Marketing and Customer Service

WHAT IS MARKETING ?
IS SELLING & MARKETING ARE SAME ?
DEFINITION PETER DRUCKER

Marketing is not only much broader than
selling, it is not a specialised activity at all.
It encompasses the entire business.
It is the whole business seen from the point of
views of its final result that is from the
customers point of views.
Concern and Responsibility for marketing
must therefore permeate all areas of the
enterprise
contd.
DEFINITION PHILLIP KOTTER

Marketing is the business function that
identifies current unfilled needs and wants,
defines and measures their magnitude,
determines which Target Markets the
organisation can best serve
and decides on appropriate products,
services and programmes to serve these
markets.
Thus, marketing serves as a link between
societys needs and its pattern of industrial
response.
Collecting & Analysing the

Needs,
Wants & Demands of Customer
Developing & Designing

a Product
Feedback
CONCEPT
OF MARKETING
Conveying the Customer

about the Product
Delivering the
Product
Pricing the Product
INTRODUCTION TO MARKETING MANAGEMENTQuestions

1) To make available goods and services to buyers
according to their requirement Is called :
a) selling
b) trading
c) marketing
d) any of the above

1) To make available goods and services to buyers
according to their requirement Is called :
a) selling
b) trading
c) marketing
d) any of the above

2.
Marketing combines which of the following :

a) philosophy of business and business
practices
b)
business
practices
and
customer
requirements
c) customer requirements and philosophy of
business
d) all of the above

2.
Marketing combines which of the following :
a) philosophy of
business practices
business
and
b)
business
practices
and
customer
requirements
c) customer requirements and philosophy of
business
d) all of the above
INTRODUCTION TO
MARKETINGMANAGEMENT-Questions
3.Which of the following is not a part of the
marketing activity
a) sales and sales management, marketing
research, planning distribution
b) advertising and promotion, after sale service
c) pricing, packaging, product development
d) none of the above
INTRODUCTION TO
MARKETINGMANAGEMENT-Questions
3.Which of the following is not a part of the
marketing activity
a) sales and sales management, marketing
research, planning distribution
b) advertising and promotion, after sale service
c) pricing, packaging, product development
4. Which of the following is more

appropriate to the process of marketing
management.
a) analysis and planning
b) planning, marketing and
implementation
c) analysis, planning, implementation
and control
d) analysis, implementation, control and
marketing

4. Which of the following is more appropriate to
the process of marketing management.

a) analysis and planning
b) planning, marketing and
implementation
c) analysis, planning,
implementation and control
d) analysis, implementation, control and
marketing
5. Which of the following is an

appropriate definition of product.
a) it is anything that can be offered to
satisfy a need or want of the customer
b) a product can be a physical goods
c) a product can be a service or idea
d) all the above together
5. Which of the following is an

appropriate definition of product.
a) it is anything that can be offered to
satisfy a need or want of the customer
b) a product can be a physical goods
c) a product can be a service or idea
d) all the above together
MARKETIING OF WHAT
PHYSICAL GOODS
SERVICES
IDEAS
MARKETING DIFFERS FOR EACH
CATEGORY
MARKETIING OF SERVICES
AS A BANKER WE ARE CONCERNED
WITH THE MARKETING OF
SERVICES
WHICH GREATELY DIFFERS FROM
MARKETING OF GOODS
(contd)
DIFFERNCE BETWEEN PHYSICAL GOODS & SERVICES

PHYSICAL GOODS
SERVICES
Tangible
Intangible
Homogenous
Heterogeneous
Production& Distribution
separated from consumption
Production, Distribution
and Consumption are
simultaneous processes
A thing
An activity or process
Core value produced in factory
Core value produced in

buyer-seller interactions
Customers do not participate in Customers participate in

the production
the process
Can be stored
Can not be stored
Transfer of ownership possible
Transfer of ownership not

possible
DEFINITION OF SERVICE
Services are by and large Activities or
they are a series of activities rather than
things
The services are intangible
They take place in the interaction between
the customer and the service provider i.e.
Services are produced and consumed
simultaneously
MARKETING OF BANKING PRODUCTS

