![33
Retail banking is banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other banks. Services offered include savings and
transactional accounts, mortgages, personal loans, debit cards, and credit cards.
Wholesale banking is the provision of services by banks to the likes of Mortgage Brokers,
large corporate clients, mid-sized companies, real estate developers and investors,
international trade finance businesses, institutional customers (such as pension funds and
government entities/agencies), and services offered to other banks or other financial
institutions.
Project finance is the medium- to long-term financing of infrastructure and industrial
projects based upon the projected cash flows of the project rather than the balance sheets of
the project sponsors.
Special assets management
1. The management of a client's investments by a financial services company, usually an
investment bank. The company will invest on behalf of its clients and give them
access to a wide range of traditional and alternative product offerings that would not
be to the average investors.
2. An account at a financial institution that includes checking services, credit cards,
debit cards, margin loans, the automatic sweep of cash balances into a money market
fund, as well as brokerage services.
An International Banking Facility (IBF) is a separate account established by a U.S.
bank, or a US branch/subsidiary of a foreign bank, or an Edge Act Corporation in the
United States to offer services to only non-US residents and institutions. The services
offered include deposit and loan services. (Note, an IBF is not necessarily a separate
legal entity.)
One Corporate Centre is an office skyscraper in Pasig City, Metro Manila,
Philippines. It is the 13th-tallest building in the country and Metro Manila as well
with a height of 202 meters (662.73 feet) [3] from ground to tip of architectural
antenna. The building has 45 floors above ground including 7 floors for commercial
purposes, and 9 basement levels for parking](https://image.slidesharecdn.com/akshatmproj9-171211130246/85/STUDY-OF-ICICI-MARKETING-STRATEGIES-OF-FINANCIAL-PRODUCTS-by-AKSHAT-MAHENDRA-33-320.jpg)
STUDY OF ICICI MARKETING STRATEGIES OF FINANCIAL PRODUCTS by AKSHAT MAHENDRA
- 1. 1 PROJECT REPORT ON STUDY ON ICICI’s MARKETING STRATEGIES OF FINANCIAL PRODUCTS BACHELOR OF COMMERCE (BANKING & INSURANCE) SEMESTER – V (2017-2018) SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF DEGREE OF B.Com (Banking & Insurance) BY AKSHAT MAHENDRA ROLL NO. - 32 BIRLA COLLEGE OF ARTS, SCIENCE & COMMERCE MURBAD ROAD, KALYAN (W)
- 2. 2 BIRLA COLLEGE OF ARTS, SCIENCE & COMMERCE, KALYAN (Conducted by Kalyan Citizens’ Education Society) (Affiliated by University of Mumbai) BACHELOR OF COMMERCE (BANKING & INSURANCE) CERTIFICATE This is to certify that AKSHAT MAHENDRA OF T.Y B.COM (BANKING & INSURANCE) Semester V (2017-2018) has successfully completed the project on “STUDY ON ICICI’s MARKETING STRATEGIES OF FINANCIAL PRODUCTS” under the guidance of Prof. Anil Tiwari. PROJECT SUPERVISOR: COURSE CO-ORDINATOR: INTERNAL EXAMINER EXTERNAL EXAMINER PRINCIPAL
- 3. 3 DECLARATION I, AKSHAT MAHENDRA student of TY B.COM(BANKING & INSURANCE) Semester-V (2017-2018) hereby declare that I have completed the project on “STUDY OF ICICI’s MARKETING STRTEGIES ON FINANCIAL PRODUCTS”. I further declare that the information imparted is true and fair to the best of my knowledge. SIGNATURE NAME :- AKSHAT MAHENDRA ROLL NO :- 32
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- 5. 5 ACKNOWLEDGEMENT I hereby express my heartiest thanksto all sources whohave contributed to the making of this project. I oblige thanks to all who supported, provided their valuable guidance and helped for the accomplishment of this project. I am thankful to Mumbai University for giving me such a challenging task to explore the urbanization which includesnot only thinking and analyzing various facts and updatesaboutreal work, our principal Dr. NARESH CHANDRA and the course coordinator for having such wonderful course. I am very much grateful to my project guide Prof. ANIL TIWARI who in spite of busy schedule spent valuable time to guide me and helped in completion of this project. I also extent my hearty thanks to all my family members, friends and all the well-wisher.
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- 8. 8 Project synopsis BACKGROUND OF THESTUDY ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI
- 9. 9 and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. SIGNIFICANCE OF THE STUDY The proposed study provides the much-needed information about the marketing strategies which is collected by way of primary data from the source itself i.e. the employees. The study will highlight the application of marketing principles to the marketing of banking services. The study can be useful to private sector banks as well as to public sector banks. Due to time constraint, it is not possible to cover all the ICICI Banks so it is prudent that one example based on convenience will be taken for e.g. from Private sector-ICICI bank will be taken as this bank is most dominant banks in its respective sector. The study will be specifically useful to ICICI Bank to understand the reasons for the dissatisfaction among the customers and thus to take corrective steps in improving their services further. This study will become a source of information for future researchers to collect the data and information on the marketing of banks services, and customer satisfaction. The study also gives clear-cut idea of the methodology required to collect and analyze the data. RESEARCH PROBLEMS Before implementation of reform measures, Indian Banking System was laden with several weaknesses like low operational efficiency, inadequate Capital base, high NPAs, low
- 10. 10 profitability, unhealthy Balance Sheet and unsatisfactory customer service. Due to changes in Banking policies and practice during the last 25 years of reform period, it is appropriate to evaluate the impact of reform measures on the efficiency, profitability and overall performance of Commercial Banks in both quantitative and qualitative aspects. By and large, the studies conducted so far had confined to the economic aspects (on profitability) of bank’s performance, while socio- economic factors did not receive the desired attention. Studies were restricted to limited number of Banks, limited number of years and limited number of indicators. Hence there is a need to undertake comprehensive study. OBJECTIVE OF THE STUDY To make a Critical analysis of marketing of banking services of ICICI Bank in India particularly in the Financial Products. To evaluate innovative, dynamic and competitive nature of banking services, particularly in ICICI Bank. To assess customer satisfaction with banking services. To highlight the problems involved in marketing of banking services of ICICI Bank. To offer suggestions and measures to solve the problems faced by banks in marketing their services. SAMPLING MEHTOD Survey method was used for the study. Both Primary and Secondary data were used for the study. Primary data were collected from the customer respondents of ICICI Bank Ltd., through interview schedule. Secondary data were collected from books, journals and the Annual Report of ICICI Bank Ltd., from 2011-2016. ANALYSIS OF DATA Primary data collected from the respondents is later analyzed in MS excel and data are converted into different analysis formats such as average score analysis, gender wise
- 11. 11 percentage analysis, descriptive statistics, etc. All 9 variables are studied individually in study of Variable. KEY FINDINGS Proper Marketing Strategy will help ICICI Bank to make familiar of their Marketing Products among the ultimate beneficiary (Clients) upto their best satisfaction considering the recent entry of new players in banking sector. ICICI should put more focus on Marketing in order to maintain its commanding position in Banking sector. SUGGESTIONS Apart from having repute among Corporates and their employees, ICICI should put more focus to have a major pie of rural customers also. This bank should put more focus on effectively implementation of various Government’s welfare schemes. By this they may serve larger section of society and will contribute their skill towards building a strong nation. CONCLUSION Effectively Marketing concludes only if it is implemented and executed profitably. Front office staff should be capable to retain the customers. ICICI Bank’s internal policy should be framed in such a manner that the last beneficiary i.e. customers’ need should not be curtailed or restricted.
