20. Discuss importance of marketing for Indian Banking Industry.

Awareness among Customers

Modern technology has made customers aware of the developments in theeconomic environment, which includes the financial system. Financial needsof the
customers have grown multifold into various forms like quick cashaccessibility, money transfer, asset security, increased return on surplusfunds, financial
advice, deferred payments etc. With a wide network of branches, even in a dissimilar banking scenario, customers expect the banksto offer a more and better
service to match their demands and this hascompelled banks to take up marketing in right earnest.
Quality as a Key Factor
With the opening up of the economy, fast change has been experienced inevery activity, and banking has been no exemption. Quality is the watchwordin the
competitive world, which is market driven and banks have had to faceup to this emerging scenario. In fact, it may not be out of place to reiteratethat quality
will in future be the sole determinant of successful bankingventures and marketing has to focus on this most crucial need of the hour.
Growing Competition
Increased completion is being faced by the Indian banking industry fromwithin the system with other agencies both, local and foreign, offering valueadded
services. Competition is no more confined to resource mobilization but also to lending and other areas of banking activity. The foreigncommercial bank with
their superior technology, speed in operations andimaginative positioning of their services has also provided the necessaryimpetus to the Indian banks to
innovate and complete in the market place.
Technological Advances
Technological innovation has resulted in financial product developmentespecially in the international and investment banking areas. The westernexperience
has demonstrated that technology has not only made execution of work faster but has also resulted in greater availabilityof manpower for customer Contact.

21. State the features of the banking regulations act 1949.

22. Explain the process of consumer buying decision.
1.) Need recognition:- consumer buying decision process starts with need recognition. The marketer must recognize the needs of the consumer as well as
how these needs can be satisfied. For example if a person is hungry then food is desired or if it is a matter of thirst than water is desirable.

2.) Information search:– in consumer buying decision process information search comes at second number. In this stage consumer searches the
information about the product either from family, friends, neighborhood, advertisements, whole seller, retailers, dealers, or by examining or using the
product.

3.) Evaluation of alternatives:– after getting the required knowledge about the product the consumer evaluate the various alternatives on the basis of it’s
want satisfying power, quality and it’s features.

4.) Purchase decision:– after evaluating the alternatives the buyer buys the suitable product. But there are also the chances to postpone the purchase
decision due to some reasons. In that case the marketer must try to find out the reasons and try to remove them either by providing sufficient information to
the consumers or by giving them guarantee regarding the product to the consumer.
5.) Post purchase behaviour:– after buying the product consumer will either be satisfied or dissatisfied. If the consumer is not satisfied in that case he will
be disappointed otherwise If he is satisfied than he will be delighted. It is usually said that a satisfy consumer tell about the product to 3 people and a
dissatisfy consumer tell about the product to 11 people. Therefore it is the duty of the marketer to satisfy the consumer.

23. Define market segmentation. What is the procedure followed by the market segmentation?
Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments
created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.
1. Identify the target market
The first and foremost step is to identify the target market. The marketers must be very clear about who all should be included in a common segment. Make
sure the individuals have something in common. A male and a female can’t be included in one segment as they have different needs and expectations.
Burberry stocks separate merchandise for both men and women. The management is very clear on the target market and has separate strategies for product
promotion amongst both the segments.
2. Identify expectations of Target Audience
Once the target market is decided, it is essential to find out the needs of the target audience. The product must meet the expectations of the individuals. The
marketer must interact with the target audience to know more about their interests and demands.
3. Create Subgroups
The organizations should ensure their target market is well defined. Create subgroups within groups for effective results.
Cosmetics for females now come in various categories.
 Creams and Lotions for girls between 20-25 years would focus more on fairness.
 Creams and lotions for girls between 25 to 35 years promise to reduce the signs of ageing.
4. Review the needs of the target audience
It is essential for the marketer to review the needs and preferences of individuals belonging to each segment and sub-segment. The consumers of a particular
segment must respond to similar fluctuations in the market and similar marketing strategies.
5. Name your market Segment
Give an appropriate name to each segment. It makes implementation of strategies easier.
A kids section can have various segments namely new born, infants, toddlers and so on.
6. Marketing Strategies
Devise relevant strategies to promote brands amongst each segment. Remember you can’t afford to have same strategies for all the segments. Make sure
there is a connect between the product and the target audience. Advertisements promoting female toiletries can’t afford to have a male model, else the
purpose gets nullified.
A model promoting a sunscreen lotion has to be shown roaming or working in sun for the desired impact.
7. Review the behavior
Review the behavior of the target audience frequently. It is not necessary individuals would have the same requirement (demand) all through the year.
Demands vary, perceptions change and interests differ. A detailed study of the target audience is essential.
8. Size of the Target Market
It is essential to know the target market size. Collect necessary data for the same. It helps in sales planning and forecasting.

