Research Design

INTRODUCTION
The change is the law of nature. It is also a law of marketing. Now, where, it is more obvious than in the field of marketing. Marketers can refuse to take notice of change only at their own cost. A successful marketer is the one who has the ability to Observe change and recognize and exploit the opportunity that it has to offer in the changing marketing environment. Every time a customer approaches your business, they arrive with exception it may be related to service offered or new product development In the group of services generating industries, we find banking services occupying a place of outstanding significance. We cant deny the fact that with development of economic activities, the banking sector could emerge as an industry. Banking industry plays a vital role in our Economic development. Bank act as catalyst in Indias planning efforts to bring about rapid, purposive, positive and significant changes in the development of agriculture and industrial sector. Marketing of bank services is considered as major services in the service industry, which is concerned with product, place, price,

promotion, and peoples decision in the changing socioeconomic and business environment. The quality of services can vary from customer to customer from day to day and producer to producer. The satisfaction index substantially influenced the quality of services made available to customer / users To create long term customer relationship by providing good services to customer is difficult a task to customer is difficult a task. A shift in psychology of investors and general customer has made obligatory on banks to from competitive marketing strategies, taking in to consideration so that researcher has selected the topic which is related to service marketing for his study. The Society was initially set up to help families in distress. Its objective was to provide temporary accommodation to its members in eventualities such as weddings of dependent members of the family, repayment of debt and expenses of medical treatment etc. The Society was converted into a full-fledged Urban Co-operative Bank in the year 1933.

The Bank has the unique distinction of being a witness to History. The Bank, which was originally founded in 1918, i.e. close on the heels of the Russian Revolution, also witnessed as a Society and as Bank-the First World War, the Second World War, India's freedom Movement and the

glorious chapter of post-independence India. During this cataclysmic cavalcade of history, the Bank as a financial institution and its members could not of course remain unaffected by the economic consequences of the major events. The two wars in particular brought in their wake, paucities of all kinds and realities and stand by its members in distress as a solid bulwark of strength. The Founder Members and the later-day management's of the Bank continued to demonstrate their unwavering faith in the destiny of the common man and the co-operative movement and they encouraged the shareholders to save despite all odds.

SCOPE
A fresh wave of economic liberation and globalization has been sweeping most of the world since 1980s and India from 1990 onwards. Consequently the banking scenario also has been undergoing a transformation, especially with regard to competition technological advancement and innovation. The public as well as private sector has been found owing, managing and controlling the banking services. So the scope of the study is covers in following areas A shift in psychology of investors or general services or potential in the general have made it urgent that bankers accord over riding priority to the marketing management. To identify the needs of customers setting business development goals and marketing plans to meet them. Delivering quality services to customers is meant to initiate overall improvement in the behavior management.
Innovative and imaginative compellation has virtually outwitted

bank with regard to the mobilization of deposits

The offering of right services to the right persons or customers at

the right time at reasonable prices needs high professionalism.

LIMITATIONS
TIME FACTOR
Due to short span it was impossible to generate meaningful information.

RESPONDENTS ATTITUDE
a) Many respondents (bank customers) were found non-responsive.
b) Some respondents might not have given the correct information. This fact ultimately might have affected the outcome of the study.

INSUFFICIENT INFORMATION
Every business organization has some confidential and secrete information, which according to organizations own policy, cannot be released to anybody outsider. In consequences of the fact, the researcher also could not get such information which might have proved to be useful for the study.

PARTIAL COVERAGE
The study is limited only Sangli Branch for sampling basis.

INTRODUCTION
Change is natural phenomenon. Time cycle necessitates a change in perception because almost all of us dont venture to go against the wind. Gone are the days when the perception of service remained confines to work with only service motto without charging any fee or without accepting any obligation. Today, the services have been commercialized. Services sector is a new frontier for marketing strategy. No doubt the manufacturing sector contributed a lot a to the national economy but in now days services sector is emerging as a most import sources for increasing the national income for e.g. in uas more than 75% income comes from services sector. Considering the importance of services sector of the marketing of services become very essential for different types of services industry. E.g. Insurance, banking, Hotel industry etc. In 21st living of standard of the people is increasing and also increasing the level of exception of customers. Due to the liberalization, globalization, and privatization entry of the private sector in to services industry, has opened new vistas for the development of services generating organizations. As the consumer becomes more demanding, the intensity of competitions is found moving upward.