- 12. 12 Contents 1 Chapter 1: Introduction....................................................................................................17 1.1 Profile and Performance of ICICI BANK (Arthavitta, 2017) ...................................17 1.2 History (Website, n.d.) ..............................................................................................22 1.3 Introduction: Meaning and definition (Gupta, 2000)................................................23 1.4 Features/Characteristics (http://myyouthcareer.com, 2012) .....................................24 1.5 Origin and growth .....................................................................................................26 1.6 Swot Analysis of ICICI BANK (Gupta, 2000) .........................................................26 1.7 Recent trends and growing importance (SIDDIK, 2007)..........................................28 1.7.1 Electronic banking and its various forms...........................................................28 1.7.2 Forms of E-Banking...........................................................................................30 1.7.3 Mobile Banking..................................................................................................30 1.7.4 Tele Banking......................................................................................................31 1.7.5 Internet Banking.................................................................................................31 1.7.6 Internet Deployment ..........................................................................................31 1.7.7 E-Banking in India.............................................................................................32 1.7.8 ORGANIZATION STRUCTURE OF ICICI BANK ........................................32 1.7.9 VISION AND MISSION OF ICICI BANK ......................................................34 1.7.10 PRODUCTS AND SERVICES BANKING ACCOUNTS ...............................34 1.7.11 INSURANCE.....................................................................................................35 1.7.12 LOANS ..............................................................................................................35 1.7.13 CARDS ..............................................................................................................36
- 13. 13 1.7.14 INVESTMENT PRODUCTS ............................................................................37 1.8 Key challenges (Gupta, 2000)...................................................................................39 1.9 Statement of research problems (SIDDIK, 2007) .....................................................40 1.10 Objective of the study............................................................................................42 1.11 Chaptalization scheme ...........................................................................................42 2 Chapter 2: Review of literature........................................................................................43 2.1 Sankaran M (1999) (NAIR) ......................................................................................43 2.2 Abdullah D.N.M.A. and Rozario F. (2009) (http://shodhganga.inflibnet.ac.in) ......43 2.3 Hua G. (2009) (http://shodhganga.inflibnet.ac.in) ...................................................44 2.4 (SIDDIK, 2007).........................................................................................................44 2.5 Rao N. and Tiwari S. (2009) (http://shodhganga.inflibnet.ac.in).............................45 2.6 Udel (Udel, 1968).....................................................................................................45 2.7 Singh J D (1983) (NAIR).........................................................................................46 2.8 National Institute of Bank Management's study on deposit mobilization (1969) (Bombay., (1969))................................................................................................................46 2.9 Hugar and Vaz (2008) (S.S. Hugar, 2008)..............................................................47 3 Chapter 3: Research methodology ...................................................................................47 3.1 Research design.........................................................................................................47 3.2 Sampling design........................................................................................................47 3.2.1 Target population...............................................................................................47 3.2.2 Sampling frame..................................................................................................48 3.2.3 Period of study...................................................................................................48
- 14. 14 3.3 Sample size................................................................................................................48 3.4 Data collection...........................................................................................................48 3.5 Structure of questionnaire .........................................................................................48 3.6 Format of questionnaire designed .............................................................................49 3.7 Questionnaire for Expert Advice...............................................................................51 3.8 Analytical Tools applied for the study ......................................................................53 3. Research ethics.................................................................................................................53 4 Chapter 4: Data analysis ..................................................................................................54 4.1 Average score............................................................................................................54 4.1.1 Testing of Hypothesis ........................................................................................55 4.2 Percentage analysis ...................................................................................................56 4.3 Gender vise percentage analysis ...............................................................................57 4.4 Descriptive statistics..................................................................................................58 4.5 AGEWISE AVERAGE SCORE ANALYSIS ..........................................................59 4.6 EDUCATION QUALIFICATIONWISE AVERAGE SCORE ANALYSIS...........60 4.7 EXPERIANCEWISE AVERAGE SCORE ANALYSIS .........................................60 4.8 CORRELATION ANALYSIS ON GENDER..........................................................61 4.9 Analysis of study variables .......................................................................................62 5 Chapter 5: Summary of findings......................................................................................67 6 Chapter 6: Suggestions and conclusion ...........................................................................71 7 Bibliography.....................................................................................................................74
- 15. 15 List of figures List of Tables
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- 17. 17 1 Chapter 1: Introduction 1.1 Profile and Performance of ICICI BANK (Arthavitta, 2017) ICICI Bank (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra, India, with its registered office in Vadodara. ICICI Bank Limited, together with its subsidiaries, provides banking and financial services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance, and Other segments. The company offers savings, salary, pension, current, other accounts; and fixed, recurring, and security deposits. It also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, such as working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and secured loans for credit card swipes, as well as loans for new entities, and schools and colleges; and credit, debit, prepaid, travel, and corporate cards. In addition, the company offers life, health, travel, car, two-wheeler, home, and student medical insurance products; pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, and initial public offerings, as well as other online investment services; and farmer finance, tractor loans, and micro banking services, as well as other services to agri-traders and processors, and agri-corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and dmat accounts; commercial banking, investment banking, capital markets and custodial, project and technology finance, and institutional banking services, as well as Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, private equity/venture capital fund management, trusteeship, and pension fund management services. As of March 31, 2017, it had a network of 4,850 branches and 13,882 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has, subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
- 18. 18 Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank has over 15 million customers accounts. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI GROUP COMPANIES: ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its group companies. ICICI Group http://www.icicigroupcompanies.com ICICI Prudential Life Insurance Company http://www.iciciprulife.com/public/default.htm ICICI Securities http://www.icicisecurities.com ICICI Lombard General Insurance Company http://www.icicilombard.com ICICI Prudential AMC & Trust http://www.icicipruamc.com ICICI Venture http://www.iciciventure.com ICICI Direct http://www.icicidirect.com ICICI Foundation http://www.icicifoundation.org
- 19. 19 Disha Financial Counselling http://www.icicifoundation.org ICICI Bank also has banking subsidiaries in UK and Canada BOARD OF DIRECTORS: ICICI Bank's Board members include eminent individuals with a wealth of experience in international business, management consulting, banking and financial services. Board Members: (As on 30 June, 2017) Mr. M. K. Sharma, Chairman .............................................. Mr. Dileep Choksi .............................................. Mr. Homi R. Khusrokhan .............................................. Dr. Tushaar Shah .............................................. Mr. V. K. Sharma .............................................. Mr. V. Sridar .............................................. Mr. Amit Agrawal Ms. Chanda Kochhar, Managing Director & CEO ........................................... Mr. N. S. Kannan, Executive Director ........................................... Ms. Vishakha Mulye, Executive Director ........................................... Mr. Vijay Chandok, Executive Director ........................................... Mr. Anup Bagchi, Executive Director
- 20. 20 BOARD COMMITTEE: Audit Committee Board Governance Remuneration & Nomination Committee Mr. Homi R. Khusrokhan,Chairman Mr. Dileep Choksi, Alternate Chairman Mr. V. Sridar Mr. Homi R. Khusrokhan, Chairman Mr. M. K. Sharma Mr. V. K. Sharma Corporate Social Responsibility Committee Customer Service Committee Dr. Tushaar N. Shah,Chairman Ms. Chanda Kochhar Mr. Dileep Choksi Mr. Amit Agrawal Mr. V. Sridar,Chairman Ms. Chanda Kochhar Dr. Tushaar Shah Mr. Anup Bagchi Credit Committee Fraud Monitoring Committee Mr. M. K. Sharma, Chairman Ms. Chanda Kochhar Mr. Homi R. Khusrokhan Mr. V. Sridar, Chairman Mr. Dileep Choksi Mr. Homi R. Khusrokhan Ms. Chanda Kochhar Mr. Anup Bagchi Risk Committee Share Transfer & Shareholders'/ Investors' Grievance Committee Mr. M.K. Sharma, Chairman Mr. Dileep Choksi Mr. Homi R. Khusrokhan Mr. V. K. Sharma Mr. V. Sridar Ms. Chanda Kochhar Mr. Homi R. Khusrokhan, Chairman Mr. V. Sridar Mr. N. S. Kannan Committee of Executive Directors Information Technology Strategy Committee Managing Director & CEO, Chairperson Any Two Independent Directors Mr. Homi R. Khusrokhan, Chairman Mr. V. Sridar Ms. Chanda Kochhar
- 21. 21 Figure 1 :- Geographical areas Haryana Mumbai Chennai Bangalore Delhi Karnataka Bihar Orissa
- 22. 22 1.2 History (Website, n.d.) ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.
- 23. 23 1.3 Introduction: Meaning and definition (Gupta, 2000) ICICI Bank Limited is an Indian diversified financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,630 branches and 8,003 ATM's in India, and has a presence in 19 countries, including India. The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and Germany. ICICI Bank is India’s largest private sector bank in market capitalization and second largest overall in terms of assets. The bank has a network of 1,626 branches and about 4,883 ATMs in India and presence in 18 countries. The industrial credit and investment corporation of India limited (ICICI) was incorporated in1955 at the initiative of World Bank, the government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium – term and long- term project financing to Indian businesses. A. Ramaswami Mudaliar is selected as the first chairman of ICICI limited. CHANDA KOCHHAR is currently managing director and CEO of ICICI Bank. Kochhar has also consistently figured in fortune’s list of “Most Powerful Women in Business” since 2005.
- 24. 24 1.4 Features/Characteristics (http://myyouthcareer.com, 2012) BANKING plays an important role in every country for their economic growth as well as currency factor. Majority Development for a country depends on banking sector as banks maintain the competition between currency of many of the developed and developing countries 7 their work is always attached directly with people’s heart as they store there hard- core painstaking money in their hands for saving as well as they borrow money from banks which is known as LOAN. This Scheme helps people building their HOMES & business as well as their general requirement like CARs, LCDs, home decoration or maintenance Etc. BANKING involves following characteristics as written: - DEALING IN MONEY ACCEPTANCE OF MONEY DEPOSITS PAYMENT AND WITHDRAWS MONEY INDIVIDUAL OR COMPANIES VARIOUS BRANCHES FUNCTION INCREASING RAPIDLY BUSINESS IN BANKING SECTOR IDENTIFICATION FACILITIES OF ADVANCE MONEY DEALING IN MONEY All banks basically deal with money as they are financial institute where we link for our moneys exchanges we will either gave or deposit money in banks or will led/barrow money from banks for our requirement as per we need. ACCEPTANCE OF MONEY DEPOSITS All banks always work for their consumer satisfaction as a result they accept money from all their customers in a way there they also gave an Interest on deposited with the duration passed to money in bank. Banks deposits money from peoples & after that the protection of
- 25. 25 money is the responsibility of banks any misfortune happens to the consumers money will be returned by banks to customer within a given period of time. PAYMENT AND WITHDRAWS A person who has deposit their money into bank can able to withdraw it at any time of instance. A customer can also able to easy payment & withdraw their money with the facilities of ATM, DRAFTS, MONEY ORDERS, CHEQUES etc. INDIVIDUAL OR COMPANIES Bank can be of any type it can be a company or firm or also a person which are involved in the business of money. This is also how banks are defined. VARIOUS BRANCHES A bank can also have multiple branches for the facility of their customers as every person cannot be able to go to the main branch of an Bank so banks further grows their own branches so that they can reach to each and every person. FUNCTIONS INCREASING BANKS always believe in developing of facilities for the customers so that they always increase their functions for working like developing latest ATM machines for the transactions of money and net banking by which customers can do various transactions without visiting branch/ATM. BUSINESS IN BANKING BANKS do the business of money without any subsidiary business. There only responsibility is to satisfy their customers. this is also how banks define as they do the business of money interchanging from one hand to other. IDENTIFICATION Each bank has a unique name but having BANK name as common in all. which identifies the banks existence. People deals with different banks having different names but bank word in common in all of them.
- 26. 26 FACILITY OF ADVANCE Banks also lend money to the people in a form of loan with respective rate of interest. People which are not able to full fill their requirements at an instance of time which required a large amount of money at that time banks lend money to them so that they full fill there reequipment’s and returns in small installment which are known as EMIs. 1.5 Origin and growth Objective of Study The main objectives of this project are the following: To make a Critical analysis of marketing of banking services of ICICI Bank in India particularly in the Financial Products. To evaluate innovative, dynamic and competitive nature of banking services, particularly in ICICI Bank. To assess customer satisfaction with banking services. To highlight the problems involved in marketing of banking services of ICICI Bank. To study SWOT analysis of ICICI BANK. To study about Marketing Strategies on Financial Products of ICICI BANK 1.6 Swot Analysis of ICICI BANK (Gupta, 2000) Introduction to SWOT analysis. The overall evaluation of the company’s Strength, Weakness, Opportunities and Threats is called as SWOT Analysis. The external environment analysis of any business will give you the opportunities and threats facing the business. The external environment consists of two parts: STRENTH •Right strategy for the right products. • Superior customer service v/s competitors. •Great Brand Image •Products have required accreditations. •High degree of customer satisfaction. •Good place to work
- 27. 27 WEAKNESS •Lower response time with efficient and effective service •Some gaps in range for certain sectors. •Customer service staff needs training. •Processes and systems, etc. •Management covers insufficient. OPPORTUNITIES •Profit margins will be good. •Could extend to overseas broadly. •New specialist applications. •Could seek better customer deals • Fast – track career development opportunities on an industry – wide basis . THREATS •Legislation could impact. •Great risk involved •Very high competition prevailing in the industry. •Vulnerable to reactive attack by major competitors •Lack of infrastructure in rural areas could constrain investment •High volume/low cost market is intensely competitive.
