Promotional Tools of FSIBL

Introduction

Rajib Biswas ID 101215( Marketing)IIUC

Page 1

Introduction 1.1 Background Background of The Study Study

Banking sector of the world is contributed in the present global economy. To estab establis lish h a stro strong ng bank banking ing secto sectorr it is requ require ired d to have have good good stud study y in bank bankin ing g operations. Today’s Economic policy is concerned to obtain the optimum economic success in a country’s economy. Banking sector and banking activities are playing a vital and important role to achieve that optimum goal of the economy. The successful running of banking business depends upon effective banking operation. As a new commercial bank FSIBL has a huge responsibility to ensure efficient and effective banking banking operation operation all over the Bangladesh Bangladesh in a sound manner with other Banks as a competitor.

Banking sector is indispensable part in a modern age and modern society. It always plays a vital role to the economic development of a country. In modern age of science and technology the banking sector all over the world has been undergoing a lot of changes due to deregulation, technological innovation and globalization. Basically bank take deposits deposits from the customers customers against against some interest/profit interest/profit or loss sharing/payments and lend the money to the borrowers with a different interest/markup rate and time period. To ensure safety of the depositors fund there are various types of credit facility. Also bank must hold adequate fund to meet the daily needs of the clients.

During the last six years, many new banks have emerged to satisfy the needs of the customers. customers. They are continuously continuously trying to attract people towards them by offering new types of products and services to face competition and fresh challenges thrown by their rival. Efforts are made to satisfy customers’ needs by providing superior value than their competitors.

The First Security Islami Bank Ltd (FSIBL) is doing its business with a view to serve the best to the customers customers and clients with its 53 (fifty three) branches branches all over the country.


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Objective of the study The The objec objectiv tivee of the the repo report rt is to know know the practic practical al situa situatio tion n abou aboutt how how a bank bank promotional promotional tools use in marketing marketing their products products & services and how it applied applied in practically. practically. The specific objective are:

1.

To know about about the mechanism mechanism of promotio promotional nal tools tools of first first security security Islami Islami bank ltd.

2.

To know about the advertisi advertising, ng, direct direct marketing marketing,, sales sales promotion promotions, s, publicity publicity & public public relation, personal personal selling selling of FSIBL. FSIBL.

3.

To know about the custome customerr viewpoint viewpoint of product product & promotio promotional nal activities activities of of FSIBL.

4.

To put forward forward some some recomm recommend endatio ation n to improve improve promotio promotional nal tools tools use in FSIBL.

Methodology of the report Research:

The systematic and objective identification, collection, analysis, dissemination, and use of info inform rmat atio ion n for for the the purp purpos osee of impr improv ovin ing g deci decisi sion on maki making ng rela relate ted d to the the identification and solution of problems and opportunities in marketing. Types of Research:

a) Exploratory Research b) Experimen Experimental tal Research Research c)Descriptive Research Under types of Research my report is exploratory and descriptive, analytical and causal in nature. According to the instruction of prepare report sample design process are as follows.

Sample design: Rajib Biswas ID 101215( Marketing)IIUC

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The population:

Islami Islami Bankin Banking g sector sector and conven conventio tional nal bankin banking g Sector Sector are consid considered ered as target target population population in this report. report. Sampling unit:

Two Two bank bankss are sele selecte cted d as samp sampli ling ng unit unit these these are first first secu securit rity y Islam Islamii bank bank ltd. ltd. Bangladesh commerce bank ltd. Sample size:

In this report number of sample size are two. Sampling method:

Two Banking sectors are representing two different cluster I have used cluster sampling technique to select sampling unit. The The data data that that are being being used in this this repor reportt are collect collected ed from from both both prima primary ry and and secondary sources. Both sources have played equal role to show it in a positive way. Some essential points of the sources are listed according to their relates components. Primary Sources: 

Personal observation & daily diary maintenances.



Face to face conversation



Personal interview



Oral and written information from the officers FSIBL

Secondary Sources: 

Annual Reports



Audit Reports



Branch’s Monthly Report



Web Sites



Files



Services Rules



Circulars Published by FSIBL



Product and Service System

]


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Qualitative Research Techniques have been used

Interviews with operation manager/second officer/ senior officers/ assistant officer.

Survey and observations method have been used 

Personal interview in office



Personal observation in the form of unstructured within and outside of he office.

