Consumer Behaviour Aspects and Promotion of Banking Services


By

Arun Mittal
MBA, M.Phil
Faculty-Management
Birla Institute of Technology
(Deemed University)
Noida Campus

Priya Mittal
Student, MBA (Final Year)
Kedarnath Aggarwal Institute of Management
Charkhi Dadri, Distt. Bhiwani
 


Introduction

Consumer behaviour is very complex phenomenon, which is considered primarily in marketing decisions. It has been rightly said "Understand, you do not understand, you will not understand, you cannot understand all your customers but still you have to do your best to understand them."

In consumer behavour this is very difficult to make a uniform theory that may suggest that a particular individual or group will behave in a particular manner. Consumer behavior is dynamic and to be studied regularly. Increasing awareness, living standards and urbanization has led to increase in the changing preferences and the same has forced the marketers to change their product features, packaging styles, distribution channels and so on. There is a famous saying the "Success has a simple formula-Do your best and people must like it". Similarly, for marketers the advice is- offer the best and customers must like it'. Identical products always have their life cycle the product life cycle suggests that there is a level of maturity of the product and after that no more consumers can be attracted for that. The case is very same with preferences of consumers that they always like some innovative and different products to use. The study of consumer behavior is compulsory to know about likes and dislikes of consumers from time to time so that the products and services can be offered accordingly. Customers have their own unique needs, demands and preferences in a particular segment. Marketers have to study customers in particular segment. Really interesting it is, the study of consumer behavior can make it possible that after observing and examining the behavior of consumer a marketer can present his product in such a way that the product can capture the market. However it was very difficult to sell that product earlier. Consumer behavior indeed gives every possible answer to the complex questions concerned with consumer's buying reasons.

The following diagramme will tell about the all marketing decisions taken in services industry or banking services. These all are essential decisions which are concerned are essential ingredients of services marketing mix. The analysis has been done in the context of banking services.


Source: Mittal, Arun, Advertising and Sales Promotion, Wisdom Publication, New Delhi, Edition -2008, p-225

When customer is treated as the king of the market, the study of consumer behaviour becomes more important for marketing decisions. There is no doubt that the behaviour is the base of marketing decisions.

Banks are defined as the "Organizations, which accepts deposits from public and give loans from the general public."   In the present time they are over and above this definition. Banks are providing innovative services with innovates styles. ATMs, Credit cards and Internet banking have changed the quality of delivery of services of banks. Banking services are growing with many new additions such as money transfers, Bankassurance, NRI services and so on. Promotion of service has been a challenging task. Banking services being of a sophisticated nature should be promoted carefully, clearly and innovatively.

Mass Media Advertising: Most Preferred mode for marketing of Banking Services

Mass media advertising includes TV commercials and advertising in national level newspapers which have a wide coverage. Advertising in these has made maximum people aware about the offerings of the banks and established most of the bank names as big brands. In a recent survey ICICI Bank has been considered as the most popular banks in private sector. The use of umbrella branding works well in promotion of banking services. Different types of advertisement campaigns have been seen in form of TV commercials and as print ad in newspapers. Print ads mainly focus on corporate image advertising of banks as well as a new offering of the bank such as increase in interest rate on deposits or decrease in the interest rates in loans and so on. TV commercials mainly focused on corporate advertising, where banking service is promoted as a whole rather than a particular product of banks.

Themes and appeals used in TV commercials of banking:

Advertising appeal is the method used to draw the attention of consumers and to influence their feelings toward the product, service, or cause. There are hundreds of different appeals that can be used as the foundation for advertising messages. These are the central idea of an ad which has been used to catch the attraction of customer by heart. The theme of a commercial strikes a person in depth and forces him/her to act in the desired manner. Generally advertising appeals are broken into two categories: rational appeals and emotional appeals.

Uses of Appeals in Banking Services Advertising:

Name of Bank

Broad Category

Personal/Social

Marketing Approach

Theme/Punch Line

Union Bank of India

Emotional Appeal

Social/Parental Affection

Security and Future benefit

Because your dreams are not only yours.

