Internship Report on Marketing Strategy of Exim Bank Ltd

Introduction:

Exim bank ltd Bank is very old institution that is contributing toward the development of any economy and is treated as an important service industry in modern world. Now a days the function of bank is not limited to with in the same geographical

limit of any country. Due to globalization and free market economy, this industry is facing severe competition in any

country and implementation of WTO will further increase competition. The overall performance of Bank does not only

depend upon the banking industry itself but also on the Performance of economy where it is operating.

The Banking sector is one of the major service sectors in Bangladesh economy. There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits.

Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. Commercial banks are the primary contributor to the economy of a country. So we can say commercial banks are a profit making institution that holds the deposit of the individuals & business in checking & savings account and than uses these funds to make loans. Banks collect deposit at the lowest possible cost and provide loans and advances at higher cost because they are profit earning industries.

It has become essential for every person to have some idea on the bank and banking procedure. By an internship program in bank, students can obtain practical knowledge, which helps to know real life situations, helping them to launch a career with some practical experience.

 Origin of the study:

As a prerequisite for the Masters of Business Administration Degree of The ASA University Bangladesh, I was required to complete an internship in a suitable business organization and submit a report on my findings. I had been selected to work as an Internee in Export-Import Bank of Bangladesh Limited, Narayangonj Branch for a period of 3 moths from August 02, 2009 to October 31, 2009. ShahMd. Abdul Bari, Vice President, HR division, EXIM Bank of Bangladesh appointed me as an Internee. After discussion and getting consent, I started to work on the project titled “Marketing Strategy in Bank Service: An Empirical Study on Export Import Bank of Bangladesh Ltd.”.

Without practical exposure, theory can never be fruitful. For this MBA program has been designed in such a way that a student can get practical knowledge. A student needs to go for practical orientation in some organization where his/her duty is to bear all the some things from operations and activities of that branch.

Background of the Report:

EXIM Bank Limited is one of the leading local private commercial banks in Bangladesh. This bank has already 35 branches located in different places and also going to establish more branches. This organization has created a positive image to the customer’s mind by providing better service. This bank has introduced some modern banking scheme that has got high market demand. As it maintain the pace with competitive business world, its activities, culture, philosophy and style leads an intern student to be the best at any field of working life.

 Objectives of the Report:

The objective of the study may be viewed as:

• General Objective
• Specific Objective

General Objective:

The general objective of the study is to prepare and submit a report on the topic “Marketing Strategy in Bank Service”                                                                   

Specific Objective:  

• To know the marketing strategies of bank.
• An overview on the major marketing policies and practices of EXIM Bank.
• To suggest policy implication in marketing side of EXIM Bank.
• To identify the strategies for EXIM Bank Limited, implementing in constant prosperity of the company
• Analyzing the performance trends of the fast growing banking corporation
• To give some idea about its management and organization structure
  • To present and overview of EXIM Bank Ltd.

 Scope of the Report:

The scope of the study may be stated as under:

• The study would help top management in planning and decision making of marketing activities.
• The study would help management in identifying the key areas of weakness and strength
• The study would aware the top management to take corrective and appropriate measure timely to improve the company’s marketing and other performance
• The study would also help the shareholders as a guide to company’s present and future position (Marketing Position).

Methodology of the Report:

The report is based on secondary source and primary data collection survey. And the major source of data for preparing the report is based on secondary information like annual reports.

Primary Data:

I have collected primary data by interviewing clients of the EXIM Bank, Satmasjid Road Branch. I have also included valuable insights of the employees. These data help me to determine the business development trend of the branch. For primary data, I have conducted a survey of few respondents to collect the observations and analyze the data for evaluating the business development trend of the branch.

Secondary Data:

I have used different types of secondary data in completion of my internship report. Here important to mention that no questionnaires are used for collecting the data.

Sources of information and collection of data:

• Face to face interview with clients
• From the Bank’s Annual Report
• Information regarding new product development
• Bangladesh Bank Report
• From Daily Newspaper.

For preparing this report, I have also get information from website of the EXIM Bank Ltd. I have presented my experience and finding by using different charts and tables

Sources of Data                                                                                             

      The relevant information and data of this report have been collected from

      both the primary and secondary sources.

Processing of Data

Secondary data have been processed manually and qualitative approach has been used through the study.

Analysis and interpretation of Data

Qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base. So the report relies primarily on an analytical judgment and critical reasoning.

Scope of the Study:

The scope of the report is limited to EXIM Bank, Narayangonj Branch. The whole report covers the organizational structure. Background of the bank, objectives functions, departments, units and business performance, activities of EXIM Bank, the main part works marketing operation of EXIM Bank limited.

The scope of the study may be stated as under:

• The study would help top management in planning and decision making of marketing activities.
• The study would aware the top management to take corrective and appropriate measure timely to improve the company’s marketing and other performance.
• The study would help management in identifying the key areas of weakness and strength.
• The study would also help the shareholders as a guide to company’s present and future position (Marketing Position).

Limitations of the Study:

Though I have obtained wholehearted co-operation from employees of EXIM Bank Limited, Narayangonj Branch, they could not manage enough time to deal with me. On the way of my study, I have faced the following problems that may be termed as the limitation! Shortcomings of the study.

• Budgeted Time for the Study:

The first obstruct is time itself due to time limit, the scope and dimension of the study has been curtailed. EXIM bank Limited is a big organization. It was very tough to deal with this bank within this short time. On the other hand due to short time I was unable to interview all the customer.

• Data Insufficiency:

It was difficult to collect data from such a big organization. Because of      some divisional and confidential problem, I could not get enough      information.

• Restricted Policy:

Bank policy was not disclosing some data and information for obvious       reasons.

• Personal Limitation:

      As some assumptions were made with the help of limited information,        there may be some personal mistake in the report.

• Restricted Job:

It was very difficult to collect the information from various incumbents for the job restriction.

 Historical Background of EXIM BANK:

EXIM Bank Bangladesh Limited was established on the 3^rd August 1999, under the rules and regulations of Bangladesh Bank and the Bank Companies Act-1991 with the leadership of late Mr. Shahjan Kabir, founder chairman. He had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most Successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman.

This bank starts functioning from 3^rd August, 1999 with Mr. Alamgir Kabir FCA as the advisor and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth and excellent management.

The authorized capital of the EXIM Bank is TK. 1000 million. The paid up capital of the bank at the end of 2008 (December) stood Taka 1713.75 million compared to Taka 878.85 million in 2008.

Corporate Information’s at a Glance:

(Information as per last Annual Report 2008)

• Name of the bank                               : EXIM Bank Of Bangladesh Limited
• Status                                                  : Private Limited Company
• Date of Incorporation                         : 2^nd June, 1999.
• Inauguration of the first branch          : 3^rd August, 1999.
• Head Office                                        : Buildings (5th, 6^th & 10^th floor).
• Chairman                                             : Mr.Md. Nazrul Islam Mazumder.
• Managing  Director                             : Mr. Kazi Masihur Rahman.
• Authorized  Capital                            : TK. 3500 million.
• Paid up Capital                                   : TK. 1713.75  million.
• Directors                                             : 12
• Number of Branches                           : 35
• Total Deposits                                     : TK. 35032.02 million
• Total Investment                                 : TK. 32641.27 Million
• Return on Investment                         : TK. 6.55%
• Return on Assets (after tax)                : TK. 1.73%
• Income on Investment (S&B)             : TK. 121.46 Million.
• Number of Employees                        : 1100

The Management Process of EXIM Bank:

For any financial and non financial organization Management is the most valuable and important resources of any kind of organization. And a well-organize management provides the organization to reach its ultimate goal. Management means planning, organizing, staffing, directing and controlling of all financial and non financial resources of an organization. Different aspects of management practice in EXIM Bank are discussed below.

Planning:

EXIM Bank Ltd. has done its planning within the purview of the corporate plan. The overall planning approach in EXIM Bank is top-down. Each branch can plan according to the goal imposed by the corporate level. It doesn’t plan independently. And EXIM Bank has a planning division. This department is mainly responsible for the overall planning.

Organizing:

EXIM Bank Ltd. is organized as per the existing business locations. It has thirty three braches, each of which is a separate entity. Each unit is responsible for own performance and a Senior Vice President followed by Manager Heads each. He is directly responsible for the performance of their unit. Within each branch it is organized functionally.

  Staffing:

The recruitment in EXIM Bank is done in two ways. One as a “Probationary Officer” for the management program and it has a probation period of one year. Another one is non-management level as “Trainee Officer”. Probationary Officer is recruited in officer category and their career path is headed towards different managerial jobs.

Directing and Controlling:

The Management approach in EXIM Bank is top-down or authoritative. Information just seeks through lower management layer. Works are designed in such a way that one can not leave without clearing the tasks as he is assigned for a day. Sitting arrangement in all office is done in a way that the superior can monitor the subordinate all time. Budgeting, rewarding, punishing, etc. are also practiced as control mechanism.

 Recruitment Process:

The set-vice rule of EXIM Bank states the recruitment policy of the bank. In general the board of directors determines the recruitment policy of bank from time to time. The minimum entry level qualification for any official position other than supportive management is a Bachelors degree. However, informally the management prefers a minimum master’s degree for the appointed of probationary officers in the Executive officer position. The recruitment for entry level positions begins with a formal written test which is conducted and supervised by the Institute of Business Administration, University of Dhaka. After successful completion of the written test, a personal interview is conducted for the successful candidates by a panel of experts comprising of renowned and prominent bankers of the country.

 Human Resource Practice in EXIM Bank:

The Authority of EXIM Bank Ltd. believes their employees are the core resources of their organization. Because without them they cannot run their organization. EXIM Bank’s human resources approach is concerned with the growth and development of people toward higher level of competency, creativity and then it tries to create a climate in which they may contribute to the limits of their improved abilities.

Corporate Culture of EXIM Bank:

The EXIM bank is one of the most disciplined Banks with a distinctive corporate culture. They are lived in shared meaning, shared understanding and shared sense making. People related to the bank can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to them. The people in the bank see themselves as a tight knit team or family that believes in working together for growth. The corporate culture they belong has not been imposed; it has rather been achieved through their corporate conduct.

 Corporate Mission :

The bank chalked out of the following corporate objective in order to ensure smooth achievement of its goals

►To be most caring and customer friendly and service oriented bank. 

►To create a technology based most efficient banking environment for its customer.

►To ensure ethics and transparency in all levels.

►Above all, to add effective contribution to the national economy.

 Eventually the Bank emphasizes on

To provide high quality financial services in Export and Import trade.

To provide excellent quality customer service.

 To maintain corporate and business ethics.

  To become a trusted repository of customer’s money and their financial advisor

To make superior stock and rewarding to the customers/share holders.

 To display team spirit and professionalism.

To have a sound capital base.

 Company Vision:

Export Import Bank Ltd. as the name implies, is not anew type of bank in some countries on the global, but is the first of its kind in Bangladesh. It believes in togetherness with its customer, in its march on the road to growth and progress with services.To achieve the desired goal, it has intention to pursuit of excellence at all stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plans and business networking will strengthen its competitive edge over in rapidly changing competitive environment. Its personalized quality services to the customers with the trend of constant improvement might be cornerstone to achieve it operational success.

Principles of EXIM Bank:

1. To be one EXIM by holding and guiding the following values.
2. To have strong customer focus and build relationship based on integrity and superior service and mutual benefit.
3. To strive for private and sound growth.
4. To work as a team to serve the best interest of the organization.
5. To work for continuous business innovation and improvements.
6. To value and respect people and make decision based on merit.
7. To provide recognition and communication.

 Mode of the Bank:

The word EXIM implies the meaning of its operations. Though it is a new type of bank in Bangladesh, it is familiar with so many counties in the world such as Export Import Bank of the United States, Export Import Bank of Japan.

Though it is a local bank, it has spread of its operation in the whole world through foreign banking. Its motto is to provide quality service to the customers all over the world. Sooth mode of the bank “Local Bank Global Network” completely adjustable with its operations.

