Description
Describing about changing trends in marketing of financial services. It explains 7Ps of marketing of Bank of Baroda and 7 P’s of Marketing of ICICI Prudential.
MARKETING OF FINANCIAL SERVICES
Click to edit Master subtitle style
1/18/13
?Financial Services is defined as the products
Definition Of Financial Services
and services offered by financial institutions which include banks, credit card companies, consumer finance company, stock brokerage, investment funds and some government sponsored enterprises. ?Banks
?Account management, checkbooks, personal
loans, commercial loans, credit cards, debit cards, ATMs and fund transfer.
?Investment Management ?Asset management, Hedge fund Management..
1/18/13
CHANGING TRENDS
1991 ?maintaining profitability ?regional economy ?industrial credit ?cost management /expense reduction 2010 ?Service quality ?Global economy ?retail lending 1/18/13 ?investment to stay competitive
MARKET RESEARCH FINDINGS
?Simplicity and certainty will drive the product
selections of consumers ?Customers will look beyond price to find value ?Service must be innovative and flawless ?Trust and heritage will play an increasing role in brand choice ?Consumer Sovereignty: Consumers will drop vanilla products in their search for individualism ?‘Too big to fail’ will drive consumers to the personal and the local banks 1/18/13
7 P’s of Marketing of Bank Of Baroda
Click to edit Master subtitle style
1/18/13
7 P’s
Bank of Baroda – Product Mix
Product s & Service : Bank of Baroda provides various banking products and services to its customers. They are as follows: ?Retail Banking ?Rural/Agri Banking ?Wholesale Banking ?SME Banking ?Wealth Management 1/18/13 ?DE-MAT Account
Bank of Baroda - Pricing
?The pricing policy of a bank is considered
important for raising the number of customers’ vis-à-vis the accretion of deposits. 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. It is essential that both the buyers as well as the sellers have feeling of winning. ?The main pricing policy is concerned with the interest rate charged. This interest rate is 1/18/13
?The Bank of Baroda has good location across
Bank of Baroda Placement
the country. Bank of Baroda has an extensive network of 3082 branches spanning the length and breadth of the country. ?All this branches are at very convenient place for the customers. Bank considers various good elements while selecting a place for banking transactions.
1/18/13
Bank of Baroda Promotion ?Public Relations
?To build its brand equity, the bank has
organized hosts of seminars nationally and internationally- latest being Basel II.
?Television ?Newspapers and Magazines ?Emphasize on the bright orange corporate colours of the bank and the ‘rising sun’. ? The key traits that the bank wants to highlight such as trust, competence and ease of use The targeted consumer segment is the middle-class Indian doing every-day chores, who now has numerous financial needs, not just plain and 1/18/13 traditional banking.
Bank of Baroda - People
?HR Steering Committee - Board Level HR
Committee for piloting HR initiatives and reforms. The Committee comprises of Directors and leading professionals as Experts from outside the Bank ?KHOJ - Through scientific process of identification and selection, employees with high potential to be deployed in key business areas. Such employees to be provided with suitable grooming and career growth opportunities 1/18/13 ?Employee counseling center
Bank of Baroda - Process
?Standardization: BoB bank has got
standardized procedures ?Customization: There are specialty counters at each branch to deal with customers of a particular scheme. ?Simplicity: In BoB various functions are segregated. Separate counters exist with clear indication. Besides instruction boards in national boards in national and regional language help the customers further. ?Customer involvement: ATM does not involve 1/18/13 bank employees. Besides, during usual any
Bank of Baroda – Physical Evidence
Physical Evidence : ?Physical evidence refers to all those factors that help make the process much easier and smoother ?Internet/the web pages •Paperwork •Brochures •Furnishings •Business cards •The building itself (such as prestigious offices or scenic headquarters) 1/18/13 ?The physical evidences also include signage,
