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Discussion and Suggestions:

Nature of marketing activities in the banking industry pre and post liberalization:

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A glance at the table 1 reveals that there is a lot of difference in the nature of marketing in the

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Marketing Of Bank Products Emerging Challenges & Strategies | Usha Kiran Rai - Academia.edu
A glance at the table 1 reveals that there is a lot of difference in the nature of marketing in the banking industry before and after banking reforms. Many new products have been introduced. Now all the work is done by technological tools. Many e-delivery channels like ATM, credit card, M-banking, Tele-banking, I-banking have come into existence. Now banks take profit into consideration rather than price. Customer was slave to the bank before liberalization but now he has become the king of the bank. Customer can get feedback as per his own wish.
Table 1: Nature of Competition in the Banking Industry Pre and Post liberalization:

Indicator Customer Service

Customer feedback

Pre- liberalization Mandated by committee reports and law Done based on regulators guideline complaint/suggestion boxes symbolized this

Post-liberalization Consciously practiced as a way of banking Willingly attempted

Product innovation Tools Delivery channel

Minor products Manual Branch

Orientation Status of the consumer Branch ambience

of New products with value additions Technology driven More alternate delivery channels like ATMs, Tele-banking,Internet banking, mobile banking Inward looking Outward looking Slave to the bank King because more bankers chasing them Resembled erstwhile Aims to simulate government offices supermarket buying experience

variations

Source: Report on Trend and Progress of Banking in India, RBI, Mumbai.

Performance parameters of public, private sector and foreign bank group:

Table 2 reflects the marketing of services by the Indian banks during reform period and after reform period. It is clear from table that all the parameters have shown remarkable performance after the banking reforms. But foreign banks lag behind the private sector and public sector banks. The gains of private sector banks are more in terms of deposits and advances. Private sector banks are growing faster than the public sector banks and foreign banks. Thus the table implies that private sector banks are more efficient in the marketing of their products and services.

Table 2: Performance Parameters of Public, Private Sector and Foreign Bank Group Paramete rs Gr III 199 2011 growth 3 % 26325 437298 2087 24068 1053 Deposits 4 5 5 9 1043 19553 1774 Advances 15388 330563 2048 9855 0 3 2 9 Source: Report on Trend and Progress of Banking in India 1993 and 2011 RBI, Mumbai. 2011 Growth % 1561 Growth % 6393 Gr I 1993 Gr II 199 2011 3 1544 100275 5 9 8012 797534

Challenges of Bank Marketing

The improvement of operational and distribution efficiency of banks has always been an issue for Government of India (GOI) in consultation with RBI. However, the economic rise of 1990s gave birth to the new economic macro level thinking to improve the economic health of the Indian economy. Financial sector reforms, particularly banking sector, gave new sound and healthy direction to the Indian economy. Various challenges have taken place to tackle the problem; some of them are given below:
Competitive Environment The Foreign Banks and New Private Sector Banks have witnessed a significant growth but on the other side, Public Sector Banks are at the edge of survival among them with huge capital base, latest technology, innovative and globally tested products/services are fetching the consumers attention. To make Indian banks competitively strong, they should follow latest technology, innovative and globally accepted products/services http://www.academia.edu/2448076/Marketing_Of_Bank_Products_Emerging_Challenges_and_Strategies

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Marketing Of Bank Products Emerging Challenges & Strategies | Usha Kiran Rai - Academia.edu should follow latest technology, innovative and globally accepted products/services followed by appointment of experienced, skilled and tech-friendly professionals.
Technology

Another important challenge is that Indian public sector banks should have used innovative technology to facilitate financial inclusion for the unbanked population of India through use of biometric techniques and rapidly growing mobile network. However, this customer experience and tailored offerings increasingly becoming key to bank profitability. Further, the operation by computer isare delayed by the fact that some operating staff are not very skilled and thus it takes more time. An inexperienced person means more time and more delays in providing services of the customers.
Transformation of Human Capital Another important challenge is the transformation of human capital. There is the need to develop and manage the human resources to make them adaptable to the changing environment. It is a challenge for banks that how to manage their human capital to make it productive. However, banks should provide on-the-job training to the efficient staff to make them capable to understand and work with latest technology and its application.
Rural Marketing This is a big challenge before the Indian banks to enhance rural marketing to increase their customers. Banks should open their branches not only in the urban and semi-urban areas but also in the rural areas.

Customer Focus & Awareness

The banks require improving on providing services and profitability efficiency of services. The banks have to explore out fastest and efficient means of providing services with the use of IT applications, telebanking, internet banking and improving delivery system by improving the attitude and behavior of the staff also. Customer awareness is also
a challenge before the banks. Bank can market their products and services by giving the proper knowledge about the product to customer or by awarding the customer about the products. Bank should literate the customers.

Strategies for the enhancement of bank marketing:

In the fierce competitive market, needs of customer keep changing. Hence, our marketing strategy must be dynamic and flexible to meet the changing scenario. Here are steps that form successful and effective marketing strategy for bank products.

