STATE BANK OF INDIA

The Origin of the State Bank of India goes back to the first decade of the 19
th
century with establishment of the Bank of
Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint- stock bank of British India sponsored by The
Government of Bengal. The Bank of Bombay (15 April 1840) and the bank of Madras (1 July 1843) followed the Bank
of Bengal. These three banks remained at the apex of modern Banking in India till their Amalgamation as the Imperial Bank
of India on 27 January 1921.
Headquarters: Mumbai
Founded on: July 1
st
, 1956
Logo: State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common
man being the centre of the banks business
Tag Line: PURE BANKING, NOTHING ELSE, WITH YOU ALL THE WAY, A BANK OF THE COMMON MAN,
THE BANKER TO EVERY INDIAN, THE NATION BANKS ON US
Employees: 295,696 [2012]
Associate Banks:
1. State Bank of Bikaner and Jaipur Jaipur (Head Office)
2. State Bank of Hyderabad Hyderabad (Head Office)
3. State Bank of Mysore Bangalore (Head Office)
4. State Bank of Patiala Patiala (Head office)
5. State Bank of Travancore Poojappura, Thiruvananthapuram (Head Office)
Important Points about SBI
SBI is one of the big four banks of India, along with ICICI bank, Punjab National Bank and Bank of Baroda
SBI had 14,816 branches in India as on 31 March 2013
SBI is the first bank to open branch in China
15000
th
branch of the State Bank of India (SBI) at Sooranam (Tamil Nadu)
SBI has 21, 500 branches (including Assosiate Banks )
SBI has 99, 345 offices in India
SBI has 27000+ ATM and SBI Group (including Assosiate Banks ) has 32752 ATMs.
On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the bank
SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Banks
27,032nd ATM on 27 July 2012.


List of Awards (2013-14)
1. The Banker (1) in the year 2009
2. IDRBT (3)
3. D & B Polaris (1)
4. SKOCH (3)
5. SKOCH CORPORATE EXCELLENCE
6. PC QUEST
7. EDGE AWARD (2)
8. Asias best CSR Practices Awards 2013-Singapore
9. Asian BFSI Awards 2013- Dubai
10. Indias Most Ethical Companies awards 2013
11. Asian Green Future Leadership Awards 2013
12. Best Public Sector Bank Award 2013
13. Won national award in the year 2012 for Prime Ministers Employment Generation Programme (PMEGP) scheme
14. Technology of the year by the IBA banking technology awards
15. Best online banking award in 2010 by IBA
16. Best rural banking initiative and best IT architecture
17. THE BEST BANK in cash management services in Asia
18. Pegasus Corporate Social Responsibility Award 2007

FIRST IN INDIA

First bank established in India: Bank of Hindustan in 1770
Second bank: General Bank of India, 1786
Oldest bank in India originated in the Bank of Calcutta in June 1806 which was still in existence State Bank of India
State Bank of India merged with three banks namely Bank of Bengal, Bank of Bombay and Bank of Madras in 1921 to form
the Imperial bank of India which was converted as State Bank of India
First Indian bank got ISO: Canara Bank
First India bank started solely with Indian capital investment is PNB (Punjab National Bank)
Founder of Punjab National Bank is Lala Lajpat Rai
Reserve bank of India (RBI) was instituted in 1935
First governor of RBI: Mr.Osborne Smith
First Indian Governor of RBI: Mr. C D Deshmukh
First bank to introduce savings account in India: Presidency Bank in 1833
First bank to introduce cheque system in India: Bengal Bank in 1833
First bank to introduce internet banking: ICICI bank
First bank to introduce mutual fund: State Bank of India
First bank to introduce credit card in India: Central Bank of India
Which cards are known as plastic money Credit Cards.
Open market operations are carried out by RBI
Capital market regulator is SEBI
Largest Commercial bank in India State Bank of India
The International Bank for Reconstruction and Development (IBRD) is known as World Bank
Indias First Financial Archive has been set up at Kolkata
CRR, SLR, Repo Rate, Reverse Repo rate are decide by RBI
Savings banks interest rates, fixed deposit interest rates, Loan Rates etc. are decided by individual banks
The bank which has launched Mobile Bank Accounts in association with Vodafones m paisa HDFC Bank
Minimum money transfer limit through RTGS: 2 Lakhs
Maximum money transfer limit through RTGS: No Limit
Minimum & Maximum money transfer limit through NEFT: No Limit
NABARD was established in July, 1982
Largest Public sector bank in India SBI
Largest Private sector bank in India ICICI Bank
Largest Foreign bank in India Standard Chartered Bank
First Indian bank to open branch outside India i.e. London in 1946: Bank of India
First RRB named Prathama Grameen Bank was started by: Syndicate Bank
First Bank to introduce ATM in India: HSBC in1987, Mumbai
Bank of Baroda has the maximum number of overseas branches
SBI holds the second position with maximum number of overseas branches
Premium credit cards exclusively for women launched recently by HDFC bank
Private Sector Bank that recently launched a product of Personal loan called SWIFT HDFC
The bank which approved loan of $500mn to help India improve Rail services Asian Development Bank
FDI limit for new banks 49%
FDI limit for private banks: 74%

Some Basic Economic Terms
Interest Rate Swaps: An interest rate swap is the transfer of contractually agreed between two counterparties of their
respective interest rate obligation. Interest rate swaps are commonly used as a means of converting fixed rate to floating rate
debt and vice versa.
Operating Ratio: A ratio that shows the efficiency of a companys management by comparing operating
expense to net sales. Calculated as
Operation ratio = Operating expense/net sales
Wholesale Price Index (WPI): WPI is taken into consideration while calculating the inflation. A change has recently been
made in the WPI. Its present base year will be taken as 2004-05 earlier it was 1993-34. Base year mean (2004-05 = 100).
Total articles taken into consideration will be 676 earlier these were 435.676 include 102 Primary Articles, 19 fuel & power,
and 555 of Manufacturing Products. Earlier WPI was calculated on Weekly basis but now it is calculated on Monthly Basis.
First time inflation was calculated in August 2010 (on new system).
Consumer Price Index (CPI) : Most advanced nations base their policies on retail price inflation but India uses wholesale
price inflation, CPI is largely a segmental and is superior to the WPI, CPI capture consumption price both at urban and rural
centers, as in WPI 676 items are covered and base year is taken as 2004-05 and for macroeconomic policies. Whereas in
CPI 320 items are taken from (CPI-IW) CPI industrial workers and 260 items are taken from both CPR rural laborers and CPI
agricultural laborers and the base year for calculation is taken as 2010.
Coupon Rate: Specified interest rate on a fixed maturity security fixed at the time of issue. The coupon rate of a bond is the
amount of interest paid per year as a percentage of the face value or principal.
NRO (Non Resident Ordinary a/c) : In this account , a person cannot repatriate income without RBI approval but can remit
Interest thereof.
NRNR (Non Resident Non Repatriable A/c ) : Under this account Principal amount in not permissible to repartriate but
interest can be.
Banking Terms
Repo Rate: Repo rate means a purchase and sale of agreement. It is a contract to buy securities and then sell them back at an
agreed future date and price. It is thus revenue for short term investment of surplus funds. From RBI point of view it is called
a short term lending and from banks point of view it is called short term borrowing.
Reverse Repo rate : Reverse Repo Rate is an instrument of borrowing funds for a short period and involves selling a security
and simultaneously agreeing to repurchase it at a stated future date for slightly higher price. From RBI point of view it is
called a short term borrowing and from banks point of view it is called a short term lending.
Group Company : As per RBI for the purpose of FDI, two or more enterprise which , directly or indirectly , are in position
to exercise 26% or more of voting rights in other enterprise or appoint more than 50% of the members of the board of directors
in the other enterprises.