24. What are the differences between primary data and secondary data?
Data collection plays a very crucial role in the statistical analysis. In research, there are different methods used to gather information, all of which fall into
two categories, i.e. primary data, and secondary data. As the name suggests, primary data is one which is collected for the first time by the researcher while
secondary data is the data already collected or produced by others.

BASIS FOR
PRIMARY DATA SECONDARY DATA
COMPARISON

Meaning Primary data refers to the first Secondary data means data collected by someone else earlier.
hand data gathered by the
researcher himself.

Data Real time data Past data

Process Very involved Quick and easy

Source Surveys, observations, Government publications, websites, books, journal articles, internal records etc.
experiments, questionnaire,
personal interview, etc.

Cost effectiveness Expensive Economical

Collection time Long Short

Specific Always specific to the May or may not be specific to the researcher's need.
researcher's needs.

Available in Crude form Refined form

Accuracy and More Relatively less

Reliability

20. Explain the features of bank marketing.

Features of Bank Marketing.
*Banking product cannot be seen or touched like manufactured products (intangibility)
*In marketing banking products, the product and the seller are inseparable; they together define the banking product (inseparability)
*Banking products are products and delivered at the same time; they cannot be stored and inspected before delivering’ (perishability)
*Standardization of banking product is difficult (variability)

21. What are the advantages and disadvantages of market segmentation?

Advantages and Disadvantages of Market Segmentation!
Advantages of Market Segmentation:
(i) The marketer can spot and compare marketing opportunities. He can examine the needs of each segment and determine to what extent the current offering
satisfies these needs. Segments which have low level of satisfaction from current offerings represent excellent opportunities for the marketer.
(ii) With the help of knowledge about different segments, the marketer can better allocate the total marketing budget. Differences in customer response to
different marketing tools serve as the basis for deciding on the allocation of market funds to different customer groups.
(iii) The marketer can modify his product/service and marketing appeals to suit the target segment.
(iv) Segmentation facilitates setting up of realistic selling targets and priorities.
(v) Management can identify new profitable segments which deserve special attention.
(vi) It is possible to deal with competition more effectively by using resources more effectively.
(vii) Appropriate service packages can be developed for each market segment.

Disadvantages of Market Segmentation:

Market segmentation suffers from the following disadvantages:
(i) Segmentation increases costs. When a firm attempts to serve several market segments, there is a proliferation of products. Cost of production rises due to
shorter production runs and product variations.
(ii) Larger inventory has to be maintained by both the manufacturer and the distributors.
(iii) Promotion and distribution expenditures increase when separate programme are used for different market segments.
(iv) When characteristics of a market segment change, investment made already might become useless.

22. Explain the factors affecting buying behaviour.

1. CULTURAL FACTORS
Consumer behaviour is deeply influenced by cultural factors, such as buyer’s culture, subculture and social class.
• Culture
Essentially, culture is the share of each company and is the major cause of the person who wants and behavior. The influence of culture on the purchasing
behavior varies from country to country, therefore sellers have to be very careful in the analysis of the culture of different groups, regions or even countries.
• Subculture
Each culture has different subcultures, such as religions, nationalities, geographical regions, racial, etc. marketing groups may use these groups, segmenting
the market in several small portions. For example, marketers can design products according to the needs of a specific geographical group.
• Social Class
Every society has some kind of social class is important for marketing because the buying behaviour of people in a particular social class is similar. Thus
marketing activities could be adapted to different social classes. Here we should note that social class is not only determined by income, but there are several
other factors such as wealth, education, occupation etc.
2. SOCIAL FACTORS
Social factors also influence the purchasing behavior of consumers. Social factors are: the reference groups, family, the role and status.
• Reference groups
Reference groups have the potential for the formation of an attitude or behavior of the individual. The impact of reference groups vary across products and
brands. For example, if the product is visible as clothing, shoes, car etc., the influence of reference groups will be high. Reference groups also include
opinion leader (a person who influences others by his special skill, knowledge or other characteristics).
• Family
buyer behaviour is strongly influenced by a family member. So vendors are trying to find the roles and influence of the husband, wife and children. If the
decision to purchase a particular product is influenced by the wife of then sellers will try to target women in their ad. Here we should note that the purchase
of roles change with changing lifestyles of consumers.
• Roles and Status
Each person has different roles and status in society in terms of groups, clubs, family, etc. organization to which it belongs. For example, a woman working
in an organization as manager of finance. Now she is playing two roles, one of the chief financial officer and the mother. Therefore, purchasing decisions
will be influenced by their role and status.
3. PERSONAL FACTORS
Personal factors may also affect consumer behaviour. Some of the important factors that influence personal buying behaviour are: lifestyle, economic status,
occupation, age, personality and self esteem.
• Age
Age and life cycle have a potential impact on the purchasing behavior of consumers. It is obvious that consumers change the purchase of goods and services
over time. Family life cycle consists of different stages as young singles, married couples, and unmarried couples etc that help marketers to develop suitable
products for each stage.
• Occupation
The occupation of a person has a significant impact on their buying behaviour. For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-resistant clothing works.
• Economic situation
Economic situation of the consumer has a great influence on their buying behaviour. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy cheap products.
• Lifestyle
Lifestyle clients are another factor affecting import purchasing behaviour of consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client’s interests, opinions, etc and activities shapes their whole pattern of acting and interacting in the
world.
• Personality
Personality changes from person to person, time to time and place to place. Therefore, it can greatly influence the buying behaviour of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in different circumstances. Has a different characteristic, such as dominance,
aggression, confidence etc that may be useful to determine the behaviour of consumers to the product or service.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the purchasing behaviour of consumers. These are: perception, motivation, learning, beliefs and
attitudes.
• Motivation
The level of motivation also affects the purchasing behaviour of customers. Each person has different needs, such as physiological needs, biological needs,
social needs, etc. The nature of the requirements is that some are more urgent, while others are less pressing. Therefore, a need becomes a motive when it is
most urgent to lead the individual to seek satisfaction.
• Perception
Select, organize and interpret information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual
processes which are selective attention, selective distortion and selective retention. In the case of selective attention, sellers try to attract the attention of the
customer. Whereas in case of selective distortion, customers try to interpret the information in a way that supports what customers already believe. Similarly,
in the case of selective retention, marketers try to retain information that supports their beliefs.
• Beliefs and Attitudes
Client has specific beliefs and attitudes towards different products. Because such beliefs and attitudes shape the brand image and affect consumer buying
behaviour so traders are interested in them. Marketers can change beliefs and attitudes of customers with special campaigns in this regard.

