CHAPTER NO.

INTRODUCTION OF THE
STUDY

[1]

A Comparative Study of Service Marketing Undertaken By SBI And

ICICI

Bank In Pune City

INTRODUCTION:-

Services all over the world, and especially in India, appear to have
come of age. The Indian economy, which was predominantly a goods - producing
economy till the early nineties, has taken a positive turn towards developing its
services industry. The scope of employment and that of the economic development
picks up speed as the economies travel from the production of tangible goods to the
creation of intangible services for the enhancement of wealth. Services thus are in
some way linked to the products and goods. In order to avail the benefit of services or
experience the services, a consumer will have to purchase and pay for the associated
goods.
With the increasing demand for improved services in banking sector
followed by entry of foreign players into India and the competition they posed, it did
not take too long for the Indian banks to realize that they will have to upgrade their
services leve for their own survival. The banking services sector in India has always
been very strongly entrenched into all segments, the commercial and rural more
significantly. The public sector banks have started arming themselves with the latest
technology innovations to give world class services to Indian customers. The
adoptability of services marketing is the best way to maximize the services to provide.
The concept of service marketing has been made different due to the
inherent nature of services, different approach, a new identification of additional
marketing mix and resolution of the key issues involved in the marketing of services
by service provider. A managing quality aspects of services marketing plays very
important role in todays world.

[2]

 OBJECTIVES:-

To learn the process of marketing services in SBI and ICICI bank.

To study market segmentation based on differentiated product.
To study the customer relationship management adopted by both
banks.
To study the strategies used by banks for marketing.
To study, whether marketing brand- ambassador is conducted or not
from both banks.
To study direct and indirect method of marketing services adopted by

both banks.

SIGNIFICANCE:-

In the todays world mostly peoples attracts towards that bank which
provides variety of services and cheaper services with attractive marketing of
services. Banking industry plays a significant role in both the global and domestic
economies therefore, it is significant to study the service marketing undertaken by
ICICI bank and SBI bank to decide which bank provide various services through
cheaper marketing to maintain high degree of customers satisfaction and attract
variety of class of peoples.
It is important to study the service marketing undertaken by both
banks to defined time standard, can go a long way in building customer loyalty and
confidence between customers towards uses of services of particular bank. One
objective of study is to educate the customers and to build a brand in respect of
service of a particular bank.

[3]

 SCOPE:-

Today, companies realize that they should not only concentrate on the
manufacturing sector but also offering a range of services to the customer, through marketing.
The banker sector in the service industry offers various services through marketing to attract
the variety of class towards the banking services.
Marketing concerns itself with understanding what customers want
and attempting to match these wants to the products or services that the service industry is
supplying. Today, the service industry plays a significant role in both the global and domestic
economies and they provide maximum attention towards marketing of services to attract
more customers. The service marketing creates confidence amongst the customer towards
knowledge about the services and to built a brand. There is a scope of high degree of
customers satisfaction towards various services offered by bank.
We have seen how HDFC bank in India has emerged as Indias best
bank in very short period of time. It has taken less than seven years for the bank to emerge as
Indias leading bank because of speedy service marketing.

HYPOTHESIS:-

Services are required to be made available to the customers in real

time and therefore marketing is the way to attract various customers from various
field. Service marketing is used to enhance customer loyalty and building brand in
customers mind.

LIMITATION:[4]

<1>

There are limited vision for comparative study of service marketing

Undertaken by SBI and ICICI bank.

<2>
<3>

The study is restricted only for two banks i.e. SBI and ICICI bank.
The study is based on information provided by the banks in pune city

only.
<4>

There is limited time for study of service marketing for both banks.

CONCLUSION:-

The achievements in communication techniques and e-trade gave rise

to many results for marketing practices and perceptions. But one of them is especially
important that occurred in banking sector in marketing. Today, marketing services are
of great emphasis on both customer and bank. The quality and quantity of banking
products increased and a result of this, recent developments in marketing thoughts in
services such as internal marketing, network marketing, data base marketing and
relationship marketing became more favorable practices.
It is important to compare the one bank with another bank on the basis
of service marketing to get the information about services and service providers before
deciding which one to use. It is important to see the customers preference and feedback
and to use that feedback to improve service marketing effectiveness in particular bank.

[5]

CHAPTER NO.2

COMPANY PROFILE

[6]

 COMPANY PROFILE OF SBI:-

The origin of SBI goes back to the first decade of nineteenth century with the
establishment of the bank of Calcutta in Calcutta on 2 June 1806.Three years later the bank
received its charter and was re-designed as the bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the government of
Bengal. The bank of Bombay (15 April 1840) and the bank of madras (1 st July 1843)
followed the bank of Bengal. These three banks remained at the apex of modern banking in
India till their amalgamation as the imperial bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence
either as a result of compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize Indias
economy. Their evolution was, however, shaped by ideas culled from similar developments in
Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economy framework.

Bank of Bengal H.O

[7]

The all India rural credit survey committee proposed the take over of the
Imperial bank of India, and integrating with it, the former state-owned or state-associated
banks. Subsequently, an Act was passed in the parliament of India in May 1955. As a result,
the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the
State Bank of India more powerful, because as much as a quarter of the resources of the
Indian banking system were controlled directly by the state. Later on, the SBI (Subsidiary
Banks) Act was passed in 1959.The Act enabled the SBI to make the eight former stateassociated banks as its subsidiaries.
The state bank of India emerged as a pacesetter, with its operations carried out by
the 480 officers comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial bank. Instead of serving as mere repositories of the communitys savings
and lending to creditworthy parties, the SBI catered to the needs of the customers, by banking
purposefully. The bank served the heterogeneous financial needs of the planned economic
development.