7 P’s of Marketing of ICICI Prudential
Click to edit Master subtitle style
1/18/13
ICICI Prudential Life Insurance
?Joint venture between ICICI Bank and
Prudential plc ?Began its operations in December 2000 after receiving approval from IRDA ?1,960 branches (inclusive of 1,096 microoffices), over 237,000 advisors; and6 bancassurance partners ?For the past nine years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the 1/18/13 Indian customer at every step in life
PRODUCT MIX
Protection Plans: ?Save ‘n’ Protect ?Cash-back ?Home Assure ?Pure Protect ?Life Guard Premium Guarantee Plans: ?Invest Shield Cash Back ?Invest Shield Life New
1/18/13
PRODUCT MIX
Education Insurance Plans: ?Smart Kid Regular Premium ?Smart Kid New Unit-linked Regular & Single Premium Wealth Creation Plans: ?Premier Life Gold ?Life Stage RP ?Wealth Advantage
1/18/13
PRODUCT MIX
Group Plans: ?Group Term Insurance Plan ?Group Gratuity Plan ?Group Super Annuation Plan Health Insurance Plans: ?Diabetes Plans ?Cancer Plans ?Comprehensive Health coverage ?Critical Illness Plan
1/18/13
PRODUCT MIX
Retirement Plans: ?Forever Life ?Immediate Annuity ?Life Stage Pension ?Premier Life Pension Rural Plans : ?Suraksha & Suraksha Kavach
1/18/13
PRICE
?Example: ICICI Prudential- Pure Protect ?Below is the table that shows premium for
various age-term combinations for a Sum Assured of Rs.50 lakhs.
TERM (Number of Years) 30 35 40 Rs.7608 Rs.9889 Rs.14394 Rs.8378 Rs.9444 Rs.11390 Rs.17064 Rs.13,327 Rs.20067
10 AGE
1/18/13
15 20
PLACE
?Life Insurance companies have offices at main
locations in cities and towns. But most of the customers buy insurance policies with the help of agents.Therefore place is important but other than place what is more important is “Bancassurance” ?Bancassurance is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products 1/18/13 ?Bank staff and tellers, rather than an
PROMOTION
?Over the last few months, ICICI Prudential has
been advertising in outdoor, TV and press ?The company launched a corporate television campaign – Saat Phere ?The company has also undertaken press and internet campaigns to inform customers about benefits of some of its products, particularly retirement solutions, through the Chintamani campaign ?Also introduced some innovations in the category, such as: having a tax planner by the 1/18/13 name of Chintamani on radio
PEOPLE
?People are the main assets in a service sector.
Therefore, ICICI Prudential has good number of talented people in their organization ?The people strategy of ICICI Prudential is “To build a committed team with a culture of innovation, learning and growth” ?HR is committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value 1/18/13 to the organization
PROCESS
?The client approaches the insurer (ICICI
Prudential) through an agent with a proposal containing his details ?The proposal will go through various stages of approval . Upon final approval, a policy, between the insurer and the client is prepared whereby the insurer covers the client for the sum assured ?The client pays a premium at regular intervals ?The client may come back with some alterations to the policy viz. increase/decrease 1/18/13 in sum assured, increase/decrease of the term
PHYSICAL EVIDENCE
Physical evidence includes facility design, equipment signage, employee dress, tangibles, reports and statements ?Signage personifies the insurance company. A signage depicts the company’s philosophy and policy ?Various tangible items like pen, letter pad, calendars. Such things try to reduce the intangibility characteristics of this industry ?The statements are punch line which briefly depicts the vision and attitude of a insurance 1/18/13 company towards its users/potentials. It also
?Focus on benefits more than on the features. ?Focus on product line strategy rather than on
Implications and Opportunities
a single product. Since the market is heterogeneous there is no single product that can satisfy the need of the diverse segments. ?Design the products with relevant inputs from the target market. ?Explore the likely competitive reaction while designing your strategy. Also have a counter strategy that outlines how you will react to a competitors reaction.
