Promotional Statergies Adopted By Sbi Marketing Essay
The need for this article to be done on particular topic merely arises to get insight into details regarding company and its products ,by conducting study on particular topic I will come to know what is the performance of the company ,how they have planned to withstand in the market, what is its pricing strategy ,marketing strategy and I will also come to know about target customers and channels used for spreading their product in the market therefore overall I will get idea about all of marketing. Mainly about the product and the company.
As my article topic is"An Analytical Study on Promotional Statergies adopted By SBI" by conducting study on this topic it will help me in understanding different types Strategies adopted by SBI. What is the pricing strategy used by the company. What is their position in the market concerned to financial product and about different tactics used in selling their products, about their sponsors and registrars and this study will help me know about SBI which was number one public sector bank and how it has been replaced by private sector bank in short period and how it has increased its shares in the market. Overall objective of this project is to know about the activities carried out by the company to withstand in the market to differentiate itself in banking sector.
MAIN OBJECTIVES OF THE STUDY IS
To know the strategies adopted by SBI
To know the Strategic Analysis
To know the Strategy Implementation
To study the Types of strategies
To know the SWOT analysis
Therefore for last 25 years SBI was no.1 in position in banking sector where it acted has a benchmark for all banks but after 1991 private sector came into existence in banking sector with asset management of Rs.40, 000 corers. Therefore this study will help me to know about all strategies used by SBI to promote their product in initial stage.
IMPORTANCE OF THE ARTICLE
Importance of this article is to know about promotional activities adopted by SBI from its existence and to know about strategies used by SBI to cope up with environment
It will be very difficult to get the information regarding strategies management because the branch manager not in time.
It is very difficulty to taken the appointment from the branch manager.
Cost is limiting factor.
For this study I have collected primary as well as secondary data. Primary data I collected through questionnaire by asking directly to the and Branch Manager of SBI Bidar.
Secondary data I will collect through Internet, periodicals, news papers, magazines and books.
I collected the data regarding the strategies management in SBI from primary and secondary data.
The major participants ofÂ the Indian financial system are the commercial banks, the financial institutions (FIs), encompassing term-lending institutions, investment institutions, specialized financial institutions and the state-level development banks, Non-Bank Financial Companies (NBFCs) and other market intermediaries such as the stock brokers and money-lenders. The commercial banks and certain variants of NBFCs are among the oldest of the market participants. The FIs, on the other hand, are relatively new entities in the financial market place.
PURPOSE OF THE STUDY
Purpose of this project preparation is to gain knowledge regarding financial products as my field of interest are marketing and finance this study as helped me a lot in understanding concepts very clearly and my final objective is to prepare report which is useful to organization. Through survey and telephonic interview I came know about different queries asked by the customer and to handle them. By interacting directly with customer increases my confidence level to handle any sought of queries. This study is carried out to get insight of the company and product and data collected should help the company in turn. And this as helped me a lot in improving my communication and interpersonal skill
Banking Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, draft, and order".
In its broadest sense, strategic management is about taking "strategic decisions" - decisions that answer the questions above.
In practice, a thorough strategic management process has three main components, shown in the figure below:
This is all about the analyzing the strength of businesses' position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including:
PEST Analysis - a technique for understanding the "environment" in which a business operates
Scenario Planning - a technique that builds various plausible views of possible futures for a business
Five Forces Analysis - a technique for identifying the forces which affect the level of competition in an industry
Market Segmentation - a technique which seeks to identify similarities and differences between groups of customers or users
Directional Policy Matrix - a technique which summarizes the competitive strength of a businesses operation in specific markets
Competitor Analysis - a wide range of techniques and analysis that seeks to summarize a businesses' overall competitive position
Critical Success Factor Analysis - a technique to identify those areas in which a business must outperform the competition in order to succeed
SWOT Analysis - a useful summary technique for summarizing the key issues arising from an assessment of a businesses "internal" position and "external" environmental influences.
Â Strategic Choice
This process involves understanding the nature of stakeholder expectations (the "ground rules"), identifying strategic options, and then evaluating and selecting strategic options.
Often the hardest part. When a strategy has been analyzed and selected, the task is then to translate it into organizational action.
Companies device several strategies to sustain themselves in the market, earn profit and gain a competitive advantage over competitors. Firms functioning in the market with same product and serving the same customer segments face immense competition from each other . Pricing strategy is one the important step undertaken by the company to differentiate itself from its competitors .There are three types of generic strategies through which company can gain competitive advantage those are cost leadership strategy, differential strategy and focus strategy. It possible to implement the mix of these three strategies therefore competitive strategy should be developed on the basis of positions a company holds in the market. Marketing intelligence system helps organization to understand and analyze competitor's strategies better.
Pricing of products and services is a crucial issue for mangers and it involves through deep understanding of principles and practices governing the business environment. Therefore arriving right price is important for the company.
Marketers typically involve in price and non-price competition. A marketer resorting to price competition competes with the competitors on the price front by offering the product or service at the same price or at a lower price in non-price competition marketers try to increase their sales by concentrating on the factors other than the price.
A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of micro environmental factors
A marketing strategy also serves as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service.
A strategy consists of well thought out series of tactics. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. It is important that these objectives have measurable results.
A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations should be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.