23. What are the factors influencing the market of banking services?
24. Explain the process of marketing research.
The marketing research process can be defined as the process of gathering, analyzing and interpreting the information about the product or the services to be
offered for sale in the market, the market and about past, present and any potential consumers for the products. The following are the main steps to follow
when conducting your marketing research;
Stage 1: Formulating Marketing Research Problem
 The research will start with the problem facing the management. The problem should be understood and the main cause diagnosed before developing
solutions. Formulate research problems by:
•Specifying the objectives of the research
•Reviewing the environment of your research problem
•Exploring the nature of research problem
•Defining the variable relationships
•Looking at the main consequences of the alternative courses of the action.
 Step 2: Method of Inquiry
 The method of inquiry is a standard way for investigation. This will give you an opportunity to use the existing knowledge as the starting point and then
proceed impartially. The method of inquiry can be objective or subjective and it will include the following;
•Formulating the problem
•Developing the hypothesis
•Making predictions which are based on your hypothesis
•Devising the test of hypothesis
•Conducting the test
•Analyzing the results
Stage 3: Research Method
 After selecting the method of inquiry, you must then select the research method. The primary methodologies used in answering research problems are
experimental research method and non-experimental research. The experimental research will give you an advantage of controlling the extraneous variables
that are used and manipulating more variables which influence the process which is being implemented. Non experimental research will allow the
observation of the market information but not intervention into it. The only thing you will do is to observe and report your findings.
Stage 4: Research Design
 The design of the research is the plan for conducting your study and collecting the data required. It can be defined as a specific method or procedure you
will use in acquiring the information you want.
Stage 5: The data Collection Techniques
 The research design will start developing when you select the techniques to be used. There are different ways to collect the data. The most important
methods you can consider are observation and interviews. The interview requires the person to ask some questions and expect responses. You can conduct
your interview through face to face, or by telephone, mail, internet or email.
Stage 6: Sample Design
 It is a more practical way to use the sample design because your marketing research process or project will actually examine the entire population. Use small
accurate and effective representation of the population. Before designing your sample, it is advisable to answer the following questions first:
•From which population base is your sample can be selected?
•What is the process for the sample selection?
•What is the actual size of a sample?
 After establishing the relevant population, you can then make inferences about the larger population. You can select your sample by either probability
method or non probability sampling method. The probability method will rely on the random sampling of everybody within a larger population. Non
probability is normally based on the findings and judgement of the investigator. Determine an appropriate sample size to help you make good decisions
when determining your cost.
Stage 7: Data Collection
 After establishing all the six procedures, you can then move on to the collection of data. This stage requires a large amount of personnel and significant
portion of the budget depending on your mode of collecting data. Data collection will introduce essential element into your research process. This is the
importance of a clear communication.
Stage 8: The Analysis and Interpretation
 Analyze the data in order for it to be useful. The technique for analyzing varies and their effectiveness will depend on the type of data you choose to collect,
and the method of measurements to be used.
Stage 9: Marketing Research Report
 The report shall include all the information collected including the accurate description of the marketing research project, results, conclusions and the
recommendations. Prepare a summary report and a technical report for easy understanding of the information. The summary report will summarize your
marketing research process.