Royal Bank of Scotland Group

Emotional Appeal

Personal/Style

Differentiation

In years a player comes who change the way the game is played.

HSBC

Rational

Practical

Customization of Service Offering

Not two people are the same

IDBI

Rational

Practical

Comprehensiveness of Services offering

Banking for All

State Bank of India

Emotional

Personal/Reliability
Security

Supporting the customers

With you all the way


Personal Selling is being very much popular and effective for private banks in India. It is concerned with face to face meeting with the customer and making the presentation of the service offering to the prospect and making the person customer of the bank. This process has its own advantages and disadvantages. Banks may have some complex service offer which may include so many charges and facilities of different types. The biggest advantage of personal selling in banking services is that the salesperson can make the prospect well understood about the product. Further customers may prefer it because they need not to go anywhere the sales person comes to them. But there is certain limitation also people usually do not give their time to meet and talk on issue. It also does not become cost effective if the sales are not closed in a handsome number. Banks are going to be societal now and taking care of environment the plantation Bank of Baroda and Punjab National Bank is the examples of the same. Consumers are always emotional about the Brands doing social and national services. Banks wants to win the faith of the customers and also wants to come out from their typical financial image. Societal marketing really helps to attain this objective.

Sales promotional has become popular due to the popularity of the usage of debit and credit cards. The offers are also given to the customers for registering and transacting with internet banking. For example recently HDFC bank has come with the offer where a flip book light is free on opening an account and a DVD of famous movie on shopping with Debit Card. Further there are lots of other schemes also giving discount and other gifts on different types of purchase on debit and credit card of the bank. The corporation/Brands such as Indiatimes shooping, Barista, Mudra Pure Glod, Ayush Therapy Center, VLCC Slimming Beauty Fitness, Welhome, Dr. Batra's Multispeciality Hospitals, Javed Habib, Gini & Jony, Vishal Mega mart, Dominos and Book my Show have clubbed with the bank to provide this promotion to the customers. However the sales promotion has its nature that it is always for a particular time being. The purpose of sales promotion is to enhance the sales in particular time duration. The sales promotion offers are redesigned frequently for effective promotion in sales. Consumers feel happy when they get something extra then the regular utility. Sales promotion offers really attract customers.

In present time the most popular tool for promotion of banking services has become Internet Marketing of services. E-Advertising is being very much popular. In city areas of India, people use internet so frequently. Studies tell that they use internet mostly for checking their mails, finding results and educations and research purposes. The e-advertising of banking services not only promote the services by giving offers but it also interacts with the person and a potential customer can purchase the product with the help of this. However internet advertising in pop ups irritates the internet users but advertisements done on home page of any website such as email service provider is useful and customers get knowledge about the new banking services and promotions. When they see something in front of their eyes they can remember it much.

In brief of the study, this can be concluded that consumer behaviour is the base of all marketing activities and promotional strategies are also the part of marketing so they are also designed by considering all the aspects of consumer's behaviour.

References:

Gupta, S L and Arun Mittal (2008), Comparative Study of Promotional Strategies of Public and Private Sectors Banks in India, Asia Pacific Business Review, Vol IV, No. 3, pp-87-93.

Mittal, Arun, (2008) Advertising and Sales Promotion, Wisdom Publication, New Delhi

Gupta, S L, Arun Mittal, (2008) Mobile Banking: Present Status and Future Perspectives, 'The Analyst', ICFAI University Press, pp-98-100.

www.hdfcbank.com/2MO
 


Arun Mittal
MBA, M.Phil
Faculty-Management
Birla Institute of Technology
(Deemed University)
Noida Campus

Priya Mittal
Student, MBA (Final Year)
Kedarnath Aggarwal Institute of Management
Charkhi Dadri, Distt. Bhiwani
 

Source: E-mail February 27, 2009

          

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