A Comparative Study on Role of Marketing in Banking Sector

BHILAI(C.G.)

A RESEARCH PROJECT REPORT ON “A comparative study on Role of Marketing in Banking Sector (Private And National Bank)”

Chattisgarh Swami Vivekanand Technical University, Bhilai in Partial fulfillment for the award of Degree of Master of Business Administration Submitted By: Alka Shukla Roll No:-MBA/08/3403 MBA: II – SEMESTER

Approved By:

Mr. A. Jagdish

Guided By:

Mr.Nikhilesh Kariya

Director (RCET) RUGTA COLLEGE OF ENGINEERING AND TECHNOLOGY,

DECLARATI ON

2008-10

DECLARATION

I, “ALKA SHUKLA” a Student of M.B.A – II Semester 2008 ”RUNGTA COLLEGE OF ENGINEERING & TECHNOLOGY Bhilai.” Here by declare that Project Report under the title of “A Comparative study on the Role of Service Marketing in Banking Sector(Private & National Bank) ” is the record of my original work under the guidance of Mr.NIKHILESH KARIYA ,Reader, (Department of M.B.A), R.C.E.T, Bhilai. This report has never been submitted to any else for award of any degree or diploma.

Place: Bhilai

ALKA SHUKLA

Date: -…………………..

MBA II SEMESTER

CERTIFICAT E

CERTIFICATE

This is to certify that the project work done on “A Comparative study on the Role of Service Marketing in Banking Sector(Private and National Bank)”

Submitted

to

“RUNGTA

COLLEGE

OF

ENGINEERING

&

TECHNOLOGY”, Bhilai has been carried out by ALKA SHUKLA a student of MBA II Semester under my guidance and supervision.

Date: -……………………. Seal / Stamp of the Organisation

Guided by Mr.NIKHLESH KARIYA Reader, RCET,Bhilai

ACKNOWLE DGEMENT

ACKNOWLEDGEMENT

In order to complete any project successfully, functional environment & proper guidance of the expert on the subject is inevitable. I am really indebted to my faculty of MBA department Mr.Nikhilesh Kariya under whose guidance I could conduct the research on “A Comparative study on the Role of Service Marketing in Banking Sector(Private and National Bank)” and prepare this project report. I would also like to extend my sincere thanks to the employed, businessmen, professional & any other respondents who have extended their active cooperation while going through the survey on Private and National Bank.

ALKA SHUKLA MBA II SEMESTER

PREFACE

PREFACE

The practical study through, conducting the survey and doing project work has a very significant value. The theoretical knowledge gained in classroom is not fruitful and complete unless and until it is implemented on the practical work either done in the field or inside the organization. It always boosts up our knowledge in pursuing the theoretical studies. It is the internal part of our curriculum to conduct survey and project work, which not only accelerates the managerial skills in us but also broadens our practical prospective. In view of above the survey on “A Comparative Study on the Role of Service Marketing in Banking Sector(Private and National Bank)” has been conducted and the project report is before the readers. If any part of this report is taken up positively by the industry, I will feel that my effort was worthwhile.

***************

CONTENTS

CONTENT:DECLARATION CERTIFICATE ACKOWNLEGMENT PREFACE

CHAPTER- 1

Introduction,

INTRODUCTION

7 P’s of Marketing,Structure of Bank Marketing Defining of the Problem Objective scope & limitation, Literature Review

CHAPTER-2

Research of methodology,Research Design

METHODOLOGY

Method of collection data, Sampling Plan,Limitation

CHAPTER-3 ANALYSIS & INTERPRETATION

Analysis and Interpretation of data

CHAPTER-4

Finding

FINDING AND CONCLUSION

Conclusion

CHAPTER-5

Suggestion

Recommendation SUGGESTION AND RECOMMENDATION

CHAPTER-6

Bibliography

REFERENCE

Questionnarie

CHAPTER-1

INTRODUCTION:Services marketing professionals must determine how to effectively communicate the services process, deliverables, and benefits in order to build client confidence. Tangible signals that indicate services quality and value come from personal

interaction, trusted recommendations, clear communications, equipment used or processes followed, pricing. Services marketing is marketing based on relationship and value. It may be used to market a service or a product.Marketing a service-base business is different from marketing a goods-base business. There are several major differences, including: 1. The buyer purchases are intangible 2. The service may be based on the reputation of a single person 3. It's more difficult to compare the quality of similar services 4. The buyer cannot return the service Service Marketing mix adds 3 more p's, i.e. people, physical evidence, process service and follow-through are keys to a successful venture. The major difference in the education of services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves. Service Marketing has been relatively gaining ground in the overall spectrum of educational marketing as developed economies move farther away from industrial importance to service oriented economies. What is marketing?

