This document provides an overview of service marketing in the banking sector in India. It discusses the 7 Ps of marketing as they apply to banks - product mix, promotional mix, price mix, place, people, process, and physical evidence. It notes that while the 4 traditional Ps apply, an additional 3 Ps are important for services - people, process, and physical evidence. The document then analyzes various aspects of each P, such as types of products and services banks offer, elements of promotion, approaches to pricing, and the role of employees and processes in service delivery.

1. Service Comparison from Consumer
Perspective in Banking Sector
(Private vs. Public Sector Banks)
Bishnu Kumar 11EX-013
Davinder Singh 11EX-015
Pankaj Mohindroo 11EX-038
Prateek Wadhwa 11EX-040
Rajat Goel 11EX-043
Institute of Management Technology
Ghaziabad

2. Marketing of Services PGDM-Exec 2012
Table of Contents
Introduction .................................................................................................................................................. 2
What is marketing? ................................................................................................................................... 2
7 Ps of Bank Marketing ................................................................................................................................. 3
1. Product Mix ....................................................................................................................................... 3
2. Promotional Mix ............................................................................................................................... 4
3. Price Mix ........................................................................................................................................... 5
4. The Place ........................................................................................................................................... 6
5. The People ........................................................................................................................................ 6
6. The Process ....................................................................................................................................... 7
7. The Physical Evidence ....................................................................................................................... 7
Service Marketing in Banking Sector ............................................................................................................ 8
Structure of Banking Market......................................................................................................................... 8
Research Methodology ............................................................................................................................... 10
Analysis and Interpretation of Survey Data ................................................................................................ 12
Demographic Statistics ........................................................................................................................... 12
Survey Statistics ...................................................................................................................................... 14
Research Findings ....................................................................................................................................... 17
Conclusion ................................................................................................................................................... 18
Suggestions ................................................................................................................................................. 18
Appendix I – Questionnaire ........................................................................................................................ 19
References .................................................................................................................................................. 20
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3. Marketing of Services PGDM-Exec 2012
Introduction
Services marketing professionals need to determine how to effectively
communicate the services, process, deliverables and benefits of the products in
order to build client confidence. Tangible signals that indicate services quality and
value come from personal interaction, trusted recommendations, clear
communications, equipment used or processes followed and pricing of the products.
Services marketing is marketing based on relationship and value. It may be used
to market a service or a product. Marketing a service-base business is different
from marketing a goods-base business. There are several major differences,
including:
1. The buyer purchases are intangible
2. The service may be based on the reputation of a single person
3. Its more difficult to compare the quality of similar services
4. The buyer cannot return the service
The major difference in the services marketing versus regular marketing is that
instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three
additional "P's" consisting of People, Physical evidence, and Process. Service
marketing also includes the service scape referring to but not limited to the
aesthetic appearance of the business from the outside, the inside, and the general
appearance of the employees themselves. Service Marketing has been relatively
gaining ground in the overall spectrum of educational marketing as developed
economies move farther away from industrial importance to service oriented
economies.
What is marketing?
Marketing is the flow of goods and services from the producer to consumer. It is
based on relationship and value. In common parlance it is the distribution and sale
of goods and services. Marketing can be differentiated as:
· Marketing of products
· Marketing of services.
Marketing includes the services of all those indulged may it be then the
wholesaler retailer, Warehouse keeper, transport etc. In this modern age of
competition marketing of a product or service plays a key role. It is estimated that
almost 50% of the price paid for a commodity goes to the marketing of the product
in US. Marketing is now said to be a term which has no particular definition as the
definitions change every day.
"Managing the evidence" refers to the act of informing customers that the service
encounter has been performed successfully. It is best done in subtle ways like
providing examples or descriptions of good and poor service that can be used as a
basis of comparison. The underlying rationale is that a customer might not
appreciate the full worth of the service if they do not have a good benchmark for
comparisons.