Branch Vs Subsidiary: A subsidiary is a separate legal entity from the parent company, although owned by parent company,
has a same legal identity as its parent company , from liability , on the other hand branch is not a separate legal entity of the
parent company and liability wise there is no limit to the parents companys liability , RBI has permitted to Foreign Banks to
change from Branch Mode to the Wholly Owned Subsidiaries.
NFS (National Financial Switch): It facilitates interconnectivity between banks switches and interbank payment Gateway
for authentication & routing the payment details of various E-commerce & E-Govt. activities (Retail Banking). Now NFS has
been overtaken by NPCI (National Payment Corporation of India).
SLR (Statutory Liquidity Ratio): This is a minimum Reserve which every bank has to maintain with itself in the most liquid
form to meet any demand of the depositors. Normally Government securities are purchased to maintain SLR.
Prime Lending Rate (PLR): The term originally indicates the rate of interest at which a bank lends to favored customers,
i.e. those with high credibility, though this is no longer always the case. Some variable interest rates may be expressed as a
percentage above or below prime rate.
Sub Prime Rate: In India when money is lent below the PLR is known as Sub Prime Rate whereas in USA when money is
lent at rate above the PLR is known as Sub Prime rate.
Base Rate: As per recommendation of Mr. Deepak Mohanty of RBI to bring a complete transparency in Banks lending
system, in Indian Banking system the loan were sanctioned to the large corporate houses even below the PLR and some time
it were fixed very low without any justification. A Base rate recommends that no bank will lend any money below the base
rate. With this there shall be no extra benefits to the large corporate houses. Base rate will be beneficial for the regulator RBI.
Now all Banks will either lend at Base rate or will park money with RBI, under LAF system. Base rate has been implemented
from 1
st
july, 2010.
GDRs (Global Depository Receipts): It is a dollor denominated instrument, an easy way of raising funds from foreign
countries. It is a mechanism that allows foreign investor to invest in Indian Companies. Represents a certain number of equity
shares on Indian companies. GDRs are issued by depository usually American Banks & Indian shares are held by custodian
in India (like ICICI). Traded in stock exchanges in Europe or in US or both.
IPO (Initial Public Offer): 1
st
sale of stock by a company to the public .IPOs offer issued by smaller younger co. seeking
the capital to extend. It can also be done by large company.
FPO (Follow on Public Offer ) : A public company already listed on an exchange, a supplementary shares made by a
company that is already publicly listed & has gone thru the IPO process, it is also called as secondary public offering
subsequent to the companys IPO.
Zero Liability Protection: It is a bank guarantee. If your card is lost or stolen you may not be responsible for unauthorized
purchases made with your card if you report the theft promptly. The Zero liability protection facility is free & automatically
available on all bank consumer Credit Cards.
Vostro Account: When a foreign Bank is opened in the India with Indian Currency is known as Vostro account e.g. Standard
Chartered Bank in India.
SWAPS: It is a transaction where the bank purchases or sells the foreign currency simultaneously, for different maturities,
say purchases of spot and sale of forward or vice versa. Swap contracts obligate 2 parties to swap or exchange certain specified
intervals. Swaps are not the instruments for raising funds rather they allow better management of existing funds.

Important Details about Nationalized Banks in India
Sl.NO Name of the Bank Chairman Head Office
Year of
Commencement
1 Allahabad Bank
Shubhalakshmi
Panse
Kolkata 1865
2 Andhra Bank B.A. Prabhakara Hyderabad
20
th
November,
1923
3 Bank of Baroda S.S. Mundra
Baroda
(Vadodara)
20
th
July, 1908
4 Bank of India V R Iyer Mumbai
7
th
September,
1906
5 Bank of Maharashtra Narendra Singh Pune 1935
6 Canara Bank Rajiv Kishore Dubey Bangalore 1906
7 Central Bank of India Shri. Rajeev Rishi Mumbai
21 December,
1911
8 Corporation Bank Shri S.R. Bansal Mangalore 1906
9 Indian Bank T.M. Bhasin Chennai 1907
10 Indian Overseas Bank Shri M. Narendra Chennai
February 10
th
,
1937
11
Oriental Bank of
Commerce
Shri S.L. Bansal New Delhi
February 19
th
,
1943
12 Punjab National Bank Shri K.R Kamath New Delhi 1895
13 Punjab & Sind Bank SH. Devinder Singh New Delhi 1908
14 Syndicate Bank
Shri Sudhir Kumar
Jain
Mani pal 1925
15 UCO Bank Shri Arun Kaul Mumbai 6
th
January, 1943
16 Union Bank of India Shri D. Sarkar Kolkata
11
th
November,
1919
17 United Bank of India
Ms. Archana
Bhargava
Kolkata 1950
18 Vijaya Bank
Shri. H.S. Upendra
Kamath
Bangalore 1931
19 IDBI bank Mr. M.S. Raghavan Mumbai July, 1964
20 Dena Bank
Shri. Ashwani
Kumar
Mumbai 1938
21 ECGC Shri N Shankar Mumbai 30
th
July, 1957
Important Details about State Bank of India and their Subsidiaries
State Bank of India has 5 associate banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala and State Bank of Travancore. State Bank of Saurashtra and State Bank
of Indore are merged into SBI. On October 7
th
, 2013 Arundhati Bhatacharya is appointed as the first lady
chairperson for SBI.

Sl.NO Name of the Bank Chairman Head Office
Year of
Commencement
1 State Bank of India
Arundhati
Bhattacharya
Mumbai 1
st
July, 1955
2
State Bank of
Hyderabad
Pratip Chaudhuri Hyderabad 8
th
August, 1941
3 State Bank of Mysore Pratip Chaudhuri Bangalore 2
nd
October, 1913
4 State Bank of Patiala Pratip Chaudhuri Patiala 1
st
April, 1960
5
State Bank of Bikaner
& Jaipur
Pratip Chaudhuri Jaipur 1963
6
State Bank of
Travancore
Pratip Chaudhuri Thiruvananthapuram
12
th
September,
1945
7
State Bank of
Saurashtra
Merged into SBI on 13
th
August, 2013
8 State Bank of Indore Merged into SBI on 2010
NABARD Important Banking Awareness
NABARD is an apex development bank in India established on 12 July, 1982 with an aim of providing services to rural India
by increasing the credit flow for evaluation of agriculture & rural non form sectors.
It was set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. Sivaraman.
NABARD is a development bank for providing and regulating credit and other facilities for the promotion and development
of cottages, small scale industries, development of agriculture, village industries, handicrafts and other rural crafts
With a view of promoting rural development and securing rural areas, NABARD is entrusted with
1. Providing refinance to lending institutions in rural areas
2. Bringing about or promoting institutional development and
3. Evaluating, monitoring and inspecting the client banks
RBI sold its stake in NABARD to the Government of India, which now holds 99% STAKE. NABARD is active in developing
financial inclusion policy.
Important Points about NABARD
Head Quarters: Mumbai
Established on: 12 July, 1982
Chairman: Dr. Harsh kumar Bhanwala
NABARD completed its 25 years on 12 July, 2007
NABARD is active in developing Financial Inclusion
It is Indias specialized bank developed by Shivaramans committee to provide credit in rural areas. It replaced the Agricultural
Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve bank of India, and Agricultural Refinance
and Development Corporation (ARDC).
NABARD undertakes the monitoring and evolution of projects will be refinanced by it
It provides training for the institutions working for the rural development.
NABARD keeps a check on client institutions
It regulates the cooperative banks and RRBs
It takes measures for improving credit delivery system, monitoring, schemes credit institutions, and training of personnel
Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural
development
BANKING OMBUDSMAN
Banking Ombudsman is a quasi judicial authority functioning under Banking Ombudsman Scheme 2006.It provides
independent, expeditious and inexpensive forum to aggrieved/Un-satisfied Bank customers. RBI introduced this Scheme
under powers granted U/s 35-A of Banking Regulation Act.
