Service Marketing in Banking Industry

Presented by: Mohit Grewal (088) | Palak Bansal (090) Kirti Sharma (096) | Satyam Saurabh (097)

CONTENT
About Banking and Banking Industry About ICICI 7 Ps of marketing wrt ICICI RATER model wrt ICICI Gap Model wrt ICICI

About Banking Industry

BANK MARKETING
Market research:
Most profitable markets and needs (Present & Future)

Adapting to changing Environment

Goal Setting & Planning

Product Development,
Pricing, Promotion
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Importance of Bank Marketing

Ultimate aim-

Bank cannot exist without the customers

Purpose:
to create, win, and keep a customer

Customer:
central focus of Banking activities

total customer satisfaction affected by staffs performance

Profile of
India's largest private sector bank Founded in 1954 HQ in Mumbai, India K. V. Kamath (Chairman) | Chanda Kochhar (MD& CEO) PAN- India: 3,529 branches | 11,063 ATMs Presence in 19 countries Amongst Big Four banks of India, First Indian Bank to be listed on NYSE

Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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1.Personal Banking Accounts and Deposits- iWish, Dream Deposits, FDs, Family Banking, Privilege Banking, b2 Savings A/c, Young Stars Loans- Home, Car, Commercial Vehicle, Personal Loan etc Cards- Credit, Debit, Prepaid, Corporate Insurance- General and Life Investments- Mutual Funds, ForEx, Bonds, Senior Citizens Savings Scheme Demat Account- e-Instructions, Digitally Signed Statements, Mobile Requests and Alerts Agri and Rural Banking- Agri Corporates, Micro Banking, Tractor Loans, Farmer Finance Internet banking- funds tranfer, pay bills, shop, book tickets (Reward Points)

Mobile banking, ATM

2.Privilege Banking HNI- High NetWorth Investors Early Days | Family and You | Retirement | Protecting Your Loved Ones 3.Wealth Management Grow, Manage, Protect Your Wealth

4.Private Banking
Customized Financial Solutions for: You, Your Family, Your Business, Your Retirement, Your Legacy Real Estate Services, Advisory, Investment Banking, Insurance, 10 Investment.

5.NRI Banking Online Money Transfer Facility Worldwide through www.money2india.com Superior Exchange rates

6.Corporate Banking
E-Fund Transfers, online Tax, e-collection, Utility Bill Payment, Technology Finance, Project Finance, 7.Business Banking Current Accounts and Services, Business Loans, Trade Services, 11 Advisory Services

Retail Financial Services

Loans

Corporate Financial Services

Term Loans Project Finance Commercial Bank Investment Bank Venture Capital Genl. Insurance IT Services

Mortgages
Credit Cards Personal loans Deposits Life Insurance Mutual funds

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Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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Accessibility of the place Safety and Security provisions Infrastructure Facility Market Coverage

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PAN- India: 3,529 branches 11,063 ATMs Subsidiaries in Canada, Russia, United Kingdom (estd. branches in Belgium and Germany)
Branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Dubai

Representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia, Indonesia.
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Canada USA

UK China UAE

Singapore

Phase I : Offices opened/to be opened shortly Phase II : Geographies under advanced stage of evaluation 17

Branches in 33 States and Union Territories in India. ANDHRA PRADESH ARUNACHAL PRADESH ASSAM BIHAR CHANDIGARH CHHATTISGARH DADRA and NAGAR HAVELI DAMAN and DIU DELHI GOA GUJARAT HARYANA HIMACHAL PRADESH JAMMU and KASHMIR JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PONDICHERRY PUNJAB RAJASTHAN SIKKIM TAMIL NADU TRIPURA UTTAR PRADESH UTTARAKHAND WEST BENGAL

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Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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The pricing decisions are found to be instrumental in motivating and influencing the target market. RoI regulated by: RBI and other charges are controlled by IBA. ICICI develops 2 fold strategy: 1st interest, commission and fee charges | 2ndinterest paid

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Dependent Variables: Quality of service Rate to meet Banks objectives

Market Rate of Core product Sales and Operations

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Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
25

Marketing Mix
7 Ps of Marketing
Product Place Price Promotion Process People Physical Evidence
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STRENGHTS
ICICI is the second largest bank in terms of total assets and

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market share Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs. 51.51 billion and located in 19 countries One of the major strength of ICICI bank according to financial analysts is its strong and transparent balance sheet ICICI bank has first mover advantage in many of the banking and financial services. ICICI bank is the first bank in India to introduce complete mobile banking solutions and jewelry card The bank has PAN India presence of around 2,567 branches and 8003 ATMs ICICI bank is the first bank in India to attach life style benefits to banking services for exclusive purchases and tie-ups with best brands in the industry such as Nakshatra, Asmi, Ddamas etc ICICI bank has the longest working hours and additional services offering at ATMs which attracts customers

