STUDY OF MARKETING MIX OF BANKING

INDUSTRY WITH REFERENCE TO HDFC BANK

Submitted in partial fulfillment of the requirements
for the award of the degree of
Bachelor of Business Administration (BBA)
Semester-III (Paper Code-BBA 209)
To
Guru Gobind Singh Indraprastha University, Delhi

Guide:

Submitted by:

Name of Guide :Dr. Gopal Singh Latwal

Name of Student: ShipraMakkar

Roll No.:10413701714
Batch:2014-2017

Nurturing Excellence

Institute of Information Technology & Management,

New Delhi 110058
2015-2016

CERTIFICATE

I, Ms SHIPRA MAKKAR ,Roll No. 10413701714 certify that the Minor Project Report
(Paper Code BBA-209) entitled MARKETING MIX OF BANKING INDUSTRY WITH
REFERENCE TO HDFC BANK is completed by me by collecting the material from the
referenced sources. The matter embodied in this has not been submitted earlier for the
award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student:

Date:

Certified that the Minor Project Report (Paper Code BBA-209) entitled MARKETING MIX OF

BANKING INDUSTRY WITH REFERENCE TO HDFC BANK doneby Ms SHIPRA

MAKKAR, Roll No. 10413701714, is completed under my guidance.

Signature of the Guide:

Name of the Guide: Dr.Gopal Singh Latwal
Designation: Associate Professor
Date:

Countersigned

Director/Project Coordinator

ACKNOWLEDGEMENT

It is my proud privilege to release the feelings of my gratitude to several persons who helped
me directly or indirectly to conduct this research project work.
I express my heart full indebtness and owe a deep sense of gratitude to my faculty guide and
my teacher Dr.GOPAL SINGH and Ms PARUL MANCHANDA,for their sincere guidance
and inspiration in completing this project.
I am extremely thankful to my parents and faculty members of IITM College for their
coordination and cooperation and for their guidance and encouragement.
I also thank all my friends who have more or less contributed to the preparation of this
project report. I will always indebted to them.
The study has indeed helped me to explore more knowledgeable avenues related to my topic
and I am sure it will help me in my future.

Submitted by:
Name: ShipraMakkar
Course: BBA II YEAR
Enrolment no. : 10413701714

FORMAT FOR CONTENTS & LIST OF TABLES/FIGURES/ SYMBOLS

CONTENTS
S No

Topic

Page No

Certificate

Acknowledgement

Assignment Directive

List of Tables

List of Figures

List of Symbols

List of Abbreviations

Executive Summary

Body of the Report

10

References/Bibliography

11

Appendices

FORMAT FOR LIST OF TABLES/FIGURES/ SYMBOLS/ABBREVIATIONS

LIST OF TABLES
Table No

Title

Comparison of 2 years

Awards of HDFC in 2015

Awards of HDFC in 2014

Page No

LIST OF FIGURES

Figure No

Title

Pronged approaches

7ps of marketing mix

4ps of product marketing

HDFC shares

Page No

ABSTRACT
Bank marketing in general and Customer Relationship Management (CRM) in particular are
of vital importance for Indian banks, particularly in the current context when banks are facing
tough competition from other agencies, both local and foreign, that offer value added
services. The Role of marketing in the banking industry continues to change. For many years
the primary focus of bank marketing was public relations. Then the focus shifted to
advertising and sales promotion. That was followed by focus on the development of a sales
culture. Today banking sector all elements of the marketing concept of customer satisfaction,
profit integrated framework and social responsibility are all equally important. When
applying marketing to the banking industry, the bank marketing strategy can be said to
include the following:A very clear definition of target customers is the development of a marketing mix to satisfy
customers at a profit for the bank. Planning for each of the source markets & each of the use
markets. Main principal aspects of Bank Marketing are Customer Oriented Services, Design

& Delivery of Such Services Corporate Objectives of the Bank, Environmental & Other
Constraints. The second element in formulation of marketing strategy in banking sector is
development of proper marketing mix (product, place, price, promotion, people, process,
physical evidence) so as to satisfy the needs of the target group of customers. With the help of
4Cs (customer solution, customer cost, communication, convenience) use of marketing mix
in banking sector is increasing day by day. The bank marketing mix concept is very important
for every bank in tough competition. Use of 7p and 4c for bank and implementation of these
concepts in banking sector shows the Role of marketing in bank in present Era. In bank
marketing, marketer uses both Collective" and Selective" approach to attract and convince
the target customer .It is the aggregate of functions, directed at providing services to satisfy
customers financial (and other related) needs and wants, more effectively and efficiently .

Chapter- 1
INTRODUCTION
The Role of marketing in the banking industry continues to change. For many years the
primary focus of bank marketing was public relations. Then the focus shifted to advertising
and sales promotion. That was followed by focus on the development of a sales culture.
Although all the elements of the marketing concept are customer satisfaction, profit
integrated framework and social responsibility which will remain important, customer
satisfaction must receive the greatest emphasis in the years ahead. The chief concerns of most
bank executives still focus on legal and regulatory issues, according to most surveys.
Community banks are particularly concerned with eliminating barriers that give unfair
advantages to financial services competitors, such as credit unions. However, another concern
pertains to technology.

1995

2015

Maintaining profitability
Service quality
Credit portfolio management
Maintaining profitability
Service quality
Market/customer focus
Regional economy
Operations/ systems/technology
Cost management/ expense reduction
Credit portfolio management
Declining earnings/more failures
Productivity improvement
Market/customer focus
Investment to stay competitive
Capital adequacy
Stock market value
Stock market value
Asset/liability management
Industry overcapacity
Electronic banking
Table-1: Bankers Identify Near Team and Long Term Concerns

When this gateway system was first proposed, access to the Internet was very new and few
banks had the resources and knowledge to set up their own direct-access lines for customers.
Customers have shown a growing interest in online banking services, and banks have
responded by quickly putting in place proprietary sites on the World Wide Web and offering
PC banking. With 24-hour access to either automated information or live operators,
customers do everything from check their accounts to apply for a loan. Bank executives also
identified PC banking as having the most promise for the future, followed by Interest access
and broad function kiosks. Marketing Concepts Its application to Banking, when we apply
marketing to the banking industry, the bank marketing strategy can be said to include the
following:
i) A very clear definition of target customers.
ii) The development of a marketing mix to satisfy customers at a profit for the bank.
. iii) Planning for each of the source markets & each of the use markets (A Bank needs to be
doubly market or oriented as it has to attract funds as well as were of funds & services in the
Organization & Administration

