Course Outline: Marketing of Banking and Financial Services

Course code: MK 505

Credit: 3, Core Course
Area: Marketing
Program: PGDM-B&FS
Term III Academic Year 2020-21
_______________________________________________________________________
Instructor Name : Prof. Nalin Jain
Room no. : 506, Faculty block
Email : [email protected]
Phone (Ext. no.) : 110
Consultation Hours : Wednesday 2.00 to 2.30 (prior intimation preferred)

1. Course Description

After the foundation course on Marketing Management in Term I, the stage is now set for
exploring in-depth the unique aspects of marketing banking and financial services,
especially in the context of fast growing Indian economy. The Indian as well as global
financial services sector has seen some milestone changes.All businesses in the financial,
domain today face immense competitive challenges in contemporary markets. There
challenges are bigger than other sectors. Beyond just servicing customers to a level of
satisfaction higher than any competitor, they have to create and sustain customer
relationships based on continuously increasing the value delivered. In the present context,
the effective practice of the marketing process is not just important but critical for the
very existence of banking and financial companies.

This course will introduce and expose students to the marketing process, practices and
concepts as applicable in modern banking and financial service organizations. It will take
the students through the various steps that a practitioner follows to evolve and create
winning marketing strategies. The course will empower the students to design and
implement the marketing programs using the seven elements of service marketing mix. It
will equip the students to control the marketing effort to achieve the objectives of the
business.

2. Course Objectives
At the end of the course the students should be able to:

1. Distinguish the characteristics of marketing financial services from marketing of

products and other services
2. Develop and apply marketing strategy, marketing plan as well as the marketing mix for
financial services
3. Use customer relationships and bank branch to achieve marketing objectives
 3. Mapping between Course objectives and Program Objectives

Program Outcomes (POs)

CO1 CO2 CO3
PO1: Student should be able to write well organized and 2 2
grammatically correct business reports and letters.
PO2: Student should be able to make effective oral 2 2 2
presentations.
PO3: Student should be able to demonstrate critical thinking 1 3 2
skills by understanding the issues with a strong focus on
banking and financial services, evaluating alternatives on the
basis of multiple perspectives and presenting a solution
including conclusions and implications
PO4: Student should be to demonstrate problem solving skills 3 3
by understanding and defining the problem related particularly
to banking and financial services, analyzing it and solving it by
applying appropriate theories, tools and techniques.
PO5: Student should be able to illustrate the role of responsible 2 2
leadership in management.
PO6: Student should be able to identify social concerns and 2 2 2
ethical issues in management.
PO7: Students should be able to identify challenges faced by 2 3 2
banks and financial institutions in the global business
environment.
PO8: Student should be able to take decisions in the global 2
business environment with special focus on banking and
financial institutions.

4. Pedagogy
An appropriate mix of:
▪ Interactive Lectures and Discussions (Active participation expected).
(Students with prior marketing experience are welcome to share their learning and challenges)
▪ Case Discussions
(Prior reading, analysis and preparation of the case is a prerequisite for class attendance)
▪ Activity based Exercises and Assignments
▪ Project based on Organization study
▪ Role Plays

5. Course Evaluation Criteria (CEC) (%)

1 Active class participation in case and class discussions 10%
2. Case analysis and presentation 15%
3. Project total: 20%
I. Report (Part I and Part II) 10%
II. Class Presentation 10%
4. Mid Term Examination 20%
5. End term examination 35%
Guidelines
Active Class Participation in Case and Class Discussions
Relevant contribution in case and class discussions will be evaluated in each session on the
basis of quality of contribution to the learning experience.