[8]

Branches:

The corporate centre of SBI is located in Mumbai. In order to cater to

different function, there are several other establishments in and outside Mumbai, apart from
the corporate centre. The bank boasts of having as many as 14 local head offices and 57
Zonal Offices, Located at major cities throughout India. It is recorded that SBI has about
10000 branches, well networked to cater to its customers throughout India.

ATM:

SBI provides easy access to money to its customers through more than 8500

ATMs in India. The bank also facilitates the free transaction of money at the ATMs of State
Bank Group, which includes the ATMs of State Bank of India as well as the Associated
Banks- State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc.

Subsidiaries:

The State Bank Group includes a network of eight banking

subsidiaries and several non-banking subsidiaries. Through the establishments, it offers

various services including merchant banking services, fund management, factoring services,
primary dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)

State Bank of India (SBI)

State Bank of Indore (SBIR)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Saurashtra (SBS)

State Bank of Travancore (SBT)

[9]

Products And Services:

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Education Loan Medi-Plus Scheme

Other Services:
Agriculture/ Rural Banking, NRI Services, ATM Services, Demat
Services, Corporate Banking, Internet Banking, Mobile Banking, E-pay, E-rail, SBI Vishwa
Yatra Foreign Travel Card, Broking Services, Gift Cheques, International Banking.

[10]

 COMPANY PROFILE OF ICICI BANK:-

Ms. Chanda Kochhar (MD & CEO)

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian
financial institution, in 1994. Four year later, when the company offered ICICI banks shares
to the public, ICICIs shareholding was reduced to 46%. In the year 2000, ICICI bank offered
made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE),
thereby becoming the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura
Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank
made secondary market sales to institutional investors.

With a change in the corporate structure and the budding competition in the Indian
Banking industry, the management of both ICICI & ICICI bank were of the opinion that a
merger between the two entities would prove to be essential step. It was in 2001 that the
Boards of Directors of ICICI and ICICI bank sanctioned the amalgamation of ICICI and two
of its wholly-owned retail finance subsidiaries, ICICI personal financial services Limited and
ICICI Capital Services Limited, with ICICI bank. In the following year, the merger was
approved by its shareholders, the High Court of Gujarat at Ahmadabad as well as the High
Court of Judicature at Mumbai and the Reserve Bank of India

[11]

Branches & ATMs:

ICICI bank has a wide network both in Indian and abroad. In

India alone, the bank has 1,420 branches and about 4,644 ATMs. Talking about foreign
countries, ICICI bank has made its presence felt in 18 countries United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. The bank proudly holds its subsidiaries in the United Kingdom,
Russia and Canada out of which, the UK subsidiary has established branches in Belgium and
Germany.

Products & Services:

Personal Banking

Deposits

Loans

Cards

Investments

Insurance

Demat Services

Wealth Management

[12]

NRI Banking

Money Transfer

Bank Accounts

Investments

Property Solutions

Insurance

Loans

Corporate Net Banking

Cash Management

Trade Services

FXOnline

SME Services

Online Taxes

Custodial Services

Business Banking-

[13]

 PICTURES OF ICICI BANK & THEIR SERVICES:-

[14]

CHAPTER NO.3

REVIEW OF
LITERATURE

[15]

 SERVICES:A service is action of doing something for someone. It is largely

intangible service marketing has important role in the economic development of many
countries including India. Almost all developed and developing countries emerging s services
economies. An economy is called sector to the G.D.P. of the nation is more than 50%. Ex.
Transportation, Education, Healthcare, Banking, Entertainment etc.

MARKETING:-

Marketing is an organizational function and a set of process for

creating communication and delivering value for the consumer and for managing customer
relationship in such a way, which benefits the organization. In all types of organizations like
Manufacturing, Services, Profit and Non-profit marketing plays the key role. The two fold
goals of marketing are to attract new customers by promising superior value and to retain and
grow current customers by delivering satisfaction.

[16]

 SERVICE MARKETING:-

The banking sector has transformed itself into a service

intensive and customer friendly model with a focus on convenience. Corporate banking is
clearly the largest segment personal financial service is the highest growth segment. Todays
retail banking sector is characterized by three basic features as follows:

(I) Multiple Products (Deposit, Credit Card, Insurance, Investment and Securities)
(II) Multiple Channels of Distribution (Call Centre, Branch, Internet)
(III) Multiple Customer Groups (Consumer, Small Business and Corporate)

[17]

 MEANING:-

(Service Marketing)

The most comprehensive definition of service marketing is defines that is

essentially intangible and does not result in the ownership of anything. Its production may or
may not be tied to a physical product. A service is any act or performance that one party can
offer to another that is essentially intangible and does not result in the ownership of anything.
Marketing is the foundation of business operation for businesses and non-profit
organizations. Understanding the various marketing services and their functions helps the for
profit or non-profit organization reach their goals. Marketing is the process of persuading
potential consumers to buy the organizations product or service.
Marketing services are the methods used in the overall marketing plan of
production, pricing, promotion and distribution. The main marketing services consist of
market research, advertising, promotion and public relation. Market research involves
gathering statistical data to develop the organizations marketing strategy and plan.
Advertising and promotion focuses on communicating information to the consumer as well as
increasing the demand for the product or service public relations deal with activities that
build a strong and trust worthy image among the public. Marketing is the process of
interesting potential. Customers and clients in your products and / or services. Its a huge
topic, which is why there are tomes written on marketing, and why you can take a four year
marketing degree. But essentially marketing involves everything you do to get your potential
customers and your product or service together.

