Marketing for Bankers

(MKT 542)

2 Quizzes
1 Presentation
Activities
Marketing for Bankers
The marketing concept emphasizes the importance of understanding and meeting customer needs. This concept has
evolved over time, adapting to changes in the marketplace and customer expectations.

1 Introduction to Marketing and Its Environment and Relevance of the

Subject to Banking, Challenges Involved in Marketing

2 Segmentation, Targeting and Positioning in the Context of Banking

Product Concept

3 Understanding and Analyzing 7P’s Framework and Its Relevance to

Banking

4 Consumer Markets and Consumer Behavior for Financial Needs

5 Strategic Planning and Marketing process

Marketing for Bankers
The marketing concept emphasizes the importance of understanding and meeting customer needs.
This concept has evolved over time, adapting to changes in the marketplace and customer
expectations.

6 Products and Services of the Axis Bank

7 New Product Development and Product Lifecycle

8 Services Marketing and Its Characteristics with special reference

to banking

9 Pricing Concepts

10 Concept of Integrated Marketing Communication

Marketing for Bankers
The marketing concept emphasizes the importance of understanding and meeting customer needs.
This concept has evolved over time, adapting to changes in the marketplace and customer
expectations.

11 Personal Selling and Direct Marketing

12 Managing Marketing Channels

13 How to develop advantage over competitors through differentiation

14 How marketers can create customer value in banking

15 Customer Value Management in Banking Industry

Marketing for Bankers
The marketing concept emphasizes the importance of understanding and meeting customer needs.
This concept has evolved over time, adapting to changes in the marketplace and customer
expectations.

16 Customer Relationship Management in Banking

17 Emerging challenges in Marketing of Financial Services

18 Ethics in Marketing and Corporate Social Responsibility

Quizzes / Assignments / Presentations / Exams

Chapter 1 :
Introduction to
Marketing for
Bankers
Marketing is a crucial aspect of any business, especially in today's
competitive landscape. This presentation aims to delve into the
world of marketing and explore its significance within the banking
industry.
Discussion

What is Marketing, Selling &

Advertising ?
What is the difference between
Them ?
Discussion

Advertising is part of the Selling

process,
Selling is part of the Marketing
process.
Marketing is way more than just
advertising and selling your
products or services.
Definition and Scope of Marketing
Marketing encompasses a broad range of
activities that are designed to attract customers
and build relationships. It's all about creating
value for customers and satisfying their needs.

Product Development
Creating and developing products or services that meet customer needs.

Pricing
Determining the right price point for products and services.

Distribution
Making products and services available to customers.

Promotion
Communicating the value of products and services to customers.
The Marketing Environment
The marketing environment consists of internal and external factors that influence the success of marketing efforts.
Understanding these factors is essential for effective decision-making.

Internal Environment External Environment Marketing Research

Factors within the organization Factors outside the organization Gathering and analyzing
that affect marketing decisions, that affect marketing decisions, information about the marketing
such as company resources, such as economic conditions, environment to make informed
culture, and capabilities. competition, and technology. decisions.
 Activity :
The Relevance of Marketing to Banking

Marketing plays a crucial role in

the banking industry.

Banks need to attract and retain

customers, and marketing helps
them achieve this by building
relationships and delivering value.
HOW ?
How Marketing helps in Banking

Marketing plays a crucial role in the banking industry. Banks need to attract and retain customers,
and marketing helps them achieve this by building relationships and delivering value.

1 Customer Acquisition
Marketing strategies help banks reach new customers and build a loyal customer base.

2 Product Differentiation
Marketing helps banks differentiate their products and services from competitors.

3 Brand Building
Marketing campaigns build brand awareness and positive brand associations.

4 Customer Loyalty
Marketing efforts contribute to customer retention and loyalty by providing excellent service
and value.
The Marketing Concept and its Evolution
The marketing concept emphasizes the importance of understanding and meeting customer needs. This concept has
evolved over time, adapting to changes in the marketplace and customer expectations.

1 Production Concept
Focus on producing and distributing products efficiently.

2 Product Concept
Focus on developing high-quality products with superior features.

3 Selling Concept
Emphasis on selling and promoting products to generate sales.

4 Marketing Concept
Focus on understanding and meeting customer needs and wants.

5 Societal Marketing Concept

Consideration of ethical and social responsibilities in marketing decisions.
The Marketing Mix and its
Components ( 7 P’s of Marketing)
The marketing mix refers to the controllable factors that marketing managers use to influence
customer responses. It is a set of tools that can be used to achieve marketing objectives.

Product Goods, services, or ideas that are offered

to customers.

Price The value exchanged for products or

services.

Place The distribution channels used to make

products available to customers.