21. Explain the strategic benefits of good competitions.

Refer class work
24. Explain the importance of marketing research.
1. Provides valuable data
Marketing research provides valuable data to the decision makers. It provides data about demand, supply, consumer behavior, competition, etc. This data is
used for decision making. This data improves the quality of decisions. It makes the decision very successful.
2. Studies consumer behaviour
Marketing research provides data about consumer behavior. It provides data about age, incomes, likes, dislikes, etc. of the consumers. It also finds out the
opinions of the consumers about a company’s product. This data is used to make production and marketing policies.
3. Selects promotional techniques
Marketing research helps the company to select suitable sales promotion techniques. It helps to select marketing techniques. It helps to select proper media
for advertising. It helps to solve the problems of after-sales service. It also helps to prepare the budget for advertising and sales promotion.
4. Supplies marketing information
Marketing research supplies data about the market situation.
This market-related data is used to find out:
The present and future demand and supply position.
The level of competition and steps taken to control it.
Market opportunities.
The cause of fall in sales level.
5. Evaluates marketing performance
Marketing research helps the company to evaluate its marketing performance and to take steps to improve it.
Marketing research is used to find out the effect of price, package, brand name, etc. on sales. It is used to find consumers’ reaction towards the company’s
product. It is used to evaluate the inventory and pricing policies. It is also used to evaluate the effectiveness of advertising, sales promotion techniques,
channels of distribution, etc.
6. Miscellaneous needs and importance
Miscellaneous needs and importance of marketing research are as follows:
Marketing research improves the efficiency of the marketing department. This creates goodwill and good reputation.
It helps the marketing manager to take the rational and effective decisions.
It helps to choose suitable staff for doing research.
It is used to make growth and expansions programs.
It benefits all i.e. it benefits the company, distributor, advertising agency, consumer, government and the entire society.

21. Describe the macro factors influencing the market environment.

A macro environment is the condition that exists in the economy as a whole, rather than in a particular sector or region. In general, the macro environment
includes trends in gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro-environment refers to all
forces that are part of the larger society and affect the micro-environment.
Political Factors
These are all about how and to what degree a government intervenes in the economy. This can include – government policy, political stability or instability
in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.
It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond
to the current and anticipated future legislation, and adjust their marketing policy accordingly.
Economic Factors
Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include – economic growth,
interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-economical factors. Macro-economical factors deal with the management of
demand in any given economy. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for
this.
Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C organisations in particular.
Social Factors
Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population. These factors include – population growth,
age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how marketers
understand customers and what drives them.
Technological Factors
We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing
and the management thereof in three distinct ways:
New ways of producing goods and services
New ways of distributing goods and services
New ways of communicating with target markets

23. Discuss the characteristics of market segmentation.

Measurable Consumers who belong to a particular target market and segment should be clearly identifiable. The characteristics to include or exclude in
identification of a market segment are also well defined and measurable. Target markets are quantifiable in terms of population, income and age bracket,
among other factors.

Accessible: Market segments should be accessible in terms of geography and economy. To enable accessibility of goods and services, there should be use of
appropriate marketing strategies. This is because the marketing strategy used for one group should differ from the strategy used for another, as their needs
differ. For example, different age groups have different fashions, styles and consume different products. The way of communicating to this market segment
should correspond to the relevant needs of consumers in this segment.
Profitable
A market segment should be large enough to be worth pursuing. The main aim of market segmentation is to be able to tailor marketing techniques toward
specific segments. This enables a firm to enjoy economies of scale while at the same time fulfilling consumers’ needs. The amount of disposable income the
target market is willing to spend in purchasing the goods and services should be enough to enable the firm to earn profits. For example, if a product’s target
market is young consumers, the price range should be attainable, considering that majority of the young people are dependent on their parents or guardians.

Market Responsiveness
Consumers in a given market segment should be responsive to the products meant for them. Unless consumers in market segments are willing to respond to
the products developed, there is little reason to develop these products. The success of products introduced in the markets depends on whether they meet
consumer or organization needs. Consumers’ decisions on whether to purchase or not to purchase will be an indicator of the performance of the product in
the market.

