Mbfi Mkt Mix

7/31/2019 Mbfi Mkt Mix

1/17

MBFI

ASSIGMENT

ON

AXIS BANK(MARKETING MIX OF AXIS BANK)

AMINA NAZNEEN

S4 MBA

ROLL NO 3

ASIET


2/17

BANKING INDUSTRY AN OVERVIEW

A bank is a financial institution and a financial intermediary thataccepts deposits and channels those deposits into lending activities, either directlyor through capital markets. A bank connects customers with capital deficits tocustomers with capital surpluses.

Due to their critical status within the financial system and the economy generally,banks are highly regulated in most countries. Most banks operate under a systemknown as fractional reserve banking where they hold only a small reserve of thefunds deposited and lend out the rest for profit. They are generally subjectto minimum capital requirements which are based on an international set of capitalstandards, known as the Basel Accords.

The oldest bank still in existence is Monte dei Paschi di Siena, headquarteredin Siena, Italy, which has been operating continuously since 1472

HISTORY OF BANKING

Banking in the modern sense of the word can be traced to medieval andearly Renaissance Italy, to the rich cities in the northlike Florence, Venice andGenoa. The Bardi and Peruzzi families dominatedbanking in 14th century Florence, establishing branches in many other partsof Europe .[2] Perhaps the most famous Italian bank was the Medici bank, set up by

Giovanni Medici in 1397 .[3]

The earliest known state deposit bank, Banco di SanGiorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.[4]

The word bank was borrowed in Middle English from Middle French banque , fromOld Italian banca , from Old High German banc, bank "bench, counter". Bencheswere used as desks or exchange counters duringthe Renaissance by Florentine bankers, who used to make their transactions atopdesks covered by green tablecloths .[5]

One of the oldest items found showing money-changing activity is a silver Greek drachm coin from ancient Hellenic colony Trapezus on the Black Sea,

modern Trabzon, c. 350 325 BC, presented in the British Museum in London. Thecoin shows a banker's table ( trapeza ) laden with coins, a pun on the name of thecity. In fact, even today in Modern Greek the word Trapeza ( ) means botha table and a bank.

[edit ]Definition
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Bank_reserveshttp://en.wikipedia.org/wiki/Minimum_capital_requirementhttp://en.wikipedia.org/wiki/Basel_Accordshttp://en.wikipedia.org/wiki/Monte_dei_Paschi_di_Sienahttp://en.wikipedia.org/wiki/Sienahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/Venicehttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Bardi_familyhttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Bank#cite_note-1http://en.wikipedia.org/wiki/Bank#cite_note-1http://en.wikipedia.org/wiki/Bank#cite_note-1http://en.wikipedia.org/wiki/Medicihttp://en.wikipedia.org/wiki/Bank#cite_note-2http://en.wikipedia.org/wiki/Bank#cite_note-2http://en.wikipedia.org/wiki/Bank#cite_note-2http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Bank#cite_note-3http://en.wikipedia.org/wiki/Bank#cite_note-3http://en.wikipedia.org/wiki/Bank#cite_note-3http://en.wikipedia.org/wiki/Middle_Englishhttp://en.wikipedia.org/wiki/Middle_Frenchhttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Old_High_Germanhttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/Bank#cite_note-4http://en.wikipedia.org/wiki/Bank#cite_note-4http://en.wikipedia.org/wiki/Bank#cite_note-4http://en.wikipedia.org/wiki/Trabzonhttp://en.wikipedia.org/wiki/British_Museumhttp://en.wikipedia.org/wiki/Modern_Greekhttp://en.wikipedia.org/w/index.php?title=Bank&action=edit&section=3http://en.wikipedia.org/w/index.php?title=Bank&action=edit&section=3http://en.wikipedia.org/wiki/Modern_Greekhttp://en.wikipedia.org/wiki/British_Museumhttp://en.wikipedia.org/wiki/Trabzonhttp://en.wikipedia.org/wiki/Bank#cite_note-4http://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Old_High_Germanhttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Middle_Frenchhttp://en.wikipedia.org/wiki/Middle_Englishhttp://en.wikipedia.org/wiki/Bank#cite_note-3http://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank#cite_note-2http://en.wikipedia.org/wiki/Medicihttp://en.wikipedia.org/wiki/Bank#cite_note-1http://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Bardi_familyhttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Venicehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Sienahttp://en.wikipedia.org/wiki/Monte_dei_Paschi_di_Sienahttp://en.wikipedia.org/wiki/Basel_Accordshttp://en.wikipedia.org/wiki/Minimum_capital_requirementhttp://en.wikipedia.org/wiki/Bank_reserveshttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_institution