[18]

 DEFINITION:-

(I) The promotion of economic activities offered by a business to its clients. Service
marketing might include the process of selling tele communications, health treatment,
financial, hospitality, car rental, air travel banking services and professional services.

(II) A service is an activity or benefit that one party can offers to another party. Intangible
and does not result in the ownership of anything.

(III) Service marketing is the endorsement of economic activities offered by a company to

its consumers, it is considered to be a special sub set of marketing because it focuses on how
rendering of services can affect both the customer attitude and the marketing strategy. Service
marketing includes building public relations, advancing customer loyalty, developing quality
of service, handling relationships and complaint management.

[19]

 CHARACTERISTICS:-

Intangibility

Inseparatabilit
y

Pershability

SERVICE
MARKETING
No
Variability

Ownership
Customer
Participation

i>Intangibility:It can not be taste, feel and smell before they are bought unlike physical
product. The intangibility creates a feeling of uncertainty about the outcome of service.

[20]

ii>Inseparatability:Services cannot be separated from the services provided in fact the product
delivers consumption of a service.

iii>Variability:Services of highly variable. It is almost impossible to have the same

service from the same seller the second time.

iv>Customer Participation:Service product is not a one side activity customer are core product of
services. The product quality of services greatly depends upon the ability, skills and
performance of the employees as well as the activity and performance of the customers.

v>No ownership:Service customer will have experience but not ownership since services
are intangible. You cannot own and store a service like you can a product. Services are used
or hired for a period of time. For example when buying a ticket to the USA the services lasts
may be 9 hours each way, but consumers want and expect excellent service for that time.
Because you can measure the duration of the service consumers become more demanding of
it.

vi>Pershability:They cannot be stored, saved, returned or resold once they have been
used. Once rendered to a customer the service is completely consumed and cannot be
delivered to another customer. Eg:- A customer dissatisfied with the services of a barber
cannot return the service of the haircut that was rendered to him. At the most he may decide
not to visit that particular barber in the future.

[21]

 SERVICE MARKETING MIX:-

[22]

 TYPES OF SERVICE MARKETING:-

Service Marketing involves three types of Marketing:

External Marketing

Internal Marketing

Interactive Marketing

(1) External Marketing:- Setting the Promise

* Marketing to END- UESRS.
* Involves pricing strategy, promotional activities and all communication with
Customers.
* Performed to capture the attention of the market and arouse interest in the
service.

(2 )Internal Marketing:-

Enabling the Promise

* Marketing to EMPLOYEES.
* Involves training, motivational, and teamwork programs, and all
communication
with employees.
* Performed to enable employees to perform the service effectively, and keep
up the promise made to the customer.

[23]

(3) Interactive Marketing:-

Moment of Truth, Service Encounter

* This refers to the decisive moment of interaction between the front- office
employees and customers, i.e delivery of service.
* This step is of at most importance, because if the employee fatter at this
level,
all prior efforts made towards establishing a relationship with the customer,
would be wasted.

COMPANY

Internal Marketing

External Marketing

EMPLOYEES

CUSTOMERS

Interactive Marketing

IMPORTANCE OF SERVICE MARKETING:[24]

A service is a special kind of product, this consequently means that its

marketing has to be approached differently. The exceptional characteristics of services form
the basis on how best to market a product. The following are only a few examples of the
importance:

Due to the presence of homogeneity in production, how well a company

performs in providing this product is proving to be the determining factor
in the minds of most consumers.
Appropriate provision of services by businesses results in customer
satisfaction and loyalty. Given that services are intangible the consumers
are likely to make their purchasing decisions based on where their loyalty
lies.
Changes in demographic structure: Differentiation of population in the
number and composition affect quality and attribute of customer whom
benefits from banking services.
Service marketing is important to understand the various services provided
by banks or company to its customer and also for prospective consumers.
To know about the production services through marketing of services by
banks.
It is important to create brand image amongst the customers regarding
particular services.
For the bank point of view, it is important to earn maximum profit to the
bank and maintain reputation in the market.
Service marketing facilities taken feedback from customers for
effectiveness of services, any problems or quarry from customers. And that
feedback use for improvement in marketing of services.

[25]

 In service marketing, communication has a very distinctive role to play. As

in consumer marketing, all channels of communication are used for both
customer education and brand building.
Service marketing includes intangibility, relatively low price sensitivity,
zero inventory, value creation through an inherent marketing mix which
includes people, process, proof of delivery.

SERVICE MARKETING TRIANGLE & TECHNOLOGY:-

Company
( Management)

Internal Marketing

External Marketing

Enabling the Promise

Setting the Promise

Technology

Providers

Customers

Interactive Marketing
Delivering the Promise

[26]

CHAPTER NO.4

RESEARCH METHODOLOGY

[27]

 RESEARCH METHODOLOGY:The following research methodology adopted for conducting the research:

Objectives of the study:

To learn the process of marketing services in SBI and ICICI bank.