Questionnaire design Approaches

1.4 Scope of the Study

This report will provide overall organizational view of FSIBL (First security Islami Bank Ltd. ). I have worked different departments of the bank. I worked in Acco Accoun untt open openin ing, g, Remit Remittan tance, ce, Acco Account unts, s, Inves Investme tment nt & Adva Advance nce,, and and Forei Foreign gn Exchange. In each department, I have learned the procedure and polices relevant to their work.

1.5 Limitation of the Study

As the Internship period only contains three months, and in this due time we need to there information about our respective organization and make report based on collected information, we face some limitation. That are mentioning below:

1.

Bank ank is a busy usy org organiz anizat atio ion n with with comp compar aris ison on to ot others hers.. Ther Theree are are rush rushes es of of people for for about whole whole the day day and the the officers have have to transact transact with them. them. So it is very much tough for them to allocate time for an internee.

2.

The duration duration of our internship internship program program is only 3 months. months. The allocated time is not sufficient for us to gather knowledge knowledge and to make the study a complete and fruitful one.

3.

The The stu study dy was was boun bounde ded d only only to FSIB FSIBL L And Anderk erkill illaa Bra Branch nch,, Chit Chittag tagon ong. g.

4.

The bank confidentially keeps the data.

5.

Lack of depth of analytical banking knowledge.


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Profile of FSIBL


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2.1 Background of FSIBL :

Islamic banking is trying to develop the relationship between finance on one hand and industry and commerce on the other. This new relationship is the basis of the Islamic economic system being set up. Though Islamic principles have yet to be put to the test in the competitive of international finance, the two systems are similar in that they both strive for closer ties between financial intermediation and economic asset creation. Islamic banks could make a useful contribution to economic growth and development particularly in a situation of recession, stagflation and lowgrowth growth level level because because the core core of their their operat operation ion is orient oriented ed toward towardss productive investment.

Bangladesh is one of the largest Muslim countries in the world. The people of this country are deeply committed to Islamic way of life as enshrined in the Holy Qu?an and the Sunnah. Naturally, it remains a deep cry in thei heir hear heartts to fas fashion hion and and desi desig gn thei heir econ econom omiic liv lives in accord accordanc ancee with with the precepts precepts of Islam Islam.. For For this this reason reason First First Securi Security ty Islami Bank was converted into Islami Bank from conventional bank at l January 2009. Now the functions and operation modes of FSIBL is based on the principal of Islamic Shariah. It has unveiled a new horizon and ushe ushered red in a new new silv silver er lini lining ng of hope hope towa towards rds mate materi rial aliz izin ing g a long long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. FSIBL has by now earn earned ed the the uniq unique ue posi positi tion on of a lead leadin ing g priv privat atee comm commerc ercia iall bank bank in Bangladesh.

First Security Islami Bank Limited formerly First security Bank Limited was founded on 29th August 1999 under the companies Act 1994 with the object of providing all kinds of commercial banking to the customer Rajib Biswas ID 101215( Marketing)IIUC

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and and obta obtain ined ed the the cert certif ific icat atee of comm commen ence ceme ment nt of busi busine ness ss from from the the register of joint stock companies. operation from 25th October 1999 effectively. At 29th August it was given its Certificate of Incorporation from Bangladesh Bank. After that on 28th 28th1 1 Octo Octobe berr 2000 2000 the the bank bank star starte ted d its its bank bankin ing g acti activi viti ties es in the the economy. And it started its Shariah based operation as Islami bank from 1st Janurary, 2009. At present, there are (67) branches in the country to give banking services.


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2.2. Vision and Mission of FSIBL:

FSIBL must have the mission as well as vision what should back every efforts of the organization. As it is said, ‘Mission without vision is a daydream and vision without mission is a nightmare.’

2.2.1 Vision:

To esta establ blis ish h Isla Islami micc bank bankin ing g thro throug ugh h the the intr introd oduct uctio ion n of a welf welfare are oriented banking system and also ensure equity and justice in the field of all all econ econom omic ic acti activi viti ties es,,

achi achiev evee

bala balanc nced ed growt rowth h

and and equi equita tabl blee

development through diversified investment operations particularly in the priority sectors and less developed areas of the country to encourage soci socioo-ec econ onom omic ic upli uplift ft and and fina financ ncia iall serv servic ices es to the the low low-inc -incom omee community particularly in the rural areas and to be the most efficient bank in terms of customer service, profitability profitability and technology.

