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The IUP Journal of Marketing Management
Focus

India is an emerging consumer market. And consumer sales promotions, also called deals, are the key promotional strategies employed by marketers for immediate product purchase. The first paper, “An Evaluation of Consumers’ Deal-Specific Response to Sales Promotions Based on Their Product Involvement”, by Surajit Ghosh Dastidar, examines whether deal-prone buyers in a given product category are also deal- prone buyers for other product categories. The study is carried out across two product categories which assures cross-product validation, i.e., consumer’s deal redemption intention, tested in the case of eight types of deals, using a sample of 410 respondents, and has been compared across a low involvement FMCG product, shampoo, and a high involvement durable product, apparel, to check whether consumers are consistent, or vary in their deal proneness across the two product categories. The findings of the study will help marketers to strategize the use of various deals effectively, specifically as per their product category.

The hospitality sector is an important component of the tourism industry. Hospitality industry includes hotels and restaurants. To succeed, hotels and restaurants must have a proper marketing strategy focusing on various customer segments. The second paper, “Profiling Customers in the Hospitality Sector: An Approach Towards Market Segmentation in Hotels and Restaurants in Assam”, by Sinmoy Goswami, Panchanan Barman and Suman Sarmah, reveals 29 parameters that have a significant impact on the guests’ overall service experience in hotels and 18 parameters in case of restaurants. Three customer segments were discovered in the hotel sector—convenience seekers, accessibility seekers and quality seekers. Three customer segments were discovered in restaurant category—sensible eaters, aesthetic seeking eaters and quality eatable seekers. The study helps in developing appropriate marketing strategies for each segment, thus guaranteeing uninterrupted profitability and survivability of hotels and restaurants.

Researchers in India as well as abroad have shown that a considerable price spread exists between the price paid by the consumer and the price received by the farmers for an equivalent quantity of farm produce. Agricultural products still reach the consumers by means of traditional marketing channels in most parts of India. The third and last paper, “Evaluation of Traditional Marketing Channels of Agricultural Produce: Paddy and Rice”, by Rinalini Pathak Kakati and Moitrayee Banerjee Chakraborty, focuses on evaluating the efficiencies of traditional marketing channels used by farmers for paddy/rice in Assam. The traditional marketing channels under study are—Channel 1: producer, local agent, wholesaler, and retailer; Channel 2: producer, small miller, wholesaler, and retailer; and Channel 3: producer, local agent, large mills, and wholesaler. The study shows that farmer’s share in the consumer rupee is the highest percentage (in this study 68%) of consumer’s price in Channel 2 because of the farmers’ taking more marketing initiative on their own. Modified Marketing Index and Shephard’s Index also show Channel 2 as the most profitable for the farmer.

Ambi Parameswaran, in the book, Nawabs, Nudes, Noodles: India Through 50 Years of Advertising, through personal experiences and storytelling, shares anecdotes of iconic and legendry names of the advertising world and memorable ads that created history. Rachna Sharma critically reviewing the book which is divided into four sections, namely, People, Products, Services and Ad Narratives claims that the book is a treasure trove for advertising professionals and simply anyone who is enamored with the advertising sector.

-- B Shafiulla
Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Marketing Management