Introduction

Marketing and the marketing process

 Pillars: Tech, Risk and Governance
The Practice of Management, Peter
F. Drucker…
• Business Purpose:…..
• Functions:………Mktg. is the
OBJECTIVE:
PURPOSE:
EARNING distinguishing & unique function
CREATING &
RETAINING
PROFIT & SAVE, of any business. If FIs want to
REINVEST FOR
CUSTOMER
SUSTAINABILITY earn a profit (Objective)…… fulfil
the purpose.

Marketing function deals with how

FUNCTIONS: the FIs can differentiate themselves
INNOVATION AND
MARKETING from others in creating and
delivering value by attracting and
retaining customers so that the
Transformation and Restructuring business purpose can be fulfilled.
Now a Days

• Strongly customer-focused (ADCs)

• Heavily committed to marketing (Physical & Digital
promotional campaign, Customer awareness program for…
Debit/Credit Card, Agent, etc)

Understanding and Satisfying Customer Needs

UN-STP-Products/Services for SN (Value): EM-CRM-Value (E)

Now a Days

• Customer Value & Customer Relationship are important-

• Tech. changes (Banking Software)
• Economic (High Value – Low Value)
• Social (Hedonic consumption)
• Environmental (Green Banking, Sustainable Financing)

• Spending carefully and reassessing the relp. with brands (real

and lasting value)
 WHAT IS MARKETING?

• The aim (create and capture value).

• CCDVTP (Understanding-satisfaction-target mkt.-

employees-lasting relp.-value)
 What Is Marketing?

• More than any other business function (…), marketing

deals with customers.

• How to create customers?

 How do marketers create
Customers?
• S-1: Identifying needs in the marketplace (Deposit, Lending, Payment, Advisory Services,
etc).
• S-2: Finding out which needs it can profitably serve (Lending in Retail: Home, Car, Personal,
Credit Card, Consumer Durables, Education, OD, Loan against salary, Gold loan).
• S-3: Developing goods and services to convert potential buyers into customers (Gold Loan).
• These activities include-
• Need identification
• Product development
• Setting price (cost, competition, customers ability )
• Communication (Eligible candidates can avail a loan within one day)
• Making product available (Employee’s readiness)
• After-sales service and follow-up to ensure satisfaction
 What Is Marketing?
• Simplest definition of Marketing – managing profitable CR

• The two-fold goal of marketing is:

• To attract new customers by promising superior value
• To keep and grow current customers by delivering
satisfaction

• Wal-Mart (Save money. Live Better), Disney (Imagineers - make

a dream come true today), Apple (Think Different – customer-
driven innovation)
What Is Marketing?

• Banking…….Exercise
• Write the slogan/tag line of your bank.
• How does the tagline/slogan facilitate your purpose/business?
What Is Marketing?

• Marketing is all around us (old/ traditional form: Shopping Mall,

TV, Magazines, Mail & new form: Web, Internet chat rooms, social
networks, interactive TV, Mobile) as part of life and to enrich the
experience.

• Sound marketing is critical for success (profit: Unilever, P&G,

Google, Marriott & not-for-profit: Hospitals, Museums,
Universities).
What Is Marketing?

Banking…….Exercise

• Traditional Form of Marketing

• New Form of Marketing
• How is marketing enriching our lives?
What Is Marketing?

• Old sense: telling and selling/selling and advertising

• New sense: satisfying customer needs (needs-

products-prices-distributes-promotes)

• Banking….Exercise (Employee Assessment of your

bank)
 “The aim of marketing is to make selling
unnecessary.”
Peter F. Drucker

Selling and advertising are only a part of a larger marketing

mix - a set of marketing tools that work together to satisfy
customer needs and build customer relationships.

How its work together?

Banking……..
 What Is Marketing?
• Marketing is a process (societal & managerial) by which companies
create value (through offerings i.e. products & services) for customers
and build strong customer relationships to capture value (through
pricing) from customers in return.
or
• Marketing is the set of strategies and activities by which companies
acquire and engage customers, build strong customer relationships, and
create superior customer value in order to capture value from customers
in return.

