MAJOR PROJECT REPORT

ON

CUSTOMER PREFERENCE IN SELECTING A BANK

Submitted in partial fulfillment for the award of the degree of

Bachelor of Business Administration

UNDER THE GUIDANCE OF SUBMITTED BY

Batch: 2014-17
DEPARTMENT OF BUSINESS ADMINISTRATION

MAHARAJA SURAJMAL INSTITUTE

(Affiliated to Guru Gobind Singh Indraprastha University)

Recognised by UGC u/s 2(f), NAAC Accredited

C-4, Janak Puri, New Delhi, Delhi 110058
 ACKNOWLEDGEMENT

I hereby take the opportunity to express my profound sense of gratitude and reverence to all those
who have helped and encouraged me towards the successful completion of the project.

Firstly, I would like to express my thanks to GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY for giving me such a wonderful opportunity to widen the horizons of my
knowledge.

I would like to thank to my project guide Dr. for her immense guidance and valuable help in
completing the project.

Lastly I would like to thanks all the faculty members of MAHARAJA SURAJMAL
INSTITUTE for guiding me and supporting me in the completion of this project from time to
time.
 STUDENT DECLARATION

This is to certify that i have completed my project titled CUSTOMER PREFERENCE IN

SELECTING A BANK under the guidance of y in partial fulfillment of the requirement for
the award of degree of Bachelor of Business Administration at Maharaja Surajmal Institute,
Delhi. This is the original piece of work and I have not submitted it earlier elsewhere.

Date: Signature:

Place
 CERTIFICATE

This is to certify that the project entitled CUSTOMER PREFERENCE IN SELECTING A

BANK is an academic work done by i submitted in the partial fulfillment of the requirement
for the award of the degree of Bachelor of Business Administration at Maharaja Surajmal
Institute, Delhi, under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him in the project
has not been submitted earlier.

Project guide
 EXECUTIVE SUMMARY
Marketing Strategies plays an important role for banks to survive in competition and also
increase the profitability of their banks. Banks had started to perform marketing and planning
techniques in banking in order to be able to offer their new services efficiently. Marketing scope
in banking sector should be considered under the service marketing framework.

Performed marketing strategy is the case which is determination of the place of financial
institutions on customers mind. Bank marketing does not only include service selling of the bank
but also is the function which gets personality and image for bank on its customers mind.

Banks wish for increasing profit: Banks have to increase their profits to create new markets, to
protect and develop their market shares and to survive on the basis of intense competition and
demographic chance levels. All these objectives are achieved by studying various marketing and
then developing various marketing strategies.

As a student in banking field, it is even important for me to know the marketing strategies of
banks to study the scope of marketing in banks and its effect on the overall banking business and
the change it brings on the profit share of any bank.
 CONTENT

Chapter No. Topic Page No.

1. INTRODUCTION 1

2. COMPANY PROFILE 6

3. REVIEW OF LITERATURE 11

4. THEORETICAL FRAMEWORK 17

5. DATA ANALYSIS AND INTERPRETATION 30

6. CONCLUSION AND RECOMMENDATIONS 42

APPENDIX 48
 CHAPTER-1
INTRODUCTION
 INTRODUCTION

Marketing Strategies forms an integral part for any bank to help them reach out to their
customers, interact with them to know what they want and then designing the product or services
customized to serve their needs to increase customer satisfaction thereby increasing the
profitability of banking business.

Marketing Strategies also plays an important role for enhancing the sales of any product
(whether banking or any other product) by using various methods and techniques to create
awareness about such products and building a brand image which is very significant in banking
industry.

This project studies various marketing strategies adopted by CITI bank and its impact on the
growth and development of bank and also the future scope of marketing in banking industry.

A marketing strategy is a business' overall game plan for reaching people and turning them into
customers of the product or service that the business provides. The marketing strategy of a
company contains the companys value proposition, key marketing messages, information on the
target customer, and other high level elements. The marketing strategy informs the marketing
plan, which is a document that lays out the types and timing of marketing activities. A companys
marketing strategy should have a longer lifespan than any individual marketing plan as the
strategy is where the value proposition and the key elements of a companys brand reside. These
things ideally do not shift very much over time.

People frequently confuse marketing strategies and marketing plans. It is not unusual to find the
marketing strategy and the marketing plan baked together into a single document as they feed off
one another. Although the transition between the two is blurry, a marketing strategy covers the
big picture of what the business offers - the value proposition and related brand messaging. The
marketing plan is how the business will get across those key message - the platforms, the
creative, the timing, and so on. The marketing strategy may also be absorbed upwards into the
corporate value statements and other strategy documents.

A marketing strategy grows out of a companys value proposition. The value proposition
summarizes the competitive advantage a company has in its market. The value proposition
usually provides the key message for all marketing. Walmart, for example, is a discount retailer

1
with everyday low prices and its business operations and marketing revolves around that. So a
company is never creating a marketing strategy from scratch. They start with the value
proposition and distill the key marketing message(s) from that.

Once the value proposition is succinctly stated, the hard work is done. Any marketing asset, from
a print ad design to a social media campaign, can be judged by how well it communicates the
value proposition. To further the efficiency of marketing efforts, market research can be added to
the marketing strategy for the purpose of identifying untapped audiences or refining the target
consumer. Finally, an overall goal for the marketing strategy can be set, with all the subsequent
marketing plans inheriting the responsibility for delivering on it. These can be concrete, bottom
line goals like increasing sales or something less direct like climbing the ranking of trusted
providers within the industry.

Marketing plans are operational documents that get more attention because they are the day-to-
day work that a company does to sell itself to the world. That said, a marketing plan would be
meaningless without a message, a target market, and a goal - the core of every marketing
strategy.

2
 OBJECTIVE OF STUDY

The objective of my study is to understand and critically analyze the marketing strategies
of Citi bank India Ltd.

1. To find out whether marketing strategies used by banks really helps in increasing sales by
customers
2. To find out customer awareness regarding banking products.
3. To find out advertisement effectiveness.
4. To find out branding effectiveness.
5. To learn about Citi bank.
6. To learn about marketing in banking.
7. To learn marketing strategies adopted by banks.
8. To learn about marketing mix of Citi bank.
9. To learn about 7 Ps of marketing in banks
10. To analyse marketing strategies adopted by Citi bank in India.

3
 RESERCH METHODOLOGY

In the research I have found new ideas by which I can explain the views of respondents on whom
I have conducted research on the topic and on that basis I have found their views and can suggest
some decision problems and opinions by analyzing and interpreting the facts I have found.

Exploratory research: - It Is a type of research conducted because a problem has not been
clearly defined. Exploratory research helps determine the best research design, data collection
method and selection of subjects. Exploratory research often relies on secondary research such as
reviewing available literature and/or data, or qualitative approaches such as informal discussions
with consumers, employees, management or competitors, and more formal approaches through
in-depth interviews, focus groups, projective methods, case studies or pilot studies.

Research Design: It is the frame work by which we can conduct study on any topic and can
collect data and can analyze that. In this study the information was collected by using:

Exploratory Research design in the form of well-structured Questionnaire.

Personal Interview method.

Simple Convenient Sampling.

For the study two types of data was used.

Primary Data

Secondary Data

4
DATA COLLECTION:

For the study two types of data is used:

Primary Data

Secondary Data

PRIMARY DATA:

The primary Data was collected through personal interviews conducted with the help of a
structured questionnaire. The questionnaire was designed with closed ended question, which was
used to collect data from the distributors, Retailers and Customers in that particular area.

