Service marketing by banking sector

Service market by tilling orbit Service merchandisingNew and innovative manners of marketing run used by banking sectorIntroductionA bank is a financial institution authorize by a government. Its primary activities include borrowing and lending money.Banks no longer restricted themselves to traditional banking activities, but explored in the rawer avenues to increase problem and engender new market.-In the 1990s, greater emphasis being placed on engineering and innovation.-New concept like personal banking, retail banking, total branch automation, etc were introducedBanks activities advise be divided into retail banking, chain reactoring directly with individuals and small professiones business banking, providing services to mid-market business corporate banking, directed at large business entities private banking, providing wealth management services to graduate(prenominal) net outlay individuals and families and investment banking, relating to activities on the financ ial markets. Most banks atomic number 18 profit-making, private enterprises. However, both(prenominal) are owned by government, or are non-profit organizations.Banks offer numerous different channels to access their banking and other services-1- Bank branch2- ambience3- Mail4- Telephone banking5- Online banking6- Mobile banking7- Video bankingNew innovative method of marketing services used by banking sector1- E-banking-Enables people to deem out most of their banking deed using a safe website which is operated by their respected bank.2- Core banking- it include knowing node needs. Depositing and lending of money. Providing encumbrance banking solution.3- Corporate banking- it includes providing financial solution to large corporate and MNCs.4- Mobile banking- it helps in balance inquiry, fund transfer, cheque book request etc.5- malleable money-Plastic money are the alternative to the cash or standard money, it is convinent to restrain and generic term for all types of ba nk cards, debit cards, credit cards, reinvigorated cards.6- NRI banking-This facility is designed for diverse banking requirements of the vast NRI population spread across the globe.7- TOTAL BRANCH AUTOMATION-this is one of the latest towards paper less transactions, it is much customer friendly and flexible that has speed up bank transaction and with less error possibility.Marketing intermixture of banking sectorThe marketing mix of banking sector includes 7 ps that are explained below so that they drop get word their customers better and provide them good services.ProductsBANKS PRODUCTS(A) DEPOSITS Savings, Current, Fixed etc.(B) ADVANCESa) terminal figure Loan,b) Clean Loan, c) Bills Discounting, d) Advances, e) Pre-shipment Finance, f) Post-shipment finance, g) Secured and Unsecured lines of credit.(2) Non-fund oriented a) Guarantees, and b) Letter of attribute.(C) INTERNATIONAL BANKING a) Letter of Credit, and b) unusual Currency.(D) CONSULTANCY a) Investment Counsellin g, b) Project Counselling, c) Merchant Banking, and d) Tax Consultancy.(E) MISCELLANEOUS a) Traveller Cheques, b) Credit card, c) Remittances, d) Collections, e) Sale of Drafts, f) Standing instructions, and g) Trusteeship.Price-The price mix in the banking sector is cryptograph but the interest rates charged by the different banks.Lets understand this with an example. A particular buyer approaches for a car loan range for a period of 3 years. He is charged Rs. 20,000 as interest. but if a sales representative of another bank comes to know of this deal he will try to attract the customer by braggy him a better deal that is a loan at a lower rate on interest. In this way due to the high level of competition the customer benefits.PricingThis type of set is generally done by banks having unique or different products or schemes. They usually charge a combination of high and low prices depending on the customer loyalty as well as the products. This type of pricing dodge is usually coupled with promotion programmes.-Going rate pricing-Mark up pricingPlacePlace mix is the location analysis for banks branches. There are number a factors affecting the determination of the location of the branch of bank. alike(p) population characteristics, commercial, proximity of other commercial outlets.PromotionPromotion is naught but making the customer more and more aware of the services and benefits provided by the bank.The banks today can use a lot of new technology to communicate to their customers. Two of the exuberantest growing modern tools of communication with the customers are1. Internet Banking2. Mobile BankingProcessThe process mix constitutes the general procedure involved in using the services offered by the bank.Lets call in for example the process for application for a car loan.Now this primarily involves 3 things.1. Producing of proper documents2. Filling up of application form3. paying(a) for the initial down paymentPhysical differentiatePhysical evi dence is the overall layout of the place. How the entire bank has been designed. Physical evidence refers to all those factors that helps bring in the process much easier and smoother. For example in case of a bank the physical evidence would be the placement of the customer service executives desk, or the location of the place for depositing Cheques. It is very necessary the place is designed in such a manner so as to ascertain level best convenience to the customer and cause no confusion to himInterpretation and recommendationBanks are the most significant players in the Indian financial market.They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by populace sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare convey concept, public sector banks have long been the supporters of agriculture and othe r anteriority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. The Indian banking can be broadly categorised into nationalized (government owned), private banks and specialized banking institutions.The Reserve Bank of India acts a centralized system monitoring any discrepancies and shortcoming in the system.The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to pass on on the multifarious challenges of globalisation.-Banks that employ IT solutions are perceived to be futurist and proactive players capable of meeting the multifarious requirements of the large customers base.-Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as relevant like in any ot her marketing medium. Since for Indian banks globalization can be a good opportunity that they can sweat that will lead to increased revenue, size and scale.