• To remain viable, institutions must sustain the process of creating and

capturing value over time.
What is the aim of Marketing? (create & capture
value)

What is the goal of Marketing? (attract, keep &

grow)

How do marketers create Customers? (Needs,

which needs, products/services)

Explain the role/significance/importance of

Marketing in business/society/economy.
 Assignment
On
Transformation of the Marketing
Philosophy of the Banking Sector
Group
Page Limit: 10-15
Submission: 24.10.2025
The Marketing Process

1. Understand the marketplace and customer needs

2. Design a customer-driven marketing strategy
3. Construct an integrated marketing program that delivers
superior value
4. Build profitable relationships and create customer delight
5. Capturing value from customers to create profits and customer
equity
1. Understanding the Marketplace and
Customer Needs
Core Concepts

1. Customer needs, wants, and demands

2. Market offerings (products, services, and experiences)
3. Customer Value and satisfaction
4. Exchanges and relationships
5. Markets
 1. Understanding the Marketplace and
Customer Needs
Customer Needs, Wants, and Demands
• States of deprivation
• Physical—food, clothing, warmth, safety
Needs-marketers do/do not • Social—belonging and affection
• Esteem-self respect, confidence, competence, achievement,
create needs freedom
• Individual—knowledge and self-expression, creativity, social service

Wants- thirstiness (BD, USA..) • Form that human needs take as they are shaped by culture and
individual personality

Demands • Human wants are backed by willingness and buying power

Market Research and Analysis of Customer Data, Observe Customers while shopping
and interact
Stay Close (all levels) and Want to Understand Buyer Choice. Ex……Kuri
 Customer Needs, Wants, and Demands

• When a customer seeks to start a business or expand

the business or wants to buy a car or a house or
something else but due to her/his financial limitations
she/he is not in a position to do it we may say that
there is a financial need (i.e. the need for a loan
product).
 Customer Needs, Wants, and Demands

• The need for a loan product can only be addressed with the
existing products that are already residing in the Bangladeshi
market. Not for a product that is supported by the other
country's principles or culture. Besides, a product has
different features and delivery mechanisms. So, the
customer wants the product which best match with the
culture and his/her personality. For example, a car loan
facilitated by apps-based banking or a housing loan delivered
by a branch/sub-branch-based operation.
Customer Needs, Wants, and Demands

• Wants are converted to demand only if customers take

action to avail of loan products otherwise not. For
example, customer may contact banks and comply with
formalities to avail desired loan product.
Demand vs Desire
• Desire is a strong feeling of wanting to have something,
experience something, or wish for something to happen.

• A need:
• A desire:
1. Understanding the Marketplace
and Customer Needs
• Market offerings are some combination of products,
services, solutions, and experiences offered to a market
to satisfy a need or want.
• Not limited to physical products.
• Services as well-banking, hotels, restaurants, etc.
• Broadly other entities are also included like events,
experiences, persons, places, properties,
organizations, information, ideas, and cause.
 1. Market Offerings
3. Events
4. Experiences
7. Properties
8. Organizations
9. Information
10. Ideas
5. Persons 11. Cause

1. Goods

2. Services 6. Places
1. Market Offerings
• Goods: AC, Car, Television sets, Watches, Cosmetics….
• Services: Beauty Saloons, Bankers, Lawyers, Doctors, Software programmers,
Consultants….
• Events: Job fare, Trade show, World Cup Cricket-Football, Concert…..
• Experiences: Amusement/theme park, Theme Restaurant…
• Persons: David Beckham, Amitabh Bacchan, …
• Places: Cox’s Bazar, Sylhet, Khagrachari, Rangamati….
• Properties: Real estate, stock, bond, share…
• Organizations: Quantum, D.U., EBL, The City Bank, BRAC…
• Information: Publishing companies, University/ school/college…
• Ideas: Freedom of speech, AIDS, Smoking causes cancer….
• Cause: ……Financial Literacy for Women in Rural Areas, Green Banking /
Environmental Sustainability
1. Understanding the Marketplace
and Customer Needs
Market Offerings
• Marketing myopia-the mistake of paying more attention to the
specific products a company offers than to the benefits and
experiences produced by the products.

Marketing myopia is focusing only on existing wants and losing sight

of underlying consumer needs. (Need better & Less expensive)
1. Understanding the Marketplace
and Customer Needs
Market Offerings
Banking
Over-focus on Branch Banking-Ignoring Youth Market,
selling fixed deposit (FD) schemes - Long-term financial security,
Convenient digital access, Safe investments with flexibility, Inflation-
protected returns.
 1. Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations (Banking…)

Customers
• Value (difference of all the benefits and cost
relative to competing products) and satisfaction
(the extent to which a product’s perceived
performance matches a buyer’s expectation.
Satisfied/Dissatisfied)

Marketers
• Set the right level of expectations
• Not too high or low
• V & S are the building blocks for CR
 Expectations
• Too high-level expectations cause disappointment and too low-level
expectations may fulfil the desire of a particular group but may not attract
sufficient customers to justify further expansion of business.

