Banking Service Marketing Mix

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The service marketing mix comprises off the 7p’s. These include: * Product
* Price
* Place
* Promotion
* People
* Process
* Physical evidence.

savings, current, fixed etc.
a. Term loan,
b. Clean loan,
c. Bill discounting,
d. Advances,
e. Pre-shipment finance,
f. Post-shipment finance,
g. Secured and unsecured lines of credit.

a. Guarantees, and
b. Letter of credit
a. Letter of credit, and
b) Foreign Currency.
a. Investment Counseling,
b. Project Counseling,
c. Merchant Banking, and
d) Tax Consultancy.
a. Traveller Cheques,
b. Credit Card,
c. Remittances,
d. Collections,
e. Sale of Draft,
f. Standing instructions, and
g. Trusteeship.

In banking the products are services. Services cannot be seen or protected like goods. The potential buyer of the services can form an opinion about the services offered. The product should suit the market needs. Bank services are viewed in terms of the satisfaction they deliver and not just the things that are created with value. The banks primarily deal in services and therefore, the formulation of product mix is required to be in the face of changing business environment conditions.

The changing psychology, the increasing expectation, the rising income, the changing lifestyles, the increasing dominations of foreign banks and the changing needs and requirements of the customers at large make it essential that they innovate their service mix and make them of worked class. In the formulation of service mix, the banks can follow two guidelines, first is related to the processing of product to market needs and the second is concerned with the processing of market needs to product. Marketing aims not only offering but also at creating/innovating the services/schemes found new to the competitors vis -à-vis- to the customers. The additional attraction, the product attractiveness would be a plus point, which would b e of great help in many ways. Thus, the formulation of product mix is found to be difficult task that requires world-class professionalism.

Pricing in banking relates to the interest rates paid by the bankers on deposits, interest charged by the banker on loans and demand draft, charges for various types of transactions and fees for certain services. In India deposit and lending rates are prescribed by RBI. Pricing policy of a bank is considered important for raising the number of actual customer.

In the formulation of marketing mix, the pricing decisions occupy a place of outstanding significance. The pricing decision include the decisions related to interest and fee or commission charged by bank. Keeping in view the level of satisfaction of a particular segment, the bank have to frame the pricing strategies. The banks are required to frame two-fold strategies. Strategies concerned with interest and commissions to be paid to the customer and interest and commissions to be paid by the customers for different types of services

The place decision mainly deals with selection of a suitable location for the branch. Sound location decisions help in activating the business. The location should have adequate availability of transportation, communication, electricity and other necessary facilities for the smooth functioning of the banks. Technological development, increased customer satisfaction, inadequacy of the traditional challenge to serve all customer segments have brought about ATM, telebanking, home banking, Internet banking and now SMS Banking. Another significant development is a strategic alliance set up by the private banks to overcome the handicap of limited branch network. In such alliance the branch network of one branch will be...
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