Complaints are accepted only if they are made within one year after the complaint has received the reply from
bank.
Types of Complaints :
1. Non-payment or inordinate delay in the payment or collection of cheques, drafts ,bills etc.
2. Non-acceptance, without sufficient cause, of coins tendered and for charging of commission for this service.
3. Non-acceptance without sufficient cause of small denomination notes tendered for any purpose and for charging of
commission for the service.
4. Failure to issue or delay in issue, of drafts pay orders or bankers cheque.
5. Non-adherence to prescribed working hours.
6. No payment or delay in payment of inward remittances.
7. Failure to honor guarantee or letter of credit commitments.
8. Failure to provide or delay in providing a banking facility promised in writing by a bank or its direct selling agents.
9. Delays, non-credit of proceeds to partiesaccounts, non-payment of deposit or non-observance of the Reserve Bank
directives, if any applicable to rate of interest on deposits in any savings, current or other account maintained with a bank.
10. Delays in receipts of export proceeds, handling of export bills, collection of bills etc. for exporters provided the said
complaints pertain to the Banks operations in India.
11. Refusal to open deposit accounts without any valid reason for refusal.
12. Levying of charges without adequate prior notice to the customers.
13. Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/debit card operations or credit
card operations.
14. Non-disbursement or delay in disbursement of pension to the extent the grievance can be attributed to the action on the
part of the Bank concerned but not with regard to its employees.
15. Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government.
16. Customers should have complained to the concerned Bank first and wait for one month. Complaint to Ombudsman can
be writing or in electronic mode.
Award :
Ombudsman can give maximum award upto Rs.10 Lacs.
Appeal :
Any party can file appeal within 30 days on receiving appeal award or the Ombudsman rejecting his complaint to Appellate
authority. If the appeal is the bank, it should be made with approval of CMD or ED or CEO only.


E-banking
E-Banking
E- banking refers to electronic banking. It is like e-business in banking industry. E-banking is also called as virtual
banking or online banking. E-banking is a Result of the growing expectations of bank customers. E-banking involves
information technology based banking. Under this IT system the banking services are delivered by way of a computer-
controlled system. This system involves direct interface with the customers. The customers need not to visit bank premises
Popular services covered under E-banking
1. Automated teller machine
2. Credit card
3. Debit card
4. Smart card
5. Electronic funds Transfer system
6. Cheque truncation system
7. Mobile banking
8. Internet banking
9. Telephone banking
Automated teller machine
ATM is designed to perform the most important function of bank. it is operated plastic card with its special features.
The plastic card has replaced cheque Personal attendance of the customer banking hours restrictions and paper based
verification. These are debit cards. An ATM is an electronic funds Transfer terminal capable of handling cash deposits
Transfer between accounts balance enquires, cash withdrawals and pay bills. It may be online or Offline. Any customer
processing ATM card issued by the shared payment network system can go to any ATM linked to shared payment networks
and perform his transactions
Credit card/ Debit card
The Credit card holder is empowered to spend wherever and whenever he wants with his Credit card within the limits
fixed by his bank. Credit card is a post paid card. Debit card considered as a prepaid card with usage facility limited to the
balance in the linked deposit account of the cardholder. An individual has to open an account with the issuing bank which
gives debit card with a Personal identification number. When he makes purchases he enters his pin on shops pin pad. When
the card is slurped through the electronic terminal it dials the acquiring bank system -either master card or VISA that validates
the pin and finds out can never overspend because the system rejects any transactions which exceeds the balance in his
account. The bank never faces a default because the amount spent is debited immediately from the customers account.
Smart card
Banks are adding chips to their current magnetic stripe cards in order to enhance security and offer new services that
are called smart cards. Smart cards allow
Thousands of times of information storable on magnetic stripe cards. In addition these cards are highly secure, more reliable
and perform multiple functions. They hold a large amount of Personal information ranging from medical and health history
to Personal banking and personal preferences.
Services of E-banking
E-banking provides a multitude of services that are as follows
1. Bill payment service
E-banking facilitates the payment of electricity bills, telephone bills, Credit card, and insurance premium bills. And
the bank does not charge customers for online payments
2. Fund Transfer
You can Transfer any amount from one account to another of the same or any another bank. Customers can send
money anywhere in India.
3. Credit card customers
With internet banking customers cannot only pay their credit card bills online but also get a loan on their cards. In
case of loss of the credit card an online reporting can be done.
4. Investing through internet banking
Now, FD can be opened on line through funds Transfer and investors with interlinked demit account and bank account
can easily trade in the stock market.
5. Recharging prepaid mobile
By just selecting the operator name entering the mobile number and the amount of Recharge the mobile phones can
be back in action within few minutes.
6. RTGS fund Transfer
RTGS is an inter Bank funds Transfer system. Where are Transferred as end when the transactions are tiggered.
7. Shopping
Online Shopping can also be done with a range of all kind of products. Railway and air tickets can be bought through
the internet banking.
8. Online payment of taxes.
A customer can pay various taxes on line including excise and service tax direct tax etc.
Electronic funds Transfer
Electronic funds Transfer provides for electronic payments and collections. EFT is safe secure, efficient and less
expensive than paper check payments and collections . RBI EFT is a scheme introduced by RBI to help banks offering their
customers money Transfer service from account to account to any branch to any other bank branch in places where services
are offered.
Internet banking
Through internet banking you can check your transactions at any time of the day and as many times as you want to.
Where as in a traditional method you get quarterly statements from the bank. If the fund Transfer has to be demand outstation
where the bank does not have a branch the bank would demand outstation charges. Whereas with the help of online banking.
Mobile banking transactions
Now banks have started offering mobile banking and telemarking to their customers. The expansion in the use and
geographical reach of mobile phones has created new opportunities for banks to use this mode for banking transactions and
also provide an opportunity to expand banking facilities to the excluded sections of the society.
Financial Inclusion
Financial Inclusion
Financial inclusion or inclusive Financing is the delivery of financial service at affordable costs to sections of
disadvantaged and low income segments of society. Or we can say that financial inclusion may be defined as the process of
ensuring access to Financial inclusion in timely and adequate Credit when needed by vulnerable groups such as weaker
sections and low income groups at an affordable cost.
Unrestrained access to public goods and services is the sine qua of an open and efficient society. It is argued that as banking
services are in the nature of public good it is essential that availability of banking services and payment services to the nature
of public good it is essential that availability of banking and payment services to the entire population without discrimination
should be the prime objective of public policy. the term Financial inclusion has gained importance since the early 2000s and
is a Result of findings about Financial inclusion and it direct correlation to poverty. Financial inclusion is now a common
objective for many central banks among the Developing nations
Financial inclusion offers people the following things
1. Access to Financial markets
2. Access to Credit markets
3. Financial literacy
Objectives of Financial inclusion
1. Access at a reasonable cost for all house holds and enterprises to the range of Financial services for which they bankable
including savings , short and long term credit , leasing and factoring , mortgages , insurance , pensions, payment , local money
Transfers and international remittances.
2. Sound institutions guided by appropriate internal management systems, industry performance standards and performance
monitoring by the market as well as sound prudential regulation wherever required.
3. Financial and institutional sustainability as a means of providing access to Financial services over time.
4. Multiple provides of Financial services wherever feasible so as to bring cost effective and a wide variety of alternatives to
customers
Financially excluded sections largely comprise of the following activities.
1. Marginal farmers
2. Landless laborers
3. Oral lessees
4. Self Employed and unorganized sector enterprises
5. Urban slum dwellers
6. Migrants
7. Ethnic minorities and society excluded groups
8. Senior citizens
9. Women
The north east eastern and central regions of India contain most of the Financially excluded population.
Benefits of inclusive financial growth
The benefits of inclusive financial growth can be described
1. Growth with equity:- In the path of becoming super power we the Indians need to achieve the growth of our country with
equality. It is provided by inclusive finance.
