SUPPORT SERVICES

11/7/2017
MARKETING OF SERVICES

Dr.P.R.Kulkarni
PRODUCTS

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Session 5- Dr.P.R.Kulkarni
MARKETING
Generally, marketing is understood as selling of products or
services.

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Some consider advertising or promoting a product as
marketing.
The idea of marketing is much wider. It is essentially

Dr.P.R.Kulkarni

related to customer.
Market : the word market is common parlance refer to the
place where goods can be sold or bought.
Marketing :Marketing is the business function that
identifies the current unfulfilled need and wants, defines
and measures their magnitude, determines which target
markets the organization can best serve and decide on
appropriate products, services, and programmes to serve
these market, thus market serves as link between a societys
need and its pattern of industrial response-Kotler
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MARKETING MANAGEMENT
American Management Association has defined
Marketing Management as Marketing Management is

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the process of planning and executing the conception,
pricing , promotion and distribution of goods ,services and
idea to create exchanges with the target groups that satisfy

Dr.P.R.Kulkarni
customer and organizational objective.
Functions of Marketing Management :The functions of
marketing management are : Analysis, Planning,
Implementation and Control..
Analysis : There is need to understand customer,trends
and changes in the environment and internal strength and
weaknesses for drawing out effective market plan.
This require collection of information on these ares.

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 Planning : it covers both strategic planning for the
long term marketing direction of the firm selection of
target, estimate of requirement resources.
Implementation : The implementation of strategic

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and tactical plan requires staffing, allocation of task,
budgeting ,
Control :Measurement and evaluation of progress

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against the goals and target spelt.
Products and services :A Product is defined as
anything that has the capacity to provide the
satisfaction, use or perhaps the profit desired by the
customers. Product & service are used
interchangeably in banking parlance.
Banks products are their deposits / borrowing
schemes / other products like credit card or foreign
exchange transaction which are tangible and
measurable whereas service can be such products +
the way / manner in which they are offered.
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 What is services ? Kotler defines services as A
services is any act or performance that one party can
offer to another that is essentially intangible and does

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not result in ownership of any things. Its production
mayor may not be tied to a physical product
Characteristics of Service products :

Dr.P.R.Kulkarni
Intangibility : not in in the physical form lecture
given.
Inseparability : The consumer presence is in most
cases necessary at time of production.
Heterogeneity : The services offered are not similar
all time to all customer.
Perish ability : This means that service unit can not
be stocked.
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MARKETING OF FINANCIAL SERVICES
The characteristics of services such as intangibility, in
separation, ,heterogeneity and perishability, are

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present in financial services too.
Financial Market in India consists of credit market,
equity market, insurance market,the money market.

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Mutual funds.
Marketing of Nanking products :Banking marketing is
the aggregate function, directed at providing services
to satisfy the customers financial needs and wants ,
more effectively than competitors keeping in view the
organizational objectives of the bank. It highlight on
(1) Banks provide services (2) Aim is to satisfy
customer need (3) Nature of need financial products (4)
competitive element ,effective and
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The team model includes:
Service level management: Using service level
agreements as a basis for process/service improvement.
User support: Making end-users aware of the facilities
available and be able to exploit them to the best effect in

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support of their needs.
Requirements/Change management: Monitoring the
requirements of end-users and taking them into account

Dr.P.R.Kulkarni
during the ongoing development and delivery of services
and systems.
Relationship management: Managing relationships
with providers at all levels including: strategic, service
delivery and contractual levels.
Service management: Establishing suitable baselines
on which to track performance relating to service delivery
and capability improvement.
Business continuity: Establishing an ongoing appraisal
of risk and assuring that the necessary service
components are recognized within business continuity 7
plans; ensuring that business continuity measures are
adequately tested.
MANAGING SERVICE DELIVERY
What needs to be done to maintain
service delivery
Establish what levels of service are There should be a detailed
requiredService level
management is the process of
managing the performance
provided to the customer as
specified in the contractual
performance metrics.
It balances cost and quality of
services in order to provide the
customer with value for money.
Points to be considered
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agreement of the required
service levels and thus the
expected performance and
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quality of service to be
delivered.
Where the provider is an in-house
department, the level of
service required will be set out
in a Service Level Agreement
(SLA).
Wherever there are formal
agreements, on service levels
as elsewhere, there is often a
need for some flexibility. 8This
is particularly true in the early
stages of an agreement.
MANAGING SERVICE DELIVERY (Contd.)