Functions of the EXIM Bank Ltd.:

• The main task of the EXIM Bank is to accept deposited from various customers through various accounts.
• Provides loans on easy terms and condition.
• It creates deposit.
• The Bank invest it fund in to profitable sector.
• It transfers money by Demand Draft (DD), Pay Order (PO), On-line and Telegraphic Transfer etc.
• The Bank is doing the transaction of bill exchange, cheque etc. on behalf of the clients.
• EXIM Bank assists in the foreign exchange by issuing letter of credit.
• It brings the increasing power of the dimension of transaction.
• Above all, EXIM Bank helps the businessmen financially by giving discount facility for bill of exchange and by providing the facility of letter of Guarantee.

 Conversion into Islamic Bank:

            After the confirmation of honorable High Court Division of Bangladesh Supreme Court, the EXIM bank had been converted into a full-fledged Islami Bank based on Shariah from traditional interest based banking and the bank started Islami Banking function from 1^st July 2008 with the approval of Bangladesh Bank. Before conversion into Islami Bank, the authority of the EXIM Bank puts option to all of bank valued customers through news media in addition to personal contract with them to accept with decision taken by authority. And great pleasure for the bank that every body gladly accepted the conversion with appreciation.

Social Commitment of EXIM Bank Ltd.:

            The purpose of EXIM Bank is, obviously is, to earn profit, but the promoters and the equity holders are aware of their commitment to the society to which they belong. A large portion of the profit is kept aside and/or spent for socio-economic development through trustee and in patronization of art, culture and sports of the country. The authority wants to make a substantive contribution to the society where they operate, to the extent of their separable resources.

 Attainment of EXIM Bank:

            It is a great pleasure for EXIM Bank that by the grace of Almighty Allah, it has migrated at a time all the branches from its conventional banking operation into Shariah based Islami banking operation without any trouble. The officers and executives of EXIM bank motivated the valued customers by counseling and persuasion in light with the spirit of Islam especially for the Non-Muslim customers. EXIM Bank’s IT division has done the excellent job of converting and fitting the conventional business processes into the processes based on Shariah. It has been made possible by following a systematic procedure of migration under the leadership of honorable Managing Director of EXIM bank.

Performance of EXIM Bank Limited:

            The year 2008 was remarkable year simultaneously for development and achievements of continuous growth rate in all the areas of banking operations. The bank has successfully been marching ahead with its prime business objective by earning profit after tax of TK 1063.29 million than that of the previous year. It has successfully mobilized TK 28319.21 million deposits from depositors and arranged disbursement of TK 26046.34 million as Investment to 10091 accounts as on 31^st December 2008 through its 30 Branches. The total Income and expenditure of the Bank of the Bank were TK. 2644.59 million and TK. 1808.78 million respectively during the period under review. The return on assets (ROA) was 3.44% well above the industry average. Achievements were possible because of he service excellence of management with the support from a very resourceful and skilled workforce who are rendering efficient and specialized services.

 Highlight on the Overall Activities:

                                                                        (As at 31 December 2008)

Authorized and paid up capital of EXIM Bank

 Resources and Capabilities:

EXIM Bank is well prepared to and capable of meeting the demand for a broad range of banking services. It has adequate resources, both human and physical, to provide the customers with the best possible services

Physical and technological Resources:                                                      

A great deal of investment for developing the physical resource base of the Bank has been made. EXIM has the presence in all the major industrial and commercial hubs of Bangladesh in order to cater to the needs of industry and trade. At present there are twenty-nine conveniently located branches throughout the Bangladesh.

Major features of these branches are:

  Fully computerized accounts maintenance.

 Well decorated and air conditioned facilities.

 A full operational computer network, which is currently being implemented. The work of Local Area Network (LAN) and wide area network (WAN) installation to facilitate fast communication between the branches and Head Office is in progress.

Many counting machine and money detecting machine for cash transactions easy and prompt.

Human Resources:                                                                                    

Quality Human resources denote an organization worthy, knowing of ones job and having interest in it, is a precondition of good functioning. EXIM has well diverse pool of human resources, which is composed of people with high academic background. Also their is a positive demographic characteristics. Most of the employees are comparatively young in age and mature in experience. As at end 2008 the total employee strength is about 1020.

As on 31-12-2008 the total manpower of the Bank in different grades as under:

                             (Source: Annual Report 2008)

Monetary/ Financial Resources:

Like any other financial intermediaries, EXIM is no exception in performing its core functions viz. Mobilization of fund and utilizing such mobilized for profitable purpose.

a. Deposits:

            Deposit is one of the principal sources of fund for investment of commercial banks and investment of deposit is the main stream of revenue in banking business. The total deposit of the bank stood at TK 35032.02 million as on December 2008 against TK28319.21 million of the previous year which is an increase of 23.70%.This growth rate may be termed as a remarkable achievement for the bank.

b. Capital and Reserve Fund:

            The authorized capital of the EXIM Bank is TK. 3500 million. The paid up capital of the bank at the end of 2008 stood Taka 1713.75 million compared to Taka 627.75 million in 2008.The capital reserve of the bank as on 31^st December 2008 stood at Tk3111.68 million including paid up capital of Tk1713.75 million.

Utilization of fund:

            EXIM utilizes its funds in accordance with its organizational goal and corporate strategy. Main uses for lending to industrial and trade sector. Maintenance of cash and statutory liquidity reserve with the Bangladesh Bank covers 20 percent of demand and time liabilities. Placement of fund in NOSTRO Accounts to handle foreign trade and investment in money market is also done as usual.

Ÿ                  Investments:

            In and effort to secure more stable and predictable earning from its investment, the bank focused its attention on investment in Govt. securities, shares and call money market. The total investment of the bank stood at Taka 35032.02 million as on June 2008 as against taka 26046.34 million in the previous year showing an increase of 25.64%.

 (Amount in million)

                    (Source: Annual Report 2008)

Ÿ                  Loans and Advances:

EXIM lends support towards development of trade business and other commercial activities in the country. The bank provides cash credit for local trade, export cash credit, packing credit, and local bills purchased and foreign bills purchased facilities. As 31-12-2008, total amount outstanding in respect of those facilities stood at Taka 7954.56 million including compared to Taka 5131.95 million of 2008 representing a growth of 55%

                                                                                            (Amount in million)

    (Source: Annual Report 2008)

Ÿ                 Foreign Trade:

The Bank handle foreign trade in which it has comparatively large share despite its small size. EXIM provides various facilities  related to L/C and post import finance like loan against imported merchandise (LIM), Loan against trust receipt (LTR), back to back L/C and pre shipment finance facilities like export credit and packing credit to exporters. So far the bank has established correspondence relationship with as many as foreign banks in order to facilities foreign trade. The bank handled total export business of Taka 46234.59 million. And import business of Taka 49596.73 million in 2008. The import business is increased by 19.71 percent and export business is increase by 47.78 percent. Major items of exports garment send jute products. Items of import included mainly industrial raw materials, garment accessories and capital machinery.

Other activities:

The bank provides services for remittance, underwriting, guarantee, public offering of shares etc. The bank also provides funds to investment and leasing companies.

Capital and Reserve Fund:

            ­The bank started its voyage with an authorized capital of Tk1000 million while its initial paid up capital was Tk225.00 million subscribed by sponsors in the year  1999.The capital and reserve of the bank as on 31^st December 2008 stood at Tk3111.68 million including  paid up capital  of Tk1713.75 million In the year 2008  the bank  has issued rights share  to strengthen its  capital base .In this course the bank has gather an amount  of 571.25 million .The bank also  made provision on unclassified investments which is amounted  to Tk351.47 million.

Deposits:

            The deposit is the lifeblood for the commercial banks. The core business of commercial banks is accepting deposits and investing fund and it’s the main stream of revenue of commercial banking.08 as against Tk28319.21 million of the previous year which is an increase of 19.16%. The growth rate may be termed as a remarkable achievement for the bank. The present strategy is to increase the deposit base through maintaining competitive rates of Profit and having low cost of funds

Investments:

            Total amount of investment of the bank stood at Tk.32641.27 million as on December 31, 2008 as against Tk.26046.34 million as on December 31,2008 showing an increase of Tk.6594.93 million with growth rate of 25.32%.

            Investments are the core asset of a bank. The bank gives emphasis to acquire quality assets and does appropriate investment risk analysis while approving commercial and trade facilities to clients.

Import Business:

            Import business is considered as an important segment of foreign exchange business. During the year, the bank opened 25817 import letters of credits and the import volume stood at Tk. 49596.73 million with a growth of 19.71% comparison with previous year.

Export Business:

            The growth of the export business has significantly been increase by 47.78%. It stood at Tk. 46234.59 as of December 31, 2008 against Tk. 31285.37 million of the previous year.

Foreign Remittances:

            Foreign remittance of the bank stood at Tk. 343.78 million as of December 31, 2008 as against Tk. 222.97 million in 2008.

SWIFT:

            The bank is equipped with the facilities of SWIFT, Reuter and connectivity with CDBL for better service to their clients in order to provide around the clock and current information on the bank to the business community world wide

 Organizational structure of EXIM Bank:

► Organizational structure: Head office

►Organizational structure: Narayangonj Branch

Branch Network of EXIM Bank Limited:

            The number branches of EXIM Bank are as stand now 35(Thirty Five) and authority has taken steps to open few more branches at commercial important places by the year 2008/08.

 Organizing Structure of Narayangonj Branch:

Narayangonj Branch of EXIM is very recent branch opened in 31^st December 2008. It is situated at  ► Narayangonj, Sattar tower, 50, S.M. Maleh Road, Tanbazar Narayangonj. The name of the present branch Manager is-Md.Abdul Jobar Chowdhury, (Senior Assistant Vice President and Manager). Satmasjid Road Branch works as a local office.

Deposits:

            Every body knows that the deposit is the lifeblood of a bank. From the very beginning of Narayangonj Road Branch is aware about Deposit build-up. Though Narayangonj is not a deposit oriented area, the branch is trying to do better day by day. The opening deposit of the branch was around 132 crore and the deposit up to 30 Dec.2008.

Deposit under different schemes:

         Nature of deposit under different schemes

                                                                                     As on 30 December 2008

Number of Accounts:

            Number of Accounts of  Narayangonj Branch as on  30 December 2008 are as follows:

 Loans and advances:

            The official of the branch are trying their best to follow the head office instruction. But the branch believes in good investment not volume of investment. The branch continues to explore and diversify the area of financing in addition to traditional financing of domestic and international trade. It financed a numbers of industrial projects and participated in industrial loans.

 Foreign Exchange Business:

              ªImport Department:

       ª Export Department

   A) Import position (Back to Back) L/C: As on December, 2008 

  B) Export position: As on December, 2008

ªForeign Remittance: Position of Narayangonj Branch as on 30 December, 2008:

PRODUCTIVITY ANALYSIS:

Productivity:

            Productivity is the name of efficiency. It is an independent variable. It has impact on profitability, though an increase in profitability doesn’t imply that increase in productivity. Price increases or low cost has no impact on productivity.

Productivity only relates to the value of input or output.

• If input =output, there is no efficiency in productivity.
• If input > output, there is inefficiency in productivity.
• If input < output, there is efficiency in productivity.

Measurement of productivity:

         Productivity      = Total Output ÷ Total Input

Some productivity ratios are calculated a follows: (Figures in million)

1. Deposit per employee = Total Deposit ÷ No. of employees

            The ratios are shown in the following table:

       Analysis of the ratio:

            From the above ratios it is clear that, the deposit per employee is increasing steadily in all the three years. It is quite satisfactory.

2. Operating profit per employee=Total Operating profit ÷ No. of employees

The ratios are shown in the following table:

Analysis of the ratio:

            From the above ratios it is clear that, the operating profit per employee is increased in the year 2008 and then decreased in the year 2008. However it is still satisfactory.

3. Advances per Employee = Total Advance ÷ No. of employees

The ratios are shown in the following table:

 Analysis of the ratio:

            From the above ratios it is clear that, the advances per employees increasing. That means the bank is providing more and more advances to various sectors and also widening its loan business.

4. Deposit per Branch= Total Deposit ÷ No. of branches

The ratios are shown in the following table:

Analysis of the ratio:

            From the above ratios it is clear that, the deposit per branch increased very sharply in the rear 2008 and then a little bit decreased in the year 2008. But still it is quite satisfactory and a good sign of productivity, which indicates that the branches performing very well.

5.  Net Profit after Tax per Branch= Net profit after tax  ÷ No. of branches

 The ratios are shown in the following table:

Analysis of the ratio:

            From the above ratios it is clear that, the net profit after tax per branch is increased very sharply in the year 2008 and increased also in the 2008. Obviously it is satisfactory.

