General Bank Management
Marketing Management for Bankers
What is Marketing…??
Making products available in stores?
All of the above, plus much more!
Marketing = ?
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
Marketing = ?
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.
Simple Marketing System
(a collection (a collection
of sellers) of Buyers)
Marketing = ?
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
Marketing is all about managing the four P‘s –
The 4 Ps & 4Cs
Solution Price Promotion
Difference Between - Sales & Marketing ?
trying to get the customer to want what the
trying to get the company produce what the
Scope – What do we market
Ideas and concepts
Core Concepts of Marketing
Based on :
Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
Core Concepts of Marketing
Needs, wants Utility, Value &
Marketing & Xchange, Transaction
Core Concepts of Marketing
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
In order to understand Marketing let us begin with the
Who is a Customer ??
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
CUSTOMER has needs, wants, demands and
Understanding these needs is starting point of the
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
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
Satisfaction - Based on a comparison of performance
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction
Customers - Problem Solution
As a priority , we must bring to our customers
―WHAT THEY NEED‖
We must be in a position to UNDERSTAND their
Or in a new situation to give them a chance to AVOID
Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
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
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
The Strategic-Planning, Implementation,
and Control Process
Business Strategic-Planning Process
Business Mission Goal Formulation
(Strength/ Weakness analysis)
Competitor Internal Analysis
Supplier Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Opportunities & Threats
Strength & Weaknesses
Identity Core Competencies
Fit internal Competencies with external opportunities
The Marketing Plan
A written document that acts as a guidebook of
marketing activities for the marketing manager
CONTENTS of MARKETING PLAN
Business Mission Statement
Situation Analysis (SWOT)
Target Market Strategy
Place – Distribution
Implementation, Evaluation and Control
The Marketing Process
Why a product like radio declined
and now once again emerging as
an entertainment medium ?
What Were the Drivers of This Change ?
Government policy ?
Other media substitutes ?
Why Market Leaders Suffered ?
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.
External Marketing Environment
External Environment Social
is not controllable Ever-Changing
Product Physical / Natural Conditions
is the assessment of the external forces that act upon the
firm and its customers, that create threats & opportunities
Product is . . . . .
Anything that is offered to the market for
attention, acquisition, use or consumption that
satisfies a want or a need
Types of Products
Product Items, Lines, and Mixes
A specific version of a product
that can be designated as a
distinct offering among an
A group of closely-related
All products that an
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
Consistency – how closely related the product lines are in
Gillette’s Product Lines & Mix
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
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
What is a Service? Defining
An act or performance offered by one party to another
(performances are intangible, but may involve use of
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
Some Industries - Service Sector
Banking, stock broking Health care
Restaurants, bars, Wholesaling and retailing
catering Laundries, dry-cleaning
Insurance Repair and maintenance
News and entertainment Professional (e.g., law,
Transportation (freight and
Classification of Services
Banking Pure Intangible
Major Service with
Product = Service
Major Product with
Materials / Components
Pure Tangible Product
Major Characteristic of Services
Intangibility – Services are intangibility cannot be seen,
tasted, felt, heard or smelled before purchase.
Inseparability - Services are produced and consumed
Variability or Heterogeneity – Services are highly variable
Perishability – Services cannot be stored.
Non Ownership - Services are rendered but there is no
transfer of title
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.
The “8Ps” of Integrated Service
Management vs. the Traditional “4Ps”
► Product elements
► Place, cyberspace, and time
► Productivity and quality
► Promotion and education
► Physical evidence
► Price and other user outlays
The Give and Get of Marketing
Great Words on Marketing
1. ―The purpose of a company is ‗to create a customer…The only
profit center is the customer.‘‖
2. ―A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.‖
3. ―The aim of marketing is to make selling unnecessary.‖
4. ―While great devices are invented in the Laboratory, great
products are invented in the Marketing department.‖
5. ―Marketing is too important to be left to the marketing
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
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
Much happens before and after the sale to affect
Stages of Customer Interaction
What Changed in Marketing…
Old Economy New Economy
• Organize by product units • Organize by customer segments
• Focus on profitable transactions • Focus on customer lifetime value
• Look primarily at financial • Look also at marketing scorecard
• Focus on shareholders • Focus on stakeholders
• Marketing does the marketing • Everyone does the marketing
• Build brands through advertising • Build brands through performance
• Focus on customer acquisition • Focus on customer retention
• No customer satisfaction • Measure customer satisfaction and
measurement retention rate
• Over-promise, under-deliver • Under-promise, over-deliver
Are Banks truly
customer - centric?
Myth 1 – The larger the range of products, the more
customer-centric I am.
Mythbuster – The range of products has
emerged from being
Myth 2 – Better technology (read CRM) leads to
better customer service.
Mythbuster – Technology
alone does not deliver,
helps people do.
Myth 3 – Launch a product and the customer will start
- Give a customer a card and he will learn how to play
with it immediately
Mythbuster – Customers need
To be educated too…
Myth 4 – The only way to get a customer is from
Mythbuster – Customers
are not only present
where competition is.
Myth 5 – Just advertise and - You will sell.
Mythbuster – Advertising will only sell,
Not retain customers.
Myth 6 – No difference between marketing & selling
Mythbuster – “Selling focuses on the needs of the
seller; marketing on the needs of the buyer.
Myth 7 – In the absence of relationships ‘trust’ builds
Mythbuster – Trust is not a differentiator at all…
it is the very minimum that the customer expects!!
So what will the differentiators be :
• Technology ?
• Brand ?
The real differentiator of
customer – centricity in a
commoditised world of financial
Customer Service !