3/17

The definition of a bank varies from country to country. See the relevant countrypage (below) for more information.

Under English common law, a banker is defined as a person who carries on thebusiness of banking, which is specified as:

conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customer

In most common law jurisdictions there is a Bills of Exchange Act that codifies thelaw in relation to negotiable instruments, including cheques, and this Act containsa statutory definition of the term banker : banker includes a body of persons,

whether incorporated or not, who carry on the business of banking' (Section 2,Interpretation). Although this definition seems circular, it is actually functional,because it ensures that the legal basis for bank transactions such as cheques doesnot depend on how the bank is organized or regulated.

The business of banking is in many English common law countries not defined bystatute but by common law, the definition above. In other English common law

jurisdictions there are statutory definitions of the business of banking or bankingbusiness . When looking at these definitions it is important to keep in mind thatthey are defining the business of banking for the purposes of the legislation, andnot necessarily in general. In particular, most of the definitions are from legislationthat has the purposes of entry regulating and supervising banks rather thanregulating the actual business of banking. However, in many cases the statutorydefinition closely mirrors the common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current ordeposit account, paying and collecting cheques drawn by or paid in bycustomers, the making of advances to customers, and includes such otherbusiness as the Authority may prescribe for the purposes of this Act; (BankingAct (Singapore), Section 2, Interpretation).

"banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings orother similar account repayable on demand or within less than [3 months] ...or with a period of call or notice of less than that period;

2. paying or collecting checks drawn by or paid in by customers [7]
http://en.wikipedia.org/wiki/English_common_lawhttp://en.wikipedia.org/wiki/Current_account_(banking)http://en.wikipedia.org/wiki/Chequeshttp://en.wikipedia.org/wiki/Chequeshttp://en.wikipedia.org/wiki/Negotiable_instrumentshttp://en.wikipedia.org/wiki/Chequeshttp://en.wikipedia.org/wiki/English_common_lawhttp://en.wikipedia.org/wiki/Bank#cite_note-6http://en.wikipedia.org/wiki/Bank#cite_note-6http://en.wikipedia.org/wiki/Bank#cite_note-6http://en.wikipedia.org/wiki/English_common_lawhttp://en.wikipedia.org/wiki/Chequeshttp://en.wikipedia.org/wiki/Negotiable_instrumentshttp://en.wikipedia.org/wiki/Chequeshttp://en.wikipedia.org/wiki/Chequeshttp://en.wikipedia.org/wiki/Current_account_(banking)http://en.wikipedia.org/wiki/English_common_law


4/17

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), directcredit, direct debit and internet banking, the cheque has lost its primacy in mostbanking systems as a payment instrument. This has led legal theorists to suggestthat the cheque based definition should be broadened to include financialinstitutions that conduct current accounts for customers and enable customers topay and be paid by third parties, even if they do not pay and collect checks .[8]

STANDARD ACTIVITIES

Banks act as payment agents by conducting checking or current accounts forcustomers, paying check drawn by customers on the bank, and collecting checksdeposited to customers' current accounts. Banks also enable customer payments viaother payment methods such as Automated Clearing House (ACH), Wiretransfers or telegraphic transfer, EFTPOS, and automated teller machine( ATM).