Banks provide services
Its aim is to satisfy customers needs and
wants
The needs and wants of the customer are
financial in nature
Competition, Efficiency and Effectiveness
are major factors
CONSUMER BEHAVIOUR
STUDY OF THE CONSUMER EHAVIOUR IS
ESSENTIAL FOR MARKETING
UNDERSTANDING CONSUMER
BEHAVIOUR IS THE GREATEST
CHALLENGE
CAN CONSUMER BEHAVIOUR BE
PREDICTED
CONSUMERS ARE HUMAN BEINGS
CONSUMER BEHAVIOUR
To buy or not to buy
What to Buy?
When to Buy ?
Consumer behaviour is influenced by : Needs and Motives
Hierarchy of Consumer Needs
Decision making process
NEEDS & MOTIVES

5. Self-Actualisation
Self Fulfillment
4. Esteem Needs
Self respect, Recognition,
Status and Success
3. Social Needs
Friendship,affection
and a sense of belonging
2. Safety Needs Avoidance
or Protection from Threatening
situations and economic security
1. Physiological Needs : Food - Oxygen - Sleep
Individual Perception
An individual is motivated by
his personal needs for self esteem,
love or social recognition,
his behaviour is affected by his particular
perception of himself and the world around
him.
Selective Perception
Human consumers have the ability to select
from the many sensations bombarding our
brains
CONSUMER BEHAVIOUR
Learning and Habit Development
Cognitive theory views
Learning as a mental process of memory
thinking
and the rational application of knowledge to
practical problem solving
Most consumer behaviour is habitual. They
rely on habit because :1)they resort to habit when they select products
because it is easy
2)they rely on habit because of necessity
3)they resort to habit because it is the rational
thing to do
FACTORS INFLUENCING CONSUMER

BEHAVIOUR IN BANKING
Location : Where a bank branch is
located often influences the choice
of the bank.
Very often the bank next door
wins on that basis alone
contd.

Safety : Depositors are very often placing
their hard earned money in a bank and a
worrying factor for them is is the bank
safe?
To quell the fear, the background of the
bank,
its
promoters,
international
connections, the years it has been
operating in the country, all influence the
choice
contd.

Returns : A consumer having satisfied
himself that his money is safe, wants to be
sure that the returns being earned are
attractive

Range
of
Services
:
With
greater
sophistication in the environment, a
consumer gets more demanding and would
like his bank to offer a variety of services and
products which increase convenience for
him.
Ex. Phone billing + ATMs or offer him greater
choice a range of term deposit products
which offer him high returns and liquidity.
CUSTOMER SERVICE AS A
MARKETING TOOL
CUST SERVICE AS A MRKTING TOOL

MARKETING COST IS VERY HIGH
SUCCESS OF MKTG IS UNCERTAIN
SATISFIED CUSTOMER IS THE BEST
MARKETING MANAGER FOR THE BANK
NOT ONLY HE RETAINS BUSSINESS HE
CANVASSES NEW BUSINESS ALSO
HIGHER SUCCESS RATIO
ITS FREE
Customer Service -The Essence

Of bussiness
Customers are the backbone of the
Organizations
They posses the power to make or break
any organisation irrespective of its nature
and size .
You forget your customers and you are out
of your bussiness
CS-The essence of business.

So, it is necessary to take adequate care of
them and at the same time increase their
number.
NEED OF CUST SERVICE

IN A FREE MARKET ECONOMY THE CUSTOMER
HAS CHOICE
IT COSTS MORE TO GAIN A NEW CUSTOMER
THAN TO RETAIN AN EXISTING ONE.
UNLESS THE SITUATION IS RECOVERED
QUICKLY A LOST CUSTOMER WILL BE LOST FOR EVER.
NEED OF CUSTOMER SERVICE

DISSASTISFIED CUSTOMERS HAVE FAR MORE
FRIENDS THAN SATISFIED ONES.
IF YOU DONOT LOOK AFTER YOUR CUSTOMERS,

SOMEBODY ELSE WILL.
CUSTOMERS NEEDS
SPEED
TIMELINESS
ACCURACY
COURTESY
CONCERN
TOOLS
STAFF EMPOWERMENT
ATTITUDE
POLITENESS
LISTENING
PROMPTNESS
KNOWELEDGE
COMMUNICATION
CUSTOMER EDUCATION
COMMON COMPLAINTS
RUDE SERVICE /RESPONSE AT THE COUNTER