- 28. 28 1.7 Recent trends and growing importance (SIDDIK, 2007) 1.7.1 Electronic banking and its various forms Banking is done through electronic systems for customer’s transactions (front office computerization) and /or internal accounting and book-keeping (back office computerization), as against the traditional manual system. The new private sector banks, which began operating in 1994 with front office and back office computerization, spurred a trend towards complete- computerization and electronic banking in public sector banks. Today, all banks have computerized front offices in metros/cities and their back office and information management systems are also fast getting computerized. Recent advancements in information and communication technologies have virtually replaced manual banking with electronic banking. Electronic banking has enabled banks to improve their customer service quality by speeding up most of the routine banking transactions and by providing ‘anywhere, anytime banking’. New banking channels are opened up in the form of ATMs, Tele-Banking and Internet Banking, although the conventional ‘brick and mortar’ banking is also available at all branches. Electronic Banking has also improved internal book-keeping and management information systems of the banks. Inter-connectivity between the branches is also done to achieve economy, centralizing the core banking operations on a common electronic platform, enabling the banks to achieve economies of scale and to further improvise ‘anywhere banking’. Electronic banking makes use of electronic currency. Check cards or debit cards, smart cards or stored-value cards, digital cash and digital checks are the different types of electronic currency. If you use a check card to make purchases, the funds are transferred immediately from your account to the store’s account. Smart cards have a specific amount of credit embedded in it. The chip in the card contains both personal and financial information. Digital checks are used with electronic bill paying services. Consumers could use personal finance software packages or use software
- 29. 29 provided by a bank. On line banking or PC banking offers a wider outreach for smaller institutions. Electronic banking offers consumers the convenience of accessing and transferring funds between their accounts, paying their bills and other purchase, twenty four hours a day, seven days a week. Automated Teller Machine (ATMs) have become very popular for dispensing cash to customers on-site and off-site, 24 hours a day, 365 days a year. However, these have certain limitations as regards quantum of withdrawals and denomination of notes disbursed. Further, these do not issue cheques books or drafts, like a teller/assistant at the bank counter, does not can these respond to an un-programmed query of a customer. These do not have a human face, nor do these show any empathy to a customer who has run into some problem. Mobile Banking goes to the customers for banking transactions, rather than the other way round (as in conventional banking). Mobile banks have either computerized system or manual banking system. In either case, it reaches the customers on designated days/hours on specified places. It involves less capital investment, but has problems of security and safety, unlike a conventional branch, which provides safety, security and comfort coupled with complete banking facilities. Tele banking provides ‘anywhere and anytime’ banking, but only to a limited extent. It provides general information about the account to a customer, but it too does not issue a cheques book or a draft instantly, which is possible in branch banking. Internet banking enables customers to access and view their ledger accounts and make limited transfer of funds from one account to another. However, Internet banking has not yet gained momentum in India, as it requires certain infrastructure, which is not yet possessed by most customers. There are certain issues that require to be tackled before it gains popularity in cities and towns. Electronic Funds Transfer has made fund-transfer from one center to another in the same country or to another country faster and safer. Electronic Clearing System has enabled the banks abroad to handle the clearing of cheques and interbank settlement faster and in large volumes.
- 30. 30 In India the clearing system is not fully automated. This results in credit clearance to customer’s accounts being done on the third day after the cheque is deposited. Electronic credit/debit systems have saved the customers from the tedium involved in receiving/making payments by cheques. The corporate and banks also prefer to adopt this hassle-free, cheque-less system of payments and receipts, by issuing mandates to the bankers for making periodic payments from accounts of the specified company. 1.7.2 Forms of E-Banking • Mobile Banking • Tele Banking • ATM • Internet Banking 1.7.3 Mobile Banking Technology has a major impact in helping banks service their customers with the introduction of Internet banking. It helps to give the customer’s anytime access to their banks. Customers could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of internet banking is the requirement of a PC with an internet connection. Mobile banking address this fundamental limitation of internet banking, as it reduces the customer requirement to just a mobile phone. The main advantage of mobile Banking over internet banking is that it enables ‘Anywhere Banking’. Customers now do not need access to a computer terminal to access their banks, they could do so on the go – when they are waiting for their bus to the work place, when they are traveling or when they are waiting for their orders to come through in a restaurant.
- 31. 31 1.7.4 Tele Banking In the current fast and active pace of our society, most people have less or no time to go through the hassles of going to the bank just to perform some simple transactions / inquiries. As such, telebanking through the telephone is the perfect solution for people on the go. Telebanking system is an Interactive Voice Response (IVR) application, which uses a telephone to access information from a database. It is an easy to use, cost effective and innovative solution designed to meet user needs for electronic banking application. It provides communication between information in IVRS system and off-site telephone caller/Customer. This solution bridges the gap between digital data and human modality of listening and speaking. Tele Banking eases the hassle of going to the Bank or any Automatic Teller Machines(ATMs) to perform day-to-day banking transactions. 1.7.5 Internet Banking The Internet banking indicates the technological development in the banking industry. Financial institutions started "home banking" business via a touch- tone telephone in the 1970s. Cable television was introduced in the 1970s. Cable television was considered as a possible medium for home banking in the 1980s. This approach solved the graphic limitations of the telephone. However, it had drawback the absence of two-way communication. Later, the PC provided both visual display and two - way communication. It has been considered an ideal device for modern banking medium. 1.7.6 Internet Deployment To carryout transactions that are internal to a bank, between the bank and its branches and subsidiaries, intranet deployment in banking is required. Extranet permits a bank to have full control over the users of intranet and information to be transmitted. The integration of the internal and external communications of banking related information through banking internet and
- 32. 32 intranet for the development of the financial sector requires extensive working on the part of the bankers. 1.7.7 E-Banking in India In banking industry, e-services are revolutionizing the way business is conducted. Electronic based business models are replacing conventional banking system and almost of banks are rethinking business process designs and customer relationship management strategies. It is also known as e-banking, online banking which provides various alternative e-channels to using banking services i.e. ATM, credit card, debit card, internet banking, mobile banking, electronic fund transfer, electronic clearing services etc. however, in the Indian e-banking scenario ATM is more acknowledged than other e-channels. The first bank to introduce the ATM concept in India was the Hong Kong and Shanghai Banking Corporation (HSBC) in the year 1987 followed by Bank of India in 1988. According to the R.B.I. annual report (2010-11) almost commercial banks are providing ATM facilities to its customers and to date there are 45,520 ATMs installed by public sector banks and 32,480 ATMs installed by private sector banks in India. ICICI Bank Ltd., is the first bank introduce the ATM transaction in India, therefore this bank got the important place in the process of technological revolution undergoing in our country moreover it is the largest private bank of the country. 1.7.8 ORGANIZATION STRUCTURE OF ICICI BANK . Retail banking. Wholesale banking Project finance and special assets management International business Corporate bank
- 33. 33 Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. Wholesale banking is the provision of services by banks to the likes of Mortgage Brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions. Project finance is the medium- to long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Special assets management 1. The management of a client's investments by a financial services company, usually an investment bank. The company will invest on behalf of its clients and give them access to a wide range of traditional and alternative product offerings that would not be to the average investors. 2. An account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services. An International Banking Facility (IBF) is a separate account established by a U.S. bank, or a US branch/subsidiary of a foreign bank, or an Edge Act Corporation in the United States to offer services to only non-US residents and institutions. The services offered include deposit and loan services. (Note, an IBF is not necessarily a separate legal entity.) One Corporate Centre is an office skyscraper in Pasig City, Metro Manila, Philippines. It is the 13th-tallest building in the country and Metro Manila as well with a height of 202 meters (662.73 feet) [3] from ground to tip of architectural antenna. The building has 45 floors above ground including 7 floors for commercial purposes, and 9 basement levels for parking
- 34. 34 1.7.9 VISION AND MISSION OF ICICI BANK 1.7.9.1 VISION To ensure most cost effective power for sustained growth of India. To provide clean and green power for secured future of countrymen Constituent associates & stakeholders. To continuously upgrade & update knowledge & skill set of its human resources. To achieve excellence in every activity we undertake 1.7.9.2 MISSION We will leverage our people, technology, speedand financial capital to: Expand the frontiers of our business globally. Play a proactive role in the full realization of India’s potential. Maintain high standards of governance and ethics. Create value for our stakeholders. To ensure most cost effective power for sustained growth of India. To provide clean and green power for secured future of countrymen. To achieve excellence in every activity we undertake 1.7.10 PRODUCTS AND SERVICES BANKING ACCOUNTS 1.7.10.1ACCOUNT ICICI Bank offers a wide range of banking accounts such as Current, Saving, Life Plus Senior, Recurring Deposit, Young Stars, Salary Account etc. tailor-made for every customer segments, from children to senior citizens. Convenience and ease toaccess are the benefits ofICICI Bank accounts. YOUNG STARS ACCOUNT A special portal for children to learn banking basics, manage personal finances and have alot of fun.
- 35. 35 BANK@CAMPUS This student banking services gives students access to their account details at the click of a mouse. Plus, the student gets a cheque book, debit card and annual statements. SAVINGS ACCOUNT Convenience is the name of the game with ICICI bank’s savings account. Whether it is an ATM/debit card, easy withdrawal, easy loan options or internet banking, ICICI bank’s saving account always keep you in touch of money. FIXED DEPOSITS ICICI Bank offers a range of deposit solutions to meet varying needs at every stage of life. It offers a range of tenures and other features to suit all requirements. 1.7.11 INSURANCE The ICICI group offers a range of insurance products to cover varying needs ranging from life, pensions and health, to home, motor and travel insurance. The Products are made accessible to customers through a wide network of advisors, banking partners, corporate agents and brokers with the added convenience ofbeing able to buy online. LIFE INSURANCE The ICICI group provides the many life insurance products through ICICI Prudential Life Insurance Company. GENERALINSURANCE The ICICI group provides the many general insurance products like motor, travel and home insurance through ICICI Lombard General Insurance Company. 1.7.12 LOANS ICICI bank offers a range of deposits solutions to meet varying needs at every stage of life. It offers a range of tenures and other features to suit all requirements.