Banks borrow money by accepting funds deposited on current accounts, byaccepting term deposits, and by issuing debt securities suchas banknotes and bonds. Banks lend money by making advances to customers oncurrent accounts, by making installment loans, and by investing in marketable debtsecurities and other forms of money lending.

Banks provide almost all payment services, and a bank account is consideredindispensable by most businesses, individuals and governments. Non-banks thatprovide payment services such as remittance companies are not normallyconsidered an adequate substitute for having a bank account.

Banks borrow most funds from households and non-financial businesses, and lendmost funds to households and non-financial businesses, but non-bank lendersprovide a significant and in many cases adequate substitute for bank loans, andmoney market funds, cash management trusts and other non-bank financialinstitutions in many cases provide an adequate substitute to banks for lendingsavings too. [clarification needed ]

CHANNELS

Banks offer many different channels to access their banking and other services:

Automated Teller Machines A branch is a retail location

Call center Mail: most banks accept cheque deposits via mail and use mail to communicate

to their customers, e.g. by sending out statements Mobile banking is a method of using one's mobile phone to conduct banking

transactions
http://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Direct_debithttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Bank#cite_note-7http://en.wikipedia.org/wiki/Bank#cite_note-7http://en.wikipedia.org/wiki/Bank#cite_note-7http://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Checkhttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Non-bank_financial_institutionhttp://en.wikipedia.org/wiki/Non-bank_financial_institutionhttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Call_centerhttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Call_centerhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Non-bank_financial_institutionhttp://en.wikipedia.org/wiki/Non-bank_financial_institutionhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Checkhttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Bank#cite_note-7http://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Direct_debithttp://en.wikipedia.org/wiki/EFTPOS


5/17

Online banking is a term used for performing transactions, payments etc. overthe Internet

Relationship Managers, mostly for private banking or business banking, oftenvisiting customers at their homes or businesses

Telephone banking is a service which allows its customers to performtransactions over the telephone with automated attendant or when requestedwith telephone operator

Video banking is a term used for performing banking transactions orprofessional banking consultations via a remote video and audio connection.Video banking can be performed via purpose built banking transactionmachines (similar to an Automated teller machine), or via a videoconference enabled bank branch.clarification

BUSINESS MODEL

A bank can generate revenue in a variety of different ways including interest,transaction fees and financial advice. The main method is via charging interest onthe capital it lends out to customers [citation needed ]. The bank profits from thedifferential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities.

This difference is referred to as the spread between the cost of funds and the loaninterest rate. Historically, profitability from lending activities has been cyclical anddependent on the needs and strengths of loan customers and the stage of the economic cycle. Fees and financial advice constitute a more stable revenuestream and banks have therefore placed more emphasis on these revenue lines tosmooth their financial performance.

In the past 20 years American banks have taken many measures to ensure that theyremain profitable while responding to increasingly changing market conditions.First, this includes the Gramm-Leach-Bliley Act, which allows banks again tomerge with investment and insurance houses. Merging banking, investment, andinsurance functions allows traditional banks to respond to increasing consumerdemands for "one-stop shopping" by enabling cross-selling of products (which, thebanks hope, will also increase profitability).

Second, they have expanded the use of risk-based pricing from business lending toconsumer lending, which means charging higher interest rates to those customersthat are considered to be a higher credit risk and thus increased chanceof default on loans. This helps to offset the losses from bad loans, lowers the priceof loans to those who have better credit histories, and offers credit products to highrisk customers who would otherwise be denied credit.
http://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Automated_attendanthttp://en.wikipedia.org/wiki/Telephone_operatorhttp://en.wikipedia.org/wiki/Video_bankinghttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Economic_cyclehttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/Risk-based_pricinghttp://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Risk-based_pricinghttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/Economic_cyclehttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Video_bankinghttp://en.wikipedia.org/wiki/Telephone_operatorhttp://en.wikipedia.org/wiki/Automated_attendanthttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Online_banking


6/17

Third, they have sought to increase the methods of payment processing available tothe general public and business clients. These products include debit cards, prepaidcards, smart cards, and credit cards. They make it easier for consumers toconveniently make transactions and smooth their consumption over time (in somecountries with underdeveloped financial systems, it is still common to deal strictlyin cash, including carrying suitcases filled with cash to purchase a home).