BANK MARKETING: 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. This aggregate of functions is the sum total of all individual activities
consisting of an integrated effort to discover, create, arouse and satisfy customer needs. This
means, without exception, that each individual working in the bank is a marketing person
who contributes to the total satisfaction to customers and the bank should ultimately develop
customer orientation among all the personnel of the bank. Different banks offer different
benefits by offering various schemes which can take care of the wants of the customers.
Marketing helps in achieving the organizational objectives of the bank. Indian banks have
duel organizational objective i.e.commercial objective to make profit and social objective
which is a developmental role, particularly in the rural area. Marketing concept is essentially
about the following few thing which contribute towards banks success:
1) The bank cannot exist without the customers.
2) The purpose of the bank is to create, win, and keep a customer.
3) The customer is and should be the central focus of everything the banks does.
4) It is also a way of organizing the bank.
5) Ultimate aim of a bank is to deliver total satisfaction to the customer.
6) Customer satisfaction is affected by the performance of all the personal of the bank.
All the techniques and strategies of marketing are used so that ultimately they induce the
people to do business with a particular bank. Marketing is an organizational philosophy. This
philosophy demands the satisfaction of customers needs as the pre-requisite for the existence

and survival of the bank. The first and most important step in applying the marketing concept
is to have a whole hearted commitment to customer orientation by all the employees.
Marketing is an attitude of mind. This means that the central focus of all the activities of a
bank is customer. Marketing is not a separate function for banks. The marketing function in
Indian Bank is required to be integrated with operation. Marketing is much more than just
advertising and promotion; it is a basic part of total business operation. What is required for
the bank is the market orientation and customer consciousness among all the personal of the
bank. For developing marketing philosophy and marketing culture, a bank may require a
marketing coordinator or integrator at the head office for effective coordination of different
functions, such as marketed research, training, public relations, advertising, and business
development, to ensure customer satisfaction. Hence, the total Bank marketing function
involves the following:
a. Market research
b. Product Development
c. Pricing of the service
d. Developing market.
Bank Marketing Approach: Banking industry is essentially a service industry which
provides various types of banking and allied services to its clients. Bank customers are such
persons and organizations that have surplus or shortage of funds and those who need various
types of financial and related services provided by the banking sector. These customers
belong to different strata of economy, different geographical locations and different
professions and businesses. Naturally, the need of each individual group of customers is
distinct from the needs of other groups. It is, therefore, necessary to identify different

homogenous groups and even sub-groups of customers, and then with utmost precision
determine their needs, design schemes to suit their exact needs, and deliver the most
efficiently. Banks, generally, have been working out various services and products at the level
of the Head Office and these are traded through their retail outlets (branches) to different
customers at the grass-roots level. This is the so called Top to Bottom' approach. However,
bank marketing requires a change in this traditional outlook. It should be 'bottom to top'
approach with customers at the grass-roots level as the focal point for working out various
products / schemes to suit the needs of different homogenous groups of customers. Thus,
bank marketing approach, in general, is a group or "Collective" approach. Customers
Relationship Management, on the other hand, is an individualistic approach which
concentrates on certain select customers from the homogeneous groups, and develops
sustainable relationships with them for adding value to the bank. This may be termed as a
"Selective" approach thus, bank marketing concept, whether "collective" approach or
"selective" approach, is a fundamental recognition of the fact that banks need customer
oriented approach. In other words, bank marketing is the design and delivery of customer
needed services worked out by keeping in view the corporate objectives of the bank and
environmental constraints.

Figure 1: The above chart gives us an overview of the 2 pronged approach to bank
marketing.

Principal aspects of Bank Marketing

Customer Oriented Services: Services offered by the banks are to be worked out in
such a manner that they fulfil the needs of the customers. Traditionally, bankers have
been accustomed to think in terms of what banks can offer and not what customers
want. However, bank marketing concept requires them to change this orientation, and
start working out schemes and services by keeping changing customer needs as the
focus of their new and novel products. In order to design and deliver customer needed
services, the banks must learn to seek information about the existing and potential

customers, and their perceived and latent needs on a regular and systematic basis.
Design & Delivery of Such Services: The word design implies that good marketing
services need to be properly designed and crafted so as to suit a particular welldefined group of clients. Moreover, such properly designed services must be properly
traded. The quality of delivery is to be ensured not only through focused
advertisement, but also through proper customer services offered at the bank's retail
outlets. Customer satisfaction is a dynamic process and it is necessary to keep pace
with rising expectations of the customers. Further, the development of IT and spread

of Internet are opening up newer mechanisms of customer contact and services.

Corporate Objectives of the Bank: The corporate objectives of the bank are to be
worked out within the broad framework of the national policy. The corporate
objectives are of two types, Short Term and Long Term.
1. The Short Term Objectives could be of the type: a) Increasing profitability of the bank next year.

b) Widening customer base by offering new services,

c) Increasing growth rate of credit next year, etc.
2. The Long Term Objectives could be: a) to rise to number one position in five years,
b) To become the universal bank over the period of next 3 years, etc.
Once the corporate objectives are clearly spelt out, various schemes can be designed
to fulfil the needs of the customers within the framework of the chosen corporate
objectives. Further, the resources made available for systematic marketing efforts are

also constrained by policies, vision and attitudes of the management.