- 36. 36 HOME LOANS The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and Guidance throughout the Process. It’s really easy! PERSONAL LOANS ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount up toRs. 15lakhs. VEHICLE LOANS The No. 1 financier for:- 1. Car loans Network of more than 2500 channel partners in over 1000 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & Quick processing is the main advantages are here. Avail attractive schemes at competitive interest rates from the No 1 Financier for 2. Two wheelers loans Finance facility up to 90% of the on Road Cost of the vehicle, repayable in convenient repayment options and comfortable tenors from 6months to36months. 1.7.13 CARDS ICICI Bank offers a variety of cards to suit different transactional needs. Its range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for financial transactions like cash, withdrawal, shopping and travel. These cards arewidelyacceptedbothinIndiaandabroad. CREDIT CARD ICICI Bank Credit Cards give you the facility of cash, convenience and arrange of benefits, anywhere in the world. These benefits range from lifetime free cards, Insurance benefits, global emergency assistance service, discounts,utilitypayments, traveldiscounts andmuchmore.
- 37. 37 DEBIT CARD The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchants worldwide. TRAVEL CARD ICICI Bank Travel Card. the Hassel free way to travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usageofCreditorDebitcard. 1.7.14 INVESTMENT PRODUCTS Along with Deposit products and Loan offerings, ICICI Bank assists customers to manage their finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. ICIC Bankfacilitatesfollowinginvestment products: •GovernmentofIndiaBonds •InvestmentinMutualFunds •Initial PublicOffersbyCorporate •Investmentin"PureGold" •ForeignExchangeServices •SeniorCitizensSavingsScheme TRADE SERVICES: ICICI Bank offers online remittances as we ll a s onlineprocessingof lettersofcreditandbankguarantees. ASSET MANAGEMENT: Prudential ICICI Asset Management Company offers a wide range of retail mutual fund products tailored to suit variedriskandmaturityprofiles. CASH MANAGEMENT: ICICI Bank offers a complete Range Of highly customized solutions for managing both the collections and payments requirements of clients by
- 38. 38 leveraging technology. Daily customized transactions reports and real time web- enabled downloads, provide on-tap information facilitating effective working capital management. CORPORATE BANKING: ICICI Bank offers comprehensive and customized financial solutions for its corporate clients, including rupee and foreign currency debts, working capital credit, structured financing syndication and transaction bankingproductsandservices. INTERNET BANKING: Internet banking is available to all ICICI Bank savings and deposit account holders, credit card, demat and loan customers. Internet banking service offers customers a world of convenience with services such as balance enquiry, transaction history, account statement, bill payments, and fund transfers and accounts related service requests. ATMS: With more than 13000 ATMs across the country, ICICI Bank has one of the largest ATMnetworksinIndia. PHONE BANKING: Phone banking offers 24*7 services across Liability, asset and investment productsto bothretailandcorporatecustomers. NRI-BANKING:A gamut of services to take care of all NRI banking needs including deposits, money transfers and private banking. MONEY2INDIA:A complete range of online and offline money transfer solutionsto sendmoneyto India. PROPERTY: For millions of home buyers across the country, ICICI Bank offers not just great deals on home loans but also a wealth of expert advice. ICICI Bank offers home search service which can help a customer identify the propertyofhischoicebasedonhisbudgetandotherrequirements.
- 39. 39 EMAT ACCOUNTS: ICICI Bank’s demat services offer unique features like e- constructions, consolidation, digitally signed statements, mobile requests and corporatebenefittracking. RURAL BANKING: Bank offers technology-based solutions, financial innovations and multiple delivery channels to meet the financial needs of rural areas. 1.8 Key challenges (Gupta, 2000) ICICI Bank Ltd.’s takeover of Bank of Rajasthan Ltd (BOR) will have to clear a new regulatory hurdle before it can be completed, according to a senior official in the industry ministry. Most banking mergers can move ahead once they get a green signal from the Reserve Bank of India (RBI), but the deal between India’s largest private sector lender and the troubled regional bank will need to be cleared by the government as well because of the provisions of a controversial policy that categorizes ICICI Bank as a foreign-owned one; despite its local presence and Indian management. “The merger needs the approval of the FIPB (Foreign Investment Promotion Board) under Press Note 3. Under the Press Note 3 of 2009 series, if the ownership of an existing Indian company is transferred to a non- resident entity, because of transfer of shares to nonresident entities through amalgamation, merger or acquisition, then it would require FIPB approval. Private sector lenders ICICI Bank and HDFC Bank Ltd were defined as foreign-owned under the new rules since more than half their equity is owned by foreign entities, including foreign institutional investors, who have no board presence or say in company policy. This regulation is applicable in sectors with foreign direct investment (FDI) caps, such as defence production, private sector banking, broadcasting, commodity exchanges, insurance, print media, telecommunications and satellites, according to the press note. Any foreign firm trying to gain control of local companies needs the prior approval of FIPB. The growth in the balance sheet has come to a complete halt compared to a 40% average annual growth it posted in the period from 2005-08. The size of bank's balance sheet declined by 5.1% in FY 2009. In the days of the economic boom, the bank's growth was fueled by an unprecedented growth in retail loans. In fact, even at the end of FY 2009, retail loans constituted 49% of its total loan book – the highest for any bank in India. As the
- 40. 40 slowdown started making its presence felt in the Indian economy, the retail loan segment became rather risky. Interestingly, what had made the bank is today causing it a great deal of concern. Feeling the heat, ICICI Bank, wisely, made it clear last year that more attention will be given to cleaning its books and taking stock of the situation than to grow. Not surprisingly, there is merit in paying more attention to its rising non-performing assets (NPA). The bank's net NPA jumped from 1.55% of its net advances at the end of March 08 to 2.09% at the end of March 09. At current levels, it has the highest NPAs, in percentage terms, across large banks in the country 1.9 Statement of research problems (SIDDIK, 2007) The crux of the earlier studies has revealed that automated service quality has been identified to have a significant importance in the financial performance of a bank. The current study extends the previous study and investigates whether there is any relationship between automated service quality and customer satisfaction with the financial performance of a bank along with the satisfaction level of the customer on the services provided by the ICICI Bank Ltd., ATM, telephone banking, internet banking, price, and core service, five factors of automated service quality of a bank are the key components of the financial performance of a bank. In the general literature, service quality and customer satisfaction have often been identified as significant predictors of business performance. Therefore, this study explores how perceived quality of automated service and level of customer satisfaction are related to profitability of the bank. Technology, however has had a remarkable influence on the growth of service delivery options. There are several competitive advantages associated with the adoption of technology in service organizations, including the creation of entry barriers, enhancement of productivity, and increased revenue generation from new services Service quality is one of the main factors that determines the success or failure of electronic commerce. However, automated service quality has
- 41. 41 tended to lag behind because practitioners have focused mainly on issues of usability and measurement of use, with little consideration for the outcomes. Bank’s customers come from different strata of the society. These customers belong to different economic, cultural and social back grounds, with heterogeneous attitudes, and expectations and influenced by the environmental background of the customers. In a developing economy, people migrating from the rural and semi-urban localities to the metropolitan cities in search of opportunities cannot be ignored. They add to an overall development including service sector. Moreover, economic liberalization has resulted in the growth of private sector especially in the field of banking. In today’s market economy, the customer is the king and only the more focused customer oriented services will survive. The Customer perceives a product of service from cost benefit analysis. Satisfying the needs of heterogeneous customers is indeed a difficult task. Development in the field of IT and ITES offer solution to this problem. Hence the role of banking has expanded incredibly, banks are also have equipped immensely with the help of IT development in unleashing the services in better way to their consumers in such context number of studies have been carried out to find out the consumer satisfaction of the bank customer in order to enhance the service, most of the studies have revealed that the IT development has better impact on the service delivery but the propose study would like to encompass all the spheres of the banking services in assessing the service delivery and the satisfaction level of the customer, hence it is very much imperative to explore the consumer satisfaction at multi-dimensional level. Therefore, this study aims to investigate whether significant relationship exist among the automated service quality, the customer satisfaction and the financial performance and the level of consumer satisfaction on the various services provided by the ICICI bank Ltd extensively and holistically.
- 42. 42 1.10 Objective of the study To make a Critical analysis of marketing of banking services of ICICI Bank in India particularly in the Financial Products. To evaluate innovative, dynamic and competitive nature of banking services, particularly in ICICI Bank. To assess customer satisfaction with banking services. To highlight the problems involved in marketing of banking services of ICICI Bank. To offer suggestions and measures to solve the problems faced by banks in marketing their services. 1.11 Chaptalization scheme The report of the research work is presented in five chapters as given below; First Chapter deals with the design and execution of the study which includes the introductory note, justification and selection of the study, statement of the research problem, objectives, methodology and chaptalization. Second Chapter deals with the review of literature of the related studies - the literature review part divided into three categories namely studies pertaining to customer satisfaction, E-banking Marketing strategies, and ATMs service delivery. Third Chapter deals with the profile and performance of ICICI Bank Ltd., Fourth Chapter gives an extensive analysis of customer satisfaction of the services of ICICI Bank Ltd., including ATM services. Fifth Chapter brings out the summary of major findings, suggestions and conclusion of the study.
