Black Book Bannk of Baroda
Black Book Bannk of Baroda
Black Book Bannk of Baroda
CHARACTERISTICS OF MARKETING:-
7. Concentrates on customers: -
A thorough understanding of the customer is common to all the four elements.
The focus point of marketing mix is the customer, and the marketing mix is
expected to provide maximum customer satisfaction.
Functions:-
1. Marketing Planning:
5. Branding:-
Every producer/seller wants that his product should have special identity in the
market. In order to realize his wish he has to give a name to his product which
has to be distinct from other competitors. Giving of distinct name to one’s
product is called branding.
(i) After-sales-services
7. Pricing of Products: -
It is the most important function of a marketing manager to fix
price of a product. The price of a product is affected by its cost, rate of profit,
price of competing product, policy of the government, etc. The price of a
product should be fixed in a manner that it should not appear to be too high and
at the same time it should earn enough profit for the organization.
8. Promotion: -
9. Physical Distribution: -
In the modern times, with the emergence of latest marketing techniques even
the poorer sections of society have attained a reasonable level of living
standard. This is basically due to large scale production and lesser prices of
commodities and services. Marketing has in fact, revolutionized and
modernized the living standard of people in modern times.
This enlarged role of marketing has created many employment opportunities for
people. Converse, Huegy and Mitchell have rightly pointed out that “In order to
have continuous production, there must be continuous marketing, only then
employment can be sustained and high level of business activity can be
continued”.
However, someone must actually go into the market place and obtain dollars
from society in order to sustain the activities of the company, because without
these funds the organization will perish.”
For example, if you ran a radio advert that encouraged people to visit your
website, but didn’t optimize your website for the visitors, it’s likely you missed
out on sales or enquires as a result.
Putting together a marketing strategy is the best way to ensure that all the effort
and investment you put into marketing is working towards achieving the goals
you have for your business.
How a marketing strategy can help you reach your business goals
Writing a strategy will help you determine which marketing tactics are most
likely to help you achieve your goals and reduce the likelihood of your
marketing activity failing.
An integrated approach: -
We’ve found that the very best results come from an integrated approach. When
all you’re online and offline marketing activity is working seamlessly together it
provides a consistent experience for people who encounter you, making it more
likely that they might become a customer in the future.
A strategy helps you get clear about what message you want to be conveying
with your marketing activity, and exactly who you want to see it. This will
ensure you are targeting the right people (and not just everyone).
Looking to grow.
Seeing a decline in sales.
Launching a new product or service.
Moving into a new market.
Looking to target a new audience.
Seeing increased competitor activity.
NEWPRODUCTDEVELOPMENT:-
New product development tends to happen in stages. Although firms often go
back and forth between these idealized stages, the following sequence is
illustrative of the development of a new product:
At later phases of the PLC, the firm may need to modify its market strategy. For
example, facing a saturated market for baking soda in its traditional use, Arm &
Hammer launched a major campaign to get consumers to use the product to
deodorize refrigerators. Deodorizing powders to be used before vacuuming
were also created.
2. PRICE:-
Price is the value that is put to a product or service and is the result of a
complex set of calculations, research and understanding and risk taking
ability. A pricing strategy takes into account segments, ability to
pay, market conditions, competitor actions, trade margins and input costs,
amongst others.
Objectives of pricing:-
From the marketer's point of view, an efficient price is a price that is very
close to the maximum that customers are prepared to pay. In economic
terms, it is a price that shifts most of the consumer economic surplus to the
producer. A good pricing strategy would be the one which could balance
between the price floor (the price below which the organization ends up in
losses) and the price ceiling (the price be which the organization experiences
a no-demand situation).
The two methods of pricing are as follows:-
A. Cost-oriented Method
B. Market-oriented Methods.
There are several methods of pricing products in the market. While selecting the
method of fixing prices, a marketer must consider the factors affecting pricing.
The pricing methods can be broadly divided into two groups—cost-oriented
method and market-oriented method.
A. Cost-oriented Method: -
Because cost provides the base for a possible price range, some firms may
consider cost-oriented methods to fix the price.
