Review of literature

reassessment of literatureREVIEW OF LITERATUREPorters (1980) surgical incisionation analysis has plenty of revalue to describe competition amongst parcelicipants. This salute establishes how and by which convey positions of dominance argon achieved. Studies based on this methodology squander been applied to curseing to assess the militant process. Finlay (2000) suggested that commercialize brainwave fits st governgically for a upstanding when current grocerys argon not saturated for the types of offer the firm is making and its present clients locoweed be induced to buy more. And typically, when a company desires to attack the trade package of the competitors, they leave undertake foodstuff penetration as a way of increasing their own sh be in the market. Similarly, Oster (1994) con run fored that the surface of the market share held by the firm as advantageously as the size of the major firms in the market are principal(prenominal) considerations. He suggests that firms with relatively small market shares abide increase their market share umteen times over with show up adversely affecting the overall market share of a large market leader.A study by Philp Robert, Haynes Paula, Helms Marilyn (1992) verbalise that growth with a market penetration strategy, r from each oneing and influencing guests already served, has proved to be a less profitable course of follow out than expected. This strategy failed to achieve the projected growth not because of the basic externalize itself, but rather due to its improper implementation. Financial servicing providers concur typically viewed their chief(a) customer base as males between 30 and 50 geezerhood old (Bartos, 1982). These men are seen as the primary wage earners and decision makers for financial planning in their households. Hence, this segment has been considered well-situated geese of the financial market. While more or less growth was achieved through the introduction of innova tive financial products and go, the financial function needs of women and of consumers over 50 years of age were blurred for the financial service providers (Javalgi et al., 1990). (Schiele, 1974) suggested that a Net approach should be utilise to catch the youth market as they assert downstream from adolescence to adulthood. The seek findings indicated that this is a simplification of reality and that a physique of interrelated streams exist before young people reach the puddle of adulthood, at which they are belike to be locked into a financial service organisation.Hence, in the highly warring retail financial marketplace, it is more exact than ever to narrowly define the markets financial service provider move serve. Differentiation through claims of excellent customer service fails to provide competitive distinctiveness, particularly to key segments of the actual customer base. Many banks, over the years, put one across relied on intermediaries like DSAs, DSTs to re ach out to the customers. Jensen-Macklin (1976) or Diamond (1984) in their studies have tried to justify the existence and effects of intermediaries. For them agents exist to curtail moral hazard and asymmetric in gaination.There are distinguishable means embraceed by the organizations to increase the lean of services availed by the customers. Cross-selling is the blueprint of promoting additional products and services to vivacious customers in addition to the ones a customer currently has (Butera, 2000). The interest in cross-selling is due to its advantages for firms. Specifically, the selling of additional services to existing customers could reduce the need to spend money on customer acquisition (e.g. advertising) and lead to a pricing advantage over competitors (Reichheld and Sasser, 1990). It is average to expect that customers with strong repurchase intentions will also be likely to cross-buy from the same service provider. This is consistent with the view that it is e asier to cross-sell new services to existing customers than to the new ones. Study conducted by (Day, 2000), suggested that although customers may want to engage in a relationship with a service provider, they may not want to have all their services provided by that single provider For some service categories, customers intrinsically develop a multi-brand loyalty (Jacoby and Chestnut, 1978). For example, in the banking effort most households use two or more financial providers. (Reichheld, 1996 Anderson and Mittal, 2000). Howley John, barbarian Grahame (1980) in their paper titled, shore marketing in the Personal celestial sphere discuss about Cross-selling, whereby having opened a current account, customers are sell loans, travel facilities, insurance and early(a) services for further banking penetration of each customer. At the same time, there is a word of caution as well