SECONDARY DATA:

The secondary data was collected by the researcher with the help of various publications and
internet, listed in the bibliography.

RESEARCH DESIGN:

A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is overall operation pattern or framework of the
project that stipulates what information is to be collected from which source and with what
procedures.

Target Audience: General public

Sampling Area: East Delhi

Instrument: Questionnaire

Sample size: 100

5
LIMITATIONS OF STUDY
Though the resources seem sufficient enough to achieve high standard for this research, still we
foresee the following limitations of study.

1. The sample was collected using sampling techniques. As such result may not give an
exact representation of the population.

2. Most of the data being secondary can be biased towards the company.

3. Shortage of time is also a reason for incomprehensiveness.

4. Most of the information was taken from secondary sources being based on previously
printed data.
5. The Sector is very vast and it was not possible to cover every nook and corner of this
sector.

6. The variability and availability of data was also a limitation.

7. The objective which we want to fulfill in this project is really good, but the major demerit
to our study is the availability of time for our search and analysis, but then also, I have
tried my level best to show a glimpse of my Research in tune with the objectives.

6
CHAPTER-2
COMPANY
PROFILE

7
COMPANY PROFILE

Citibank, a major international bank, is the consumer banking arm of financial services
giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National
City Bank of New York. As of March 2010, Citigroup is the third largest bank holding company
in the United States, after Bank of America and JP Morgan Chase.

Citibank has retail banking operations in more than 160 countries and territories around the
world. More than half of its 1,400 offices are in the United States, mostly in New York
City, Chicago, Los Angeles, the San Francisco Bay Area, Washington, D.C. and Miami. More
recently, Citibank has expanded its operations in the Boston, Philadelphia, Houston,
and Dallas metropolitan areas.

In addition to the standard banking transactions, Citibank offers insurance, credit cards and
investment products. Their online services division is among the most successful in the
field, claiming about 15 million users.

As a result of the global financial crisis of 20082009 and huge losses in the value of its
subprime mortgage assets, Citibank was rescued by the U.S. government under plans agreed for
Citigroup. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion
was invested in the corporation together with guarantees for risky assets amounting to
$306 billion. Since this time, Citibank has repaid its government loans in full.

Following its merger with the First National Bank in 1955, the bank changed its name to The
First National City Bank of New York, and then shortened it to First National City Bank in 1962.
The company organically entered the leasing and credit card sectors, and its introduction of US
dollar denominated certificates of deposit in London marked the first new negotiable
instrument in the market since 1888. Later to become part of MasterCard, the bank introduced
its First National City Charge Service credit card popularly known as the "Everything Card"
in 1967.

In 1976, under the leadership of CEO Walter B. Wriston, First National City Bank (and
its holding company First National City Corporation) was renamed Citibank, N.A. (and Citicorp,
respectively). By that time, the bank had created its own "one-bank holding company" and had

8
become a wholly owned subsidiary of that company, Citicorp (all shareholders of the bank had
become shareholders of the new corporation, which became the bank's sole owner).

The name change also helped to avoid confusion in Ohio with Cleveland-based National City
Bank, though the two would never have any significant overlapping areas except for Citi credit
cards being issued in the latter National City territory. (In addition, at the time of the name
change to Citicorp, National City of Ohio was mostly a Cleveland-area bank and had not gone on
its acquisition spree that it would later go on in the 1990s and 2000s.) Any possible name
confusion had Citi not changed its name from National City eventually became completely moot
when PNC Financial Services acquired the National City of Ohio in 2008 as a result of
the subprime mortgage crisis

Automated banking card

Shortly afterward, the bank launched the Citi card, which allowed customers to perform all
transactions without a passbook. Branches also had terminals with simple one-line displays that
allowed customers to get basic account information without a bank teller. When automatic teller
machines were later introduced, customers could use their existing Citi card.

Credit card business

In the 1960s the bank entered into the credit card business. In 1965, First National City Bank
bought Carte Blanche from Hilton Hotels. However after three years, the bank (under pressure
from the U.S. government) was forced to sell this division. By 1968, the company created its
own credit card. The card, known as "The Everything Card", was promoted as a kind of East
Coast version of the BankAmerica. By 1969, First National City Bank decided that the
Everything Card was too costly to promote as an independent brand and joined Master Charge
(now MasterCard). Citibank unsuccessfully tried again in 19771987 to create a separate credit
card brand, the Choice Card.

John S. Reed was selected CEO in 1984, and Citi became a founding member of
the CHAPS clearing house in London. Under his leadership, the next 14 years would see
Citibank become the largest bank in the United States, the largest issuer of credit cards and
charge cards in the world, and expand its global reach to over 90 countries.

9
As the bank's expansion continued, the Narre Warren-Caroline Springs credit card company was
purchased in 1981. In 1981, Citibank chartered a South Dakota subsidiary to take advantage of
new laws that raised the state's maximum permissible interest rate on loans to 25 percent (then
the highest in the nation). In many other states, usury laws prevented banks from charging
interest that aligned with the extremely high costs of lending money in the late 1970s and early
1980s, making consumer lending unprofitable. Currently, there is no maximum interest rate or
usury restriction under South Dakota law when a written agreement is formed.

Automatic teller machines

Citibank was one of the first U.S. banks to introduce automatic teller machines in the 1970s, in
order to give 24-hour access to accounts. Customers could use their existing Citi card in this
machine to withdraw cash and make deposits, and were already accustomed to using a machine
with a card to get information that previously required a teller.

In April 2006, Citibank struck a deal with 7-Eleven to put its automated teller machine (ATMs)
in more than 6,700 convenience stores in the United States. In the same month, it also announced
it would sell all of its Buffalo and Rochester, New York, branches and accounts to M&T Bank.

Over a Century in India

Citi began operations in India over a century ago in 1902 in Kolkata. Citi is a significant
foreign investor in the Indian financial market. The total capital employed in Citi's banking
and financial services operations in India including retained earnings, is in excess of $3
billion. Citi is an employer of choice in India offering consumers and institutions a broad
range of financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services and
wealth management.

As promoter-shareholder, Citi has played a leading role in establishing important market

intermediaries such as depositories, credit bureau, clearing and payment institutions

Citi operates 42 full-service Citibank branches in 30 cities

Citi is the preferred banker to 45,000 small and mid-sized companies across India

10
 Citi helped lay the foundation of the Indian software industry by establishing Citicorp
Overseas Software Limited and Iflex Solutions Limited. Citi pioneered the ITES industry
in financial services through Citigroup Global Services Limited (CGSL). Oracle acquired
Iflex in 2005 and CGSL was acquired by Tata Consultancy Services in 2008

Citi India added two more green certified buildings to its office premises in 2012 and in
2013, moved its headquarters to The First International Financial Centre (FIFC), a world-
class environmentally friendly building

Our Businesses

Citi is an employer of choice in India and serves the full spectrum of clients - from helping
India's top global corporations commit capital, make markets and manage their global cash
positions to supporting the growth ambitions of the country's small and mid-sized enterprises and
enabling individuals and households save, invest, spend, borrow and protect their money with
trust and confidence. Citi India's products and services are organized under two major segments:
Institutional Clients Group (ICG) and Global Consumer Bank (GCB).