UNATTENDED PHONES
DELAYED SERVICE
INSENSESITIVITY AND APATHY TOWARDS
CUSTOMER
UNINFORMED STAFF
COMPLAINTS REDRESSAL
WELCOME COMPLAINTS,THEY ALLOW FOR
RECOVERY
THE CUSTOMER MAY NOT ALWAYS BE RIGHT
BUT HOW YOU RESPOND CAN MAKE ALL THE
DIFFERENCE
IF YOU DONOT LOOK AFTER THEM,SOMEBODY
ELSE WILL
TIPS
AVOID CONFRONTATIONS
YOU MAY WIN THE ARGUMENT BUT WILL LOSE
THE CUSTOMER
CUSTOMER DELIGHT
GIVE HIM MORE THAN WHAT HE NEEDS OR
DEMANDS
SERVE WITH SMILE
MAKE HIM A DELIGHTED CUSTOMER
MAKE HIM A FRIEND
LEGAL PROTECTION TO CUSTOMERS
Consumer protection act

Banking Ombudsman scheme
Right to information act
Lenders liability act
The Consumer Protection Act

Consumers are provided with easy access
to justice.
Simple and faster mechanism
since it is a welfare legislation the
interpreted to the benefit of the consumer.
COPRA PROTECTS FOLLOWING

RIGHTS OF CONSUMERS.
Protection from goods which are dangerous
to life and property.
To be informed about the
quality,quantity,potency,purity,standard and
price of goods
To have competitive price
The consumer interest will receive proper
consideration
COPRA
The right to seek redressal against unfair
trade practices/exploitation,
The right to consumer education.
THE BANKING OMBUDSMAN

SCHEME 1995
POWERS AND DUTIES
a) to receive complaints relating to banking
services.
b) to consider such complaints and facilitate
their : I) satisfaction or
ii)settlement by agreement or
iii) by making a recommendation or
iv) award
Ombudsmans authority include

All complaints concerning deficiency in
service,such as:
1.Non payment/inordinate delay in payment
or collection of cheques,drafts/bills,etc.
2.Non -acceptance , without sufficient
cause,of small denomination notes
tendered for any purpose,and for charging
of commision in respect thereof.
All complaints concerning deficiency in

service ,such as:
3.Non- issue of drafts to customers and
others
4.Non-adherence to prescribed working
hours by branches
5.Failure to honour gurantee ,letter of
credit commitments by banks.
OMBUDSMAN
6.Claims in respect of unauthorised or
fradulent withdrawals from deposit
accounts,etc
7.Complaints pertaining to deposit
accounts.
8.Complaints from exporters in India
pertaining to the banks operations in India.
OMBUDSMAN
Complaints from Non -Resident Indians
having accounts in India in relation to their
remittances from abroad , deposits and
other bank-related matters.
Complaints concerning advances only in so far

they relate to:
1.Non observance of RBI directives on intt

rates.
2.Delays in sanction/non-observance of
prescribed time schedule for disposal of
loan application
3.Non observance of any other directions or
instructions of RBI as specified for the
purpose.
Pre-requisite for filing a

complaint with the Ombudsman
1.The complainant should have filed a
complaint with the bank in writing and
either the bank had rejected the complaint
or
the complainant had not received any
satisfactory reply within two months.
Pre requisites for filing

complaint
2.The complaint should be made not later
than one year after the bank had rejected
the representation or
sent its final reply on
the representation of the complainant.
Settlement of complaint
The BO must notify the branch or office of
the bank named in the complaint about the
receipt of complaint along with a copy of
the complaint.
The BO must strive to promote a settlement
of the complaint by agreement between the
complainant and bank through concillation
or mediation.
PROCEDURE
For the purpose of promoting a settlement
BO is not bound by any legal rule of
evidence ,
BO may follow any appropriate
procedure.
BO will pass an Award after affording the
parties reasonable opportunity to present
their case.
LEGAL PROTECTION TO CUSTOMERS