 Profitability Analysis:

Profitability:

            Profitability is the operating result of an organization. It is a dependent variable. It may depend on the productivity of the concern. Profitability may increase due to increase in the price, low cost or both at the same time.

Some profitability ratios are calculated as follows:

1. Return on Asset (ROA) = Net profit after tax  ÷ Total Asset

The ratios are shown in the following table:

Interpretation:

From the above ratios it is clear that, the Return on Asset is increased in the year 2008 but decreased in the year 2008 due to increase in the total assets.

2. Return on Investment = Net profit after tax ÷ Total investment

            The ratios are shown in the following table:

       Interpretation:

            From the above ratios it is clear that, the Return on Investment is increased in the year 2008 but decreased in the year 2008 due to the increase in the total investment securities.

3. Return on Fixed Assets = Net profit after tax ÷ Fixed Asset

            The ratios are shown in the following table:

Interpretations:

            From the above ratios it is clear that, the Return on Fixed Assets is steadily increased in both year 2008 & 2008.

4. Earning per Share = (Net profit after tax – Preferred Dividend) ÷ No. of branches

The ratios are shown in the following table:

Interpretation:

            From the above ratios it is clear that, earning per share is steadily increased in both the year 2008 & 2008.

 The “Why” of Bank Marketing:

       Banking circles in Bangladesh are today abuzz with the talk of marketing. Every bank, big or small, closely-held, widely-held or even government-held, is marketing its services to customers by evolving new financial instruments and adopting new strategies.

Evaluation of Bank Marketing-Facilitating Factors:

Some of the more important facilitating factors which have given an impetus to the bank marketing movement in the country are discussed below:

Financial Intermediation

The basic job of a banker is to accept deposits from investors or depositors and after earmarking funds toward statutory preemption, to extend loans to borrowers for meeting their production and consumption needs. The differential between the deposit interest rate and the loan interest rate is the banker’s “spread” (or his income or gross profit). This is the process of financial intermediation in which the banker is the center-piece.

If we look at the above process from another angle we can see that the depositor has surplus fund which he wants to invest and earn a high income. The borrower needs funds for production or consumption for which he is prepared to pay a price. Since it would ordinarily be difficult for a depositor to search for a borrower directly, the banker intervenes as an intermediary.

Rising Customer Needs and Expectations

Another facet of the growth of Bangladesh economy in recent years has been the phenomenal increase in the needs and expectations of banking customers. The reasons for this development are many. Such as:

(i)        Wide spread of television, including access to international channels

(ii)      Improvement in general standards of living

(iii)  The recent rise of the Bangladeshi middle class with considerable financial resources and what is more, a higher propensity towards consumption.

(iv)  Entry of foreign and private sector banks in Bangladesh

(v)    Governmental intervention for protecting the interest of consumers

(vi)  Rising financial clout and, hence, expectations of rural banking clientele.

All these and many other similar developments have combined to produce a typical bank customer who is no longer prepared to accept things lying down. He has started harboring higher expectations from banks to fulfill his new-found needs and has become quite articulate about it.

Bank cannot cope with this recent development by continuing to do business with a “take it or leave it” mental attitude. If they do so, they will either lose business since the customer has other options open to him now, or lose face because with legal protections available the defiant customer can make a big dent in the image of the bank. So what do the banks do? The answer lies in moving closer to the customer, getting to know his needs more thoroughly and making efforts to satisfy them. It is quite clear, therefore, that as in the case of financial disintermediation, here too bank marketing is more of a survival strategy for today’s banker than just a fashionable term.

 Government Policies

The Government undertook a major program of economic liberalization and restructuring. The objective was that the economic activity be determined increasingly by market forces of demand and supply, to integrate the Bangladeshi economy with the global economy and gradually eliminate the elaborate system of governmental control and regulation of different sectors of the economy. An offshoot of this national exercise is also the gradual withdrawal of the government’s financial support to the public sector.

The impact of these fundamental changes in rules governing economic management was bound to be profound for the highly controlled and regulated banking industry in the country. As various banking activities like branch expansion, interest rate determination, and statutory pre-emotions get increasingly deregulated, the banks will be driven by market forces of demand and supply. With phased withdrawal of government’s financial support, banks will no longer be assured of their sustenance in the event of problems. The emphasis on profitability and customer service would necessitate greater thrust towards meeting customer demands. Here again the principles and strategies of bank marketing would be the saving grace.

Competition:

An offshoot of economic liberalization is the phenomenal growth in competition in the banking industry. Till the other day, public sector banks ruled the roost. A fair number of private sector banks with considerable financial might and expertise have either already made an entry or are waiting in the wings. We already had a presence of foreign banks in the country. Now under the government policy to integrate the Bangladeshi economy with the world economy, these banks are bound to have a more effective presence in the country’s banking sector.

So for the first time, the bank customer in Bangladesh is going to have a choice. When one has a choice, one usually goes to the best. And that would be the bank which understands the customer best. Marketing makes a way to meet this.

The “What” Of Bank Marketing:

Bank marketing:

When you ask to bank managers about bank marketing they will response in many ways, such as:

 Marketing is selling of bank schemes

 Marketing is creating demand for our products

 Persuading the prospective customer to bank with us is marketing

 Marketing is finding out customer needs

 Deposit mobilization is marketing

 Talking nicely and politely to the customer is marketing

 Marketing aims at customer satisfaction

 Marketing is highlighting positive features of our products and negative

    Features of the products of our competitors

Going out of the branch to contact customers is marketing.

            “Bank marketing is the aggregate of functions, directed at providing services to satisfy customers’ financial (and other related) needs and wants, more effectively and efficiently than the competitors keeping in view the organizational objectives of the bank”

This definition highlights the following points:

 Banks provide service-with all the characteristics discussed earlier, being associated with them.

 Aim is to satisfy customer’s needs and wants.

 The needs and wants of the customer are by far financial in nature, and some may be even incidental to or related to the main function.

The competitive element, efficiency and effectiveness are major factors in the process.

 Organizational objectives are still the driving force.

Bank marketing deals with providing services to satisfy customer’s financial needs and wants. Banks have to discover/ascertain/anticipate the financial needs of the customers and offer the services which can satisfy those needs. Banks may be required to satisfy the customers’ other related needs and wants. The individuals and corporate bodies have certain financial needs in relation to money commodity. To satisfy these financial needs customers want specific services. Different banks offer different benefits by offering various schemes, which can take care of the wants of the customers.

But the basic question still needs to be addressed-what is bank marketing? Let us attempt to answer with some concept.

a. Marketing Concept:

The basic components of the marketing concept-

(i)                 Identifying customer needs,

(ii)               Managing delivery to customer, and

(iii)             Achieving customer satisfaction.

These can be represented as figure.

The marketing concept points to the following essentials, which contribute towards a bank’s success.

• The bank cannot exist without the customers.
• The purpose of the bank is to create, win and keep a customer. The customer is and should be the central focus of everything the bank does.
• It is also a way of organizing the bank. The starting point for organizational design should be the customer and the bank should ensure that the services are performed and delivered in the most effective way. Service facilities also should be designed for customers’ convenience.
  • The ultimate aim of a ban is to deliver total satisfaction to the customer.
• Customer satisfaction is affected by the performance of all the personnel of the bank.

b. Selling Concept:

One of the definitions of marketing given by operating bankers is that marketing is the selling of bank products. Therefore, it appears that marketing and selling are interchangeable terms.undamental in nature. In the development banking period perhaps the selling concept was more relevant.

c. Marketing Orientation:

Another basic concept in bank marketing is marketing orientation. Marketing orientation is basically an attitudinal disposition of a banker which enables him to anticipate customer need(s) and also inspires him to satisfy that need. Two main ingredients of Marketing Orientation, which stand out, are:

(a)    An ability to anticipate customer needs, and

(b)   A willingness to satisfy them.

Pre-requisites for Practicing Marketing: 

Internal Marketing:

The strong presence of the human element in bank marketing is a reality which no marketer can ignore. Specifically, the inseparability principle of bank marketing is a crucial factor which differentiates it from product marketing. This principle states that banking products cannot be separated from the personality of the person who markets them. The product and the seller together constitute what we call a “banking product”. In designing these products, therefore the same degree of care and attention needs to be paid to both, the product and the seller. The product is an inanimate entity which can be designed, amended, improved and then redesigned to suit customer needs. Bank marketers can be reasonably sure abut the stability of product features once they have been evolved and built into it.

It is the “seller” who needs much greater attention than anybody else. Internal Marketing focuses on this crucial aspect.

There is a need to market banking products to our own grass-root level people, before we expect them to market these products effectively to customers. This is the central idea of Internal Marketing.

Marketing Research In Banking :

Marketing research is a holistic and on-going process which permeates all the organizational activities, directly or indirectly. The very concept of a business organization, what lie of activity it will enter into, which markets it will exploit and with what products-all these decisions are based on Marketing Research data.

Marketing Research data and inferences act as policy inputs for the decisions maker in banks. On the basis of these data and corporate objectives, the decision maker designs marketing strategy.

♦ Scope of Market Research in Banking

Some specific areas for Marketing Research intervention in banks could be as follows:

• Bank Selection Criteria: In a scenario where a large number of players operate in the banking field, what attracts the customer to a particular bank could be a critical input in decision making. Marketing Research could provide useful clues here for incorporation in the marketing strategy of a bank.

• Market Segmentation: What are the major market segments in the operational area of a branch or a region, what are the distinctive needs and expectations of customers in each of these segments- these and allied issues can be scientifically addressed with the help of Marketing Research.

• Image Study: How a bank or branch is perceived by a customer, which areas does it excel in and in which can be examined in an Image Study using Marketing Research techniques.
• Other Areas: These are other important areas for Marketing Research in banks like product-specific studies, customer service surveys, product development, forecasting demand and competitor profile.  

♦ Developing a Research Culture

• Research Infrastructure

Research infrastructure is the first issue of developing research culture which is mainly involved in collecting of primary data. Here the existing complement of bank’s branch staff is counter clerks. In course of their routine work, these frontline bankers interact with a large number of customers. Since most of the banking Marketing Research projects would be conducted through structured questionnaire, counter clerks could be a useful media for collecting market data.

• Proactive Approach

A characteristic feature of bank operations, perhaps operations anywhere, is that immediate needs override long-term objectives. This entails chasing of targets and a penchant for quick-fix solutions to meet operational deadlines. Marketing Research may not be equal to such demands raised on it at short notice, which gives bad name to the very relevance of Marketing Research in banks. Perhaps Marketing Research needs to gear itself up for anticipating operational needs and initiating suitable research projects well in time, to be ready with its recommendations when they are urgently demanded.

• Research Methodology

Banks have a fair number of professionally qualified persons who could form the nucleus of Marketing Research experts after undergoing specific training. Besides this, a large number of comprehensive textbooks are available on Marketing Research which can be a good guide to anybody interested in a full understanding of the methodology.

♦ Using Internally Available Data

Another useful strategy for developing research culture could be systematic scanning and analysis of internally available marketing data gathered everyday in branch.

Dormant and Inoperative accounts ledgers: These ledgers are maintained in most of the branches either, separately or at times as a part of active ledgers. Usually their main use is in the periodic balancing of relative customer accounts. Why a particular customer account became dormant and inoperative could be an interesting issue to investigate from the marketing standpoint.

Closed/New accounts register: Likewise a periodic scrutiny of these two registers can yield meaningful marketing data. Interviews of the concerned customers may reveal the factors weighing in the customer’s mind while making his banking-related decisions. Such interview may help to make a checklist of critical factors which influence a customer’s bank selection decision. All the crucial findings must be documented appropriately to be useful in marketing efforts.

Draft issued and paid: Drafts are purchased by regular and casual customers. Similarly, drafts paid by a branch may favor either customers or others. High value drafts become a particularly useful source of marketing data. They would indicate broad business trends in the area of branch operation, potential customers for fee-based products, important bank customers not dealing with the branch at present, etc. Several marketing opportunities may be opened up by a meaningful scrutiny of drafts books and documentation of important findings.

Clearing house instruments: Cheques, drafts, etc. presented to the branch through the Clearing House constitute another vital source of marketing information. Since these instruments are presented for payment through the clearing house by other banks operating in the same area, a careful scrutiny of large transactions over a period of time can help the branch to evolve a competitors’ profile, type of clientele banking with them, their strengths etc.

