General Bank Management

Marketing Management for Bankers

MODULE D

C AIIB
 Wha t is Mar keti ng…? ?
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?

All of the above, plus much more!

2
Ma rketing = ?

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association

3
 Mar keti ng = ?

Marketing management is the art and science of

choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.

4
 Si mpl e Mar ke ting Sys tem
Communication

Goods/services
Industr y Market
(a collection (a collection
of sellers) of Buyers)
Money

Information 5
 Ma rketing = ?
 Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

6
 Th e 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
7
Di ff erence B etw ee n - Sa les & Ma rke tin g ?

Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what
the customer wants

8
Sc ope – Wh at do w e mark et
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

9
 Cor e Conc epts of Mar ke ting

Based on :
 Needs, Wants, Desires / demand

 Products, Utility, Value & Satisfaction

 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

10
 Core Co nc ept s of Market ing

Needs, wants Utility, Value &

Products
demands Satisfaction

Marketing & Xchange, Transaction

Markets
Marketers Relationships

11
Cor e Conc epts of Mark eting

 Need – food ( is a must )

 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

12
In order to understand Marketing let us begin with the
Ma rk et ing Tria ng le

Customers

Company Competition

13
Who is a C us tom er ??

CUSTOMER IS . . . . .

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption
that satisfies a want or a need

14
Customer –

CUSTOMER has needs, wants, demands and

desires
Understanding these needs is starting point of the
entire marketing
These needs, wants …… arise within a framework
or an ecosystem
Understanding both the needs and the ecosystem is
the starting point of a long term relationship

15
 How Do Consumers Choose Among
Products & Services?

Value - the value or benefits the customers gain from

using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
 Performance > Expectations => Satisfaction
 Performance < Expectations => Dissatisfaction

16
Cu sto mer s - Pro bl em S olutio n

As a priority , we must bring to our customers

“WHAT THEY NEED”
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems

17
 Cus to mer looks for Va lue
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

18
 Analysis Of Competition
Who are your competitors?
What are their strengths and weaknesses?
What have been their strategies?
How are they likely to respond to your
Marketing plan?

19
St ra tegic Mar ke ting

Strategic marketing management is concerned with

how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered

20
Stra tegi c Pl ann ing

Strategic Planning is the managerial process of

creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

 Also called Strategic Management Process

 All organizations have this
 Can be Formal or Informal

21
The Strategic-Planning, Implementation,
and Control Process

22
 Bus ine ss St ra tegic -P la nn ing P ro cess
External environment
(Opportunity &
Threat analysis)

Business Mission Goal Formulation

Internal Environment

(Strength/ Weakness analysis)

23
St rat egy Fo rmulat ion
Environmental Analysis

Competitor Internal Analysis

Customer
Supplier Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Strength & Weaknesses

Identity Core Competencies

Identify opportunity

Fit internal Competencies with external opportunities

24
Firm Strategies
Th e Ma rke ti ng P lan

A written document that acts as a guidebook of

marketing activities for the marketing manager

25
CONTE NT S of MA RKE TIN G PLA N
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control

26
The M ark et ing P roc ess

Business
Mission
Statemen
t

Objective
s

Situation
or SWOT
Analysis

Marketi ng St rateg y
Target Market
Strategy

Mark eti ng Mix

Product Place/Distribution

Promotion Price

Implementation
Evaluation, Control
27
Mark eti ng E nvir onment
Why a product like radio declined
and now once again emerging as
an entertainment medium ?

29
What Were th e Dr iver s of T hi s Ch ang e ?

Technology ?

Government policy ?

Other media substitutes ?

30
Why Mar ket L ea ders Su ff ere d ?

 HMT vs. Titan

 HLL vs. Nirma
 Bajaj vs. Honda
 Dot.com boom, then bust and now resurgence
 Market leadership today cannot be taken for
granted.New and more efficient companies are able
to upstage leaders in a much shorter period.

31
Fa ctors
In fluen cin g
Co mpa ny ’s
Ma rk et ing
Str ate gy

32
 Ex terna l Ma rket in g Envir onme nt
External Environment
Social Ever-Changing
is not controllable Change Marketplace
Demographics

Economic
Product Physical / Natural Conditions
Distribution
Promotion
Price
Competition
Target Market
Political &
Legal Factors
Technology
Environmental
Scanning

33
Th e mac ro-en vi ronment

is the assessment of the external forces that act upon the

firm and its customers, that create threats & opportunities

34
Product

35
 Product is . . . . .

Anything that is offered to the market for

attention, acquisition, use or consumption that
satisfies a want or a need

36
Types o f Pr oduc ts

PRODUCTS

Consumer Industrial
Services
Products Products

37
Pr oduc t Items , Line s, a nd Mi xe s

A specific version of a product

that can be designated as a
Product Item
distinct offering among an
organization’s products.