saying that theres undoubtedly great potential here, but there are dangers of placing too much emphasis on peripheral activities to the overall corporate purpose of being a bank.Raj Arora (2008) focussed on to that extent some other substantial strategy to increase gross revenue to existing customers cost Bundling. The study points out that the intent of bundle pricing is to increase sales by offering a discount when a pre-specified bundle of items is purchased at the same time. Usually, the additional items in the bundle are those that are complementary to the main product. The assumption is that the bundle priced items offer more value and are therefore more stringive to the buyer. The seller makes the buyer aware that the buyer is keepting a bargain in the bundle because if the items are purchased separately, the totality price far exceeds the bundle price (Yadav and Monroe, 2003). While price bundle is frequently used by marketers, its effectiveness needs more research especially when used with other marketing variables.Murphy Ruth, Bruce Margaret (2003) stated that int ernet can be used to sell more existing products into existing markets. This can be achieved by exploitation internet for increasing sense of the firm. Bloch et al. (1996) proposed that e-commerce offers cost advantages to firms via less expensive product promotions. They also advocate that e-commerce can enable a company to implement customer focus strategies through better customer relationships. If the internet segment continues to grow and the branch banking segment shrinks, more customers will be using Internet banks and fewer customers using Branch banks (Heffernan 1996). But evidence also suggests that many companies have industrious in e-commerce activity, whether it is on a avocation to business or business to consumer basis (B2C), without any consideration towards a return on enthronisation (Damanpour and Madison, 2001). One of the reasons for this may be that many businesses fear that without an Internet presence, the firm will get left behind. Hence a physique of c ompanies have turned their focus towards e-commerce, often by emulating the business module of another firm, as me too entities.Stafford David, King Susan (1982) stated that market strategies which have been important to recent bank development include branch rationalisation and refurbishment, and promotional activities, especially advertising. Price competition has not yet achieved major splendor between the big four and so price structures do tend to be relatively stable and like between banks. A similar view shared by Neven (1990) and Vives (1991) is that banks, especially retail banks, do not compete in price but in service quality. look for GAPGOOD WAY TO MAKE GAPSThus, we observe a number of important gaps in the literature. get-go, our knowledge is deficient on which foreign market entry modes service firms apply, and similarly, on target market selection. Next, it is also important to investigate if there are systematic differences within service industries in foreign ma rket entry mode selection. Finally, are the internationalization theories and models developed for manufacturing industries applicable to firms in service industries? Or, is the internationalization process of services so unique that there is a need to develop separate guess to explain the internationalization of service firms?OBJECTIVES1. To measure the penetration of banking products in different demographic profiles.2. To find the neglected niches in existing markets served by the banks.3. To aim and compare the means that familiar private sector banks adopt to attract new customers in existing market.4. To study the consumer preference regarding the means that banks adopt to attract new customers in existing market.5. To investigate and compare the methods used by public private sector banks to increase number of services availed by the customers.6. To study the consumer preference regarding the methods used by banks to increase number of services availed by the customers. 7. To determine ways to increase usage rate of services consumed by the customers.RESEARCH METHODOLOGY TentativeThe study will be based on Primary as well as vicarious information both with their well known limitations. For cumulateion of data from customers, Stratified Random taste will be used. Convenience Sampling will be used for collection of data from the employees as the data will be cool as per availability and convenience. / Structured Interviews The secondary data has and will be collected from various sources such as International daybook of border Marketing, Indian Bankers Association Journal, magazines, research papers, books, internet websites etc.Scope of the study Two earthly concern sphere of influence Banks Punjab Sind Bank and State Bank of India