MEANING OF SERVICES
In common parlance the term cant be only personal services likes auto repairing, services of dentist, legal consultant and so on. This content of services is much wider. Definitions of services:

According to Kotler and Armstrong:A service is an activity or benefits that one party can offer to another that are essentially intangible and does not result in the ownership of anything its production may or not be tied to physical product.

According to Association:-

The

American

marketing

Services are Activities, benefits or satisfactions which are offered for sale are provided in connection with the sale of goods. It is clear that services are intangible in nature, activities, benefits or satisfaction. Their purchase doesnt result in ownership of something physical. Services can be distinguished from goods.
Performed by: Individuals :( baby sitter, domestic help) Machine: (vending machine, machine, ATM) Rendered for profit (Banks, airlines) Rendered not for profit (public hospitals &schools)

Services are an activated act deed performance effort.

Services

Directed to: Customers (man, woman etc) Customers possessions (money, property, car etc)

MEANING OF BANK

According to some authorizers the word Bank has been derived from the German word Banc which implies a joint stock firm it is believed that the Italians used the word banc Banc implying accumulation of money with joint stock firm. In Latin word Banque which means a bench upon which mediaeval European money lenders and money charges used to display coins. In the olden days the Jews in Lombardy transacted their business, on benches in market place. The both word Banc is believed to have originated from the Latin word Banque

DEFINATION OF BANK
A banker is one who in the ordinary course of his business honors cheque drawn upon him by person from and for whom he receives money and current account. -H.L. Hart. A banker is a dealer in debt his own and other peoples. -Crowther. A bank is financial intermediary a dealer in loan and debts. -Cairneross

WHO IS BANK CUSTOMER

A customer is one who has account banker or foe whom a banker habitually undertakes to act as such. Dr. Hart CUSTOMERS

A customer is the user either of goods or services provided by the producer as an act of Marketing. The users/customers play significant role in the business process. If there will no customers all the productive activities related either to products or services will have to be stopped gradually, and the business organization will start its decline. Hence, the study of different types of users, their behavior, their decisions, their needs, their satisfactions etc. has become very essential for any business organization. This study then helps in planning and development of services, offering of services, deciding pricing strategies and the promotional strategies and formulating overall marketing strategies. CUSTOMER SATISFACTION Continual fulfillment of customers need in a right manner, at right place, at right time and at reasonable cost is termed as customer satisfaction. Individuals and households by goods and services for personal consumption. They vary in age, sex, physique, knowledge, education, income, temperament and taste. These underlying factors create the response i.e. behavior of the consumer in market. Consumer then is motivated. Motivation is the underlying force of any human activity-a fundamental determinant of demand. Man is perpetual wanting animal

and therefore when one demand is fulfilled, another demand depend upon the following buying motives. And, when these motives are fully served as per need and requirement of the customer, he/she is happy with the product or service. This is called Customer Satisfaction.

CONCEPT OF SERVICE MARKETING Marketing function is to plan, promote i.e. develop policies for delivery of goods and services to the customers or end users. An individual or an organization having professional excellence can act as a provider of goods and services. While marketing, the providers are expected to satisfy and meet the needs of customers. When a buyer buys services offered by a service generating individual or organization in the service market, he buys the time, knowledge, skill or resource in the form of some product from the provider or supplier. Therefore, the application of marketing principles in the services sector is the main concept in the service marketing. The concept of marketing ones services is not an old age activity. This concept took birth only before 4-5 decades i.e. by the expiry of 1950s. before the considering the potential market needs, the procedures produced and Sales department sold. Satisfaction of customer needs and desires was thought to be immaterial. But since 1950 onwards customer satisfaction factor got much weightage. Customers also became aware of the money spent and the returns they received. So in order to create and retain customers, service. Generating organizations, individuals felt the need of certain policies and strategies for managing the selling of services

with quality assurance. This phenomena created qualitative improvements in rendering the services and it served well the interest of both the provider and the consumer. Therefore, the application of marketing principles in services selling is concerned with a scientific and planned management of services which simultaneously satisfies the provider and the user. Marketing a services is not easy and casual. It needs sharp attention while buying and selling the services. This knowledge, skill of buyers and providers, quality of offering the services, designing of the product mix, framing of pricing, promotional strategies, marketing information system are the significant components of services marketing.