2.2.2. Mission

*

To achi achiev evee supe superi rior or fin finan anci cial al per perfo form rman ance ce,, be con consi side dere red d a lea leadi ding ng Islamic bank by reputation and performance.

*

To establish and maintain the modem banking techniques, to ensure ensure the soundn soundness ess and develo developme pment nt of the financ financial ial system system based on Islamic principles and to become the strong and efficient organization with highly motivated professionals, working for the benefit of people; based upon accountability, transparency and integrity in order to ensure stability of financial system.

*

To enc encou oura rag ge sav savin ing gs in in the the form form of dire direcct in invest estment. ent.


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*

To enc encoura ourag ge inv investm estmen entt part partiicular ularlly in pro project jectss whic which h are are more more likely to lead to highly employment

*

Cost Cost redu reduct ctio ion n thr throu ough gh inte integr grat atio ion n of of tec techn hnol olog ogy y at all all lev level els. s.

*

To stri strive ve our our cus custo tome mers rs bes bestt sati satisf sfac acti tion on & win win thei theirr conf confid iden ence ce.. A To manage & operate the bank in the most effective manner.

*

To ide identi ntify cus custtomer omers’ s’ need needss & moni monito torr thei theirr perce percept ptio ion n tow toward ards meeting those requirements.

*

To rev review iew & upd updated ated pol poliicie cies, pro proccedur edures es & pra pracctice ticess to enh enhan ance ce the ability to extend better customer services.

*

To train & develop all employees & provide them adequate resources so that the customers’ needs reasonably addressed.

*

To prom promot otee org organ aniz izat atio iona nall eff effic icie ienc ncy y by com communi munica cati ting ng comp compan any y plans policies & procedures openly to the employees in a timely fashion.

*

To en ensure a co congenial wo worki rking en environ ronment.

*

To dive divers rsif ify y por portf tfol olio io in both both reta retail il & who whole lesa sale le mark market ets. s.

2.3 Management of FSIBL :

The deci decisi sion on makin aking g proce rocess ss of FSB FSBL is dem democra ocrati ticc and and decent decentral ralize ized. d. The upper upper level level manag manageme ement nt hardl hardly y bother botherss about about the operational task of the bank. The

sponsor

Directors

of

the

bank

are

well-est -estaablishe shed

businessmen ad professionals of the country having business in and out Bangladesh. A board of Directors is formed taking 19 members out of the entrepreneurs and Mr. Saiful Alam (Masud) has elected as chairperson unanimously.


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Highly qualified and efficient professionals management the bank. The managing Director of the bank is Mr. A.A.M Zakaria who has rich experience about managing both the nationalized and private sector bank as Chief Executive. Most of the cases pending at Head office level solved with higher priority for smooth functioning of bank operation and quick disposal of the the prop propos osal als. s. All All the deci decisi sion on made made at Head Head offi office ce leve levell thro throug ugh h different committee. At branch level all the decision taken taken by the Branch manager complying rules and regulation set by the Head office Branch manage has the supreme authority to final disbursement of the facility to the customer. All Investment facilities under branch delegation exercise throug through h Invest Investmen mentt commi committe ttee. e. Deput Deputy y Manag Manager er coordi coordinat nates es all the functions of the branch as manager Operation.

2.4 Management Efficiency

FSIB is functioning :with a highly professional management team headed by the Managing Director Mr. A. A. M. Zakaria. Among other senior execut executive ivess curren currentl tly y one DMD. DMD. One Princi Principal pal (Train (Training ing Center Center), ), one SEVP, six EVP, eight SVP, twelve VP, ten FVP, fifteen SAVP, sixteen AVP and eighteen FAVP are discharging their services in progression of the banks business.