However, it is worth remembering that many of the concepts, as well as many of
the specific techniques, will work equally well whether they are directed at products
or services. In particular, developing a marketing strategy is much the same for
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4. Marketing of Services PGDM-Exec 2012
products and services, in that it involves selecting target markets and formulating a
marketing mix. Thus, instead of talking of 'goods' and of 'services', it is better to
talk of 'tangibles' and 'intangibles'. Levitt also went on to suggest that marketing a
physical product is often more concerned with intangible aspects (frequently the
`product service' elements of the total package) than with its physical sales after
service. Charles Revlon made a famous comment regarding the business of Revlon
Inc.: `In the factory we make cosmetics. In the store we sell hope.' Arguably,
service industry marketing merely approaches the problems from the opposite end
of the same spectrum.
7 Ps of Bank Marketing
1. Product Mix
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.
Of course the public sector commercial banks have launched number of policies
and programs for the development of backward regions and welfare of the
weaker sections of the society but at the same time it is also right to mention
that their development oriented welfare programs are not optimal to the
national socio economic requirements. A proportional contraction of the number
of customers is psychology, the increasing expectation, the rising income, the
changing lifestyle, the increasing domination of foreign banks and the changing
needs and requirements of the customers at large make it essential that they
innovate their service mix. The development of new generic product, especially
when the business environment is regulated is found to be a difficult task.
However, it is pertinent that banks formulate a package in tune with the
changing business conditions. Against this background, we find it significant
that the banking organizations minify, magnify, combine and modify their
service mix.
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. In the first process,
the needs to the target market are anticipated and visualized and therefore, we
expect the prices likely to be productive. In the second process, the banks react
to the expressed needs and therefore we consider it reactive. It is essential that
every product is measured up to the accepted technical standards. Technical
perfection in service is meant prompt delivery, quick disposal, and presentation
of right data, right filing, proper documentation or so.
Marketing aims at not only offering but also at creatinginnovating the
servicesschemes found new to the competitors vis-a-vis to the customers.
The additional attractions, the product attractiveness would be a plus point of
its mix, which would help you in many ways. This makes it essential that the
banking organizations are sincere to the innovations process and try to
enrich their peripheral services much earlier than the competitors. We also
find the product portfolio of the banks. While formulating the services mix, it
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5. Marketing of Services PGDM-Exec 2012
is also pertinent that the bank professionals make possible affair
synchronization of core and peripheral services. To be more specific, the
peripheral services need an intensive care since the core services are found
by and large the same. thus appears to be an important functional
responsibility of marketing professionals.
2. Promotional Mix
Promotion mix includes advertising, publicity, sales promotion, word-of-
mouth promotion, personal selling and telemarketing, Each of these service
needs to be applied in different degree. These components can be useful in
banking business in the following ways:-
Advertising
Advertising is paid form of communication. Banking organizations use this
component of the promotion mix with motto of informing, sensing and
persuading the customers. While advertising it is essential to be aware of key
decision making areas so that it helps banks at micro and macro levels.
Finalizing the budget
This is related to the formulation of the budget for advertisement. The bank
professionals, senior executives and even the policy planners are found to be
involved in the process. The business of a bank determines the scale of the
advertisement budget. In addition, the competition also plays a decisive role in
determining the budget taking in account the change in the rival‟s strategy.
Selecting a suitable vehicle
There are a number of devices to advertise, such as broad cast media,
telecast media and print media. In the face of the budgetary provisions, it is
necessary to select a suitable vehicle. For promoting the banking business, the
print media is found to be economic as well as effective.
Making possible creative
The advertising professionals bear the responsibility of making the appeals,
slogans and messages more creative. Here, creative means making the
advertisement programs distinct to the competitive organizations, which are
active in influencing the impulse of the customers and successful in informing
and sensing the customers. This requires an in-depth knowledge of the
receiving capacity of the target market for which the advertisements are
designed.
