MARKETING OF BANKING AND INSURANCE PRODUCT

Prof. Priyanka Kumar

What is Marketing?

Marketing is a human activity directed at satisfied needs and wants through exchange process.
Marketing is the performance of business activity that direct the flow of goods and services from the producer to consumer.

Marketing vs Selling
Aim:

Selling concentrate on how to sell the goods and earn profit from the sale
Marketing concentrate on the satisfaction of consumer Orientation: Selling is production oriented

Marketing is consumer oriented

Importance Selling gives less importance to marketing research Marketing gives more importance to marketing research

Target:
Selling is homogeneous Marketing is heterogeneous Consumer place:

Selling views consumer as the last link in the business

Marketing views consumer as the purpose of the business

Need for Marketing?

Satisfaction Of human need and wants Profit and Market reputation Widen the Market Improve standard of living Bring economic growth

Service Marketing
A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.

The promotion of economic activities offered by a business to its clients. Service marketing might include the process of selling telecommunications, health treatment, financial, hospitality, car rental, air travel, and professional services.

Characteristics of Services
Intangibility Perishability Inseparability Heterogeneity Ownership

Goods vs Services
S.No.

Physical Goods
Tangible
Homogeneous Product and distribution separated from consumption A thing Core value produced in factory Customers do not participate in the production process Can be kept in stock Transfer of ownership

Services
Intangible
Heterogeneous Production, distribution and consumption re simultaneous process A activity Core value produced in buyerseller interaction Customers participate in production Cannot be kept in stock No transfer of ownership

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2. 3.

4. 5. 6. 7. 8.

7 Ps of Marketing Mix

Service Marketing Mix

7 Ps of Banking Product Product

Deposits :- Savings, current, fixed

Term Loan,
Guarantees Investment counseling Tax counselling Bill discounting

Price
Interest rates charged Transaction charged Mark up pricing Charges for cheque books

Commission charges

Place
The trade area Population characteristics Transportation Communication

Visibility
Access

Promotion
Public relations Personal selling Word of mouth promotion Internet

Tele marketing

People
Skill for social interaction Tolerance level Humanity Knowledgeable

Physical evidence
Signage(Logo) Punch lines Tangibles Employee dress code

Process
Process constitutes the overall procedure involved in using the services offered by the bank. The process should be customer friendly If the overall process is too complicated than the

customer may not be inclined to use such services

7 Ps of Insurance Product
Others: Auto Insurance Home Insurance Health Insurance Accident, Sickness and Unemployment Insurance

All-risk Insurance
Pet Insurance Travel Insurance

Reinsurance

Casualty Insurance
Life Insurance Property Insurance

Liability Insurance
Credit Insurance

Price
Premium charged against the policies. (Includes: Mortality, Expenses, Interests) Interest charged for defaulting the payment of premium. Commission charged for underwriting and consultancy.

Place

Managing the Insurance Personnel

Locating a Branch

Promotion
Advertising and Publicity Organisation of Conferences and Seminars

Incentive to Policyholders
Plays Exhibitions

Participation in fairs and festivals

Wall paintings Mobile Publicity Van

People

Training & Development of Employees. Strong Relationship with Mediators. Use of IT for efficiency, both at staff and agent level.

Process
Customer friendly.

Speed and accuracy in payment.

Easy and convenient processing method. Schemes catering demand of customers. IT & Data warehousing to smoothen the process flow

Physical evidence
Internet/Web Pages Brochures Business Cards Building & Offices Signage Financial Reports Punch Lines Employees Dress Code

Major Channels Of Direct Marketing

Face to face selling
Telemarketing Direct mail marketing Catalogue marketing Television marketing Online marketing

Segment-Wise Marketing Strategy

Segment Small saver

Package of services

Easy to handle deposit schemes providing an attractive collection box

Teaching banking habits in schools/colleges

Segment-Wise Marketing Strategy

Segment Illiterate

Deposit Scheme -easy to handle -door to door collection facility -simplified facilities

Better attitude and good behavior from an employee Personal contact, preferably through commission agent Mobile Vans Mass promotional campaigns

Segment-Wise Marketing Strategy

Retire or about to retire Deposit Scheme with interest payable monthly

Deposit Scheme with post-dated interest

warrants payable any where in India

Contacting retired employees Personalized customer services

Segment-Wise Marketing Strategy

Professional and Service worker

Deposit-cum-loan scheme for consumer durables

Mutual Funds

Mailing, customer meeting etc. Shift in banking hours Working on holidays in certain branches

Segment-Wise Marketing Strategy

High Income Group

Deposit scheme with personalized banking facility Deposit-cum-loan scheme for consumer durables Credit Cards Miscellaneous Services like tax consultancy,

portfolio management etc.

Telephone calls

Mailing
Personal meetings, etc.

E-Marketing

E-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

Advantage of Online Marketing

Selling goods and services online. Additional customer service.

Saving overhead costs.

Exciting and sizzling means of visual impact.

Every hit could gain a potential customer.

Reduction in order processing and handling costs Enhanced after sales service. Get closer to the customer

What do we Market?

Goods
Service Event

Experiences
Personalities Place

Properties
Information Ideas & Concepts

SUCESSFUL E - MARKET STORY

? ueries