Environmental & Other Constraints: Environmental and other constraints play an
important role in bank marketing decisions. Generally, the environmental constraints
fall into four categories: Economic, Cultural, Legal and Political. A thorough
understanding of local and national economy is essential for taking effective
decisions about what product to be offered, where it is to be offered, at what price it
is to be offered, and how it is to be offered? Thus, the knowledge of environmental
constraints is an essential factor in the designing and delivery of various types of
customer-oriented schemes and services.
Marketing Concepts Its Application to Banking When we apply marketing to the
banking industry, the bank marketing strategy can be said to include the following:
I.
A very clear definition of target customers.
II.
The Development of marketing mix to satisfy customers at a profit for the
bank
III.
Planning for each of the source markets.
IV.
Organization and Administration.
Marketing Strategy in Banking Sector:
Consumer Behaviour and Segmentation: Banks deal with individuals,
group of persons and corporate, all of whom have their likes and dislikes. No
bank can afford to assess the needs of each and every individual buyer (actual
or potential). Segmentation of the market into more or less homogenous
groups, in terms of their needs and expectations from the banking industry,
provides a solution to this problem. This ISSN : 2278-8387 Vol 2 (1), 2013

BPR Technologia : A Journal of Science, Technology & Management 23

involves dividing the market into major market segments, targeting one or
more of this segments, and developing products and marketing programs
tailor-made for these segments. In the first segmentation, the market is
divided from a unitary whole, to groups of buyers who might require separate
products and marketing mix. The marketer typically tries to identify different
segments in the market and develop profiles of resulting market segments.
The second step is market targeting in which each segments attractiveness is
measured and a target segment is chosen based on its attractiveness. The third
step is product positioning which is the act of establishing a viable
competitive position of the firm and its offer in the target segment chosen. In
the process of segmentation, the market can be divided into major segments
which are gross slices of the market, or into smaller specially formed
segments, otherwise known as niches. Niche customers have a specific set of
needs which the marketer tries to address. While a market segment attracts
several competitors, a niche attracts fewer competitors and therefore, a
company should clearly define its target segment and devise strategies to
target the customer, so that it has a competitive advantage in the segment. An
important criterion for market segmentation the economic system in which
we find agricultural sector, industrial sector, services sector, household sector,
institutional sector and rural sector requiring of weight age while segmenting.

Customer Relationship Management

The marketing strategy consists of a very clear definition of prospective customers and their

needs and the creation of marketing mix to satisfy them. A recent development in this regard
is Customer Relationship Management (CRM). It is a business strategy to learn more and
more about customer behavior in order to create long term and sustainable relationship with
them. It is a comprehensive process of acquiring and retaining selective customers to generate
value for the bank and its customers. Under CRM, acquisition of customers is done through
personal visits, media advertisement or word of mouth from existing customers. Customer
retention is carried out through data warehousing and mining tools, customer service and call
services, and improved customer value is obtained through cross-selling and up selling to the
retained customers. The concept of data warehousing and data mining used in CRM helps in
seeking information about individual customers and their needs on a regular and systematic
basis. Data warehousing builds customer wise data by mapping it from various services and
products used by the customers such as deposits, credits, foreign exchange, e-business, safe
custody, lockers, bill collection, etc. Data mining carries out various types of analysis on
collected data to determine customer behavior with respect to product, price and distribution
channels, and offers a holistic view of every customer at a given point of time. The customer
information gathered by the bank in their day-to-day banking operations is often sufficient for
effective data storage. However, many times, it needs to be supported by data collected from
outside sources and agencies.

Identification of Target Customers & their Needs

This is an important area in formulation of a marketing strategy. Unless the bank has clear
idea about the customers it wants to serve, it is not possible to work out products to satisfy
their needs. This identification process involves: -

Finding out profile of present customers in terms of their education, occupation,

income,geographical location, population group, age, sex, marital status, products and
service their purchase, their habits, tastes & preferences, their businesses & future

prospects ,etc
Finding out opinions of existing customers about the services provided by the bank
and their suggestions for improvement in present services and introduction of new

services.
Collecting such information from the persons who are not currently customers of the

bank.

All this can be done by conducting a survey of customers and non-customers of the bank.
Moreover, this process of seeking information about the market must form an integral part of
the system and must be done on a regular basis. The survey would give valuable information
about profiles and opinions of customers and non-customers of the bank, and it can be
analyzed to find out the target group of the customers and their felt and latent needs.

Marketing Mix in Bank

The second element in formulation of marketing strategy is development of proper marketing
mix, so as to satisfy the needs of the target group of customers. This would involve decisions
regarding product, place, price, promotion, process, physical evidence, and people.

Figure 2: 7ps of marketing mix

Price:
It refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall business
plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a
product. Pricing in case of services is rather more difficult than in case of products. If you
were a restaurant owner, you can price people only for the food you are serving. But then
who will pay for the nice ambience you have built up for your customers? Who will pay for
the band you have for music? Thus these elements have to be taken into consideration while
costing. Generally service pricing involves taking into consideration labor, material cost and
overhead costs. By adding a profit mark up you get your final service pricing.

Product:
It refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't
do any good. The product in service marketing mix is intangible in nature. Like physical
products such as a soap or a detergent, service products cannot be measured. Tourism
industry or the education industry can be an excellent example. At the same time service
products are heterogenous, perishable and cannot be owned. The service product thus has to
be designed with care. Generally service blue printing is done to define the service product.
For example a restaurant blue print will be prepared before establishing a restaurant
business. This service blue print defines exactly how the product (in this case the restaurant)
is going to be.

Place:
It refers to the point of sale. In every industry, catching the eye of the consumer and making
it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay
a premium for the right location. In fact, the mantra of a successful retail business is 'location,
location, location'.Place in case of services determine where is the service product going to be
located. The best place to open up a petrol pump is on the highway or in the city. A place
where there is minimum traffic is a wrong location to start a petrol pump. Similarly a
software company will be better placed in a business hub with a lot of companies nearby
rather than being placed in a town or rural area.

Promotion:
This refers to all the activities undertaken to make the product or service known to the user
and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct
marketing, contests and prizes. Promotions have become a critical factor in the service
marketing mix. Services are easy to be duplicated and hence it is generally the brand which
sets a service apart from its counterpart. You will find a lot of banks and telecom companies
promoting themselves rigorously. Why is that? It is because competition in this service sector
is generally high and promotions is necessary to survive. Thus banks, IT companies, and
dotcoms place themselves above the rest by advertising or promotions.