The ICG serves Citi's best-in-class products, services and execution through Global Banking,
Global Markets, Treasury & Trade Solutions, Securities & Fund Services and Citi Research. Citi
Private Bank is also a division of the ICG. Citi has been ranked the #1 bank in Equity Capital
Markets (ECM) and M&A (Completed deals) for the year 2016. Citi has topped the ECM league
table for 8 years out of the last 10 fiscal year periods, helping clients raise over USD78 billion of
equity capital since 2005. For four years since CY2012, Citi has been the No.1 M&A advisor in
India based on Announced or Completed deals and continues to maintain a high mindshare of
strategic dialogues with Indian and international clients. Citi India has been amongst the top 2
book runners on the G3 bond league table for five years (since CY2012). In CY16, Citi helped
clients raise c. USD19.1 billion in capital across equity and debt markets.

Under GCB, Citi India offers the full range of consumer banking products and services. We serve
our clients across the entire wealth continuum as they grow in affluence. We offer solutions for
clients in every segment beginning with our path-breaking salaried proposition (CitiAtWork),
the emerging affluent (Citi banking), the new wealth builders (Citi Priority), the affluent (Citi
gold) and the High Net Worth individuals (Citi gold Private Client). We pioneered the Non-
Resident proposition in 1985 to serve the global Indians unique banking and wealth

11
management needs. With 2.42 million credit cards in force and ~13% share in card spends, and
the highest spend per card amongst major retail issuers, Citibank offers a full suite of market
leading products, across categories - premium, rewards and co-branded.

12
CHAPTER-3
REVIEW OF
LITERATURE

13
 Review of literature
"A review of the literature can have numerous different focuses, goals, perspectives, coverage
strategies, organizations, and audiences. For instance, literature reviews can focus on research
outcomes, research methods, theories, applications, or all these. Literature reviews can attempt
to integrate what others have done and said, to criticize previous scholarly works, to build
bridges between related topic areas, to identify the central issues in a field, or all these.

After reviewing different websites it has been concluded that:-

Marketing strategy is a method of focusing an organization's energies and resources on a course
of action which can lead to increased sales and dominance of a targeted market niche. A
marketing strategy combines product development, promotion, distribution, pricing, relationship
management and other elements; identifies the firm's marketing goals, and explains how they
will be achieved, ideally within a stated timeframe.
Marketing strategy determines the choice of target market segments, positioning, marketing mix,
and allocation of resources. It is most effective when it is an integral component of overall firm
strategy, defining how the organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate missions, and corporate goals.
As the customer constitutes the source of a company's revenue, marketing strategy is closely
linked with sales. A key component of marketing strategy is often to keep marketing in line with
a company's overarching mission statement.

A study on public and private sector banks and their study shows that quality gap between
expectations of consumers and perceptions of service delivered is highest in public sector banks
and lowest in private sector banks(using gap 5). Another study found out that public sector banks
are better than private sector banks.

Other studies and their findings are given below:

Joseph M. et al (1999)- The study investigates role of technology on Australian banking sector
and 300 customers were surveyed. The findings suggested that except from
convenience/accuracy and efficiency e banking services did not match with importance rating
specified by customers.

14
Lassar, et al (2000)- The study compared two models, that is , SERVQUAL and
technical/functional quality model of technology using 65 bank customers using SERPERF
SCALE. The findings revealed that technical/functional quality model was better than
SERVQUAL because latter was lacking technical dimensions. 2 models were having distinct and
unique strength for measuring service quality aspects.

Bahia, K and J Nantel (2000)- The paper suggested an alternative scale for measuring service
quality in retail banking. The study developed a scale called as Banking Service Quality Scale
which contained factors like effectiveness and assurance, access, price, tangibles, service
portfolio and reliability. This model was found to be more reliable than SERVQUAL
Sureshchandar et al(2002).- The study examined relationship between service quality and
customer satisfaction in Indian banking sector. These were found to be independent but closely
related. Both constructs vary significantly in core services ,human element, and systematization
of service delivery, tangibles and social responsibility.
Navdeep Aggarwal and Mohit Gupta (2003)- This study basically finds out the primary
dimensions and sub dimensions of service quality. Informal structured interviews are conducted
with branch managers and academicians to formulate a banking service quality model. The study
found out that service time and personal interactions are very important along with ambience for
service quality
Zhou, L( 2004)- The study analysed impact of service quality in banks on customer satisfaction
in chinas retail banking and it was found out that reliability and assurance were the primary
drivers of customer satisfaction. It was also found out that there were significant variations in
expectations and perceptions in customers
Arora S (2005)- This study analysed factors influencing customer satisfaction in public sector,
private sector and foreign banks in northern India. 300 customers were given questionnaires
which revealed that significant differences exist in customer satisfaction level of customers in
each group of banks regarding routine operation and situational and interactive factors. Foreign
banks were found to be the leaders in mechanization and automation

Debashis and Mishra(2005)-The study analysed and measured customer satisfaction in branch
services provided by nationalized banks in northern India . 1200 customers were given
questionnaires and it was found out that computerization, accuracy in transactions, attitude of
staff and availability of staff influenced customer satisfaction. Least important factor was
promotion of the products and various schemes.
15
Alka Sharma,Varsha Mehta(2005)-The study focuses on service quality of four leading banks
and their comparison.

Joshua A J, V Moli, P. Koshi (2005)- The study evaluated and compared service quality in old
and new banks using sample size of 480. The study found out that customers were satisfied in
reliability, empathy and price and for other parameters the difference between expectations and
perceptions were smaller than public sector banks

Sharma and Sharma( 2006)-The study analysed customer delight in urban consumer banking.
The study found out that customers were satisfied with loan facilities, bank environment, routine
work procedures, location ,interest rates etc. and were dissatisfied with loan formalities and
promotion through media.
Sharma S, et al (2007)-The study did a comparison of public and private banks with respect to
perceptions of customers regarding service quality. It was found out that service quality is
associated with satisfaction and there was significant difference between quality of services
provided by banks. Banks in smaller cities are far behind big cities in this regard

Tracey Dagger ,Jillian Sweeney (2007)- The study consists of qualitative research to investigate
the effect of consumption stage on service quality perceptions and then development of
hypothesis. The findings indicate the evidence that customers rely more heavily on attributes that
are search based in the initial stages of service experience and in later stages consumption
becomes important

Dr.Vannirajan&B.Anbazagan(2007)- The study tries to make an assessment of SERVPERF

scale in the Indian Retail banking sector by doing a survey in banks at Madhurai. The study
found that in public sector banks tangibles and assurance are most important and in private sector
banks reliability ,,responsiveness and tangibles are most important.

P K Gupta(2008)-Objective of this study was to find out the behavior of customers with respect
to internet banking vis--vis conventional banking. The study found out that internet banking
was found to be easier and speedier than conventional banking and trust, accuracy and
confidentiality were the most important factors here.