- 43. 43 2 Chapter 2: Reviewof literature 2.1 Sankaran M (1999) (NAIR) Sankaran M (1999) studied the measures that would help domestic players in financial services sector to improve their competitive efficiency, and thereby to 56 Review of Literature reduce the transaction costs. The study found that the specific set of sources of sustainable competitive advantage relevant for Financial Service Industry are: a) product and process innovations, b) brand equity, c) positive influences of 'Communication Goods', d) corporate culture, e) experience effects, f) scale effects, and g) information technology Variable is: - services Q 1) The quality of services provided to you in case of having any query by bank are 2.2 Abdullah D.N.M.A. and Rozario F. (2009) (http://shodhganga.inflibnet.ac.in) Abdullah D.N.M.A. and Rozario F. (2009) study the influence of service, interest and product quality towards customer satisfaction. 149 respondents from one of the well-known hotel in Kuala Lumpur, Malaysia are selected as a sample. Psychometric testing is conducted to determine the reliability and validity of the questionnaire. The study finds positive significant relationship between place/ambience and service quality with customer satisfaction. Although, relationship between food quality and customer satisfaction is significant, it is in the negative direction. Future researchers can concentrate on determining attributes that influence customer satisfaction when cost/price is not a factor and reasons for place/ambience is currently becoming the leading factor in determining customer satisfaction. Variable is: - interest Q 2) What you think the interest charged on home loans is
- 44. 44 2.3 Hua G. (2009) (http://shodhganga.inflibnet.ac.in) Hua G. (2009) investigates the online banking acceptance in China by conducting an experiment to investigate how users’ perception about online banking (Internet Banking) is affected by the perceived ease of use of website and the privacy policy provided by the online banking website. The 110 undergraduate students in Chinese University are involved in the investigation. The study finds that both perceived ease of use and privacy policy have a significant impact on user’s adoption of online banking. The study also investigates relative importance of perceived ease of use, privacy, and security. Perceived ease of use is of less importance than privacy and security. Security is the most important factor influencing user’s adoption. The study also discusses the implications of these results and limitations. Variable is: - Internet Banking Q 3) What is your opinion on the service charges on E-Transaction (Internet Banking) 2.4 (SIDDIK, 2007) A survey of two towns and 10 villages in East Godavari and West Godavari districts of Andhra Pradesh to find out the influence of different forms of advertisement and personal selling on deposit mobilization of banks was conducted by Subha Rao (1982)". It was observed that different media advertisements have limited influence on customers in opening current account. Simil3rly personal selling was somewhat less powerful than advertisement in motivating urban customers to open current accounts. But in rural areas personal selling was more effective than advertisement Fixed depositors in urban and rural areas are mostly motivated by personal selling and advertising was not effective in mobilizing fixed deposits (FD) from urban and rural areas. It was also found that among urban customers, their friends and relatives had more influence than bank staff whereas rural customers were mostly induced by branch managers and other staff of the bank. Illiteracy, ignorance and awareness about various deposits schemes on the part of small savers and their psychological inertia are problems of deposit mobilization. Personal selling or contact is the best way of educating the rural potential customers. Variable is: - FD
- 45. 45 Q 4) If bank starts to provide Interest on FD at 1.25% per month, then would you like to Purchase 2.5 Rao N. and Tiwari S. (2009) (http://shodhganga.inflibnet.ac.in) Rao N. and Tiwari S. (2009) study the efficiency of 5 public sector banks selected on the basis of interest rates in 2005. The study concludes that all employee efficiency factors have insignificant influence on deposits, assets and advances, from branch efficiency, only operating profits per branch and from operating efficiency, cost of deposits have significant and positive impact. Liquidity influencing factors and ultimate profit factors do not influence the study also suggests some measures to improve efficiency Variable is: - interest rates Q 5) Are you satisfied with the interest rates offered and charged? 2.6 Udel (Udel, 1968) Udel (1968) identified marketing promotions as the most important facet of marketing strategy leading to effectiveness. Advertising, an aspect of promotional strategy, both an informative and persuasive role, and in this respect, can alter customers’ perceptions of a service. Variable is: - marketing Q 6) Do you think bank should put more focus on marketing of their Financial products
- 46. 46 2.7 Singh J D (1983) (NAIR) Singh J D (1983) in his study examined the trends in bank advertising in the seventies in India. The study revealed that the bank advertisements were created seemingly for the sake of advertising rather than for creating the market or serving the customer satisfactorily. There is lack of professionalism in bark advertising and marketing. Suggestions were made to give stress on 'positioning the bank' rather than on selling the products afire identification and prediction of customer requirements. Variable is: - proper or require changes Q 7) Do you think that marketing strategy of Financial Products of the bank is proper or require changes 2.8 National Institute of Bank Management's study on deposit mobilization (1969) (Bombay., (1969)) National Institute ofBank Management's study on deposit mobilization , (1969) concluded that mobilization of resources is one important facet of the various services performed by banks. Banks should classify depositors into segments and take intensive measures to market their services to them. They should design suitable schemes to mobilize the savings and attract them through suitable media of publicity. Review of Literature The various techniques of banks are essentially based on the principles of mobility, flexibility, convenience, reduction of cash drain, automatic facilities and special inducements. More personalized service to achieve deposit mobilization at branches. Variable is: - more Financial Products Q 8) Do you think Bank should introduce more Financial Products
- 47. 47 2.9 Hugar and Vaz (2008) (S.S. Hugar, 2008) Hugar and Vaz (2008) evaluate the customer orientation in public sector banks for 5 public sector, 3 new private sector and 3 foreign banks are selected. The study concludes that new private sector banks have more ATMs at the end of March 2006 followed by SBI group where 77.5 pc branches are fully computerized and 18.2 pc are partially computerized. Business per employee and profits per employee are higher in foreign banks where SBI has received more number of complaints followed by ICICI. Variable is: - ATM Q 9) Do you think charges levied by bank for ATM Transaction beyond monthly transaction limit, should be withdrawn 3 Chapter 3: Research methodology This Chapter concentrates on the research methodology. The research design, sampling design, data collection method, tools applied for the study geographical coverage and Research Ethics are detailed. 3.1 Research design The research design is defined by Fouche (2002) as “the plan or blue print of the study”. This research is Qualitative research which allows the researcher to gather information and do an in-depth exploration of issues, and therefore follows a less structured format with fewer respondents than quantitative methods. 3.2 Sampling design The study is an empirical one based on sample survey method. Sample was conducted among two branches along Urban Mumbai of Kalyan - Badlapur Region. 4 Senior employees of ICICI were selected as sample respondent for the study. The required Open-Ended data were collected by means of an interview schedule. 3.2.1 Target population The study is an empirical one based on sample survey method. The study has basically depended on primary data. The required primary data were collected by means of an Questionnaire
- 48. 48 administered to customers of Bank. Secondary data were collected from books, websites, journal and Annual Reports of the ICICI bank 3.2.2 Sampling frame Quota sampling was adopted by researcher. Quota sampling is where the researcher ensures that certain groups of people, who are knowledgeable about the research problems, are adequately represented in the research through the assignment of a fixed quota for each sub group. 3.2.3 Period of study The period of study was from JULY TO SEPTEMBER 2017. The study is mainly based on primary data collected by Questionnaire made on the findings of various researches. The secondary data were collected from various sources throughout the period of this study. 3.3 Sample size 9 Questions each from 30 respondents were collected from Customers totaling to 270 samples 3.4 Data collection This section discusses the techniques of gathering primary data for the testing of the research propositions that were crafted in Chapter I and II. The choice of the data instruments depends on the availability of facilities, time, costs, the degree of accuracy required, the expertise of the researcher, and other resources associated with the gathering of the data. The questionnaire was given to the respondent directly by the students and was collected later as per respondents preference as to giving filling the preprinted form. 3.5 Structure of questionnaire The structured questionnaire was divided into different sections as felt suitable. The first section covers personal variables, which are independent based on the assumption that there were measurable differences amount the levels with regard to the perception of dependent variables. The second to study factors section of questionnaire covers the factors of study with dependent variables viz:
- 49. 49 V1: Services V2: Interest V3: Internet Banking V4: FD V5: Interest Rates V6: Marketing V7: Proper or require changes V8: more Financial Products V9: ATM And HA: Highly agree A: Agree N: Neutral D: Disagree HD: Highly Disagree
- 50. 50 3.6 Format of questionnaire designed Title: STUDY ON ICICI’s MARKETING STRATEGIES OF FINANCIAL PRODUCTS Researcher: AKSHAT MAHENDRA Personal details Respondents Name: _________________________________________ Gender: Male Female Age: Below 20 20-30 30-40 40-50 Above 50 Education: Below Graduate Graduate Post Graduate Professional Others Experience: Below 5 years 05-10 years 10-15 years 15-20 years Above 20 years Study factor: 1) The quality of services provided to you by bank in case of having any query are Very poor Poor Average good Very good 2) What you think the Interest charged on home loans is Very High High Normal Low Very Low 3) What is your opinion on the service charges on E-Transaction (Internet Banking): Very High High Low Very Low Should be Abolished 4) If bank starts to provide Int. on FD at 1.25% per month, then would you like to Purchase Highly yes Yes Can’t say No Highly No 5) Are you satisfied with the interest rates offered and charged? Highly Satisfied Satisfied Neutral Not Satisfied Highly Not Satisfied 6) Do you think bank should put more focus on marketing of their Financial products Highly yes Yes Can’t say No Highly No 7) Do you think that marketing strategy of Financial Products of the bank is proper or require changes Highly Proper Proper Require Change Improper Can’t say 8) Do you think Bank should introduce more Financial Products Highly yes Yes Can’t say No Highly No 9) Do you think charges levied by bank for ATM Transaction beyond monthly transaction limit, should be withdrawn Highly Agree Agree Neutral Disagree Highly disagree
- 51. 51 3.7 Questionnaire for Expert Advice Topic: STUDY ON ICICI’s MARKETING STRATEGIES OF FINANCIAL PRODUCTS Name Designation Organisation Q1) Infrastructure constraints is challenges for the marketing of financial products? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ Q2) Do you think ICICI’s Financial Products can be purchased by general public? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________
- 52. 52 Q3) Could you briefly highlight on the future market strategies of financial products of ICICI. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Q4) What do you think ICICI’s marketing strategies are efficient to attract public to purchase your Financial Products? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________
- 53. 53 3.8 Analytical Tools applied for the study Data analysis gives meaning to the data that has been collected. 30 respondents were given questionnaire. After verification as to completeness of collected questionnaire, samples were finalized. The data corresponding to the values in the Likert Scale were entered for each statement in the questionnaire. It was then checked for accuracy, through three rounds of visual and hardcopy inspections. The MS Excel data analysis tool was used for statistical data analysis. The statistical analytical tools applied include: The Average score analysis is mainly used in any study is to assess the level of opinion/awareness/satisfaction of the different category of respondents on the various aspects relating to the study. First the opinion of the respondents are assessed through a scaling technique and then based on the consolidated opinion of the respondents, the average score is calculated. It is the simple and common method to represent raw streams of data as a percentage for better understanding of collected data. Percentages are used in making comparison between two or more variables to find the efficacy of each variable. 3.9 Research ethics Research ethics refer to the "appropriate" behavior of the researcher in relation to the norms of the society. It relates to the three parties involved in this research: the researcher, the respondents and Research supervisor. Researcher assured Confidentiality to the respondents and secrecy will be maintained. The researcher, on her/his part maintained objectivity, presented the true research findings.
- 54. 54 4 Chapter 4: Data analysis Here, V1: Services V2: Interest V3: Internet Banking V4: FD V5: Interest Rates V6: Marketing V7: Proper or require changes V8: more Financial Products V9: ATM And HA: Highly agree A: Agree N: Neutral D: Disagree HD: Highly Disagree 4.1 Average score The average score analysis is mainly used in any study is to assess the level of opinion/ awareness/satisfaction of the different category of respondents on the various aspects relating to the study. First the opinions of the respondents are assessed through a scaling technique and then based on the opinion of the respondents, the average score is calculated. In this study, the opinion of the respondents is assessed through a five-point scaling technique and then based on the opinion of respondents the average score is calculated and the result are presented in different tables.
