• A market refers to the places where goods and services are sold and purchased. It consists of all the potential customers sharing a particular requirement or need or goods to engage in exchange.
  • Market implies a situation where buyers and sellers of a commodity interact and coming together of buyers and sellers of the same or similar commodities.
  • A market is not essentially a geographical area as buyers and sellers may be located at different places.


  • Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.
  • The marketing is the process of identifying consumer requirements, creating goods and services to satisfy customer requirement and ultimately achieving the objective for which the organization has been created.
  • Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.


Different kinds of Market:

  • Markets can be grouped in different categories such as geographical, volume of transactions, nature of products.
  • Based on geographical area it may be a local market, regional markets, national markets, global markets.
  • On the basis of volume of transactions the market could be retail market and wholesale market. As regards the products, the market may be capital market, share market, commodities market etc.

Marketing Vs Selling:

  • Selling is product focused and involves sale of what a firm has produce. Marketing is customer focused where the aim to maximize the earning by satisfying customer needs.
  • Marketing aims at achieving corporate objectives through customer satisfaction. Selling aims at earning maximum profits by increasing sales volume.
  • Marketing converts customer needs into profitable opportunity. Selling helps in encashing those opportunities.

Marketing management:

Marketing management is the process of planning and executing the concept, pricing, promotion and distribution of goods and services and ideas with a view to create value (revenues) that satisfy the customer as well as the organization objectives.

Functions in marketing management:

Marketing management takes care of 4 important aspects i.e. analysis, planning, implementation and control & monitoring.

  1. Analysis is done for understanding the customer, competition, trends, strengths and weaknesses of the organization with a view to come out with appropriate marketing strategy.
  2. Planning that include goals and target in measurable terms
  3. Implementation of the strategic plans involving staffing requirement, task-allocation, responsibility fixing, budgeting etc.
  4. Control and monitoring: This involves review of implementation on a continuous basis.

Marketing of Services:

Banks and financial institutions do not produce goods. Instead they create products in the form of financial services and services connected with finance. The need for marketing of services is equally essential since there is lot of competition in this segment due to increasing dependence of economic activity on the banking services and increase presence of banks and financial institutions.

In India, in particular, due to entry of new private banks, the competition has increased substantially leading to lot of product and product delivery innovations.

Goods vs. Services:

  • Goods are in tangible form and are Homogeneous. Services are intangible and heterogeneous.
  • Production and distribution are separate. Production and distribution are simultaneous.
  • Goods can be stored. Services cannot be stored.
  • Transfer of ownership takes place. No transfer of ownership takes place.

Market Mix:

It is a set of marketing tools that a bank uses to pursue its marketing objectives. A number of marketing mix tools are available and one of such tools is Mc Carthy’s 4-P classification that include product, price, place and promotion.

  1. Product: It is the basic marketing mix tool. Banks may offer various products with various features to different segments of the customers, in different geographical and economic segments. Important aspects of product include variety, quality, design, features, brand name, packing, size, warranties, returns etc.
  2. Price: Price is also an important marketing mix tool as through price offers of their products (loans, deposits and other services), they can retain the existing customers, attract new customers, and earn revenues adequate to meet their corporate objectives. Important aspects of price include List price, discount, allowances, payment period, and credit terms.
  3. Promotion: Banks undertake various activities to promote themselves, their products with a view to reach the existing customers for new products and new customers for all old as well as new products. Important aspects of promotion include Sales promotions, advertising, sales force, public relation, direct marketing.
  4. Place: Place is a key marketing mix tool on the basis of which the banks are able to deliver their services. With use of information technology, the banks have been able to extend their reach beyond geographical and physical boundaries, particularly by providing Internet banking. Channels, coverage, assortments, locations, inventory, transportation are some of the important aspects of place.

Lauterborn’s concept of 4C:

Corresponding to 4P concept, Robert Lauterborn introduced the concept of 4C in marketing of products and services. These 4Cs correspond to the 4Ps and include

  1. Customer needs and wants (corresponding to the product)
  2. Cost to the customer (corresponding to the price)
  3. Convenience (corresponding to the place) and
  4. Communication (corresponding to the promotion).

Market mix Concept of 7-Ps for services

Booms and Bitner propounded 7 P marketing mix model for services as the marketing mix tools meant for product did not fully meet the requirement of service. These 7P for services include product (i.e.service), price, promotion, place, people, physical evidence and process.

Important aspect of 7-Ps

  1. Product: Range, quality standards, branding, service lines, warranty, after sales services.
  2. Price : Discount, payment terms, perceived value, price/quality relationship, credit terms, differentiation.
  3. Promotion: Advertising,, personal selling, sales promotion, publicity, public relations, direct marketing.
  4. Place : Location; accessibility, coverage, channels. “.
  5. People : Service employees, training, discretion, commitment, incentives, appearance, interpersonal behavior, attitudes, customer contact, customer interaction.
  6. Physical evidence : Environment, furnishing atmosphere, layout, warranty, corporate identity, peripheral evidence.
  7. Process: Policies, procedures, systems, use of technology, customer involvement, work flow standardization, employee discretion, quality control.


  • Product refers to anything that could be offered to a customer, to satisfy the requirement of the customer. A banking product stands for a service or a package of services that are provided to a particular customer or to a group of customers, by a particular bank or different banks.

The banks offer different kinds of products such as:

  • Regular accounts – saving- account, current account, anywhere banking account, senior citizens account
  • Deposit accounts- fixed deposit account, cumulative FD account and Recurring deposit account.
  • Loan accounts – vehicle loan, housing loans, personal loans, credit cards, gold credit card
  • Other services – bill payment, safe deposit lockers, demand drafts and mail transfers, demat account.

Product life cycle: Products have limited life span and a product during this span moves through different stages that constitute the life cycle of the product each stage have different challenges, opportunities and problems and the revenue at different stages change. There are four stages in the product life cycle

  1. Introduction stage: This is period of low sale, low profits, low sales growth.
  2. Growth stage: Rapid sales growth, improvement in profits.
  3. Maturity stage: Slowing down of sales growth, peaking of sales, stabilization of profits or decline in profits.
  4. Decline stage: considerable decline in sales, erosion of profits.
Product life cycle


Market / product expansion grid:

Product-Market Expansion Grid

Brand in a product:

  • Besides the core physical aspects, a product also is known by its brand name and identified by its packaging. Brand is a name, term, sign, symbol, design or combination of all these.
  • We have a big brand name in financial services sector like SBI, ICICI Bank. A powerful brand enjoys a high level of consumer confidence.


Packaging is a function comprising the activities of designing and producing suitable containers for the product. There are different layers of product packaging that include

  • Primary packaging (i.e.: the basic packing like a glass bottle),
  • Secondary Packaging (a package in which the container is kept a thermo packing over a lap-top) and
  • Shipping packaging (upper layer of the packaging to give protection to the product till it reaches the consumer.

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