Marketing is the flow of goods and services from the producer to consumer. It is based on relationship and value. In common parlance it is the distribution and sale of goods and services. Marketing can be differentiated as: •

Marketing of products

•

Marketing of services.

Marketing includes the services of all those indulged may it be then the wholesaler retailer, Warehouse keeper, transport etc. In this modern age of competition marketing of a product or service plays a key role. It is estimated that almost 50% of the price paid for a commodity goes to the marketing of the product in US. Marketing is now said to be a term which has no particular definition as the definitions change everyday. "Managing the evidence" refers to the act of informing customers that the service encounter has been performed successfully. It is best done in subtle ways like providing examples or descriptions of good and poor service that can be used as a basis of comparison. The underlying rationale is that a customer might not appreciate the full worth of the service if they do not have a good benchmark for comparisons. However, it is worth remembering that many of the concepts, as well as many of the specific techniques, will work equally well whether they are directed at products or services. In particular, developing a marketing strategy is much the same for products and services, in that it involves selecting target markets and formulating a marketing mix. Thus, "instead of talking of 'goods' and of 'services', it is better to talk of 'tangibles' and 'intangibles'"[2]. Levitt also went on to suggest that marketing a physical product is often more concerned with intangible aspects

(frequently the `product service' elements of the total package) than with its physical . sales after service is very imporatant in service sector. properties. Charles Revson made a famous comment regarding the business of Revlon Inc.: `In the factory we make cosmetics. In the store we sell hope.' Arguably, service industry marketing merely approaches the problems from the opposite end of the same spectrum[3].

1.7 P’s OF BANK MARKETING:-

1.11 Product Mix:The banks primarily deal in services and therefore ,the formulation of product mix is required to be in the face of changing business environment conditions.Of course the public sector coomercial banks have launched number of policies and programs for the development of backward regions and welfare of the weaker sections of the society but at the same time it is also right to mention that theire developmentoriented welfare programs are not optimal to the national socio economic requirements.A proportional contraction the number of customers is psychology,the increasing expectation,the rising income,the changing lifestyle, the increasing domination of foreign bans and the changing needs and requirements of the customers at large make it essential that they innovate their service mix and make them of worked class. The development of new generic product, especially when the business environment is regulated is found a difficult task. However, it is pertinent that banks formulate a package in tune with the changing business conditions. Against this background, we find it significant that the banking organizations minify, magnify, combine and modify their service mix.

In the formulation of service mix, the banks can follow two guidelines, first is related to the processing of product to market needs and the second is concerned with the processing of market needs to product. In the first process, the needs to the target market are anticipated and visualized and therefore, we expect the prices likely to be productive. In the second process, the banks react to the expressed needs and therefore we consider it reactive. It is essential that every product is measured up to the accepted technical standards. This is because no consumer would buy a product, which contains technical faults. Technical perfection in service is meant prompt delivery, quick disposal, and presentation of right data, right filing, proper documentation or so. If computers start disobeying, the command and the customers get wrong facts, the use of technology would be a minus point, and you don’t have any excuse for your faults. Marketing aims not only offering but also at creating\innovating the services\schemes found new to the competitors vis-a vis- to the customers. The enhanced customer patronage would be a reward to the bank. The additional attractions, the product attractiveness would be a plus point of your mix, which would help you in many ways. This makes it essential that the banking organizations are sincere to the innovations process and try to enrich their peripheral services much earlier than the competitors. We also find the product portfolio of the banks. While formulating the services mix, it is also pertinent that the bank professionals make possible affair synchronization of core and peripheral services. To be more specific, the peripheral services need an intensive care since the core services are found by and large the same. Innovating the peripheral services thus appears to be an important functional responsibility of marketing professionals. We can’t deny the fact that if the foreign banks have been getting a positive response; the credibility

goes to their innovative peripheral services. Thus, the formulation of product mix is found to be a difficult task that requires world-class professionalism. 1.12.Promotional Mix:Promotion

mix

includes

advertising,publicity,sales

promotion,word-of-mouth

promotion ,personal selling and telemarketing,Each of these service needs to be applied in different degree.These components can be useful in banling ,business in the following ways:Advertising:Advertising is paid form of communication. Banking organizations use this component of the promotion mix with motto of informing, sensing and persuading the customers. While advertising it is essential to be aware of key decision making areas so that instrumentally helps banks at micro and macro levels. Finalizing the budget: This is related to the formulation of the budget for advertisement. The bank professionals, senior executives and even the policy planners are found to be involved in the process. The business of a bank determines the scale of the advertisement budget. In addition, the intensity of competition also plays a decisive role since in the majority of cases; we find a increase in the budget due to a change in the competitor’s strategy. Selecting a suitable vehicle: There are a number of devices to advertise, such as broad cast media, telecast media and print media. In the face of the budgetary provisions, it is necessary to select a