Compare prices and learn from Price comparisons offer a quick

others. and effective way to gauge

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Benchmarking is the practice of whether you are getting value
making like-for-like for money.
comparisons between Providers could be obliged to

organizations with the aim of
ensuring continuing value for
money, getting better
performance, and improving
business practices.
Dr.P.R.Kulkarni
benchmark their own costs, or
those of their subcontractors,
by the contract.
Compare the value for money
you are getting with what
other organizations are getting.
Compare the way you manage
contracts with the way other
organizations manage theirs.

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MANAGING SERVICE DELIVERY (Contd.)

Manage the risks. Risks can relate to many aspects

Risk is defined as uncertainty of of the contract, including
outcome, whether positive fluctuation in demand, lack of

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opportunity or negative threat. provider capacity, change in
In the area of contract requirement and transfer of
management, managing risk skilled staff (on either side).

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means identifying and controlling All risks should be identified
factors that may have an impact and managed.
on fulfillment. Risks should be placed with the
party best placed to manage
them possibly the provider,
although they will want
compensation in return.
Risks placed with the provider
are referred to as transferred
risks.
Business risk cannot be
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transferred to the provider. The
final responsibility for achieving
outcomes remains with the
MANAGING SERVICE DELIVERY (Contd.)
Measure quality as well as Quality measures might assess
quantity. such aspects as completeness,
The quality of the service being availability, capacity, reliability,

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delivered must be assessed. flexibility and timeliness, among
This means creating and using others.
quality metrics - measurements Some aspects of a service may be

Dr.P.R.Kulkarni
that allow the quality of a service
measurable by numerical
to be measured.
Ensure means;
Aim to othersoptimisemaytherequire
ratio
Ensuring value for money is subjective
between assessment.
value and cost.
about the trade-off between Realising that value for money
service quality and cost. is not synonymous with lowest
A key objective for the cost.
management of any contract is to Carefully consider all the
ensure that it continues to benefits that the contract
achieve value for money over provides in relation to the
time. ongoing investment it requires.
All costs associated with the
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contract must be taken into
consideration: set-up costs,
recurring costs, fixed costs, unit
 MANAGING SERVICE DELIVERY (Contd.)

Ensureservice continuity It will normally be the

A major part of contract providers responsibility
management is to manage service

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considering service continuity, and this will
continuity what will be stipulated in the

happen if the service fails
or is interrupted.
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contract but it will need
to be taken into account
in the organizations
wider business continuity
plan.
Those aspects of a service
identified as critical may
require careful
consideration and/or the
creation of a Business 12
Continuity Plan.
PRODUCT
Product :Kotler has defined product thus A product is any
thing that can be offered to market for attention ,

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acquisition, use or consumption that might satisfy a want
or needs.
Banking Products: Banks are in the business of accepting

Dr.P.R.Kulkarni

the deposits for lending or investment.

A typical retail banking product mix are :saving account,
current account, anywhere banking account, senior citizen
account.
Fixed deposits , cumulative fix deposits, recurring deposits.
Loans : vehicle loans, housing loans, personal loan, credit
card
Other services : telephone bill payment, safe deposit locker
demand draft ,demat account
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PRODUCT LIFE CYCLE

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This concept is one of the fundamental notions
and affect the marketing strategies substantially.

Dr.P.R.Kulkarni
1. This concept implies that a product have limited
life span.
2. The sale of the product during its life span
passes through distinct stages
3. Each of the stages poses different challenges
opportunities and problems
4. Profit rise and fall at different stages
5. Different marketing strategies are required for
each of the four stages 14
INNOVATION IN PRODUCT DESIGNING
Life Cycle of Product:
Every Product has a life cycle and it becomes obsolete after
the completion of its life-cycle. Therefore, it is essential to
develop new products and alter or improve the existing ones
to meet the requirements of customers

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 Product Life Cycle (PLC) & Product Strategies:
Each product passes through he following stages in its life span
i) Introductory stage low sales, negative profits due to lack of

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awareness, limited distribution and unfamiliarity with the product.
ii) Growth stage sales tend to grow and profits increase.
Market acceptance is the key factor. Competitive strategies by other
banks can affect the growth. Promotional strategies should be changed