Marketing Strategies The banks are required to devise suitable market strategies to augment the volume of business level. So, the banks should research on the vast knowledge they have about the consumer, devise about specific products for specific segments, differentiate according to consumer potentials and its expectations, and focus on few potential customers with customized products and services rather than serving all customers with universal products. Using Customer Relationship Management (CRM), appointment of young employees with fresh and creative minds with expertise in latest technology, as a matter of choice is desirable to survive in the globalised market.
Effective Branding Man is a bundle of sentiments and emotions. This can effectively be helpful in branding our products. Considering the features of products and target group of customers, the product can be effectively branded so as to sound it catchy and appealing. Some proven examples are Apna Ghar, Dhan Laxmi, Kuber, Flexi Deposit, Smart Kid, Sapney, Vidya etc. The branding should be done in such a way that the brand name must attract the attention of the target group and the salient feature of the product should resemble brand name. All the promotional campaigns should refer the product by its brand name only so that to strike the same in the customers mind.

Image building The PSBs should start on massive scale the image-building exercise. The banks should

focus their attention on creation of such an outward look that it feels like anything entering the bank. The regent of the bank should be user-friendly with good quality furniture and other attractive infrastructure.
Products for Women The national perspective plan for women states that most of women workers are engaged in the agriculture and allied activities like dairy, animal husbandry, sericulture, handloom, handcrafts and forestry. Banks should do something to improve their access to credit which they require.

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Marketing Of Bank Products Emerging Challenges & Strategies | Usha Kiran Rai - Academia.edu
Advertisement Advertisement is an eminent part of marketing of bank products. Advertisement should be such that appeals to people. It should not follow the orthodox pattern of narrating a product. For effective advertisement, bank should understand peoples tastes and choices.

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Marketing_Of_Bank_
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Product Innovation The present era of competition has witnessed various large multinational banks like American Bank, Hong Kong Bank, Swiss Bank, City Bank, etc. and other multinational banks coming very aggressively. They have set the tone and to an extent also the standard for technological improvements with product innovations, which dominated the traditional public sector banks. So, these banks have to run in a market which has no geographical barriers and will have to develop abilities of product innovation as well as delivery comparable to the best in the world.
Customer Adoption

Nowadays the public sector banks are presenting various products and services to their customers online, that they will have to be work hard to attract more number of customers. This is possible only when they assure security of online transactions. Moreover, banks that have created a distinctive online offering could attract more number of customers when compared to those banks which are using almost similar products and services.

Implication:
Thus the study implies that for a successful and effective marketing of bank products is a necessary condition. This condition can only be fulfilled by attracting the more and more customers. Thus, bank should make only policies which are helpful in fulfilling the needs of customers.

Conclusion:
Banking sector reforms have changed the traditional way of doing business. Mainly technology is the outcome of banking reforms. Customer is now the king and customer focus or satisfaction of customer is the main aim of the banks. With the introduction of new products and services competition has grown up among the banks. Only those banks will survive who face the competition with the effective ways of marketing .

References:

Mahapatra D M & Mohanty A K,(2011), Problems and Challenges of Public Sector Banks (PSBs) in India During Globalized Era,Lachoo Management Journal,Vol.2, No. 2,July-Dec. 2011 Uppal R K,(2010), Marketing of bank products: Emerging challenges and new strategies, JM International journal of management research,VolNov.2010,ISSN -2229-4562 Tandon, L. (2008), Globalisation: Impact on Indian Banking, The Financial Analyst, Vol. XIV, Issue 10, October Issue, Hyderabad, p. 16. Dwivedi, R. (2007), Managing Marketing-Finance Interface, Journal of Commerce and Trade, Vol. 2, No. 2 (Oct.), p. 32

Jain, A. (2007), Managerial Role in International Marketing Strategies, Journal of Commerce and Trade, Vol. 2, No. 2 (Oct.), p. 2
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Dixit, V.C. (2004), Marketing Bank Products, IBA Bulletin, (April), p.15 http://www.academia.edu/2448076/Marketing_Of_Bank_Products_Emerging_Challenges_and_Strategies

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Marketing Of Bank Products Emerging Challenges & Strategies | Usha Kiran Rai - Academia.edu Dixit, V.C. (2004), Marketing Bank Products, IBA Bulletin, (April), p.15

Gurumurthy, N. (2004), Marketing Bank Products, IBA Bulletin, (April), p.23 Gupta, O.( 1997), Emerging Issues in Service Marketing-Banks Experience, SBI monthly Review, (Dec.), p. 627 Malik, S.C. (1996), Building Human Capital for Banking, Vichaar, Vol. 16, Issue 4,Oct.

Sreedhar, G.( 1991), Marketing-Style of Indian Banks, The Banker, New Delhi, Feb. Bhattacharya N Biswas, ( 1989), Marketing Approach to Promoting Banking Services, NIBM, Pune, Vol.14, No. 2, April-June 1989 Bettinger, C (1985)"Marketing: You Can't Do it if You Don't Know What it is, "Bank Marketing, August.
Trivedi Pankaj,( 2006), Strategies for effective bank marketing in India,Full research paper for 9th Bi-Annual Conference of EACES, K.J. Somaiya Institute of Management Studies and Research, Mumbai. India

Websites:

www.rbi.org.in/report on trend and progress of banking in India in the year 1993 and 2011 www.sbi.co.in www.pnbindia.com www.bussiness-standard.com/india/news/mould/23/10/349883 www.inflibnet.ac.in/ojs/index_php www.iaabd.org/2009_iaabd_track18d.pdf

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