Testing the effectiveness
It bears an analogous significance that our advertisements are effective in
influencing the impulse of customers by energizing persuasion. For making the
process effective, it is essential to test the effectiveness before launching of the
commercial advertisements.
Managers: Instrumentality of branch
At micro level, a branch manager bears the responsibility of advertising
locally so that the messages reach the target audience.
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6. Marketing of Services PGDM-Exec 2012
Characters and themes
At apex level it is also important that while advertising the senior executives
watch the process minutely and select events, characters having a regional
orientation. The popular characters and sensational moments are likely to be
impact generating. The theme for appeals and messages also needs due
attention. Of course, they have a legitimate right of advertising but it is not
meant that like the goods manufacturing organizations, the service generating
organizations also start making invasion on culture. It is necessary to regulate a
bias to gender, profession, region or so.
Public relations
In the banking services the effectiveness of public Relations is found in high
magnitude. It is in this context that difference is found in designing of the mix
for promoting the banking services.
Telemarketing
The telemarketing is a process of promoting the business with the help of
sophisticated communication network. Telemarketing is found instrumental in
advertising the banking services and the banking organizations can use this tool
of the promotion mix both for advertising and selling. This minimizes the
dependence of banking organizations on sales people and just a counter or
center as listed in the call numbers may service multi- dimensional services.
Telemarketing is likely to play an incremental role in marketing the banking
services. The leading foreign banks and even some of the private sector
commercial banks have been found promoting telemarketing and they have
been getting positive results for their efforts.
Word-Of- Mouth
Much communication about the banking services actually takes place by
word-of-mouth information, which is also known as word- of- mouth promotion.
The oral publicity plays an important role in eliminating the negative comments
and improving the services. This also helps the banker to know the feedback,
which may simplify the task of improving the quality of services. This
component of promotion mix is not to influence budget adversely or generate
additional financial burden. By improving the quality of services and by offering
small gifts to the word- of- mouth promoters, bankers can get more business
command in their area.
The above facts make it clear that such kind of promotion is influenced by a
number of factors. The most dominating factor is the quality of services offered.
The bank professionals, the frontline staff and the senior executives should
realize that degeneration in quality would make this tool effective.
3. Price Mix
In the formulation of marketing mix, the pricing decisions occupy a place of
outstanding significance. The pricing decisions include the decisions related to
interest and fee or commission charged by banks. Pricing decisions are found
instrumental in motivating or influencing the target market. The RBI regulates
the rate of interest and the Indian Banks‟ Association controls other charges. In
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7. Marketing of Services PGDM-Exec 2012
our country, the price mix is more important because the banking organizations
are also supposed to sub serve the interests of the weaker sections and the
backward regions. Also in making the pricing decisions, the Government Of
India instrumentalists or commands everything as a shadow policy maker. This
also complicates the price mix for banking sector.
Pricing policy of a bank is considered important for raising the number of
customer vis-à-vis the accretion of deposits. Also the quality of service provided
has direct relationship with the fees charged. Thus while deciding the price mix
customer services rank the top position. Banks also have to take the value
satisfaction variable in to consideration. The value and satisfaction cannot be
quantified in terms of money since it differs from person to person. Keeping in
view the level of satisfaction of a particular segment, the banks have to frame
the pricing strategies.
The banking organizations are required to frame two-fold strategies. First,
the strategy is concerned with interest and fee charged and the second strategy
is related to the interest paid. Since both the strategies throw a vice-versa
impact, it is important that banks attempt to establish a correlation between
two. It is essential that both the buyers as well as the sellers have feeling of
winning.
4. The Place
Places refer to the establishments and functioning of the network of branches
and other offices through banking services are delivered. Objective is to offer
the right product, at right place, at right time and at a minimum cost. The more
branches and customer access points a bank has, more likely is to gain
business from different sections of people because the proximity of a branch
plays a determinant role in selecting a bank.