People :
People is one of the elements of service marketing mix. People define a service. If you have
an IT company, your software engineers define you. If you have a restaurant, your chef and
service staff defines you. If you are into banking, employees in your branch and their
behavior towards customers defines you. In case of service marketing, people can make or
break an organization. Thus many companies nowadays are involved into specially getting
their staff trained in interpersonal skills and customer service with a focus towards customer
satisfaction. In fact many companies have to undergo accreditation to show that their staff is
better thanthe rest. Definitely a USP incase of services.

Process :
Service process is the way in which a service is delivered to the end customer. Lets take the
example of two very good companies McDonalds and FedEx. Both the companies thrive
on their quick service and the reason they can do that is their confidence on their processes.
On top of it, the demand of these services is such that they have to deliver optimally without
a loss in quality. Thus the process of a service company in delivering its product is of utmost
importance. It is also a critical component in the service blueprint, wherein before
establishing the service, the company defines exactly what should be the process of the
service product reaching the end customer.

Physical Evidence : The last element in the service marketing mix is a very important
element. As said before, services are intangible in nature. However, to create a better
customer experience tangible elements are also delivered with the service. Take an example
of a restaurant which has only chairs and tables and good food, or a restaurant which has
ambient lighting, nice music along with good seating arrangement and this also serves good
food. Which one will you prefer? The one with the nice ambience. Thats physical evidence.
Several times, physical evidence is used as a differentiator in service marketing. Imagine a
private hospital and a government hospital. A private hospital will have plush offices and
well-dressed staff. Same cannot be said for a government hospital. Thus physical evidence
acts as a differentiator.
This is the service marketing mix (7p) which is also known as the extended marketing mix.

CHARACTERISTICS OF SERVICE MARKETING MIX:

The marketing mix which is a tool used by markets to exhibit the following features.
1. The marketing mix represents the important internal elements or ingredients that make up
an organization' marketing programme.
2. Services marketing mix is different from traditional marketing mix in the context of
services.
The four is Ps of marketing mix namely, product, place, price and promotion are derived
from a list developed by Harvard Business School in the 1960s. The original list included
twelve elements: Product plan, pricing, branding, channels of distribution, personal selling,
advertising; promotion, packaging, display, servicing, physical handling, fact finding and
analysis. Over a period of time, the marketing mix gained a wide acceptance of the markets
and the four Ps were adopted. Many authors have extended four Ps to five, seven and eleven

key elements, which should be considered in the marketing mix. Several authors emphasise
that a different marketing mix is needed for services. Marketing mix elements for service
industries like banking and airlines are different from those of professional services.
3. According to Simon Majaro, three factors determine whether or not a specific element
should be included in a firm's marketing mix:
(i) The level of expenditure on a given ingredient in the marketing mix.
(ii) The perceived level of elasticity in customer responsiveness. For example, in the case of a
government body, prices may be set externally without being included in the marketing mix. 19
(iii) Allocation of responsibilities i.e. a well structured marketing mix needs a clear cut
allocation of responsibilities.
4. Making any decision about marketing mix depends upon how the service is to be
positioned and the market segments to be addressed.
5. Marketing mix is a blending process.
6. Service marketing mix is an extended form of traditional marketing mix. The inclusion of
additional elements (people, process, and physical evidence) is the result of the intangibility,
inseparability and heterogeneity of services.
7. Each element in the marketing mix supports other elements. They reinforce the positioning
of the product and deliver appropriate service quality to achieve competitive advantage.
Having identified the various features of the framework of service marketing mix, a brief
description

of

each

element

is

attempted

in

the

following

paragraphs.

The service marketing mix consists of 7 Ps as compared to the 4 Ps of a product marketing

mix. Simply said, the service marketing mix assumes the service as a product itself. However
it adds 3 more Ps which are required for optimum service delivery.

Figure3: 4Ps of
product marketing

Importance of the marketing mix

All the elements of the marketing mix influence each other. They make up the business plan for a
company and handled right, can give it great success. But handled wrong and the business could take
years to recover. The marketing mix needs a lot of understanding, market research and consultation
with several people, from users to trade to manufacturing and several others.

SIGNIFICANCE OF SERVICES MARKETING:

Proper marketing of services contributes substantially to the process of development. If innovative
marketing principles are followed in services marketing, the socio-economic transformation will take
place at a much faster rate. In future, the service sector would operate in a conducive environment
offering great potential. If the opportunities are properly utilised by the service sector, it will lead to
an all round development of the economy. The significance of the service economy may be discussed
under the following headings:

1. Generation of employment Opportunities:

The components of the service sector are wide and varied. For example, the service
sector includes personal care services, education services, medicare services,
communication services, tourism services, hospitality services, banking services,
insurance services, transportation services, consultancy services, etc The organised
and systematic development of the service sector would create enormous employment
opportunities. Application of marketing principles in the I service sector is
instrumental to the development of the economy. However, it is appropriate to
mention that India has not been successful in utilising the potential of the service
sector. As seen in Table 1.1, in USA about 80 per cent of job opportunities are offered
by the service sector compared to India's 60%. So, the significance of the service
sector lies in its capacity to create job opportunities. If the service sector is properly
developed, it will solve the problem of unemployment in India to a great extent. After
liberalisation policy, the service sector in India has been emerging as a dominant
component in the economy.
2. Optimum Utilisation of Resources:
India is bestowed with rich resources. Particularly, the human resources available in
India favour the growth of the service sector. While the labour content in most
manufacturing activities is dropping steadily with use of technology, the labour
content in the service sector is comparitively high. As India is rich in human
resources, service sector can grow steadily. Moreover, service sector offers excellent
export opportunities too. In fact, the important agenda of the World Trade
Organisation (WTO) is opening up of market for services. So, by exploiting these
factors, India can maximise its services export. Though its performance in the export
of computer software is quite commendable already, it should concentrate on other
areas as well. Service firms such as personal care services, the entertainment services,
tourism services, hotel service contribute to the growth of the economy without