However, with convenience of easy credit, there is also increased risk thatconsumers will mismanage their financial resources and accumulate excessivedebt. Banks make money from card products through interest payments and feescharged to consumers and transaction fees to companies that accept the credit-debit - cards. This helps in making profit and facilitates economic development asa whole.

INDIAN BANKING INDUSTRY

The Indian Banking sector has been successful in maintaining its growth trajectorydue to low defaulter ratio, least complicated financial products, regularintervention by central bank, proactive adjustment of monetary policy and socalled conventional banking culture, which helped the industry survive throughglobal financial turmoil.

Macro-level drivers such as favourable demographics, robust economic growth andunder-penetration are benefitting the Indian Banking sector and hence the financialyear 2011-12 is anticipated to be another good year for the industry, according to

industry report card titled 'Indian banks are likely to ride an economic growthwave' by research firm Standard & Poor's (S &P).

Major statistics, developments, government policies and outlook pertaining to thesector are discussed hereafter.

Indian Banking Sector: Key Statistics

According to the Reserve Bank of India (RBI)'s 'Quarterly Statistics onDeposits and Credit of Scheduled Commercial Banks', March 2011,Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregatedeposits, while State Bank of India (SBI) and its associates accounted for21.6 per cent. The share of New private sector banks, Old private sectorbanks, Foreign banks and Regional Rural banks in aggregate deposits was13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively.

With respect to gross bank credit also, nationalised banks hold the highest
http://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Transaction_feehttp://en.wikipedia.org/wiki/Transaction_feehttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Debit_card


7/17

share of 52.8 per cent in the total bank credit, with SBI and its associates at22.1 per cent and New Private sector banks at 13.2 per cent. Foreign banks,Old private sector banks and Regional Rural banks held relatively lowershares in the total bank credit with 4.9 per cent, 4.6 per cent and 2.4 per centrespectively.

The report also found that scheduled commercial bank offices (with depositsof INR 10 crore or more) accounted for 69.1 per cent of the bank offices,97.3 per cent in terms of aggregate deposits and 95.6 per cent in total bank credit.

Another statement from RBI has revealed that bank credit enhanced by 3.9per cent in the April-September 2011 period while bank deposits grew by6.3 per cent. Bank advances rose 19.5 per cent, while bank deposits rose

17.38 per cent as on September 23, 2011 (on year-on-year basis). RBIexpects a credit growth of 19 per cent, and deposit growth of 17 per cent forfinancial year 2011-12.

Due to an increase of US$ 763 million in the foreign currency assets to US$276.462 billion, India's foreign exchange reserves swelled by US$ 749million to US$ 312.231 billion in the week ended October 7, 2011,according to RBI's Weekly Statistical Supplement.


8/17

AXIS BANK

Axis Bank India, the first bank to begin operations as new private banks in 1994after theGovernment of India allowed new private banks to be established. AxisBank was jointly promoted by the Administrator of the specified undertaking of theUnit Trust of India (UTI-I)Life Insurance Corporation of India (LIC)General Insurance Corporation Ltd.Also with associates viz. NationalInsurance Company Ltd., The New India AssuranceCompany, The OrientalInsurance Corporation and United Insurance Company Ltd. AxisBank in Indiatoday is capitalized with net income 1,812.93 crore. It has more than 1000 branch

offices and Extension Counters in the country with over 4846 Axis Bank ATM proving to be one of the largest ATM networks in the country. Axis Bank India commitsto adopt the best industry practices internationally to achieveexcellence.