have been selected for the study. ICICI Bank and HDFC Bank will form part of Private Sector Banks selected for study. Study will be carried out in different areas of Punjab.Universe of the study Bank employees as well as the customers visiting the bank will be the universe of the study. sample distribution Only the employees of the bank working at Manager designation and to a higher place will form the sample of the study. For purpose of collection of data from customers, all third customer walking into the bank will form part of the study.Sample size The respondent data will be collected from 200 customers out of which hundred customers will be taken from public sector banks and rest from private sector banks. Number of employees of banks to be contacted for information will be 40. Out of this, twenty employees will be from Public Sector Banks and rest twenty would be private sector bank employees. Hence, the number of employees from each bank will be ten.Collection of selective information For the purpose of collection of data, two set of questionnaires will be prepared. First questionnaire will help in knowing the strategies being adopted by the banks to increase Market Penetration and would be filled by the bankers. mho questionnaire, to be filled by the customers will be used to collect preferences of customers related to various strategies being adopted by banks to increase Market Penetration.Analysis and Interpretation The analysis will be done on the basis of review of existing literature and information collected through questionnaires filled by the employees and customers of the Public and Private sector banks. Microsoft Excel and other appropriate statistical tools will be used for Data Analysis. conditional CHAPTER SCHEMEChapter I IntroductionChapter II Review of literatureChapter tether Need, Objectives, Research MethodologyChapter IV Overview of Indian Banking System* Public Sector Banks* Private Sector BanksChapter V Growth Strategies* Market Penetration* harvest-time Development* Market Development* DiversificationChapter VI Market Penetration in Public Private Sector BanksChapter VII Data manifestation AnalysisChapter VIII Findings Conclusion RecommendationsAppendixQuestionnaireBibliographyREFERENCEShttp//www.businessdictionary.com/definition/market-penetration.html as on Jan 28, 2010.http//knowledge.wharton.upenn.edu/india/article.cfm?articleid=4145, Jan11, 2007 as on Jan 31, 2010Ansoff, I. (1965), Corporate Strategy, McGraw-Hill, New York, NY title Bank Marketing Strategies Author(s) Arthur Meidan Journal International Journal of Bank Marketing Year 1983 script 1 expiration 2 Page 3 17Banks to get sops for rural reach 3 Oct 2009, 0307 hrs IST, Anto Antony, ET Bureau http//www.business-standard.com/india/news/public-sector-banks-gain-market-share/383014/David Stafford and Susan King, Bank Competition and Advertising by David C. Stafford, The Advertising Association, 1982write references of foll. Articles in Emerald A survey of critical factors in e-BankingBank marketing StrategiesP. Robert Philp, Paula J. Haynes andMarilyn M. Helms FINANCIAL overhaul STRATEGIES NEGLECTED NICHESInternational Journal of B ank Marketing, Vol. 10 zero(prenominal) 2, 1992, pp. 25-28Title Bank Marketing in the Personal Sector Author(s) John C. Howley, Grahame P. godforsakenJournal Managerial Finance Year 1980 Volume 5 Issue 3 Page 271 276Ruth Murphy and Margaret Bruce, Strategy, accountability, e-commerce and the consumer, Managerial Auditing Journal, 18/3 (2003) pg 193-201 www.emeraldinsight.com/1061-0421.htmPrice bundling and framing strategies for complementary productsRaj Arora University of Missouri Kansas City, Kansas City, Kansas, USAJournal of Product Brand Management 17/7 (2008) 475484Yadav, M.S. and Monroe, K.B. (2003), How buyers perceive savings in a bundle price an examination of a bundles exercise value, Journal of Marketing Research, Vol. 30 No. 3, pp. 350-8Butera, A. (2000), Cross-selling capitalizing on the opportunities, Hoosier Bank, Vol. 87 No. 7, pp. 14-16.Reichheld, F.F. (1996), The Loyalty Effect The Hidden Force behind Growth, remuneration and Lasting Value, Harvard occupa tion School Press, Boston, MA.Reichheld, F.F. and Sasser, W.E. (1990), Zero defections quality comes to services, Harvard Business Review, Vol. 68 No. 5, pp. 105-11.Anderson, E.W. and Mittal, V. (2000), Strengthening the satisfaction-profit chain, Journal of Service Research, Vol. 3 No. 2, pp. 107-20.Day, G.S. (2000), Managing market relationships, Journal of Academy of Marketing Science, Vol. 28 No. 1, pp. 24-30.Jacoby, J. and Chestnut, R.W. (1978), Brand Loyalty, John Wiley Sons, New York, NY.Schiele, G.W. (1974), How to Reach the Young Customer, Harvard Business Review, Vol. 52, March-April, pp. 77-86. http//www.answers.com/ idea/market-penetration-2 as on Feb 28, 2010