To study market segmentation based on differentiated product.
To study the customer relationship management adopted by both
banks.
To study the strategies used by banks for marketing.
To study, whether marketing brand- ambassador is conducted or not

from both banks.

To study direct and indirect method of marketing services adopted
by both banks.

Hypothesis:

Services are required to be made available to the customers in real

time and therefore marketing is the way to attract various customers from various
field. Service marketing is used to enhance customer loyalty and building brand in
customers mind.

[28]

 Sources of Data Collection:-

(A) Primary Data:

Primary data is collected through Questionnaire and Personal
Interviews. In personal interviews, I visited the Branch of SBI which situated in
pune at NIBM road and Branch of ICICI bank which situated in pune at Awing, Shangrila Gardens, Bund Garden Road. I had taken interview of Mr. S. R.
Joshi Branch Manager of SBI bank and Mr. Vishal Hapse Customer Service
Manager of ICICI bank through asking various questions in respect of service
marketing undertaken by both bank.
For the purpose of study questionnaire is prepared of twenty
questions which includes eight questions for open minded answers and twelve
questions for closed minded answers from response of both banks.

(B)

Secondary Data:
Secondary data is collected through various sources such as
Internet, Books, Newspapers and Magazine. In internet source of data
collection, the meaning, definition, importance of service marketing
collected through Google Website. The various books are used to collect
information about service marketing such as Marketing Management of
Mr. Rajan Saxena, Services Marketing (concepts & practices) of
Ramneek Kapoor, Justin Paul, Biplab Halder, Modern Marketing
Management (principles & techniques) of Mr. J.N. Jain P.P. Singh.
The Times of India & Indian Express newspapers are used to
collect the information of service marketing. And in Magazines the
Annual Magazine of SBI and ICICI Bank used to earned more data of
both bank regarding service marketing.
[29]

 Research Design: Type of Research:

The type of research is Descriptive in nature which
also includes surveys and fact finding enquiries of service marketing
undertaken by SBI & ICICI bank. It is comparative study of service
marketing of both banks.

Sample size:
For the purpose of study, the sample size comprise of
Four respondents:

SBI Bank:-

(I) Branch Manager

(II) One Customer

ICICI Bank:-

(I) Customer Service Manager

(II) One Customer

Contribution Expected from the Research:-

[30]

The overall effort is to know about service marketing done by SBI and ICICI
bank and provide guide to the customers preference regarding particular services based on
how effectively marketing is done to attract the customers by bank and to convey peoples
for purchasing or taking a particular service.

Method of Data Analysis:Analysis of data is done on the basis of response taken from the respondents
regarding service marketing of SBI and ICICI bank by making use of Tables, Charts,
Graphs and Paragraphs method etc.

[31]

CHAPTER NO.5

DATA ANALYSIS
AND
INTERPRETATION

The following are the Data Analysis & Interpretation of Comparative

Study of Service Marketing Undertaken by SBI & ICICI Bank:
[32]

<1> Which are the different services provided by your bank?

Ans:-

For SBI Bank:

Broking Services- SBI Capital Markets Ltd. Provide retail

broking network to help investors carry out their broking
transactions with confidence.

Internet Banking- Using internet banking services, you can do

the following normal banking transactions online:

i.

Funds transfer between own accounts.

ii.

Group transfers to accounts in state bank Group.

iii.

Credit PPF accounts across branches.

State Bank Mobicash- It is a prepaid account on mobile

offering facilities like fund transfer, mobile/DTH recharge, bill
payment, balance enquiry and mini statement.
[33]

E-Pay, E- Rail, Safe Deposit Locker, MICR codes, Insurance

Policy,

Group

Personal

Accident

Insurance

Policy,

RTGS/NEFT, ATMs

Foreign Inward Remittancesi.

Drafts in Indian rupees can be purchased from exchange

companies or our correspondents and mailed to the
branch where you have your account.

ii.

Cheque can be deposited for credit of your account.

These will be collected and credited to your account.

[34]

For ICICI Bank:

Insurance- Following insurance facilities provided by

bank:
i.

Life Insurance

ii.

Health Insurance: Complete Health Insurance Policy,

Health Care Plus, Health Advantage Plus Insurance
Policy, Personal Protect Insurance Policy.

iii.

Home Insurance , Car Insurance , Two Wheeler

Insurance.

Advantage Women Savings Account- The ICICI bank

Advantage Women Account enables todays independent
women to enjoy hassle-free banking services.

Outward Remittances- ICICI bank offers a simple way to

send money outside India.

Other Services- E-Pay, E-Tax, Online Share Trading,

iMobile, Online Charity, Online Pension Calculator, Buy
Online, Prepaid Mobile Recharge, ATM, Family Banking,
Dream Deposit, Buy Online Gold .

Privilege Banking Advantage Privilege banking products

& services are designed to meet all banking & financial
needs of select customers. As privilege banking customer
enjoy Dedicated service Area, Priority Service, Preferential
[35]

rate on purchase of ICICI bank Pure Gold and Foreign

Exchange, Discount on annual fee for Safe Deposit
Locker, Multi-city cheque book.

<2> How do you plan the different services?

Ans:-

For SBI Bank:

The different services are planned by applying modern technique

and tools to meet the advance modernization at global level.
[36]

Conduct programmes on particular services with focus on

Technical and Management aspect of that services,

Provide training centre and trainers to give training to the staff

in respect of providing particular service to customers,

Interaction with other institutions,

Conduct studies on issues relating to the policy, planning,

operational aspects of that services,

Provide feedback to top level management,

And last one, to start provide services to customers based on

service marketing channels.