• A financial institution in Bangladesh claims that they have developed a loan

facility for govt. employees where the loan can be availed within 1 day. The
offer easily pulls demand. Many customers want to get the offer by
complying with all the formalities. However, the results show that if all the
process is fulfilled then within 1 day the customer can get a notification
regarding the eligibility of the said loan, not the disbursement. Within a
very short period, the advertisement of the product from the bank was
withdrawn
1. Understanding the Marketplace and
Customer Needs
Exchanges and Relationships

Exchange is the act of obtaining a desired object from someone

(person/org.) by offering something in return. Ex…candidate, show, social
groups

Marketing occurs when people decide to satisfy their needs and wants
through exchange relationships. In return, marketers get the opportunity
to maintain and grow that relationship.
 1. Understanding the Marketplace
and Customer Needs

Markets
Markets are the set of actual and potential buyers of a product or
service. Basically, buyers share a particular need or wants that can
be satisfied through exchange relationships. (Seller point of view)

Marketing can be carried out by buyers. That’s why marketers not

only carry customer relationship management but also deal
effectively with customer managed relationship. (Buyers point of
view)

Banking………Women Dedicated Desk/Branch, a Web-based platform

to share thoughts
The Marketing Process

• 1. Understand the marketplace and customer needs

• 2. Design a customer-driven marketing strategy
• 3. Construct an integrated marketing program that delivers superior value
• 4. Build profitable relationships and create customer delight
• 5. Capturing value from customers to create profits and customer equity
How do marketers understand the marketplace and
customers’ needs?

Distinguished between Needs, Wants and Demands

What are the building blocks for developing and

managing customer relationship?

‘Too high-level expectations cause disappointment

and too low-level expectations may fulfil the desire
of a particular group but may not attract sufficient
customers’. Justify the statement in line with the
banking business.
2. Designing a Customer-Driven
Marketing Strategy

• Key elements of a customer-driven marketing

strategy

• Marketing management orientations/ philosophy/

concepts that guide marketing strategy
2. Designing a Customer-Driven
Marketing Strategy

Marketing management is the art and science of

choosing target markets and building profitable
relationships with them. Demand as well as
customer mgt. In designing winning strategy-
• What customers will we serve? (Target Market)
• How can we best serve these customers? (Value
Proposition)
2. Designing a Customer-Driven
Marketing Strategy
a. Selecting Customers to Serve

Market segmentation refers to dividing the markets into

segments of customers

Target marketing refers to which segments to go after

Finding as many customers as possible and increasing the

demand. But not all the customers can be served
well….profitable
Banking….and……
2. a Customer-Driven Marketing
Strategy
b. Choosing a Value Proposition

• After selecting the segments to target, marketers need to

differentiate and position.

• The value proposition is the set of benefits or values a company

promises to deliver to customers to satisfy their needs. It must be
different from another brand for a distinctive advantage.

• Ex. Facebook-connecting and sharing, Google-Information

desired, BMW-the ultimate driving machine, BRAC- , Mastercard-
For everything else, there’s Mastercard
2. Designing a Customer-Driven
Marketing Strategy
c. Marketing Management Orientations

Philosophy and Weight

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept
Production Concept

Production concept is the idea that consumers will favor products

that are available or highly affordable.

Oldest concept.

Focus is on improving production and distribution efficiency (Mass

production and mass distribution). Ex. Lenovo, Haier in the
Chinese market. Banking…..
Production Concept

 Developing countries
 Expanding the market
 Product Concept
Stressing efficiency in producing quality products, with the attitude that “a good
product will sell itself”

Product concept is the idea that consumers will favor products that offer the most
quality, performance, and features. Organizations should therefore devote its
energy to making continuous product improvements.
Banking…..
 Product Concept

• The product concept can lead to what Theodore Levitt called

“marketing myopia”. A new or improved product will not necessarily
be successful unless the product is priced, distributed, advertised,
and sold properly.

• Miserable product failures despite major innovations-80%

 Selling Concept

Selling concept is the idea that consumers will not buy enough of the firm’s
products unless it undertakes a large scale selling and promotion effort.
Typically practiced with unsought goods.

• Their aim is to sell what….rather than make…..