Right to information act
Lenders liability act
QUOTES
IF YOU BUILD A GREAT

EXPERIENCE,CUSTOMERS TELL EACH OTHER
ABOUT THAT .
WORD OF MOUTH IS VERY POWERFUL.
Jeff Bezos
QUOTES
Customers dont expect you to be perfect
They do expect you to fix things when they
go wrong.
Donald Porter
QUOTES
The longer you wait, the harder it is to
produce outstanding customer service.
William H Davidow
QUOTES
Customer service is awareness of needs,
problems,fears and aspirations.
Anonymous
QUOTES
Quality in service or product

is not what you
put into it.
It is what the client or customer
gets into it
Peter Drucker
QUOTES
Our greatest asset

is the customer.
Treat each customer
as if they are the only one!
Laurice Leito.
QUOTES
It takes less effort to keep an old customer
satisfied
than to get a new customer interested
Robert Half
QUOTES
What you give is

what you you get returned I.e.
the way you handle your employees
is the way they will handle (manhandle)
your customers.
E..D.HORRELL
QUOTES
HAPPY STAFF
MAKES CUSTOMERS HAPPY.
Don Silvensky
(CEO MicroteTek)
CONSUMER
AND
MARKET SEGMENTATION
CONSUMER & MARKET SEGMENTATION

The market for product or service is
not one homogenous mass of
customers.
Each potential buyer has individual
needs and desire and specific
circumstances
that
effect
his
purchasing
and
consumption
behaviour.

Market segmentation is
the division of the total market into
several relatively similar
and meaningful groups.

Market segmentation,
the well tested system for guiding
marketing strategy,
starts
not
with
distinguishing
product possibilities,
but
rather
with
distinguishing
customer needs or interests.
APPLICATION OF SEGMENTATION
TO BANKING
1)The most commonly applied application in
Banking in the category of deposits is by
demographic variables. Therefore
target segments which a bank wants to
pursue may be defined by :
Age/Income/Occupation/Education
contd
TO BANKING
2) For example, a typical definition for a target
segment for deposit customers could be :- Individuals
(within a city/locality)
- Age Group
20 to 55 years
- Income
Rs.100,000 p.a. +
- Occupation
Salaried Individuals
- Education Graduates
contd
TO BANKING
3) Very often target segments could be
defined by profession :
-
Doctors
Chartered Accountants
Lawyers
Consultants
contd
TO BANKING
4) Other organizations and non-profit
entities to whom banks market :
-
Trusts
Associations, Societies
Schools, Colleges
Small Establishments like shops
contd.
TO BANKING
5) Since location is a great influencer in
Retail Banking Locality mapping is
undertaken.
Very often localities have a skew of
ethnic/community groups like Gujarathis,
Sindhis, Catholics, Tamilians this forms
a basis also for target segmenting
contd.
TO BANKING
6) In Retail Banking Segmentation is done
at various levels so that it actually
provides proper guidance to the marketing
staff :
- Demographic
- Geographic Mapping
- Community clusters
- Listing of entities
contd.
TO BANKING
7) For corporate lending, the target segment
of companies could be defined by the
following variables :
-
Location
Sales turnover
Industry category
Number of employees
MARKETING MIX
Marketing tools in relation to products,
known as the Marketing Mix, contains four
elements :
i)
ii)
iii)
iv)
Product Price
Place
Promotion -
Customer Solution
Customer Cost
Convenience
Communication
contd
CHANNELS OF DISTRIBUTION
Distribution refers to Place, one of
thePs in marketing mix.
Channels of distribution should be
thought of as means to increase
the availability and/ or convenience
of
service that help in satisfying the
need of the existing user or increase
their use among the existing or new
customers.
Branches have been the delivery