suitable vehicle. For promoting the banking business, the print media is found to be economic as well as effective. Making possible creative: The advertising professionals bear the responsibility of making the appeals, slogans and messages more creative. Here, creative means making the advertisement programs distinct to the competitive organizations, which are active in influencing the impulse of the customers and successful in informing and sensing the customers. This requires an in-depth knowledge of the receiving capacity of the target market for which the advertisements are designed. Testing the effectiveness: It bears an analogous significance that our advertisements are effective in influencing the impulse of customers by energizing persuasion. For making the process effective, it is essential to test the effectiveness before launching of the commercial advertisements. Managers:Instrumentality of branch At micro level, a branch manager bears the responsibility of advertising locally so that the messages reach the target audience. Characters and themes: At apex level it is also important that while advertising the senior executives watch the process minutely and select events, characters having a regional orientation. The popular characters and sensational moments are likely to be impact generating. The theme for appeals and messages also needs due attention. Of course, they have a

legitimate right of advertising but it is not meant that like the goods manufacturing organizations, the service generating organizations also start making invasion on culture. It is necessary to regulate a bias to gender, profession, region or so. Public relations: In the banking services the effectiveness of public Relations is found in high magnitude. It is in this context that difference is found in designing of the mix for promoting the banking services. Telemarketing: The telemarketing is a process of promoting the business with the help of sophisticated communication network. Telemarketing is found instrumental in advertising the banking services and the banking organizations can use this tool of the promotion mix both for advertising and selling. This minimizes the dependence of banking organizations on sales people and just a counter or center as listed in the call numbers may service multi- dimensional services. Telemarketing is likely to play an incremental role in marketing the banking services. The leading foreign banks and even some of the private sector commercial banks have been found promoting telemarketing and they have been getting positive results for their efforts. Word-Of- Mouth: Much communication about the banking services actually takes place by word- ofmouth information, which is also known as word- of- mouth promotion. The oral publicity plays an important role in eliminating the negative comments and improving the services. This also helps the banker to know the feedback, which may simplify the

task of improving the quality of services. This component of promotion mix is not to influence budget adversely or generate additional financial burden. By improving the quality of services and by offering small gifts to the word- of- mouth promoters, bankers can get more business command in their area. The above facts make it clear that such kind of promotion is influenced by a number of factors. The most dominating factor is the quality of services offered. The bank professionals, the frontline staff and the senior executives should realize that degeneration in quality would make this tool effective. 1.13. Price Mix:In the formulation of marketing mix, the pricing decisions occupy a place of outstanding significance. The pricing decisions include the decisions related to interest and fee or commission charged by banks. Pricing decisions are found sinstrumental in motivating or influencing the target market. The RBI regulates the rate of interest and the Indian Banks’ Association controls other charges. In our country, the price mix is more important because the banking organizations are also supposed to sub serve the interests of the weaker sections and the backward regions. Also in making the pricing decisions, the Government Of India instrumentalists or commands everything as a shadow policy maker. This also complicates the price mix for banking sector. Pricing policy of a bank is considered important for raising the number of customers vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position. Banks also have to take the value satisfaction variable in to consideration. The value and satisfaction cannot be

quantified in terms of money since it differs from person to person. Keeping in view the level of satisfaction of a particular segment, the banks have to frame the pricing strategies. The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning. 1.14. The People:Sophisticated technologies no doubt, inject life and strength to our efficiency but the instrumentality of sophisticated technologies start turning sour id the human resources are not managed in a right fashion. We can’t deny the fact that if foreign banks are performing fantastically; it is not only due to the sophisticated information technologies they use but the result of a fair synchronization of new information technologies and a team of personally committed employees. The moment they witness lack of productive human resources even the new generation of information technologies would hardly produce the desired results. In addition to the professional excellence, the employees working in the foreign banks are generally value- based. Thus we accept the fact that generation of efficiency is substantially influenced by the quality of human resources. The quality for banking sector is an aggregation of all the properties, which are found essential for generating the efficiency and projecting a fair image. Even efficiency essentially is supported by ethical dimension, humanity and humanism.

The development of human resources makes the ways for the formation of human capital. Human resources can be developed through education, training and by psychological tests. Even incentives can inject efficiency and can motivate people for productive and qualitative work. 1.15. The Process:• Flow of activities: all the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. • Standardization: banks have got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. • Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. • Number of stores: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. • Simplicity: in banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further.

•Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires. 1.16. The Physical Evidence:The physical evidences include signage, reports, punch lines, other tangibles, employee’s dress code etc. The company’s financial reports are issued to the customers to emphasis or credibility. Even some of the banks follow a dress code for their internal customers. This helps the customers to feel the ease and comfort. Signage:- each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity. Tangibles:- banks give pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services. Punch lines:- punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

2.ROLE OF SERVICE MARKETING IN BANKING SECTOR:Banking marketing consists of identifying the most profitable markets now and in future, assessing the present and future needs of customers, setting business development goals, making plans-all in the context of changing environment. Marketing approach in banking sector had taken significance after 1950 in western

countries

and

then

after

1980

in

Turkey.

New

banking

perceptiveness oriented toward market had influenced banks to create new market. Banks had started to perform marketing and planning techniques in banking in order to be able to offer their new services efficiently. Marketing scope in banking sector

should

be

considered

under

the

service

marketing

framework. Performed marketing strategy is the case which is determination of the place of financial institutions on customers’ mind. Bank marketing does not only include service selling of the bank but also is the function which gets personality and image for bank on its customers’ mind. On the other hand, financial marketing is the function which relates uncongenitalies, differences and non similar applications between financial institutions and judgement standards of their customers. The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be arranged as: Change in demographic structure:- Differentiation of population in the number and composition affect quality and attribute of customer whom benefits from banking services. Intense competition in financial service sector: The competition became intense due to the growing international banking perceptiveness and recently being non

limiting for new enterprises in the sector. Increase in liberalization of interest rates has intensified the competition. Bank’s wish for increasing profit: Banks have to increase their profits to create new markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels. 3.STRUCTURE OF BANK MARKET:Marketing activities of firms begin with determination of the market that they offer their services or goods. Firms must find out the features of the market that it f anging market condition. While marketing manager is arranging the variables under firm’s control, she/he should also adopt the external variables. We could call the factors that affect banks’ market as technological developments, legal arrangements and competition. National Bank - PNB Private Bank

- IDBI

List of Private Banks in India :-



Bank of Punjab



Bank of Rajasthan



Catholic Syrian Bank



Centurion Bank



City Union Bank



Dhanalakshmi Bank



Development Credit Bank



Federal Bank



HDFC Bank



ICICI Bank



IDBI Bank



IndusInd Bank



ING Vysya Bank



Jammu & Kashmir Bank



Karnataka Bank



Laxmi Vilas Bank



South Indian Bank



United Western Bank



UTI Bank

National Banks :-The National Banks name are following:

Allahabad Bank



Axis Bank



Bank of Baroda



Bank of Maharashtra



Canara Bank



Central Bank of India



Dena Bank



Indian Bank



Orienta Bank of Commerce



Punjab National Bank



SBI



State Bank of Mysore



UCO Bank



Vijaya Bank



Punjab & Sind Bank



State Bank of Bikaner& Jaipur



State Bank of Hyderabad



State Bank of Indore



State Bank of Patiala



State Bank of Travancore



Syndicate Bank



United Bank of India



Tamilnad Mercantile Bank Ltd



Lakshmi Vilas Bank



Dhanalakshmi Bank Ltd

DEFINING OF THE PROBLEM:(2005), critics of Indian Regional Rural banks(RRBs) and their prevalling culture have argued that a product-focused rather than a market-oriented approach to new Service Development (NSD) is responsible for their inadequate performance. Banking practioners need to be aware of the fact that market orientation may influence performance in NSD,and related contextual situations. The conceptual relationships proposed,inform those seeking to enhance the performance of RRBs of some of the key internal marketing issues involved in their success, and thus give direction to the development of policies to reduce poverty.

OBJECTIVES OF STUDY:- There are the following objectives:

To analyze the comparative studies of public sector and private sector banks.



To examine various process and sub process of the operational features of

banks. 

To analyze the customer satisfaction status.



To examine the quality elements in the claims of various organizations.



To suggest an alternative system, if required.  To find out market potential of SBI with compare to other bank.

SCOPE OF THE STUDY:Each and every project study along with its certain objectives also have scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one. Scope of the study could give the projected scenario for a new successful strategy with a proper implementation plan. Whatever scope I observed in my project are not exactly having all the features of the scope which I described above but also not lacking all the features.

- Research study could give an idea of network expansion for capturing more compromising with quality. - In future customer requirements could be added with the product and services for getting an edge over competitors. - Consumer behavior could also be used for the purpose of launching a new product with extra benefits which are required by customers for their account

(saving or current ) and/or for their investments. - Factors which are responsible for the performance for bank can also be used for the modification of the strategy and product for being more profitable. - Factors which I observed while doing project study are following1. Competitors 2. Customer Behaviour

3. Advertisement/promotional activities 4. Attitude of manpower and 5. Economic conditions These all could also be interchanged with each other for each other in banks strategies for making a final business plan to effect the market with a positive way without disturbing a lot to market, customers and competitors with disturbance in market shares.