Bills register: Similarly, scrutiny of bill register can also help the branch operators in scanning major commodities and services transacted in their area and finding out the names and business dealings of important potential customers.

Fixed deposit registers: Usually customers placing fixed deposits with a branch are its important customers. The fixed deposit registers contain information about them which can be used for giving special care and service to these customers. Moreover, movements in fixed deposit transactions if analyzed in a systematic manner can help operators assess the level of customer service at the branch as also the impact of disintermediation on it.

Pension payment register: Pensioners have become an extremely important customer-segment for banks. Special care in handling them may yield rich dividends to the branch, not only in shape of more business from them directly, but also substantial indirect business by utilizing their good offices as opinion leaders in the local community. A systematic analysis of all important pension accounts be useful.

Credit Card: With the credit card culture fast catching up in Bangladesh, lots and lots of people are going in for these cards. A systematic analysis of the usage of credit cards by customers can be rewarding. It will reveal a lot about the personality profile, lifestyle and spending behavior of credit card owners. The banker would come to have a much better understanding of his own card holders.

Framework of Bank Marketing:

Analysis of Business Environment:

Like any other operational discipline, Bank Marketing has to function within the framework of existing environmental realities. It is important for the bank marketer to be aware of the environment around him and its implications for his activities. Basically it is difficult to identify environment for a marketer. For simplifying this exercise, a bank marketer’s environment is dividend into five components.

 Global environment

 Socio-cultural environment

Economic Environment

 Technological environment

 Legal environment

♦ Global Environment

The business environment in which a banker functions in Bangladesh is essentially derived from the current global environment. More so in present times, when there is a talk of globalizing the Bangladesh economy and integrating it with the world economy. Thus an understanding of the global environment, besides being important in itself, provides a good backdrop for a proper appreciation of even our domestic business environment. The main focuses of global environment are economic takes center-stage, changing role of government, information revolution, internationalization, multiculturalism, protectionism, recession and resurgence, financial sector analysis, capital adequacy etc.

♦ Socio-cultural Environment

Emerging form certain aspects of the global environment outlined above, strong winds of change have been sweeping the socio cultural environment in Bangladesh. The major trends are given as below:

• Disintegration of Joint Family System
• Radio-TV-Computer Culture
• Emergence of Bangladeshi’s Middle Class
• Consumers’ Age

♦ Technological Environment

Technology is a critical input in the economic development of a country. Specifically of the banking industry, foreign banks operating in Bangladesh have been the pioneers in bringing state-of-art technology to banking operations. However, Bangladeshi banks have lagged behind in the deployment of technology for expanding their business. A wide network of branches as well as extensive diversification of banking functions in Bangladesh underscore the need for the use of sophisticated technology.

We may now dwell upon the current trends in some major areas of technology applications in banking.

Branch Computerization: This is one of the hotly debated areas of computerization in banking. Ideally, full computerization of all banking operations at branch level is the best deployment of technology. But for a variety of reasons very few branches of Bangladesh’s banks have been fully computerized till now. In many other branches partial computerization has been attempted earlier. Some banks have gone in for front-office computerization, while some others have given priority to back-office computerization. Front-office computerization entails maintaining customer accounts on computers and in the course of his business transactions, the customer interfaces with the computer. It improves customer service and with it customer satisfaction.  As against this, back-office operations are a branch, like the writing of day books, balancing of account books, general ledger, etc.

Inter-office Reconciliation: Reconciliation of accounting entries between branches of the same bank is an area where deployment of technology can be extremely profitable. Un-reconciled transactions between branches, representing transfer of funds among them, are funds in the pipeline which cannot be deployed profitably.

Fund Transfer: Transfer of funds between branches of the same bank, as well as amongst banks, is an area directly impinging on the quality of service and customer satisfaction.

Payment Mechanism: use of automated teller machines (ATMs) for payment is on a very marginal scale amongst Bangladesh’s banks. No doubt, bank customers in developed countries are getting disenchanted with very sophisticated and extensive use of technology for routine banking transactions. The interface of these customers is mainly with machines or long distance with bankers (tale-banking).

MIS and Database Use: This area of technology deployment is full of exciting possibilities for banking in general and bank marketing in particular. Management decision making can become so much more accurate and purposeful. Current use for technology in this area leaves tremendous scope for improvement.

♦ Legal Environment

The legal environment in the country is undergoing rapid changes in order to keep pace with the new reforms program and its liberalization theme. Company Act, Security and Exchange Commission Act and Consumer Protection Act have come in place. The basic theme of all these legislative amendments and new enactments is to provide a more liberal business environment for the growth of various economic activities in the coming times.

Understanding the Customer:

Understanding customer needs and expectations is the essence of marketing. In is the main fountainhead from which emerge all other marketing activities e.g. strategy formulation, product development, customer service etc. But understanding even one person is so difficult, because of the complexities of human behavior and its changing pattern. There are wide disparities in likes, dislikes, lifestyle and profile of the bank customers. One way to make our task less daunting and more manageable could be to divide the bank customers into groups on the basis of similarity in their banking-related behavior and expectations. This is what market segmentation is all about.

♦ The Need of Market Segmentation:

Market segmentation differentiates customers with similar banking needs from those with dissimilar needs. The greater the homogeneity in needs and behavior of a group of customers, the easier it becomes to understand them.

Besides this, logic of segmentation is that it provides a solid basis on which the marketing strategy of a bank can be designed, how to persuade a prospective customer to do business with us-these are some of the basic decisions a marketer has to take in designing his marketing strategy.

Segmenting the market also helps us evolve a distinctive marketing package for each segment based on characteristic needs of different customer segments. This in turn helps the marketer to cultivate in the customer’s mind a perception of “psychological ownership” of bank’s offerings.

• Basis of Segmentation

Marketing literature is replete with information about the different bases on which market segmentation may be attempted. Some of the popular bases of segmentation are, geographic, Demographic, Psychographic, Volume, Benefit, etc.

• Geographic Segmentation

In Geographic segmentation in the banking context, one may have variations like metropolitan-urban-rural, North-South-East-West, Large city-small city, hill area-tribal area-desert area. Etc. the assumption in all these segmentation criteria is that customers in a given geographic region would show a high degree of homogeneity in their banking needs as against those in other regions. Geographic segmentation is the easiest to attempt because geographic regions are already demarcated.

• Demographic Segmentation

Frequently, geographic segmentation could be further extended on the basis of the demographic segmentation of customers. Typically demographic parameters in use are age, sex, income, occupation, education, social class, etc.

• Psychographic Segmentation:

In times to come, banks may use relatively more sophisticated segmentation criteria like psychographic or benefit parameters. Amongst psychographic parameters one could use segmentation variables which reflect personality traits of customers, e.g. leader-follower types, extrovert-introvert types, conservative-liberal types.

• Benefit Segmentation:

Similar is the case with benefit segmentation. Here the rationale is the benefit that a customer seeks from “purchasing” a given banking product. For example, a customer going in for a Credit card of Citibank might be seeking the benefit of “statuses in his peer group. Similarly, another customer going in for a consumer loan form a Bangladeshi bank might be seeking the benefit of “economy”. Likewise, a third customer might be looking for the benefit of “convenience” and be prepared to pay the price for prompt, efficient and courteous service. Thus benefits like status, economy and convenience, could be bases for segmenting the market.

Strategy for Bank Marketing:

An Operational Strategy:

The needs and expectations of customers cover a wide field and managers cannot possibly fulfill all of them. For example, a customer may nee cash at midnight. Assuming there is no ATM in operation, he will be disappointed. This brings us to another set of needs and expectations- those of the organization.

These needs and expectations are set forth in the bank’s corporate mission, various internal instructions, policy pronouncements, etc. A typical branch manger would like to operate in an area where the customer and organizational needs are in congruence with each other.

There is a third set of needs and expectation operative in a branch situation-those of the supervisory, clerical and subordinate staff members.

 Bank Marketing Strategy- 7P’s:

In classical marketing literature, there are four components of marketing strategy-product, price, place and promotion. But when it comes to services marketing, the context is different. Due to the intangible nature of services products, tangibilising them becomes important.

Keeping all these in view bank marketing strategy has seven components- product, price, place, promotion, process, people and physical evidence. These are known as 7P’s. we take up each of these components one by one.

i. The First ‘P’ –Product:

Marketing literature is replete with concepts and strategies relating to product management. We focus on some selected ideas relating to product policy which have an immediate operational utility as well as feasibility in banks.

Core Products: Core products are essentially all those products which define what kind of business we are in. For example, for a bank some core products are, savings bank, current account, term deposit, recurring deposit, cash credit, term loan, overdraft, draft and the like.

The basic characteristics of all these products are two-fold. Firstly, they define the business of commercial banking in the sense that, whatever banking services ewe extend, one or the other of these core products are bound to figure in them.

Another characteristic of core products is that they do not necessarily have a strong marketing content.

 Augmented Products:  This is the age of value addition. Everybody is sold to the idea of value-added products and services. The augmented product is basically a formal product with some ancillary benefits attached to it. For example, when one opens a smart money account with HSBC, he gets a free Any Time Money Card. Or, when one opens a fixed deposit account, he may keep it in the bank’s safe-custody free of cost.

Implication for Operating Bankers: As far as implications for operating bankers are concerned, the matrix of Core-Formal-Augmented products can be used by branch operators in an effective manner. In fact it is being used by them, albeit unwittingly at times. The operational strategy can be to try for a transition from core to formal products and then, to augmented products.

ii. The Second ‘P’ – Price

Price as a tool in marketing strategy of banks has got very little practical utility because of the administered pricing structure- this has been the refrain of many branch mangers. Even the charges for ancillary banking services have been the same for all banks.

Implications of Pricing for Banks: Price considerations would become paramount for banks. Perhaps, the following proactive measures could be adopted immediately by banks for operating in a fully deregulated price regime.

Firstly, a database on the price sensitivity of various customer segments needs to be developed.

Secondly, there is a need to develop cost-benefit orientation among operating bankers.

Thirdly, one of the conditions for gaining a competitive advantage set out by Porter is price premium.

Fourthly, banks would also need to look into the specific pricing strategy they adopt. In a deregulated environment, the options are many, e.g.

–          “Cost-plus” approach, which would call for a detailed analysis of cost structure of various bank products and services.

–          Market-oriented approach, i.e. what the market can bear or accept.

–          Competition-related approach, i.e. what the competitor is doing.

iii. The Third ‘P’ – Place

The ‘place’ strategy in marketing essentially answers the question, “Where to market our products or services?”

Innovations in Place Strategy: The first such strategy, which has been in use for quite some time now, is the concept of extension counters, satellite offices and the like.

Secondly, the concept of special counters for certain customer segments (e.g. pensioners) is also a well-known strategy.

Thirdly, the concept of a ‘single-window’ is catching up in the sector for catering to select customer segments.

Fourthly, the idea of mobile offices is also a part of current banking practice, albeit selectively. Through these, the banker comes to the doorstep of the customer rather the other way round.

Fifthly, technology has also been deployed by banks for implementing their place strategy.

Sixthly, a relatively recent innovation is that of strategic alliance. This trend has been set in motion mainly by the newly set up private banks.

iv. The Fourth ‘P’ – Promotion

Basically, when we think about marketing promotion we first emphasize on advertising as a promotion tool. Be it radio, or television, newspapers or magazine, wall hoardings or bill boards. But there are also have other promotional tools that are used for service products.

Objectives of Marketing Promotion:

Any marketing promotion campaign has two basic objectives- to inform the prospective customer and then, to persuade him. For example, when a bank comes out with a new product, it makes its target customer segment aware of it only through marketing promotion. It could take various shapes- a

Components of Promotion:

Marketing promotion can be undertaken through various means like press advertisements, personal interaction with customer, etc. Basically there are four major components of a promotional strategy, viz.

–          Personal Selling

–          Advertising

–          Sales Promotion

–          Publicity

For tangible product advertising is the most important component. But for intangible product (e.g. bank service) personal selling is the most important component.

 Advertising and Sales Promotion: Historically, public sector banks had a small role in advertising media, though sales promotion activities like participation in trade fairs and exhibitions have been undertaken by them frequently. But in private and foreign banks advertisements has played an important role. One fundamental way in which bank advertising differs from product advertising is in the nature of their product. As an intangible products banking service may emerge on personal selling but advertising and sales promotion also play a big role for the product.