Case Analysis and Presentation

1. Case analysis and preparation may be done in groups formed with (6 students in each), but class
room discussion will be carried out and evaluated individually.
2. Evaluation will be done on basis of:
a. Analysis of case assigned to his/her group and presented in the scheduled session
b. Relevant participation in case discussions in class
3. Case analysis and presentation should be in the following format:
a. Brief Background and Issues that need to be addressed
b. Answer to questions raised in the case
c. Alternative solutions with evaluation of each option
d. Recommended solutions, prescriptions for implementation and projected results
e. Key learning from the case
Project
A project based on study of a marketing practice in an assigned banking or financial service organization
is to be undertaken in groups. Details will be announced

6. MAPPING BETWEEN COs, POs and CECs

Course Evaluation Components (CECs)
COs POs
CEC1 CEC2 CEC3 CEC4 CEC 5
CO1 PO2, PO5 √ √ √
CO2 PO1-8 √ √ √ √
CO3 PO 1-7 √ √

7. Resources

7.1 Text Book (TB)

1. Bapat, D. Marketing of Financial Services 1st ed. Delhi: Wiley
2. Ennew, Christine and Waite, Nigel (2013) Financial Services Marketing: An
International Guide to Principles and Practice 2nd ed. Great Britain: Routledge

7.2 Supplementary Reading

1. Kotler, Keller, Koshy and Jha; Marketing Management; 14th edition, A South Asian
Perspective by Pearson Publication
2. Estelami, Hooman (2012) Marketing Financial Services 2nd ed. U.S.A.: Dog Ear
Publishing
3. Ehrlich, Evelyn and Fanelli, Duke (2004) The Financial Services Marketing Handbook:
Tactics and Techniques that Produce Results 1st ed. U.S.A.: Bloomberg Press
4. Harrison, Tina (2000) Financial Services Marketing 1st ed. England: Pearson Education
Ltd.
5. Khanna, P. K. and Arora, Amit (2013) Insurance Marketing 1st ed. Delhi: Black Prints
6. Faizanuddin, Md. and Kumar, Binay (2012) Marketing of Financial Services 1st ed.
Delhi: APH Publishing Corporation
 7. Payne, Adrian (1995) The Essence of Services Marketing, Delhi: Prentice Hall of India
Private Limited
8. Albrecht, Karl and Zemke, Ron (1990) Service America U.S.A.: Warner Books Inc.

Reference book(s) (RB)

1. Marketing Management; Joel Evans & Barry Berman; Cengage learning
2. Services Marketing Integrating Customer Focus Across the Firm; 6th Edition ; Valarie
Zeithaml, Mary Jo Bitner, Dwayne D Gremler, Ajay Pandit;. McGraw Hill
3. Marketing Concepts & Cases by Michael.J. Etzel, Bruce J.Walker, William J.Stanton,
Ajay Pandit. Tata Mcgraw Hill
4. Services Marketing; People, Technology, Strategy; Christopher Lovelock, Jochen Wirtz,
Jayanta Chatterjee; Pearson Education
5. Services Marketing the Indian perspective; Ravi Shankar; Excel Books
6. Marketing Management, 4th Edition; Rajan Saxena; Tata Mcgraw Hill.
7. Marketing Management Global perspective, Indian Context; 4th Edition; VS Ramaswamy
& S Namakumari;

