Banking Service Marketing Mix

1614 Words Sep 1st, 2011 7 Pages
BANKING SERVICE MARKETING MIX

SERVICE MARKETING MIX ELEMENT
The service marketing mix comprises off the 7p’s. These include: * Product * Price * Place * Promotion * People * Process * Physical evidence.

PRODUCT:
1. BANK PRODUCTS
(A)DEPOSITS:
savings, current, fixed etc.
(B)ADVANCES:
(1) FUND ORIENTED:
a. Term loan,
b. Clean loan,
c. Bill discounting,
d. Advances,
e. Pre-shipment finance,
f. Post-shipment finance,
g. Secured and unsecured lines of credit.

(2) NON-FUND ORIENTED:
a. Guarantees, and
b. Letter of credit
C) INTERNATIONAL BANKING:
a. Letter of credit, and
b) Foreign Currency.
D) CONSULTANCY:
a. Investment Counseling,
b. Project Counseling,
c. Merchant Banking, and
d) Tax
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Banking services can be promoted in two ways:

1. Personal Promotion: The bank marketer gets opportunity to tangibilise the product through personal selling; persuasion is more effective with direct contact. It helps in creating impulse buying.

2. Impersonal Promotion: i.e. Advertising, Publicity and Sales Promotion measures. An advertisement in banking is a promotion measures. An advertisement in banking is a promise- a promise of satisfaction to prospectus who buy the service offered by the bank.

Banks use all types of advertisement such as n ewspaper, radio, television, magazines and hoardings. Also, sales promotion device such as Point of Purchase material, brochures and advertisement specialties like ball pens, calendars, diaries, etc. Publicity is a major strength as a promotion tool than advertising as customers tend to believe a news item rather than an advertisement. Word of promotion is yet another important promotion tool as it is a better persuader and convincer than advertising and personal selling, as banking services are narrated by customer themselves. Besides, as Social welfare and Corporate Social Responsibility are considered to be an important part of banking services, the publicity measures need due care.

PEOPLE:
Banking products cannot be separated from the person (banker) who markets them. The product and the seller together constitute the