16
Ellaine Wallce&Leslie De Cheratatony(2009)-Study finds out the importance of ,assurance and
reliability, customer orientation teamwork etc in performance of . Also the study highlights
criticality of branch& employee teamwork for performance. Continuous commitment and service
recovery were also found important
Padhy P K and B N Swar(2009)- the paper investigated role of technology in banking and its
impact on perceived service quality in public, private and foreign banks in Orissa using a s ample
size of 300 customers. Foreign bank was found to be very close to expectations of customers
followed by ICICI and AXIS. Service quality in public sector banks was found to be very low

Sandip Khosh Hazra, Dr.Kailash Srivatava (2010)-The study was done to find out the
association between service quality, customer satisfaction ,loyalty and commitment.
SERVQUAL is used and the study finds out that in private banks dimensions of service quality,
assurance and reliability are significant for satisfaction of customers, loyalty and commitment.
The banks taken differed in these parameters.

Fulbag Singh, Davinder Kaur(2010-11)- The study combines all literature review done in
service quality And related areas in banking till 2010. It contains the works of Cronin& Taylor,
Bahia and Nantel and others on this area

Dr Ravichandran et al(2010)- The paper analyses existing study and tries to understand socio
demographic and rational profile of public retail banking consumers. It also finds out the
importance of service quality dimensions to predict the multidimensional model of behavioral
intentions among public sector consumers in India. Loyalty was found to be influenced by
operating hours, modern equipments, error free records etc. Service quality parameters like
tangibility, responsiveness and empathy dimensions were also found to be very important.
Davood Feiz et al(2010)-The study uses hypothesis to find out service quality in Iran railways. It
was found out that perceived service was found to be within zone of tolerance and service was
satisfactory. The difference between ideal level and current level was significant. There was
significant relationship between service adequacy variables and perceived value. The study in
nutshell gives an image of service quality

Sachin Mittal&Rajnish Jain(2010)-This paper is basically a literature review of banking

industry and effect of IT based services on customer satisfaction. The study highlights customer
satisfaction levels among young customers in banking industry. A survey indicates the gaps
17
between customers expectations and perception with respect to IT based banking services.
Findings indicated need to improve the IT based services for enhancing customer satisfaction.

Kumbhar, Vijay (2011)- It examined the relationship between the demographics and customers
satisfaction in internet banking,. It also found out relationship between service quality and
customers satisfaction as well as satisfaction in internet banking service provided by the public
sector bank and private sector banks. The study found out that overall satisfaction of employees,
businessmen and professionals are higher in internet banking service. Also it was found that there
is significant difference in the customers perception in internet banking services provided by the
public and privates sector banks.

Kailash M (2012)- The paper compares public and private sector banks in Vijayawada city using
SERVQUAL model. The findings revealed that private sector banks have good services to
customers and they retained customers by providing better facilities. The study finds out
importance of new products and services for banks for retaining customers.
The studies mentioned above clearly points out to the importance of having a structured study on
this where banks in different categories are compared with respect to the service quality aspect
which will help them to find out their core competencies and to capitalize on them and at the
same time find out the areas where they can improve. This is the major aim of my thesis

18
CHAPTER- 4
THEORITICAL
FRAMEWORK

19
INTRODUCTION TO BANK

In simple words, Banking can be defined as the business activity of accepting and safeguarding
money owned by other individuals and entities, and then lending out this money in order to earn
a profit. However, with the passage of time, the activities covered by banking business have
widened and now various other services are also offered by banks. The banking services these
days include issuance of debit and credit cards, providing safe custody of valuable items, lockers,
ATM services and online transfer of funds across the country / world.

It is well said that banking plays a silent, yet crucial part in our day-to-day lives. The banks
perform financial intermediation by pooling savings and channelizing them into investments
through maturity and risk transformations, thereby keeping the economys growth engine
reviving.

Banking business has done wonders for the world economy. The simple looking method of
accepting money deposits from savers and then lending the same money to borrowers, banking
activity encourages the flow of money to productive use and investments. This in turn allows the
economy to grow. In the absence of banking business, savings would sit idle in our homes, the
entrepreneurs would not be in a position to raise the money, ordinary people dreaming for a new
car or house would not be able to purchase cars or houses.

OVERVIEW OF THE BANKING SECTOR IN INDIA

Industry definition
Banking Regulation Act, 1949 defines Banking as Accepting for the purpose of lending or
investment of deposits of money from the public, repayable on demand or otherwise and
withdraw able by cheques, draft, order or otherwise.

Introduction
A bank is a financial institution that provides banking and other financial services to their
Customers. A bank is generally understood as an institution which provides fundamental Banking
services such as accepting deposits and providing loans. There are also non-banking .Institutions

20
that provide certain banking services without meeting the legal definition of a bank. Banks are a
subset of the financial services industry. A banking system also referred as a system provided by
the bank which offers cash management services for customers, reporting the transactions of
their accounts and portfolios, throughout the day. The banking system in India, should not only
be hassle free but it should be able to meet the new challenges posed by the technology and any
other external and internal factors. For the past three decades, Indias banking system has several
outstanding achievements to its credit. The Banks are the main participants of the financial
system in India. The Banking sector offers several facilities and opportunities to their customers.
All the banks safeguards the money and valuables and provide loans, credit, and payment
services, such as checking accounts, money orders, and cashiers cheques. The banks also offer
investment and insurance products. As a variety of models for cooperation and integration among
finance industries have emerged, some of the traditional distinctions between banks, insurance
companies, and securities firms have diminished. In spite of these changes, banks continue to
maintain and perform their primary role - accepting deposits and lending funds from these
deposits.

HISTORY OF BANKS IN INDIA

Banking in India in the modern sense originated in the last decades of the 18th century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786
and since defunct.

The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East India Company.
The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India in 1955. For many years the presidency banks
acted as quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935.

In 1969 the Indian government nationalized all the major banks that it did not already own and
these have remained under government ownership. They are run under a structure known as
'profit-making public sector undertaking' (PSU) and are allowed to compete and operate

21
as commercial banks. The Indian banking sector is made up of four types of banks, as well as the
PSUs and the state banks, they have been joined since the 1990s by new private commercial
banks and a number of foreign banks.

Generally banking in India was fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development with things like
microfinance. This also included the 2014 plan by the then prime minister to bring bank accounts
to the estimated 40% of the population that were still unbanked.

During the period of British rule merchants established the Union Bank of Calcutta in 1829, first
as a private joint stock association, then partnership. Its proprietors were the owners of the earlier
Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace
these two banks. In 1840 it established an agency at Singapore, and closed the one at Mirzapore
that it had opened in the previous year. Also in 1840 the Bank revealed that it had been the
subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845 but failed in
1848, having been insolvent for some time and having used new money from depositors to pay
its dividends.

The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India, it was not the first though. That honor belongs to the Bank of Upper India, which
was established in 1863, and which survived until 1913, when it failed, with some of its assets
and liabilities being transferred to the Alliance Bank of Shimla.

Foreign banks too started to appear, particularly in Calcutta, in the 1860s.

The Comptoird'Escompte de Paris opened a branch in Calcutta in 1860, and another
in Bombay in 1862; branches in Madras and Pondicherry, then a French possession,
followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in
India, mainly due to the trade of the British Empire, and so became a banking center.

22
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881
in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in
1894, which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
and other infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and
a number of Indian joint stock banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally undercapitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon
to observe, "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and political
figures to found banks of and for the Indian community. A number of banks established then
have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of
Baroda, Canara Bank and Central Bank of India.