- 55. 55 4.1.1 Testing of Hypothesis Null Hypothesis (H0): Gender of the respondent does not influence their perception as to STUDY ON ICICI’s MARKETING STRATEGIES OF FINANCIAL PRODUCTS Alternative Hypothesis (H1): Gender of the respondent does influence their perception as to STUDY ON ICICI’s MARKETING STRATEGIES OF FINANCIAL PRODUCTS. The above testing of hypothesis can be done using the following table- Table 1 Average score analysis Variable Total response HA=5 A=4 N=3 D=2 HD=1 Total V1 0 0 7 22 1 30 V2 1 0 15 13 1 30 V3 5 0 7 15 3 30 V4 1 4 10 13 2 30 V5 1 6 11 12 0 30 V6 0 0 7 23 0 30 V7 3 3 12 12 0 30 V8 0 1 7 21 1 30 V9 1 4 5 13 7 30 Source: Primary data Table 2Average score analysis Source: Primary data Variable Highly Agree score Agree score Neutral score Disagree score Highly disagree score total score Grant Mac score Grant Min score Avera ge Score Low score Lower HL Middle HL High score QuotientScale remark V01 0 0 21 44 1 66 150 30 1.32 1 2.5 3.75 5 V02 5 0 45 26 1 77 150 30 1.54 1 2.5 3.75 5 V03 25 0 21 30 3 79 150 30 1.58 1 2.5 3.75 5 V04 5 16 30 26 2 79 150 30 1.58 1 2.5 3.75 5 V05 5 24 33 24 0 86 150 30 1.72 1 2.5 3.75 5 V06 0 0 21 46 0 67 150 30 1.34 1 2.5 3.75 5 V07 15 12 36 24 0 87 150 30 1.74 1 2.5 3.75 5 V08 0 4 21 42 1 68 150 30 1.36 1 2.5 3.75 5 V09 5 16 15 26 7 69 150 30 1.38 1 2.5 3.75 5 Overall Average Score Analysis
- 56. 56 4.2 Percentage analysis The percentage analysis/ descriptive analysis describes the distribution of respondents in each classification as it is expressed in percentage it facilitates comparison. Table 3 Percentage analysis Variable 5 4 3 2 1 total "5"% "4"% "3"% "2"% "1"% total% V01 0 0 7 22 1 30 0% 0% 23% 73% 3% 100% V02 1 0 15 13 1 30 3% 0% 50% 43% 3% 100% V03 5 0 7 15 3 30 17% 0% 23% 50% 10% 100% V04 1 4 10 13 2 30 3% 13% 33% 43% 7% 100% V05 1 6 11 12 0 30 3% 20% 37% 40% 0% 100% V06 0 0 7 23 0 30 0% 0% 23% 77% 0% 100% V07 3 3 12 12 0 30 10% 10% 40% 40% 0% 100% V08 0 1 7 21 1 30 0% 3% 23% 70% 3% 100% V09 1 4 5 13 7 30 3% 13% 17% 43% 23% 100% Source: Primary data From the above table, it is found that: - With reference to variable V1, it is found that 23% respondent is neutral that the quality of services provided by bank in case of having any query and 3% respondents are highly disagree with it. With reference to variable V2, it is found that 50% respondent are neutral that the Interest charged on home loans and 3% respondents are highly disagree with it. With reference to variable V3, it is found that 17% respondents highly agree on the service charges on E-Transaction (Internet Banking) and 10% respondents are highly disagree with it. With reference to variable V4, it is found that 13% respondents agree that if bank starts to provide Interest on FD at 1.25% per month and 7% respondents are highly disagree with it. With reference to variable V5, it is found that 3% respondents are highly agree with the interest rates offered & charged and 40% respondents are disagreeing with it. With reference to variable V6, it is found that 23% respondents are neutral that bank should put more focus on marketing of their financial products and 77 % respondents are disagreeing With reference to variable V7, it is found that 10 % respondents are highly agreeing about the marketing strategy of Financial Products of the bank is proper and 40% thinks that bank should change their strategy. With reference to variable V8, it is found that 23% respondents are neutral about the Bank should introduce more Financial Products.
- 57. 57 With reference to variable V9, it is found that 43% respondents are highly disagreeing that the charges levied by bank for ATM Transaction beyond monthly transaction limit, should be withdrawn. 4.3 Gender vise percentage analysis Gender vise percentage analysis, it is percentage analysis of total respondents but it is segmented between males and females. We approach 30 respondents in which 24 responses are taken from males and 6 responses from females. Table 4 Gender vise percentage analysis Source: Primary data Table 5: - Gender vise percentage analysis Source: Primary data Varcode Total Total PG1 54 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 V01 0 0 7 22 1 0 0 1 5 0 0 0 6 17 1 30 0.00% 0.00% 3.33% 16.67% 0.00% 0.00% 0.00% 20.00% 56.67% 3.33% 100.00% V02 1 0 15 13 1 0 0 1 4 1 1 0 # 9 0 30 0.00% 0.00% 3.33% 13.33% 3.33% 3.33% 0.00% 46.67% 30.00% 0.00% 100.00% V03 5 0 7 15 3 1 0 0 4 1 4 0 7 11 2 30 3.33% 0.00% 0.00% 13.33% 3.33% 13.33% 0.00% 23.33% 36.67% 6.67% 100.00% V04 1 4 10 13 2 1 0 1 3 1 0 4 9 10 1 30 3.33% 0.00% 3.33% 10.00% 3.33% 0.00% 13.33% 30.00% 33.33% 3.33% 100.00% V05 1 6 11 12 0 0 1 2 3 0 1 5 9 9 0 30 0.00% 3.33% 6.67% 10.00% 0.00% 3.33% 16.67% 30.00% 30.00% 0.00% 100.00% V06 0 0 7 23 0 0 0 0 6 0 0 0 7 17 0 30 0.00% 0.00% 0.00% 20.00% 0.00% 0.00% 0.00% 23.33% 56.67% 0.00% 100.00% V07 3 3 12 12 0 1 1 2 2 0 2 2 # 10 0 30 3.33% 3.33% 6.67% 6.67% 0.00% 6.67% 6.67% 33.33% 33.33% 0.00% 100.00% V08 0 1 7 21 1 0 0 0 6 0 0 1 7 15 1 30 0.00% 0.00% 0.00% 20.00% 0.00% 0.00% 3.33% 23.33% 50.00% 3.33% 100.00% V09 1 4 5 13 7 0 0 1 4 1 1 4 4 9 6 30 0.00% 0.00% 3.33% 13.33% 3.33% 3.33% 13.33% 13.33% 30.00% 20.00% 100.00% Female Male GenderwisePercentageAnalysis MaleFemaleTotal Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Average score of Female 1 Average score of male 2 Total PG1 1 2 2 2 2 1 2 2 2 2 2 2 1 2 2 2 2 1 2 2 2 1 2 2 2 2 2 2 1 2 6 24 30 V01 2 3 2 2 2 2 2 3 2 2 2 3 2 2 2 2 2 2 2 3 2 3 2 2 1 3 2 2 2 3 2.17 2.21 2.20 V02 2 2 3 2 3 3 3 2 3 3 3 3 2 3 2 2 3 2 3 2 2 1 2 3 5 3 3 3 2 2 2.00 2.71 2.57 V03 2 3 3 2 2 5 5 2 2 1 2 2 2 5 5 2 2 2 2 3 1 1 2 2 3 3 3 5 2 3 2.33 2.71 2.63 V04 2 2 4 3 2 2 2 3 1 4 2 2 1 2 3 4 3 5 3 4 2 2 2 3 2 2 3 3 3 3 2.50 2.67 2.63 V05 2 3 2 3 3 3 2 4 2 2 3 3 2 3 4 3 4 3 2 5 4 4 2 2 2 2 3 4 2 3 2.67 2.92 2.87 V06 2 2 3 3 2 2 2 2 3 2 2 2 2 2 2 2 3 2 3 3 2 2 2 2 2 2 2 2 2 3 2.00 2.29 2.23 V07 5 3 2 3 2 2 5 2 5 3 2 3 3 2 2 3 3 3 3 4 4 4 2 3 2 3 3 2 2 2 3.17 2.83 2.90 V08 2 1 2 3 2 2 2 2 3 2 2 2 2 2 4 2 3 2 3 3 2 2 2 3 2 2 2 3 2 2 2.00 2.33 2.27 V09 2 1 3 4 1 2 3 2 4 1 2 2 1 2 1 4 3 3 3 5 2 2 2 2 4 2 1 2 2 1 2.00 2.38 2.30 Genderwise Average score analysis
- 58. 58 From above tables, we can conclude that: - From variable V1, we can find that males feel that the quality of services provided by the bank in case of having any query, more than female. From variable V2, we can find that males feel that the Interest charged on home loans is more, than female. From variable V3, we can find that males feel that opinion on the service charges on E- Transaction (Internet Banking) is more, than female. From variable V4, we can find that males feel that bank starts to provide Interest on FD at 1.25% per month, then would like to Purchase, more than female. From variable V5, we can find that males feel that they are satisfied with the interest rates offered and charged, more than female. From variable V6, we can find that males feel that bank should put more focus on marketing of their Financial products, more than female. From the variable V7, we can found that females feel that marketing strategy of Financial Products of the bank is proper, more than male. From the variable V8, we can found that males feel that Bank should introduce more Financial Products, more than female. From the variable V9, we can found that male feel that charges levied by bank for ATM Transaction beyond monthly transaction limit, should be withdrawn, more than female. 4.4 Descriptive statistics Descriptive statistics are statistics that quantitatively describe or summarize features of a collection of information. Descriptive statistics is the term given to the analysis of data that helps describe, show or summarize data in a meaning full way such that, for example, patterns might emerge from the data.