Axis Bank has strengths in retail as well as corporate banking. By the end of December 2004, Axis Bank in India had over 2.7 million debit cards. This is thefirst bank in Indiato offer the AT PAR Cheque facility, without anycha rg es, to al l i ts Sav in gs Ban k customers in all the places across thecountry where it has p resence. With the AT PAR cheque facility,customers can make cheque payments to any beneficiary at any of itsexistence place. The ceiling per instrument is Rs. 50,000/-.The latest offerings of the b a n k a l o n g w i t h D o l l a r v a r i a n t i s t h e E u r o a n d P o u n d S te r l i n g v a r i a n t s o f t h e International Travel Currency Card. The TravelCurrency Card is a signature based pre- paid travel card which enables travelers global access to their money in local currency of the visiting country in a safe

and convenient way. The Bank has strengths in bothretaila n d c o r p o r a t e b a n k i n g a n d i s c o m m i t t e d t o a d o p t i n g t h eb e s t i n d u s t r y p r a c t i c e s internationally in order to achieve excellence


9/17

EVOLUTION:UTI was established in 1964 by an Act of Parliament; neither did theGovernment of India own it nor contributes any capital. The RBI was asked tocontribute one-half of itsinitial capital of Rs 5 crore, and given the mandate

of running the UTI in the interest of the unit-holders. The State Bank of Indiaand the Life Insurance Corporation contributed15 per cent of the capital each,and the rest was contributed by scheduled commercial ban ks wh ic hwere no t na t iona l ized then . This k ind of s t ruc ture for a un i t t rus tis no t found anywhere else in the world. Again, unlike other unit trustsand mutual funds, theUTI was not created toearn profits.I n t h e c o u r s e o f n e a r l y f o u r d e c a d e s o f i t s e x i s t e n ce , i t ( t h e U T I ) h a s s u c c e e d e d phenomenally in achieving its objective

and has the largest share anywhere in the worldof the domestic mutual fundindus try.'' The emergence of a "foreign exper t" during thesetting up of theUTI makes an interesting story. The announcement by the then Finance Ministerthat the Government of India was contemplating the establishment of a unittrustcaught the eye of Mr. George Woods, the then President of the World Bank.Mr. Woodstook a great deal of interest in the Indian financial system, as he wasone of the principalarchitects of the ICICI, in which his bank, First BostonCorporation Bank, had a sizeableshareholding. Mr. Woods offered, throughMr. B.K. Nehru, who was India's ExecutiveDirector on the World Bank,the services of an expert.The Centre jumped at the offer, and asked the RBI to holdup the finalization of the unittrust proposals till the expert visited India. The onlypoint Mr. Sullivan made was that the provision to limit the ownership of uni tsto individuals might result in unnecessarilyrestricting the market forunits. While making this point, he had in mind the practice inthe US,where small pension funds are an important class of customers for the unittrusts.The Centre accepted the foreign expert's suggestion, and the necessaryamendments weremade in the draf t Bill . Thus, began corporate investmentin the UTI, which receiveda b o o s t f r o m t h e t a x c o n c e s s i o n g i v e n b y t h e g o v e r n m e n t i nt h e 1 9 9 0 -

9 1 B u d g e t . A c c o r d i n g t o t h i s c o n c e s s i o n , t h e d i v i d en d s r e c e i v e d b y a c o m p a n y f r o m inves tments in o ther companies , including the UTI , were co mplete ly ex empt f ro mcorporat


10/17


11/17

n d s r e c e i v e d b y a c o m p a n y f r o m inves tments in o ther companies , including the UTI , were co mplete ly ex empt f ro mcorporate income tax, and provided the dividends declared by the investingcompanywere h igher than the divide nds rec eived. T he resul twas a phenomenal increase inc o r p o r a t e i n v e s tm e n t w h i c h a c c o u n t e d f o r 5 7 pe r c e n t o f the total capital under US-64 scheme. Because of high liquidity the corporate sector usedthe UTI to park its liquid funds.This added to the volatility of the UTI funds. Thecorporate lobbywhich perhaps subtly opposed the establishment of the UTI in the publicsectormade use of it for its own benefits later. The Government-RBI power gamestartedwith the finalization of the UTI charter itself. The RBI draft of the UTIcharter stipulatedthat the Chairman will be nominated by it, and one more nomineewould be on the Boardof Trustees. While finalizing the draft Bill, the