system for Banking.
Various characteristics of services
also had a lot of say in restructuring
the channels of distribution
However, the technological evolution has
brought a great change and development
of innovative channels of distribution.
The types of Branches in operation include
:
- Full Service Branches
- Limited Service Branches (SPOKES)
linked to Main (HUB) branches
- Specially Branches like Corporate
Banking Branches, Housing Finance
Branches, NRI Branches, SME
Branches
contd
-
Electronic Banking Services include :-
a)
b)
c)
d)
e)
ATMs
Intelligent Terminals
Home Banking
Telemarketing
Internet Banking
MARKET SEGMENTATION-QUESTIONS
1.The aggregation of a heterogeneous

market into two or more relatively
homogeneous and meaningful groups
is called :
a) consumer groups
b) market groups
c) market segmentation
d) market and consumer groups
1.The aggregation of a heterogeneous

market into two or more relatively
homogeneous and meaningful groups
is called :
a) consumer groups
b) market groups
c) market segmentation
d) market and consumer groups
2. Market segmentation begins with which of the
following :
a) distinguishing product possibilities
b) distinguishing customer needs or interests
c) distinguishing service range
d) any of the above
2. Market segmentation begins with which of the
following :
a) distinguishing product possibilities
b) distinguishing customer needs or

interests
c) distinguishing service range
d) any of the above
3.
Which of the following is the important aspect

used to segment a market:
a) significantly related to buying and consumption
behaviour capable of being used in design and
implementation of marketing strategy
b) identifiable and measurable without great effort
c) capable of being used in design and
implementation of
marketing strategy
d) all of the above
3.
Which of the following is the important aspect

used to segment a market:
a) significantly related to buying and
consumption
behaviour capable of being used in design and
implementation of marketing strategy
b) identifiable and measurable without great
effort
c) capable of being used in design and
implementation of
marketing strategy
d) all of the above
4. When one product or service can

serve most or all of the market,
usually, the segmentation is :
a) least possible
b) more desirable
c) not feasible
d) not possible
4. When one product or service can serve
most or all of the market, usually, the
segmentation is :
a) least possible
b) more desirable
c) not feasible
d) not possible
5.Which of the following can be

categorized as benefit of non
adoption of market segmentation :
a) economies of scale
b) standardization of product
c) minimal inventories
d) all the above
5.Which of the following can be

categorized as benefit of non
adoption of market segmentation :
a) economies of scale
b) standardization of product
c) minimal inventories
d) all the above
MARKETING MIX BANK MARKETING-QUESTIONS
1.Which of the following is the prominent

difference between the goods and
services, which also suggests different
marketing strategy:
a) intangibility and separability
b) inseparability and homogeneity
c) intangibility, inseparability and nonperishability
d) intangibility, inseparability,
heterogeneity and perishability
MARKETING MIX BANK MARKETING-QUESTIONS
1.Which of the following is the prominent

difference between the goods and
services, which also suggests different
marketing strategy:
a) intangibility and separability
b) inseparability and homogeneity
c) intangibility, inseparability and nonperishability
d) intangibility, inseparability,
heterogeneity and perishability
MARKETING MIX BANK MARKETINGQUESTIONS
3.Intangibility, inseparability and

heterogeneity are manifested in
services marketing, at which of the
following levels:
a) strategic level
b) tactical level
c) a and b both
3.Intangibility, inseparability and

heterogeneity are manifested in
services marketing, at which of the
following levels:
a) strategic level
b) tactical level
c) a and b both

4. Marketing
mix represents a series of

-------------------responses employed to
implement a chosen strategy:
a) tools
b) measures
c) tactic
d) any of the above
4. Marketing mix represents a series

of -------------------responses employed
to implement a chosen strategy:
a) tools
b) measures
c) tactic
d) any of the above

5. Marketing mix is --------------- component of
any marketing strategy.
a) important
b) core
c) latest
d) first

5. Marketing mix is --------------- component of
any marketing strategy.
a) important
b) core
c) latest
d) first
NEW CHALLANGES IN BANK MARKETING
YOUNG CUSTOMERS
TECHNOLOGY
NON BANKING PRODUCTS
(INSURANCE,MUTUAL FUNDS )
PHYSICAL PRODUCTS (GOLD COINS
etc)
Real Marketing-How to market all our

products to single customer
Manager of a Retail store in US asks: "Do
you have any sales experience?"
The Indian says: "Sir, I was a salesman back
home in India.
Well, the boss liked the Indian chappie so he
gave him the job. "You start tomorrow.. I'll
come down after we close and see how you
did."