2. Getting rid of poverty:- To remove poverty from the Indian context everybody will have to be given access to formal
Financial services . Because if they borrow loans for business or Education or any other purpose then that will pave the way
for their Development.
3. Financial transactions made easy:- Inclusive finance will provide banking related Financial transactions in an easy and
speedy way.
4. Safe savings along with Financial services:- People will have safe savings along with other allied services like insurance
cover, entrepreneurial loans payment and settlement facility etc.
5. Increasing National income:- boosting business opportunities will definitely increase GDP that will be reflected in our
National income growth.
6. Becoming global player:- Financial access will attract global market players to our country that would Result in increased
Employment and business oppurtunities.
FUND TRANSFER SYSTEMS
There are two ways for transferring funds
RTGS (Real Time Gross Settlement)
NEFT (National Electronic Fund Transfer)
Real Time Gross Settlement (RTGS)
RTGS is one of the fastest mode of fund transfer in India through banking channel
RTGS is nothing but transferring of money in real time on gross basis from one bank to other without netting. This
RTGS is mainly used for large transactions, Minimum amount to be remitted through this RTGS is 2 Lakhs and
there is no any upper limit
Through RTGS system, money will be remitted for beneficiary account within 2 hours of receiving the fund
transfer message
Main advantage of fund transferring through RTGS is remitting bank will receive the conformation message from
RBI that money have been transferred to beneficiarys account
Timings for Transferring Funds through RTGS:
Normal Days: 09:00 hours to 16:30 hours
Week Days: 09:00 hours to 14:00 hours
Processing/Service Charges for RTGS Fund Transfer
Inward Transactions: No Charge
Outward Transactions: Rs.2lakhs to Rs.5lakhs: Rs.30/-
Above Rs.5lakhs: Rs.55/-
Essential Information for RTGS Fund Transfer
Amount to be remitted
Remitting Customers account number which is to be debited
Name of the beneficiary bank and branch
Name of the beneficiary customer
Account number of the beneficiary customer
Sender to receiver information
IFSC (Indian Financial System Code) of the receiving branch
This RTGS fund transfer is not available for all branches of banks in India; one can check the availability of RTGS system
through http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls.
National Electronic Fund Transfer (NEFT)
NEFT is an electronic fund transfer system on DNS (Deferred Net Settlement) basis through netting. This NEFT will be done
in 12 settlements
Timings for Transferring Funds through NEFT:
Normal Days: 08:00 am to 07:00 pm
Week Days: 08:00 am to 01:00 pm
Processing/Service Charges for NEFT Fund Transfer
Inward Transactions: No Charge
Outward Transactions:
Up to Rs.10, 000: Rs.2.50/- + Service Tax
Rs.10, 000 to RS.1lakh: Rs.5/- + Service Tax
RS.1lakh to RS.2lakhs: Rs.15/- + Service Tax
Above RS.2lakhs: Rs.25/- + Service Tax
ADVANTAGES:
Remitter need not send the cheque or DD to the beneficiary
Beneficiary need not visit the bank for depositing
Beneficiary need not to worry about the loss / theft of physical instruments
Cost effective
Credit confirmation of the remittances sent by SMS or email
Remitter can initiate the remittances from home/ place of work through Internet Banking also
Secure
Essential Things for NEFT Fund Transfer:
Both originating and destination bank branches should be a part of the NEFT system
Name of the beneficiary bank and branch
Name of the beneficiary customer
Account number of the beneficiary customer
Account type of the beneficiary customer
IFSC (Indian Financial System Code) of the beneficiary bank
Indian Financial System Code (IFSC)
IFSC (Indian Financial System Code) is an alpha-numeric code that uniquely identifies bank branch participating in the
NEFT system.
IFSC is an 11-digit code with the first four Alpha characters representing the bank, and the last 6 characters representing the
branch. The 5
th
character is 0 (Zero)

In this IFSC code SBTR0000143, SBTR represents bank name State Bank of Travancore, Last 6 digits 000143 is the
branch code
USES:
Main aim of using this IFSC code is to identify the originating/destination banks and branches and also to route the messages
to the concerned banks/branches appropriately
Some Financial Institutions
Introduction
Securities Exchange Board of India (SEBI): It is regulatory authority of stock exchanges and protects
investors from Fraudulent dealings. It was established in April 1988 and awarded statutory status by Act of
parliament in 1992.
Chairman: UK Sinha
Head quarters : Mumbai
Insurance Regulatory & Development Authority (IRDA) : It is apex body formed under Sec.4 of IRDA
Act 1999 to protect the interests of the policyholders to regulate promote and ensure orderly growth of the
insurance industry in India
Financial Stability & Development Council : This is the apex financial regulator of our country. Headed by
Finance Minister, it coordinates and regulates to four financial regulators of the country i.e. RBI,SEBI,IRDA
and PFRDA to ensure that all of them operate and function in harmony to promote the growth and stability of
Indian Economy.
Indian Banks Association (IBA) : It is the official association of all the banks operating in India. It acts as a
bridge between banks on one hand and government and staff unions on the other. Presetly Mr. K.R. Kamath,
CMD of Punjab National Bank is Chairman of IBA.
Non Banking Financial Company (NBFC): These are companies which have functions similar to banking
like accepting deposits and making loans. However they do not have license for banking, although they are
regulated by RBI.
Deposit Insurance & Credit Guarantee Corp.(DI&CGC) : It is a wholly owned subsidiary of RBI which
provides an insurance cover of Rs.1lakh per depositor per bank in case of bank failure.It also provides
guarantee of repayment amount in default of small loans given by banks.
Export Credit Guarantee Corporation of India (ECGC): ECGC is a Govt. body which provides export
credit insurance facilities to exporters and banks in India. It encourages Indian exporters by giving them credit
insurance covers.
Banking Codes and Standards Board of India: It is a industry watch dog set up by RBI to monitor and
assess the compliance with codes and minimum standards of service to individual customers, as prescribed by
the RBI.
Credit Information Report: A Credit Information Report is a factual record of a borrowers credit payment
history compiled from information received from different credit grantors. Its purpose is to help credit grantors
make informed lending decisions-quickly and objectively.
Credit Rating: Credit Rating is an assessment of the probability of default on payment of interest and
principal on a debt instrument. In simple words, it ranks the company or countrys ability to meet their debt
obligations.
Negotiable Instrument
There are certain documents used for payment in business transactions and are Transferred freely from one
person to another. Such documents are called negotiable Instruments like cheque, bank draft, bill of exchange,
promissory notes etc. Thus we can say negotiable Instruments are a transferable document where negotiable
means transferable and Instrument means document. According to section 13 of the negotiable Instruments
act 1881. A negotiable Instrument means promissory note bill of exchange or cheque payable either to order
or to bearer.
Features of a Negotiable Instrument
1. It is a written document
2. A negotiable Instrument payable to bearer is transferable merely by delivery whereas a Negotiable
Instrument payable to order is transferable by endorsement and delivery.
3. The holder of a Negotiable Instrument can sue upon it in his own name.
4. Its works in the same manner as money and like money it may also be transferred from one person to
another.
5. The Transferor does not need to give notice to any person at the time of transferring the Instrument.
6. It is the simplest and most convenient mode of assignment of a debt.
7. The tittle to the Instrument received by a bonafide transferee is not affected by defect in the title of the
transferor.
A. Negotiable Instruments
1. Promissory note
2. Bill of exchange
3. Cheque
4. Exchequer bill
5. Circular note
6. Dividend warrant
7. Share warrant
8. Bearer debenture
9. Bank note
10. Bank draft
B. Non Negotiable Instruments
1. Money order
2. Postal order
3. Deposit receipt
4. Share certificate
C. Quasi Negotiable Instruments
1. Bill of lading
2. Dock warrant
3. Carriers receipt
4. Letters of credit
5. Railway receipt
Types of Negotiable Instruments
According to the negotiable Instruments act 1881 there are just three types of Negotiable Instruments example
promissory note, bill of exchange and cheque. However many other documents have also been recognized as
negotiable instruments on the basis of custom and usage like treasury bills, share warrant etc. They posses the
features of Negotiability
Promissory note
A promissory note is an Instrument in writing containing an unconditional undertaking signed by the
maker to pay a certain sum of money to or to the other of a certain person. This type of a document is called
a promissory note.