LITERATURE REVIEW:(2006) The globalisation of service industry revealed the necessity to develop the strategic of new market entry. The analysis of market attractiveness facilitated the decision making regarding modes of service firms’ entry and their further expansion into the new markets. The effectiveness of operation in the new markets depends on comprehensive marketing planning through application of marketing techniques. (2003)

This paper, presented in the form of literature review, aims to compare and contrast service marketing theory and practice. This paper firstly introduces the concept of services and analyses the nature of services (intangibility, inseparability, variability and perishability). It secondly develops extended marketing mix for services highlighting the importance of people, physical cues, and processes in service management. Three types of marketing used in service industries are being introduced: Internal Marketing, Interactive Marketing and Evaluation Processes. Apart from that tasks that service forms face are being discussed: Managing Differentiation, Managing Service Quality and Managing Productivity. The paper is illustrated with several examples from the companies operating in service industries. This literature review will analyze past and current research that has been done which relates to the motivations of attendees of arts and cultural performances. This critical analysis of literature contains facts, statistics, and predictions of different motivations to relate to the findings in the surveys collected from the Young Auditorium. It is important to understand why people attend events and performances in order to market to the appropriate target effectively. A special event is seen as an opportunity for leisure or an opportunity to be with friends and family. This is what appeals to potential visitors and they must feel that this is what they will receive.

One such study, of comparative motivations of visitors at four different events, examined the differences of motivations among the different events. When asked ,”Why did you come to this event?” a general interest in the theme of the event accounted for 38.7 percent of the responses for one event and about 20 percent in the other events. This leaves a large percent of unexplained reasoning of attending such events. There are a few other factors in determining why people attended these events .Social reasons are the second leading answer given. Social interaction was more important to the events that sfocused on eating, drinking, and dancing. So this naturally would be a motivating factor. Respondents also placed emphasis in being with and meeting people that share their common interests. These reasons determine the need to seek stimulation, entertainment and excitement. Some respondents even stated, “because I enjoy festival crowds” and “to observe the other people attending the event,” ( 2001). Kotler also looked at the influence of the personal goals that will affect their attitude and behaviors. There are two separate goals that are described by the study. The enrichment goal includes goals for cultural enrichment, educational

experience, and becoming a patron of the arts. Leisure goals include need for entertainment, relaxation, and a social time with friends. These two different perspectives about what one might obtain from attending a performance determine the perceived value of their visit and can explain why frequent, committed visitors enjoy and trust the performance more than an occasional visitor.

CHAPTER-2

RESEARCH METHODOLOGY:The research carried out under the topic,was based on the combination of primary and secondary data.The questionnaire metod was adopted.A sample of 60 branches, which included private sector banks , was for this purpose. The customers and bank officials were surveyed.The sample of strategy applied in this regard was random.The research design was a

blend of descriptive and exploratory method.The customers and staff members were given the questionnaires. The ranking scale method was applied in this process . The research comprises of defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data, making deductions and reaching conclusion; and at last carefully testing the conclusions to determine whether they fit formulating hypothesis. The research process is carried out to a series of step, which are required to be taken in chorological order. The major marketing research steps are as follows:  Problem identification.  Research design.  Fieldwork.  Data analysis & interpretation.  Report Presentation.

Problem Identification:The first and foremost step in this research is to identify the problem chosen for investigation. The step has very significance, once it is said “A Problem well identified is half way to solution”. On the other hand if the problem identified vaguely, a wrong problem is identified, or research is not clarified, then the research result may be completely useless for the management, and the research effort of the investigation will be a futile exercise.

Research Design :-

A research design is a master plan or model for the formal investigation. Once the formal investigation is decided, the researcher must formulate the formal plan of investigation. A research design id the specification of methods & procedure, for acquiring the information needed for solving the problem. The formal investigation plan will concentrate on the selection of sources of information and the selection of methods and procedures for gathering the data. Data gathering forms are prepared. Questionnaires are tested, samples for investigations are planned. There are three basic types of research design:-

Descriptive

Exploratory

Casual

In my research I have used the descriptive research design

Descriptive Research Design:The descriptive study is typically concerned with determining frequency with which some thing occurs or variable vary together this study is guided by an initial hypothesis. Descriptive studies are those studies, which are concerned with describing the characteristics of a particular individual, or of a group.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exits at present. In social science and business research we quit use the term Ex post facto research for descriptive research studies.

Research process in flow chart:-

Define research problem

Review the literature

Formulate hypothesis

Design research (including sample design)

Collect data (execution) Analyse data (test hypothesis if any) Interpret & report

DATA SOURCE:There are two sources of data collection:  Primary data source  Secondary data source.