Managing Director

Mr. A. A. M. Zakaria, Managing Director of the bank is an eminent banking personality hiving long 33 years of experience in banking indu indust stry ry.. Afte Afterr succ succes essf sful ul comp comple leti tion on of his his B.A. B.A. (Hon (Hons) s),, M.A. .A. in Economics from Dhaka University, Mr. A. A. M. Zakaria has started his banking career in 1977 as Senior Officer of Rupali Bank. Before the current responsibility, Mr. A. A. M. Zakaria was the Deputy Managing Direc Director tor of Dutch-B Dutch-Bang angla la Bank Bank Limite Limited. d. In his multig multigreet reeted ed bankin banking g service service,, Mr. Mr. A. A. M. Zakari Zakariaa parti particip cipate ated d in many many courses courses,, traini training ng Rajib Biswas ID 101215( Marketing)IIUC

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program and workshops on banking at home and abroad. Mr. A. A. M. Zakaria joined in FSIBL on 7th August 2005 as Managing Director.Top management of the bank is supported by human resource strength of 930 executives and officers. For smooth functioning of the Bank, following committees have been formed: 1.

Manag anagem emen entt

comm commit itte teee

(MAN (MANCO COM M)

comp compri rise sess

of

seni senior or

members of the management headed by Managing Director of the bank. Head of HRD is the member secretary of the committee and Head of IMRD, Head of IC&C including DMD are the member of the the comm commit itte tee. e. MANC MANCOM OM meet meetss on regu regula larr basi basiss to disc discuss uss relevant agenda. 1.

Asset Liabilit Liability y Manageme Management nt Committ Committee ee (ALCO) (ALCO) headed by the Manag anagin ing g

Direc irecttor, is

resp respo onsib nsible le for for

balan alance ce shee sheett

risk risk

manag manageme ement. nt. The commit committee tee partic participa ipate te in the monthl monthly y ALCO ALCO meeting and review the liquidity position, review rate of interest on deposit deposit and lending, lending, and review the ALCO papers on presentation presentation by treasury back office on the position of profit, deposit, investment, cost analysis, maturity bucket of deposit & investment, balance sheet, profit and loss account and many other issues relating to banks business and assets-liability management. Five relevant divisional heads including DMD are the members and VP & Head of Treasury of the Bank is the member secretary of the committee.

Human Resources Development

FSIB has a separate Human Resources Division (HRD) to manage the employee employee policies and practices. practices. As on FYE 2010, Total 932 executive executivess & officers of the bank have been working for smooth banking operations. Bank follows a standardized human resources policy. HRD of the Bank foll follow ow a tran transpa sparen rentt and and free free & fair fair syst system em to ensur ensuree the the stan standa dard rd recruitment, training & development of human resources of the bank. The Rajib Biswas ID 101215( Marketing)IIUC

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bank has defined HR policies including recruitment, training & development, promotion, leave, transfer and disciplinary action policy. Usually Usually internal internal recruitment recruitment procedures procedures are considered considered to fill up the mid and top management positions, while entry-level positions are filled with reg regular ularlly

throu hroug gh

compe ompeti titi tiv ve

recr recrui uitm tmen entt

exam xams.

They They

foll follow ow

transparent, well- defined and strict rules for appointment of officers and staff in the Bank’s service.

Corporate Governance

Corporate Corporate governance is about how corporation corporation is running running its operations operations to achi achiev evee its its corp corpor orat atee obje object ctiv ives es.. Bangl anglad ades esh h Bank Bank (BB) (BB) give givess empha emphasis sis on imple implemen mentin ting g corpor corporate ate governa governance nce among among the financ financial ial inst instit itut utio ions ns and and to do that that,, BB empha emphasi sise sess impl implem emen enta tati tion on of the the guid guidel elin ines es issue issued d by them them for for impr improv oving ing corp corpor orat atee gove governa rnanc ncee in banking. Good Corporate Governance practices enhance an entity’s corporate image and market credibility, which attract capital and increase its borrowing power. These can be reflected in the quality of financial reporting and disclosures; strength of internal control system and internal audit function induction of professionally competent, independent non-executive Directors on corporate Board; formation of Audi Auditt Comm Commit itte tee; e; dele delega gati tion on of autho authori rity ty to exec executi utive vess and and staf staff; f; protection of corporate governance for strengthening organizational strength. With a view to ensure effective participation and deep interest in the affairs of the company and as per Articles of Association of the Company and as per Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following 2 committees:

1. Executive committee 2. Audit Committee


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Executive Committee:

FSIB has constituted 09 members executive committee of the board as per Bangladesh Bank guidelines to ensure corporate governance in the business of which managing director of the Bank is Ex-officio Member. The executive committee of the board are responsible for developing policy and strategy for smooth operations of business and business development of the bank to ensure maximization of shareholders wealth’s protecting other stakeholders interest in the company Mr. Alhaj Md. Saiful Alam, Chairman of the board of Directors is the Chairman of the present Executive Committee of the bank. He is very dynamic person and leading the executive committee of the bank in a very manner.