Features of promissory note
1. A promissory note is unconditional
2. It is always in writing a verbal promise to pay a specified sum of money is not a promissory note.
3. It is made and signed by the debtor.
4. A promissory note is made as payable in the Currency of the country
5. A promissory note drawn for a specified duration should be adequately stamped According to its value.
6. A promissory note should be drawn for the payment of a specified sum.
Bill of exchange
A bill of exchange is an Instrument in writing, unconditional order signed by the maker directing a
certain person to pay a certain sum of money only to or to the other of a certain person or to the bearer of the
Instrument.
Features of bill of exchange
1. A bill must be in writing, duly signed by its drawer accepted by its drawee and properly stamped as per
Indian stamp act.
2. It must contain an order to pay words like please pay rs.5000 on demand and oblige are not used.
3. The order must be unconditional.
4. The order must be to pay money and money alone.
5. The sum payable mentioned must be certain or capable of being made certain.
6. The parties to bill must be certain.
Cheque
A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise
than on demand. It is an unconditional order in writing be drawn by a customer on his bank. Requesting the
specifying bank to pay on demand a certain sum of money to a person named in the cheque or to the bearer or
to the order of a stated person.
A cheque being a bill of exchange must possess the following requirements.
1. A cheque must be drawn upon a specified banker
2. A cheque must be payable on demand.
3. A cheque must be signed by the drawer.
4. A cheque must be an unconditional order to pay a certain amount of money.
5. A cheque be dated.
Types of cheque
1. Open cheque:- A cheque is called open when it is possible to get cash over the counter at the bank.
2. Crossed cheque:- Since open cheque is subject to risk of theft it is dangerous to issue such cheques. This
risk can be avoided by issuing other types of cheque called crossed cheque.
3. Bearer cheque:- A cheque which is Payable to any person who presents it for payment at the bank counter
is called bearer cheque.
4. Order cheque:- An order cheque is one which is payable to a particular person. In such a cheque the word
bearer may be cut out or cancelled and the word order may be written. The payee can transfer an order cheque
to someone else by singing his or her name on the back of it..
Quasi Negotiable Instruments
Quasi Negotiable Instruments are those Instruments which can be transferred by endorsement and delivery
but the transferee does not get a better tittle that of the transferor. Therefore they cannot be classified as
negotiable Instruments and hence the negotiable Instruments act is not applicable to them.
Technology Used in ATMs
Automated Teller Machine (ATM)
Automated Teller Machine (ATM) is a computerized machine that provides the customers the facility of checking balance,
withdrawing and transferring the funds without visiting the branch of the bank
Important Points to Remember:
Technology Used: Broadband Integrated Service Digital network (BISDN)
Operating systems used in ATMs Primarily: Windows XP Professional and Windows XP Embedded
Communication Mode: Both Data and Voice
Operates on: layer 2 in OSI Model (Data Link Layer)
Connection Mode: Point-to-Point
Size of ATM Cells: 53 Bytes (48 bytes of data and 5 bytes of header information)
Facilities available at ATMs
Account Information
Cash Deposit
Regular bills payment
Purchase of Re-load Vouchers for Mobiles
Mini/Short Statement
Loan account enquiry
There are two types of cards supported by ATM
ATM Debit Card
Credit Card
ATM Debit Card:
ATM Debit Card is card given by bank to access your account easily using a machine called Automated Teller Machine
(ATM). Debit cards can be used for shopping purposes, without carrying the money. You can use Debit cards while
purchasing, but you must have money in your account. Purchased amount will be deducted immediately from your account.
Advantages:
No need to carry money with you
You can use it for shopping purpose
No need of filling withdrawal and deposit slips
Money Security: No one can access it without knowing PIN Number
You can access your account from any corner of the world, no need to visit bank branch
Availability (24*7 Services)
Disadvantages:
Sometimes you may face Server-Down Problem
Forgetting of Pin Number
Fees charged for using card in different bank may be expensive
Limitation of cash withdrawal
Credit Card:
Credit card is different from debit card, in debit card you must have money for using it. But for using credit cards, its not
necessary. If you use credit card for purchasing purposes it does not deduct your money immediately.
Bank will pay the vendors and sends the bill to the customer every month.

Important Books And Authors List
BOOKS AUTHOR
Wings of Fire, Ignited Minds, Target 3 Million, The
luminous Spark, India 2020, Mission India,
Indomitable Spirit, The Life Tree, India My Dream,
Inspiring Thoughts, Thoughts for Change, Spirit of
India, Evolution of Enlightened Societies, India Wins
Freedom, You are Born to Blossom, Turning Point
A.P.J. Abdul Kalam
The 3 Mistakes of My Life, Five Point Someone, Two
States, Revolution 2020, One Night at the Call Center
Chetan Bhagat
Inspired Talks, The Sleeping Giant, Living at the
State, Way of the Saint, Jnana Yoga, Raja Yoga, My
Master, Women of India, Vedanta Philosophy
Swami Vivekananda
Lipika, Chandralika, Chitra, Geethanjali, Gora,
Ghare, Broken Ties, Malini, Sacrifice, Two Sisters ,
Bhaire, Chaturanga
Rabindranath Tagore
Arthashastra Koutilya
My Days, The Guide, Malgudi days, Waiting for the
Mahatma, The Dark Room, The Bachelors of Art, The
English Teacher, The Financial Expert
R.K. Narayanan
My Truth Indira Gandhi
My Life in Action Jackie Chan
Glimpses of World History Jawaharlal Nehru
My Struggle E K Nayanar
Arthashastra Kautilya
Ashtadhyayi Panini
Ayodhya P. V. Narasimha Rao
Bhagwad Gita, Mahabharata Veda Vyas
Ramayana Valmiki
Panchatantra Vishnu Sharma
Megdoot, kumarasambhava, Swapnavasavadatta,
Malavikagnimitra
Kalidasa
Broken Wing Sarojini Naidu
End of the Era C.S. Pandit
Eternal India Mrs. Indira Gandhi
Imagining India Nandan Nilekani
A Better India A Better World N.R. Narayan Murthy
Fasting, Feasting Anita Desai
Forty Nine Days Amrita Pritam
Golden Threshold Sarojini Naidu
Indian Philosophy Dr. S. Radhakrishnan
Life of Pi Yann Martel
When Loss is Gain Diplomat Pavan K.Varma
One Day Wonders Sunil Gavaskar
My life and Times V.V. Giri
Kalpana Chawla A Life Anil Padmanaban
Kamasutra Vatsayana
War and Piece Leo Tolstoy
Devdas Sharat Chandra Chatterjee
Half a Life V.S Naipoul
Unhappy India Lala Lajpat Rai
Jyoti punj Narendra Modi
The Adventures of Sherlock Holmes Sir Arthur Conan Doyle
Economic History of India R. C. Dutt
The book of Indian Birds Dr. Salim Ali
Living with Honour Shiv Khera
We Indians, Train To Pakistan, Women and Men in
My Life
Khuswant Singh
The Discovery of India Jawaharlal Nehru
Indian Philosophy Dr. S. RadhaKrishnan
Gulliver Travels Jonathan Swift
My Nation My Life L.K. Advani
Independence S.K. Banerjee
Last Days of Nethaji G.D. Khosla
My Experiments with Truth Mahatma Gandhi
The God of Small Things Arundhati Roy
War and Piece Tolstoy
Wakeup India Annie Besant
Two Lives, The Golden Gate, A Suitable Boy, Arion
and The Dolphin, An Equal Music, From Heaven
Lake:Travels
Vikram Seth
India First K. R. Malkani
My Life Bill Clinton
Dreams From My Father Barack Obama
The Future of India Dr. Bimal Jalan
Hamlet, Othello, Macbeth, King Lear Shakespeare


Marketing Questions for SBI PO Exam 2014
Welcome to edugeeks.in. Friends here is our first set of marketing questions we designed these questions from
various previous year question papers, hence you are recommended to take this test to make your SBI PO
exam preparation very easy.