CHARACTERISTICS OF SERVICES There are four commonly cited characteristics of services that make them different to market from goods: Intangibility, Inseparability, Variability and Perishability. INTANGIBILITY: Intangible means that which cannot be seen or touched. Intangible services are difficult to sell because they cannot be produced and displayed ahead of time. They are therefore harder to communicate to prospective customers. Apart from food & beverages provided by the hotels, all other offerings such as accommodation, catering etc are intangible & are experience-oriented, thus its difficult to convince the customer about the quality of these offerings. Marketers of hotel services can overcome this characteristic by stressing tangible cues like brochures, photos etc., that will convey reassurance and quality to the prospective customers. These tangible cues range from the firm's physical facilities to the appearance and demeanor of its staff to the letterhead on its stationery to its logo, recent facts & figures etc.

INSEPARABILITY: This characteristic is interpreted differently by different service marketing marketers, but all interpretations point out those special operations problems exist for the firm's managers. One interpretation of this term is the inseparability of customers from the service delivery process. In particular, many services require the participation of the customer in the production process.

In case of the hotel industry, customer has to be present for experiencing the services being offered.

This factor can be overcome by opening new branches/outlets, facilitating instant communication (through telecom), with the customers in case of any type of information/services needed during the stay in the hotel etc. VARIABILITY: The fact that service quality is difficult to control compounds the marketer's task. Intangibility alone would not be such a problem in customers could be sure that the services they were to receive would be just like the successful experiences their neighbors were so pleased with. But in fact, customers know that services can vary greatly. Even the same service provider has good days and bad days or may be less focused at

different times of day. Services are performances, often involving the cooperation and skill of several individuals, and are therefore unlikely to be same every time. This potential variability of service quality raises the risk faced by the consumer. In the hotel industry, different front-line personnel have different abilities. The variability of hotel and catering services would differ because of the distinct skills and behavior of the various personnel serving the customers. The service provider must find ways to reduce the perceived risk due to variability. One method is to design services to be as uniform as possible - by training personnel to follow closely defined procedures, or by automating as many aspects of the services as possible. A second way to deal with perceived risk from variability is to provide satisfaction guarantees or other assurances that the customer will not be stuck with a bad result. PERISHABILITY: The fourth characteristic distinguishing services from goods is their time dependence. Services cannot be inventoried, since they are performed in real time. And time periods during which service delivery capacity sits idle represent revenue-earning potential that is lost forever. Periods of peak demand cannot be prepared for in advance by producing and storing services, nor can they be made up for after the fact. A service

opportunity occurs at a point in time, and when it is gone, it is gone forever. This can present great difficulty in facilities planning. In the hotel industry, the accommodation provided can get perished if not booked or occupied on time. The service providers must developed alternative; counter seasonal service products to use slack capacity, although that has long been a common practice by goods marketers. Many service providers also control demand by requiring appointments. Some service firms keep on call frontline personnel who can arrive on short notice to meet the surges in demand, or cross train support personnel to assist with customer service during busy periods. The service providers must overmarket their services to avoid the perishability factor.

TYPES OF SERVICES Services play a vital role in economic activities of development. Oorothy Riddle has formulated a typical economic model which shows the flow of economic activity through three main sectors of economy. 1. Primary activities:Extracting services like mining, agriculture, farming, etc. Manufacturing Process etc. 2. Secondary:Industrial Services, etc.
3. Tertiary services a) Business services

Domestic services are as follows: :-Consultation, finance, banking.

b) Infrastructure services :-Communication, transportation c) Social/ personal services :-Restaurants, health care

d) Entertainment/public administration Education, Government administration.