Since only the cost and the desired percentage markup on the selling price
are known, the following formula is used to determine the selling price:
Average unit cost/Selling price
3. Break-even pricing:-
In this case, the firm determines the level of sales needed to cover all the
relevant fixed and variable costs. The break-even price is the price at which the
sales revenue is equal to the cost of goods sold. In other words, there is neither
profit nor loss. For instance, if the fixed cost is Rs. 2, 00,000, the variable cost
per unit is Rs. 10, and the selling price is Rs. 15, then the firm needs to sell
40,000 units to break even. Therefore, the firm will plan to sell more than
40,000 units to make a profit. If the firm is not in a position to sell 40,000
limits, then it has to increase the selling price.
For instance, if the total investment is Rs. 10,000, the desired ROI is 20 per
cent, the total cost is Rs.5000, and total sales expected are 1,000 units, then
the target return price will be Rs. 7 per unit as shown below:
5000 + (20% X 10,000)/ 7000
The limitation of this method (like other cost-oriented methods) is that prices
are derived from costs without considering market factors such as competition,
demand and consumers’ perceived value. However, this method helps to ensure
that prices exceed all costs and therefore contribute to profit.
Some firms may fix a price to realize early recovery of investment involved,
when market forecasts suggest that the life of the market is likely to be short,
such as in the case of fashion-related products or technology-sensitive products.
Such pricing can also be used when a firm anticipates that a large firm may
enter the market in the near future with its lower prices, forcing existing firms to
exit. In such situations, firms may fix a price level, which would maximize
short-term revenues and reduce the firm’s medium-term risk.
B. Market-oriented Methods:-
2. Going-rate pricing:-
In this case, the benchmark for setting prices is the price set by
major competitors. If a major competitor changes its price, then the smaller
firms may also change their price, irrespective of their costs or demand.
b. Premium pricing:-
A firm may charge a little higher if its products have some additional
special features as compared to major competitors.
c. Discount pricing:-
A firm may charge a little lower price if its products lack certain
features as compared to major competitors.
3. Sealed-bid pricing:-
This pricing is adopted in the case of large orders or contracts,
especially those of industrial buyers or government departments. The firms
submit sealed bids for jobs in response to an advertisement.
In this case, the buyer expects the lowest possible price and the seller
is expected to provide the best possible quotation or tender. If a firm wants to
win a contract, then it has to submit a lower price bid. For this purpose, the firm
has to anticipate the pricing policy of the competitors and decide the price offer.
c. Area pricing:-
Here different prices are charged for the same product in
different market areas. For instance, a firm may charge a lower price in a new
market to attract customers.
1. Price-quality relationship: -
Customers use price as an indicator of quality, particularly for products
where objective measurement of quality is not possible, such as drinks and
perfumes. Price strongly influences quality perceptions of such products.
4. Competition: -
A company should be able to anticipate reactions of competitors to its
pricing policies and moves. Competitors can negate the advantages that a
company might be hoping to make with its pricing policies. A company reduces
its price to gain market share
5. Negotiating margins: -
A customer may expect its supplier to reduce price, and in such situations
the price that the customer pays is different from the list price. Such discounts
are pervasive in business markets, and take the form of order-size discounts,
competitive discounts, fast payment discounts, annual volume bonus and
promotions allowance.
3. PLACE: -
Retailers: The organization that sells products directly to consumers and end
users. As they are selling to consumers for personal use, the goods are usually
sold in small quantities.
4. PROMOTION:-
TYPES:-
There have been different ways to promote a product in person or with different
media. Both person and media can be either physically real or virtual
/electronic.
In a physical environment:-
Traditional media:-
Digital media:-
5. PEOPLE:-
There have been different ways to promote a product in person or with different
media. Both person and media can be physically real or virtual /electronic.
In a physical environment: -
Traditional media: -
Digital media:-
Brands can explore different strategies to keep consumers engaged. One popular
tool is branded entertainment, or creating some sort of social game for the user.