INTRODUCTION TO MARKETING

Marketing Is an important social economic activity. It is an essential activity for the satisfaction
of wants and for raising social welfare. Marketing links producers and consumers together for
mutual benefits. It facilitates transfer of ownership of goods and services
According to William Stanton, Marketing is a total system of business activities designed to
plan, price, promotes and distribute want satisfying products to target markets in order to achieve
organizational objectives.
According to Philip Kotler, Marketing is a human activity directed at satisfying needs and wants
through exchange process.

23
MARKETING IN BANKING
Marketing approach in banking sector had taken significance after 1950 in western countries and
then after 1980 in Turkey. New banking perceptiveness oriented toward market had influenced
banks to create new market. Banks had started to perform marketing and planning techniques in
banking in order to be able to offer their new services efficiently .Marketing scope in banking
sector should be considered under the service marketing framework. Performed marketing
strategy is the case which is determination of the place of financial institutions on customers
mind. Bank marketing does not only include service selling of the bank but also is the function
which gets personality and image for bank on its customers mind. On the other hand, financial
marketing is the function which relates uncongenitalies, differences and non similar applications
between financial institutions and judgment standards of their customers .The reasons for
marketing scope to have importance in banking and for banks to Interest in marketing subject can
be arranged as: Change in demographic structure: Differentiation of population in the number
and composition affect quality and attribute of customer whom benefits from banking services.
Intense competition in financial service sector: The competition became intense due to the
growing international banking perceptiveness and recently being non limiting for new enterprises
in the sector. Increase in liberalization of interest rates has intensified the competition. Banks
wish for increasing profit: Banks have to increase their profits to create new markets, to protect
and develop their market shares and to survive on the basis of intense competition and
demographic chance levels.
The marketing comprehension that are performed by banks since 1950 can be shown as in
following five stages:
1. Promotion oriented marketing comprehension
2. Marketing comprehension based on having close relations for customers
3. Reformist marketing comprehension
4. Marketing comprehension that focused on specializing in certain areas
5. Research, planning and control oriented marketing comprehension

Bank marketing evolution

The stages of the bank marketing evolution are the following: -during the 70s, many banks did
not use the marketing in their activity, their management being market oriented. Once the

24
competition intensified, some of the banks have started to use the marketing, launching some
extremely expensive advertising campaigns. The banks were counting on the fact that they could
fool the customers by various promotional activities, by which they could hide the negative
aspects related to their own banking services. The first failures of the advertising campaigns
proved to the banks that on the one hand these campaigns could ruin them, and on the other hand
that the main problem did not consist in attracting new customers, but in keeping them. During
this period, the advertisement was the most important marketing activity performed by the banks;
-during the 80s, the banks developed programs to support the business, they promoted the bank
marketing on a large scale, engaging all its constituent aspects: establishing and organizing the
offer of products/services to satisfy the existing needs; promoting and orientating the
products/services towards responding to the considered requirements of the business. It is a time
when the banks no longer accentuate the trade, the short term sale of banking products, their
volume increase; instead they focus on the perennial value of the customer, pursuing the winning
of new customers. -during the 90s, the banks focused their efforts in order to create some
superior banking products/services, on the one hand following the assurance of the customer
needs satisfaction, and on the other hand establishing lasting relationships with them. During
this period, the financial sector and implicitly the banking sector experiences a significant growth
in the developed countries. -during the 21st century, the banks act in a dynamic environment,
where the market and the other factors (components of the political, economical, social, juridical,
cultural, demographical and technological environment) frequently raise problems, forcing them
to additional efforts or offering them opportunities that need to be fructified as well as possible;
they need to integrate their current actions to their long term objectives which were previously
determined by the bank marketing policy.
Adapting the banking institutions activity to the environment requires a continuous tracking of
the structural quantity and quality changes which the environment registers.In order to
successfully achieve the purpose of the marketing process, the banks should: -perform analyses
in order to know the bank customers to the highest possible extent, so that the offered banking
products/services match their needs and the sale is ensured. That is why the bank needs to
involve as actively as possible in their customers activities, by financial and logistical support,
specialty consultancy and assistance. -perform studies, systematical analyses of the financial
market identifying the profitable markets, the new capital flows on the financial markets, the new
agencies, intermediaries and entrepreneurs (sellers) acting on these markets, their operations and
performances. -define and apply their strategies in their relation with the market, efficiently using

25
their own resources in order to create new banking products/services and to diversify them
according to the consumers wishes and expectations.

THE 7 PS OF MARKETING MIX

The First 'P' - Product
First among the Ps of bank marketing is product mix. Product stands for both goods and service
combination offered to the public to satisfy their needs. In the highly regulated banking industry
all offered the same type of products. Actually the bank takes little time and no additional
investment to develop a financial product or service. But the drawback is that no brand can be
marketed with unique selling proposition for long because it can be copied immediately. Thus it
is better to focus on some selected ideas relating to products, which have immediate operational
utility as well as feasibility on banks. In the evolution of bank products, the products can be
categorized into three groups. They are Core products, Formal products, and augmented product.
Core products are those products, which define the business. For a bank, some of the core
products are Savings Bank Account, Current Account, Term deposit, Recurring deposit, Cash
credit, Term loan, overdraft and the like. This has two basic characteristics. Firstly, they define
the business of a commercial bank that is whatever banking service was extended these core
products are there. Second is that, core products do not have strong marketing content, that is, the
product must be specifically designed in view of the needs of customers in well defined
homogeneous market segment. Since core products, are used as basic tools of commercial
banking and serve the full range of customer segments or at least a large number of them, their
marketing content cannot be rated as very high. But these core products are indispensable to any
business s*~F. furthermore, these
products provide a basis for the development of more sophisticated and marketing oriented
products.

The Second 'P' Price

Price in the case of service, different terms are used for different services like fees for legal
service, fare for transport service, commission agency services, premium for insurance service,

26
interest for the use of money. Two characteristics, which have great impact on determining the
prices of services are perishability and intangibility. In banking industry, price is the amount of
money that will determine the exchange rate of bank product or services between the bank and
customers. Price determination of the banking products or services is subject to regulation either
by the Government or by the Reserve Bank of India. It is a unique feature of the bank price that
the products are mostly designed by the banker while the price is determined by the RBI and
Government of India Due to this, there is uniformity in the price of bank product through out
India. Hence the chance of competition on the basis of price is almost nil. As a part of the
economic liberalization programme of the Government, pricing in Indian banking is steadily
being deregulated. Successive credit policy pronouncement of RBI during the last few years has
already brought about substantial deregulation and flexibility for banks in evolving their pricing
strategy. Soon after the announcement of the RBI's credit policy in October 1994, ICICI bank
announced a unique price structure for its deposits rate. The Bank offered 10 per cent for deposit
of '6' months to 2 years and 8 per cent for 3 years maturity. Even the area of ancillary service
charges the raised pricing structure announced by Indian Bank Association aroused lot of debate.
Even though complete deregulation of the price regimes still to materialize, price is fast
becoming a strategic tool for bankers for their marketing.