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to keep up the sales.
iii) Maturity stage indicator is initial stability and then slow down in
volume of sales / profit. This gives indication about changes in products /
strategies.
iv) Decline stage downward shift / drift in sales and reduction in profit
Using life cycle to manage marketing of products:
i. High growth rate in consumer durable, car and housing markets. Banks
started giving liberal loans. Banks introduced new products.
ii. Demand was growing, so also competition. This resulted n maturity or
saturation which compelled some banks to adjust the pricing
downwards.
iii. SB Accounts also reached maturity phase because of growing customer
awareness for higher yield products.
iv. To overcome, banks started new products like flexi - accounts & also
products which provide safety, short term liquidity, comfortable yield and
tax concessions.
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NEW PRODUCT DEVELOPMENT

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New Product Development Strategy:
It starts at the Maturity / Decline phase is due to
lack of demand or obsolescence.

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Stiff competition compels a bank to think of new
ideas for survival.
Based on customer changing needs.
Based on new ideas from research and development
team.

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STAGES IN NEW PRODUCT DEVELOPMENT

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Generation of Product Ideas

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Screening of Ideas

Commercial Feasibility

Product Designing &

Evaluation

Test Marketing

Lunching the Product 18

PRODUCT DESIGNING & EVALUATION

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The company must ask these questions: Why
would a customer buy this product ?, What would
be the benefit ?, How might this product be used

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?
Test the usefulness of the new product idea with
customers and have an understanding of the
product as viewed by the customer.

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TEST MARKETING

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Test marketing can be very time consuming,
expensive and prone to competitive sabotage.
Companies must plan carefully during this stage.

Dr.P.R.Kulkarni
It is the controlled release of the product so that
the sales, customer, manufacturing and support
organizations can test and modify the product.

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LUNCHING THE PRODUCT

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Launch of product consist of following:

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Developing the Market.

Correct Sales channel.

Increasing volume to support the launch.

Supporting the product.

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FEEDBACK ON PRODUCT
PERFORMANCE.

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New Product success depends on following:
Incorporating customer feedback based on Test
Market conducted.

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Before incorporating feedback suitable quantitative
and qualitative measures should be analyzed.

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Product Analysis:
Product Mix analysis is imperative to decide on

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continuance of existing products or adding new
products, based on market research in the
following aspects
Potential demand
GAP analysis
SWOT analysis for the bank

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Strategies for growth in business & profits:
1. Market Penetration:

Dr.P.R.Kulkarni
Market Penetration involves increasing sales of
an existing product in existing market. This is
possible through three strategies
i. Increasing current rate of use of a product
ii. Attracting competitive customers SWOT
analysis
iii. Attracting non-users of a product cross selling

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Market Development strategies involve increase in marketing

Dr.P.R.Kulkarni
2.
effort for existing products in new markets, attracting new
customers for existing products and expanding areas of
business.
3. Product Development
4. Product Diversification
It can be shown through the following figure:

Existing Market New Market

Existing Products Market Penetration A Market Development B
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New Products Product Development C Diversification D
Product Strategy Market Strategies

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No market change Improved market New Market

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No Product Design simplification Branding change New uses
Change Greater integration Change in package New users

Product Change Product line Product Market extension

simplification customerisation
New models

New Product Replacement of old Diversification Product

product Diversification
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Product Management (Contd)
Product Development / Innovation:
Role of Product in Customer Satisfaction:
Any product or service developed by a bank has to satisfy the needs

Dr.P.R.Kulkarni

of the customer.
General Need of Customers are
Financial Security
Quick Service
Convenience
Attractive Yield
Low Cost Loans
Personalized Service
Advice / Counselling
Easy Access
Simple Procedure
Attractive Package
Friendly Approach
Variety of Products
This list is only illustrative 27
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Product Management (Contd)
Product Development / Innovation:

Dr.P.R.Kulkarni
Role of Product in Customer Satisfaction:
The product conceptualization and development
has to bear these needs in mind.
For example, using the PLC approach seen
earlier a banker may group these needs into
following segments:

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Thus some needs like safety, liquidity, better yield,
personalized service and convenient location and timing
are the common factors which have to satisfied by any

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banks product.