Marketing is one of the toughest parts that every candidate will feel but form this area you will face very basic
questions hence practice marketing online tests provided by us to give the best. Here you go
Marketing Questions for SBI PO 2014
1. Marketing Concept is based on
A. Customer-Oriented
B. Product-oriented and centred
C. Profit
D. Loss
E. None of these
2. Which of the following Bank is based on new marketing concept?
A. Union Bank of India
B. State Bank of India
C. UCO Bank
D. PNB
E. All of these
3. In marketing CRM stands for
A. Case Role Management
B. Customer Relationship management
C. Customer Role in Market
D. None of these
4. Which is the term of Digital Marketing
A. Blocked
B. Cost
C. Plan
D. Brand
E. Utility
5. What is the element of Marketing Concept?
A. Consumer Satisfaction
B. Goal of the Organization
C. Plan
D. Market
E. None of these
6. RSS stands for
A. Real Save System
B. Role saver system
C. Real simple syndication
D. Real saver system
E. None of these
7. Marketing Concept earns the profit with
A. Customer Satisfaction of Bank
B. Staff
C. Product
D. Building
E. ATM
8. Which is customer and society-oriented concept of marketing?
A. Product Concept of Marketing
B. Society Marketing Concept
C. Product Concept
D. Marketing Concept
9. Which is the pillar of Marketing Concept
A. Financial Planning and control
B. Customer Orientation
C. Plant
D. Fixed Cost
E. Sales
10. Customerisation means
A. Promotion
B. Goods offer
C. Sales
D. Relation
E. None of these
ANSWERS:
1) A 2) E 3) B 4) A 5) D
6) C 7) A 8) B 9) B 10) D
SBI PO IMPORTANT MARKETING QUESTIONS
1. Marketing will not happen unless:
A. E-commerce is flourishing.
B. Facilitators are present to simplify exchange.
C. Middlemen are present to facilitate exchange.
D. Two or more parties each have something they want to exchange for something else.
E. An economy is market-directed rather than planned.
2. MACRO-marketing:
A. Is a social process.
B. Tries to overcome discrepancies of quantity and discrepancies of assortment.
C. Tries to effectively match supply and demand.
D. Tries to overcome the many separations between producers and consumers.
E. All of the above are true statements.
3. The three basic ideas in the marketing concept are:
A. Customer satisfaction, resource efficiency, sales maximization.
B. Customer satisfaction, total company effort, sales growth.
C. Resource efficiency, sales growth, profit maximization.
D. Customer satisfaction, marketing manager as chief executive, profit.
E. Customer satisfaction, total company effort, profit.
4. A marketing strategy specifies
A. A marketing mix.
B. A target market and a related marketing mix.
C. A target market.
D. The resources needed to implement a marketing mix.
E. both A and D.
5. The four Ps of a marketing mix are:
A. Production, Personnel, Price, and Physical Distribution
B. Promotion, Production, Price, and People
C. Potential customers, Product, Price, and Personal Selling
D. Product, Price, Promotion, and Profit
E. Product, Place, Promotion, and Price
6. A marketing plan is:
A. A marketing program.
B. A marketing strategy.
C. A marketing strategyplus the time-related details for carrying it out.
D. A target market and a related marketing mix.
E. A plan that contains the necessary operational decisions.
7. Market segmentation:
A. Means the same thing as marketing strategy planning.
B. Assumes that most submarkets can be satisfied by the same marketing mix.
C. Is the same thing as positioning.
D. Tries to identify homogeneous submarkets within a product-market.
E. All of the above are true.
8. Positioning is a marketing management aid which refers to:
A. A products ability to provide both immediate satisfaction and social responsibility.
B. How customers think about proposed and/or present brands in a market.
C. A firms ability to distribute products through middlemen who are in the right position to
reach target customers.
D. How a firm approaches customer relationship management.
E. All of the above.
9. Rising costs and inflation are part of the uncontrollable ______________ environment.
A. technological
B. economic
C. competitive
D. legal
E. cultural and social
10. Product means
A. All the services needed with a physical good
B. A physical good with all its related services
C. The need-satisfying offering of a firm
D. All of a firms producing and distribution activities
E. A well-packaged item with a well-advertised brand name
ANSWERS:
1) D 2) E 3) E 4) B 5) E
6) C 7) D 8) B 9) B 10) C

More Questions
1. The balance sheet of an organisation gives information regarding-
(a) Result of operations for a particular period
(b) The financial position as on a particular date
(c) The operating efficiency of the firm
(d) Financial position during a particular period
(e) The operating health of the firm
ANS: (b)
2. ESOP stands for-
(a)Efficient Service of Promises
(b)Employees Service Option Projects
(c)Effective System of Projects
(d)Employees Stock Option Plan
(e)Essential Security of Police
ANS: (d)
3. I understand marketing as
(a) Only selling
(b) Meeting human and social needs profitably
(c) To focus on customer
(d) To focus only on producing goods and services
(e) Only (b) and (c)
ANS: (e)
4. USP in marketing means-
(a)Unique Selling Practices
(b)Uniform Selling Practices
(c)United Sales Person
(d)Unique Selling Proposition
(e)Useful Sales Person
ANS: (d)
5. Who is called a Referral -
(a) Sales person
(b) All customers
(c) Lead provided by operation staff
(d) Calling the existing purchasers
(e) All purchasers
ANS: (c)
6. DSA in marketing means
(a)Direct Selling Agent
(b)Delivery Staff Agency
(c)Direct Supplier Agent
(d)Distribution and Supply Agency
(e)Driving Sales Ahead
ANS: (a)
7. Digital Marketing is similar to
(a) Online marketing
(b) Cold calling
(c) Web designing
(d) Market fore-cast
(e) Outdoor marketing
ANS: (a)
8. Diversification means
(a) Dividing the market into small segments
(b) Dividing energy of sales persons
(c) Marketing of diverse products
(d) All of these
(e) None of these
ANS: (c)
9. Market research is required for-
(a) Deciding sales volume
(b) Deciding production levels
(c) Deciding market strategies
(d) Deciding sales team members
(e) All of these
ANS: (c)
10. Networking makes marketing-
(a) Very difficult
(b) Very cumbersome
(c) Easy to handle
(d) Has no role in marketing
(e) None of these
ANS: (c)
1. Consumer information sources are-
(a) Personal source and commercial source
(b) Public source
(c) Experiential source
(d) All the above
(e) Only (a) and (b)
ANS: (d)
2. Zero-Based Budgeting (ZBB) means-
(a) A tool for marketing cost analysis
(b) A tool for financial analysis
(c) Each year, budgeting starts from a scratch
(d) A certain percentage of sales
(e) Only (a) and (b)
ANS: (c)
3. The advantages of telephone-interview are
(a) Relatively low cost per interview
(b) Good for reaching important people who are inaccessible
(c) Securing co-operation which is not always possible
(d) All of these
(e) Only (a) and (b)
ANS: (d)
4. The abbreviation ISP stands for-
(a)International Spy Project
(b)Indian Social Planning
(c)Initial Service Provider
(d)Internet Service Provider
(e)None of these
ANS: (d)
5. The best advertisement is
(a) Glow sign boards
(b) On internet
(c) T.V Media
(d) Print Media
(e) Which satisfies a customer.