consuming any natural resources. In a sense, the growth of service firms of this kind
conserve natural resources. Thus, services marketing help conserve the valuable
resources for future generations.
3. Capital Formation:
There are indications that Services will grow more rapidly in the near future.
Economic, social and political factors signal an expansion of the service sector.
Investments and job generations are far greater in the service sector compared to
manufacturing. It is estimated that telecom alone will account for an investment of Rs.
150,000 crores in the coming years. Investment encourages capital formation. For the
development of a - 2 - nation, the flow of capital should be directed towards the most
productive uses. If investments are made in the service sector, it will contribute to the
nation-building process. With increased developmental activities, the per capita
income increases which, in turn, facilitates capital formation. Performance of
profitable services can absorb higher investments, thereby accelerating the rate of
capital formation.
4. Increasing the Standard of Living
:The standard of living of the people in any country would be decided on the basis of
quality and standard of products consumed or services availed in the day-to-day
living. Any development is transparent only when the living conditions of the masses
improve. When compared with developed countries, the standard of living in India is
far from satisfactory. Standard of living cannot be improved by offering more
opportunities for earnings. On the other hand, the standard of living is determined by
the availability of goods and services for citizens and a wise spending on them. The
development of services industry is sure to promote the standard of living of the
people.

5. Use of Environment-friendly Technology:

Now-a-days, almost all services are found technology-driven. Developed countries

are making full use of latest technology while rendering services. Technologies used
by service generating organisations such banks, insurance companies, tourism, hotel
services, , mmunicatiW1 services. and. education services are not detrimental in any
way to the environment. On the contrary, technologies used in manufacturing
organisations may have harmful effects on the environment. So, services industry do
not

pollute

the

environment

which

is

indeed

laudable.

SERVICES TRIANGLE
"Services marketing is about promises. Promises are made and promises are kept to
customers. Service triangle is the strategic framework which "reinforces the
importance of people in the ability of firms to keep their promises and succeed in
building customer relationships" - (MJ. Bitner) a services triangle is made up of three
types of marketing, namely
1. External marketing

2. Interactive marketing
3. Internal marketing
Company External marketing means making promises to the customers where as Internal marketing
means enabling those promises but the most important is Interactive marketing which is keeping
promises.

Figure 4 :service triangle

Services Triangle
The triangle shows three interlinked groups that work together to develop, promote and
deliver services. The key players are company, customers and the providers. Providers can be
employees of the firm, subcontractors or outsourced entities who actually deliver the
company's services. External marketing sets up customers' expectations and makes promises
to customers. In interactive marketing or real-time marketing, promises are kept by the firms'
employees, subcontractors or agents (service providers). If promises are not kept, customers
become dissatisfied and may switch firms. Internal marketing consists of the activities that
management engages itself in order to aid the providers to deliver on the service promise recruiting, training motivating and rewarding. All the three sides of the triangle should be
properly aligned. They work together to ensure what is promised through the external
marketing is delivered. To achieve this, the enabling activities should be aligned with the role
of service providers.

Chapter-2
HISTORY OF HDFC BANK

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995. The Housing Development Finance

Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1416 branches spread over 550 cities across India. All branches are linked on an online
realtime basis. Customers in over 500 locations are also serviced through Telephone
Banking. The Bank also has a network of about over 3382 networked ATMs across these
cities.
The promoter of the company HDFC was incepted in 1977 is India's premier housing finance
company and enjoys an impeccable track record in India as well as in international markets.
HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large shareholder
base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the
Indian environment.
The shares are listed on the Bombay Stock Exchange Limited and the National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange.
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share
of HDFC Bank for every 29 shares of CBoP.

The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be
over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms
of increased branch network, geographic reach, and customer base, and a bigger pool of
skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks
in the New Generation Private Sector Banks. As per the scheme of amalgamation approved
by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers.

The bank has three key business segments:

Wholesale Banking Services :
The Bank's target market ranges from large, bluechip manufacturing companies in the
Indian corporate to small & midsized corporates and agrobased businesses.
Retail Banking Services:

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a onestop window for all
his/her banking requirements.
Treasury:
Within this business, the bank has three main product areas Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. The Treasury
business is responsible for managing the returns and market risk on this investment portfolio.

BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank
has three key business segments:
Wholesale Banking:

The Banks target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian corporates including

multinationals, companies from the domestic business houses and prime public sector
companies. It is recognised as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Treasury:

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the banks Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.

Retail Banking:

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of

customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is
also a leading provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association
with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By March 2015, the bank had a total card base
(debit and credit cards) of over 25 million. The Bank is also one of the leading players in the
merchant acquiring business with over 235,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

Chapter-3
RATINGS / AWARDS
Credit Rating :
HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis &
Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk".
CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which
represents "superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating
to the bank's deposit programme, with the outlook on the rating as "stable". This rating
indicates "highest credit quality" where "protection factors are very high".
HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion
rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of
"CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the
rating "AAA (ind)" with the outlook on the rating as "stable". In each of the cases referred to

above, the ratings awarded were the highest assigned by the rating agency for those
instruments.

Corporate Governance Rating:

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced value
creation and corporate governance practices" in future. The bank was assigned a 'CRISIL
GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect to
wealth creation for all its stakeholders while adopting sound corporate governance practices
is the highest

Awards and Accolades :

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We
realized that only a single-minded focus on product quality and service excellence would help us get
there. Today, we are proud to say that we are well on our way towards that goal.

Over the years, the Bank has received recognition and awards from several leading organizations and
publications, both domestic and international

Some important awards that the Bank won:

2015

AIMA Managing India Awards 2015

- Business Leader of the Year - Aditya

Puri

Barron's

- World's 30 Best CEOs - Mr Aditya

Puri

Finance Asia poll on Asia's Best - Best Managed Public Company Companies 2015

India'
Best

CEO-

Aditya

Puri

Best Corporate Governance- Rank 3

Best Investor Relations- Rank 3
J. P Morgan Quality Recognition Award

Best

in

class

Processing Rates

2014

straight

Through

Euro money

- HDFC Bank wins Best Private Banking Services for

Super affluent clients for 5 years in a row at Euromoney
Awards

Euro money Private - Best Private Banking Services award for Net-worthBanking and Wealth specific services category for Super affluent clients (US$
Management