Promotion The communication activities used to

inform, persuade, and remind customers
about products or services.
The Importance of Market Segmentation
Market segmentation is the process of dividing a market into distinct groups of buyers with different needs,
characteristics, or behaviors.

Identifying Target Effective Communication Increased Sales

Markets
Delivering targeted messages to Meeting the specific needs of
Targeting specific groups of the right customer segments. target markets to generate higher
customers with tailored marketing sales.
strategies.
Conclusion and Key Takeaways
Marketing is an essential aspect of business success. By understanding and applying marketing principles, companies
can attract and retain customers, build strong brands, and achieve their marketing objectives.

Customer Focus Strategic Planning Market Research Return on

Investment
Focus on understanding Develop a comprehensive Conduct thorough market
and meeting customer marketing strategy. research to understand Measure the effectiveness
needs. the target audience. of marketing efforts and
ensure a positive return
on investment.
"Who is Your Bank?"
Briefly share which
bank they use and
why they chose it.
Definition of Marketing

• Explanation of marketing as a concept

• Historical evolution of marketing
• Importance of marketing in business
Definition
Definitionof
ofMarketing
Marketing
Dr. Philip Kotler defines marketing as “the
science and art of exploring, creating and
• Explanation
delivering of satisfy
value to marketing
the as a concept
needs of a target
• Historical
market evolution
at a profit. of marketing
Marketing identifies
• Importance
unfulfilled needsofandmarketing
desires. in business
It defines,
measures and quantifies the size of the
identified market and the profit potential.
 Chapter 2
Segmentation, Targeting and Positioning in the
Context of Banking
STP of Banks
Let’s Do It With A Case Study
Market
Segmentation in
Banking
Market segmentation involves dividing a large market into smaller,
more homogeneous groups based on shared characteristics. In
the banking industry, this strategy enables financial institutions to
target specific customer segments with tailored products and
services, leading to greater customer satisfaction and profitability.
Understanding Customer Needs and
Preferences
1 Needs & Preferences
Customers differ in their financial needs, including saving, borrowing, investment, and
insurance. Understanding these unique needs is crucial for delivering relevant financial
solutions.

2 Lifestyle Factors
Lifestyle choices influence banking preferences. Factors like age, income, occupation, and
family size shape spending habits and financial priorities.

3 Financial Goals
Customers have specific financial goals, such as retirement planning, homeownership, or
education savings. Tailoring services to these goals increases customer loyalty and
engagement.

4 Digital Behavior
Modern banking requires understanding how customers interact with digital channels.
Preferences for online banking, mobile apps, and personalized digital experiences are key.
Demographic Segmentation in Banking
Age Income Location

Generational differences in Income levels determine financial Geographic location influences

financial needs and preferences resources and risk tolerance. local market dynamics. Banks
are significant. For example, High-income earners may seek can tailor services to regional
millennials prioritize online wealth management services needs, such as agricultural
banking while baby boomers while lower-income individuals lending in rural areas or
value personal interactions. may prioritize affordability. international banking in urban
centers.
Psychographic Segmentation
in Banking
Lifestyle Values Personality

Active and Customers who Risk-averse

outdoorsy value sustainability individuals may opt
individuals might might choose banks for conservative
prefer financial with ethical investment
services that align investment options. strategies, while
with their those with a high
adventurous tolerance for risk
lifestyle. might be interested
in high-yield
investments.
Geographic Segmentation in Banking

Urban vs. Rural Regional Differences International Expansion

Urban areas often have higher Regional disparities in economic Globalization has expanded
concentrations of banks and development, income levels, and banking services across borders.
diverse financial needs. Rural consumer behavior impact Understanding local regulations
areas may have limited banking banking strategies. and cultural nuances is essential
options and different economic for international expansion.
activities.
Behavioral Segmentation in Banking

1 Usage Frequency
Customers who frequently use banking services may require different products
and services compared to occasional users.

2 Product Loyalty
Loyalty programs and customized offerings can incentivize customers to remain
loyal to a specific financial institution.

3 Customer Journey
Analyzing customer interactions at different stages, from onboarding to account
management, helps identify areas for improvement.
Developing Targeted Banking Products
and Services
Personalized Offerings
Tailoring products and services to specific customer segments, such as offering student loans to
young adults or retirement planning services to senior citizens.

Digital Solutions
Developing user-friendly online banking platforms, mobile apps, and personalized digital
experiences to meet customer demands.

Value-Added Services
Offering additional services beyond traditional banking, such as financial education, investment
advice, and insurance.