Third 'P' Place

The most important element in distribution strategy relate to this issue of location of the banks to
render their service. Distribution means delivery of the products or service at the right time and
at the right place. The place where the banking products or service are delivered is an important
element in bank marketing. The place strategy of Indian banks has been on the basis of too many
parameters. Prior sanction from RBI, and responsibility of banks towards development of
banking habit in remote unbanked areas have been some of the important given parameters. So
from the marketing stand point, place strategy is not fully positive to Indian baulks. Some of the
major trends in this are the branch licensing policy of RBI is already a thing of the past. This was
one of the first policy responses of the government to the Narasimharn Committee Report on
Financial system 1991branch expansion on the basis of social banking consideration has
achieved its objectives substantially. Compared to any nation in the world, India has the largest
bank branch network. Practically it covers every nook and corner of the country. Thirdly, banks
in India have been experimenting with a few strategies relating to plant:. That is, extending their
reach through means other than branch expansion as well. The first such strategy is the concept
of extension centre, satellite office etc. Secondly, the concept of special counters for certain
27
customer segments for example, for pensioners, non-resident Indian, etc. Thirdly mobile office is
also a partof current banking practice. Through this, the banker came to the doorstep of the
customers. Fourthly, technology has also been deployed by banks for implementing their place
strategy. Home banking and ATM are in Indian banking. Fifthly, a recent innovation is that of
strategic alliance. This trend has been set up in motion mainly by the newly set-up private banks
in order to overcome the drawback arising out of the limited branch network. Some of these
banks entered into strategic alliance with already established banks having wide branch network.
One such alliance is between Global Trust Bank and Vijayabank.

The Fourth 'P' Promotion The promotion is to inform and remind individuals and persuade
them to accept, recommend or use of a product service or ideaz9.Promotion is a demand
stimulating aid through communication. Any marketing promotion campaign has two objectives.
'They are to inform the prospective customer and then to persuade him. Due to the inherent
intangible nature of senesces, the customer of banking service relies more on subjective
impression rather than concrete evidence. When a bank comes out with a new product, it makes
its target customer segment aware of it only through marketing promotion. It may be in various
forms like press advertisement, sales campaign, word of mouth, personal interaction directly
mailing. Making the customer may be enough if the product is unique or in great demand. But
this may not be so always. So the second fundamental objective of a promotion campaign is to
persuade the customer to buy the product in preference to other similar products available in the
market. Now this persuasion too could be in different ways like by working on an emotional plan
by an objective of presentation of benefit of the product by identifying the product with some
strong need of customers. Along with the above fundamental objective, it also has some
subsidiary objectives like image building of an organization, promoting the growth of a newly
started industry. The promotive effort for banking services consists of both personal and
impersonal devices. Personal device is purely subjective in nature and it differs from person to
person. Impersonal promotion can be through advertising, publicity and sales promotion.
Personal selling is the responsibility of the bank staff. Impersonal selling should be done by the
respective banks and their association like Joint Publicity Committee for public sector banks and
Indian Bank Association. A study conducted by Dr. Rajagopal reveals that apart from savings
bank account and fixed deposit account, the awareness of other deposit schemes are relatively
less amongst rural savers. Among lending schemes, gold loans, agricultural loans and
Government sponsored lending schemes are very popular in the rural areas.

28
Fifth 'P' Process.
The process is crucial to the bank marketing strategy. It givesvalue to the buyer and an element
of uniqueness to the product. It isvery significant because it provides competitive advantage to
the bank. The importance of process in bank marketing strategy is based on 'value chain concept'
given by Michael Porter. The concept basically stresses close attention to all the organizational
activities which go into marketing the final product to the customer. In the banking context,
atypical value chain would encompass all activities right from the product conceptive stage down
to its marketing at branch level. All these ultimately leading to the customer's satisfaction with
the product he has purchased. The value chain concept emphasizes that all these organizational
activities have to be closely monitored and reviewed as an ongoing basis and all those activities
which do not add value to the product used to be reviewed and modified. It is also useful in
focusing attention on those organizational activities or processes which give uniqueness to the
product. And the element of uniqueness in the product is a basic condition acquiring competitive
advantage.

Sixth 'P' People

The Indian banking industry is not an exception to the modem forces of changes and
cornpetition. Many new ideas and strategies have been introduced since the introduction of the
new economic policy. Like any other service industry, banking is a labour intensive industry .The
human factor plays a pivotal role in the running of the business. With the presence of strong
human content in banking: business no idea would even get implemented unless it is taken up
wholeheartedly. People are crucial to the success of any business. It is far more so in a service
oriented industry like banking. The point being, stressed here is not simply the need of human
approach towards people in banks. It is also not only about making available necessary
knowledge and skill for servicing the customer better, but the central point stressed here is that
there is a need to market banking products to own grassroots level people before marketing these
products effectively to customers. Each employee in a bank irrespective eof his position in the
bank hierarchy is both a recipient and provider of service. Unless each employee extends support
to his colleagues and also receives support from them, workflow will get obstructed and the
victim will be the customer. In other words to satisfy a customer, people who participate this
must be right and apt ones.

The Seventh 'P' Physical evidence

29
Physical evidence is the strategic tool for the bank marketer. Banking products are intangible.
Tangibilising the intangible commodity is a major challenge to the bank marketer. One among
the important methods is the upkeep of branch premises and interior decor. This is relevant not
only from the point of view of physical evidence but also for tangibilization strategy. Another
strategy is imaginative designing of bank stationery used by customers. Product packaging could
be another tangibilization strategy and marketers called it as separate 'P' of marketing strategy.
Packaging in banking products could take many ways for instance an attractively designed
product brochure or a catchy brand name which a customer can easily understand or pictorial
design which can represent a particular product .In the case of these seven elements, they are not
of much use in isolation. But an appropriate blend is the right way for marketing effort. It is a
fact that no two classes of customers are alike'. Their expectations and intentions are entirely
different when a customer is approaching the bank. A middle-income man on the verge of
retirement needs regular sources of income to supplement his income. So hisexpectation is
monthly income deposit scheme. The investor cannot bewooed with anything less than the best
market rate for his funds, for hima reinvestment scheme earning interest has to be designed and
delivered.This is equally true for loaning and subsidiary services as well. Since it would not be
flexible to expand business to cover all segments under a branch, some segments should be
singled out for special coverage. These segments and their potential value will constantly
undergo changes and the banker must be on guard to ensure that nonviable worthwhile business
slips through his hands due to his indifference, cashier etc. which is really a time consuming
procedure. Under the teller system a cashier is designated as teller who makes payment of
cheques to specified amount immediately on presentation of a cheque by the payee .Another
service provided by modem bank is safe deposit vaults .Most of the banks provide the facility of
safe deposit vaults to the public at their branches.

ADVERTISING
Banks have too many goals which they want to achieve. Those goals are for
accomplishing the objectives as follows in a way that banks develop advertising campaigns and
use media.
1. Conceive customers to examine all kinds of services that banks offer.
2. Increase use of services.
3. Create well fit image about banks and services.
4. Change customers attitudes

30
5. Introduce services of banks
6. Support personal selling
7. Emphasize well service
Advertising media and channels that banks prefer are newspaper, magazine, radio, direct posting
and outdoor ads and TV commercials. In the selection of media, target market should be
determined and the media that reach this target easily and cheaply must be preferred.
Banks should care about following criteria for selection of media.
1. Which media the target market prefer
2. Characteristics of service
3. Content of message
4. Cost
5. Situation of rivals
Ads should be mostly educative, image making and provide the information as follows:
1. Activities of banks, results, programs, new services
2. Situation of market, government decisions, future developments
3. The opportunities offered for industry branches whose development meets national
benefits.

BRANDING
Branding refers to the commitments made by the commercial organization to its customers about
certain aspects. Brand Equity refers to a set of brand related assets and liabilities linked to a
brand, the name and symbol of which mean an addition or subtraction for the value provided by
the producst or service to that organization or its customers.

