SCDL MBA PROJECTS:the study of bank marketing

INDEX

SR. NO.	DESCRIPTION	Pg no.
	Executive summary	1-4
1.	The Financial System	4-12
2.	Origin of The Word BANK	13-19
3.	Definition of Bank and marketing	19-23
4.	Finance and banking in India	23-35
5.	Users of Banking Services	36-39
6.	Meaning of Marketing	39-41
7.	Evolution of the marketing concept	41-44
8.	Marketing and Competition	44-
13		47-
14.	Meaning of Bank Marketing	64-66
15.	Market Research in Indian Banks	66-73
21	Increasing Importance of Marketing in Banking Industry
22.	Market Segmentation
27.	Marketing Mix for Banking Services	88-89
28.	Strategies for Segmentation	89-93
29	Marketing Mix for banking services
30	Strategies for effective bank marketing in India
	Technology in Banking
	What are customer services
	Case study	114-119
	Bank Marketing in the Indian Perceptive	119-121
	Future of Bank Marketing	121-127
	Conclusion	127-129
	Refrences	130

THE FINANCIAL SYSTEM

The financial system consists of variety of institutions, markets and instruments that are related in the manner shown in the below figure, it provides the principal means by which saying are transformed into investment. Given its role in the allocation of resources, the efficient functioning of the financial system is of critical importance to a modern economy. Financial manager negotiate loans from financial institutions, raises resources in financial marked and invests surplus funds in financial market. In very significant way he manages the interface between the form and its financial environment.

Financial System placed a very important role in the development of a country. Through Financial System, entire money or money equals are channelized in such a way so that each sector of economy like industry, agriculture and services can be developed rationally. Financial sector development is the locomotive force for economic development of a country.

ORIGIN OF THE WORK ‘BANK’

According to some economists the word ‘Bank’ has been derived from the German word BANC which means a Joint Stock Firm while others say that it has been derived from the Italian world ‘BANCO’ which means a heap or mound.

There is still another group of people who believe that word bank has been derived from the Greek work ‘BANQUE’ which means a bench. In the olden days, Jews entered into money transactions sitting on benches in a marked place. When a banker was not in a position to meat his obligations, the on which he was carrying on the money business was broken into pieces and the was taken as bankrupt. Thus both the words Bank or bankrupt are said to have origin from the word ‘Banque’.

DEFINITION OF BANK

According to Oxford English Dictionary, Bank is, “An establishment for custody of money received from or on behalf of, its customers. Its essential duty is the payment of the orders given on it by the customers, its profit mainly from the investment of money left unused by them”.

Banking Regulation Act, 1949 (Sec. 5(c)), has defined the banking company as, “Banking Company means any company which transacts business of banking in India”. According to Section 5B, “banking means the accepting of deposit of money from the public for the purpose of leading or investment, which are repayable on demand or otherwise and are withdrawable by cheque, draft, order or otherwise.”

Different economists, banking professionals and authorities explained their viewpoint regarding bank or commercial bank. It has been rightly said by A.K. Basu that a general definition of a bank or banking is by no means easy, as the concepts of banking differ from age to age, and country to country.

FINANCE AND BANKING IN INDIA

India is a vast country, Before 1947, undivided India was equal to Europe excluding Russia in its area. It is situated in south of Asia. In spite of a part of Asia, it is separated from it. It is separated by Himalayas in North India. India has vast oceans in South, East and West. Due to its vastness it is also called sub continent. That vast country has given different names in different times. In Vedic period, it was called ‘Arya-V-arat’. In Bir period and ancient period, it as called Bharatvarash’. Perhaps due to fame of king Bharat, it was called ‘Bharatvarsh. Greek called it Indus on the name of river Sindh. Iranians called it Hindu. Chinese travelers called it Tienchu and Yintu. Ipsing called ‘Arya Desh’ and Brahmrashtra. Bible has called it Hoddu. In medieval period, it was called ‘Hindustan’ and Hind. European called it India. After Independence, it is return as Bharat Ganrajya or Indian Republic in Indian Constitution.

EVOLUTION OF THE MARKETING CONCEPT

The Role of marketing in the banking industry continues to change. For many years the primary focus of bank marketing was public relations. Then the focus shifted to advertising and sales promotion. That was followed by focus on the development of a sales culture.

Although all the elements of the marketing concept – customer satisfaction, profit integrated framework, and social responsibility – will remain important, customer satisfaction must receive the greatest emphasis in the years ahead.

The chief concerns of most bank executives still focus on legal and regulatory issues, according to most surveys. Community banks are particularly concerned with eliminating barriers that give unfair advantages to financial services competitors, such as credit unions. However, another concern pertains to technology: keeping nonblank competitors out of the payment system.

Bankers Identify Near-Team and Long Term Concerns

1991	2015
Maintaining profitability Credit Portfolio Management Service Quality Regional Economy Cost Management / Expense reduction Declining Earnings/ more failures Market / customer focus Capital adequacy Stock market value Industry Overcapacity	Service quality Maintaining profitability Market / customer focus Operations/systems/technology Credit portfolio management Productivity improvement Investment to stay competitive Stock market value Asset/liability management Electronic Banking