Source of Data:Primary Data: Primary data are those data, which are obtained for the first time by the investigator himself. In order words, by primary data we mean those data, which are originally, i.e., those in which little or no grouping has been made, the instance being recorded or itemized encountered. The source of primary data used in my project is the questionnaire. Primary are the raw data like raw material. Primary data are according to object of investigation and used without correction. The collection of primary data requires large sum, energy and time. Precautions are not necessary in the use of the primary data. Secondary Data: Secondary data means data that are already available i.e; they refer to the data, which have already been collected and analysed by some one else. When the researcher utilizes secondary data, then he has to look in to various sources from where he can obtain them. In this cause he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data.

BASIC DATA COLLECTION METHOD There are two basic methods available for collection of data these are. 1.

Questionnaire method or survey method.

2.

Observation method.

Questionnaire method: This method refers to all those method which are required for obtaining the needed information from the respondents for the purpose of understanding and predicting some aspect of behaviour of population of interest.

Types of Questionnaire Method: 1. Structure / Disguised. 2. Structure / Non Disguised. 3. Non-structure /disguised. 4. Non structure / Non disguised

The relevant data and information for the survey was collected through both primary source as well as secondary source. The primary data were collected directly from the sample business man customer. Secondary source includes, magazines as well as reports available in the department and Internet. Secondary information mainly provided the background for the survey and help in providing information in the subjects for which sufficient primary information was not available. As a data collection method I have used the Questionnaire Method.

Why a Questionnaire Method has been adopted? Questionnaire consists of a balanced no. Of close ended and open ended questionnaire mainly of multiple choices and scaling technique for some question where it’s necessary. Besides there are sufficient no. Of open ended question for the allowing the respondents to speak freely Questionnaire had been prepared to get the response of the people as per guided by the organizational guide. To provide the best end results without any kind of biasness, which can give a brief idea about sampling and would be beneficial for making inferences for tabulations and calculations with research instruments? I made a survey through questionnaire as prepared by me.

BASIC STRUCTURE OF COLLECTING DATA-

Segmentation of People

Meeting with people

Filling up Questionnarie And Schedule

Research Instrument:There are mainly two type of research instruments for collecting data. 1)

Questionnaires

2)

Mechanical Devices

1)-Questionnaires:This questionnaire consists of asset of questions presented to respondents for their answer. The questions present in the questionnaires are basically of three types. a)

Open ended questions.

b)

Close ended questions.

c)

Dichotomous question.

2)-Mechanical Devices:-

There are various mechanical devices, which are used to study various responses of the respondents. These include galvanometer techistiscope, eye cameras etc. these instruments are however not used frequently.

Sampling Design:Sampling plan consists of sampling unit, sampling size and sampling procedure therefore it is necessary to find out sampling plan if population is 100. Sample Design Consists of: •

Experimental Research design

•

Exploratory Research design

•

Descriptive Research design.

SAMPLING PLANIt is a plan, which determines the type of respondents and their number from whom researcher has to collect the data. This plan calls for four decision. 1)

Sampling Unit.

2)

Sampling Size.

3)

Sampling Procedure.

4)

Medium for collecting sample.

1.Sampling Unit:In this the researcher designs the target population that will be sampled. Once the sampling unit is determined sampling frame has to be prepared so that each and every one in the target population has an equal chance of being sampled.

2.Sampling Size:In this researcher determines the 100 people to be surveyed.

3.Sampling Procedure:The selection of units from sampling frame, termed, as sampling unit is the process of sampling. There are mainly two type of sampling approaches. 1) Probability sampling. 2) Non-Probability sampling. Probability Sampling:In this method every unit in the sampling frame has an equal or known chance of being included in the sample. Non-Probability Sampling:The chance that a sampling unit would be selected to be included in sample cannot be estimated.

4.Medium for Collecting Sample:In this the researcher determines the method through which the subject should be cotacted. This include following three method. 1) Mail questionnaire 2) Telephone interviewing. 3) Personal interview.

Sample Plan:-

Sampling Design

:

Simple Random Design

Sample Size

:

100

Sample Location

:

Bhilai & Durg

Technique use of analysis of DataFor the analysis of the “Percentage & random sampling” has been used. on Percentage & random sampling are used to measure different psychological aspects such as attitudes, perceptions and preference of people with the help of certain pre-defined set of stimuli and instructions. We show our graphical presentation in percentage.

Medium for collecting samplePersonal interview through structured questionnaire was considered most appropriate means for contacting businessman customer

Geographical Area coverThe whole fieldwork has been done in BHILAI-DURG City. Thus in short the research methodology of the survey is following:Research Design

structured questionnaire with open ended &

Data collecting

close Ended question. Primary data collected

through

questionnaire. Secondary data from books,

Sample unit Sample size Sampling technique

Magazines, Internet. - Managers 100 Non probabilistic

Medium

sampling. Personal interview using questionnaire

of

sample Field work

collection

stratified

BHILAI-DURG City.