The benefits of such a platform include submersing the user in the brand's
content. Users will be more likely to absorb and not grow tired of
advertisements if they are, for example, embedded in the game as opposed to a
bothersome pop-up
Personalizing advertisements is another strategy that can work well for brands,
as it can increase the likelihood that the brand will be anthropomorphized by the
consumer. Personalization increases click-through intentions when data has
been collected about the consumer.
6. PROCESS: -
Process is another element of the services marketing mix or 7Ps.There is a
number of perceptions of the concept of process within the business
and marketing literature. Some see processes as a means to achieve an
outcome, for example – to achieve a 30% market share, a company implements
a marketing planning process.
7. PHYSICAL EVIDENCE: -
The elements of marketing mix which customers can actually see or
experience when they use a service, and which contribute to the perceived
quality of the service, e.g., the physical evidence of a bank could include the
state of the branch premises, as well as the delivery of the banking service ...
If you have read the service marketing mix, then you would know that
physical evidence is one of the additional 3 Ps of the service marketing mix.
This is because it is specifically used for services. The problems with services
are of differentiation. How do you differentiate a premium restaurant from a
regular restaurant? To create such differentiation physical evidence is used.
3. Cost Consideration:
To conduct marketing research systematically is a luxury. A firm
needs money for research design, data collection, data analysis,
interpretation, and report preparation. Statisticians and computer
experts charge heavy fees. When research is conducted regularly, a
company has to maintain a separate well-equipped marketing
research department. Marketing research has become costlier. So, it
is difficult for medium and small companies to afford.
4. Problem of Rapid Change:
Today’s market is characterized by tremendous changes. Whatever
is applicable or relevant today is out-dated tomorrow. Due to rapid
changes, marketing research cannot serve the purpose. Research
results or outcomes available after the specific time period seem
irrelevant or meaningless.
9. Applicability or Use:
Contribution of research project depends not only on quality and
reliability alone, but also the proper use of information. Many
times, marketing research reports remain just a formality for top
management. Recommendations are neither considered seriously
nor implemented fully.
The Indian banking sector is growing at a faster rate and among all the Indian
banks, Bank of Baroda is one of the predominant public sector banks that is
known for passing on the smartest banking solutions to their customers.
Bank of Baroda is one of the oldest banks in India. It has been growing
consistently for over a decade now. How the bank has utilized marketing
strategies and implemented them to stay powerful is something worth going
through.
Today, in the Bank of Baroda case study, we shall discuss various aspects of
Bank of Baroda’s marketing outlook by going through the 4Ps and 7Ps of the
marketing mix, its approach towards the market by understanding its marketing
strategies and campaigns, both digital and offline, along with a competitor
analysis.
1. PRODUCT: -
You may also apply for a debit card, mobile banking and net banking on your
savings account, though charges may apply. With net banking, you can access
your bank statements and make payments directly from your savings account.
You can use the debit card linked to your savings account to withdraw cash from
ATMs and to pay merchants.
Bank of Baroda pays interest on all savings accounts, the interest of which, is
transferred to your savings account every quarter, though it is calculated daily.
Eligibility Criteria
PSU Employee
2 KYC documents
Employment ID
Zero
No upper limit
Not applicable
7 Overdraft facility
8 Cheque books
9 Remittance
Six DD/BC free per quarter for personal use. Maximum Amount Rs
500000/-
12 Debit Card
Net monthly salary above Rs 1.00 lac to Rs 2.00 lac:- RuPay Platinum
Debit Card
Net monthly salary more than Rs 2.00 lacs:- VISA Platinum Debit
Card
Rate of Interest: As applicable for FCNR (B) Scheme from time to time.
Discounts on locker rentals, demat AMC, debit card issuance and renewal fee and
issuance fee of prepaid cards.
Different variants of debit cards available specific to each scheme with issuance
fee waived for the first year.
Salary band Net monthly salary credit of less than Rs. 50,000
Passport
Valid Visa
PAN/FORM60
Features:-
Baroda Pay Point: Accept online/offline payment through all modes with
Low transaction fee and initial investments.
Types of Loans: -