Services Marketing

Topic: SBI Services

Dhanya M L
191111
Section ‘A’
State Bank Of India – How it was started?

Tagline –

In 1921, the Bank of Bengal, Madras and Bombay were amalgamated to form the Imperial Bank of India.

In 1955, the Reserve Bank Of India acquired he controlling interests of the Imperial Bank Of India and SBI was
created by an act of Parliament to succeed the Imperial Bank of India.
 7PS of marketing mix related to SBI
1. Product Mix: 1. Product mix
1. Personal Banking 4. Loans 6. Corporate Service
Product Mix - State Bank Of India offers Services - Home, Personal and Gold - Corporate and mid-
services in various sectors such as corporate account
- Savings account, Fixed and loan
•Personal Banking, Rural banking, Recurring deposit account, - Vehicle & Educational loan groups, Project finance
•Corporate Banking, International CC account and Salary - Loans against securities etc.
Banking. account - Farm Loan – Farm
- Bank@campus – for Mechanization, Poultry, 7. International Banking
- Wholesale and Retail
students Fisheries and Diary loans, banking
2. Price Mix : Micro Credit, Jandhan Yojana. - Global Trade service
SBI’s price mix regulation is decided by 2. Investments - Construction, Office and - Corresponding banking
RBI and Indian Bank’s Association. Here - SBI Mutual fund, SBI Life Medical equipment loan - Treasury management
are some of the service charges of SBI: Insurance, SBI Gold 8. Digital Service
Bonds 5. Other Services
•Interest rates, Transaction charges, - Aadhar Seeding
- Mobile &Internet
Value Pricing, banking
3. Cards - ATM services, Cash deposit - Yono: Official app
•Mark Up Pricing, locker charges, DD a) Credit Card ,Debit Card, Services
charges, ATM usage charges - Demat Services
Travel Card - Safe deposit locker
• Charges for Cheque books,
Commission Charges, Going Rate
Pricing.
Cont…
3. Process Mix:
• Process mix of SBI is Standardized,
Customized and there is presence of speciality countersat branch
to deal with customers of a particular scheme.
• Customer involvement – Many services like ATM, banking
through digital media does not involve any bank employees of SBI.

4. People Mix :
All people directly or indirectly involved in the consumption of banking services are an important part of the
extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add
significant value to the total product or service offering.
In this mix, employees of the bank which represent the organization to its customers.
Cont…
5. Place Mix :
SBI has set up its bank branches by considering –
• Traded area, Population characteristics, Access
• Commercial Structure, Industrial Structure, Visibility

6. Promotion
• SBI follows aggressive promotional strategies
SBI promotes itself through –
• Advertisements (Print, Internet, Direct mail, Hoardings, Telemarketing),
• Word of mouth promotion,, Sales promotion, , Public relation, Personal selling
 Cont.

7. Physical evidence:
Strictly speaking there are no physical attribute to service, so a consumer tend to
rely on material cues. These are some of the some of the examples of physical
evidence:
• Internet web pages, Paperwork, Brochures, Furnishings, Reports, Signage,
Official website
• ATM Cards, Branches etc.….

Debit cards Credit cards

Search, Experience and Credence Quality -
SBI
1. Search quality :SBI promotes itself through various medium such as internet, bank branches, word of mouth.
The customer gather information for the following parameters:
• Price (Interest rates), Convivence (Distance), Timeline of services
• Other factors – Reliability, assurance responsiveness, Security on funds

2. Experience Quality – Fast service, security and safety, waiting time, customer care service, ease to access the
website, automatic update on the new product or service – these factors helps the customer to anayze the
experience quality.

3. Credence Quality – Quality of human resources, Customer care service – these are the example of credence
qualities as it is hard to analyze the satisfaction as satisfaction level varies for each individual
Gap Model - SBI
Producer’s Gap

1. Gap.1 : The listening gap (Not knowing what the customer expect)
• Inadequate marketing research orientation – Insufficient marketing research, Research not focused on service quality,
Inadequate use of marketing research.
• Lack of upward communication – lack of interaction between - management and customers, contact employee and
management
• Insufficient relationship focus: Lack of marketing segmentation, Focus on transaction rather than relationship
• Inadequate service recovery

2. Gap.2 Design and Standard Gap (Not having right service standard and design)
• Poor service design – Unsystematic new service development process, Vague and undefined service design, Failure to
connect service design to service positioning
• Absence of customer defined standards
• Inappropriate physical evidence and service scape
Cont..
Gap.3 - Performance Gap (Not delivering the service standards)
• Deficiencies in human resource policies – ineffective recruitment, Poor employee – technology job fit, Inappropriate
evaluation and compensation systems
• Failure to match supply and demand – Inappropriate customer mix, over reliance on price
• Customers not fulfilling roles – Customer lack knowledge of their responsibilities, negative word of mouth affects other
customers

Gap.4 – Communication Gap (Not matching performance with promise)

• Lack of integrated service marketing communications – Not including interactive marketing plan in communication plan,
absence of strong internal marketing program
• Ineffective management of customer expectation – Not adequately educating customers
• Over promising in advertising, personal selling and through physical evidence cues.
• Inadequate horizontal communications between sales and operations
• Customer gap – It is the gap between what customer expects and what the customer actually perceives
after the use of the product.

Customer Providers Gap Customer

expectation Perception
(Good and fast service, (Poor quality services,
minimum waiting weak sales and
time, Safe and secured (Service can be
marketing team, not measured based on the
transactions, educating customers
automatic update on expected timeline of
about services, Poor service, interactive
new services and communication
products, High risk communication
between employees providence
free rate of return, and customers,
simplicity of customers have to wait
documentation for longer period due to
procedure) higher load, during rush
hours.)