24. Explain the objectives of situation analysis.

Situation analysis refers to a collection of methods that managers use to analyze an organization's internal and external environment to understand the
organization's capabilities, customers, and business environment.
Define the nature and extent of the problem in the local context;
Map the perceptions and experiences of key stakeholders in relation to the problem;
Identify existing strategies and activities which address the problem;
Identify the actors and organizations that are already active in the area;
Identify the actors and organizations that could be important partners; and
Identify gaps in existing strategies and activities
20. Trace the evolution of marketing concept.
Marketing concept is the way of life in which all the resources of an organisation are mobilized to create, stimulate and satisfy the consumer at a profit. It
represents a distinct philosophy of business and considers marketing more than a physical process.
Evolution of Marketing Concept:
This marketing philosophy has undergone a thorough and gradual change since the great Industrial Revolution that took place during the latter-half of the
18th and first-half of the 19th centuries. This gradual change can be traced under four periods and captions namely, production orientation period, sales-
orientation period, customer-orientation period and social orientation period.
22. Discuss the need for studying consumer behaviour.
The consumer decides what to buy, when to buy and also what not to buy. One cannot thrust a product on a consumer. A marketer sells what the
consumer wants. So, emphasis is placed on knowing what the consumers’ wants are.
Studying consumer behaviour is very much emphasized for the following reasons.
1. To satisfy need of customers
Consumers respond favourably while evaluating the products that best satisfy their needs. A marketer studies how consumers spend their available resources
on the consumption of related items. It includes the study of what they buy, when they buy it, where they buy it and how often they use it. So, knowledge of
consumer behavior will be of immense help to the marketer which will help to satisfy their needs.
He can understand the consumer’s reaction to a firm’s marketing strategies. It would help in planning and implementing marketing strategies.
2. Helps to understand consumer psychology
The study of consumer behaviour enables the marketer to understand the psychology of consumers. Consumer psychology is based on his knowledge,
attitude, intention and motive.
The psychology of customer develops on the basis of knowledge he has. Sales promotion plays an important role to provide the knowledge of the product to
consumers.
Attitude is a state of mind or feeling. Attitude explains behavior. Intention means a desire to do something. A marketing programme is formulated only after
understanding the intention of consumers. Motive is the integral state which directs the behavior of a person.
3. Helps to understand consumer motives
A study of the behaviour of a consumer is essential to understand his/her buying motives. A motive is an urge for which an individual seeks satisfaction.
Consumers have several motives. All these motives may not have the same intensity of purchase. Only a few motives prompt the consumer to buy a product
or service. The study of consumer behavior involves both motives and purchases.
4. Helps to understand consumer choices
It is important for the marketer to understand how consumers make their choices. Human beings are usually very rational. They make systematic use of
information available to them before they buy. A marketer studies the behavior of the customer and accordingly alters his presentation, enticing the customer
to go for the product.
5. Helps to understand consumer preferences
A business firm which is ignorant of consumer preferences cannot succeed in the market place.
Adam Smith has stated that consumption is the sole end and purpose of all production. So, a firm must plan its production and distribution to suit the needs
of consumers. Thus, the extent of consumer understanding determines the effectiveness of marketing mechanism.
To conclude
The study of consumer behaviour helps the marketer to
Satisfy need of customers
Understand consumer psychology
Understand consumer motives
Understand consumer choices
Understand consumer preferences

23. Explain the requirements of effective segmentation.

The requirements for effective market segmentation are as follows:

a) Measurable: The size, needs, purchasing power, and characteristics of the customers in the segment should be measurable. Quantification should be
possible.

b) Divisible: The segments should be differentiable. There must be clear-cut basis for dividing customers into meaningful homogeneous groups. They
should respond differently to different marketing mixes. There should be differences in buyer's needs, characteristics and behaviour for dividing in groups.

c) Accessible: The segment should be reachable and serviceable. It should be accessible through existing marketing institutions, such as distribution
channels, advertising media and sales force. There should be middlemen to distribute the products.

d) Substantial: The segment should be substantial. It should be large enough in terms of customers and profit potential. IT should justify the costs of
developing a separate marketing mix.

e) Actionable: It should be actionable for marketing purposes. Organizations should be able to design and implement the marketing mix to serve the chosen
segment.

24. Briefly analyse a few methods of collecting primary data.

Primary data may be collected either through observation or through direct communication with respondents in one form or another through personal
interviews. There are several ways of collecting primary data.
These may be:
(i) Observation method,
(ii) Interview method,
(iii) Questionnaire method, and
(iv) Schedule method.

i. Observation Method:
In observation method, the information is sought by way of investigator’s own direct observation without asking from the respondent. The main advantage
of this method is that it is free from subjective biasness, as it is free from respondent’s willingness. It is, however, an expensive and time consuming method.
Moreover, the information provided by this method is very limited and some of the more busy people like executives may not be accessible to direct
observation.

ii. Interview Method:

Primary data may be collected either through personal interviews or through telephonic interviews:
(a) In the personal interviews the interviewer asks questions generally in a face to face contact. Through interview method more and reliable information
may be obtained. Personal information can be obtained easily under this method. It is, however, a very expensive and time consuming method, especially
when large and widely spread geographical sample is taken. Certain types of respondents, such as officials, executives or people of high income groups, may
not be easily accessible.
In this method, the respondent may give wrong and imaginary information. For effective interview there should be a good rapport with respondents which is
often very difficult to develop. For a good result the interviewer’s approach should be friendly, courteous, conversational and unbiased for which a proper
training is required.
(b) In telephonic interviews contact is made with the respondents through telephone.