• However, marketing based on selling is highly risky.
• Banking……
 Marketing Concept

Marketing concept is the idea that achieving organizational goals

depends on knowing the needs and wants of the target markets
and delivering the desired satisfactions better than competitors
do.
 Marketing Concept
 So, the job is not to find the right customers for your products, but the right
products for your customers.

 Therefore, marketers shift from make and sell philosophy to sense and respond
philosophy.
 Banking……

 The companies that practice the marketing concept they achieve superior
performance.
 Reactive market orientation
 Proactive market orientation
 Total market orientation - strong market orientation
Contrast between the sales concept
& marketing concept

Starting point Focus Means Ends

Existing Selling & Profits through

Factory
Products Promoting Sales Volume

Figure: The Selling Concept (Inside-out)

Target Customer Integrated Profits through

Market Needs Marketing Customer
Satisfaction
Figure: The Marketing Concept (Outside-in)
Societal Marketing Concept

Societal marketing concept is the idea that a

company should make good marketing decisions
by considering consumers’ wants, the company’s
requirements, consumers’ long-term interests, and
society’s long-run interests.
Societal Marketing Concept

• Therefore, the organizations task is to determine the

needs, wants, & interests of target markets & to
deliver the desired satisfactions more efficiently &
effectively than the competitors in a way that
maintains or enhances the consumers & society’s
well-being.
Societal Marketing Concept
• It calls for sustainable marketing-socially and environmentally
responsible marketing by meeting consumers present needs where
ability to enhance future generations needs.
• Figure-Consumers-Company-Society
The Marketing Process

• 1. Understand the marketplace and customer needs

• 2. Design a customer-driven marketing strategy
• 3. Construct an integrated marketing program that delivers
superior value
• 4. Build profitable relationships and create customer
delight
• 5. Capturing value from customers to create profits and
customer equity
What are the key elements of a customer-driven
marketing strategy?

How do financial institutions select their customers?

What orientation or philosophy should guide the

financial institutions?

Describe marketing management philosophies for

the business operations and strategy formulation.

Distinguish between the sales concept and the

marketing concept.

‘The job is not to find the right customers for your

products, but the right products for your customers’
• Mktg Strategy (Which customers to serve, how to create value,
philosophy behind the operations).

• Now we will look at how to transform marketing strategy into action.

3. Preparing an Integrated
Marketing Plan and Program

• The marketing mix is the set of tools (four Ps) the firm uses to implement its
marketing strategy. It includes product, price, promotion, and place.
• Product-deposit/loan, features, variations, quality
• Price-rate of interest, credit terms, other charges, etc.
• Promotion-ad, personal selling, sponsorship, event mktg., billboard, web posting,
media stories, Facebook, twitter, YouTube, etc.
• Place-ADCS
• Integrated marketing program is a comprehensive plan that communicates
and delivers the intended value to chosen customers.
The Marketing Process

• 1. Understand the marketplace and customer needs

• 2. Design a customer-driven marketing strategy
• 3. Construct an integrated marketing program that delivers
superior value
• 4. Build profitable relationships and create customer
delight
• 5. Capturing value from customers to create profits and
customer equity
 4. Engaging Customers and Managing Customer relationships

A. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

• Data mgt. Managing detailed info about individual customers and carefully
managing their touch points to maximize customer value.
• Touch points: existing customer loyalty

• The overall process of building and maintaining profitable customer relationships

by delivering superior customer value and satisfaction..
• CRM deals with acquiring, keeping, and growing customers
 4. Engaging Customers and Managing Customer
relationships
1. Relationship Building Blocks: Customer Value and Satisfaction

• The key is to build long lasting customer value and satisfaction-loyal-larger share.

• Attracting and retaining customers are difficult-wide array of choices

• Customers do not frequently judge values & costs accurately or objectively rather
they act on perception.
• Ex….Branded products/services
 4. Engaging Customers and Managing Customer
relationships
1. Relationship Building Blocks: Customer Value and Satisfaction

• Customer perceived value (customers’ evaluation and difference of all the benefits
and costs of an offering relative to those of competitors). Ex. Products plus worthy
interest rate, standard products with excellent CS, dealing with knowledgeable
employees, relaxing environment, sensible products at affordable prices or paying
more to get more, etc.

• Whether a customer is satisfied or not depends on PPP relative to BE.