ANS: (e)
6. According to product life cycle theory, the profit is maximum in-
(a) Developed stage
(b) Early stage
(c) Matured stage
(d) Declined stage
(e) None of these
ANS a)
7. In banks ROA means
(a) Rate of Allocation
(b) Return on Assets
(c) Return on Advances
(d) Ratio of Assets
(e) Only (b) and (c)
ANS: (b)
8. In the context of globalisation BPO means-
(a)British Petroleum Organisation
(b)British Passport Office
(c)Budgeting Process Orientation
(d)Business Process Orientation
(e)Business Process Outsourcing
ANS: (e)
9. SWOT Analysis refers to-
(a) Marketing tool to understand constraints and potentials of self and competitor
(b) External environment analysis
(c) Internal environment analysis
(d) Strategic planning for selling product
(e) South-west organisation for trade
ANS: (a)
10. For an economic organisation, MIS stands for
(a) Middle Income Scheme
(b) Management Information System
(c) Management of Information and Science
(d) Marketing Information System
(e) Only (b) and (c)
ANS: (b)

Marketing Study Material for SBI PO 2014
5 Cs of Marketing
Five Cs of marketing are
1. Customers
2. Company
3. Competitors
4. Collaborators
5. Context
Customer needs: What needs does the firm seek to satisfy?
Company Skills: What special competence does the firm possess to meet those needs?
Competition: Who competes with the firm in meeting those needs?
Collaborators: Whom should the firm enlist to help it and how can the firm motivate them?
Context: Which cultural, technological, and legal factors limit the possibilities?
Bases of Marketing:
Markets can be segmented in a variety of ways, among those most widely used bases are
Demographic: age, income, gender, occupation
Geographic: nation, region of country, urban vs rural
Lifestyle: hedonistic vs. value oriented
These three types of bases demographic, geographic, and lifestyle are general descriptors of consumers
Marketing Mix:
Marketing mix is used to describe the set of activities comprising a firms marketing program
Below twelve marketing terms are determined as marketing mix
1. Merchandising / product planning
2. Pricing
3. Branding
4. Channel of Distribution
5. Personal selling
6. Advertising
7. Promotions
8. Packaging
9. Display
10. Servicing
11. Physical Handling
12. Fact finding and analysis / market research
Aggregation and regrouping of these elements has become popular
Four Ps of Marketing:
Four Ps of marketing are
1. Product
2. Place (Channel of distribution)
3. Promotion ( communication strategy)
4. Pricing
Six Ms of Marketing:
Six Ms of Marketing are
Market: To whom is the communication to be addressed?
Mission: What is the objective of the communication?
Message: What are the specific points to be communicated?
Media: Which vehicles will be used to convey the message?
Money: How much will be spent in the effort?
Measurement: How will impact be accessed after the campaign?
Product Definition:
Product decision starts with understanding of what a product is namely, the product offering is not the thing
itself, but rather the total package of benefits obtained by the customer.
For marketing strategy development purposes, the product has to be considered from the point of view of
value delivered to the customer
Value of product is delivered from
1. The physical product itself
2. Brand Name
3. Company reputation
4. Presale education provided by salespeople
5. Postsale technical support
6. Repair service
7. Financing plans
8. Financing plans
9. Convenient availability
10. Word-of-mouth references from earlier adopters of the product
11. Reputation of the outlet where the product was purchased
Product Line Planning Decisions:
There are three types of product line planning decisions
1. Product line length
2. Product line breadth
3. Product line depth
Product Development Process:
If you want to develop a new product then you should go for the below five step process
1. Opportunity identification
2. Design
3. Testing
4. Product introduction
5. Life cycle management
Marketing Channel
Marketing channel is a set of mechanisms or the network vis which a firms goes to market that is in touch
with its customer for a variety of tasks ranging from demand generation to physical delivery of the goods.
Here are eight generic channel functions that serve as a staring place for assessing needs in a particular context
1. Product information
2. Product customization
3. Product quality assurance
4. Lot size
5. Product assortment
6. Availability
7. After sale service
8. Logistics
Sales Promotions:
Sales promotions include things such as samples, coupons and contests, some major types of sales promotions
are
1. Consumer promotions
2. Trade promotions
3. Retail promotions
MARKETING IMPORTANT TERMS
After having a look on this material you are recommended to go through the online aptitude tests provided in our site to
improve your time management which is one of the success factor in competitive examinations. You should practice good
number of online exams to get confidence hence you are recommended to go through the online test for SBI PO for various
sections like computer knowledge, general awareness, arithmetic and reasoning. Here you go
Analysis In marketing and other social science disciplines, a variety of statistical and non-statistical methods are used to
analyze data, instead of sheer intuition, or simple descriptive
Statistics which have been the norm in the library filed.
Aggregation A concept of market segmentation that assumes that most consumers are alike.
Advertising The placement and purchase of announcements and persuasive messages in time or space in any of the mass
media by business firms, non-profit organizations. This has not been a traditional method for libraries of informing the public,
but rather public service announcements, which are placed at no cost, are the norm.
Activities, interests, and opinions (AIO) A measurable series of psychographic (as opposed to demographic) variables
involving the interests and beliefs of users. Note, because psychographics are usually expensive to gather, yet offer a more
precise profile of users, demographic variables are usually relied upon.
Acquisitions value The users perception of the relative worth of a product or service to them. Formally defined as the
subjectively weighted difference between the most a buyer would be willing to pay for the product or service, less the actual
price of the item. Time user must spend to acquire is often used as a surrogate for relative worth or price paid, in library
research. For example, a user might be willing to expend drive time and a brief time in the library to check out a best seller,
but not wait two weeks for a copy to be returned.
Accountability Libraries like private sector businesses are increasingly called upon to make all units accountable for results.
Growing funds are needed for technology as opposed to only books. Funders often cut the library budget first, in favour of
other agencies such as police and fire or other seemingly, more necessary agencies. Libraries are developing better
performance measures within the present day control systems to offer better accountability.
Audience The number and/or characteristics of the persons or households who are exposed to a particular type of advertising
media or media vehicle. In a library this could be a certain number of people that attend a library program.
Audit The process of reviewing the librarys strengths and weaknesses (internally), and opportunities and threats (externally)
to shed light on the agencys performance.
Balanced stock The composition of merchandise inventory in the colors, sizes, styles and other assortment characteristics
that will satisfy user wants. For the library this would mean, services and materials based upon users wants and needs.
Barcode An information technology application that uniquely identifies various aspects of product characteristics, increasing
speed, accuracy, and productivity of distribution process. Most library materials are barcoded for security.
Brand A name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those
of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that
seller. If used for the firm as a whole, the preferred term is trade name. Library could be considered a trade name.
Channel of distribution An organized network of agencies and institutions which in combination perform all the functions
required to link producers with end customers to accomplish the marketing task. For a library this would include vendors,
publishers as well as library facilities.
Circulation The number of copies of a print advertising medium that are distributed. For the library field, this is numbers of
items checked out by users.
Consumer The ultimate user of goods, ideas or services. Also the buyer or decision maker, for example, the parent selecting
childrens books is the consumer.
Core product The central benefit or purpose for which a consumer buys a product or service. The core product varies from
purchaser to purchaser. For a library user the core benefit of checking out a book, may be for one user that there is no charge,
and to another the availability of a work which can no longer be purchased.
Customer The actual or prospective purchaser of products or services. The library user is the librarys customer.
Decision support system (DSS) A decision support system (marketing definition) is a systematic collection of data,
techniques and supporting software and hardware by which an organization gathers and interprets relevant information from
business and the environment and turns it into a basis for making management decisions. A DSS differs from a management
information system in that it is designed to answer precise questions and what/if questions. An example would be, What
affect on system library use will there be if Branch X is closed?
DE marketing The process of reducing the demand for a productor decreasing consumption. For example, the library
discontinues offering income tax assistance and forms.