[37]

For ICICI Bank:

By taking into consideration the need of customers we plan

various services by applying technical knowledge. We discuss
with our manager about particular service and then decide
regarding planning, policies, conceptual issues, technical
problem, training to staff, and lastly provide services to
customers.

<3> Who is the brand ambassador for marketing your services? And on
what
basis did you select him?

Ans:-

For SBI Bank:

There is no any brand ambassador to SBI bank for marketing their
Services.

For ICICI Bank:

Amitabh Bachhan, generally peoples have craze regarding star or
celebrity and thats why we selected a big star Mr. Amitabh
Bachhan

for marketing our services who enable the customers to

purchase services from our bank.

<4> Which type of scheme you plan to attract loyal customers?

[38]

Ans:-

For SBI Bank:

Compensation policy- The objective of the State Bank of

India Compensation Policy (banking services) is to
establish a system whereby the bank compensates the
customer due to deficiency in service on the part of the
bank or any act of omission or commission, directly
attributable to the bank.

Policy on Depositors Rights- A policy document

recognizes the rights of the Depositors and aims at
dissemination of information with regard to various
aspects of acceptance of deposits from the members of
public.

Annuity Deposit schemes- To enable the depositor to pay

one time lump sum amount & to receive the same in
Equated Monthly Installments (EMIs), comprising a part
of the principal amount as well as interest on the reducing
principal amount, compounded at quarterly rests and
discounted to the monthly value.

Scheme of 1% Interest Subvention on Housing Loans- The

union finance minister during the budget for 2009-10, had
announced a Scheme of one per cent interest Subvention in
respect of individual housing loans upto Rs.10 lakh,
provided the cost of unit does not exceed Rs.20 lakh.

New Pension System- New pension System for every

citizens was introduced from 1st May 2009 by the pension
Fund Regulatory and Development Authority to provide
old age pension security to citizens in the age group of 1860.

[39]

Gold Deposit Scheme- Gold Deposit Scheme is in the

nature of a fixed deposit in gold. The customers can
deposit their idle gold under GDS which will provide them
safety, interest earnings, tax benefits and a lot more.

Scheme for Financing Seed Processors- To extend

financial assistance to the seed processors against their
receivables due to them from the seed growers.

Reinvestment plan, Exchange of soiled/ mutilated currency

notes, foreign Exchange services & cross Border
payments, Special salary package, Cheque collection
policy, Loan scheme for Vocational Education and
Training.

Use of Self- Service Enquiry Terminal available within the

branch premise, allowed free of cost to customers to access
their accounts.

Corporate Package- Huge amount taken from big

companies by SBI through bank vehicle for crediting the
money in companies account at all over the India and in
Abroad also.

[40]

For ICICI Bank:

Child Education Plan- ICICI bank presents Child

Education Plan, a unique way to save for your childs
future.

Family Banking- Family Banking provides you with the

following benefits:
I. Access to superior benefits for the entire family
II. Lower minimum balance requirement at

individual
Customer level
III. Flexibility to maintain balances across account
IV. Single Family Bank.

Card Protection Plan- ICICI bank introduces the CPP card

protection, Indias first comprehensive card protection service.
It can be used in the case of card loss, theft, and any related
fraud. You can safeguard all financial cards and Non-financial
cards including Debit, Credit, Loyalty and membership cards
with CPP card protection.

Young Stars Accounts- At Young Stars, we will guide your

child through the world of banking - from checking the childs
savings account balance to guiding through fun zones and
special pages on the Internet Banking channel.

No Frills Account- ICICI banks No Frills Account, places

emphasis on the smallest of deposits. Our No Frills Account is
available to you without any minimum monthly average
balance requirement.

[41]

Tax Saving FD- ICICI Banks Tax-Saver Fixed Deposit enables

you to save tax and earn high returns. A dual benefit option
structured to maximize your advantage. ICICI Bank's Tax
Saving FD is the perfect solution for your investment needs.

Agriculture & Rural Banking- ICICI bank provide Agriculture

and Rural Finance to take care of agricultural and rural
products & services.

Resident Foreign Currency (Domestic) Account- The Reserve

Bank of India has now made it easier for you to access foreign
currency by permitting a foreign currency account (domestic)
for resident Indians.

Dream Deposits, Life plus Senior Citizen Services, PPF,

Merchant Services, Special Saving Account, Travel Card,
Commercial Cards, Health Insurance.

Student Medical Insurance- Student Overseas Travel Insurance

provides you with medical and non-medical insurance coverage
throughout your period of study with auto-renewal and
extension facilities. View the benefits that can make your stay
abroad a happier experience.

[42]

<5> What kind of supplementary services do you have for your customers?

Ans:-

For SBI Bank:

i> Insurance police

ii> Online bill payment, E-Tax payment, E-Rail

iii> Cheque collection policy between two bank or

between bank and other institutions.

iv> Paper Less Services: It means that amount can be

withdrawal or Deposit without paper work by swiping the
ATM card or Debit card.

For ICICI Bank:

i> Insurance policy

ii> E-Pay, E-Rail, E-Ticket book, Internet banking and Mobile

banking

iii> ATMs, Consumer Complaint Management and Easy way

for taking various services & related schemes from customers
in minimum time.

[43]

<6> Who are your target customers?