Centre changed this stipulation.TheC h a i r m a n w a s t o b e n o m i n a t e d by t h e G o v e r n m e n t , a l b e i t i n consultationwith RBI. Although the appointment was to be made in consultation withThe Reserve Bank, the Government could appoint a person of its choice asChairman even if the Bank did not approve of him

MISSION AND VALUES:OUR VALUES:

Customer Service and Product Innovation tuned to diverse needs of individual andcorporate clientele.

C o n t i n u o u s t e c h n o l o g y u p g r a d a t i o n w h i l e m a i n t ai n i n g h u m a n v a l u e s .

globalization and achieving international standards.and effectiveness built on ethical practices.

CORE VALUES:

Satisfaction through

Providing quality service effectively and efficientlySmile, it enhances your face value" is a service quality stressed onPeriodic Customer Service Audits

of Stakeholder valuethrough Teamwork, Integrity and People


12/17

MAERKETING MIX OR 7 PS

1.ProductThe product aspects of marketing deal with the specifications of the actual goodsor services, plus how it relates to the end users needs and wants.p roduc t normal ly inc ludes suppor t ing e lements such as war ran t ies, guarantees, andsupport.

2 . P r i c e -This re fe rs to the process o f se t t ing a p r ice for a p roduc t ,together withdiscounts. The price need not be monetary; it can plainlybe what is exchanged for the product or services, e.g. time, energy, orattention . Methods of set ting prices opt imal lyare in the domain of pricing art.

3. Place

-(or distribution): refers to how the product gets to the buyer; forinstance, point-of-sale assignment or retailing. This third P hasfurthermore at times been calledPlace, referring to the channel bywhich a product or service is sold (e .g . onl ine vs . re ta i l ) , whichgeographic region or industry, to which division (young adults,families, business citizens), etc. also referring to how the surroundings in whichthe product is soldin can influence sales.

4 . P romot ion -This inc ludes adver t i s ing , sa les p romot ion , inc lud ing promot iona leducation, publicity, and individual selling. Branding refers to the assortedstrategies of promoting the product, brand, or company.

5. People-An essential ingredient to any service provision is the use of appropriate staff andpeople. Recruiting the right staff and training them appropriately in thedel ivery of their servic e is essent i a l i f theorganiz at ion wants t o obta in a form o f compet i t iveadvantage.Consumers make judgments and deliver perceptions of the service

based onthe employees they interact with. Staff should have the appropriateinterpersonal skills,aptitude, and service knowledge to provide the servicethat consumers are paying for.Many British organizations aim to apply for theInvestors in People accreditation, whichtells consumers that staff is taken care off by the company and they are trained to certainstandards.6. Process


13/17

Refers to the systems used to assist the organization in deliveringthe service.Imag ine you walk into Bur ger King and you orde r aWhopper Meal and you get itdelivered within 2 minutes. What was theprocess that allowed you to obtain an efficient service delivery? Banks that sendout Credit Cards automatically when their customers old one hasexpi red aga in requi re an e ff ic ien t p rocess to iden t i fy expi ry da tesan d renewal. An efficient service that replaces old credit cards will fosterconsumer loyal tyand confidence in the company.7. Physical Evidence -Where is the service being delivered? Physical Evidence is theelement of the service mix which allows the consumer again to make judgments ontheorganization. If you walk into a restaurant your expectations are of aclean, friendlyenvironment. On an aircraft if you travel first class you expectenough room to be able tolay down! Physical evidence is an essential ingredient of

the service mix; consumers willmake perceptions based on their sight of theservice provision which will have an impacton the organizations perceptual plan of the service.