 Publicity: Publicity is a double-edged weapon. It cuts both ways. Particularly so on a service organization likes a bank. This is so because of the inseparability principle. No doubt, publicity could be gained through other means by the banker himself also- through word-of-mouth, by distribution or mailing publicity literature, etc.

Personal Selling: Personal selling is a better weapon in the armory of a bank marketer. Personal selling appears quite simple. It is essentially a face-to-face interaction between the banker and the customer, with the former intending to strike a deal with the latter. Now, questions arise why personal selling is a powerful promotional tool in bank marketing? Because-

Firstly, personal selling derives its critical importance for the bank marketer form the intangibility principle. In this sense, the analogy is of publicity which derives its power from the ‘inseparability’ principle. Both these promotional tools are almost tailor-made for bank marketing. They have soaked in the fundamentals of bank marketing and thus, are specially suited to the bank marketer.

Secondly, the bank marketer gets the best opportunity to tangibilise his intangible products in a personal selling situation. No, other marketing promotion instrument takes up this challenge as directly and as effectively as does the instrument of personal selling. After all, in a personal selling situation, the bank marketer is face-to-face with the customer.

Thirdly, in personal selling the bank marketer can control the proceedings, assess its impact and evaluate the effectiveness of promotional effort, all by him and immediately at that.

Fourthly, personal selling is far more cost-effective than advertising. Personal selling situations frequently don not even have to be created by the bank marketer as they keep arising every single day in bank branches.

If personal selling is so crucial to bank marketing promotion, perhaps we need to examine what goes into making a success of it. Before actual interaction with a customer, some homework must be done by the marketer. In personal selling situation, the most important thing for a marketer to remember is ‘to listen’. Careful, attentive listening is a very powerful communication media which may establish instant rapport even with the most annoyed and angry customer.

The Fifth ‘P’ – Process:

The importance of process in bank marketing strategy is based on the “Value Chain” concept propounded by Michael Porter. In banking context, a typical value chain would encompass all activities right form the product conception stage to product designing and development, down to its marketing at the branch level, accounting procedure for putting through the transaction- all these ultimately leading to the customer’s satisfaction with the product he has purchased.

The Sixth ‘P’ – People:

People are a crucial component of bank marketing strategy, which the human factor is very critical in services marketing. Internal marketing policies and strategies relating to the human resources are very necessary for bank marketer.

 The Seventh ‘P’ – Physical Evidence:

Physical evidence as a strategy tool for the bank marketer derives its sustenance form the intangibility principle. Banking products are intangible. And tangibilising this intangible commodity is a major challenge to the bank marketer. The instrument of physical evidence focuses a banker’s attention on this crucial aspect.

 Profitability and Marketing:

Interplay of profitability and Marketing:

The bank marketing has brought about a realization that marketing is important even for earning profits. Marketing and profits are not only compatible, but the latter emerges form the former.

A typical branch banker today has come to appreciate the interplay of profitability and marketing. Bankers don think of both, marketing and profitability in routine operational situations. But they think of these two parameters in two separate compartments. When thinking of marketing, especially at the branch operational level, the images that it invokes are those of mobilizing deposits by going out to contact customers. At times this also covers securing a good loan account.

Similarly, while talking of profitability, the kind of ideas it invokes are those of cost control (cut down telephone bill, save stationery etc.), reorienting the deposit-mix to attract more low cost deposits, avoiding income leakage, enforcing service charges meticulously, etc. while taking all these measures at the branch level, many a time their implications for the customer get overlooked. But that is what a marketing standpoint demands.

Profit orientation at branch level:

If profit considerations usually assume priority in situations, it does not automatically mean that in the operational context branch bankers usually reflect a high degree of profit orientation. There are some parameters which reflect a high degree of profit orientation. Some of them are:

–          An acute awareness at all levels in the branch about the importance of earning profits,

–          Adoption of a cost-benefit analysis approach while evaluating business propositions (be it in the area of deposits, advances or non-funded business),

–          Periodical calculations, monitoring and control over profit generation, and

–          Evaluation of branch performance principally on the profit parameter.

Heightening profit orientation at branch level:

The most obvious response to low profit orientation at the branch level is that banks need to accord highest priority to profits in evaluating branch performance. Let the business performance of branches be evaluated on the basis of profits they earn. This is not to say that other parameters of performance are to be totally ignored.

The transition to profit-orientation has many positive implications.

Firstly, at the branch level mobilizing deposits and giving loans have become an end in themselves rather than a means for earning profits. Primacy of profits sets right this conceptual confusion.

Secondly, customers expect a lot more from banks now than merely deposit and loan products. Centrality of profits to branch operations emphasizes this.

Thirdly, profit-orientation at the branch level ensures that the macro level priorities and anxieties relating to profitability are suitably reflected in branch operations-situation of macro and micro levels working in tandem.

Principles of profit calculation system:

1. The first principle of this overhaul would be instituting profits as the main parameter for evaluating branch performance.

2. Secondly, the new system has also to take care of those areas which impinge on whole-bank profitability in a big way, but which do not find any expression in the calculation of branch profits. For example, drafts issued at par. The branch issuing these drafts actually incurs a loss. But the bank gains.

3. The third principle of the new system could be a scheme of quantitative incentives and disincentives in branch level profit calculations-incentives for promoting bank profitability and disincentives for affecting this profitability adversely.

 Branch Profit Calculation System-An Approach:

We now examine how the principles of profit calculation can actually be implemented. Some banks simply don not have any mechanism under which their branches calculate profits periodically and monitor its growth. In this scenario, perhaps a quantitative approach to our discussion does not seem feasible. We would, therefore, confine ourselves only to qualitative aspects of profit calculation.

Projected Targeted branch profit: The first point to be noted is that branches would chase a targeted amount of profit rather than targeted levels of deposits or loans. But whatever be the system the primacy of profits does not seem to be generally in vogue. The scheme for profit calculation proposed here emphasizes that each branch should budget for profits to be earned during the year. This budgeted profit for a branch can be worked out based on factors like projected profit for the whole-bank, historical share of branch in it, desired percentage growth in profits, etc.

Projected Business levels for achieving targeted profits: How to achieve this profit level is the next task for the branch and it may come up with relevant proposals based on its judgment of customer needs and market potential. The branch plan, of course, would include items like projected growth in deposits, loans, fee-based items (remittances, collections, and services), specialized functions like forex business, etc. The projected contribution of each of these items to branch profits should add up to the projected profit figure. So the entire approach, as one would observe, is almost the reverse of the current practice. Instead of starting with projected levels of business and then arriving at projected profit, one starts with projected profits and then works backwards to arrive at feasible business levels necessary to support this profit level.

 Training in Bank Marketing:

Training needs in bank marketing in today’s context are mainly in the areas of attitudinal orientation, skill development and knowledge acquisition- in that order. Essentially, training in the area of bank marketing will use an appropriate blend of all methodologies for an integrated impact.

Need and Relevance of Training :

The present banking scene offers evidences of diametrically opposite nature as to the need and relevance of training.  Special features of bank marketing provide a conceptual basis for need and relevance of training. Perishability is an example. As we saw banking products are devised and delivered at the same time, leaving no room for things like pre-delivery inspection and quality control, which are routinely undertaken in a product marketing context. Hence, the inference those, banking products are highly perishable. Though this feature of perish ability can never be eliminated, at least efforts can be made towards quality control of banking products by concentrating on the factor which makes banking products perishable- the human factor. And training is one of the major tools for concentrating on the human factor in a proper way.

 Approach to Training :

There are a variety of approaches being adopted by banks fro imparting training in bank marketing.

1. External training: There is a choice of external vis-à-vis internal training. Most banks have gone in for building up their own in-house training facility. Still deputation of bankers to external training program is also in practice, albeit in a selective manner. The main advantages that external training offers to bankers are by way of interaction with a cross-selection of professionals and by way of perspective building.
2. Institutional Training: The most popular form of in-house training is institutional training. Typically, the participants of a training program are assembled in a training establishment of the bank and administered the training inputs.

3. On-site Training: It is an alternative training approach that set to gain increasing popularity in banks. The philosophy underlying this approach is that instead of the trainee coming to the workplace of the trainer, it is the trainer who goes to the workplace of the trainee.

4. Tele-training: The new concept of training is tele-training. The most outstanding aspect of this training approach is its phenomenal reach.

1. e.      On-the-Job Training: Self-training is by far the most effective and enduring training approach. It is way of saying that if the individual is suitably persuaded and motivated to learn, whatever he learns on his won is the only lasting learning. If this objective is kept in mind by the trainer all the time perhaps training will achieve its ultimate objectives.

Channels of Distribution of Banks:

            The channels of distribution in financial services perform a number of key functions, as follows:

• Sale and offer of services and products, as well as advising customers.
• Contract and liaison with advertising and public relations agencies to assist in designing more effective advertising/promotional campaigns.
• Gathering of information necessary for planning marketing activities, strategy decisions and product development.

a. Electronic Methods of Distributing Financial Services:

            The need to make branches and distribution more efficient has led to the introduction of electronic methods in financial services. The first ATMs (automated teller machines) were introduced in the UK in the form of cash dispensers by Barclays Bank in 1968. The main objectives of this distribution facility were to save costs and staff time, and to provide greater customer convenience (that is, service outside normal banking hours).

b. Telemarketing:

            Consider the case of the largest ‘branch’ of the manufacturers Bank in the USA. No customer visits it. Its customers reside throughout the USA and their business is solicited by long-distance telemarketing or direct mail. There has been substantial growth in both loans and deposits via telemarketing and direct response to newspaper advertising. These systems can be much cheaper than full branch operations and are especially useful to institutions that do not have a large network of bricks-and-mortar outlets.

c. ATMs:

            Many banks now have ATMs outside their branches. Those outside offer 24-hours banking to customer. Some banks also have an ATM in the lobby and customers use their security card to enter the lobby and then use the machine in the normal way. These machines can be used to withdraw cash, pay money and cheques into an account or to order statements, balances or information packs. ATMs are also now located at many of the larger retail stores and at factories. The machines are maintained by the local branch.

            The development of the ATM network may mean that at some point of time in the future, cashiers will be replaced by the ATM machines.

d. Eftpos:

            Eftpos offers a cashless method of payment to the customer at the point of sale and is important in all areas of retail transactions. In many countries, the eftpos schemes proposed by banks have run into difficulty as the banks have endeavored to charge more than retailers have been prepared to pay. While trends show that Eftpos will become an important payment mechanism, it is not expected wholly to replace cheques, although successful Eftpos systems are likely to reduce cash payments, and in particular stimulate the use of debit rather than credit card. As with ATMs, Eftpos also reduces the need for customers to visit their branches.

e. Intelligent Terminals:

            In the corporate market, developments in electronic banking have led to the introduction of intelligent terminals. With these, and backed up with their own central processing units, corporate treasurers can interact with the bank’s own mainframe computers to undertake cash management, transactions, letter of credit and the like, receiving timely transaction data and other economic and financial information services.

f. Telephone Banking:

            Some banks are now offering home or telephone banking. This may reduce the need for branches in the future. An example of this is Midland’s First Direct Service, which is new concept in banking. It does not operate through a branch network but entirely by the use of the telephone and the postal system. It also provides all the usual banking services-current accounts,

            Loans, ATM facilities, Customers can contact First Direct hours a day. Midland has spent a lot of money advertising this new venture. The market they have tried to attract is the younger market, particularly the age group -, who are more financially aware and are used to dealing with matters through the phone.

g. Home Banking or In-Touch Financial Services:

            Another innovative means of distributing bank services has been pioneered in the USA through the application of computers. Computerized facilities have been used in supermarkets to record each transaction with the respective customer’s account with the bank. The Seattle-First National Bank has promoted an in-touch home service that provides customers with access to a talking computer from touch-tone phones at home. By calling up bank computer, the customer can instruct it to perform financial services such as:

• Paying bills transferring funds from his or her bank account to that of a creditor;
• Aiding family book keeping by reporting expenses, with a bi-weekly budget analysis broken down into several categories (food, housing, clothing, and so on);
• Computing income tax data;
• Storing household records such as insurance policies, credit card numbers, driving license numbers and vehicle registration numbers.