Relationship Building
Building strong customer relationships through personalized communication, tailored advice,
and proactive service.
Conclusion: Leveraging
Market Segmentation for
Competitive Advantage

Market segmentation is essential for banks to thrive in a

competitive landscape. By understanding and targeting specific
customer segments, banks can develop effective marketing
campaigns, offer relevant products and services, and build
enduring customer loyalty. This approach leads to increased
revenue, improved customer satisfaction, and a sustainable
competitive edge in the banking industry.
Targeting in
Banks: A Strategic
Approach
Targeting is essential for banks to effectively reach their
customers and drive business growth. It allows banks to tailor
their products and services to the specific needs and preferences
of different customer segments.
Understanding Customer Segments
Demographics Psychographics Behavioral Data

This includes age, gender, This encompasses values, This includes transaction history,
income, location, and family size. interests, lifestyles, and attitudes. product usage, and customer
interactions.
Identifying High-Value Customers
1 High Transaction Volume
These customers frequently engage in financial transactions, indicating their active usage of
bank services.

2 Product Portfolio Diversity

Customers holding multiple bank products often demonstrate strong loyalty and a higher
likelihood of cross-selling opportunities.

3 High Account Balances

Customers with significant account balances contribute substantially to the bank's revenue
and profitability.

4 Positive Feedback & Advocacy

Customers who provide positive feedback and recommendations to others are valuable
assets for the bank's brand reputation.
Personalized Product and Service
Offerings
Tailored Loan Products
Offering loans with competitive interest rates and terms aligned with the customer's
financial needs and creditworthiness.

Personalized Investment Advice

Providing investment recommendations based on the customer's risk tolerance,
investment goals, and financial situation.

Exclusive Banking Services

Offering premium services such as concierge banking, priority access to financial
advisors, and exclusive events for high-value customers.
Leveraging Customer Data for
Targeted Marketing
1 Customer Segmentation
Categorizing customers based on shared characteristics to develop targeted
marketing campaigns.

2 Data-Driven Campaign Optimization

Utilizing customer data to refine marketing messages, channels, and timing for
greater effectiveness.

3 Personalized Communication
Sending customized emails, SMS messages, or push notifications based on
individual customer preferences and behavior.
Optimizing Cross-Selling and
Upselling Opportunities
Identify Potential Needs
Analyze customer data to identify gaps in their product portfolio and
potential areas for cross-selling or upselling.

Offer Relevant Solutions

Present tailored product recommendations that address the identified
needs, emphasizing value and benefits.

Provide Excellent Customer Service

Build strong relationships with customers, answer their questions, and
provide personalized support throughout the process.
Measuring the Effectiveness of
Targeting Strategies
KPI Description Measurement

Customer Acquisition Cost The cost incurred to Total marketing expenses

(CAC) acquire a new customer. divided by the number of
new customers acquired.

Conversion Rate The percentage of leads Number of customers

who convert into acquired divided by the
customers. total number of leads.

Return on Investment The profit generated from Total revenue generated

(ROI) targeting efforts relative to from targeting initiatives
the investment made. minus the total cost of
those initiatives, divided by
the total cost.
Video on STP

Targeting is crucial for banks to remain competitive in today's

market. By understanding customer segments, identifying high-
value customers, and leveraging customer data, banks can
personalize their offerings, optimize marketing efforts, and
achieve sustainable growth.
Positioning in
Banking: A
Comprehensive
Overview
Welcome to our presentation on positioning in the banking sector.
We'll explore the fundamentals of this crucial concept and its
impact on success within the industry.

by Sharad Khanna
Defining Positioning in the
Banking Sector
Positioning in banking refers to how a bank differentiates itself in the minds of
customers. It's about establishing a unique and desirable position for the bank
within the competitive landscape.

Value Proposition
The unique set of benefits a bank offers to its target customers.

Target Audience
The specific customer segments a bank focuses on serving.

Brand Image
The overall perception and associations customers have with a bank.
Importance of Effective Positioning
Effective positioning is essential for banking institutions to attract and retain customers. It helps to drive growth, build
loyalty, and enhance competitive advantage.

Increased Customer Improved Brand Enhanced Profitability

Acquisition Recognition
Positioning helps to target the
A strong positioning strategy can A clear and memorable position right customers, leading to higher
attract customers who value the helps customers distinguish the customer lifetime value and
unique benefits offered. bank from competitors. profitability.
Factors Influencing Positioning
Strategies
Various factors, both internal and external, influence the development of a successful positioning
strategy.

1 Market Trends
Understanding the latest trends and innovations in the banking industry is crucial.

2 Customer Needs
Understanding the needs and preferences of the target customer segments is essential.

3 Competitive Landscape
Analyzing the strengths and weaknesses of competitors is critical for developing a
competitive edge.

4 Regulatory Environment
Banks must comply with all relevant regulations and guidelines.
Differentiating Products and Services

Banks must differentiate their products and services to

stand out in the crowded market. This can be
achieved through innovative features, value-added
services, and unique offerings.

