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K.V.Pendharkaer College: T.Y. Banking and Insuranse Semester 5
K.V.Pendharkaer College: T.Y. Banking and Insuranse Semester 5
PENDHARKAER
COLLEGE
t.Y. BANKING AND INSURANSE
SEMESTER 5TH
MARKETING MIX
IN FINANCIAL SERVICES
NAME ROLL NO
SHUSHANT JADHAV 108271
ILIYAS SALMANI 108296
HASIM SHEKH 108300
DATE: 6/9/2010
SUBMIT TO: Darshana madam
Sign:
DECLARATION
This study entitled on Banking & Insurance as a course in relation
to financial service marketing. Has been selected by us for the project
work for Marketing in BBI of S.Y. Banking & Insurance semester-V
examination and has not been submitted by us to any other educational
institution or agency; it also declares that it is an independent study
undertaken by us, taking only the help of my concern professor.
Lecturer
Signature.
ACKNOWLEDGEMENT
I am deeply in debted to DARSHANA MISS, our Lecturer. For the
help she has rendered in selecting this topic for the project work of
Marketing in BBI , semester-V examination as well as the timely
guidance and advice she offered in conducting the study and completing
the work.
Introduction to marketing
The term "marketing mix" was first used in 1953 when Neil Borden, in
his American Marketing Association presidential address, took the
recipe idea one step further and coined the term "marketing-mix". A
prominent marketer, E. Jerome McCarthy, proposed a 4 P’s
classification in 1960, which has seen wide use. The four Ps concepts is
explained in most marketing textbooks and classes.
The marketing mix is probably the most famous marketing term. Its
elements are the basic, practical components of a marketing plan. Also
known as the Four P's, the marketing mix elements
are price, place, product, and promotion.
The concept is simple. Think about another common mix - a cake mix.
All cakes contain eggs, milk, flour, and sugar. However, you can alter
the final cake by altering the amounts of mix elements contained in it.
So for a sweet cake add more sugar! It is the same with the marketing
mix. The offer you make to you customer can be altered by varying the
mix elements. So for a high profile brand, increase the focus on
promotion and desensitize the weight given to price. Another way to
think about the marketing mix is to use the image of an artist's palette.
The marketer mixes the prime color’s (mix elements) in different
quantities to deliver a particular final color. Every hand painted picture
is original in some way, as is every marketing mix. Some commentators
will increase the marketing mix to the Five P's, to include people.
Others will increase the mix to Seven P's, to include physical
evidence and process. The term was coined by Neil H. Borden in his
article The Concept of the Marketing Mix in 1965. Mix applied to a real
business
PHYSICAL
EVIDENCE PRICE
7 PS OF
PROCESS MARKETING
PLACE
PEOPLE
PROMOTION
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical Evidence
Product
For many a product is simply the tangible, physical entity that they may
be buying or selling. You buy a new car and that's the product - simple!
Or may be not. When you buy a car, is the product more complex than
you first thought.
The financial companies should aim at creating new generic products as
per the need of the customer. Attractive schemes have to be created
coupled with effective delivery in order to optimize customer
satisfaction.
It is always better to bring modification in the existing products by
adding some new features and elimination of outdated products. In the
competitive market the task of selling a product is tougher since the core
product are the same? This necessitates product differentiation. There
should be different producer in the arrays of the company, so that the
company can cater the needs of the different groups of the investors or
the customers.
In order to design and develop new product one should take the help of
market research to assess the needs of the customer availability of
existing product and future growth in demand.
Price
There are many ways to price a product. Let's have a look at some of
them and try to understand the best policy/strategy in various situations.
The potential customer generally frames their investment strategies in
the background of pricing decisions. The prices take different dimension
depending open the type of financial services. The prices of financial
services are always linked with return.
For an insurance company the price means the premium, for the banks it
is the rate of interest and for mutual funds it is the NAV. However,
while deciding pricing, incentives, brokerage and agency commission
this items will affect the unlimited returns to the investors. After all the
cases only the competitive prices and the promised return catches the
sentiment of the customers.
Place
Place is also known as channel, distribution, or intermediary. It is the
mechanism through which goods and/or services are moved from the
manufacturer/ service provider to the user or consumer. The important
considerations while making place decision are available for the smooth
functioning and convenient disposal. In short, place means where actual
consumption is done.
Promotion
In order to promote the business in highly competitive words, it is the
time to develop creative promotional tool kits so that impulse buying is
stimulated amongst the potential customers. The promotional of sales
mat be thought advertisements, road shows, personal financing shows
contest ect. The various promotional tools used by the major players are.
(a) Personal promotion: person to person or conferences.
People
People are the most important element of any service or experience.
Services tend to be produced and consumed at the same movement, and
aspects of the customer experience are altered to meet the 'individual
needs' of the person consuming it. Most of us can think of a situation
where the personal service offered by individuals has made or tainted a
tour, vacation or restaurant meal. Remember, people buy from people
that they like, so the attitude, skills and appearance of all staff need to be
first class. Here are some ways in which people add value to an
experience, as part of the marketing mix - training, personal selling and
customer service.
Marketing of service is significantly influenced by the qualities of
services and interpersonal relationship between the customer and
services organizations. In order to motivate the potential customer the
services should be offered in the best possible manner. In the
competitive world of financial services market orientation of product
and customer orientation of services are the two key factors. Prompt and
timely services as per the needs of customer would make difference.
Process
Process is another element of the extended marketing mix, or 7P's.There
are a number of perceptions of the concept of process within the
business and marketing literature. Some see processes as a means to
achieve an outcome, for example - to achieve a 30% market share a
company implements a marketing planning process
Another view is that marketing has a number of processes that integrate
together to create an overall marketing process, for example -
telemarketing and Internet marketing can be integrated. A further view is
that marketing processes are used to control the marketing mix, i.e.
processes that measure the achievement marketing objectives. All views
are understandable, but not particularly customer focused.
Physical evidence
Physical evidence is the material part of a service. Strictly speaking
there are no physical attributes to a service, so a consumer tends to rely
on material cues.
There are many examples of physical evidence, including some of the
following:
Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and despatch notes).
Brochures.
Furnishings.
Signage (such as those on aircraft and vehicles).
Uniforms.
Business cards.
A sporting event is packed full of physical evidence. Your tickets have
your team's logos printed on them, and players are wearing uniforms.
The stadium itself could be impressive and have an electrifying
atmosphere. You travelled there and parked quickly nearby, and your
seats are comfortable and close to restrooms and store. All you need now
is for your team to win!
Some organisations depend heavily upon physical evidence as a means
of marketing communications, for example tourism attractions and
resorts (e.g. Disney World), parcel and mail services (e.g. UPS trucks),
and large banks and insurance companies (e.g. Lods of London).
The study said the main market for PF in 2009 was the
domestic Indian market, which raised US$ 30 billion,
accounting for 21.5 per cent of the global PF market. This was
up from US$ 19 billion in 2008.
Stock markets
Insurance
India is the fifth largest life insurance market in the emerging insurance
economies globally and the segment is growing at a healthy 32-34 per
cent annually, according to the Life Insurance Council.
The life insurance industry is expected to cross the Rs 3 lakh crore total
premium income mark in 2010-11. “This year, we are expecting a
growth of 18 per cent in total premium income. If achieved, it is
expected to cross the US$ 64.4 billion mark,” said SB Mathur, secretary
general, Life Insurance Council. Total premium income, at US$ 56.04
billion, rose 18 per cent during 2009-10, against US$ 47.6 billion in the
previous year.
Banking services