MARKETING MIX OF AXIS BANK

Once the marketing strategy is developed, there is a "Seven P Formula" that shouldbeused to continually evaluate and reevaluate your business activities. These sevenare: Product, Price Promotion Place Process Positioning People.As products, markets, customers and needs change rapidly, company mustcontinuallyrevisit these seven Ps to make sure you're on track and achievingthe maximum results possible for you in today's marketplace.

PRODUCT


14/17

To begin wi th , deve lop the hab i t o f looking a t your p roduc t asthough you were anoutside marketing consultant brought in to help yourcompany decide whether or not it's in the right business at this time. Ask criticalquestions such as, "Is the current product or service, or mix of products and

services, appropriate and suitable for the market and thecustomers of today?"Develop a habit of assessing your business honestly and asking,

Are these the right products or services for our customers today? Compared to your competitors, is your product or service superior insomesignificant way to anything else available? If so, what is it? If not, couldyoudevelop an area of superiority? Should you be offering this product or serviceatall in the current marketplace? Product variety, quality and its features.

Is there a market for the service on offer? Is the market growing or shrinking? Is the service new or established? T h e c o m p e t i t i o n p r e v a i l i n g i n t h e m a r k e t f o r t h e s e r v i c e o

n o f f e r ? The USP of the product.

Products and Services on offered by AXIS Bank:Accounts:

Easy Access Accounts Prime Savings Account Salary Account Womens Saving Account Senior Privilege Account Defense Salary Account

Trust & NGO Savings Account

Azzadi No frill

RFC (D) Account

Pension savings Account.

Deposits Fixed Deposits Recurring deposits Encash 24


15/17

Tax Saver Fixed DepositsLoans: Home loan Personal loan Loan Against Property Loan Against Security Car Loans Study Loans Two Wheeler Loan Consumer LoanInvestments: Online Trading Mutual Funds Fixed Income Depository Services E Depository ServicesInsurance: Health Insurance Family Health Health guard

PROCESS

The fifth element in the marketing mix is the process. Develop the habit of standing back and looking at every visual element in the process or service throughthe eyes of a critical prospect. Remember, people from their firs timpression about you within the first 30seconds of seeing you or someelement of your company. Small improvements in the process or externalappearance of your product or service can often lead tocompletelydifferent reactions from your customers. With regard to the

process of your company,your product or service, you should think interms of everything that the customerseesf r o m t h e f i r s t m o m e n t o f c o n t a ct w i t h y o u r c o m p a n y a l l t h e way throughthe purchasing process. Process refers to the way your product orserviceappears from the outside. Packaging refers to your people and how theydress and groom.It refers to your offices, your waiting rooms, your


16/17

brochures, your correspondence andevery single visual element about yourcompany. Everything accounts. Everythinghelpso r h u r t s . E v e r y t h i n g a f f e c t s y o u r c u s t o m e r 's c o n f i d e n c e a b o u t d e a l i n g with you.

PHYSICAL ENVIRONMENT/EVIDENCEPhysical Evidence is the element of the service mix which allows the consumeragain tomake judgments on the organization. If you walk into a restaurant yourexpectations areof a clean, friendly environment. On an aircraft if you travel firstclass you expect enoughroom to be able to lay down! Physical evidence isan essential ingredient of the servicemix; consumers will make perceptionsbased on their sight of the service provision whichwill have an impact on theorganizations perceptual plan of the service.

Internet/Web Pages Paperwork Brochures Furnishings Business Cards Building Signage Financial Reports

Tangibles Punch Lines Employees Dress Code

PEOPLE

The final P of the marketing mix is people. Develop the habit of thinking in termsof the people inside and outside of your business who are responsible for everyelement of your sales and market ing strategy and activities . It's amazinghow many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketingstrategy and the marketing mix, and thenpay little attention to the fact that every singledecision and policy has to becarried out by a specific person, in a specific way. Your ability to select,recruit, hire and retain the proper people, with the skills and abilities


17/17

Mbfi Mkt Mix

Documents

Transcript of Mbfi Mkt Mix