Survey 2015

million
Best

to

Private

US$

Banking

Services

million).
award

Asset

Management
FE

Best

Bank -

Awards

Best

Bank

in

the

Winner

New

Private

sector

Profitability

- Winner - Efficiency
Business Today - KPMG Study 2014

Best

Large

Bank

Overall

- Best Large Bank - Growth

Businessworld-PwC -

Best

Large

Bank

India Best Banks - Fastest Growing Large Bank

Survey 2014
Asiamoney FX Poll 2014

Best

Domestic

Provider

of

FX

options

- Best Domestic Provider of FX products & Services

- Best Domestic Provider of FX research & market
coverage
- Best Domestic provider for FX Services

The Asian Banker

Strongest Bank in India in the Asian Banker 500 (AB

500) Strongest Bank by Balance Sheet Ranking 2014

Dun & Bradstreet - - Best Bank - Managing IT Risk (Large Banks)

Polaris

Financial -

Technology

Best

Bank

Mobile

Banking

(Large

- Best Bank - Best IT Team (Private Sector Banks)

Banks)

Banking

Awards

2014
Forbes Asia

Fab 50 Companies List for the 8th year

BrandZ TM Top
Most

50 India's Most Valuable Brand

Valuable

Indian Brands study

by Millward Brown
Finance

Asia -

Best

Bank

Country

Awards -

Best

CEO-

Rank

2014 and poll on India's

Best

CSR

Top - Best CFO - Rank 2

Companies
Asia money

Best of Best Domestic Banks - India

Dun & Bradstreet - Best Corporate in Banking Sector

Manappuram
Finance
Corporate
2014

Limited
Award

India

Rank

1
1

Chapter-4

7 Ps OF HDFC BANK

The seven Ps' are: product, price, promotion, place, people, processes and physical evidence.
He was delivering a Business Line Club lecture on Marketing of bank services' at the
Department of Commerce of Manipal University at Manipal. The event was sponsored by
Syndicate Bank.

Explaining the seven Ps', he said the product' satisfies the needs and wants of customers.
The price' of the product is fixed in the form of interest, service charges and other fees to
cover transaction costs, overheads, risk premium and to generate a reasonable surplus for the
bank.
He said promotion' includes all publicity vehicles that aim at customer information,
education and image building.
On the place' of a branch, he said suitable location and convenience determine the choice of
a bank by a customer. A bulk of the banking business for any branch should come from its
immediate neighborhood.
On the people' factor in marketing a bank service, DrNayak said a team of motivated and
dedicated staff with positive attitudes in favour of business development and offering high
service quality will make the bank the most preferred one for the customers.
Highlighting the role of processes' in providing banking services, he said systems and
procedures are viewed as vehicles for the delivery of customer satisfaction.
Hence, banks keep on refining or reinventing or re-engineering their systems and procedures
to keep managing customers' ever increasing expectations, he said.
The seventh P' physical evidence will help evaluate the service before its purchase and
to assess the customers' comfort zone with the service during and after consumption. The
conditions like lighting, temperature, noise and colour create favourable perceptions among
customers, he said.

Chapter-5
HDFC POSITION AMONG OTHER BANKING SECTOR
NEW DELHI: Private sector lender HDFC BankBSE -1.49 % is the only Indian entity to find
a place among the top 100 most valuable brands globally, along with Apple, Google,
Microsoft, IBM and Facebook.
HDFC Bank is ranked at 74th position in the BrandZ list compiled by Millward Brown, a
global research agency, in association with WPP.
As per the report, the bank is the India's most valuable brand with a value of USD 14 billion.
Apple tops the chart with a brand value .

Figure 4: HDFC shares

COMPETITORS
State Bank of India
With a market capitalization of about INR 216,128.73 crore, SBI is the second most-valued
bank in India It and is perhaps the most trusted one, being a state-owned bank. The bank has
a strong network of over 13,000 branches spread across the nation and has about 190 foreign
offices in 36 countries. Along with HDFC Bank, SBI also features among the top 50 global

banks (going by market capitalization). It is also one of the largest employers in the country
and provides employment to over 220,000 personnel. SBI manages assets worth about USD
390

billion

in

all.

(to

be

converted

into

INR----

otherwise

inconsistent)

ICICI Bank Limited

ICICI Bank is the third largest entity in the Indian banking space, with a market capitalization
of INR 184,547.26 crore.ICICI Bank has a customer base of over 2.5 million and boasts of an
extensive network of 4050 branches across the country. With 12,475 ATMs and assets worth
USD 99 billion, the bank is currently celebrating 60 years of existence. ICICI was formed as
a World Bank initiative in 1955.The bank is headquartered in Vadodara, Gujarat and has an
international presence in 19 countries. The banks employee strength was estimated at over
72,000 last year when it overtook HDFC Bank in terms of peopleemployed.

Axis Bank
With a market capitalization of about INR 134,685.68 crore, Axis Bank takes its place at the
fourth position among Indian banks.Founded in 1994 as UTI Bank, Axis Bank now has a
network of 2402 domestic branches and 12922 ATMs spread across the nation.The bank also
has seven international offices including the ones in Hong Kong, Singapore, Colombo,
Dubai, Abu Dhabi, and Shanghai.Axis Bank employs over 37,901 employees and is reported
to have net assets worth about USD 53 billion. Apart from retail banking, Axis Bank also
operates in NRI Services, Investment banking and treasury operations and corporate banking.

Kotak Mahindra Bank

Kotak Mahindra Bank, headed by Mr. Uday S Kotak, and with a market capitalisation of INR
109,631.60 crore comes next. Kotak Mahindra Bank is currently poised for a spectacular
growth due to an all-stock merger with ING Vysya Bank. Kotak Mahindra shall now become
the fourth largest private bank in the country in terms of the business done.The combined
banking company will now have a network of 1,214 branches across the country. The bank is
likely to have an employee strength of about 30,000 after the merger. The combined market
capitalisation

is

estimated

to

be

about

INR

1.25

lakh

crore.

IndusInd Bank
Founded in 1994, Hinduja Group owned IndusInd Bank has a market capitalisation of about
INR 50,100.41 crore. The bank employs over 15,500 employees and has a network of 638
branches and 1238 ATMs across the country. With international offices in London and Dubai,
IndusInd Bank is known for its strong remittances business. The bank has an exceptionally
strong

business

base

in

Mumbai,

Delhi,

and

Chennai.