Young Customers A Family with teenage A retired couple

Would prefer a bank which
provides security,
convenience and quick,
friendly service at convenient
hours
children
Would have need for proper
saving with safety of funds
reasonable yield and
availability of low cost loans
for childrens education,
convenient location and
convenient hours
Would prefer high safety,
higher yield, counselling
advice and personalized
service at convenient
location
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PRODUCT MODIFICATION
In the maturity stage of its life cycle the sale of the
product decline.

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At this stage, efforts to stimulate sales of the product
are made by modifying the product . They are:

Dr.P.R.Kulkarni
1. Quality improvement :Objective of improving the
functional performance.
2. Features Improvement : Additional of new features

3. Style improvement :improvement in aesthetic

appeal.
The purpose of making such modification is to get more
consumers in using the products

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Product Management (Contd)
Product Development / Innovation:
Innovating a product essentially means developing a product

Dr.P.R.Kulkarni
resulting in an increase in the product line.
New product development starts with the maturity or decline of an
existing product line or due to lack of demand or due to
obsolescence of a product. Stiff competition compels a bank to think
of new ideas for survival or success in a given market. Based on
changing customer wants and needs the banks market research
department generates new ideas.
The very modern manifestation of new product development has
been the customer-convenient-credit card.
Normally such ideas for new products pass through following stages:

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(Contd on next slide)
ENHANCEMENTS / MODIFICATION
BASED ON FEEDBACK.

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Customer feedback can result into following
enhancements:

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Modification in existing design of product.

Additional security features.

Customized Statement.

Online Banking facilities etc.

Based on feasibility study above feedbacks can be

implemented subject to availability of resources and 33
benefits.
PRODUCT DIVERSIFICATION

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Diversification refers to entering attractive
opportunities which are outside the existing business

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of the firm.
There are three types of diversifications ;

Concentric diversification

Horizontal diversification

Conglomerate diversification

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BRANDING OF BANKING PRODUCT

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Brand is the name, term, sign, symbol . or design or
combination of these.

Dr.P.R.Kulkarni
Brand has become an important part of the product as
they import the perceived vale to the product.
Branding of service product is not new to us.

LIC brought out its product with brand names even

when there was no competition.
Bank brand their product and customers are
familiarized with this brand names.
Seven financial institutions found place in the list top
100 brands. 35
 Most of them were from North American and European
region.
Branding in the bank use to display the trust and

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confidence because the customers preference was
security of money.
City ever sleeps (city Bank), World Local bank HSBC,

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trusted family bank Dena Bank, Building
Relationship beyond time and Taking technology to
common man- Indian Bank
Good people to grow with IOB are the some of the
example of branding bank services.

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.
Elements of Product Mix or Product Package:

Dr.P.R.Kulkarni
Product Mix means the total range of products offered by a bank.

Product Mix has three main characteristics:

i) Width, ii) Depth & iii) Consistency.

Depth depends upon number of products in each line.

Consistency means whether products have production affinity &

market affinity.

Frequent changes are made in Product Mix for diversification.

Broader Product Mix enables better business turnover and minimize

the risk of failure. 37
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Factors affecting Product Mix Product Package:
Cost of production / Delivery

Dr.P.R.Kulkarni
i.
ii. Demand from customers
iii. Advertising / Distribution Cost
iv. Policy of the Bank

Acceptability of Product / Product Mix depends on:

i. Consumer acceptance
ii. Satisfactory performance
iii. Adequate distribution
iv. Effective packaging/ branding
v. Good service / delivery 38
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Branding in Marketing:
A brand is the name or design which identifies the products or services of
a manufacturer and distinguishes them from those of competitors.
Generally before deciding brands, the following questions have to

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answered satisfactorily:
1. Is the brand name essential?
2. What brand name would suit?
3. Should product be branded separately or as a product line?
4. Is it necessary to segment a market for each brand?
5. Is brand needed for strengthening existing market segment or form a
new product?