Audit Committee:

FSIBL has formulated an audit committee can play an effective role in form formul ulat atin ing g an effi effici cien entt and and secu secure red d bank bankin ing g syst system em.. The The Audit udit Committee has been formed comprising three members of the Board of Directors. As per corporate governance guidelines the Chairman of the Audit Committee should have sound knowledge and expertise in finance & accounting accounting or auditing auditing.. Late Mr. Hamidul Hamidul Haq, who is also a Director Director of the Bank, is Convener of the committee. He is associated in banking field over long years.

Name of the Company Chairman Vice Chairman Managing Director Company Secretary Legal Status Date of Incorporation Date of Commencement of Business Date of Permission from Bangladesh Bank22

First Security Islami Bank Ltd. Mohammad Saiful Alam Alhaj Mohammad Abdul Maleque A.A.M. Zakaria Abdul Hannan Khan Public Limited Company 29 August1999 29 August 1999 Bank22 September 1999 25 October 1999 23, Dilkusha Commercial Area,


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Date of Opening of First Branch Registered Office Line of Business Authorized Capital Paid up Capital Date of consent of IPO Phone Fax E-mail Website SWIFT Auditors

Dhaka- 1000, Bangladesh Banking Tk.4,600 Million Tk.2,300 Million 04 June 2008 9560229 (Hunting),9550334,7171029-30 9565594 (Share Division) 880-02-9561637 bcsfsblbd.com www. fsblbd .com FSEBBDDH Syful Shamsul Alam & Co. Chartered Accountants Corporate Office Paramount Heights 65/2/1 Box Culvert road (Level-6) Purana Paltan, Dhaka1000, Bangladesh Phone: 9555915, 9560332 Email: syful(ä’intechworld.net The Law Counsel Barrister & Advocates City Heart (7th Floor) Suit No. 8/8, 67, Naya Paltan, Dhaka-1000 Phone: 9349647-8 Fax: 9349866, 9567029 E-mail : [email protected]

Tax Consultant

K.M. Hasan FCA K.M. Hasan & Co. Chartered Accountants Dhaka Office Home Tower Apartment (8 th & 9 th Floor) 87, New Esk Eskaton aton Road, oad, Dhaka haka 1000 Phone: 9351457,9351564 Fax: 9345792-112


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2.5 Branch Network

Branch Networks and Inter Division and Branch Coordination At present, the bank has 77 branches of which 32 branches are in Dhaka Divi Division sion,, 30 branch branches es are in Chitta Chittagon gong g Divis Division ion,, 06 branch branches es are in Sylhet Division, 03 branches are in Rajshahi Division, 04 branches are in Khulna Division and 02 branches is in Barishal Division. All the 68 branc ranche hess are com comput puteri erized zed und under dist istrib ributed uted serv server er envi enviro ronm nmen ent. t. Anot Anothe herr few few bran branch ches es are are plan planni ning ng to open open withi ithin n December 2011. FSIBL has already started their on-line, SMS and ATM banking facilities for their clients. clients.

2.6 Credit Rating of the Bank

Credi reditt Ratin ating g Agenc gency y of Bangl anglad ades esh h (CRA CRAB) has has give given n BBB 3 (pronounced triple B three) rating in Long Term and “ST-4” rating in Short Term to First Security Islami Bank Limited. Commercial Banks rated ‘BBB’ have adequate capacity to meet their fina financ ncia iall comm commit itme ment nts. s. Howe Howeve ver, r, adve adverse rse econ econom omic ic cond condit itio ions ns or chan changi ging ng circ circum umst stan ance cess are are more ore like likely ly to lead lead the the Banks anks into into a weakened capacity to meet their financial commitments. BBB rated banks are subject to moderate credit risk. Such banks are considered mediumgrade and as such may possess possess certain certain speculativ speculativee characteri characteristics. stics. At the same time, banks rated “ST-4” in short term are considered to have below average capacity for timely repayment of obligations. Such capacity is highly susceptible to adverse changes in business, economic, or financial conditions than for obligations in higher categories.