- 59. 59 Table 6 Descriptive statistics Source: Primary data Variable V7 has highest mean that is 2.90 Variable V1 has lowest mean that is 2.20 All the variables have same average they all are in between 2.20 to 2.90 4.5 AGEWISE AVERAGE SCORE ANALYSIS TABLE 7 AGEWISE AVERAGE SCORE ANALYSIS Source: Primary data Variable V7 has highest age wise score that is 2.90 Variable V1 has lowest age wise score that is 2.20 All the variables have same average they all are in between 2.20 to 2.90 that means they all are nearby each other. Variable Mean Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimu m Maximu m Sum Count Confidence Level(95.0%) V01 2.20 2.00 2.00 0.48 0.23 0.50 0.55 4.00 1.00 5.00 66.00 30.00 0.17 V02 2.57 3.00 3.00 0.73 0.53 3.15 0.90 4.00 1.00 5.00 77.00 30.00 0.26 V03 2.63 2.00 2.00 1.22 1.48 0.16 1.02 4.00 1.00 5.00 79.00 30.00 0.44 V04 2.63 2.50 2.00 0.93 0.86 0.20 0.55 4.00 1.00 5.00 79.00 30.00 0.33 V05 2.87 3.00 2.00 0.86 0.74 -0.44 0.62 4.00 1.00 5.00 86.00 30.00 0.31 V06 2.23 2.00 2.00 0.43 0.19 -0.26 1.33 4.00 1.00 5.00 67.00 30.00 0.15 V07 2.90 3.00 3.00 0.96 0.92 0.20 0.96 4.00 1.00 5.00 87.00 30.00 0.34 V08 2.27 2.00 2.00 0.58 0.34 1.69 1.03 4.00 1.00 5.00 68.00 30.00 0.21 V09 2.30 2.00 2.00 1.09 1.18 -0.07 0.73 4.00 1.00 5.00 69.00 30.00 0.39 DescriptiveStatistics Varcode 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Age class 1 Age class 2 Age class 3 Age class 4 Age class 5 Total PA2 4 4 3 5 3 3 3 3 2 3 3 3 3 3 3 2 4 2 3 2 2 3 3 3 3 3 2 3 1 3 1 6 19 3 1 30 V01 2 3 2 2 2 2 2 3 2 2 2 3 2 2 2 2 2 2 2 3 2 3 2 2 1 3 2 2 2 3 2.00 2.17 2.21 2.33 2.00 2.20 V02 2 2 3 2 3 3 3 2 3 3 3 3 2 3 2 2 3 2 3 2 2 1 2 3 5 3 3 3 2 2 2.00 2.33 2.74 2.33 2.00 2.57 V03 2 3 3 2 2 5 5 2 2 1 2 2 2 5 5 2 2 2 2 3 1 1 2 2 3 3 3 5 2 3 2.00 2.17 2.89 2.33 2.00 2.63 V04 2 2 4 3 2 2 2 3 1 4 2 2 1 2 3 4 3 5 3 4 2 2 2 3 2 2 3 3 3 3 3.00 3.17 2.47 2.33 3.00 2.63 V05 2 3 2 3 3 3 2 4 2 2 3 3 2 3 4 3 4 3 2 5 4 4 2 2 2 2 3 4 2 3 2.00 3.33 2.74 3.00 3.00 2.87 V06 2 2 3 3 2 2 2 2 3 2 2 2 2 2 2 2 3 2 3 3 2 2 2 2 2 2 2 2 2 3 2.00 2.33 2.16 2.33 3.00 2.23 V07 5 3 2 3 2 2 5 2 5 3 2 3 3 2 2 3 3 3 3 4 4 4 2 3 2 3 3 2 2 2 2.00 3.67 2.58 3.67 3.00 2.90 V08 2 1 2 3 2 2 2 2 3 2 2 2 2 2 4 2 3 2 3 3 2 2 2 3 2 2 2 3 2 2 2.00 2.33 2.26 2.00 3.00 2.27 V09 2 1 3 4 1 2 3 2 4 1 2 2 1 2 1 4 3 3 3 5 2 2 2 2 4 2 1 2 2 1 2.00 3.17 2.00 2.00 4.00 2.30 Agewise Average score analysis
- 60. 60 4.6 EDUCATION QUALIFICATIONWISE AVERAGE SCORE ANALYSIS TABLE 8: - EDUCATIONQUALIFICATIONWISE AVERAGE SCORE ANALYSIS Source: Primary data Variable V7 has Highest Qualification Wise Score that is 2.90 Variable V1 has Lowest Qualification Wise Score that is 2.20 All the variables have same average they all are in between 2.20 to 2.90 that means they all are nearby each other. 4.7 EXPERIENCE-WISE AVERAGE SCORE ANALYSIS TABLE 9: - EXPERIENCE-WISE AVERAGE SCORE ANALYSIS Source: Primary data Variable V7 has Highest Experience Wise Score that is 2.90 Variable V1 has Lowest Experience Wise Score that is 2.20 Varcode 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Age class 1 Age class 2 Age class 3 Age class 4 Age class 5 Total PQ3 2 2 3 2 2 2 3 2 2 2 3 3 3 2 2 1 4 4 2 4 1 2 2 2 2 1 1 2 1 5 5 16 5 3 1 30 V01 2 3 2 2 2 2 2 3 2 2 2 3 2 2 2 2 2 2 2 3 2 3 2 2 1 3 2 2 2 3 2.20 2.13 2.20 2.33 3.00 2.20 V02 2 2 3 2 3 3 3 2 3 3 3 3 2 3 2 2 3 2 3 2 2 1 2 3 5 3 3 3 2 2 2.40 2.63 2.80 2.33 2.00 2.57 V03 2 3 3 2 2 5 5 2 2 1 2 2 2 5 5 2 2 2 2 3 1 1 2 2 3 3 3 5 2 3 2.20 2.75 2.80 2.33 3.00 2.63 V04 2 2 4 3 2 2 2 3 1 4 2 2 1 2 3 4 3 5 3 4 2 2 2 3 2 2 3 3 3 3 2.80 2.44 2.20 4.00 3.00 2.63 V05 2 3 2 3 3 3 2 4 2 2 3 3 2 3 4 3 4 3 2 5 4 4 2 2 2 2 3 4 2 3 2.80 2.81 2.40 4.00 3.00 2.87 V06 2 2 3 3 2 2 2 2 3 2 2 2 2 2 2 2 3 2 3 3 2 2 2 2 2 2 2 2 2 3 2.00 2.19 2.20 2.67 3.00 2.23 V07 5 3 2 3 2 2 5 2 5 3 2 3 3 2 2 3 3 3 3 4 4 4 2 3 2 3 3 2 2 2 3.00 2.81 3.00 3.33 2.00 2.90 V08 2 1 2 3 2 2 2 2 3 2 2 2 2 2 4 2 3 2 3 3 2 2 2 3 2 2 2 3 2 2 2.00 2.38 2.00 2.67 2.00 2.27 V09 2 1 3 4 1 2 3 2 4 1 2 2 1 2 1 4 3 3 3 5 2 2 2 2 4 2 1 2 2 1 2.20 2.19 2.20 3.67 1.00 2.30 Educational Qualificationwise Average score analysis Varcode 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Age class 1 Age class 2 Age class 3 Age class 4 Age class 5 Total PE4 5 5 3 1 3 3 2 3 2 4 3 3 4 2 2 2 2 1 3 2 2 3 2 3 4 3 1 2 1 3 4 10 11 3 2 30 V01 2 3 2 2 2 2 2 3 2 2 2 3 2 2 2 2 2 2 2 3 2 3 2 2 1 3 2 2 2 3 2.00 2.10 2.45 1.67 2.50 2.20 V02 2 2 3 2 3 3 3 2 3 3 3 3 2 3 2 2 3 2 3 2 2 1 2 3 5 3 3 3 2 2 2.25 2.50 2.64 3.33 2.00 2.57 V03 2 3 3 2 2 5 5 2 2 1 2 2 2 5 5 2 2 2 2 3 1 1 2 2 3 3 3 5 2 3 2.25 3.20 2.45 2.00 2.50 2.63 V04 2 2 4 3 2 2 2 3 1 4 2 2 1 2 3 4 3 5 3 4 2 2 2 3 2 2 3 3 3 3 3.50 2.60 2.55 2.33 2.00 2.63 V05 2 3 2 3 3 3 2 4 2 2 3 3 2 3 4 3 4 3 2 5 4 4 2 2 2 2 3 4 2 3 2.75 3.30 2.82 2.00 2.50 2.87 V06 2 2 3 3 2 2 2 2 3 2 2 2 2 2 2 2 3 2 3 3 2 2 2 2 2 2 2 2 2 3 2.25 2.30 2.27 2.00 2.00 2.23 V07 5 3 2 3 2 2 5 2 5 3 2 3 3 2 2 3 3 3 3 4 4 4 2 3 2 3 3 2 2 2 2.75 3.20 2.55 2.67 4.00 2.90 V08 2 1 2 3 2 2 2 2 3 2 2 2 2 2 4 2 3 2 3 3 2 2 2 3 2 2 2 3 2 2 2.25 2.60 2.18 2.00 1.50 2.27 V09 2 1 3 4 1 2 3 2 4 1 2 2 1 2 1 4 3 3 3 5 2 2 2 2 4 2 1 2 2 1 2.50 2.80 2.00 2.00 1.50 2.30 Experiecwise Qualificationwise Average score analysis
- 61. 61 All the variables have same average they all are in between 2.20 to 2.90 that means they all are nearby each other. 4.8 CORELATION ANALYSIS ON GENDER TABLE 10: - CORELATION ANALYSIS ON GENDER Source: Primary data Variable V8 has Highest Corelation Coefficient that is 0.23 Variable V7 has Lowest Corelation Coefficient that is -0.14 All the variables have same average they all are in between -0.14 to 0.23 that means they all are nearby each other. Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 PG1 1 2 2 2 2 1 2 2 2 2 2 2 1 2 2 2 2 1 2 2 2 1 2 2 2 2 2 2 1 2 V01 2 3 2 2 2 2 2 3 2 2 2 3 2 2 2 2 2 2 2 3 2 3 2 2 1 3 2 2 2 3 0.04 V02 2 2 3 2 3 3 3 2 3 3 3 3 2 3 2 2 3 2 3 2 2 1 2 3 5 3 3 3 2 2 0.40 V03 2 3 3 2 2 5 5 2 2 1 2 2 2 5 5 2 2 2 2 3 1 1 2 2 3 3 3 5 2 3 0.13 V04 2 2 4 3 2 2 2 3 1 4 2 2 1 2 3 4 3 5 3 4 2 2 2 3 2 2 3 3 3 3 0.07 V05 2 3 2 3 3 3 2 4 2 2 3 3 2 3 4 3 4 3 2 5 4 4 2 2 2 2 3 4 2 3 0.12 V06 2 2 3 3 2 2 2 2 3 2 2 2 2 2 2 2 3 2 3 3 2 2 2 2 2 2 2 2 2 3 0.28 V07 5 3 2 3 2 2 5 2 5 3 2 3 3 2 2 3 3 3 3 4 4 4 2 3 2 3 3 2 2 2 -0.14 V08 2 1 2 3 2 2 2 2 3 2 2 2 2 2 4 2 3 2 3 3 2 2 2 3 2 2 2 3 2 2 0.23 V09 2 1 3 4 1 2 3 2 4 1 2 2 1 2 1 4 3 3 3 5 2 2 2 2 4 2 1 2 2 1 0.14 Correlation Analysis based on Gender Correlation coefficient
- 62. 62 4.9 Analysis of study variables V1: The quality of services provided to you by bank in case of having any query are Figure 1 SERVICES Source: Primary data From the findings we can summarize that 73% responses are Poor Bank Service and 23% responses are Average with regard to this question. V2: What you think the Interest charged on home loans is Figure 2: - INTEREST Source: Primary data From the findings, we can summarize that 50% respondents are normal with regard to the Interest Rate of the Bank. 0%0% 23% 73% 3% SERVICES Very Good Good Average Poor Very Poor 3% 0% 50% 43% 3% INTEREST Very High High Normal Low Very Low
- 63. 63 V3: What is your opinion on the service charges on E-Transaction (Internet Banking): Figure 3 INTERNET BANKING Source: Primary data From the findings we can summarize that 50% feels Net Banking charges should be very low. V4: If bank starts to provide Interest on FD at 1.25% per month, then would you like to Purchase Figure 4 FD Source: Primary data From the findings we can summarize that 44 % respondents will purchase product i.e., Fixed Deposits. VeryHigh 17% High 0% Low 23% VeryLow 50% Should be Abolished 10% INTERNET BANKING Very High High Low Very Low Should be Abolished 3% 13% 33% 44% 7% FD Highly Yes Yes Can't Say No Highly No
- 64. 64 V5: Are you satisfied with the interest rates offered and charged? Figure 5: - INTEREST RATES Source: Primary data From the findings we can summarize that 40% are not satisfied with present rate of Interest. V6: Do you think bank should put more focus on marketing of their Financial products Figure 6 :- Marketing Source: Primary data From the findings we can summarize that 77% responses should put focus on marketing of their Financial Products. HighlySatisfied 3% Satisfied 20% Neutral 37% Not Satisfied 40% HighlyNot Satisfied 0% INTEREST RATES Highly Satisfied Satisfied Neutral Not Satisfied Highly Not Satisfied 00 23 77 0 Marketing Highly Yes Yes Can't Say No Highly No
- 65. 65 V7: Do you think that marketing strategy of Financial Products of the bank is proper or require changes Figure 7 :- Proper or require changes Source: Primary data From the findings we can summarize that 40% feels that changes required. V8: Do you think Bank should introduce more Financial Products Figure 2 :- more Financial Products Source: Primary data From the findings we can summarize that 70% respondents are disagree with new Financial Products of Bank. HighlyProper 10% Proper 10% Require Change 40% Improper 40% Can’t say 0% Proper or require changes Highly Proper Proper Require Change Improper Can’t say 0 3 23 70 3 more Financial Products Highly Yes Yes Can't Say No Highly No
- 66. 66 V9: Do you think charges levied by bank for ATM Transaction beyond monthly transaction limit, should be withdrawn Figure 9: ATM Source: Primary data From the findings we can summarize that 44% responses are Disagree with leving charges for ATM Transactions. HighlyAgree 3% Agree 13% Neutral 17% Disagree 44% Highlydisagree 23% ATM Highly Agree Agree Neutral Disagree Highly disagree