5. The People
Sophisticated technologies no doubt, inject life and strength to our efficiency
but the instrumentality of sophisticated technologies start turning sour if the
human resources are not managed in a right fashion. We can‟t deny the fact
that if foreign banks are performing fantastically; it is not only due to the
sophisticated information technologies they use but the result of a fair
synchronization of new information technologies and a team of personally
committed employees. The moment they witness lack of productive human
resources even the new generation of information technologies would hardly
produce the desired results. In addition to the professional excellence, the
employees working in the foreign banks are generally value based.
Thus we accept the fact that generation of efficiency is substantially
influenced by the quality of human resources. The quality for banking sector is
an aggregation of all the properties, which are found essential for generating
the efficiency and projecting a fair image. Even efficiency essentially is
supported by ethical dimension, humanity and humanism. The development of
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8. Marketing of Services PGDM-Exec 2012
human resources makes the ways for the formation of human capital. Human
resources can be developed through education, training and by psychological
tests. Even incentives can inject efficiency and can motivate people for
productive and qualitative work.
6. The Process
• Flow of activities: all the major activities of banks follow RBI guidelines.
There has to be adherence to certain rules and principles in the banking
operations. The activities have been segregated into various departments
accordingly.
• Standardization: banks have got standardized procedures got typical
transactions. In fact not only all the branches of a single-bank, but all the banks
have some standardization in them. This is because of the rules they are
subject to. Besides this, each of the banks has its standard forms,
documentations etc. Standardization saves a lot of time behind individual
transaction.
• Customization: There are specialty counters at each branch to deal with
customers of a particular scheme. Besides this the customers can select their
deposit period among the available alternatives.
• Number of stores: numbers of steps are usually specified and a specific
pattern is followed to minimize time taken.
• Simplicity: in banks various functions are segregated. Separate counters
exist with clear indication. Thus a customer wanting to deposit money goes to
„deposits‟ counter and does not mingle elsewhere. This makes procedures not
only simple but consume less time. Besides instruction boards in national
boards in national and regional language help the customers further.
• Customer involvement: ATM does not involve any bank employees.
Besides, during usual bank transactions, there is definite customer involvement
at some or the other place because of the money matters and signature
requires.
7. The Physical Evidence
The physical evidences include signage, reports, punch lines, other tangibles,
employee‟s dress code etc. The company‟s financial reports are issued to the
customers to emphasis or credibility. Even some of the banks follow a dress
code for their internal customers. This helps the customers to feel the ease and
comfort.
Signage: each and every bank has its logo by which a person can identify the
company. Thus such signages are significant for creating visualization and
corporate identity.
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9. Marketing of Services PGDM-Exec 2012
Tangibles: banks give pens, writing pads to the internal customers. Even the
passbooks, cheque books, etc reduce the inherent intangibility of services.
Punch lines: punch lines or the corporate statement depict the philosophy
and attitude of the bank. Banks have influential punch lines to attract the
customers.
Service Marketing in Banking Sector
Banking marketing consists of identifying the most profitable markets now and in
future, assessing the present and future needs of customers, setting business
development goals, making plans-all in the context of changing environment.
Marketing approach in banking sector had taken significance after 1950 in western
countries and then after 1980 in Turkey. New banking perceptiveness oriented
toward market had influenced banks to create new market. Banks had started to
perform marketing and planning techniques in banking in order to be able to offer
their new services efficiently.
Marketing scope in banking sector should be considered under the service
marketing framework. Performed marketing strategy is the case which is
determination of the place of financial institutions on customers‟ mind. Bank
marketing does not only include service selling of the bank but also is the function
which gets personality and image for bank on its customers‟ mind. On the other
hand, financial marketing is the function which relates uncongenitalies, differences
and non-similar applications between financial institutions and judgment standards
of their customers.
The reasons for marketing scope to have importance in banking and for banks to
interest in marketing subject can be arranged as:
Change in demographic structure: Differentiation of population in the number
and composition affect quality and attribute of customer whom benefits from
banking services.