            Normally home baking is likely to be just one of a range of services provided as part of a home information system which also offers shopping, news, entertainment and information data. The home banking service itself will usually permit account interrogation; inter account transactions, bill payments, loan generation and electronic mail. In addition some systems are adding brokerage, insurance and mortgage banking facilities. Home banking is expected to become a significant alternative delivery system to conventional branch systems in due course.

h. Internet Banking:

            Security First Network Bank, at Atlanta (US) based saving bank, is one of the first international banks to go operational on the internet. Within months of its launch in October 1995, it garnered 5550 accounts and US $ 15 million deposits across the world. The services being envisaged by Indian Banks include:

Customer with PC and net connectivity can:

View transaction in their accounts, exchange messages with the officers concerned in the bank through a mailbox, request cheque book and get printed account statements, structure loans by asking a series of ‘what it’ questions and getting answers.

 Request for funds transfer between accounts, issue stop payment request putting forth standing instructions and carrying out deposit modeling.

Have on-line connectivity providing the customers with the ability to directly debit and credit the account without the bank’s intervention, etc.

Marketing policies is a series of activities leading to the setting of strategic planning objectives for an enterprise, and the formulation of strategic policies for achieving them. In essence it is a process for determining what a business should become and how it can optimally achieve that goal.

Marketing policy include four major strategy. These are-

• Product Strategy
• Pricing Strategy
• Communications Strategy (Promotion)
• Place Strategy

Product Strategy:

            The service is an integral part of product in banking and is at times an indivisible part of any banking product. Similarly whether we talk of brand or selling a product the institution (bank) is always the deciding factor in pro0duct design an delivery as the customers do not look at any product in isolation but look at it as the particular bank’s product.

Nature of Product:

            Any product or service when it is marketed, the following two aspects are very significant.

1. Offer-what is offered say a product at a price; and
2.  Manner of offering- how it is offered, i.e. the manner of product delivery.

            The product includes quality, features, accessories, packaging, brand, warrant etc. As the services are marketed like the products, products also include services. An organization may offer different product lines, each product line comprising of different product varieties-all of which collectively represent a product mix.

This product planning process consists of:

1. Product line
2. Product mix.
3. Branding
4. Packaging
5. New product development

Product Analysis:

            Product mix being an important concept in bank marketing, product mix analysis is imperative to decide on continuance of existing products or adding new products. This decision will be, of course, based on market research.

New Product Development:

            The new product can be developed in new market or existing market. New product can also be launched in improved market or in the new market. Innovation a product essentially means developing a product resulting in an increase in the product line. These enable diversifying business risks, continuing life cycle of a product and also ensures profits.

 Normally such ideas for new products pass through following stages:

 Deposit Product of EXIM Bank:

1. Al-Wadeah Saving Account
2. Mudaraba Saving Account
3. Mudaraba Short Term Deposit
4. Mudaraba Term Deposit

• One Month
• Three Month
• Six Month
• One Year
• Two Year
• Three Year

1. Mudaraba Monthly Income Scheme
2. Mudaraba Monthly Savings Scheme
3. Mudaraba Super Savings Scheme
4. Mudaraba Multi plus Savings Scheme
5. Mudaraba Haji Scheme
6. Mudaraba Education Saving Scheme.

11. Mudaraba Waqf Cash Deposit

12. Mudaraba Special Savings (Pension)

13. Mudaraba Muhar Savings

♦ Investment Product of EXIM Bank

1. Izara Bill Baia (General)
2. Izara Bill Baia (HB)
3. Izara Bill Baia (Staff HB)
4. Bai-Muajjal (BAIM)
5. Izara (LF)
6. House Hold Durable Scheme (HDS)
7. Baia-Muazzal (General/FO)
8. Baia-Muazzal (WO)
9. Baia-Muazzal (Export)
10. Murabaha Import Bills (MIB)
11. Murabaha Post Import (MPI)
12. Trust Receipt (TR)
13. IBP
14. Musharaka Pre-Shipment (ECC)
15. Musharaka Pre-Shipment (PC)
16. DBP
17. LDBP

Proposed Products of EXIM Bank:

            EXIM Bank new thinking to launch new products in the market according to the considering the market demand. Some deposits product new in the Research & Development Department (R&D).

These are:

1. EXIM Diamond
2. EXIM Gold
3. EXIM Silver
4. EXIM Money Maker

            EXIM Bank will launch consumer credit scheme in the market very soon. These investment and deposit products are waiting for approval of higher authority.

Pricing Strategy:

            Price is the amount of money charged for a product or service or the value exchanged for the benefits of the product or service. The selection of a pricing strategy for the bank is a function of three key determinates.

1. Demand
2. Competitor Prices
3. Cost Structure

            Based upon these three criteria a number of pricing options are open to the bank. These alternatives include cost plus pricing, breakeven and profit impact target pricing, value in use pricing, market rate pricing, relationship pricing, penetration pricing and skimming pricing.

Different Types of Pricing Method:

♦ Cost plus Pricing:

            Cost plus pricing is a simple system of establishing price. Under this method a standard markup is added to the costs of a product or service. Although widely used in the retail trades it is not often employed in banking due to a lack of cost knowledge in many cases. However, because of the similarity with retailing banking, the expected growth of competition from retailers, especially in retail banking, cost plus pricing may become more important for individual banking services.

            As a generalization, however, a pricing method which dies not taking into account customer price sensitivity and competitive prices does not often lead to the best strategic price. Even in retailing, varied markups for different product groups within the same store have become the norm.

♦ Breakeven and Profit Impact Target Pricing:

            A second cost oriented pricing method is that of profit impact target pricing. Under this system the bank endeavors to decide in the price which will enable it to achieve a specific level of profitability for a particular service. The method makes use of breakeven analysis as illustrated in follow.

            The breakeven chart shows the total cost and total revenue expected at different levels of service transaction volume. First, for each service the level of fixed cost associated with the service is shown. Direct variable cost are added on to these to show a total cost rising with service volume. The total revenue curve, starting at zero, usually rises in a linear form with increasing volume. Where the two curves meet is the breakeven volume position V1, while to meet the desired profit impact target a higher level of volume V2 is required. In treated as variable, and historically these have both tended to be fixed.

♦ Value in Use Pricing:

            A number of banks and financial institutions are following industrial companies and basing their price not on cost but on perceived consumer value for a service. This system of pricing requires management to estimate the volume of a service it expects to sell at a specific quality and price. Compared to competitive service offerings it is necessary to assess relative service quality, reliability and the like and to estimate the value that customers would be prepared to pay for these facilities. Adding these to the average competitive base price provides an overall ‘value’ price for the service. Actual offered prices such prices are usually above the market average.

♦ Market Rate Pricing:

            With this system of pricing the bank cedes the initiative to key competitors to set price. Smaller banks ‘follow the leader’ in pricing services, and while price leaders are usually other banks, non-bank competitors are increasingly influencing service prices as these new entrants may will have operational cost advantage and use price as a conscious weapon to gain market penetration.

♦ Relationship Pricing:

            While customer are becoming increasingly sophisticated in both corporate and retail markets, leading to service unbundling, there are occasions when services may be provided at a low margin or even at a loss. When it is possible to improve the overall profit from a relationship by cross-selling high margin services, it may be worthwhile to provide relationship-building services in this manner. For example, led banks may well be prepared to provide difficult sovereign risk facilities at below local market rates to multinational customers provided the overall profitability of the account justifies the decision.

♦ Market Penetration Pricing:

            For new service when high experience effects re present and if the market is price-sensitive it is best deliberately price low in order to rapidly build market share and so gain a cost advantage over competitors. Failure to use penetration pricing may well encourage new market entries and provide a price umbrella for the higher cost competitors. Ultimately such a strategy usually leads to a shake-out when a number of competitors exit from the market as a result of a price war due to market overcapacity.

♦ Skimming Pricing:

            Skimming price strategy applies when a competitor endeavors to price a service above the normal level of such an activity. For a skimming strategy to be successful there should be a sufficiently large customer segment to justify adopting a skimming price; the costs of operating at lower volume should not be such as to cancel the revenue gain from charging a higher price; the high price should not stimulate the entry of competitors; and the concept of a higher price should add to the image of a superior product.

            Within the banking industry, long-term skimming price strategies are not common due to the difficulty of building effective competitive entry barriers. Banker estimates that in the corporate market most innovative lending products can be rapidly duplicated within a few months at most by new competitors. Further, such innovations cannot be patent protected due to their service natured and the relative ease of creating substitution services.

 Factors Modifying Price Structures:

• Bank Image
• Impact on third parties (e.g. shareholders, consumers pressure groups, government)
• Geography (in different countries, for different local money market regulations)
• Discounts (in both volume [Large-buyers] & value [early payment, use of debit cards])
• Price Discrimination

• Customer Discrimination (e.g for students only)
• Product-form Discrimination (eg Banglalink)
• Place Discrimination (e.g service at ATM or at counters)
• Time Discrimination (e.g  peak-hours/off-peak-hours)

Price Quality Strategies:

 Investment Pricing Of EXIM Bank:

Profit on various investment categories will depend on the level of risk and type of security offered. It should be kept in mind that rate of profit is the reflection of risk in the transaction. The higher is the risk, the higher is the rate of profit.

Profit may be reviewed at least once in 06 (six) months and more often when appropriate. Fixed profit should be discouraged; preferably all rates should vary with cost of funds fluctuation based on a spread of profit.

Effective yield can be enhanced to the extent borrowers are required to maintain deposit to support borrowing activities. Commitment fee and service charges should however have relevance with the market condition and be approved by the executive committee/Managing Director form time to time. 

Profit rate of different types of investment.

Deposit Pricing ofEXIM Bank:

            EXIM Bank generally follows the market rate pricing increase of deposit pricing. Now in Bangladesh seven Islami Bank are operating, Islami Bank Bangladesh Ltd. is the leader of those banks because it is old and big. EXIM Bank is now trying to make more deposit by offering attractive profit rate.

Communications Strategy:

            Communication strategy has become an important ingredient in bank marketing strategy. Since the early 1970s when banks paid little attention to communications they have been forced to spend heavily on advertising, publicity and personal selling, the relative mix is depending upon the specific market segment to which they have attempted to appeal. The four major elements in communications strategy are as follows:

♦ Advertising

            Advertising may be defined as a controlled form of non-personal presentation message about specific ideas or services from an identified sponsor via a specific communication medium designed to inform and persuade selected audiences to undertake actions desired by the sponsor. In recent years the role of advertising in the banking industry in both personal and corporate markets has expanded dramatically and the financial services industry is now one of the most important sources of advertising revenue. In developing advertising strategy the bank must first ensure that it conforms to overall marketing strategy. The process of developing advertising strategy then consists of the following steps:

• Set advertising
• Establish copy platform
• Develop the media plan
• Set the advertising expenditure level
• Measure advertising effectiveness

♦ Promotion & Public Relations

            Sales promotion and public relations have increased sharply in importance in recent years, especially in consumer markets. Promotion tools include a wide variety designed to stimulate or enhance market response which may be generated by other components or communications and marketing strategy. Such tools include samples, contests, prices-off, premiums and demonstrations. Trade promotions may also be offered when bank services such as consumer finance are provided through third parties like retailers or automobile distributors. Such promotion includes special volume discounts, free goods, cooperative advertising, dealer sales contests and dealer salesmen incentives. Within banks themselves incentives are being increasingly offered for superior performance. Many banks now offer bonuses for meeting sales objectives or other incentives such as contests, free goods and holidays. Promotion techniques tend to be faster in operation than advertising but the response to them is also usually shorter in duration and not especially likely to consumers who are likely to switch banks rather than new long-term accounts. By contrast, advertising is more likely to capture new ‘permanent’ accounts. Promotion can be especially helpful, however, in increasing awareness and image of new services by existing customers and used in this way can form a valuable element in communications strategy.

 A Public relations is more of a background activity and is designed to enhance the bank’s position with specifically targeted audiences. Sponsorship can be directed to specific target customer segments such as accountants, farmers, culture lovers and sports players. The key objective of publicity is to obtain editorial coverage, as distinct from paid space, in media seen by the bank’s desired customer base. It may be used to promote services, places, ideas, people, activities and organization image.