Generally a research methodology comprises of the following stepsS.No.

General Methodology

Step1.

To decide the objective of the study.

Step2.

To decide the research design

Step3.

To determine the source of data

Step4.

To design data collection form

Step5.

To determine sampling design and sample size.

Step6.

To organize and conduct the fieldwork.

random

Step7.

To process and analyze the collected data.

Step8.

To prepare the research report

LIMITATION1. The time to collect the data for the research was less time. 2. Selection of the techniques. 3. Unwillingness of the respondents to answer the questions, as they do not take them seriously. 4. Incomplete knowledge about the subject, the accuracy of data. 5. They don’t have time so they answer in hurry. 6. The situation in which the customer answering, he may not like to answer is the presence of the people.

CHAPTER-3

ANALYSIS AND INTERPRETATION OF DATA: If you have account than which bank you prefer;? a) IDBI Bank

40%

b) PNB Bank

60%

 Do you Know about IDBI Bank ltd. a) Yes

37%

b)No

73%

 Do you Know about PNB Bank ltd. a) Yes

86%

b)No

14%

 If you choose IDBI Bank,

Why.?

If you choose PNB Bank . Why.?

•

How do you rate the service from your bank? IDBI

PNB

a) Poor

85%

b) Average

30%

70%

c) verygood

39%

61%

d)excellent

20%

80%

•

15%

. Which methods do you use to manage your banking?

IDBI

PNB

a) Internet Banking

15%

85%

b) Paper Statements

80%

20%

c)Telephone Banking

25%

75%

d) Using ATM

85%

15%

IDB

•

PN B

.Do the bank serve you in a timely manner .? IDBI

PNB

a)Yes

27%

73%

b)No

73%

27%

PNB

IDBI

•

Do bank provide you with all the information you need.?

IDBI a)Yes b)No

PNB

67%

33%

33%

67%

IDBI

•

PNB

Do the Bank explain their service and product clearly.? IDBI

a)Yes

56%

b)No

44%

PNB 44% 56%

PN B

IDB I

•

What kind of relationship do you have with bank.? IDBI

PNB

a)Personal

25%

17%

b)Business

57%

69%

c)Both

18%

14%

Questionnarie Private Bank National Bank Safe Place for your money

IDBI Bank 23 78 67

PNB Bank 77 22 33

Need More Advertisment Good bank for Consumer

78 35

22 65

 Comparative study with major competitors on Basic parameters Parameters/Ranks

IDBI Bank

PNB Bank

Product

35

65

Manpower

46

54

Net-banking

22

78

Phone-Banking

43

57

Investment Scheme

27

73

Network

77

23

Creatibility

54

46

CHAPTER-4

Findings:-

1. The credibility of IDBI bank is good in comparison to its competitors as GOI (Government Of India) is a major share holder in the company.

2. IDBI bank has potential a tapped market in Bhilai-Durg in region and hence has an opportunities for growth. 3. The products of IDBI bank has good credibility in the region compare to its competitors. 4. The advertisement of the bank was very effective from the first day of its airing till the fifth day and there after it starts declining. 5. The initial balance for A/C opening is Rs, 5000/- in IDBI Bank and that’s why people are reluctant in opening the same. 6. The initial balabce for A/C opening is Rs,500/- in PNB Bank.

Conclusions:i.

Consumers of Bhilai-Durg have good awareness level about IDBI bank as well as about its services and products.

ii.

The advertising campaign has successfully been able to increase the market

iii.

share of IDBI in Bhilai-Durg .ANK LTD.

iv.

The modern days technology like internet banking, phone banking, used by IDBI bank for providing banking services has sent positive signals in the mind of consumes.

v.

The network of IDBI in Bhilai-Durg is lagging behind a little than its competitors like ICICI bank and HDFCbank.

vi.

It can be distilled from data that IDBI bank has good market share as compared to its competitors considering the amount of resources deployed by them in the market.

CHAPTER-5

Suggestions and Recommendations

Suggestions:i. The Bank will have adopt to ythe diversified services like selling insurance,etc,so that they can be of multiple uses. ii. The business transaction hours can be flexible,The customer may have access any time whenever it is required. iii. The can open their branches at the shopping place so that customers may have easy availability of finance . iv. Customer complaint system can more effective and informative. v. veloping strong cultural values vi. Social Integrity vii. Bonding with customers viii.

Responsiveness

ix. Fast & Decentralized decision making x. Diversification xi. Awards and Incentives based pay structure xii. Globalization

Recommendations:i.

Since there is only two branch of IDBI bank and only three atms in Saket, so it is necessary for IDBI bank to open more branches and install more atms to serve the vast market of Durg especially.IDBI

NLTD.

ii.