Product/Service Differentiation Strategy

Savings Account Higher interest rates,

personalized rewards
programs.
Loans Flexible terms, competitive
interest rates, streamlined
application process.
Investment Services Personalized financial
advice, access to exclusive
investment options.
Targeting Specific Customer
Segments
Banks must identify and target specific customer segments who will benefit from their
unique value proposition.

Segmentation
Divide the customer base into distinct groups with similar needs and
preferences.

Targeting
Focus marketing efforts on the chosen segments.

Positioning
Develop a unique position within the targeted segments.
Communicating Unique Value
Propositions
Banks must effectively communicate their unique value proposition to their target customers through
various marketing channels.

Advertising
Utilize various advertising channels to reach the target audience.

Website & Social Media

Create engaging online content and build a strong online presence.

Customer Service
Provide excellent customer service that reinforces the bank's value proposition.
Maintaining Competitive Advantage
through Positioning
Maintaining a competitive advantage requires continuous monitoring and adaptation of the bank's
positioning strategy in response to market changes and competitor actions.

1 Monitor the Market

Stay informed about industry trends, customer preferences, and competitor activities.

2 Adapt to Changes
Adjust the positioning strategy as needed to stay relevant and competitive.

3 Reinforce Value Proposition

Continuously communicate the bank's value proposition through consistent marketing
efforts.
END OF CHAPTER
Chapter 3 :
Understanding and
Analyzing 7P’s
Framework and Its
Relevance to Banking
The 7P's framework is a powerful tool for
understanding and analyzing the
marketing mix in any industry. It provides
a comprehensive framework for
developing effective marketing strategies
that resonate with customers and drive
business growth.
7 P’s of Marketing
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process and
7. Physical Evidence.
1. Product:
Defining the Banking Products and Services

Checking Accounts
These accounts are designed for everyday banking needs, including deposits, withdrawals, and
bill payments.

Savings Accounts
Savings accounts offer a safe place to accumulate funds and earn interest.

Loans
Various loan products cater to different needs, such as personal loans, mortgages, or business
loans.

Credit Cards
Credit cards provide convenient access to credit and reward programs.
 2. Price:
Pricing Strategies in the Banking Sector
Cost-Plus Pricing Value-Based Pricing Competitive Pricing

Banks calculate their costs of Banks assess the value Banks monitor competitors' prices
providing a service and add a customers perceive from their and adjust their own to remain
markup to determine the price. products and services and set competitive.
prices accordingly.
 3. Promotion:
Effective Marketing and Advertising in Banking

1 Digital Marketing
Banks leverage websites, social media platforms, and search engine optimization to reach
their target audience.

2 Content Marketing
Banks create informative and engaging content like blog posts, articles, and videos to attract
and educate customers.

3 Traditional Advertising
Banks still rely on television commercials, print ads, and radio ads to reach a wider audience.

4 Public Relations
Banks engage in public relations activities to build positive relationships with stakeholders.
 4.Place:
Delivery Channels and Branch Network in
Banking
1 Physical Branches
Traditional bank branches provide face-to-face interaction and personalized service.

2 ATMs
Automated teller machines allow customers to withdraw cash, deposit checks, and
transfer funds.

3 Online Banking
Online banking platforms offer convenient access to accounts, transactions, and
customer service.

4 Mobile Banking
Mobile banking apps provide on-the-go access to banking services and real-time
account information.
5. People:
Importance of Customer Service and
Employee Engagement
Customer Service
Excellent customer service is crucial for building customer loyalty and trust.

Employee Training
Well-trained employees are equipped to provide knowledgeable and efficient
assistance.

Employee Motivation
Motivated employees are more likely to provide exceptional service and go the extra
mile.

Positive Work Environment

A positive and supportive work environment fosters employee engagement and
productivity.
5. People:
Importance of Customer Service and
Employee Engagement
 6. Process:
Streamlining Banking
Operations and Workflows

Process Optimization Identify and eliminate

inefficiencies in banking
operations.

Technology Integration Utilize digital tools and

technologies to automate
and streamline processes.

Customer Experience Focus on streamlining

processes from the
customer's perspective.
7.Physical Evidence:
Creating a Positive Customer Experience

Branch Design
Banks should create welcoming and functional branch spaces that reflect their brand image.

Technology
Banks should invest in user-friendly technology and digital tools to enhance the
customer experience.

Branding
Consistent branding across all channels creates a cohesive and recognizable
customer experience.

Communication

Clear and effective communication with customers builds trust and

strengthens relationships.
Conclusion: Applying the
7P's Framework to
Enhance Banking
Performance
By carefully considering each of the 7P's, banks can create a
comprehensive marketing strategy that resonates with customers,
drives business growth, and enhances overall performance.
END OF CHAPTER