This project deals with a detailed study of various tools used by banks for their marketing communication. Marketing communication includes messages and related media used to communicate with a market. Those who participate in advertising, branding, direct marketing, graphic design marketing, packaging, promotion, publicity, sponsorship, public relations , sales and sales promotion and event marketing , online marketing, are all included in marketing communication. In bank the communication is basically divided into two parts. Internal
In this project I have tried to analyze the marketing communication of different banks through different communication tools. The banks I have identified for the purpose of study are as follows:Vijaya Bank Canara Bank Syndicate bank Bank of Baroda ING Vysya The project also deals with finding out the marketing communication effectiveness of banks through their ATMs. This has to done through a Market research with the help of filled questionnaire and SPSS output. My methodology to achieve, what I intended, was meeting marketing managers in banks and communicate with them, interact to derive necessary information and also necessarily visiting the official site of the banks.
It was found that almost all of the banks did more or less the same activities in terms of marketing communication. A few public sector banks like Canara bank, Vijaya Bank, are more active in terms of Agriculture relate rural development program and private sector banks like ICICI, HDFC are engaged in advertising their brand through ads and local collaterals. The later part of this project also deals with a survey of ATMs and services of different banks. A sample size of around 140 samples was collected and was grouped in to 5 age categories!
Now same sample when was tested for SBI bank it was found that age group of 22 and 27 have their account in SBI because their parents have a account in SBI or they personally feel that SBI is good. In fact these students feel that SBI is good because it provides them zero balance account which is not available in any other private sector bank apart from the salary account.
And also it provides loans at a lower rate as compared to any private sector banks. While on the other hand it was found that Canara bank is a consistent holder of all age group of people. This project was done with a lot of efforts put forward to fill the questionnaire and doing it with a SPSS analysis makes it unique. I had learned SPSS application and data /statistics analysis. It has photographs of all major ATMs and I did a comparative analysis of different banks in the market which were identified.
To study the various channels of marketing communication for banks To understand the effectiveness of the marketing communication undertaken by a bank To find out the contribution of ATMs in marketing communication To analyze different players in the market To study the MarCom activities of major players in the market To suggest probable recommendations 8 May 24, 2009 [Marketing Communication in Banks] Acknowledgment I express my deep gratitude to ICFAI Bangalore which has given me an opportunity to learn something practical apart from books by including internship training in the MBA course.
With immense gratitude, I acknowledge all those whose guidance and encouragement served as a “beacon light” and crowned my efforts with success. I sincerely thank Mrs. Kalpana Rao Senior Strategy Brand Manager of R K Swamy BBDO for giving me an opportunity to take up this project. I thank her for being a constant source of inspiration, mentor and above all for her encouragement. I would like to express my profound sense of gratitude to Prof. R Shrinivasan – ICFAI Business School, Bangalore, and my project guide for guiding me as well as providing me the support to conduct this project.
With a deep sense of gratitude and indebtedness, I sincerely and whole-heartedly thank the staff team at R K Swamy BBDO for giving me value suggestions and advice throughout the execution of the project. This project would not have been concluded successfully within time without their support and help. I take this opportunity to thank all the library members of ICFAI Business School, Bangalore, friends, and my seniors who provided me with the study material on my project.
Objective: R K Swamy BBDO has a simple goal of assisting clients by developing solutions to their marketing communication problems and to provide intelligence and support to reach their goals. The Hansa: R K Swamy adopted Hansa bird as its symbol right from its inception in 1973. This unique bird has a special place and significance in Indian mythology, making it most appropriate for advertising agency. The Hansa bird has power to separate milk from water. This characteristic more than anything else is what R K Swamy BBDO aims to live up to at all times.
Founder: Mr. R K Swamy started R K Swamy advertising associates on 3rd April 1973 and within 7 years this company has spread its wings across the top five cities of India. He pioneered the concept of Total Communication System (a four runner to the Integrated Marketing Communication of today) and opened up entire public sector as an advertising category. Network: BBDO ranks top three networks in the world. Its offices span 250 cities across 70 countries. BBDO serves the marketing communication needs of leading companies like PepsiCo, DaimlerChrysler, Mars, Wringleys , visa, ICI, BT, Cingular, Sainsbury’s, Guinness etc.
BBDO is the most creative global agency network having won more awards in the leading shows of the year than any other network. BBDO is wholly owned by Omnicom groups the world’s leading marketing communication group listed on the NYSE. B) About the project: The marketing communication can be defined as “ A strategic business process used to plan, develop, execute and evaluate coordinated and measurable persuasive brand communication program over time with consumers, customers, prospects and other targeted, relevant external and internal audits.