While selecting a brand name a bank should:

i. Choose a short & simple one
ii. Prefer one which is easy to pronounce and remember
iii. Avoid confusing or negative connotations
iv. Ensure that it suits the characteristics of a product market
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v. If the banks name is highly established & accepted the brand name should include
that (banks) name also like Citicard or Indbank fund or Bobcard, etc
BRANDING IN MARKETING

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Advantages of Branding to Buyers (Customers)
Brands are dependable guides to contents, processes,

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a)
qualities, etc
b) They make shopping of various products feasible and
convenient
c) They assure satisfaction
d) They satisfy the status needs or the emotional needs of
the customers

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 Advantages of Branding to Sellers (Bank)
a) It ensures repeat sales through identification
b) It ensures product stability through customer
loyalty

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c) It helps segmenting a market
d) Customer even pays a higher price for branded

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product than an unbranded
e) It shields from price competition
f) Successful brands add to the corporate image of
the bank
The brand establishes after undergoing the
following chain:
Rejection Non-recognition Recognition
Preference Loyalty Insistence
Repeat Buying
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Branding in Marketing: Role of Brand in
Bank Marketing:

Dr.P.R.Kulkarni
In banking industry as the competition is cut
throat and products are quite similar as to the
basic nature and benefits / returns to the
customers the service delivery and branding are
excellent tools which enable a bank to create
and maintain an image among the customers

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 In India the banks have been creating their distinct marks by
establishing sign offs for their total image like A bank with
personal touch or Friendly Bank, Good to Bank With; Bank to
bank upon or Growing with you, etc.
Such sign offs, indicates the positioning adopted by a bank within

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the perceptual marketplace to gain a more advantageous
position
Some examples of brands are:

Dr.P.R.Kulkarni

Bank Prodcut Brand

Citi Bank Credit Card Citi Bank card
State Bank of India Mutual Fund SBI Mutual Fund
Canara bank Growth Fund Schemes Can Growth
Can Share
Indian Bank Housing Loan Ind Shelter
Citi Bank Car Loans Citimobile

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Branding in Marketing:
It can be, therefore, said that brands are very important as
product (marketing) strategy in marketing of banks services

Dr.P.R.Kulkarni
as branding indicates how the organization chooses to use
branding as an integral part of its overall marketing strategy
To the customer such brand name means a means to identify
the product and differentiate the product from other similar
products in the market.
In a customers language, two questions have to answered
satisfactorily in this branding effort:
i. What is it in this bank which is different form other banks
in terms of its position, sign off and product range?
ii. What are the product brands which are more beneficial
which this bank offers distinct from other banks products? 44
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PRICING OF BANKING PRODUCTS
Price is the second major element of marking mix.

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Price is the only one that generate revenue while other
elements incurred cost.
Several factors influence price and hence its determination

Dr.P.R.Kulkarni
is complex process.
Objectives of Pricing: there are several objectives which
firms have in pricing.
Out of these objectives some are primary and secondary

The objectives generally pursued by the firm in setting

prices of product can broadly classified in seven major
objective
1. Profit 2. survival 3. Market shre 4. Cash flow 5. status-quo
6 Product quality 7 communication image
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PRICING OF BANK PRODUCT AND SERVICES
There are two major cost which have to considered
while pricing bank products

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They are (a) interest cost (b) servicing cost
Normally interest cost constitutes 67% o the price and

Dr.P.R.Kulkarni
service cost is around 33% in any bank products . Bank
now price each of their services.
Traditionally, bank have been adopting pricing (ROI)
on the basis of value of loan or best on the
development of priorities.
But these days ROI offered deposits and charge on
loans and advances is :
1. Cost of fund based
2. Market related
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Other factors which impact in Bank pricing :
1. Risk and Return

Dr.P.R.Kulkarni
2. Monetary Policy
3. Capital adequacy
4. Cost befit analysis

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DISTRIBUTION CHANNEL

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The goods reach from producers to consumers
through a chain of entities associated with the
process directly or indirectly.

Dr.P.R.Kulkarni
Service products (bank) have distinct
characteristics hence the distribution of service
product is complex.
Banking services mainly depend upon direct
distribution through own net work of the
branches.
With the technological revolution in banking in
addition branches many more delivery channels
are used by the banks to make their product
reach the customer. 49
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Branches are the primary distribution outlets for
banking services. These fixed in location and
consumers are required to visit the branch for the

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transactions.
Technological Channels :

Telephone banking and call centers

Automated teller machines

Personal computer

Plastic cards

Virtual branches and automated video banking.

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SALES & DISTRIBUTION SYSTEM

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Sales Promotion:
Sales Promotion means, the banks well organized, planned
and goal oriented efforts which must 52be in line with its

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overall business goals and objectives in the desired market
areas keeping specific needs of customers in mind.
The promotion efforts include the communication channels of:
o Advertising
o Publicity
o Sales Promotion
o Person-to-person communication
o Banks internal communication process, etc.