Intense competition in financial service sector: The competition became intense
due to the growing international banking perceptiveness and recently being non-
limiting for new enterprises in the sector. Increase in liberalization of interest rates
has intensified the competition.
Bank’s wish for increasing profit: Banks have to increase their profits to create
new markets, to protect and develop their market shares and to survive on the
basis of intense competition and demographic chance levels.
Structure of Banking Market
The globalization of service industry revealed the necessity to develop the
strategy of new market entry. The analysis of market attractiveness facilitated the
decision making regarding modes of service firms‟ entry and their further expansion
into the new markets. The effectiveness of operation in the new markets depends
on comprehensive marketing planning through application of marketing techniques.
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10. Marketing of Services PGDM-Exec 2012
This project, aims to compare and contrast service marketing theory and practice
through banking sector. It firstly introduces the concept of services and analyses
the nature of services (intangibility, inseparability, variability and perishability). It
secondly develops extended marketing mix for services highlighting the importance
of people, physical cues, and processes in service management. Three types of
marketing used in service industries are being introduced: Internal Marketing,
Interactive Marketing and Evaluation Processes. Apart from that tasks that service
forms face are being discussed: Managing Differentiation, Managing Service Quality
and Managing Productivity.
Marketing activities of firms begin with determination of the market that they
want to offer their services or goods to. Firms must find out the features of the
market that it is planning to enter and analyze the existing market condition in
those areas. While marketing manager is arranging the variables under firm‟s
control, she/he should also adopt the external variables. We could call the factors
that affect banks‟ market as technological developments, legal arrangements and
competition.
List of Private Banks in India
Bank of Punjab Bank of Rajasthan Dhanalakshmi Bank
Catholic Syrian Bank Centurion Bank Development Credit Bank
City Union Bank Federal Bank Karnataka Bank
ING Vysya Bank Jammu & Kashmir Bank Laxmi Vilas Bank
HDFC Bank ICICI Bank South Indian Bank
IndusInd Bank Axis Bank United Western Bank
List of National Banks in India
Allahabad Bank IDBI Bank Bank of Baroda
Bank of Maharashtra Canara Bank Central Bank of India
Dena Bank Indian Bank OBC
Punjab National Bank SBI and Associates State Bank of Mysore
UCO Bank Vijaya Bank Punjab & Sind Bank
Syndicate Bank United Bank of India
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Research Methodology
The research carried out under the topic, was based on the combination of
primary and secondary data. The questionnaire method was adopted to collect
views of various people about the two sectors of banking industry in India. The
survey data was collected from professionals and students at various b-schools.
The sample of strategy applied in this regard was random. The research design
was a blend of descriptive and exploratory method. The ranking scale method was
applied in this process.
The research comprises of defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data,
making deductions and reaching conclusion; and at last carefully testing the
conclusions to determine whether they fit formulating hypothesis. The research
process is carried out to a series of step, which are required to be taken in
chorological order. The major marketing research steps are as follows:
 Problem identification
 Research design
 Data collection
 Data analysis & interpretation
 Report Presentation
Problem Identification
The first and foremost step in this research is to identify the problem chosen for
investigation. The step has very significance, once it is said “A Problem well
identified is half way to solution”. The problem considered for investigation in this
project is the “perception of customers towards the two sectors of banking in India
in terms of services and satisfaction”.
Research Design
A research design is a master plan or model for the formal investigation. Once
the formal investigation is decided, the researcher must formulate the formal plan
of investigation. A research design is the specification of methods & procedure, for
acquiring the information needed for solving the problem. The formal investigation
plan will concentrate on the selection of sources of information and the selection of
methods and procedures for gathering the data. Data gathering forms are
prepared.
We have used the Descriptive Method of the three basic types of research design
for our study –
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12. Marketing of Services PGDM-Exec 2012
Descriptive Research Design
The descriptive study is typically concerned with determining frequency with
which something occurs or variable vary together this study is guided by an initial
hypothesis. Descriptive studies are those studies, which are concerned with
describing the characteristics of a particular individual, or of a group.