As already explained earlier that in banks communication is divided in to two parts internal and external communication. As we proceed we would deals with both internal and external communication for each bank I have identified. Before we proceed we would in general go through, what are the basic channels in marketing communication mix. The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing, a company uses to pursue its marketing objectives.
We would briefly see all of these one by one. 11 May 24, 2009 [Marketing Communication in Banks] Advertisement: Advertisement is a means to reaches large, geographically dispersed audiences in no time. Though sometimes the overall costs are high, consumers perceive advertised goods as more legitimate. It Dramatizes company/brand; Builds brand image and also stimulate short-term sales. It is the most effective tool for building buyers’ preferences, convictions, and actions. Personal interaction allows for feedback, adjustments, and relationship-orientation.
In today world buyers are more attentive and Sales force represents a long-term commitment. It is the most expensive of all the promotional tools. Sales promotion Sales promotion may be targeted at the trade or ultimate consumer. It takes use of a variety of formats, premiums, coupons, contests, etc. Its main feature is to attract attention of the consumers or trade, offers strong purchase incentives, dramatizes offers, and boosts sagging sales.
It stimulates quick response, Short-lived, not effective at building long-term brand preferences. It reaches many prospects issed via other forms of promotion; Dramatizes Company or product; Often the most under used element in the promotional mix; relatively inexpensive (certainly not ‘free’ as many people think–there are costs involved). Promotion is not just advertisement. Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of industries, must engage in some form of promotion.
Such efforts may range from multinational firms spending large sums on securing high-profile celebrities to serve as corporate spokespersons to the owner of a oneperson enterprise passing out business cards at a local businessperson’s meeting. An effective promotional strategy requires the marketer understand how promotion fits with other pieces of the marketing puzzle (e. g. , product, distribution, pricing, target markets). Consequently, promotion decisions should be made with an appreciation for how it affects other areas of the company.
For instance, running a major advertising campaign for a new product without first assuring there will be enough inventory to meet potential demand generated by the advertising would certainly not go over well with the company’s production department (not to mention other key company executives). Why promotion is needed? Build Awareness – New products and new companies are often unknown to a market, which means initial promotional efforts must focus on establishing an identity. In this situation the marketer must focus promotion to:
- effectively reach customers,
- tell the market who they are and what they have to offer.
Create Interest – Moving a customer from awareness of a product to making a purchase can present a significant challenge. Customers must first recognize they have a need before they actively start to consider a purchase. The focus on creating messages that convince customers that a need exists has 12 May 24, 2009 [Marketing Communication in Banks] been the hallmark of marketing for a long time with promotional appeals targeted at basic human characteristics such as emotions, fears, sex, and humor. Provide Information – Some promotion is designed to assist customers in the search stage of the purchasing process.
In some cases, such as when a product is so novel it creates a new category of product and has few competitors, the information is simply intended to explain what the product is and may not mention any competitors. In other situations, where the product competes in an existing market, informational promotion may be used to help with a product positioning strategy. Marketers may use promotional means, including direct comparisons with competitor’s products, in an eff ort to get customers to mentally distinguish the marketer’s product from those of competitors Stimulate Demand – The right promotion can drive customers to make a purchase.
In the case of products that a customer has not previously purchased or has not purchased in a long time, the promotional efforts may be directed at getting the customer to try the product. This is often seen on the Internet where software companies allow for free demonstrations or even free downloadable trials of their products. For products with an established customer-base, promotion can encourage customers to increase their purchasing by providing a reason to purchase products sooner or purchase in greater quantities than they normally do.
For example, a pre-holiday newspaper advertisement may remind customers to stock up for the holiday by purchasing more than they typically purchase during nonholiday periods. Reinforce the Brand – Once a purchase is made, a marketer can use promotion to help build a strong relationship that can lead to the purchaser becoming a loyal customer. For instance, many retail stores now ask for a customer’s email address so that follow-up emails containing additional product information or even an incentive to purchase other products from the retailer can be sent in order to strengthen the customer-marketer relationship.
Personal selling Personal selling is a promotional method in which one party (e. g. , salesperson) uses skills and techniques for building personal relationships with another party (e. g. , those involved in a purchase decision) that results in both parties obtaining value. In most cases the “value” for the salesperson is realized through the financial rewards of the sale while the customer’s “value” is realized from the benefits obtained by consuming the product. However, getting a customer to purchase a product is not always the objective of personal selling.
For instance, selling may be used for the purpose of simply delivering information. Because selling involves personal contact, this promotional method often occurs through face-to-face meetings or via a telephone conversation, though newer technologies allow contact to take place over the Internet including using video conferencing or text messaging (e. g. , online chat). Among marketing jobs, more are employed in sales positions than any other marketing-related occupation. In the U. S. alone, the U. S.