1/18/13
THANK YOU
1/18/13
doc_376726277.pptx
Describing about changing trends in marketing of financial services. It explains 7Ps of marketing of Bank of Baroda and 7 P’s of Marketing of ICICI Prudential.
MARKETING OF FINANCIAL SERVICES
Click to edit Master subtitle style
1/18/13
?Financial Services is defined as the products
Definition Of Financial Services
and services offered by financial institutions which include banks, credit card companies, consumer finance company, stock brokerage, investment funds and some government sponsored enterprises. ?Banks
?Account management, checkbooks, personal
loans, commercial loans, credit cards, debit cards, ATMs and fund transfer.
?Investment Management ?Asset management, Hedge fund Management..
1/18/13
CHANGING TRENDS
1991 ?maintaining profitability ?regional economy ?industrial credit ?cost management /expense reduction 2010 ?Service quality ?Global economy ?retail lending 1/18/13 ?investment to stay competitive
MARKET RESEARCH FINDINGS
?Simplicity and certainty will drive the product
selections of consumers ?Customers will look beyond price to find value ?Service must be innovative and flawless ?Trust and heritage will play an increasing role in brand choice ?Consumer Sovereignty: Consumers will drop vanilla products in their search for individualism ?‘Too big to fail’ will drive consumers to the personal and the local banks 1/18/13
7 P’s of Marketing of Bank Of Baroda
Click to edit Master subtitle style
1/18/13
7 P’s
Bank of Baroda – Product Mix
Product s & Service : Bank of Baroda provides various banking products and services to its customers. They are as follows: ?Retail Banking ?Rural/Agri Banking ?Wholesale Banking ?SME Banking ?Wealth Management 1/18/13 ?DE-MAT Account
Bank of Baroda - Pricing
?The pricing policy of a bank is considered
important for raising the number of customers’ vis-à-vis the accretion of deposits. 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. It is essential that both the buyers as well as the sellers have feeling of winning. ?The main pricing policy is concerned with the interest rate charged. This interest rate is 1/18/13
?The Bank of Baroda has good location across
Bank of Baroda Placement
the country. Bank of Baroda has an extensive network of 3082 branches spanning the length and breadth of the country. ?All this branches are at very convenient place for the customers. Bank considers various good elements while selecting a place for banking transactions.
1/18/13
Bank of Baroda Promotion ?Public Relations
?To build its brand equity, the bank has
organized hosts of seminars nationally and internationally- latest being Basel II.
?Television ?Newspapers and Magazines ?Emphasize on the bright orange corporate colours of the bank and the ‘rising sun’. ? The key traits that the bank wants to highlight such as trust, competence and ease of use The targeted consumer segment is the middle-class Indian doing every-day chores, who now has numerous financial needs, not just plain and 1/18/13 traditional banking.
Bank of Baroda - People
?HR Steering Committee - Board Level HR
Committee for piloting HR initiatives and reforms. The Committee comprises of Directors and leading professionals as Experts from outside the Bank ?KHOJ - Through scientific process of identification and selection, employees with high potential to be deployed in key business areas. Such employees to be provided with suitable grooming and career growth opportunities 1/18/13 ?Employee counseling center
Bank of Baroda - Process
?Standardization: BoB bank has got
standardized procedures ?Customization: There are specialty counters at each branch to deal with customers of a particular scheme. ?Simplicity: In BoB various functions are segregated. Separate counters exist with clear indication. Besides instruction boards in national boards in national and regional language help the customers further. ?Customer involvement: ATM does not involve 1/18/13 bank employees. Besides, during usual any
Bank of Baroda – Physical Evidence
Physical Evidence : ?Physical evidence refers to all those factors that help make the process much easier and smoother ?Internet/the web pages •Paperwork •Brochures •Furnishings •Business cards •The building itself (such as prestigious offices or scenic headquarters) 1/18/13 ?The physical evidences also include signage,