WEAKNESSES
Customer support of ICICI section is not performing well

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in terms of resolving complaints There are lot of consumer complaints filed against ICICI The ICICI bank has the most stringent policies in terms of recovering the debts and loans, and credit payments. They employ third party agency to handle recovery management There are also complaints of customer assault and abuse while recovering and the credit payment reminders are sent even before the deadlines which annoys the customers The bank service charges are comparatively higher The employees of ICICI are bank in maximum stress because of the aggressive policies of the management to

OPPURTUNITIES
Banking sector is expected to grow at a rate of 17% in

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the next three years The concept of saving in banks and investing in financial products is increasing in rural areas as more than 62% percentage of Indias population is still in rural areas. As per 2010 data in TOI, the total number b-schools in India are more than 1500. This can ensure regular supply of trained human power in financial products and banking services Within next four years ICICI bank is planning to open 1500 new branches Small and non performing banks can be acquired by ICICI because of its financial strength ICICI bank is expected to have 20% credit growth in the coming years. ICICI bank has the minimum amount of non performing assets.

THREATS
RBI allowed foreign banks to invest up to 74% in

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Indian banking Government sector banks are in urge of modernizing the capacities to ensure the customers switching to new age banks are minimized HDFC is the major competitor for ICICI, and other upcoming banks like AXIS, HSBC impose a major threat In rural areas the micro financing groups hold a major share Though customer acquisition is high on one side,

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RELIABILITY
Your ability to provide the service you have promised consistently, accurately, and on time. The following questions can be applied: How well do you provide the service that you've promised to your customers? Are your systems and processes robust and reliable? Is service delivery consistent and timely, across all service channels (including online)? Could you improve the quality of your service in any other way?

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ASSURANCE
The knowledge, skills, and credibility of staff; and their ability to use this expertise to inspire trust and confidence. The following questions can be applied: Do staff have the skills and knowledge needed to deliver a good service, across all channels? Do your people need any further training or development? Do staff inspire trust in customers? Is your service safe and secure?

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TANGIBLES
The physical evidence of the service you provide. This could be offices, equipment, employees, and the communication and marketing materials that you use. The following questions can be applied: Is the evidence of your service (products, packaging, marketing materials, website, offices, staff appearance, and so on) attractive and appropriate for your customers? Are your website FAQs useful, comprehensive, and up to date? And can people talk to a human being through other channels if their questions haven't been answered, or if your website is broken? Does physical or virtual evidence fit with your organization's brand?

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EMPATHY
The relationship between employees and customers. The following questions can be applied: Do your people build good relationships with customers? Is all communication with customers clear and timely? Do staff show empathy with customers? Do they understand why empathy is essential for providing a great service? Do your people genuinely care about customer needs? Are staff able to see things from a customer's point-of-view?

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RESPONSIVENESS
Your ability to provide a quick, high quality service to your customers. The following questions can be applied: Do you provide a prompt service, which is easy to access? Do you manage complaints and feedback appropriately? Are staff always willing and able to help customers? Do you resolve customer issues and problems satisfactorily, and in good time, across all service channels?

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Service Gap Analysis

Benefits offered by ICICI Bank

Pay

order facility Facility of demand draft RTGS facility NEFT facility Facility of free cheque book Mobile banking Net banking Insta alert facility

Customers Preferences
Online Fund Transfer Facility available of cash

deposit for inter or intra branch banking and cash withdrawal Free cheque book Payable at par cheque book facility Phone banking facility Insta alert facility Free pay orders/ demand draft Monthly statement Availability of loan Working hours of the bank

Customer Satisfaction Areas

Online

Fund Transfer

Inter or Intra branch banking cash deposit & cash withdrawal facility orders/ demand draft

Pay

Customer Dissatisfaction Areas

Phone
Insta

banking facility

alert facility of loan

Availability Working

hours

The GAP Model

Customer Needs and Expectation

1. Better Services.

GAP 1

2. Good Ambience. 3. Least attention paid to small customers.

Management Definition of these Needs

Management Definition of these Needs

GAP 2

1. No proper service design for customers.

2. Absence of Customer Defined Service Standards.

Translation into Design

Execution of Designs
1. No consistency in quality of service.

GAP 3

2. Customer Enquiry Constraints. 3. Unable to match the demand at peak hours. 4. Problems with Service Intermediaries.

Service Delivery

Service Delivery

GAP 4

1. Inadequate Horizontal Communication.

2. Overpromising. 3. Lack of Integration of Marketing Communication.

Advertising and Sales Promises

Customers Expectations

GAP 5

1. Overpromise, Under delivery. 2. Main customers- Corporate customers hence interpretation of a local customer varies differently.

Customer Perception

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