Descriptive research includes surveys and fact-finding enquiries of different
kinds. The major purpose of descriptive research is description of the state of
affairs as it exists at present. In social science and business research we quit use
the term Ex post facto research for descriptive research studies.
Data Source
Primary Data
Primary data are those data, which are obtained for the first time by the
investigator himself. In order words, by primary data we mean those data, which
are originally, i.e., those in which little or no grouping has been made, the instance
being recorded or itemized encountered.
The source of primary data used in my project is the questionnaire. Primary are
the raw data like raw material. Primary data are according to object of investigation
and used without correction. The collection of primary data requires large sum,
energy and time. Precautions are not necessary in the use of the primary data.
Secondary Data
Secondary data means data that are already available i.e; they refer to the data,
which have already been collected and analyzed by someone else. When the
researcher utilizes secondary data, then he has to look in to various sources from
where he can obtain them. In this cause he is certainly not confronted with the
problems that are usually associated with the collection of original data. Secondary
data may either be published data or unpublished data.
We have collected the primary data through Questionnaire method which consist
a series of questions whose answers could be analyzed to get a fair idea on the
situation under consideration. These questions give the respondents the liberty to
speak freely. Questionnaire had been prepared to get fair response from the
people. To obtain the best end results without any kind of biasness, get a brief idea
about sampling and benefits for making inferences for tabulations and calculations
with research instruments.
Data collection method
We have used Google Forms to get online response on the survey which was
collected on the backend spreadsheet.
Data Analysis
For the analysis of the data we have used the “Percentage & Random Sampling”
method. Percentage & Random Sampling is used to measure different psychological
aspects such as attitudes, perceptions and preference of people with the help of
certain pre-defined set of stimuli and instructions. We will show our graphical
representations in percentage.
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13. Marketing of Services PGDM-Exec 2012
Analysis and Interpretation of Survey Data
Total Respondents: 127
Demographic Statistics
Gender:
Male 82
Female 45
Age:
18-24 20
25-35 94
36-50 10
More than 50 3
Profession:
Student 33
Service 74
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Housewife 8
Business 8
Others 4
Annual Income:
Less than 2 lakh 31
2 to 5 lakh 14
5 to 10 lakh 52
10 to 25 lakh 27
More than 25 lakh 3
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Survey Statistics
Do you have Account(s) in Bank(s):
All the respondents answered as they have at least one account in a bank.
The Account(s) are with which type of Bank(s)
Public Sector 17
Private Sector 33
Both 77
Which of the below would you prefer for banking?
SBI 58
ICICI 69
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Why would you prefer the above?
ICICI SBI
Services at Branch 55 Services at Branch 21
Customer Service 59 Customer Service 13
Innovation 23 Innovation 2
Branch / ATM Availability 46 Branch / ATM Availability 17
Product Range 23 Product Range 18
How do you access your account?
Branch Banking 52
Net Banking 107
Telephone Banking 10
Mobile Banking 22
ATM 89
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How would you rate SBI and ICICI?
SBI ICICI
Poor 5 6
Average 25 23
Good 71 51
Very Good 24 34
Excellent 2 13
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Research Findings
Based on the results of the questionnaire survey, below listed are the findings –
 The number of male respondents was almost double than the female
respondents.
 74% respondents were in the age range of 25-35 years
 Around 58% of the respondents were in the Service category
 Around 41% respondents were in the annual income range of 5 to 10 lakh
whereas 21% were in the range of 10 to 25 lakh
 All the respondents have atleast one account with a bank
 Approx. 61% respondents have account in both public and private sector
banks whereas 26% has accounts only in private sector banks
 54% respondents prefer ICICI over SBI
 According to the responses we see that ICICI won over SBI on all the
given preference parameters with a major margin.