TYPES OF STRATEGIES:
Every marketing strategy is unique, but if we abstract from the individualizing details, each can be reduced into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below:
â€¢ Strategies based on market dominance - In this type, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies:
Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm's sustainable competitive advantage.
o Cost leadership
o Product differentiation
o Market segmentation
â€¢ Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
o Close followers
o Late followers
â€¢ Growth strategies - In this type it tells about the question, "How should the firm grow?" That is by means of
o Horizontal integration
o Vertical integration
Analysis of statergy takes following steps
â€¢ Marketing warfare strategies Warfare based strategies- This types draws parallels between marketing strategies and military strategies
Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy.
Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.
Thus, for example, new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.
Indeed, the most successful marketer is often the one who trains his or her 'gut-reaction' to simulate that of the average customer!
For most of his or her time the marketing manager is likely to be using his or her considerable intelligence to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed!
This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists. It is often relatively crude and would, if given in answer to a business school examination, be judged a failure of marketing. On the other hand, it is the real-life world of marketing! Marketing is pretty much the best thing a business can do.
Developing marketing strategy
With an understanding of business' internalÂ strengths and weaknesses and the external opportunities and threats, marketer can develop a strategy that plays to his own strengths and matches them to the emerging opportunities. Companies alsoÂ identify its weaknesses and tryÂ to minimize them.
Key elements of a successful marketing strategy
One of the key elements of a successful marketing strategy is a thorough understanding of who the customers are and what "needs" they are looking to satisfy. Customer groups or segments can be identified and each targeted with marketing activity that specifically addresses their particular needs.
In order to meet customer needs and remain competitive, it is important to identify and respond to any changes in customer needs and attitudes in your industry and in the broader economic climate. It is therefore vital that you assess business environment when developing marketing strategy.
Company can then create a marketingÂ strategyÂ that makes the most of its strengths and matches them to the needs of the customers they want to target. For example, if a particular group of customers is looking for quality first and foremost, then any marketing activity aimed atÂ them should draw attention to the high quality service.
It is important to thinkÂ through the consequences of your marketing strategy to make sure it's realistic. For example, there is no point inÂ basing a strategy on rapid growth if you won't be able to produce enough goods. The best strategy will reflect your own strengths and weaknesses. See our page within this guide onÂ strengths and weaknesses.
A key element often overlooked is that of monitoring and evaluating how effective your strategy has been. This control element not only helps you see how the strategyÂ is performing in practice, it can also help inform your future marketing strategy.
Don't forget that your marketing plan (your action plan for implementing your marketing strategy) needs to be constantly reviewed and updated or replaced when necessary - just like your own products or services
personal and flexible customer service
special features or benefits that your product offers
limited financial resources
lack of an established reputation
inefficient accounting systems
increased demand from a particular market sector
using the Internet to reach new markets
new technologies that allow you to improve product quality
The emergence of a new competitor
More sophisticated, attractive or cheaper versions of your product or service
New legislation increasing costs
A downturn in the economy
ANALYSIS & INTERPRETATION OF DATA
In analysis part I will elaborate the data collected where I will specifically explain all the points mentioned below by means of tabulation and visual aids.
Price of different products present in the portfolio of SBI.
Different Strategies adopted by SBI.
Growth of SBI in past ten years.
Their growth rate.
Market changes according to inflation
Pricing strategy adopted by SBI.
Consequences led due change in investment pattern.
Growth strategies adopted.
Vision of SBI.
Mission of SBI.
Process used for implementation of strategies in promoting their products.
Steps undertaken for reviewing the implemented strategies.
Operation management of SBI.
The process carried for daily transactions.
And I will compare all products present in SBI in terms of price, proportion, their exit and entry load and their and I mention about specific products which helped in the growth of the company.
In interpretation part I will explain about the insight of the concepts explained in analysis part. And what it is all about and I will draw out some conclusion on the basis of analysis.
SOME OF PROMOTIONAL STATERGIES ADOPTED BY SBI
The State Bank of India (SBI) is set to add a new chapter to the channels of Indian banking. The country's largest bank is in the process of acquiring a bank in the US . If successful, this would be a huge cultural change for Indian banking. So far, the main thrust of foreign operations of Indian banks was to support and service India 's foreign trade. Lending to the ethnic community was another stream of business. And given this captive business, the foreign branches of Indian banks never took the trouble to undertake mainstream banking in the host country. Anyway, even if they had tried, their low resource base and inadequate technology would have been too big a handicap. In that sense, the strategy adopted by SBI is a complete break from the past. It would be a truly local presence. But acquisition is the easier part of the deal. The bigger challenge lies in successfully Integrating the acquired entity within the SBI fold. It's no mean task given the huge cultural mismatch in the way Indian banks function and the way US banks function. As opposed to highly technology-driven delivery by US banks, Indian public sector banks still largely rely on human interface for the delivery of various services. However, the cultural mismatch need not always be a negative. According to a study by Booze Allen Hamilton, branch banking seems to be making a comeback in the US . And given its expertise in manning branches, SBI can achieve a good technology-manpower balance to make its US venture a success.
FINDINGS AND SUGGESTIONS
From the above data collection I found that
The recruitment policy should be flexible enough to take care of the fast changing human resource needs of the organisation.
policies should be evaluated to ensure their alignment with corporate strategies, objectives and policies.
It is preparing financial accounts monthly and they consolidate to draw final appraisal report.
They should set a standard in measuring the performance of the teams of employees.
They should organize some activities for the teams to increase the strategies in the management.
They should improvement in appraisal process
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