A group of closely-related
Product Line
product items.

All products that an

Product Mix
organization sells.

38
Pr oduc t Mi x

Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a

product line

Consistency – how closely related the product lines are in

end use

39
Gillett e’ s Pr oduc t Line s & Mi x

Width of the product mix

Depth of the product lines

Blades and Writing

razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus

40
What is a Servic e? Defining
the Essenc e

An act or performance offered by one party to another

(performances are intangible, but may involve use of
physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired

change in customers themselves, or their physical
possessions, or intangible assets

41
Som e Indus tr ies - Servi ce Se ctor

Banking, stock broking Health care

Lodging Education
Restaurants, bars, Wholesaling and retailing
catering Laundries, dry-cleaning
Insurance Repair and maintenance
News and entertainment Professional (e.g., law,
architecture, consulting)
Transportation (freight and
passenger)

42
Cl assif icati on o f S er vi ce s
Pure Intangible
Banking
Service

Good Transportation

Major Service with

Minor Product
Business Hotels
Product = Service

Computers

Major Product with

Minor Services
Materials / Components

Pure Tangible Product

43
Maj or Ch ar acter isti c o f S er vi ces

 Intangibility – Services are intangibility cannot be seen,

tasted, felt, heard or smelled before purchase.
 Inseparability - Services are produced and consumed
simultaneously.
 Variability or Heterogeneity – Services are highly variable
 Perishability – Services cannot be stored.
 Non Ownership - Services are rendered but there is no
transfer of title

44
The Marketing Mix

The conventional view of the marketing mix consisted of

four components (4 Ps): Product, Price, Place/
distribution and Promotion.
Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity [technology ]
People [employees], Physical evidence
Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to affect
the relationship with customers.

45
The “8 Ps ” of Int egra ted S ervice
Ma na gement vs . t he T ra dit ional
“4P s”
► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays

46
The Give and Get of Marketing

47
Great Words on Marketing
• “The purpose of a company is ‘to create a customer…The only
profit center is the customer.’”
• “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
• “The aim of marketing is to make selling unnecessary.”
• “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
• “Marketing is too important to be left to the marketing
department.”

48
Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute
to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels

49
Marketers and Markets
Marketers are focused on stimulating
exchanges with customers who make
up markets – B2C or B2B.
The market is comprised of people who
play a series of roles: decision
makers, consumers, purchasers,
and influencers.
It is absolutely essential that marketers
have a detailed understanding of
consumers, their needs and wants.
Much happens before and after the sale
to affect customer satisfaction

50
Stages of Customer Interaction

51
What Changed in Marketing…
Old Economy
• Organize by product units
• Focus on profitable transactions
• Look primarily at financial
scorecard
• Focus on shareholders
• Marketing does the marketing
• Build brands through advertising
• Focus on customer acquisition
• No customer satisfaction
measurement
• Over-promise, under-deliver
New Economy
• Organize by customer segments
• Focus on customer lifetime value
• Look also at marketing scorecard
• Focus on stakeholders
• Everyone does the marketing
• Build brands through performance
• Focus on customer retention
• Measure customer satisfaction and
retention rate
• Under-promise, over-deliver
52
 Are Banks truly
marketing-savvy and
customer - centric?

53
My th 1 – The larger the range of products, the more
customer-centric I am.

Mythbuster – The range of products has

emerged from being
competition-centric.

54
My th 2 – Better technology (read CRM) leads to
better customer service.

Mythbuster – Technology
alone does not deliver,
helps people do.

55
Myth 3 – Launch a product and the customer will start
using instantly.
- Give a customer a card and he will learn how to play
with it immediately

Mythbuster – Customers need

To be educated too…

56
My th 4 – The only way to get a customer is from
competition.

Mythbuster – Customers
are not only present
where competition is.

57
My th 5 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell,

Not retain customers.
58
My th 6 – No difference between marketing & selling

Mythbuster – “Selling focuses on the needs of the

seller; marketing on the needs of the buyer.

59
My th 7 – In the absence of relationships ‘trust’ builds
financial brands

Mythbuster – Trust is not a differentiator at all…

it is the very minimum that the customer expects!!

60
So wha t will the dif fere nt iat ors be :

• Technology ?

• Brand ?

61
The real differentiator of
customer – centricity in a
commoditised world of
financial products -
Customer Service !

62
 Thank You
sagarnarsian@yahoo.com

63