7 P’s of Marketing of ICICI Prudential
Click to edit Master subtitle style
1/18/13
ICICI Prudential Life Insurance
?Joint venture between ICICI Bank and
Prudential plc ?Began its operations in December 2000 after receiving approval from IRDA ?1,960 branches (inclusive of 1,096 microoffices), over 237,000 advisors; and6 bancassurance partners ?For the past nine years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the 1/18/13 Indian customer at every step in life
PRODUCT MIX
Protection Plans: ?Save ‘n’ Protect ?Cash-back ?Home Assure ?Pure Protect ?Life Guard Premium Guarantee Plans: ?Invest Shield Cash Back ?Invest Shield Life New
1/18/13
PRODUCT MIX
Education Insurance Plans: ?Smart Kid Regular Premium ?Smart Kid New Unit-linked Regular & Single Premium Wealth Creation Plans: ?Premier Life Gold ?Life Stage RP ?Wealth Advantage
1/18/13
PRODUCT MIX
Group Plans: ?Group Term Insurance Plan ?Group Gratuity Plan ?Group Super Annuation Plan Health Insurance Plans: ?Diabetes Plans ?Cancer Plans ?Comprehensive Health coverage ?Critical Illness Plan
1/18/13
PRODUCT MIX
Retirement Plans: ?Forever Life ?Immediate Annuity ?Life Stage Pension ?Premier Life Pension Rural Plans : ?Suraksha & Suraksha Kavach
1/18/13
PRICE
?Example: ICICI Prudential- Pure Protect ?Below is the table that shows premium for
various age-term combinations for a Sum Assured of Rs.50 lakhs.
TERM (Number of Years) 30 35 40 Rs.7608 Rs.9889 Rs.14394 Rs.8378 Rs.9444 Rs.11390 Rs.17064 Rs.13,327 Rs.20067
10 AGE
1/18/13
15 20
PLACE
?Life Insurance companies have offices at main
locations in cities and towns. But most of the customers buy insurance policies with the help of agents.Therefore place is important but other than place what is more important is “Bancassurance” ?Bancassurance is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products 1/18/13 ?Bank staff and tellers, rather than an
PROMOTION
?Over the last few months, ICICI Prudential has
been advertising in outdoor, TV and press ?The company launched a corporate television campaign – Saat Phere ?The company has also undertaken press and internet campaigns to inform customers about benefits of some of its products, particularly retirement solutions, through the Chintamani campaign ?Also introduced some innovations in the category, such as: having a tax planner by the 1/18/13 name of Chintamani on radio
PEOPLE
?People are the main assets in a service sector.
Therefore, ICICI Prudential has good number of talented people in their organization ?The people strategy of ICICI Prudential is “To build a committed team with a culture of innovation, learning and growth” ?HR is committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value 1/18/13 to the organization
PROCESS
?The client approaches the insurer (ICICI
Prudential) through an agent with a proposal containing his details ?The proposal will go through various stages of approval . Upon final approval, a policy, between the insurer and the client is prepared whereby the insurer covers the client for the sum assured ?The client pays a premium at regular intervals ?The client may come back with some alterations to the policy viz. increase/decrease 1/18/13 in sum assured, increase/decrease of the term
PHYSICAL EVIDENCE
Physical evidence includes facility design, equipment signage, employee dress, tangibles, reports and statements ?Signage personifies the insurance company. A signage depicts the company’s philosophy and policy ?Various tangible items like pen, letter pad, calendars. Such things try to reduce the intangibility characteristics of this industry ?The statements are punch line which briefly depicts the vision and attitude of a insurance 1/18/13 company towards its users/potentials. It also
?Focus on benefits more than on the features. ?Focus on product line strategy rather than on
Implications and Opportunities
a single product. Since the market is heterogeneous there is no single product that can satisfy the need of the diverse segments. ?Design the products with relevant inputs from the target market. ?Explore the likely competitive reaction while designing your strategy. Also have a counter strategy that outlines how you will react to a competitors reaction.
1/18/13
THANK YOU
1/18/13
doc_376726277.pptx