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 Mass Communication Person-to-Person Communication
Advertising Personal Sales

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Publicity
Composition of Product Mix Internal Communication
Sales Promotion

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Public Relation

Objectives of Sales Promotion:

Objectives of Sales Promotion are:
1. Informing/telling/educating potential customer
2. Informing existing customers about new products / services
3. Following up with existing/potential customers for schemes introduced
4. Approaching a new segment of customers to attract them to promote new
scheme.

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 Distribution Channels:
Direct Channels:
i. Branch Network
Electronic Channels ATM, Internet Banking, Phone

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ii.
Banking, Mobile Phone Banking, Online Anywhere Banking,
etc
Banking at door step

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iii.
In-Direct Channels:
i. Direct Marketing Agents (DMS)
ii. Direct Selling Agents (DSA) Telemarketing Executives
(TMEs), Field Sales Personnel, namely Direct Sales
Executives (DSE),/ Business Development Executives
(BDEs)
Issues to be considered:
Channel Selection
Channel Management
Empanelment of channel partners
Monitoring a channel partner integrity, performance & 54
productivity rewards.
DSA (DIRECT SELLING AGENTS)

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WITH limited branch networks, private sector banks are
increasingly depending on outside agencies to sell their
retail products

Dr.P.R.Kulkarni
These sales personnel are given variable pay depending
on the volumes of business they bring in, making the
situation very tricky if the bank is not careful in
tracking the quality of the assets they bring in.
ICICI Bank has seen 100 per cent of its incremental
growth in its home loan portfolio through its DSA
network. Home loans disbursed by ICICI Bank for the
year 2002-03 were Rs 7,000 crore. Even its, by now
famous, `loan melas' are conducted by DSAs under the
supervision of its employees.

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BANKER AS A DSA/DMA
In a bank branch DSA/DMA is the branch manager,
officer, manager , marketing manager, the front line

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people and sub staff who offer various services
The banking offers various non conventional services

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to customers.
The job of the DMA/DSA is to collect the information
about the customer with all details and create a data
base.
Create awareness among the customer educate them
about the user friendliness of the system.
Convince them about the security aspects, generate
report to accommodate the need of the customers and
management.
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DMA (DIRECT MARKETING AGENTS)

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Role of Direct Marketing Agents in banks are following:
To market and publicize the loan schemes / products of banks
DMA collect the loan applications of the interested parties with
requisite fees as per rules of the bank in the shape of cheques / draft

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and deliver to the concerned bank's branch.
To carry on thorough verification of the account to be introduced of
the applicants, seller of the property, guarantors and property to be
provided as security for loan.
To educate the customers on the policies and terms of lending of bank
and to cover the company against any claim or damage arising out of
non-compliance of any of the terms and conditions as above.
To ensure regular payment of installments in the accounts introduced
by him and timely deposition of Post Dated Cheques.
To ensure recovery in the event of default / non-payment in any
account.
To protect the interest of the company and ensure that image of the
company is not tarnished by any deeds performed / statements made
by him.
57
 Direct Selling Agents (DSA)
Code of Conduct for Direct Selling Agents:
Declaration to abide by the Code of Conduct
Salient aspects of the Code of Conduct

11/7/2017

Tele-calling a prospective customer (Prospect)

Consent to be obtained
Not to call a person who is flagged in do not disturb list

Dr.P.R.Kulkarni
Time of contact normally between 09:30 hrs & 19:00 hrs
Maintain prospects privacy
Leaving a message in the event when the prospect is not
available the message must indicate the purpose of call; is
regarding, selling or distributing a bank product.
No misleading statements / misrepresentations permitted
Tele-marketing antiquates pre-call, during call, post-call.
Gifts or bribes not to accept any gifts / bribes of any kind from
prospects
Precautions to be taken on visits / contacts maintain adequate
distance, no visiting large numbers, etc
Other important aspects appearance & dress code 58
MONITORING A CHANNEL PARTNER

11/7/2017
As channel partnerships develop and become more
complex, however, the need to measure their
effectiveness becomes crucial. banks not content with

Dr.P.R.Kulkarni
mere incremental revenue are looking for ways to
analyze channels, refine them for maximum return and
avoid any pitfalls.
the most sophisticated metric is analyzing which
individual partners is performing well or poorly. That
means finding ways to assign appropriate sales
allocation to individual activity and pinpointing the
exact location of the point of sale,
Automated systems, such as MarketStar's
PartnerDynamics software, can help manage channel
initiatives with a list of daily activities for specific DSAs
59
INTEGRITY