7.3 Online and Other Published References

Relevant Papers published in:
• The International Journal of Bank Marketing (IJBM)
• The Journal of Financial Services Marketing (JFSM)
• The Journal of Services Marketing (JSM)
• The Journal of Financial Services Research (JFSR)
• International Journal of Marketing, Financial Services & Management Research
• Bank Quest: The Journal of the Indian Institute of Banking & Finance
• Prajanan: Journal of Social & Management Sciences (National Institute of Bank
Management, Pune)
• Life Insurance Today
• Insurance Times
• Journal of Marketing
• Journal of Market Research
• Any other ISBN Journal with Marketing content
• HBR
8. Session Plan: (Appropriate Readings will be announced and provided as required)
Session Topic Reading/Case/ Exercise
1&2 Review of Marketing Concepts and Introduction Chapter 1 Text Book 1(TB1)
to Marketing Banking & Financial Services Chapter 3 Textbook 2 (TB2)
• Defining Financial Services Case: Jyske Bank
• Difference between Financial and other
Services; typical characteristics of Financial
Services
• Role, Contribution and Context of Financial
services
• Challenges of Marketing Financial Services
• Marketing of Banking Services in India
3 The Financial Services Market, Products and Chapter 2 TB2
Participants
• Financial Products and their variants
• Banking and money transactions
• Credit and Lending
• Life and General Insurance
4 Customer Centricity & Internal Marketing in Chapter 1; (TB)
Banking and Financial Services Case Study: Yes Bank
• Implementing Customer centric Practices
• Essence of Internal Marketing
• Serving Internal Customers to Satisfaction
• Service Profit Chain
5 Understanding Banking and Financial Services Chapter 4 & 5 TB1
Customer and Decision Making Chapter 6 TB2
• Consumer Expectations and Perception in Case: Merrill Lynch
Financial Services Supernova
• Retail Buyer vs Corporate/ Business Buyer
• Information search for selecting financial
services
• Researching financial Services Customers
6 STP for Financial Services Chapter 6 TB1
• Consumer and Business Market Segmentation Chapter 7 TB2
• Segmenting in a digital World
• Types of Targeting
7 Marketing Strategy for Financial Services Chapter 7 TB1
• Strategy Development and Formulation Chapter 4 TB2
Case Study: Bharat Bank
8 Market Planning for Financial services Chapter 3 TB1
• Market Plan development Chapter 4 TB2
9 Financial Product Management and New Product Chapter 8 TB1
Development Chapter 10 TB2
• Designing Banking and financial Service Products Chapter 3; (SR 3)
• Portfolio Management Case: TBA
10 Pricing Banking and Financial Services Chapter 9 TB 1
• Role and characteristics of pricing in financial Chapter 12 TB 2
Offerings Case: TBA
• Setting & adapting price
• Initiating & responding to price change
• Impact of Digital on Pricing
Mid Term Examination
11 Channels for Marketing Banking and Financial Chapter 10 TB1
Services Chapter 13 TB 2
• Role of marketing channels Case: TBA
• Direct and Indirect Channels
• Consumer Convenience
• Channel decisions
• Role of DSA/ DMA in Financial Services
Marketing
12 Communication and Promotion for Banking and Chapter 11 TB1
Financial Services Chapter 11 TB2
• Developing a communication mix & strategy Case: TBA
• The Impact of digital
13 Selling Banking and Financial Services Chapters 12 TB 1
• Managing the sales function Case: TBA
• Personal selling (roles, competencies), sales
force management and Sales Promotion.
• Cross and up Selling
14 Challenges in Branding Financial Offering Chapter 13 TB1
• Devising Brand Strategy Case: TBA
• Developing & Rebranding Bank and Financial
Service Brands
• Building and leveraging Brand in Financial
Services
15 Service Delivery and Service Quality Chapter 18 TB 1
• Service process blueprint Design Chapter 15 TB2
• Standards for Service Case TBA
• Service Quality and Customer Satisfaction
• Managing Quality
• Service Failure and Recovery
16 Customer Relationship in Banking and Financial Chapter 20 TB 1
Services Marketing Chapter 14 TB 2
• Customer Satisfaction Case: TBA
• Customer Acquisition
• Customer Retention and Growth strategies
• Digital Marketing and CRM
• Relationship Marketing
17 Bank Branch and Retail Product Marketing Chapter 14 & 15 TB 1
• Tangibles and Servicescape Case: TBA
 • Marketing at Bank Branches
• Marketing of Retail Products
• Marketing of Corporate Products
• Impact of Digital Medium
18 Marketing to B2 Clients Chapter 16 (TB)
• Evolving Marketing mix for Corporate Clients Case: TBA
• Relationship Focus for Service
19 Marketing Leadership and Organization Culture Chapter 19 (TB)
• People in Banking and financial Services Case: TBA
• Employees in Service Delivery
• Customer Role in Service Delivery
20 Project Presentations and Review
End Term Examination

9. ACADEMIC INTEGRITY & CLASS RULES

a) Plagiarism is the use of or presentation of ideas, works that are not one’s own and which
are not common knowledge, without granting credit to the originator. Plagiarism is
unacceptable in IMI and will invite penalty. Type and extent of penalty will be at the
discretion of the concerned faculty.
b) Cheating means using written, verbal or electronic sources of aid during an examination/
quiz/ assignment or providing such assistance to other students (except in cases where it
is expressly permitted by the faculty). It also includes providing false data or
references/list of sources which either do not exist or have not been used, having another
individual write your paper or assignment or purchasing a paper for one’s own
submission. Cheating is strictly prohibited at IMI and will invite penalty as per policies of
the Institute.