delivered and where the
firm and the customer interact and any
tangible commodities that facilitate
performance or communication of the service.
It include:
 Signage
 Reports
 Punch line
 Tangibles

21. Current marketing strategies
 Direct mailing
 Cold calling
 Offering items having your brand identity

22. Current marketing strategies
 Using the media
 Getting celebrities to endorse the
product or service.
 Sponsoring events

23. BRANDING
 Clients are more willing to pay a
premium price for strong brands.
 A strong brand simplifies client choices.
 Helps to retain customers.
 People are naturally attracted to firms
with strong brands
 It confirms your credibility.

24. POSITIONING
 Position of bank services
 Essential to communicate to customer
 Benefits relative to competitors
 Carefully analyze the competition

25. Challenges of bank marketing
 Technology
 Untrained Staff
 Rural Marketing
 Customer Awareness

26. Conclusion
Banking sector reforms have changed the
traditional way of doing banking business. Mainly
technology is the outcome of banking reforms.
Customer is now the king and customer focus or
satisfaction of customer is the main aim of the
banks. With the introduction of new products and
services competition has grown up among the
banks. Only those banks will survive who face the
competition with the effective ways of marketing.