Direct marketing Marketing efforts, in total directed toward a specific targeted groupdirect selling, direct mail, catalog or
cablefor soliciting a response from customer. A library may mail a library registration card to every new mother in the
hospital.
Dwell time The amount of time a customer/user spends in time waiting in line. For a library user this is a price expended.
Eighty-twenty principle The situation in which a disproportionately small number (e.g., 20%) of staff, products or users
generate a disproportionately large amount (e.g., 80%) of a firms use/profits. A use analysis should be conducted to determine
what the cause is.
Exchange All activities associated with receiving something from someone by giving something voluntarily in return. This
is the heart of the marketing process. A library user gives time instead of money to borrow materials, but it is still an exchange
Goods A product that has tangible form in contrast to services that are intangible. A book versus a story read.
Market The set of actual or potential users/customers.
Market area A geographical area containing the customers/users of a particular firm/library for specific goods or services.
This would be determined by geocoding library users addresses and determining the boundaries of the primary geographic
market.
Market demand The total volume of a product or service bought/used by a specific group of customers/users in a specified
market area during a specified period. For example, the demand for best sellers during the fall.
Market development Expanding the total market served by 1) entering new segments, 2) converting nonusers, 3) increasing
use by present users.
Market positioning Positioning refers to the users perceptions of the place a product or brand occupies in a market segment.
Or how the company/librarys offering is differentiated from the competitions. For a library a competitor may be another
public agency competing for public funds. What unique niche does the library serve when competing against police for same
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Market profile A breakdown of a facilitys market area according to income, demography, and life style (often.)
Market research The systematic gathering, recording and analyzing of data with respect to a particular market, where market
refers to a specific user group in a specific geographic area.
Market segmentation The process of subdividing a market into distinct subsets of users that behave in the same way or have
similar needs. Segments for the library could be demographic (Asian); geographic (branch-level); psychographics (leisure-
oriented); customer size (largest user group area); benefits (have children in the home learning to read.)
Market share A proportion of the total sales/use in a market obtained by a given facility or chain. Branch A has 35% of the
systems circulation.
Marketing The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual and organizational goals.
Marketing channel A set of institutions necessary to transfer the title to goods and to move goods from the point of
consumption. (Vendors, publishers, library facilities.)
Marketing mix The mix of controllable variables that the firm/library uses to reach desired use/sales level in target market,
including price, product, place and promotion- 4 Ps. For a library this would be embodied in price of users time to access
goods, a product would be a book or story time, place is a branch or bookmobile, and promotion is publicity, displays etc.
Marketing opportunity An attractive arena of relevant marketing action in which a particular organization is likely to
enjoy a superior and competitive advantage. The library is selected to host the community heritage festival which is funded
by the city.
Marketing plan A document composed of an analysis of the current marketing situation, opportunities and threats, analysis,
marketing objectives, marketing strategy, action programs, and projected income statement. This could be very similar to a
librarys long range plan.
Maturity stage of product life cycle Initial rapid growth is over and use/sales level off.
Non-profit marketing The marketing of a product or service in which the offer itself is not intended to make a monetary
profit for the marketer.
Penetrated market Actual set of users actually consuming the product/service.
Point-of-purchase Promotional materials placed at the contact sales point designed to attract user interest or call attention to
a special offer, e.g., Sign up for Summer Reading Program.
Point-of-sale (POS) A data collection system that electronically receives and stores bar code information derived from a sales
transaction. This could the zip codes for library users, facilitating the library in determining geographic market are that users
reside in.
Potential market Set of users who profess some level of interest in a designed market offer.
Price The formal ratio that indicates the quantities of money goods or services needed to acquire a given quantity of goods
or services. For a library user price may come in the form of time the library users must expend to obtain library materials or
services.
Private sector Activities outside the public sector that are independent of government control, usually, but not always carried
on for a profit.
Product A bundle of attributes or features, functions, benefits and uses capable of exchange, usually in tangible or intangible
forms. The librarys products include materials to use, questions answered, storyhours, online searching, etc.
Product life cycle The four stages products go through from birth to death: introductory, growth, maturity, and decline.
Product mix The full set of products offered by an organization e.g., books, videos, storyhours, etc.
Product positioning The way users/consumers view competitive brands or types of products. This can be manipulated by the
organization/library. The librarys video collection, available for free, is competitive with local video stores that charge, if
video collections are comparable. If the collections are not, the library is differentiating the video collection from the video
store.
Quality control An ongoing analysis of operations, to verify goods or service meet specified standards, or to better answer
customer/user complaints. Libraries have been criticized for not employing more quality control standards on library services.
Quality of life Sometimes measured by income, wealth, safety, recreation and education facilities, education health,
aesthetics, leisure time and the like.
Quantity discount A reduction in price for volume purchases.
Shopping good Goods and products can be classified as convenience, shopping or specialty. A shopping good is one that
more time is spent selecting (browsing) than a quick convenience good. Example, a certain type of mystery book.
Slogan The verbal or written portion of an advertising message that summarizes themain idea in a few memorable wordsa
tag line.
Social advertising The advertising designed to education or motivate target audiences toundertake socially desirable actions.
Social class A status hierarchy by which groups and individuals are classified on the basis of esteem and prestige.
Social indicator The data and information that facilitate the evaluation of how well a society or institution is doing.
Specialty advertising The placement of advertising messages on a wide variety of items of interest to the target markets such
as calendars, coffee cups, pens, hats, note paper, t-shirts, etc. These are widely given out to librarians at professional
conferences from vendors. Libraries may use these items as well, but are usually sold in library gift shops.
Target market The particular segment of a total population on which the retailer focuses its merchandising expertise to
satisfy that sub market in order to accomplish its profit objectives. Or for the library, a target market might be within the
market area served, children 5-8 years old, for summer reading programs, to increase juvenile use and registration
Value The power of any good to command other goods in peaceful and voluntary exchange.
Values The beliefs about the important life goals that consumers are trying to achieve. The important enduring ideals or
beliefs that guide behavior within a culture or for a specific person.
Word of mouth communication (WOM) This occurs when people share information about products or promotions with
friendsresearch indicate WOM is more likely to be negative
MARKETING ABBREVIATIONS
Ad- Advertising
MKT Marketing
B2B Business to Business
SME Subject Matter Expert
F500- Fortune 500
EM- Email
DM Direct Mail
ABM Account Based marketing
TAP Targeted account programs
DM Digital Marketing
SE Search Engine
SERP Search Engine Results Page
SEM Search Engine Marketing
SEO - Search Engine Optimization
SMM Social Media Marketing
SMO Social Media Optimization
PPC pay per click
PPA Pay Per Action
PPI Pay Per Impression
PPL Pay Per Lead
CTR Click through rate
CPC Cost Per Click
CPL Cost Per Lead
CPS Cost Per Sale
CMS Content Management System
CRM Content Relationship Management
MAP Marketing Automation Platform
SFA Sales Force Automation
BI Business Intelligence
MLM Multi Level Marketing
FDI Foreign Direct Investment
POP Point of Purchase Display
R&D Research and Development
UPC Universal Product Code
POS Point of Sale Display
ROI Return on Investment
CLS Costumer Location System
RPM Resale Price Maintenance
VAT Value Added Tax
VBS Verbal Marketing System
CR Concession Rate
DRA Direct Response Advertising
CLV Customer Lifetime Value
eCommerce Electronic Commerce
CRM Customer Relationship Management
NPD New Product Development
ROMI Return on Marketing Investment
LTV Life Time Value
BDI Brand Development Index
CDI Category Development Index
MR Market Research
AIM Alternative Investment Market
MS Market Share
TMV True Market Value
MAA- Marketing Authorization Application
MS Market Surveillance
WOMM- Word of Mouth Marketing
IDRA Industries Development and Regulation Act
UX User Experience
GRS Gross rating Point
BEP Break Even Point
PAN Permanent Account Number
IMF International Monitory Fund