Brand Image is commonly referred to as reserving a slot in the customers mind in terms of an
organizations products or brands over a period of time

When we talk about branding for banks it is a new concept as compared to manufacturing and
other service industries. However during the recent times, banks seem to have realized the
importance of their products and services. Unlike other service which makes it difficult for the
banks to build a brand that is common to all customer groups. Once the strong brands are built
they would offer many competitive advantages.

31
32
 CHAPTER-5
DATA ANALYSIS
AND
INTERPRETATION

33
 DATA ANALYSIS

1. Persons having bank account in different banks

Banks No. of persons in %

HDFC 21

ICICI 23

SBI 14

Citi bank 8

Other 34

21
34 HDFC
ICICI
SBI
Citi bank
23 Other
8
14

Interpretation : The above diagram shows that majority of Indians have accounts in
other than 4 major Indian banks i.e. HDFC,ICICI,SBI. 34% of people have accounts in
Banks other than above mentioned banks while 8% of people have accounts in Citi Bank

34
 2. Importance of brand image in banking

Level of Image No. of persons in %

Low 5

Moderately 24

Highly 38

Very Highly 33

33 24
Low
Moderate
Highly
Very Highly

38

Interpretation-The above diagram shows that brand image plays high role for customers for
selecting banks. Brand image plays a vital role in banking sector. Data has shown that 71%
people give importance to brand image of the banks.

35
 3. People who have seen advertisement of their banks

Seen No. of persons in %

Yes 86

No 14

14

Yes
No

86

Interpretation: The above diagram shows that majority of people have seen advertisements of
the banks in which they hold their account. Advertisements are very important in banking as
people would not be able to know about the banks. 86% of people have seen their banks
advertisements.

4. Types of advertisements
36
Types No. of persons in %

TV Commercials 51

Print Ads 22

Hoarding 9

Online Advertising 18

18

TV Commericals
9 Print Ads
51
Hoardings
Online Advertising

22

Interpretation: The above diagram shows that TV Commercials is the major source of
advertisement for banks while Print Ads and Online Advertisement also plays a significant role
for advertisement. 51% of people have seen TV commercials of their banks.18% have seen their
banks advertisements on the internet.

37
 5. People who have seen advertisements of other banks except for
their bank

Seen No. of persons in %

Yes 91

No 9

Yes
No

91

Interpretation: The above diagram shows that people have seen advertisements of banks other
than the bank in which they hold their account. Major portion of respondents have seen others
banks ads. Around 91% of people have seen other banks ads.

38
 6. Advertisements of other banks except for your bank(specific
names)

Banks No. of persons in %

HDFC 33

SBI 24

Citi bank 2

ICICI 26

Other 15

26
33 HDFC
SBI
citi bank
Other
15 ICICI

2 24

Interpretation: Majority of people have accounts have seen advertisements of other Banks and
then HDFC Bank and SBI Bank respectively. 33% People have seen HDFC bank ads and 24%
people have seen SBI ads. 26% people have seen ICICI bank ads.

39
 7. Bank advertisement which you can recall easily

Banks No. of persons in %

HDFC 33

ICICI 37

SBI 24

Citi bank 2

Other 4

33 HDFC
SBI
37
Citi bank
ICICI
Other

2 24

Interpretation: The above diagram shows that the most easily recallable advertisements are
from ICICI bank. The other bank which use attractive advertisement is HDFC bank and then
comes SBI.33% people are able to recall the ads of hdfc bank ads, 37% people are able to recall
ICICI banks ads.

40
 8. Importance of brand in selecting a bank

Level of importance No. of persons in %

Low 3

Moderately 28

Highly 38

Very Highly 31

31 28
Low
Moderately
Highly
Very Highly

38

Interpretation-The above diagram shows that branding plays an important role for customers
while selecting a bank as most of the people have chosen branding option as VERY HIGHLY
played role while selecting a bank. 69% of respondents have given high importance to brand of
banks. They chose banks whose brand image is good and trustworthy.

41
42
 9. Customer preference while selecting a bank

Characteristics No. of persons in %

Size of the Bank 18

Branding 34

Service 24

Product 24

18
24

Size of The Bank

Branding
Service
Product
24 34

Interpretation-The above diagram shows that branding plays the most important role for
customers while selecting a bank, Service and Product plays equal role for customers for
selecting a bank.34% of respondents have given preference to brand image of the banks. 48%
have given preference to products and services and 18% have given preference to size of the
banks.

43
 Technologically advanced banks

Banks No. of persons in %

HDFC 27

ICICI 38

SBI 8

Citi bank 17

Other 10

10
27
HDFC
17
ICICI
SBI
citi bank
8
Other

38

Interpretation: The above diagram shows that ICICI bank is the most technologically advanced
bank amongst all other banks.The other bank which follows this trend is HDFC and SBI bank.
38% people thinks that ICICI is the most technologically advanced bank. 27% people thinks
HDFC is the most technologically advanced bank.

44
 Importance of advertisement while selecting a bank
Level of Importance No. of persons in %

Low 9

Moderately 24

Highly 34

Very Highly 33

33
Low
24
Moderately
Highly
Very Highly

34

Interpretation: The above diagram shows that advertisement plays very important role for
customers while selecting a bank as most of the customer agreed that they go for advertising for
selecting a bank.77% people give preference to the banks that have good advertising strategies.
People think that time to time ads keeps updated about the new offers of banks.

45
 CHAPTER-6
CONCLUSION AND
RECOMMENDATIONS

46
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS

FINDINGS

1. It is observed that people consider brand image as an important element while opening an
account in any bank.
2. The brand image of Citi bank is more developed than other banks.
3. Advertisement has created awareness among people regarding banking services. It has
also helped build brand image of the banks.
4. Citi bank is considered technologically advanced than other banks.
5. Most of people are having accounts in HDFC and ICICI banks and other people are
having account in public sector banks.
6. Brand image plays a major role in banks. People give more preference to the banks
whose brand image is high.
7. People give importance to brand while selecting a bank.
8. Major customers give preference to products and services of the banks.
9. People give importance to advertisements of the banks.

CONCLUSION

From the analysis conducted, it could be concluded that advertisement and branding plays an
important role for banking business to sustain and survive in the competition and also for the
overall growth and development of the bank.

Citi bank has good brand image by using the 7 Ps of Marketing Mix in an efficient manner and
developed different marketing techniques from other banks.
Citi bank has developed many innovative products to develop better brand image and also made
technological innovations to ease out banking procedures and thereby increase customer
satisfaction.
Through Social Strategy it maintained continuous relationship through various social networking
sites thus getting acquainted with customer wants and needs.
Citi bank used various sources of media to promote and advertise their products and create
customer awareness regarding the banking products.
SUGGESTIONS

47
 1. ICICI Bank and HDFC bank has to improve its brand image, i.e. it has to position itself
in the minds of prospects in a better way in comparisons to others.
2. It should provide better career opportunities for the retention of its potential advisors.
3. Further it has to provide training to its recruited advisors by good and efficient training
methods, which might be a little bit customized if needed.
4. It should more emphasize in advertising, as it is the most powerful tool to position ant
brand in the mindsets of customers.
5. The role of advertising has been very limited in collecting deposits. This needs to change,
for more advertising brings more deposits.
6. To increase the goodwill of the corporation further in the minds of the depositors. Citi
bank should send greetings to its depositors on occasions as festivals. Small New Year
gifts such as cards, calendars, diaries, etc can also be sent to the depositors who place a
somewhat large deposit with the corporation.