Bank of Baroda
Bank of Baroda is another large PSU banking company in India with a market capitalization
of about INR 38601.08 crore.The bank is estimated to have over 5193 branches and 38,737
employees. With a significant presence in about 25 countries, the Bank of Baroda balances
out NRI services with rural and agricultural finance. The bank is one of the major banking
operators in Indias rural sectors.

Yes Bank
Yes Bank was incorporated in the year 2004 by Mr. Rana Kapoor and Mr. Ashok Kapoor, and
currently has a market capitalisation of about INR 35,169.20 crore.With a strong network of
about over 630 branches in 375 cities, and with over 1150 ATMs spread across the country,
Yes Bank is among the fastest growing banks of India. The bank employs about 12000
employees

and

has

high

ambitions

for

the

years

to

come.

Punjab National Bank

Founded in 1894, Punjab National bank is one of the oldest banks in India. Unlike most
Indian banks that have their headquarters in Mumbai or Gujarat, the Punjab National Bank
has its headquarters in Delhi and has a market capitalization of about INR 30312.73 crore.
Like other PSU banks, the bank has a major focus on agricultural and rural financing but also
has a widespread international presence.The bank has 8.9 crore customers, 6081 branches in
India and abroad and a network of 6940 ATMs spread across the country.

Canara Bank
Canara Bank is another PSU that has made its mark in the Indian banking sector with a
market capitalization of about INR 18630.10 crore. Nationalised in 1976, the bank has a

network of about 3600 branches spread across the country. With 7599 ATMs, the bank is
among the first PSUs in the country to emphasise on e-banking and online services. Apart
from commercial banking, Canara Bank has also become a strong provider of corporate
banking services in India.

Chapter -6

PLANS
IT has been observed that most parents start planning for the childs future quite late. Their
focus on meeting the rearing priorities usually leads to overlooking their financial planning.
To reap the benefits of financial investments, it is always advisable to opt for financial
planning for childs future during the childs formative years (3-8 years) to ensure ready
sufficient funds when the child is ready to embark on a career. Given the rising costs of
school fees, this is a significant moment of truth for todays parents. The earlier they start
planning and investing, the longer is the investment period and better the returns.
There is a bewildering range of choices available today in child insurance plan market. So,
what do parents do? Parents must choose child insurance plans that are designed to serve the
sense of responsibility that sets in new parents about giving the best to their childs needs. If
chosen well, a child plan is a solid long-term vehicle to manage the future of a childs
different milestones. These plans inculcate a sense of discipline among the parents to invest
systematically over the long-term. These investments can be made in funds that can earn
returns that match the escalating costs of education. Finally, these plans have options that
protect the childs future plans in the unfortunate event of death of the parents.
So, how should you choose an insurance plan for your childs future? I will offer you four
simple tips.
Start planning and invest for your childs future as early as possible :

Insurance companies offer plans with maturity benefits structured to coincide with the child
attaining 18 yrs or timed release of payouts at critical life stage from 18 yrs. onwards. These
plans offer a long horizon to invest which helps you systematically build the corpus. So,
quantify your goals with a certified financial planner and choose a plan that encourages such
long-term behavior.
Invest in plans that offer premium waiver benefit:
Most child plans offer premium waiver benefit either as an option or as an essential feature in
the main plan. What premium waiver does is this in case of the death of the parent, the
insurer waives off future premiums to be paid while the insurer continues to fund the
insurance policy till the maturity. This makes sure that the maturity benefit that was set for a
certain age remains intact as planned in addition to the death benefit paid.
Choose a plan that offers a mix of investment options and adequate risk cover: Make
sure you invest in a child plan which offers a balanced mix of growth & debt funds and
option of risk cover. Empirically, equities give the best returns in the long run. Make sure that
insurance plan that you choose offers you the right mix of capital protection and growth.
Also, choose a plan that has the system transfer option to make sure your gains in the
investment are protected. Lastly, take adequate risk cover (atleast twenty times the annual
premium) to ensure that the death benefit is a substantial lumpsum that can help your family
in case of your demise.
Read the product brochure and understand the costs of the product : Insurers lay out the
charges that the customer needs to pay for the policy clearly in the product brochure.
Compare the products available in the market on their charges, the reputation of the insurer,
claim settlement ratios (available on the websites), flexibility offered and their service quality
perception.

Buying a child insurance plan is a significant step in securing your childs future. I suggest
you make it a high involvement purchase by researching the products in the market, probing
the insurance agent on the features, charges and past performance and satisfying yourself
with evidence on every aspect of the product. Do this and your child will think of you as
smart parents twenty years from now. That should make it worth it.

HDFC Life is a joint venture between Housing Development Finance Corporation Limited
(HDFC), India's leading housing finance institution and Standard Life plc, the leading
provider of financial services in the United Kingdom.
HDFC Ltd. holds 70.64% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity
in the joint venture, while the rest is held by others.
HDFC Life's product portfolio comprises solutions, which meet various customer needs such
as Protection, Pension, Savings, Investment and Health. Customers have the added advantage
of customizing the life insurance plans, by adding optional benefits called riders, at a nominal
price. The company currently has 26 retail and 7 group products in its portfolio, along with 9
optional rider benefits catering to the savings, investment, protection and retirement needs of
customers.
HDFC Life continues to have one of the widest reach amongst new insurance companies with
over 414 branches in India touching customers in over 900 cities and towns.The company has
also established a liaison office in Dubai. HDFC Life has a strong presence in its existing
markets with a strong base of Financial Consultants.