♦ Personal Selling

            Personal selling has traditionally been the principal communication channel in the banking industry, although until recently the concept of selling financial services was very poorly developed. Nevertheless the branch delivery system corporate banking personal selling is still the preferred means of communication and the large and medium corporate market specialist account managers have tended to supersede traditional branch managers as the main mechanism for the bank to sell its services.

Communications Strategy ofEXIM Bank:

            EXIM Bank is a third generation bank. It has converted into Islami Banking in July 01, 2008 with the approval of Bangladesh Bank. EXIM Bank mainly emphasis on public relation out of four communications strategy. EXIM Bank does following activities for their market promotion and advertising.

1. When they open new branch, send letter to the elite persons, offices and industries in that area for opening account in their bank.
2. Every year they arrange get together for their loyal customer in Dhaka and Chittagong. For that reason EXIM Bank build good relationship with their clients. EXIM Bank also solves the clients problems and they show the procedure the overcoming the problem.
3. They arrange the ceremony of award to the honorable person in every year.
4. They send gift item at the beginning of the year to the senior citizen of the society. These items include pen, dairy, calendar, pen stand, wall clock etc.
5. They also give special gift to the elite person in different occasions.
6. In every month the higher authority of EXIM Bank give information about the market condition and suggestion to the branch manager.
7. The managers of every branch tell present condition of his branch to the head office in every month.
8. Head Office updates deposit and investment guideline to the branch manager.
9. EXIM Bank sponsors different types of National games.

            EXIM Bank will soon setup a Research and Development Division and separate marketing divisions which are help them to implement better marketing strategy.

Place Strategy of EXIM Bank:

            One of the simplest methods of segmenting markets is by their geographic location. People who are living in one region of the country have consuming and purchasing habits that differ from those who live other regions. For example, the usage of woolen sweaters and jackets is higher in north India, due to the extreme cold during cold during the winter months, compared to consumers in south India.

            Even in local markets, geographic segmentation is important. A bank branch in the western part of the city may attract account holders from that part of town to the bank. However, the bank branch manager may find it difficult to attract customers from the eastern part of the city due to the location inconvenience. When marketers analyze geographic data, they study sales by region, by state, city size, specific locations and the kind of retail outlets where sales are made.

            Its may be seen and unseen it is not necessary that bank perform its activities by branch network. Bank may be deal contacts with a client or corporation in different location out of Bank branch. EXIM Bank has 30 branches in urban and rural area. But most of them are in urban commercial area.

Mudaraba Monthly Income Scheme:

            Bangladesh is a developing country. But in our country opportunity of is very low. People of our country always try to save their excess money and they are looking for where they can deposit the money. According to their demand EXIM Bank started this monthly income scheme.

Highlights of the Scheme:

• Minimum deposit Tk. 25000/=
• Higher monthly income for higher deposits.
• The scheme is for a 5 years period.
• Monthly income will be credited to the depositor’s account on 5^th of each month.

Objective of the scheme:

• An account is to be opened by filling up a form.
• The bank will provide to the customer a deposit receipt after opening the account. This receipt is non-transferable.
• If the deposit is withdrawn before a 5 years term, the saving interest rate will be applicable and paid to the depositor, however, no interest will be paid if the deposit withdrawn within 1 years of paid to the customer will be adjusted from the principal amount.
• A depositor can avail loan up to 80% of the deposit amount under this scheme. In this case, interest will be charge against the loan as0
• 3 per bank’s prevailing rate. During the tenure of the loan, the monthly account until liquidation of the loan amount inclusive of profit.
• The Government taxes will be paid, if necessary taxes will be paid, if necessary, by the client.

Mudaraba Super Savings Scheme:

Saving helps to build up capital and is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why savings is treated as the very foundation of development. To save, EXIM Bank offers Super Saving Scheme.

♦ Terms and Conditions of the scheme:

1. Any individual, company, educational institution, government organization, NGO, trust, society etc may invest their savings under this scheme.
2. The deposit can be made in multiples of TK.10,000/=
3. The period of deposit is for six years.
4. Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the name of opening the account.
5. If the deposit is withdrawn before six years terms, then savings interest rate +10% will be applied before payment is made. However, no interest will be paid if the deposit is withdrawn within 1^st year.
6. A depositor can avail loan up to 80% of the deposited amount under this scheme.
7. Incase of death of the depositor, before the term, the deposit (with saving rate +1%) will be given to the nominee. In the absence of nominee, the legal heirs/successors will be paid on production of succession certificate.
8. Incase of issuing a duplicate deposit receipt the rules of issuing duplicate receipt of term deposit will be applicable.
9. The client will pay the Government taxes if necessary, in future.

Some examples are given in the table below. Any amount can be deposited in multiples of TK.10,000/=

 Mudaraba Multiplus Savings Scheme:

            Saving helps to built up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization that eventually crates wealth. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save, EXIM Bank offers Multi plus Savings Scheme.

♦ Terms and Conditions of the Scheme

1. Any individual, company, educational institution, government organization, NGO, trust, society etc may invest their savings under this scheme.
2. The deposit can be made in multiples of TK. 10,000/=
3. The period of deposit is for 10 years. But he deposit can be withdrawn at any year with profit. As an example of 1 year but before 2 years then deposit with interest with paid for 1 year only. The same rule will apply for other years. If deposit is withdrawn before 1^st year then no interest will be paid.
4. Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the name of opening the account.
5. The depositor can avail loan up to 80% of the deposit under this scheme.
6. Incase of issuing a duplicate receipt the rules of issuing a duplicate receipt of terms deposit will be applicable.
7. (a) Incase of death of the depositor, before the term, the depositor (with saving rate) will given to the nominee. In the absence of nominee, the legal heirs/successors will be paid on production of succession certificate.

     (b) The nominee may, at his option continue the scheme for the full term.

1. The government taxes will be paid, if necessary, by the client, in future.

Some examples are given in the table below. Any amount can be deposited in multiples of TK. 10,000/=

Mudaraba Monthly Savings Scheme:

            The savings amount is to be deposited within the 10^th of every month. Incase of holidays the deposit amount is to be on the following day. The deposit may also be made in advance. The depositor can have a separate account in the bank from which a standing instruction can be given to transfer the deposit in the scheme’s account.

Incase the depositor fail to make the monthly installment in time, and then 5% on overdue installment amount will be charged. The charge will be added with the following month(s) installment and the lowest charge will be TK. 10/=.

♦ Terms and condition

1. A form has to be filled at the time of opening the account. No introduction is attested photographs are advised.
2. The depositor can select any of the installment amounts, which cannot be subsequently changed.
3. Incase of minors the guardians may open and supervise the account in this favor.
4. A single person can open more than one account for saving under several interest rates.
5. The depositor should notify the bank immediately on any change of address.
6. The government tax will be deducted from the interest accumulated in this scheme.
7. If necessary, at the request of the depositor, the scheme can be transferred to a different branch of the same bank.
8. The bank reserves the right to change the rules and regulations of the scheme as and when deemed necessary.

Mudaraba Hajj Scheme:

            Ninety percent of people in our country are Muslim. Hajj is mandatory of every rich and physically fit Muslim people. As an Islami Bank EXIM Bank offer Hajj Scheme to the customer to fulfill the desire of religious minded people.

 One can open this type of scheme in different maturity by paying monthly installment.

 Education Saving Scheme:

            The most gratifying experience for parents is proper education of their children. Educational expense is rapidly increasing and therefore appropriate planning needs to be done by all parents. EXIM Bank offers you “Education Saving Scheme” to assist in financial planning well ahead in for there children’s higher education.

♦ Terms and Conditions of the Scheme:

1. Deposit of TK. 2, 50,000/= and multiples thereof at a time will be accepted under the scheme.
2. The instrument shall be issued for 7 years, 10 years, 15 years or 20 years term.
3. The deposit payable at maturity with benefit either in lump sum or on monthly basis as education allowance for 6 years starting after the completion of respective term.
4. To avail the education allowance, the depositor is required to deposit the receipt to pay the amount to his/her nominated person on monthly installment basis as or instrument with the bank duly discharged by him with the written instruction stipulated in the scheme.
5. Normally no withdrawn will be allowed before maturity. But, if any depositor intends to withdrawn his deposit before maturity, the following rules will be applicable:

1. If withdrawn is made before seven years, interest will be calculated and paid as per prevailing saving rate.
2. If withdrawn is made at any time after seven years, the total amount payable at maturity of the immediate preceding terms will be paid along with interest for the fractional period at prevailing saving rate.
3. The depositor can avail loan up to 80% loan under the scheme.
4. Incase of issuing duplicate receipt the rules of issuing duplicate receipt of terms deposit will be applicable.

Example Table

Smart Saver:

            Smart Saver is a high return investment plan which helps a customer builds up sizeable amount in a period of 5 years. This scheme offers a customer to buy Smart Saver term deposit 5 times the invested amount. Smart Saver is a five year term deposit scheme.

♦ Terms and condition:

1. One unit of Smart Saver Term deposit is tk.25000
2. During the tenure of the loan the Term Deposit will be kept in the bank as security.
3. The customer will have to open an account and monthly installment of loan will be debited from the account commencing from 30 days after opening loan account.
4. Within the 1^st year if the customer fails to repay 3 consecutive installments then only the principle amount of Smart Saver Term deposit will be encased and the loan will be liquidated inclusive of accrued interest and balance paid to the customer. After completion of one 1 year Savings rate will be added to the principal amount of the Smart Saver Term Deposit. In both cases closing charge will be tk.500.
5. For missed installment on due date customer will be charged tk.25 per unit per month.
6. In the event of death of the customer, the bank shall be entitled to encase the term deposit and adjust the dues first before any refund is made of the nominees/successors.

 The bank reserves the right to amend the rules and rates as and when deemed to be necessary.

 Credit Card:

            The Bank has launched Master card among its customers in joint collaboration with Prime Bank Ltd. EXIM Bank’s card is accepted at more than 5000 outlets spread around the country; this card can be used in purchase of everyday necessities to luxurious goods and services. This wide range of merchants include hotels, restaurants, airlines, travel agents, departmental stores, hospitals, clinics & diagnostic centers, jewelry shops, electronic shops, health clubs any many more. Numbers of outlets are increasing day by day to cater to growing needs.   EXIM Bank card provides cash withdrawal facility up to 50% of your credit limit; this may be availed from ATM or from any branches of EXIM Bank Ltd. With a nominal cash withdrawal charge.

EXIM Bank offers different types of investment facilities in several times. Some of these are discuss bellow-

Izara Bill Baia (General):

Short term, medium term & long term investments allowed to individual/ firm/industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. These types of lending are mainly allowed to accommodate financing under the categories.

a)       Large & Medium Scale Industry and

b)      Small & Cottage Industry.

Very Often Terms Financing for

a)       Agriculture &

b)       Others are also included here.

Features:

             The Islamic Shariah principle of investment under Izara Bill Bia is Musharaka Mutanakasha, which means the rent, shall be devisable as per equity involved, unpaid rent if any shall not be treated as equity and the asset shall be acquired on participation ownership.

• Possession of the asset shall be passed on to the client for use as per practicability.
•  Bank shall retain the ownership till payment of equity portion of the bank along with rental.
• The ownership of the asset shall gradually pass on to the client upon payment of bank’s equity involved and on the reverse upon increase of client’s equity.
• Rent shall not be compounded in any case i.e. no rent shall be charged on Unpaid/outstanding rent. The client shall reduce incidence of rent proportionately with the reduction of equity of the bank of payment of installment.
• Since it is a kind of Musharaka, cash can be paid to the credit of clients account. However, the purpose for which cash is disbursed must be ensured from the point of banking.
• Incase of need the equity portion may be increased or decreased by making lump sum payment by either side. Very often the client may require funds to run the equipments/machineries for short period as working capital which may be paid to the debt of respective Izara Bill Bia Account if found feasible and covered by the value of assets.

Izara Bill Baia (HB):

             Investment allowed to individual/enterprises for construction of house commercial fall under this type of investment. The amount is repayable by monthly installment with a specified period. Such investments are known as Izara Bill Bia (HIB). No investment for construction of residential house building shall be accommodated to the banks customer where is no other business consideration.

Izara Bill Baia (Staff HB):

             Investment allowed to our bank employees for purchase/construction of house shall be known as investment (Staff HB).