MARKETING MIX OF CITIBANK

PRODUCTS IN THE MARKETING MIX OF CITIBANK

Citibank has successfully managed its tangible and intangible resources and created competitive
advantages in the bank sector. They have introduced new financial products with improved
technology and better services. At the beginning, the bank started with a limited amount of funds
and its products included investments and insurance policies.

Later as part of their expansion plans, the bank started offering shares and loans. It also created a
business card that enabled money transactions and various other types of methods for payments.
This later on came to be known as the debit card and Citibank was one of the first banks to
introduce it.

Citibank has the distinct advantage of being the first bank to introduce the online systems in
order to ease the burden of their employees, reduce the paper costs and maximize the
communication speed with the customers. The various banking products of Citibank are

Personal Banking

Global Banking

48
 Corporate Banking includes trade solutions and cash management.

SME Banking

Cards include prepaid card, add-on credit card, corporate card, travelling card, fuel card,
lifestyle card, shopping card and debit card.

Investment Banking includes mutual funds; demit account, deposits, financial planner
and an account for Equity brokerage.

Insurance includes life insurance, accident and health insurance.

Consumer banking includes savings account, current account, recurring account, fixed
deposit account.

Loans include ready credit, personal loan, and loan against the securities and on the credit
card.

Mortgages include home loans and loan against property.

Internet Banking

Wealth management

Finance

The online facilities that the bank offers are-

Online services include Citi Mobile, Internet Banking, Citi Alert, Tablet Banking and
statement via email.

Online Payments include online remittance of taxes, Online Transfer of Funds, Online
payments of Credit Cards through their account in Citibank and electronic payment
through other accounts and payments of other bills.

49
PLACE IN THE MARKETING MIX OF CITIBANK

Citibank is a worldwide-recognized global bank with its network in nearly thirty six countries of
the world with approximately 3,777 branches and growing. It has nearly 26% of its total
branches in one single country that is United States. The country alone generates 51% of the
revenues for the bank. The banking sector of Latin America generates 25% of the total revenues;
Europe, Africa and Middle East together generate 4% of the total revenues and Asia 20% of the
revenue.

Citibank has created a well-organized structure and strategies to gain new customers and
maintain its loyal customers. It has a managing team that works closely with all regional offices
so that the implementation of all services is possible. They have well-trained employees to
deliver satisfactory services. Citibank has also opened various ATMs at important locations to
gain more satisfied customers.

However, what remains to be seen from Citibank is further foray in developing economies. The
presence of Citibank is very less even in developing economies like India and China. Although it
portrays itself as a premium banker, the presence of branches and more ATMs is important for
further expansion of Citibank.

PRICE IN THE MARKETING MIX OF CITIBANK

In the banking sector, much of the pricing and the interest rates are governed by regulatory
bodies. Even after that, Citibank is considered to have a premium policy because its minimum
balance amounts as well as account opening charges are generally higher than other banks.

Its policies also depend on the perception of the general people and the feedback provided by
them. The pricing strategy and equation of the bank differs in accordance with different region
and country and the approach of public. The target of the bank is to enter new markets and
increase its profit.

They have a flexible pricing policy that changes according to internal and external factors.
Changes in finance market are also one of the main forces behind pricing policies. The bank has
offered numerous financial services to balance its value-added pricing policies.

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PROMOTION IN THE MARKETING MIX OF CITIBANK

Citibank generally uses Value based communication and tries to communicate the values of
reliability and deliverability to its customers through ATL and BTL medium. In order to target
the customers the advertisements are shown in internet, newspapers, billboards and even
television.

The visual and print media have always been utilized by Citibank to its best advantage. The
advertisements especially mention the achievements of the bank and its modern facilities, along
with its positive approach. Citibank has been a major sponsor for some of the famous sports
events and teams.

Surprisingly, Citibank uses very few brand ambassadors across the world as compared to any
other bank. Most of its advertisement focuses on communicating value to the customer as well as
for introduction of product and for brand recall. However, Citibank needs to push its promotion
mix even more to get better results in developing economies.

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ANNEXURE

52
BIBLIOGRAPHY

BOOKS

1 Hampton John J., Financial Decision Making, Prentice Hall of India, New Delhi, 2003

2 Srivastava R.M. and Nigm Divya, Management of Indian Financial Institutions, New Delhi,
2000

3 Rustogi R. P., Financial Management, Galotia Publishing Company, New Delhi, 2002.

4 Ravi M. Kishore, Cost Accounting and Financial Management, New Delhi, 2002.

5 Maheshwari Dr. S.N., Financial and Cost Accounting, Sultan Chand and Sons, New Delhi,
2000.

6 Bandhoopadhay Tamal, Banking Annual, October, 2003.

7 Ram Mohan T.T., Environment and Political Weekly, March, 2004, Volume XXXXIX no 12.

8 Marketing Management: Twelfth Edition Philip Kotler & Kevin Lane Keller

WEBSITES

1. http://marketingmix.co.uk/

2. https://en.wikipedia.org/wiki/marketing_mix

3. http://www.marketing91.com/marketing-mix-of-citibank/

4. http://www.mbaskool.com/marketing-mix/services/16879-citibank.html

5. https://www.ukessays.com/essays/marketing/the-citibank-strategy-using-ebusiness-
marketing-essay.php

6. http://www2.aueb.gr/users/esaopa/courses/marketing%20mix.pdf

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QUESTIONNAIRE
Dear SIR/MADAM, I am conducting survey on Citi Bank. I shall be very thankful to give
your few minutes to me for answering my few questions below.

Name: _____________________________________
Add: ________________________________________
Contact no: ____________________________________
Gender: Male Female

E-mail Id: _______________________________________________________

Age Group: 1825 2535 35 45 4555 55+

Occupation:
Journalist
Student
Professional
Retired Person
Technical expert
Other, please specify:________________

Income: 1 laces 13 laces 35 laces 57 laces 710 laces

+10 laces

54
(1) In which bank do you hold the account?
a HDFC
b ICICI
c SBI
d Dena
e Other

(2) What do you think how much brand image plays important role for banks?
a. Low
b. Moderately
c. Highly
d. Very Highly

(3) Have you ever seen any advertisement of your bank?

a) Yes
b) No

(4)If yes, then what kind of advertisement?

a) TV Commercials
b) Print Ads
c) Hoarding
d) Online Advertising

(5)Have you ever seen the advertisement of any other bank?

a) Yes
b) No

(6) If yes, then which?

a HDFC
b SBI
c Dena
d Other

(7)out of advertisements you have seen, which bank advertisement can you recall easily?
a) HDFC
b) ICICI
c) SBI
d) Dena
e) Other

55
(8)How much does branding role play for you whole selecting a bank?
a) Low
b) Moderately
c) Highly
d) Very Highly

(9)From the following option which one matters you the most while selecting a bank?
a) Size of the bank
b) Branding
c) Service
d) Product

(10)Amongst the following which bank is more technologically advanced?

a HDFC
b ICICI
c SBI
d Dena
e Other

(11)Does advertisement really plays an important role in selection of bank?

a Low
b Moderately
c Highly
d Very Highly

56