Ans:-

Businessman

Salaried Peoples

Non Business Organization

NRI

For SBI Bank:

The SBI Bank is equally targeted to all customers i.e attract all type of customers and
give equal important to all of them.

For ICICI Bank:

[44]

The ICICI Bank is mostly targeted to Salaried Peoples first, then secondly to
Businessman, thirdly to NRI and lastly to Non Business Organization.

[45]

<7> How do you manage your customers relationship?

Ans:-

Maximum satisfaction towards services

Quick response to any quarry

Inform about latest scheme towards any services

For SBI Bank:

SBI Bank manage their customers relationship by way of Maximum

Satisfaction towards Services rather than Quick response to any quarry
& inform about latest scheme towards any services.

For ICICI Bank:

[46]

The ICICI Bank give their 100% to Maximum satisfaction towards services and then
50%
to Quick response to any quarry & Inform about latest scheme towards any services.

[47]

<8> What are the different methods of marketing & advertising adopted by
your bank?

Ans:-

Personnel Method

Depend more on advertisement basis

Poster Method

Television Marketing

Marketing through short messages

For SBI Bank:

The SBI use Poster Method for marketing & advertising their products and services more
than Depend more on advertisement basis, Personnel Method and Television Marketing.

[48]

For ICICI Bank:

The ICICI Bank use different methods of marketing & advertising for their Products &
Services like 35% Personnel Method, 25% Poster Method, 10% Marketing through short
messages and 30% Television Marketing.

[49]

<9> Which of the following direct marketing of services do you adopt?

Ans:-

Mobile banking

Email ID

Call centre

Face to face marketing

For SBI Bank:

In direct method, the SBI use only Mobile Banking method for
marketing their services and not any other method of marketing like Email ID,
Call centre, Face to face marketing etc.

[50]

For ICICI Bank:

The ICICI Bank use Mobile Banking to 60% for marketing their services in direct
method and then 30% to Email ID & 10% to Call Centre.

[51]

<10> Which of the following do you adopt for service marketing in indirect
method?

Ans:-

Internet Banking Method

Television Marketing

Poster Method

Advertise in Newspaper

For SBI Bank:

In indirect method of service marketing, the SBI use Internet Banking Method at 40%,
Television Marketing at 20%, Poster Method at 30% and Advertise in Newspaper at 10%
etc.

[52]

For ICICI Bank:

The ICICI Bank, in indirect method use various method of service marketing such as,
Internet Banking at 35%, Television Marketing at 20%, Poster Method at 15% and
Advertise in Newspaper at 30%.

[53]

<11> What does the customer look for in your bank?

Ans:-

Quality

Transparency

Prompt delivery of services

Better Investment opportunities

For SBI Bank:

In SBI Bank, the customers look for Transparency rather than Quality, Prompt
delivery of services and Better Investment opportunities because all these are
already exist in bank.

[54]

For ICICI Bank:

In ICICI Bank, the customers look for Transparency and Better Investment
Opportunities for long term period.

[55]

<12> Which are the different rates on Education loan, Home loan, FD, Car
loan & Saving Account?

Ans:-

For SBI Bank:

(i)

EDUCATION LOAN:-

SBI Student Loan Scheme

(w.e.f. 16.11.2012)

Loan Amount

Rate of Interest*

For loans upto Rs.4 lacs

3.50% above Base Rate, currently 13.20% p.a.

Above Rs.4 lacs and upto Rs.7.50

3.75% above Base Rate, currently 13.45% p.a.

lacs
Above Rs.7.50 lacs

1.75% above Base Rate, currently 11.45% p.a.

*(0.50% concession in interest for girl student)*

* (1% concession for full tenure of the loan, if interest is serviced promptly as and
when
applied during the moratorium period, including course duration)*

SBI Loan Scheme for Vocational Education And Training

3.50% above Base Rate, currently 13.20% p.a.

[56]

(ii)

HOME LOAN:-

All Rate are floating only

(Base Rate= 9.70% p.a.)

Loan Amount

Linkage with Base RateEffective Rate

over the tenor of the loan

Upto Rs. 30.00 lacs

0.25% above Base Rate

9.95% p.a.

Above Rs. 30.00 lacs

0.40% above Base Rate

10.10% p.a.

No fixed rate option in any limit bracket.

[57]

(iii)

FIXED DEPOSIT SCHEME:-

Rates w.e.f.01.04.2013
(No change)
7 days to 90 days

6.50% p. a

91 days to 179 days

6.50% p. a

180 days

6.50% p. a

181 days to 240 days

6.50% p. a

241 days to less than 1 year

6.50% p. a

1 year to less than 2 years

8.75% p. a
8.75% p. a

2 years to less than 3 years

8.75% p. a

3 years to less than 5 years

5 years and up to 10 years

8.75% p. a

[58]

(iv)

CAR LOAN:-

Interest Rates w.e.f. 04.02.2013 (Base Rate 9.70 % p.a.)

SBI CAR LOAN SCHEME
Tenure

Rate of Interest

For all tenures

For Term Loan and Overdraft:

0.75% above Base Rate, i.e. 10.45% p.a.

Used Vehicles

Tenure

Rate of Interest

Up to 3 years

7.25% above Base Rate i.e. 16.95% p.a.

Above 3 yrs

7.50% above Base Rate i.e. 17.20% p.a.