Department of Labor estimates that over 14 million or about 11% of the overall labor force are directly involved in selling and sales-related positions. Worldwide this figure may be closer to 100 million. Yet these figures vastly under-estimate the number of people who are actively engaged in some aspect of selling as part of their normal job responsibilities. While millions of people can easily be seen as holding sales jobs, the promotional techniques used in selling are also part of the day-to-day activities of many who are usually not directly associated with selling.
For 13 May 24, 2009 [Marketing Communication in Banks] instance, top corporate executives whose job title is CEO or COO are continually selling their company to major customers, stock investors, government officials and many other stakeholders. The techniques they employ to gain benefits for their company are the same used by the front-line salesperson to sell to a small customer. Consequently, our discussion of the promotional value of personal selling has implications beyond marketing and sales departments.
Public Relation Public Relation is a management function that involves monitoring and evaluating public attitudes and maintaining mutual relations and understanding between an organization and its public. Public could include shareholders, government, consumers, employees and the media. It is the act of gettin g along with people we constantly come in touch with. PROs ensure internal cohesion in the company by maintaining a clear communications network between the management and employees. Its first objective is to improve channels of communication and to establ ish new ways of setting up a two-way flow of information and understanding.
Public relations as a separate career option has came into existence when lots of private or government companies and institution felt the need to market their product, service and facilities. Public image is important to all organizations and prominent personalities. The role of public relation specialist becomes pertinent in crisis situations when the correct and timely transmission of information can help save the face of the organization. Direct marketing Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing.
The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, and telemarketing) with consumers or businesses, usually unsolicited. The second characteristic is that it is focused on driving purchases that can be attributed to a specific “call-to-action. ” This aspect of direct marketing involves an emphasis on tractable, measurable positive (but not negative) responses from consumers (known simply as “response” in the industry) regardless of medium.
If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a website, then the effort is considered to be direct response advertising. 14 May 24, 2009 [Marketing Communication in Banks] Modern Indian Banking: Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India’s banking system has several outstanding chievements to its credit.
The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India’s growth process. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days.
The General Bank of India was set up in the year 1786. After that came the Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 3 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days, public had lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas.
It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks.
This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. The financial system of India has shown a great deal of resilience.
It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure. Different Sector in India:Public Sector Banks in India Private Sector Banks in India Cooperative Banks in India Regional Rural Banks in India Foreign Banks in India In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India.
Is marketing synonymous with sale and purchase of goods and services? Is there any difference between selling and marketing? Does marketing mean advertising? Is it fashionable to talk of relationship before going for marketing?
Before we get in to answering these questions, we will see some definitions of marketing. Marketing is the management process responsible for identifying, anticipating and satisfying customer’s requirements profitably. (British Institute of Marketing) Marketing is process of choosing markets to be in, products to offer, prices to change, distributors to use and message to send. (Philip Kotler) Marketing is an attitude of mind. It is a way of organizing the organization.
It is a range of activities which will employ ools and techniques in process of identifying, anticipating and satisfying customer requirements. Going by the above definitions one thing is clear. The entire activity related to marketing originates from Customer. It is those functions or that management disciplines which try to give value to the customers. No organization can exist without existence of customer. Anybody having a customer needs marketing. Hence by simple logic all organizations need marketing. Marketing is no longer confined to exchange of goods or satisfaction of demand only.
It has broadened its scope and it has also become more diffused within the organizations. That means marketing is no longer an isolated concern of few but has become everyone’s business and for good reasons. The very attributes of “market orientation” and “customer mindedness” are going to make the difference between success and failure in the fast changing market environment. Contributing towards creation of superior customer values has become the core competency in a marketer’s agenda.
Borrowing ideas from above mentioned definitions we can define bank marketing as the functions directed at understanding, meeting and satisfying customers financial needs effectively- keeping in mind the organizational objective. If the corporate objective of the bank may be growth in business which may result in more profit, the sole objective of marketing is profit through customer satisfaction. Marketing is much border concept than selling. While selling starts with the bank, for marketing the starting point is market.
Selling focuses on products while focus for marketing is customer’s needs and wants. While selling emphasizes on exchange concept, marketing is concerned with value concept. In selling cost determine the price while in marketing customer determines the price s. Selling may thrive of the casual relationship with customer while marketing believes in long term permanent relationship. Service Marketing In bank they don’t sell saving bank account, current account, fixed deposit, or various loan products like demand loan, personal loan, or term loan.