His first day on the job was rough but he got through
it.
After the store was locked up, the boss came down.
"How many sales did you make today?"
Indian boy says: "Sir, Just ONE sale."
The boss says: "Just one? No! No! No! You see
here our sales people average 20 or 30 sales a
day." If you want to keep this job, you'd better be
doing better than just one sale.

By the way, how much was the sale
for?"
Indian boy says: " $101 237. 64"
Boss says: "$101 237. 64? What the
hell did you sell

Indian boy says: "Sir, First I sell him
small fishhook.
Then I sell him medium fishhook.
Then I sell him large fishhook.
Then I sold him new fishing rod and
some fishing gear.

Then I ask him where he's going fishing
and he said down on the coast, so I told
him he'll be needing a boat, so we went
down to the boating department and I
sell him twin engine Chris Craft.

Then he said he didn't think his Honda
Civic would pull it, so I
took him down to our automotive
department and sell him that 4X4
Blazer.

I then ask him where he'll be staying,
and since he had no
accommodation, I took him to camping
department and sell him one of those
new igloo 6 sleeper camper tents.

Then the guy said, while we're at it, I
should throw in about 100
worth of groceries and two cases of
beer.

The boss said: "You're not serious? A
guy came in here to buy a
fishhook and you sold him a boat, a
4X4 truck and a tent?

Indian boy says: "No Sirji, actually he
came in to buy Anacin for his
headache, and I said: Well, fishing is
the best way to relax your mind."

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WHAT IS MARKETING ?

IS SELLING & MARKETING ARE SAME ?

DEFINITION PETER DRUCKER

DEFINITION PHILLIP KOTTER

Collecting & Analysing the

Developing & Designing

Conveying the Customer

Pricing the Product

INTRODUCTION TO MARKETING MANAGEMENTQuestions

INTRODUCTION TO MARKETING MANAGEMENTQuestions

INTRODUCTION TO MARKETING MANAGEMENTQuestions

Marketing combines which of the following :

INTRODUCTION TO MARKETING MANAGEMENTQuestions

Marketing combines which of the following :

d) none of the above

INTRODUCTION TO MARKETING MANAGEMENTQuestions

4. Which of the following is more

INTRODUCTION TO MARKETING MANAGEMENTQuestions

the process of marketing management.

INTRODUCTION TO MARKETING MANAGEMENTQuestions

5. Which of the following is an

INTRODUCTION TO MARKETING MANAGEMENTQuestions

5. Which of the following is an

d) all the above together

DIFFERNCE BETWEEN PHYSICAL GOODS & SERVICES

Core value produced in factory

Core value produced in

Customers do not participate in Customers participate in

Can not be stored

Transfer of ownership possible

Transfer of ownership not

MARKETING OF BANKING PRODUCTS

NEEDS & MOTIVES

1. Physiological Needs : Food - Oxygen - Sleep

FACTORS INFLUENCING CONSUMER

FACTORS INFLUENCING CONSUMER

FACTORS INFLUENCING CONSUMER

FACTORS INFLUENCING CONSUMER

CUST SERVICE AS A MRKTING TOOL

Customer Service -The Essence

CS-The essence of business.

NEED OF CUST SERVICE

NEED OF CUSTOMER SERVICE

IF YOU DONOT LOOK AFTER YOUR CUSTOMERS,

RUDE SERVICE /RESPONSE AT THE COUNTER

MAKE HIM A FRIEND

LEGAL PROTECTION TO CUSTOMERS

Consumer protection act

The Consumer Protection Act

COPRA PROTECTS FOLLOWING

THE BANKING OMBUDSMAN

Ombudsmans authority include

All complaints concerning deficiency in

Complaints concerning advances only in so far

1.Non observance of RBI directives on intt

Pre-requisite for filing a

Pre requisites for filing

LEGAL PROTECTION TO CUSTOMERS

Lenders liability act

IF YOU BUILD A GREAT

Quality in service or product

Our greatest asset

What you give is

CONSUMER & MARKET SEGMENTATION