(v)

SAVING BANK DEPOSIT:RATE OF INTEREST : 4.00% p.a. (w.e.f. 03.05.2011)

[59]

For ICICI Bank:

(i)

EDUCATION LOAN:-

For 4 lakhs of ICICI Bank loan, students have to pay 14.00% per year and the
amount of above 4 lakhs and below 7.5 lakhs need to pay 18.00% of interest. Candidates,
who got more than 7.5 lakhs and up to 20 lakhs, have to pay interest rate of 18.00% per year.
4 Lakhs- 14% p.a
4 lakhs to 7.5 lakhs- 18% p.a
Above 7.5 lakh up to 18% p.a

(ii)

HOME LOAN:-

Loan Amount

Below Rs. 30.00 lacs

Effective Rate

10.25% p.a.*

Rs. 30.00 lacs & Above 10.50% to 11.00% p.a.*

[60]

(iii)

FIXED DEPOSIT:-

Rates of Interest (% p.a.) w.e.f January 26, 2013

Maturity Period
For deposit less than Rs. 1 crore
General

Senior Citizen **

7 days to 14 days

4.50

5.00

15 days to 29 days

4.75

5.25

30 days to 45 days

5.50

6.00

46 days to 60 days

6.25

6.75

61 days to 289 days

7.00

7.50

290 days to less than 1 year

7.25

7.75

1 year to 389 days

7.50

8.00

390 days to less than 2 years

9.00

9.50

2 years to less than 5 years

8.75

9.50

5 years upto 10 years

8.50

9.25

[61]

(iv)

CAR LOAN:-

Tenure of credit

Up to 23

24-35

36-60

facility

Months

Months

Months

Type of credit

Rate of interest

facility
New Car Loans

Type of credit
facility

13.75% to

11.50% to

16.50%

15.50%

14.25%

Rate of interest

Used Car Loans

(v)

15.75% to

16.50% to 18.00%

Processing fee
Rs. 4,000 OR 2% of loan amount, whichever is lower

SAVING ACCOUNT:-

RATE OF INTEREST : 4.00% p.a. (w.e.f. 03.05.2011)

<13> Whether your bank provide gold loan or not?

[62]

Ans:-

Yes

No

Yes, The both banks i. e SBI and ICICI bank provide gold loan to their various
customers through service marketing and by way of different methods of
advertising.

<14> How is the service delivery process undertaken at your bank?

Ans:-

For SBI Bank:-

The SBI bank use different computer software for service delivery
process to their customers. Services such as Mobile Banking, Internet
Banking, Account Opening in bank and ATMs services.
Eg. :-

In Mobile Banking, bank used SBI freedom software for mobile

banking transactions or for delivery of services to customers mobile just in

minutes.

[63]

For ICICI Bank:-

In ICICI bank, the bank also used computer software for prompt delivery of

their

services to all customers just in minutes all over the India at a one time.

<15> What different programmes will you develop to build customers

loyalty?

Ans:-

For SBI Bank:-

i> Pensioners Meet,

ii> Monthly customers meeting with bank, and

iii> Any complaints and suggestions from customers

towards banking services.

[64]

For ICICI Bank:-

i> New Services or Scheme introduction with customers,

ii> New Visa Card launching in special meeting,

iii> General meeting with customers,

iv> Pensioners and Investors Meet,

v> Complaints and Suggestions from customers.

<16> How is the information processing services undertaken at your bank?

Ans:-

For SBI Bank:-

Core Banking-

It means that at a time all over India messages or

information in respect of your banking transactions through internet banking, mobile

banking, direct bank transaction in bank can be displayed and your account can be
viewed in any branch of state bank of India.

[65]

For ICICI Bank:-

All accounts of customers are properly handle by bank. The information of customers
account & services are processed through computer software & technique and can be
displayed in all branch of ICICI bank.

<17> How is technology used as an element in providing prompt services?

Ans:-

For SBI Bank:-

ATMs, Computer software, SBI freedom software are used as an technology in

providing prompt services to various customers. Complaint Management system is
developed by bank to give all type of complaints from the customers and for making
enquiry about any type of Deposits & advances in branch of bank or by online internet
method.

[66]

For ICICI Bank:-

The bank used Account opening software, Internet banking

software, Mobile banking software, Suggestion & Complaint Management system for
customers, Enquiry facility, ATMs and Loan account management system as an technology in
providing or in delivering prompt services to various customers of bank.

<18> Which other different services offered by your bank?

Health Management

Real time gross settlement

Apply online for loan

Pension Plan

[67]

Ans:-

For SBI Bank:-

The bank provide other different services such as Real time gross settlement at 35%, Pension
Plan at 30%, Health management at 20% and Apply online for loan at 15% to attract various
type of customers.

[68]

For ICICI Bank:-

The ICICI bank also provide different services but in different percentage such as Health
management at 40%, Pension plan at 30%, Real time gross settlement at 20% and Apply
online
for loan at 10% to different customers.

Real time gross settlement:A system that streamlines that settlement of large value transactions between banks
and other financial institutions. Instead of moving physical amount of cash, the bank transfer
funds electronically. When one bank transfers money to another, the funds are immediately
credited to the second bank and debited to the first.

[69]

<19> What are your future plans to attract various customers through
service
marketing & advertising?

Ans:-

For SBI Bank:-

i> Attracting P segment customers,

ii> Use of technology and talented employees for
providing better different services just in minutes to attract
all classes of customers .