 Bai-Muajjal (BAIM):

             It is a mode of investment under which the bank at the instance of the client procures certain goods permissible under Islamic Shariah and the law of the country and sells those to the client at a price payable at a fixed future date in lump sum or in fixed installments and the goods are delivered in advance and the fixed price is paid later or as agreed by the parties.

Important Features:

             Goods are to be purchased from a third party excluding sister concern(s) of the client. Ownership of bank on the goods is established at least for a single moment before selling the same to client. Like Murabaha, bank is not bound to declare cost of goods and profit mark up separately.

 It is a credit sale by which ownership of the goods is transferred by the bank to the client before receipt of sale price. That is payment is deferred for a fixed period. Bank may ore may not retain possession of the goods considering the security the security aspects. (However, in our bank, generally goods are delivered to the investment client but sufficient collateral is kept).

Murabaha:

             Financial accommodation to individual/firm for trading as well as for wholesale or to industries as working capital against pledge of goods as primary security fall under this head of investment. It is also a continuous investment and like the above allowed under the categories.

a)       Commercial Lending

b)       Working Capital

Bai-Murabaha Investment:

             Bai-Murabaha may be defined as a contract between a buyer and seller under which the seller certain specific goods permissible under Islamic Shariah and the law of the land to the buyer at a cost plus agreed profit payable in cash or an any fixed future date in lump sum or by installments. The profit marked-up may be fixed in lump sum or any percentage of the cost price of the goods.

Ordinary Bai Murabaha:

If there are only two parties, the seller and the buyer, where the seller as an ordinary trader purchases the goods from the market without depending on any order and promise to buy the same from him and sells those to a buyer for cost plus profit, then the sale is called ordinary Bai-Murabaha.

   Bai-Murabaha on order and promise:

If there are three parties, the buyer, the seller and the bank as an intermediary trader between the buyer and the seller, where the bank upon receipt of order from the buyer with specification and a prior outstanding promise to buy the goods from the bank, purchases the ordered goods and sell those to the ordering buyer at a cost plus agreed profit, the sale is called “Bai-Murabaha on or promise”, generally known as Murabaha.

             Bank shall purchase the goods so that ownership of bank on the good is established at least for a moment. The bank may also engage the investment client as buying agent as per previous agreement to purchase the goods from third party on behalf of the bank who after purchase shall handover possession of the same to the bank at least for a second and there after the same shall immediately taken into pledge of the bank. (Please refer to engaging investment client as buying agent for detailed procedure).

• There must be three parties in order to perform buying a selling under Murabaha (a) Bank (b) Seller of Goods (c) Purchaser of Goods. Goods however must not be purchased from client of from any of its sister concern. Goods must also be halal as per Shariah.
•  A commodity in the true sense of the term must be involved in buying and selling.
•  There must be an agreement between the bank and the client. Cost of the goods sold and the amount of profit added there with should be separately and clearly mentioned in the Murabaha Agreement.
•  After procurement of the goods the client shall take delivery of the same signing on the reverse of the purchase schedule and immediately there after the bank shall take the goods in to pledge as security of bank’s investment.

Izara Bill Baia (HP):

            Izara Bill Baia (HP) is a type of installment investment under which the purchaser agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of principal as well as profit for adjustment of the investment within a specified period.

Izara (LF):

            Izara (LF) is one of the most convenient sources of acquiring capital machinery and equipment whereby a client is given the opportunity to have an exclusive right to use an asset usually for an agreed period of time against payment of rent. It is a term financing repayable by installment.

House Hold Durable Scheme (HDS):

            It is a special investment scheme of the bank to finance purchase pf consumer durable to the fixed income group to raise their standard to living. The customers allow the investments on soft terms against personal guarantee and deposit of specified percentage of equity. The investment is repayable by month installment within a fixed period.

Bai-Muazzal (General/FO):

            Investment allowed to individual/firms against financial obligation (i.e lien of MTDR/PSP/BSP/Insurance Policy/Share etc.) This may not be a continuous investment.

 Bai-Muazzal (WO):

            Investment allowed against assignment of work order for execution of contractual work falls under this head. This investment is generally allowed for a definite period and specific purpose i.e. it is not a continuous investment.

 Bai-Muazzal (Export):

            Investment allowed for purchasing foreign currency for payment against L/Cs (Back to Back) where the exports do not materialize before the date of import payment. This is also investment for temporary period, which is known as export finance and falls under the category “Commercial Lending”.

Murabaha Import Bills (MIB):

            Payment made by the bank against lodgment of shipping documents of goods imported through L/C falls under this head. It is an interim investment connected with import and is generally liquidated against payment usually made by the party for retirement of the documents for release of imported goods from the customs authority. It falls under the category “Commercial Lending”.

Murabaha Post Import (MPI):

            Investment allowed for retirement of shipping documents and release of goods imported through L/C taking effective control over the goods by pledge in godown under bank’s lock & key fall under this type of investment. This is also a temporary investment connected with import is know as post import finance and falls under the category “Commercial Lending”.

SWOT analysis of EXIM Bank:

SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strengths, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

 Strengths:

EXIM Bank limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector.

EXIM Bank has provided its banking service with a top leadership and management position. The Board of Directors headed by its Chairman Mr. Md. Nazrul Islam is a skilled person in the business world. Alamgir kabir, the advisor of the Bank is a reputed senior chartered accountant 30 years vast experience in accounts, audit, finance and banking at home and abroad. Mr. Kaji Masihur Rahaman work as the managing director of the bank management team. The top management officials have all worked in reputed banks and their years of banking experience, skill, and expertise will continue to contribute towards further expansion of the bank.

EXIM Bank limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2008. The number of deposits and the loans and advances are also increasing rapidly.

EXIM Bank has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while, communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees.

EXIM Bank has the reputation of being the provider of good quality services too its potential customers.

 Weakness:

The main important thing is that the bank has no clear mission statement and strategic plan. The banks not have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined now with a strong feasible strategic plan.

The bank failed to provide a strong quality-recruitment policy in the lower and some mid level position. As a result the services of the bank seem to be dues in the present days.

The poor service quality has become a major problem for the bank. The quality of the service at EXIM Bank is higher than the Dhaka bank, Prime bank or Dutch-Bangla bank etc. But the bank has to compete with the multinational Bank located here.

 Some of the job in EXIM Bank has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of EXIM Bank that it is having a group of unsatisfied employee.

 In terms of promotional sector, EXIM Bank has to more emphasize on that they have to follow aggressive marketing campaign.

 Opportunity:

            In order to reduce the business risk, EXIM Bank has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector.

 The activity in the secondary financial market has direct impact on the primary financial market. Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank.

Opportunity in the retail banking lies in the fact that the country’s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market.

A large number of private banks are coming into the market in the recent time. In this competitive environment EXIM Bank must expand its product line to enhance its sustainable competitive advantage. In the product line, they can introduce the ATM to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer.

            In addition to those things, EXIM Bank can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders. And the scheme should be separate according to the professions, such as engineers, lawyers, doctors etc.

Threats:

            All sustain multinational banks and upcoming foreign, private banks posse’s enormous threats to EXIM Bank limited. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against at on slough of foreign the banks.

The default risks of all terms of loan have to be minimizing in order to sustain in the financial market, because default risk leads the organization towards to bankrupt. EXIM Bank has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.

The low compensation packages of the employees from mid level to lower level to position threats the employee motivation. As a result, good quality employees leave the organization as a whole.

            Survey on customer service through general banking at EXIM Bank of  Narayangonj Road Branch discovered that there is prevailing a strong competition in this sector. Many banks are operating and more new are entering, hence increasing the competition. In this situation EXIM Bank Ltd. can modify its existing decisions in the following way:

Product Decision:

            All the services offered by the bank are similar and prone to limitation by its competitors. Long established services may ease to satisfy fully the changing needs of the customers. Such product may become increasingly non-competitive, unprofitable and even unnecessary. When all the banking institutions are offering similar services, EXIM Bank Ltd. can offer different services. A significant part of the marketing effort must be devoted to the monitoring of existing services and where such deterioration is fund, a decision must be taken on how to remedy the situation. In essence there are 2 alterations:

(a) Add New Features to Services:

            The product may be updated and renovated so as to bring it back in line with customer requirements. The following tips may be considered:

• EXIM Bank can receives customers monthly telephone bill, electricity, gas, water, mobile etc. it will be advance features of customers service if the payment are arranged from their current/savings/short term deposit accounts.
• It can introduce “Tele-banking” service, which provides the customer the opportunity to make inquires and request to the bank over telephone with total confidentiality and security like the HSBC Bank.
• It can introduce “ATM facility” which provides 24 hours services.
• It can introduce “Safe Deposit Lockers” in every branch by which the clients will get a hidden place for keeping their valuable things.
• It can introduce “Consumer Credit Scheme” like other bank to the reliable clients.

(b) Maintain Existing Services:

            Current services can be maintained deposit its fault on unpredictability and without alteration, either because the service is continuing to make profit, however slight or because it is considered an important component of the company’s image, which cannot dispensed with.

(c) Information and Technology Service:

            Export Import Bank of Bangladesh Limited is one of the leading third generation bank in Bangladesh. Very recently they are providing electronic banking service to the customers with great care and responsibility.  The bank has now 33 branches in Dhaka, Chittagong, Sylhet, Commilla, Noakhali, Jessore and Bogra. This entire branch is using individual baking software SQL server as database. They are connected through telecommunication network for providing any branch banking services to the customer. The bank intended to purchase a centralized and integrated banking software including module for general banking, trade finance, investment, foreign exchange, central accounts, Nesto Accounts reconciliation, Tele Banking, Internet Banking, SWIFT, ATAM and POS interface etc.

 Pricing Decision:

            In the customer survey, it was revealed that customers are very price-conscious. Price plays both an economic and physiological role in the banking sector. Especially customers of EXIM Bank who comes from largely middle class income groups are likely to be very price sensitive. They can offer services, which have fewer service charges.

Promotional Decision:

            Promotion forms an important component of any marketing campaign. The intangible dominant product services are not easily advertised. The intangible is difficult to depict in advertising whether the media is print, TV or radio. Services advertising should thus emphasize tangible cues that will help the customers understand and evaluate the service. The following tips may be taken in this connection. They introduce other promotional item these are EID card, happy New Year card for all the customer. And other type of special gifts like moneybag, wall clock, pen for only special clients.

• Organization Advertising:

            The branch can use advertising to promote principally the name of organization and keep it in the forefront of customer’s consciousness, without referring in depth to any particular service. The bank can use the type of advertisement by creating its name, which is designed to distinguish itself in the mind of the customer from its competitors and refer it, more attractive.

• Service Awareness:

            There is a considerable degree of ignorance as to the range of specific services offered by the bank. For this reason the branch should pursue advertising strategy aimed at raising the general level of awareness of the range of services available giving some easy understandable details or the particular item.

• Service Advertising:

            Can advertise its specific services either to promote and establish new products for to maintain the success of existing ones. Advertisement of established services such as MSS (monthly Savings Scheme), SSS (Super Saving Scheme) etc. can be undertaken in response to the growth of competition from other banks and financial institutions.

• Service Differentiation:

            Benefit to customers-customers is the ultimate beneficiaries of the services. So there may be some services which the customers are aware of but do not know their actual benefits. So the branch can put its advertising effort to arouse the need in respect of a particular service.

• Media:

            The media through which the advertising is communicated to the target audience must also be considered. The primary consideration will usually be the cost effectiveness of a particular medium in reacting the target audience. It is inappropriate to use a cheap medium, which reaches only a small proportion of the audience, just it is inappropriate to use a costly medium, which broadcasts its message over a much larger audience than the target market.

 Place Decisions:

            Must continually monitor the changes of the demographic and economic. This is necessary as area’s develop and decline or changes their nature directly effect the development.

Conclusion:

            Export Import Bank of Bangladesh Limited is a new generation bank. It is committed to provide high quality financial services/products to contribute to the growth of GDP of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country.

            Through it is a new bank, EXIM Bank makes a strong position through it’s varies activities. Its number of clients, amount of deposit and investment money increases day by day. This bank already has shown impressive performance in investment.

            Consumer are more or less satisfied with the present services of the bank now should think to start new services and take different types of marketing strategy to get more customers in this competition market of banking.

            At last it can be said that, EXIM Bank Ltd. is growing fast and its contribution in our economy is also considerable. I hope that EXIM Bank will wide its services by expanding its branch all over the country.