Karnataka Bank Staff Training College,
December 10, 2008
B.V.Raghunandan, SVS College, Bantwal
Consumer Psychology
? Individualistic
? Need Based
? Reacting to the Environment
? Shaping the Needs to the Product offered in case of no
choice
? Both Rational and Irrational
? Dominant Social Psychology
Marketing Concepts: A
Business Attitude
? Production Concept
? Product Concept
? Selling Concept
? Marketing Concept
? Societal Concept
Marketing Vs Banking
Marketing Banking
? Product Research
? Target Consumers
? Market Study
? Flexible Operation
? Free Operating Atmosphere
? Salesmanship & Promotion
? Consumer Sovereignty
? Standardised Product
? Mass Consumers
? No Market Study
? Professionalism
? Rigid Operation
? Regulated Atmosphere
? Social Banking
? RBI Sovereignty
Consumer Psychology in
Traditional Banking
? No Choice
? Standardised
Service
? Robotic Response
? Parasite
? Endless Patience
? Resigned for
Production Concept
? Choice Based on
Caste or
Regionalism
? Convenience
(Location)
? Single Branch
Monopoly
? Generally Rational
decisions
Change Agents
? Liberalisation
? Narasimham Committee
? BIS at Basel
? IT and Networking
? New Generation Banks
? Capital Market Reforms
? FII & Foreign Insurance Companies
? Business Groups setting up Finance Co
? Bank Subsidiaries Offering financial
services
New Age Banking
? IT Absorption &
Networking
? Cross Selling of
Products
? Agency Sale of
Products
? Bancassurance
? Listed Entities
? Capital Adequacy
? Interest Rate Differential
? Financial Services
? Bigger Role of
Insurance Companies
? Risk Management
? Consolidation
? Advertisement
? Aggressive Marketing
? Wasteful Marketing
Practices
? More Consumer Care
? Flexible Timing
? Lesser Procedure
? ATM as Delivery
Channel & as a Branch
Expansion Strategy
Consumer Psychology in New
Age Banking
? Spill over Effect of Traditional Banking
? Varied Needs of Customers
? Strong Segmentation of Markets
? Urban -Rural Divide
? Fusion of Marketing & Banking
? More Emotional
? Increased Distrust
Preferences of Urban
Customers
? Category I : Personal even if Inefficient
? Category II : Impersonal & Efficient
? Category III : Personal & Efficient
Preferences of Rural
Customers
? Relationship Marketing
? Early Banking
? Personal Service
? Higher Level of Patience
? Needs Guidance
? Basic Banking
Banking Products
? Own Products: Risk Free- Show the
superiority for Retirement Benefits and
Free of Entry & Exit Load
? Mutual Funds: Growth with Risk-
Emphasise that it is not your product,
suggest SIP for a Minimum of three
years
? Insurance Products: Risk Coverage with
limited return
Conflicts
? Profit Vs Customers
? Your Products Vs Third Party Products
? Dividing Marketing & Banking
? Rational Choice & Emotional Choice
? Consumer Sovereignty Vs Counselling
? Customer Service Vs Compliance with
Regulation
Agenda for Action
? Investors’ Meet
? Creation of Database of Consumers
? Matching the Products to the
Requirement of Customers
? Creation of a Library at Branch Level
? Attending the Social Function
particularly in Rural Areas
? Joining Social Organisations and Social
Causes
THANK YOU
doc_694607670.pptx
December 10, 2008
B.V.Raghunandan, SVS College, Bantwal
Consumer Psychology
? Individualistic
? Need Based
? Reacting to the Environment
? Shaping the Needs to the Product offered in case of no
choice
? Both Rational and Irrational
? Dominant Social Psychology
Marketing Concepts: A
Business Attitude
? Production Concept
? Product Concept
? Selling Concept
? Marketing Concept
? Societal Concept
Marketing Vs Banking
Marketing Banking
? Product Research
? Target Consumers
? Market Study
? Flexible Operation
? Free Operating Atmosphere
? Salesmanship & Promotion
? Consumer Sovereignty
? Standardised Product
? Mass Consumers
? No Market Study
? Professionalism
? Rigid Operation
? Regulated Atmosphere
? Social Banking
? RBI Sovereignty
Consumer Psychology in
Traditional Banking
? No Choice
? Standardised
Service
? Robotic Response
? Parasite
? Endless Patience
? Resigned for
Production Concept
? Choice Based on
Caste or
Regionalism
? Convenience
(Location)
? Single Branch
Monopoly
? Generally Rational
decisions
Change Agents
? Liberalisation
? Narasimham Committee
? BIS at Basel
? IT and Networking
? New Generation Banks
? Capital Market Reforms
? FII & Foreign Insurance Companies
? Business Groups setting up Finance Co
? Bank Subsidiaries Offering financial
services
New Age Banking
? IT Absorption &
Networking
? Cross Selling of
Products
? Agency Sale of
Products
? Bancassurance
? Listed Entities
? Capital Adequacy
? Interest Rate Differential
? Financial Services
? Bigger Role of
Insurance Companies
? Risk Management
? Consolidation
? Advertisement
? Aggressive Marketing
? Wasteful Marketing
Practices
? More Consumer Care
? Flexible Timing
? Lesser Procedure
? ATM as Delivery
Channel & as a Branch
Expansion Strategy
Consumer Psychology in New
Age Banking
? Spill over Effect of Traditional Banking
? Varied Needs of Customers
? Strong Segmentation of Markets
? Urban -Rural Divide
? Fusion of Marketing & Banking
? More Emotional
? Increased Distrust
Preferences of Urban
Customers
? Category I : Personal even if Inefficient
? Category II : Impersonal & Efficient
? Category III : Personal & Efficient
Preferences of Rural
Customers
? Relationship Marketing
? Early Banking
? Personal Service
? Higher Level of Patience
? Needs Guidance
? Basic Banking
Banking Products
? Own Products: Risk Free- Show the
superiority for Retirement Benefits and
Free of Entry & Exit Load
? Mutual Funds: Growth with Risk-
Emphasise that it is not your product,
suggest SIP for a Minimum of three
years
? Insurance Products: Risk Coverage with
limited return
Conflicts
? Profit Vs Customers
? Your Products Vs Third Party Products
? Dividing Marketing & Banking
? Rational Choice & Emotional Choice
? Consumer Sovereignty Vs Counselling
? Customer Service Vs Compliance with
Regulation
Agenda for Action
? Investors’ Meet
? Creation of Database of Consumers
? Matching the Products to the
Requirement of Customers
? Creation of a Library at Branch Level
? Attending the Social Function
particularly in Rural Areas
? Joining Social Organisations and Social
Causes
THANK YOU
doc_694607670.pptx