 4. Engaging Customers and Managing Customer relationships

1. Relationship Building Blocks: Customer Value and Satisfaction

• Customer satisfaction - the extent to which a product’s perceived performance
matches a buyer’s expectations (Dissatisfaction – Satisfaction - High satisfaction
or delightment).
• Ex. Loan product or deposit product

• Good marketers go out of their way to keep important customers satisfied. Higher
satisfaction – Repeat Purchase - greater loyalty – Brand advocates - Better
company performance .
• Delight customers by promising only what the FI can deliver and then deliver
more than the promise – ‘under promise and overdeliver’.
4. ENGAGING CUSTOMERS AND MANAGING
CUSTOMER RELATIONSHIPS
1. Relationship Building Blocks: Customer Value and Satisfaction
• FIs who are interested in delighting customers - exceptional value, and service
become part of the overall culture – don’t need to provide over-the-top service
to create customer delight (expectation).
• The customer-centric FI seeks to deliver high satisfaction than competitors but
does not attempt to maximize satisfaction rather lowers prices or increases
customer service which usually lowers profits. Why?
• The purpose of marketing is to generate customer value profitably. So, it
requires a delicate balance between customer satisfaction and long-term
profitably.
4. Engaging Customers and Managing Customer relationships

2. Customer Relationship Levels and Tools

Basic Relationships
Reactive
Accountable
Proactive
Full Partnership

Basic Relationships

Full Partnerships
 4. Engaging Customers and Managing
Customer relationships
B. Customer engagement and todays digital media

• Customer – engagement marketing: making the brand a meaningful part of

customers’ conversations and lives by fostering direct and continuous customer
involvement in shaping brand conversations, experiences, and community (not
just selling).
• Customer brand advocacy: actions by which satisfied customers initiate favorable
interactions with others about a brand.

Customer managed relationship

 4. Engaging Customers and Managing
Customer relationships
C. Customer Generated marketing

• Brand exchanges created by customers themselves, both invited and uninvited, by

which customers play a role in shaping their brand experiences and those of other
customers.
• Banking ….content, product design
 4. Engaging Customers and Managing
Customer relationships
D. Partner relationship management

• Working closely with partners in other company departments and outside the
company to jointly bring greater customer value.
• Banking……CSCM, Agent, MFis
The Marketing Process

• 1. Understand the marketplace and customer needs

• 2. Design a customer-driven marketing strategy
• 3. Construct an integrated marketing program that delivers
superior value
• 4. Build profitable relationships and create customer
delight
• 5. Capturing value from customers to create profits and
customer equity
 5. Capturing Value from Customers
A. Creating Customer Loyalty and Retention

• Good customer relationship - customer satisfaction- loyalty-positive

WOM.
• A slight dissatisfaction can create an enormous drop in loyalty,
….high expectations.
• Losing a customer means more than a single sale - entire stream of
purchases a customer makes over the lifetime (Customer lifetime
value). Ex….
5. Capturing Value from Customers
B. Growing Share of Customer

• Beyond simply make them loyal and retain CRM helps to

increase their share of customer - the portion of the
customer’s purchasing that a company gets in its product
categories. Ex…Share and Size of Wallet
5. Capturing Value from Customers
C. Building Customer Equity
1. Customer Equity
• The value comes from present and future purchases. That is
why CRM takes long-term view. The aim is to produce high
equity.

• Customer equity is the total combined customer lifetime

values of all of the company’s customers.
5. Capturing Value from Customers
C. Building Customer Equity
2. Building the Right Relationships with the
Right Customers

• Companies should manage customer equity carefully. Need to

manage and maximize customers as assets. But, not all
customers are loyal. Some loyal customers are even
unprofitable. How to manage them?
5. Capturing Value from Customers
2. Building the Right Relationships
with the Right Customers
Butterflies (Earn True friends
whatever you can) (Continuous
Potential profitability

Investment)
High

Strangers (Don’t Invest) Barnacles (Problematic-

Fire)
Low

Short-term Long-term
Projected loyalty
5. Capturing Value from Customers

2. Building the Right Relationships

with the Right Customers
• Strangers: Little fit between offerings and needs. Don’t invest. Try to make money on every
transaction.
• Butterflies: good fit between offerings and needs. Earn whatever you can. Enjoy for the
moment. Stock market.
• True friends: strong fit between offerings and needs. Continuous investment to delight.
Turn true friends to true believers-regularly-share good experiences to others.
• Barnacles: limited fit between offerings and needs. Problematic customers. Bank regularly
but do not generate enough returns to cover the costs.
Quiz-1
Time-20 minutes (Marks-10)

• Why does the financial community need to know about the needs,
wants, demands, and desires of a customer?

• How do marketers create customers? Explain with examples.