Marketing Strategies of Commercial Banks — A Study on SBI and ING Vysya Bank in Kadapa Corporation

Abstract

Marketing is a total system of business activities designed to plan, price, promote and distribute wanted and satisfying products to target markets to achieve organisational objectives. Marketing strategies of banking sector revealed that banks can base their marketing strategies on various parameters which are broadly in terms of 7Ps of marketing viz., Product, Place, Price, Promotion, People, Physical Evidence and Processes. Marketing strategy is the firm's product-market choice which is guided by the environmental necessities and firm's objectives and capabilities. The present paper focuses on the ‘Marketing Strategies’ of SBI and INGV Bank for their financial services in Kadapa Corporation, A.P. India. Product related strategies include ‘Interest based, Fee based and Technology based activities’. ‘Interest based activities strategy’ includes mobilisation of deposits and advancing loans to the customers. Location strategy, parking place strategy and sitting facility strategy are ingredients of ‘Place related strategies’. Promotion related strategies comprise of ‘Marketing division strategy, Advertising media strategy, Social activities strategy and Branding strategy’. Price related strategies comprise ‘Strategic pricing strategy, Pricing approach strategy and Price privileges strategy’. ‘People related strategies’ have a huge workforce manning the extensive network in the country. This massive manpower results in structural and managerial impediments and refutes the popular belief of the public sector banks is that the ‘larger the number of employees better serve the customers’. People related strategies are pertaining to well versed with computers and training programmes to employees. The physical evidence refers to physical environment, facilities, the branch decors, excellent furnishings, spacious layouts and atmosphere. ‘Processes’ refer to the actual procedures, mechanisms, and flow of activities by which the service is rendered. ‘Processes related strategies’ are classified into ‘Market processes, Customer processes and Operational processes’.