HDFC FUTURE PLANS

child plans can help parents provide a better future to their children:
1. Education is getting more expensive by the year. Inflation in education probably
outscore inflation in every other sphere of life.
2. Marriage an occasion that comes in the lives of your child, so you want to make it as
unforgettable as possible
3. House prices are so high that for many owning a roof over the head is a dream that stays
just that. Parents would like to provide their children with a house by contributing at least
towards the downpayment.
Child plans can play a role in helping parents realize all this and more.
How child plans work
By setting aside money towards a child plan, parents can amass a significant corpus over a
period of time. The money can then fund the aforesaid objectives.
Child plans are available in two variants
1. traditional or endowment plans which invest in debt investments like government
securities (gsecs) and corporate bonds among other options.
2. market-linked or unit-linked plans (ULIPs) which invest in equities

Parents must choose an option that is best suited to their objectives and risk appetite.
Importance of riders
While planning for childs future, it pays to make a comprehensive plan so as to cover all
possibilities. One way to achieve this is through riders.
Simply put, a life insurance rider is an add-on that enhances the cover of the primary plan in
case of an event. Among many, here are two riders in particular that can add value to the child
plan:
1. Premium waiver
Most child plans offer premium waiver benefit either as an option or as an essential
feature of the primary plan. The premium waiver is particularly important as in case
of the death of the parent, the insurer waives off future premiums while continuing to
fund the insurance policy till maturity. This makes sure that the maturity benefit that
was set for a certain age remains intact as planned, in addition to the death benefit
paid.
2. Accidental death/dismemberment benefit
You can safeguard against accidental death or disabilities arising as a result of
accidents, over the term of the child plan. In case of accidental death/dismemberment,
the rider comes into play and pays out an amount, usually equal to the sum assured.
The primary child plan continues and will pay out the sum assured on maturity.

Retirement plans
For a majority of Indians, used to working as salaried employees, the retirement age is fixed,
so to speak. Most companies retire their employees by 60 years or thereabouts; some even
earlier than that by offering them the golden handshake.
Individuals could of course chart a different course altogether. They may like being busy and
could work past retirement in a part-time job or conversely they may decide to retire earlier if
they believe they have saved enough money to achieve financial independence postretirement.
So there is no fixed retirement age what is important is that the individual has adequate
money to meet his post-retirement obligations.
Post-retirement income
Individuals looking for steady income, post-retirement can consider taking an annuity.
This involves making a lumpsum investment in the annuity plan, which then makes payment
to the individual on a future date or a series of dates.
The income payout is determined by a number of factors, including the tenure of the annuity.
The income depends on whether he has opted for a guaranteed payout (fixed annuity) or a
payout stream determined by the performance of the annuity's underlying investments
(variable annuity).
The individual can opt to receive the income payments for the rest of his life or for a fixed
period of time.

Provision for medical expenses

Medical treatment, particularly for serious conditions are no longer affordable for a majority
of individuals. And when you have retired, there is no regular income to fall back on. This
makes the task of managing medical emergencies all the more painful.
Take cardiovascular ailments for instance. Treating a heart ailment, especially if it involves
surgery, can be expensive.Unfortunately, most individuals arent prepared for such an event.
Cost of a heart surgery in India could vary in the region of Rs 1.5 lakhs to Rs 3 lakhs. Five
years later it could be a lot more expensive at over Rs 3 lakhs and at over Rs 8 lakhs after ten
years, assuming 10% rise in annual cost.
If the individual hasnt saved enough money, he would have no option other than to dip into
his savings and investments or borrow money as a last resort.
One way to provide for medical emergencies is by taking a health plan from an insurance
company. Health plans offer a lot of flexibility both in terms of coverage and disbursal. For
instance, certain health plans cover as many as 30 critical illnesses and over 80 surgical
procedures. Payment towards illness/surgery is disbursed regardless of actual medical
expenses. The policy continues even after the benefit payment on selected illnesses.
Health Insurance plan
health insurance needs of individuals have evolved, insurance companies have been quick to
innovate by launching better plans offering a range of options.
Before selecting a suitable health insurance plan, it is important to keep in mind that there is
no one size that fits all. So if your friend or colleague has selected a plan, it does not become

an automatic choice for you. The needs of a healthy twenty-five year old are vastly different
from the needs of a family, which is markedly different from an individual on the threshold of
retirement. Your health plan must address needs specific to you and your family.
Fortunately, there are a wide range of options for just about every situation and health
condition. Every health insurance plan has different ways of handling different health
conditions so its important to know these options and whether they suit you.
First, you must determine what kind of coverage you need and whether or not you can afford
it. Your insurance advisor should be of assistance in arriving at an ideal health cover that
takes into account needs of your family. Next scour the insurance landscape for a health
insurance policy that best meets your requirements.
Next scour the insurance landscape for a health plan that meets your requirements.

Broadly, go for health plans that offer the following options

Maximum period of time over which the premium remains constant even after making
claims

Enhanced cover on claim-free years at same premium

Expansive cover of illnesses and health conditions. So if there is a family history for a
particular health condition like heart ailments, ensure the health plan has it covered.

Flexibility to tailor-make the plan in terms of health cover, benefit options and
premium payment.

Hassle-free claim process with cashless benefits on surgeries and hospitalization

across a wide network of hospitals.

Tax benefits under relevant sections of the law

These are the options that must be evaluated before selecting a health insurance plan. They
need close scrutiny because you can never be too careful when it comes to your and your
familys health.

CONCLUSION

Project is all about identifying the Role of marketing in banking industry. Use of marketing
mix in banking sector is increasing day by day with 4Cs. So bank marketing concept is very
important for every bank. The main purpose of this study is to get an overview of bank
marketing and to find out of role of marketing in the banking industry and see that how
marketing mix (product, price, place, & promotion) is most important for a bank. Use of 4p
and 4c (customer solution, customer cost, communication, convenience) for bank and
implementation of that thing in bank marketing concept and way marketing is making
important for a bank? And combination of extra 3Ps (people, process, Physical evidence) are
also very important for a bank in present scenario. To summarize all these, the project
comprises detailed study of the role of marketing in banking sector. Bank Marketing has
become a necessary survival weapon and is fundamentally changing the banking industry
worldwide. The rise of Bank Marketing is redefining business relationships and the most
successful banks will be those that can truly strengthen their relationship with their
customers. Technology innovation and fierce competition among existing banks have enable
a wide array of banking products and services, being made available to retail and wholesale
customer through an electronic distribution channel, collectively referred to as e-banking.
Technology is altering the relationships between banks and its internal and external
customers.