The main merits of telephonic interviews are:

(i) It is more flexible and faster than other methods.
(ii) It is cheaper and less time consuming.
(iii) Recall is easy and replies can be recorded without causing embarrassment to respondents.
(iv) At times, access can be made to respondents who otherwise cannot be contacted for one reason or the other.
(v) No staff is required and wider representation of sample is possible.
This method also has several weaknesses. For example, the surveys are restricted to respondents who have telephonic facilities and little time is given to
respondents for considered answers. It is not suitable for intensive surveys where comprehensive answers are required for various questions.

iii. Questionnaire Method:

In this method a questionnaire is mailed to the person concerned with a request to answer the questions and return the questionnaire. This method is most
extensively applied in various researches of human and economic geography.
The main merits of this method are given below:
(i) There is low cost even when the universe is large and is widespread geographically.(ii) It is free from bias of interviewer as answers are respondent’s own
words.
(iii) Respondents, who are not easily approachable, can also be reached conveniently. Moreover, respondents are given enough time to give well thought
answers.
The main demerits of this method are:
(i) Low rate of return of the duly filled questionnaires.
(ii) It can be used only when the respondents are educated and cooperative.
(iii) The control of the questionnaire may be lost once it is sent.
(iv) It is difficult to know whether willing respondents are truly representative.
(v) This method is likely to be the slowest of all.

iv. Schedule Method:

This method of data collection is very much like the collection of data through questionnaires, with little difference that lies in the fact that schedules
(proforma containing a set of questions) are being filled in by the enumerators who are specially appointed for this purpose. Enumerators explain the aims
and objects of the investigation and also remove the difficulties which any respondent may feel in understanding the implications of a particular question.
This method is very useful in extensive enquiries and can lead to fairly reliable results. It is, however, very expensive and is usually adopted in investigations
conducted by governmental agencies or by some organizations. Population census all over the world is conducted through this method.
For the selection of an appropriate method, the objective, nature and scope of study, the availability of time and funds, and the level of precision required are
to be taken into consideration.

20. Define market and state the various classifications of markets.

A market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. This type of market may either
be a physical marketplace where people come together to exchange goods and services in person, as in a bazaar or shopping center, or a virtual market
wherein buyers and sellers do not interact, as in an online market.

The Primary Market

The primary market refers to the market where new issues (stocks and bonds not sold before) are sold. Investment bankers, acting as underwriters, bring new
issues to the market through the primary market. This can be done as either an Initial Public Offering (IPO), when the stock has not previously traded, or as a
seasoned offering once the stock has traded but new shares are being added to the market.

The Secondary Market

A secondary market is the market in which assets are traded after they have been sold through the primary market. In this market, investors trade directly
with each other through an exchange.
If the secondary market for a stock follows the characteristics we discussed previously, such as liquidity and marketability, and the issuer would like to issue
more shares through a seasoned offering, the issuer would have a much easier time selling the new shares in the primary market.
Other markets:
Capital Markets
Stock Markets
Bond Markets
Money Market
Cash or Spot Market
Derivatives Markets

21. What you mean by bank marketing? Discuss the various channels for banking services.
A process consisting of identifying the most profitable markets now in futures assessing the present and the futures needs of customer, setting business
development goals and making plans to meet them and managing various services and promoting them to achieve the plans.

24. What do you mean by data collection? Explain the methods of data collection.
Data collection is the process of gathering and measuring information on targeted variables in an established systematic fashion, which then enables one to
answer relevant questions and evaluate outcomes.

Technique Key Facts

 Interviews can be conducted in person or over the telephone
 Interviews can be done formally (structured), semi-structured, or informally
Interviews
 Questions should be focused, clear, and encourage open-ended responses
 Interviews are mainly qualitative in nature
 Responses can be analyzed with quantitative methods by assigning numerical
values to Likert-type scales
Questionnaires and Surveys
 Results are generally easier (than qualitative techniques) to analyze
 Pretest/Posttest can be compared and analyzed
 Allows for the study of the dynamics of a situation, frequency counts of target
behaviors, or other behaviors as indicated by needs of the evaluation
 Good source for providing additional information about a particular group, can
use video to provide documentation
Observations  Can produce qualitative (e.g., narrative data) and quantitative data (e.g.,
frequency counts, mean length of interactions, and instructional time)

 
 A facilitated group interview with individuals that have something in common
Focus Groups  Gathers information about combined perspectives and opinions
 Responses are often coded into categories and analyzed thematically
Ethnographies, Oral History, and Case Studies  Involves studying a single phenomenon
  Examines people in their natural settings
 Uses a combination of techniques such as observation, interviews, and surveys
 Ethnography is a more holistic approach to evaluation
 Researcher can become a confounding variable
 Consists of examining existing data in the form of databases, meeting minutes,
reports, attendance logs, financial records, newsletters, etc.
Documents and Records
 This can be an inexpensive way to gather information but may be an incomplete
data source