11/7/2017
Globally, the banking and financial services sector is one
of the largest users of information systems. This has
held true in India too, where banks and financial
institutions are one of the largest deployers of IT in the

Dr.P.R.Kulkarni
country.
With the RBI actively encouraging the banks to shift to
internet banking and advocating real-time clearing
systems, the IT adoption rate in the banking industry is
bound to increase. Banks with a smaller footprint are
also catching up with the larger players in moving
towards connected systems. As technology adoption
takes place on a war footing, care should be taken that
effective security systems and IT safeguards are in
place.
The off shoring of the back end processing transactions
of global financial institutions to India has increased the
importance of security. Maintaining the integrity,
confidentiality and availability of data is a new concern
that banks have to contend with. 60
PRODUCTIVITY REWARDS

11/7/2017
Cash incentives are in the form of a bonus. A bonus is
an incentive payment that is supplemental to the base
wage. It has the advantage of providing employees with
more pay for putting out a greater effort. A Spot bonus

Dr.P.R.Kulkarni
could also be used; it is an unplanned bonus given for an
employees effort unrelated to an established
performance measure. For example, an employee may
receive a spot bonus for working long hours to keep a
client or fill their order. Many service managers are
finding that cash is not as powerful for motivating a
employees performance. Today's employees want more
from their jobs than just money; people want higher
positions and internal recognition
Incentives can also be in the form of non-cash items. The
most popular of the non-cash incentives include free
merchandise, travel, recognition and status. Other types
of non-cash incentives are, tuition credits, shares of
stock, consumer merchandise, flexible working hours,
company car, paid time off as well as health services
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FINANCIAL PLANNING AND FINANCIAL ADVISORY
RESPONSIBILITIES
Financial planning is the process of establishing personal and financial goals of
an individual and his/her family and meeting them through proper
management of his/her personal finance. The financial goals may involve
buying a home or a car, childrens marriage and education, funds for medical
treatment, retirement, vacation abroad etc. The on-going process involves
taking stock of all existing resources, developing a plan to use them, and
systematically implementing the plan in order to achieve short and long-term
goals. The plan must be monitored and reviewed periodically so that
adjustments can be made, if necessary, to assure that it continues to move
toward the clients financial goals.
Financial Planner is an expert in the process of financial planning which
essentially involves: establishing and defining the client-planner relationship;
gathering client data, including goals; analyzing and evaluating the client's
financial status; developing and presenting financial planning
recommendations and/or alternatives; implementing the financial planning
recommendations and monitoring the financial planning recommendations.
Using this process, financial planner can help his clients work out where they
want to be financially and what needs to be done to be there. Financial
Planner specifically gives his analysis and advice on personal financial
statements, investments, taxation, debt & risk management, cash flows,
insurance, stocks, trusts, retirement and other components of personal finance.

7 November 2017 Dr. P.R Kulkarni 62

FUNCTIONS AND RESPONSIBILITIES
Financial Planning Services - Inflation, falling interest
rates and fluctuating market conditions require to plan
finances carefully
International Services -

Mutual Funds -

Business Select - a range of financial services and

personalized business-banking solutions that help to
maximize business potential

7 November 2017 Dr. P.R Kulkarni 63

MEANING AND CONSTITUENTS OF WEALTH
MANAGEMENT
Wealth Management is a professional service
which is the combination of financial/investment
advice, accounting/tax services, and legal/estate
planning for one fee.
Wealth Management is classified as an advanced
type of financial planning that provides
individuals and even families with private
banking, estate planning, asset management,
legal service resources, trust management,
investment management, taxation advice, and
portfolio management. Thus, wealth management
encompasses asset management, client advisory
services, and the distribution of investment
products.
7 November 2017 Dr. P.R Kulkarni 64
ADVISORY ROLE
Wealth management is a high level form of private
banking that provides various types of investment,
insurance and bank products and services.
Persons engaged in wealth management usually work for
brokerage firms, large banks, trust departments, or
investment and portfolio management firms. Boutique
firms such as a Registered Investment Advisor also tend to
provide a wide array of family office services.

7 November 2017 Dr. P.R Kulkarni 65

11/7/2017 Dr.P.R.Kulkarni
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