For ICICI Bank:-

i> Attracting all classes of customers,

ii> As compare to nationalized bank, provide suitable

lower rate of interest on various type of loans to attract
excess customers for ICICI bank.

iii> Provide higher rate of interest on investment and

deposit scheme.

<20> What are the challenges before your bank in respect of service
[70]

marketing?

Ans:-

For SBI Bank:-

i> Updating Modernization,

ii> Maximize target to foreign customers,

iii> To provide maximum knowledge about bank job to

employees for doing their job effectively & efficiently
with modernization.

For ICICI Bank:-

i> Modernization & Globalization,

ii> Suitable rate of interest on loans as compare to

Nationalized bank rate to join excess class of customers
with ICICI bank,

iii> New scheme and services introduction.

[71]

*Which bank is best from customer point of view?*

Ans:From customers point of view, they preferred SBI bank for their banking
functions because the SBI bank provide lower rate of interest on home loan & other loans. As
compare to ICICI bank which is a private bank, provide higher rate of interest on loan. The
SBI bank also provide number of ATMs to customers as compare to ICICI bank ATMs.

*Data collection from various sources*

[72]

CHAPTER NO.6

CONCLUSION
AND
SUGGESSTIONS

[73]

 CONCLUSION:-

From the overall research about study of service marketing

undertaken by State bank of India (SBI) and Industrial Credit & Investment
Corporation of India (ICICI) bank in pune city, the following conclusions are made:-

Since both the banks are competing equally with each other for
marketing their services.
But SBI bank provides more ATMs facility to their customers.
The SBI is good in providing efficient services as compared to
ICICI bank.
As per the research, the ICICI bank chooses number of service
marketing channel for marketing their services when compared to
SBI bank.
Only ICICI bank has a brand ambassador (i.e any celebrity or star)
for marketing their services and which has a great impact on
customers for conducting the services from bank. But for SBI bank,
there is no any brand ambassador for service marketing.

The SBI bank is ahead in providing lower rate of interest on

Education loan, Home loan, Car loan and high rate of interest on
Deposit schemes as compared to ICICI bank.
In SBI bank customer looks for transparency but, in ICICI bank the
customer looks for transparency along with better investment
opportunities.
[74]

 In direct and indirect methods of service marketing the ICICI bank

is one step ahead as compared to SBI bank.
The SBI bank is ahead in customer complaints management or
complaint handling when compared to ICICI bank.
The ICICI bank is ahead more in launching various cards for
customers benefit as compared to SBI bank.
The ICICI bank is highly ahead in providing various insurance
policies and health management schemes for customers benefit
when compared to SBI bank.
The ICICI bank is ahead in concentrating on female customers when
compared to SBI bank.
From customers point of view, they preferred SBI bank
(Nationalized) as compared to ICICI bank (Private) on the basis of
lower rate of interest on loans and higher rate of interest on deposit
scheme & investments.

[75]

 HYPOTHESIS:-

Services are required to be made available to the customers in real

time and therefore marketing is the way to attract various customers from various
field. Service marketing is used to enhance customer loyalty and building brand in
customers mind.

Prove of Hypothesis:-

Yes, both the banks (SBI and ICICI) proved that they competing
equally to each other for marketing their services to attract various customers from
various field and for enhancing customer loyalty & building brand. But ICICI bank is
one step ahead for marketing their services from various channel of marketing as
compared to SBI bank. And SBI bank is one step ahead in providing lower rate of
interest on loans to attract various peoples for taking bank loan service.

[76]

 SUGGESSTION:-

Suggestion to SBI bank:

The SBI bank should has a brand ambassador for
marketing their services.
The bank should provide various schemes, investments
& insurance policies to attract all classes of customers.
The bank should more concentrate on service marketing
methods and channel as compared to ICICI bank.
The bank should concentrate on attracting female
customers and provide various schemes to female
customer as compared to ICICI bank.
The bank should provide number of services in such a
way which creates brand loyalty, education, satisfaction
in customers mind.

[77]

Suggestion to ICICI bank:

The ICICI bank should required to made more
improvement in marketing of various services more
effectively.
The bank should concentrate on reducing rate of
interest on loans and increase rate of interest on
deposits & investments.
The bank should concentrate on providing efficient
services to customers as compared to SBI bank.
The bank should concentrate on customer complaint
management and suggestion from customers to target
all type of customers.
The bank should concentrate more on brand building,
confidence and satisfaction among the customers
towards bank services.

[78]

 BIBLIOGRAPHY:List of Books Referred:

(i)

(ii)

Book Name -

Marketing Management (Third Edition)

Author Name -

Rajan Saxena

Name of Publication -

Nirali Publication, 2010

Book Name -

Service

Marketing

(Concepts

Practices)
Author Name -

Ramneek Kapoor, Justin Paul, Biplab

Halder

(iii)

Name of Publication -

Narendra Publication, 2009

Book Name -

Modern Marketing Management

(Principles & Techniques)

(iv)

Author Name -

J. N. Jain, P. P. Singh

Name of Publication -

Vision Publication, 2011

Book Name -

Research Methodology (Methods &

Techniques)

Author Name -

C. R. Kothari

Name of Publication -

Nirali Publication, 2007

[79]

&

(v)

Book Name -

Service Marketing (Ethics, Values and

Cases)

Author Name -

Dr. Rakesh R. Jani

Name of Publication -

Pragati Publication, 2008

Internet sites: www.sbi.co.in

www.icicibank.co.in
www.google.com

ANNEXURE:Attach a Questionnaire.

[80]