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2.7 Financial Highlights of First Security Islami Bank Limited :


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70000000000 Paid-up Capital pital Capital pitalSurplus TotalAssets 60000000000

Total Deposits Total Investments TotalContingentliabili liabiliti ties es& Commitments

50000000000

Investment Deposit Ratio tio(In (In%) Classified fied Inv.ag Inv.against Total Inv. Inv.(In (In %) Profit before before tax&provision Amountof classified sifiedinv.

40000000000

Provisional Surplus(Deficit eficit)) CostofFund Profit Profit earning earningassets

30000000000

Nonprofit earningassets ROI (In (In%) ROA (In%) 20000000000 IncomefromInv. EPS(TK.) NetIncome Incomepershare(TK.) 10000000000

PER(Tim imes) Provisionkeptag.clas .classified sifiedInv. Inv. Total Capital Fund

0 2009

2010

2.8 Products of FSIBL Rajib Biswas ID 101215( Marketing)IIUC

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Products and services of FSIBL can be described in three dichotomies:

A. Deposit Schemes:

•

Al-Wadiah Current Deposit.

•

Mudarabah Special Notice Deposit (SND).

•

Mudarabah Savings Deposit.

•

Mudarabah Term Deposit i. One month ii. Two months iii. Three months iv. Six months v. Twelve months vi. Twenty four months vii. Thirty Six months.

• •

Foreign Currency Deposit. Mudarabah Savings Scheme-

• Mudarabah Monthly Profit Schemes (MMPS) • Mudarabah Monthly Savings Scheme (MMSS) • More than double the deposit in 6.5 years.

•

Consumer Finance Scheme.

B. Investment Schemes : •

Investment

♦ Bai Murabaha (Defeerred Lump sum/Installment sale) ♦ Bai Muajjal (Deferred Installment/Lump sum sale) ♦ Musharaka (Joint Venture profit sharing) ♦ Mudaraba (Trustee Profit Sharing)


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• Bai Salam (Advanced Sale and Purchase) • Hire-Purchase • Direct Investment • Post Import Investment • Purchase and Negotiation of Export Bills • Inland Bills Purchased • Murabaha Import Bills • Bai Muajjal Import Bills • Pre shipment investment • Quard-ul-Hasan (Benevolent Investment)

C. Others :

♦

Letter of Guarantee • Tender Guarantee • Performance Guarantee • Guarantee for sub contract • Shipping Guarantee • Advanced payment Guarantee • Others

♦

Letter of Credit (L/C)/ back to back L/C

♦

Specialized Schemes • Consumer Investment Scheme • SME Investment Scheme • Lease Investment Scheme • Hire Purchase • Earnest Money Investment Scheme • Mortgage Investment • Employees House Building Scheme


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2.9 Services of FSIBL:

• Online Banking • SMS Banking • Lockers • Utility Bills • ATM Banking

2.10 Special Features of FSIBL :

1.

Encashment of cheque within 45 seconds.

2.

Attractive pro prov visio sional profit ra rate.

3.

Competitive L/C commission and other charges.

4.

Emphasis on small loan disbursement.

5.

Prom Promot otin ing g sav saving ing tend tenden ency cy of mass mass peopl peoplee by intro introdu duci cing ng attractive new saving scheme.

6.

Expedi Expedite te indu industr strial ializa izatio tion n by provid providing ing long long term term loan loan thro through ugh lease finance.

7.

Micro Credit facility for middle class people.

8.

Step taken for elevation of poverty by opening branch in rural areas and providing lock facility in income generating project of rural middle class and others.

9.

Reduci Reducing ng depende dependence nce on profit profit income income by increa increasing sing fee based based income.

l0. l0.

Appl Applic icat atio ion n of mode modern rn techn technol olog ogy y and and prod produc ucin ing g qual qualit ity y serv servic ices es for the customer.


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New Products of FSIBL

Name of of New products products

• Muadaraba student School banking savings A/C ( Ankur) • Mudaraba Education deposit scheme ( Alo) • Mudaraba marriage deposit scheme ( Bandhan) • Mudaraba health care deposit scheme ( Niramoy) • Mudaraba senior citizen savings A/C ( probeen) • Mudaraba pension deposit scheme (Aboshor) • Al –wadeeah current plus A/C (Morjada) (Morjada) • Al – wadeeah premium A/C (Shomman)


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Chapter 03 Service Marketing mix


Page 23

Service Marketing Mix 

Product



Price



Place



Promotion



People



Process



Physical Evidence

Product Marketing

Product is the main element of the organization, FSIBL also giving their product which are given below. 