- 67. 67 5 Chapter 5: Summary of findings The marketing is regarded as the pivotal force behind strategic planning and business operations. The effective marketing calls for managers to have adequate information for planning and allocating resources to different market products, territories and marketing tools. The firm must be suitably staffed to enable it to perform marketing analysis, planning and implementation. The marketing effectiveness is contingent upon the adeptness of managers to deliver profitable strategies from its philosophy, organization and information resources. The issue of marketing effectiveness is particularly significant to those associated with the management of financial services. The financial service organization, should study the market, recognize the numerous opportunities, select the most appropriate market segments, and offer superior value to meet the selected customers ‘needs and wants. In financial services, good customer relations and their satisfaction is the single major factor contributing to the success of an organization. The successful financial services companies share a strong focus and a heavy commitment towards marketing. The modern marketing seeks to attract new customers by promising superior value and to keep current customers by delivering satisfaction. The sound marketing is critical to the success of all organization, whether large or small, profit or non-profit, and domestic or global. The people mostly think of marketing as only selling or advertising. But marketing companies do many activities like market research, product development, distribution, pricing, advertising, personal selling. The consumers ‘focus and satisfaction are driving forces for surviving or thriving in the twenty first century. A consumer is anyone who typically engages in one or all the decision processes and physical activities when evaluating, acquiring, using, or disposing of economic
- 68. 68 goods and services. A customer is always defined in terms of a specific product company. However, the t e n consumer is a far wider term encompassing not only the actual buyer or customer but also all its users that is customers. The customer satisfaction has been conceptualized in several ways. It consists of customers' expectations, performance interactions, pleasure or displeasure, and the evaluation of the benefits of consumption. The financial services companies therefore need to consider market characteristics, which consist of consumer contact. There are many problems posed to financial services sector. The increased customer demands, and sophistication of market puts the financial sector in a competitive environment. The financial services market requires new strategies to survive in the competitive market. The marketing and finance is a special category of financial services industry. In India, there is an ever-widening gap between the demand and supply of marketing and. The government of India has been supporting the marketing and sector through a series of fiscal incentives in the budgets. The Five-year plans have emphasized the need for promoting marketing and finance schemes to the society. The major factor responsible for growth of marketing and finance in India is a massive shortage of marketing and in the country. The demand for houses has gone up due to population growth, a shift towards urbanization, rising income of the families, and the distinct trends towards nuclear families. The other factors that continued to the demand for marketing and are scarcity of developed land, hike in the construction cost, and non-availability of building materials, and skilled manpower, and the highly speculative trend in the cost of land. The increasing demand for marketing and
- 69. 69 naturally has increased the demand for marketing and finance also. There is an exponential growth in marketing and finance market. This has prompted many new players to enter the marketing and finance market. These players have become very aggressive apart from the already established ones. The declining rates of interest, easier terms of consumer credit, availability of marketing and finance from sufficient sources with multiple options, and rebate in payment of taxes are few of those developments that have made a very positive impact of marketing and finance activities in India. The above said factors have prompted commercial banks, public sector and private sector marketing and finance companies to become active in marketing and finance. These developments have increased in an unforeseen competition among the various players and triggered an interest rate war in the marketing and finance industry. It appears that the hous~ngfinance sector will continue to grow at a steady rate soon. The major groups of consumers of marketing and finance are individuals, builders, corporate and marketing and cooperatives. The major players of marketing and finance are divided into four groups as government marketing and finance institutions, specialized marketing and finance institutions, banks and marketing and finance cooperatives. Today, most of the consumers choose between two important sources of marketing and finance agencies that are banks and marketing and finance companies. The lending rates of banks are comparatively lower for marketing and finance, whereas consumers can get better consumed services from marketing and finance companies. The other important
- 70. 70 considerations in selecting a marketing and finance institution are methods of interest calculation, documents requirement, processing time and relevant charges attached to marketing and finance. The Indian marketing and finance sector is crowded with players of all sizes and nature. Due to the decreasing interest rates, the interest rates have become similar among all types of marketing and finance providers. At this moment, it is impossible for the marketing and finance institutions to make a long-term call on interest rate differentials as a competitive tool. So, the only competitive tool to differentiate one marketing and finance company from the other in the current scenario is customer satisfaction. This requires innovative marketing strategies. The marketing mix strategy of marketing and finance consists of variables relating to key elements like product, price, place, promotion, people, procedure and physical evidence. The housing finance being a financial service is considered to possess a high level of marketing effectiveness if it has a close association with its customers. This will lead to the institutions' increased financial performance. The past literatures on marketing effectiveness reveal that most of empirical studies have been based upon the investigation of similarities and differences in effective marketing practices in firms across different countries. The empirical findings of this nature are crucial for business practitioners. They can provide guidelines for the formulation and implementation of effective marketing strategies. The findings of such type will constitute a source of useful information. The managers can learn about the marketing attitudes and marketing organization structures of superior performing firms. The research that links customer satisfaction to other business measures usually defines satisfaction as a Customer's
- 71. 71 overall evaluation of the consumption experience. The customer satisfaction research demonstrates a positive impact of Satisfaction on both market value and accounting returns. Because of a 'front loading" of customer costs and a 'back loading" of revenues over the course of one's relationship with customers, satisfied and loyal customers are more profitable. This predicts the framework that is the relationship from customer satisfaction to business results. The research study was carried out mainly to measure and evaluate the effectiveness of marketing on the business performance. The inside-out performance measure and the outside- in customer satisfaction were taken as business performance measures about marketing and finance activities. The other objective is to study the relationship between customer satisfaction, customer loyalty and performance of the marketing and finance institutions. 6 Chapter 6: Suggestions and conclusion The following are the suggestions given based on the findings of the study. (1)The customer satisfaction should be the main focus of the marketing of the financial products especially to ICICI Bank. These will then result in customer retention in present competitive scenario of Banking Industry leading to improved profitability and growth of the Bank. (2)The marketing personnel at all levels should appreciate the significant components of marketing effectiveness and also should ensure effective
- 72. 72 marketing information and communication facilities. The strategic planning should be adopted deliberately to identify and satisfy the customers’ needs and wants. (3) The marketing will count for nothing if bank lose sight of their customers' needs and wants. The bank should solve the problems faced by the customers and understand their needs, preferences and attitudes in order to have their Financial Products commands in the market. (4)The services of ICICI Bank do not reach majority of the customers in the remote areas. The rural mass should be exposed of the availability of Financial Products and its benefits. This is possibleby personal selling. Most of the rural customers of bank in general do not understand the clear and correctimpact of floating and fixed rates. So, the bank should educate their customers clearly about the interest rate and its impact, without confusions. (5) The legal actions and the penalty charges, if any, for default payment by the customers of the bank should be well informed to the customers before selling of financial products. (6) The ICICI Bank should educate their marketing personnel for a pleasing behavior. This can create a good image among the banking customers. It will be beneficial to spend appropriate money on promoting / marketing of the financial products.
- 73. 73 (7)To withstand in the competitive banking industry in the long run, ICICI Bank should adoptnew and innovative marketing strategies to attract, satisfy and retain the customers. This will definitely increase the bottom lines of the company. The marketing strategies that can be adopted by the bank should be personal selling or through direct selling agents of their financial products and conducting selling camps in big organizations to meet mass employees of that organization at one time directly. This will make the bank to cover a wide range of customers.
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