20. What are the constraints in using technology in the banking services? In the Indian setting.
Disadvantages
Money Laundering
Cases of online money laundering are on the rise, and this has exposed many online users to the predators.
Security
Banking security has improved significantly, however, so has hacking expertise. If your information is connected to the internet, there is always the
possibility it may get hacked.
Site Navigation
If you're new to online banking, it may take some time to get used to it, taking valuable time out of your work day. Online banking offers a large number of
transactions, so frustration may occur while you're learning to navigate the site. Banks also update web pages to add new features, requiring additional
learning and possibly the need to change account numbers or passwords. If you need help, you might encounter a lengthy wait when using the bank's
telephone customer service line.
User Apprehension
Some business owners may not feel comfortable with the idea of placing vital financial information into an online account, or may be apprehensive about
using the Internet. If you're a longtime small business owner who is used to doing banking in person or even by telephone, this hurdle might be difficult to
surmount.
Accessibility
If your business is located in a rural or remote area, your Internet options could be limited. Depending on your type of business, this can make conducting
transactions difficult. For example, if you operate a home-based business and you don't have access to a high-speed cable connection, you may have to use a
slower dial-up service. As a result, your business banking may take more time, or you might even experience times where you can't get online.

21. Describe the macro and micro factors influencing the market goods and services.
Environmental factors refer classwork

22. Describe the social factors influencing the behavioural profile of bank customers.
Social Factors influencing consumer buying decision can be classified as under:
Reference Groups
Immediate Family Members
Relatives
Role in the Society
Status in the society

Reference Groups
Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves
with. Every individual knows some people in the society who become their idols in due course of time.
Co workers, family members, relatives, neighbours, friends, seniors at workplace often form reference groups.
Reference groups are generally of two types:
Primary Group - consists of individuals one interacts with on a regular basis.
Primary groups include:
Friends
Family Members
Relatives
Co Workers
All the above influence the buying decisions of consumers due to following reasons:
They have used the product or brand earlier.
They know what the product is all about. They have complete knowledge about the features and specifications of the product.

Secondary Groups - Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with
them on a regular basis, Example - Religious Associations, Political Parties, Clubs etc.

Role in the Society

Each individual plays a dual role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a reputed firm
is also someone’s husband and father at home. The buying tendency of individuals depends on the role he plays in the society.

Social Status
An individual from an upper middle class would spend on luxurious items whereas an individual from middle to lower income group would buy items
required for his/her survival.

20. Explain the significance of service marketing.

A key differentiator: Due to the increasing homogeneity in product offerings, the attendant services provided are emerging as a key differentiator in the
mind of the consumers. Eg: In case of two fast food chains serving a similar product (Pizza Hut and Domino’s), more than the product it is the service
 quality that distinguishes the two brands from each other. Hence, marketers can leverage on the service offering to differentiate themselves from the
competition and attract consumers.
Importance of relationships: Relationships are a key factor when it comes to the marketing of services. Since the product is intangible, a large part of the
customers’ buying decision will depend on the degree to which he trusts the seller. Hence, the need to listen to the needs of the customer and fulfill them
through the appropriate service offering and build a long lasting relationship which would lead to repeat sales and positive word of mouth.
Customer Retention: Given today’s highly competitive scenario where multiple providers are vying for a limited pool of customers, retaining customers is
even more important than attracting new ones. Since services are usually generated and consumed at the same time, they actually involve the customer in
service delivery process by taking into consideration his requirements and feedback. Thus they offer greater scope for customization according to customer
requirements thus offering increased satisfaction leading to higher customer retention.
Feedback Improves Service
Unlike the marketing process for a tangible product, service marketing actually involves the consumer in the marketing process. He is engaged in the process
and contributes to a positive outcome. For this reason, it is important to seek consumer feedback and to use that feedback to improve service marketing
effectiveness.
Technology Impacts
Technology is having a major impact on the service economy. You can use technology to streamline service activities and provide do-it-yourself options for
consumers. Internet-based services, for instance, allow consumers to participate actively in the service marketing process, often never involving contact with
another human being. Having a website is important, because people like to get information about service providers before deciding which one to use.

24. Explain the main objectives of marketing research.

(1) To Provide Basis For Proper Planning:
Marketing and sales forecast research provides sound basis for the formulation of all marketing plans, policies, programmes and procedures.

(2) To Reduce Marketing Costs:

Marketing research provides ways and means to reduce marketing costs like selling, advertisement and distribution etc.

(3) To Find Out New Markets for The Product:

Marketing research aims at exploring new markets for the product and maintaining the existing ones.

(4) To Determine Proper Price Policy:

Marketing research is considered helpful in the formulation of proper price policy with regard to the products.

(5) To Study in Detail Likes and Dislikes of the Consumers:

Marketing research tries to find out what the consumers, (the men and women who constitute the market) think and want. It keeps us in touch with the
consumers, minds and to study their likes and dislikes.

(6) To Know The Market Competition:

Marketing research also aims at knowing the quantum of competition prevalent in the market about the product in question. The company may need reliable
information about competitor’s moves and strategies which are of immense significance for further planning.