WHAT IS BANK MARKETING

Selling of Bank schemes. Creating demand for bank products Finding out the customer needs Convincing and persuading the prospective consumer to bank with

the bank
Talking politely and faithfully to the customer Highlighting positive features of our bank and negative features of

our competitors
Deposit mobilization Offering prompt and proper services well in time to the customers Going out the branch office and to contact customers Creating and maintaining customers. Deryk weyer of Barclays

Bank has most comprehensively defined Bank marketing consists identifying the most profitable markets now in future, assessing the present and future needs of the customers, setting business development goals, making plans to reach these goals and managing the various services in context of changing environment in the market. This definition indicated need of formulation of overall marketing strategies which suit test, temperament and needs of the customers. Bank Marketing is a managerial process to social approach by which services are matched with markets.

Product

Product is a bundle of utilities consisting of product features and accompanying services. Bank services are viewed in terms of satisfaction they deliver and just things that are created with value.
1] Core product:-

Core product are essential all those products which defines what kind of business we are in. it is the fundamental benefits buys from the bank. E.g. Saving account, Current account, Cash credit facility, etc.
2] Formal product:-

Formal products are usually combination of two or more product and they have a strong marketing content in as much as they cater to some specific customer needs deposit schemes. E.g. Less Interest Rates, More returns on Deposits, etc.
3] Augmented produced:-

It us basically a formal product with some ancillary benefits attached to it. E.g. ATM, Debts cards etc.

Price

Pricing in banking related to the interested paid by the bankers on deposit, interest charged by the bankers on loan and drafts charges for various types of transaction and fees for certain services. In India banks adopt administered pricing structure to some extent as RBI prescribes the deposit and leading rate.

Promotion

Promotion refers to all the ways in which the products or services the marketing offering can be promoted to the target marketing and the communication method used in banks services marketing. Right from the stage of introduction of new product promotion plays an import role. The objective of promotion program are to inform about the new services product to the customer to remind the customer build the image of the bank.
The promotion mix includes following aspects:1] Advertising

Adverting in marketing is promise a promise of satisfaction to prospect that buys the services offers by the banks and who are willing to patronize with the bank.

2] Personal selling:

The personal selling is found instrument in promoting the banking business. We consider personal selling a process of informing customer. The patronize with the bank.
3] Sales promotion

More innovative the tools of sales promotion more positive are the result. When the banking organization offer new services and schemes. The tools of sales promotion is required to be innovated. This is with the motto of simulating the new and old customers. An important thing in the very const is the changing needs and requirements of the customers or prospects .the tools like gift, sponsorship of fairs and shows ,discount and commission, additional allowance to bankers are of the traditional nature.
4] Public Relations:-

All most all the organization need to develop and strength the public relations activate to promote their business. We find this component of the promotion mix effective even in the banking organizations.
Place:

This marketing tools deals with making the banking services available and accessible to the customer. The banking services are sold thought the branches and there are no intermediaries so the decision of the place mainly deals with suitable location for branches

People

Banking product cants be separated frame people who marketing them. The product and seller together constitute the banking product. In designing theirs product the same degree of care attention needs to be paid both product and seller.

Process-

It involves all activities right from the product conception stage to product design and development down to its marketing the branches level. It also includes the accounting procedure for putting thought transactions. Banks that were move focused on customer oriented services deliver. Improvement in the process steamer not only frame the automation of transaction accounting procedures and data handling but also process reengineering to reduce delays in processing transaction.

Physical evidences
It includes signage, reports, punch lines, other tangibles, employees

dress code, etc. The companys financial reports are issued to the customer emphasis or creditability.

 Signage:-

Each and every bank has its logo by which person can identify the company. It creates vizualisation and corporate identity of the banks. Tangibles:Banks give pens, writing pads to the customers.

BIBLIOGRAPHY
1] SERVICE MARKETING -S. M. Jha. 2] MONEY AND FINANCIAL SYSTEM -Dr. P. K. Deshmukh. 3] MARKETING OF BANKING SERVICES -Rajiv Seth 4] INVESTMENT BANKING AND CUSTOMERS SATISFACTION -C. R. Kothri. 5] SERVICE MARKETING -Vasnti Venugopal -Ragu V. N.