FSIBL trying to give best product to their clients.



FSIBL try to invent new product to compete



FSIBL try to develop their existing product

Price Marketing

Pricing are the important element for the organization. It must be appropriate otherwise strategy can be flop. In that contexts FSIBL 

Interest rate is low .



Maximum profit rate.



Set price to compete their competitors

Place

How people can buy your product. FSIBL are very much concern their placement. The process is given below. 

The banking product is the main element for the people so FSIBL are trying to keep their placement to right the place.



Distribution channel is increasing which can help to sell product.



FSIBL is improving their networking system which can help their distribution


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channel and help to reach the people. Promotion marketing FSIBL promotional activities are give below 

During During the internsh internship ip period period I found found that, all the marketing marketing of the FSIBL product product and services services goes goes with with mouth. mouth.



They also provide brochure.



Product details in website



Advertisement in billboard.



They involve lots of social responsibilities.

People Marketing 

FSIBL naturally based service marketing where People are main

asset. How FSIBL giving priorities people, discuss are given below. 

FSIBL believe that an essential ingredient to any service provision is the use of appropriate staff and people.



FSIBL is very much careful about Recruiting the right staff and training them appropriately



FSIBL try to put the right person into right place.

Process marketing

Process marketing Refers to the systems used to assist the organization in delivering the service. The process that use FSIBL is given below : 

They uses latest machines for quick cash delivery.



The process of giving debit card is very easy in FSIBL.they do complete task very quickly. That’s why customer get card very easily within short time.



They They belie believe ve An effici efficien entt serv service ice that that repla replace cess old debit debit cards cards will will fost foster er consumer loyalty and confidence in the company.


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Physical evidence

Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. FSIBL is uses service marketing mix . The physical evidence of FSIBL is given below. 

FSIBL give forces about good decorate environment that’s why decorate FSIBL nicely



Security system is very strong. There are sufficient guards in the FSIBL.



Fully computerized.



The employee of the FSIBL are mandatory wear well dress up.



Cash section does use latest equip


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Chapter 04 Analyzing Promotional Tools ls UsedBy FSIBL


Page 27

Promotion and promotion mix

The term IMC can be defined as the coordination of various promotional elements with other marketing activities that communicate with a firm’s customer.

American association of Advertising Agencies defines IMC as “concept of marketing communication planning that recognizes the added value of comprehensive plan that evalu evaluate atess the strat strateg egic ic role roless of verit verity y of comm commun unica icatio tion n discip discipli line ness like like gene general ral adverti advertising sing,, direct direct respon response, se, sales sales promot promotion ion,, public public relation relation and combin combines es these these discipline to provide clarity, consistency, and maximum communication impact.

Promotion is an element of marketing mix by which firms communicate with their customers. It includes a number of communications tools known as the promotional mix.

Promotion mix:

1) Advertising:

Advertising is any paid form of nonpersonal communication about and organization, product product or service, service, or idea by an identified identified sponso sponsor. r.

The nonper nonperson sonal al compon component ent means means that that adverti advertising sing involve involvess mass mass media media (e.g.,Tv (e.g.,Tv,, radio, radio, magazin magazines, es, newspa newspapers pers,, poster posters, s, leaflets leaflets,, billbo billboard, ard, display display signs, signs, point point of purchase, purchase, sign sign and symbo symboll as well well as logos.) logos.) that can can transmit transmit a message message to large large groups groups of individuals, of than at the same time.

2) Direct Marketing:

Direct marketing, in which organizations communicate directly with target customers to generate a response and/or a transaction. It involves a variety of activities, including database management, direct selling, telemarketing, and direct response ads through direct mail, the Internet, and various broadcast and print media.