 ICICI is considered more innovative than SBI
 ICICI has better customer service than SBI
 SBI has poor Service at Branches
 ICICI has more Branch/ATM availability over SBI
 Respondents majorly access their account through Netbanking and ATMs
 With so many drawbacks with SBI, 56% respondents have rated it as
Good, whereas only 40% rated ICICI as good
 ICICI was rated as Excellent for more than 6 times than SBI
Unique suggestions received for ICICI from the respondents –
 They are good. Should try to bring in more offers for the Customers quite
frequently.
 ICICI bank should become more customer friendly in terms of charges
they take on various services.
 Should keep on innovating and try to improve their services day by day.
 They must provide better service and response to the customers.
 They can enhance the ease of enabling internet banking.
 ICICI charges unnecessary fee. Its employees are all like "pooch ke batata
hoon".
 ICICI should have the policy that 2 accounts can be linked with 1 mobile
no and can have transactions even with the same number without linking
the accounts online. This is currently not possible in ICICI and I faced the
same problem.
 ICICI bank should become more customer friendly in terms of charges
they take on various services.
 They should continuously keep on innovating and try to improve their
services day by day.
 Be more user-friendly and Prompt action.
Unique suggestions received for SBI from the respondents –
 SBI should be more professional in terms of Branch Banking.
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19. Marketing of Services PGDM-Exec 2012
 Lack of professionalism in public sector banks, quality of services is very
poor; opening an account takes longer duration than private banks etc.
public sector banks should look into these matters seriously.
 Try to improve your service with low customer wait time and great CRM
quality with proper service.
 Improve Service
 Certain customer services like making of demand draft should be made
more economical. The Moto of profit earning on these services should be
less because it creates a better customer image.
 They should come with good products
 Improve the customer service.
 Need to add more security features.
 Bad services, late response, no proper info available.
 Please improve your customer interaction by making your staff more
polite.
 Technology/IT/Innovation need to happen more.
 Best practices of others could be adopted.
 SBI should be more professional in terms of Branch Banking.
Conclusion
 Private sector banks are preferred because of their customer service and
branch services.
 Both sector banks have their drawbacks but private sector is still more
preferred because of its services and availability.
 Private sector should not charge unnecessary fees, because customers
these days are conscious about it and might move away or find better
banking alternatives.
 Consumers are more technology oriented and prefer transacting online or
through ATMs, rather than visiting a bank branches. Hence, improving on
that front might help banks gain more customer base.
 Public sector banks lack respect for their customer which is one of the
major reasons of consumers preferring private banks.
 Public sector banks need to be more customers focused.
Suggestions
i. The business transaction hours can be flexible.
ii. The can open their branches at the shopping place so that customers may
have easy availability of finance.
iii. Customer complaint system can more effective and informative.
iv. Developing strong cultural values
v. Bonding with customers
vi. Responsiveness
vii. Fast & Decentralized decision making
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Appendix I – Questionnaire
The Questionnaire used for the primary research is as below –
Demographic Information
Gender Male
Female
Age 18-24
25-35
36-50
More than 50
Profession Student
Service
Housewife
Business
Others
Annual Income Less than 2 lakh
2 to 5 lakh
5 to 10 lakh
10 to 25 lakh
More than 25 lakh
Survey Questions
Do you have Account(s) in Bank(s) Yes
No
The Account(s) are with which type of Bank(s) Public Sector
Private Sector
Both
Which of the below would you prefer for banking? SBI
ICICI
Why would you prefer the above? Services at Branch
Customer Service
Innovation
Branch / ATM Availability
Product Range
How do u access your account? Branch Banking
Net banking
Telephone Banking
Mobile Banking
ATM
How would rate SBI? Poor
Average
Good
Very Good
Excellent
How would rate ICICI? Poor
Average
Good
Very Good
Excellent
Any suggestion for the Preferred Bank?
Any suggestion for the Non-Preferred Bank?
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21. Marketing of Services PGDM-Exec 2012
References
 www.scribd.com
 www.wikipedia.com
 Marketing of Banking Products – Pradeep Revu
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