Banking Terms for Bank Exams
Q
1. Qualities of good sales man: A good salesman should be a person with good soft skills & people skills. He must be personable, and of an amiable disposition. He must have a thorough knowledge of products and services offered by a bank, he must empathise with the customers both existing & prospective, the ability to explain its features clearly and confidently, the ability to understand and overcome objections and resistance so as to acquire new customers and the ability to nurture the relationship to ensure repeat sales with respect to existing customers. He should also stand by his product and do damage control in the event of a quality complaint or delays in delivery.
R
1. Relationship Selling: Relationship selling means trying to build relationships of a long-term nature with customers, particularly High Net Worth Individuals to identify needs and the best way to satisfy such needs so that the relationship is nurtured in a win-win situation for both the Bank & the Individual such that it results in continuous business for the Bank. Assigning a Relationship Manager to such customers is a practical example of Relationship selling in the Banking context.
2. Repositioning: In the marketing context, an attempt at changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.is called repositioning.
3. Rural Marketing: Rural marketing involves marketing a Bank’s products / services in that segment of the market which is rural in nature as opposed to an urban market, stock markets or commodities markets. Normally a rural market will represent a market with 2500 to 30,000 people. India has tremendous potential for developing rural markets because of the huge size and also because of low penetration levels. The Government’s policy of financial inclusion will give a further boost to this market. As per this policy, the Government wants every Indian to have a bank account as well as access to timely and cheap credit. This policy will have tremendous implications in the rural markets and result in massive PSU Bank expansions.
S
1. Solution Positioning:The sale of solution to a problem and not features of an item is called solution positioning.
2. Strategic Marketing: Deciding initiatives in a short-term, for a longer term orientation is called strategic marketing.
3. SWOT Analysis: This refers to the analysis of “Strength, Weakness, Opportunities, Threats “faced by an Organization/ Bank. This tool is used by the Management to decide on the most effective way to go forward for a Bank that will result in increase in revenue & profits. Revenue & Profits are the life-blood of any business which will determine the long term health of a commercial enterprise like a Bank. Increase in sales revenue is also referred to as “fop Line Growth “because it is the first entry at the top of a trading account / P & L account.
T
1. Transaction Marketing: Transaction Marketing mean of focusing on getting a customer to buy a product and walk way. This in contrast to relationship marketing which focusses on building the relationship after the first sale so that repeat sales occur.
Z
1. Zero based budgeting (ZBB): Zero based budgeting (ZBB) means a system of budgeting which reviews and approves all elements of expenditure and not merely increases in expenditure over a previous year as in a traditional system of budgeting. ZBB will not assume any resource constraints.
Some of the advantages of ZBB are
- Cost centres identify their relationship with over all goals.
- Motivates managers to put in place cost effective means of improving operations.
- Identifies inflated budgets.
- Helps service departments where output is difficult to evaluate. Some of the disadvantages of ZBB are:
- A very time consuming process because it is highly detailed.
- Managers need to be adequately trained
- Honesty and commitment of managers is essential for its success.