(7) To Study The External Forces and Their Impact:

Marketing research provides valuable information by studying the impact of external forces on the organisation. External forces may include conditions
developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering in the market and their impact
on the company’s products.

20. Explain the difference between services marketing and product marketing.
PRODUCT
BASIS FOR COMPARISON SERVICE MARKETING
MARKETING

Meaning Product marketing Service marketing implies the marketing of economic activities, offered by the business to
refers to the process its clients for adequate consideration.
in which the
marketing activities
are aligned to
promote and sell a
specific product for
a particular
segment.

Marketing mix 4 P's 7 P's

Sells Value Relationship

Who comes to whom? Products come to Customers come to service.

customers.

Transfer It can be owned It is neither owned nor transferred to another party.

and resold to
another party.

Returnability Products can be Services cannot be returned after they are rendered.
returned.

Tangibility They are tangible, They are intangible, so it is difficult to promote services.
 PRODUCT
BASIS FOR COMPARISON SERVICE MARKETING
MARKETING

so customer can see

and touch it, before
coming to the
buying decision.

Separability Product and the Service cannot be separated from its provider.
company producing
it, are separable.

Customization Products cannot be Services vary from person to person, they can be customized.
customized as per
requirements.

Imagery They are imagery They are non-imagery and do not receive quick response from customers.
and hence, receive
quick response
from customers.

Quality comparison Quality of a Quality of service is not measurable.

product can be
easily measured.

22. Explain the various types of buying motives.

Product Buying Motives:

Product buying motives refer to those influences and reasons, which prompt (i.e. induce) a buyer to choose a particular product in preference to other
products. They include the physical attraction of the product (i.e. the design, shape, dimension, size, colour, package, performance, price etc. of the product)
or the psychological attraction of the product (i.e. the enhancement of the social prestige or status of the purchaser through its possession), desire to remove
or reduce the danger or damage to life or body of the possessor, etc. In short, they refer to all those characteristics of a product, which induce a buyer to buy
it in preference to other products.

A. Emotional Patronage Buying Motives:

When a buyer patronises a shop (i.e. purchases the things required by him from a particular shop) without applying his mind or without reasoning, he is said
to have been influenced by emotional patronage buying motives. Emotional patronage buying motives include the following:

1. Appearance of the shop:

Appearance of the shop is one of the important emotional patronage buying motives. Some people make their purchases from a particular shop because of
good or attractive appearance of the shop,
2. Display of goods in the shop:
Attractive display of goods in the shop also makes the buyers patronise a particular shop.
3. Recommendation of others:
Recommendation of others also constitutes one of the important emotional patronage buying motives. Some people purchase their requirements from a
particular shop because that shop has been recommended to them by others, i.e., by their friends and relatives.
4. Imitation:
Imitation also is one of the emotional patronage buying motives influencing the purchases of buyers. Some people make their purchases from a particular
shop just because other people make their purchases from that shop.
5. Prestige:
Prestige is one of the emotional patronage buying motives of the buyers. For instance, some people consider it a prestige to take coffee from a five-star hotel.
6. Habit:
Habit is also one of the important emotional patronage buying motives. Some people make their purchases from a particular shop for the simple reason that
they have been habitually making their purchases from that shop.

B. Rational Patronage Buying Motives:

When a buyer patronises a shop after careful consideration (i.e. after much logical reasoning and careful thinking) he is said to have been influenced by
rational patronage buying motives. Rational patronage buying motives include the following:
1. Convenience:
Convenient location proximity of a shop is one of the considerations influencing the purchases of many buyers from a particular shop. Many buyers, usually,
buy their requirements from a near-by shop, as it is convenient to them to make their purchases.
2. Low price charged by the shop:
Price charged by the shop also influences the buyers to patronise a particular shop. If the price charged by a shop for a particular product is relatively
cheaper, naturally, many people will make their purchases from that shop.
3. Credit facilities offered: The credit facilities offered by a store also influence the buying of some people from a particular shop. People who do not have
enough money to make cash purchases every time prefer to make their purchases from a shop which offers credit facilities.
4. Services offered:
The various sales and after-sale services, such as acceptance of orders through phone, home delivery of goods, repair service, etc., offered by a shop also
induce the buyers to buy their requirements from that shop. Rational buyers are, often, influenced by the various services or facilities offered by the shop.
5. Efficiency of salesmen:
The efficiency of the salesmen employed by a shop also influences the people in patronising a particular shop. If the employees are efficient and are capable
of helping the buyers in making their purchases, people naturally would flock to such a shop.
6. Wide choice:
Wide choice of goods offered by a shop is one of the rational considerations making the buyers patronise a particular shop. People generally prefer to make
their purchases from a shop, which offers wide choice (i.e. wide varieties of goods).
7. Treatment:
The treatment meted out by a shop to the customers is one of the rational considerations influencing the buyers to patronise a particular shop. Usually, people
would like to purchase their requirements from a shop where they get courteous treatment.