More resources should be allocated in the market of Saket as there is big untapped marke in saket, so it becomes necessary for IDBI bank for taking an edge over the competitors.

iii.

A short advertising campaign in Bhilai-Durg has produced good results in a short span of times, so to gain long term benefits is very necessary for IDBI bank to carry on this campaign ith more intensity.

iv.

Besides opening more branches it should also look for opening some extension counter in Resali and one in Rajnandgaon.

v.

As Government is the majority share holder in the shares of IDBI bank, which makes this bank more reliable than other private banks, this thing can be used in the favour of IDBI bank by making people aware about this fact and winning their faith.

CHAPTER-6 REFERENCE:-

BIBLIOGRAPHY:Websites: •

www.scribd.com

•

www.wikipedia.com

•

www.mutualfundsindia.com

•

www.icmrindia.com

•

www.papers.ssm.com

•

www.iadb.org

•

www.moneycontrol.com

•

www.yahoofinance.com

•

www.rediffmoney.com

•

www.nseindia.com

•

www.investopedia.com

Journals & other references: •

Icfai Journals of Service Marketing

•

The Economic Times

•

Business Standard

•

The Telegraph

•

Business India

•

Fact sheet and statements of various fund houses.

APPENDIX:QUESTIONNARIE:Respected Sir/Madam, I am a student of M.B.A 2nd Semester of Rungta College of Engineering and Technology. I am doing a research on “Comparative study of role of services marketing in Banking sector(Private & National Bank)”. In this regard I need your kind cooperation which will be kept confidential and will be kept for the academic purpose. The success of this research will depend on your true and clear response. There are the following questions: Demographic Information:•

Gender:a) Male

•

•

b) Female

Age:a) Above 18

b) 25-35

c) 35-50

d) Above 50

Profession:a) Student

b) Service

c) business

d) Housewife

e) Any Other •

Average monthly Income: a) Less Than 1,00,000

b) 1,00,000-1,25,000

c) 1,25,000-1,50,000

d) More than 1,50,000

 Do you have Account in any Bank.? a) Yes

b) No

 If you have account than which bank you prefer;? a) IDBI Bank

b) PNB Bank

 Do you Know about IDBI Bank ltd. a) Yes

b)No

 Do you Know about PNB Bank ltd. a) Yes

b)No

 If you choose IDBI Bank,

Why.?

If you choose PNB Bank . Why.?

•

How do you rate the service from your bank?

IDBI

PNB

a) Poor

a) Poor

b) Average

b)Average

c) verygood

c)Verygood

d) excellent

d)excellent

•

. Which methods do you use to manage your banking? IDBI

PNB

a) Internet Banking

a) Internet Banking

b) Paper Statements

b) Paper Statements

c)Telephone Banking

c)Telephone Banking

d) Using ATM

d) Using ATM

•

IDBI

.Do the bank serve you in a timely manner .? PNB

a)Yes

a)Yes

b)No

b)No

•

Do bank provide you with all the information you need.?

IDBI

PNB

a)Yes

a)Yes

b)No

b)No

•

Do the Bank explain their service and product clearly.?

IDBI

PNB

a)Yes

a)Yes

b)No

b)No

•

Overall how would you rate the service you receive from bank.?

IDBI

PNB

a)Excellent

a)Excellent

b)Good

b)Good

c)Satisfactory

c)Satisfactory

d)Poor

d)Poor

•

What kind of relationship do you have with bank.?

IDBI

PNB

a)Personal

a)Personal

b)Business

b)Business

c)Both

•

c)Both

Do Bank offer option to meet your specific needs.?

IDBI a)Yes

PNB a)Yes

b)No

b)No

• •

What is your satisfaction level.?

IDBI a) Fully Satisfied b) fairly well Satisfied  c) Very dissatisfied

PNB a) Fully Satisfied b) fairly well Satisfied c) Very dissatisfied

•

Overall, how satisfied are you with the service you receive?

IDBI a) Very Satisfied

PNB a) Very Satisfied

b) Satisfied

b) Satisfied

c) Dissatisfied

c) Dissatisfied

d) Very Dissatisfied

d) Very Dissatisfied

  •

.How did Bank contact their customer service?

IDBI

PNB

a)Email

a)Email

b) Fax

b) Fax

c)Telephone

c)Telephone

d) Web

d) Web

e)In person

e)In person

(Answering only with YES or NO)

Questionnarie Private Bank National Bank Safe Place for your money Need More Advertisment Good bank for Consumer

IDBI Bank

PNB Bank

IDBI BANK LTD.  Comparative study with major competitors on Basic parameters Parameters/Ranks Product Manpower Net-banking Phone-Banking Investment Scheme Network Creatibility

IDBI Bank

PNB Bank