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3) Sales promotions: Market Marketing ing activiti activities es that provide provide extra extra value value or incentiv incentives es to the sales sales forces forces,, the distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotions is generally into generally into two categories. i) Consumer oriented ii) trade oriented. i) Consumer oriented: Sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstake, and various point of purchase. purchase. ii) Trade oriented: Trade oriented sales promotions is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers, trade show, Fair. 4) Publicity and public Relation : A varity of programs designed to promote and enhance a company’s image and its brands a well is called publicity publicity and public relation. Examples Examples includes includes news story, editorial, press release, seminars, charitable, donation, sponsorships, publication, events etc. 5) Personal Selling: Pers Person onal al Selli Selling ng a form form of pers person on to perso person n comm commun unica icatio tion n in whic which h a selle seller r attempts attempts to assist assist and or persuad persuadee prospe prospectiv ctivee buyers buyers to purchas purchasee the compan company’s y’s product product or service or to act on an idea. Examples Examples includes includes sales presentation, presentation, sales meeting, incentive programs, trade channel relationship campaign etc.


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Promotional Strategy Strategy and overall overall marketing strategy :

Product market Strategy

Marketing Strategy

Distribution Strategy

Pricing Strategy

Promotional Strategy

Advertising

Direct marketing

Personal selling

Publicity and Public relation

Sales Promotion

Promotion mix used by FSIBL :

First First secur security ity Islam Islamii bank bank are using using diffe differen rentt type typess of prom promot otio ional nal mix mix where where advertising media are used by the bank is at the medium extent, Direct marketing media are used by the bank very widely, Sales promotion media are used by the bank very widely, publicity of the bank’s product and service are being held at the medium extent, public relation activities are taken by the bank at widely widely level, personal personal selling tools used by the bank to promote its product and services at the medium extent, internet and mobile banking media is used by the bank very widely .


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FSIBL used advertising media in different way that are discussion below. 

FSIBL using the print media for advertising purpose at medium level and by this advertising they want to publish their various product to the client.



FSIBL publishing their familiarity in Electronic media at medium level.



Bill board is also highly used used in FSIBL for advertisement advertisement purpose.



Leaflets is also highly used in FSIBL for advertisement purpose.



FSIBL also involve in Socio economic development in Bangladesh by doing this activities.



They want to do some thing good for the nation. Actually it is one kind of adverti advertisin sing g by which which a man can know the various various financia financiall activiti activities es of the bank.

Direct marketing media used by the FSIBL:

To measure the nature of the direct marketing used by the FSIBL. 

FSIBL use telemarketing system to know the information of their their product to the client.



FSIBL also direct selling their products to the customer by using leaflets, hand bills, etc. etc.



FSIBL use database management system in their daily banking activities.



FSIBL use direct mail to the customer mentioning the information of their products. products.

FSIBL use sales promotion media:

To measure the nature of the sales promotion use by the FSIBL, area wise ration scaling techn techniq ique uess have have been been use use wher wheree at least least the area area inclu includin ding g spec special ial facili facilitie tiess or adva advant ntag agee

for for

the the

corp corpor orat atee

clie client nt,,

disc discou ount nt,,

prof profit it

rate rate,,

bonu bonus/ s/in ince cent ntiv ives es,,

visa/debit/credit card, training program etc as 100% sales promotion tools where FSIBL are using only nine tools out of ten and that can be considered as 90% effort is being given in the area of sales promotion. Publicity:

I

measur measuree the nature of the publicity publicity used used by the FSIBL, FSIBL, area wise ratio ratio scaling scaling

techniques have been used where at least nine area including national debate, talk show,


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confere conference nce,, social social develo developme pment nt progra program, m, special special award award achieve achievemen ments, ts, activiti activities es or programs programs that benefited benefited the people people and and increased increased the image image of the the nation , press release, release, articles published by the media etc as 100% publicity tools where FSIBL are using only five tools out of nine and that can be considered as 60% effort is being given in the area of publicity . Public relation:

To measure the nature of the public relation used by the FSIBL .area wise ratio scaling techniques have been used where at least twenty area including social development activities as the part of CSR, celebration of success, publication of annual reports, internet public relation, sponsorship of games etc as 100% pubic relation tools where SJIBL have used only fifteen tools out of twenty that can be considered as 70% effort is being given in in the area area of public public relation. relation.

Personal selling

To measure the nature of the personal selling used by the FSIBL, level wise ordinal scaling techniques have been used where at least five scale has been used as five for very widely , four for widely , three for medium extent extent etc as accordingly accordingly 100%, 80%, 60% level where FSIBL are using personal selling tools at the rate of 60% effort that is being given in in the area area of personal personal selling. selling. SMS Banking:

FSIBL use SMS Banking for the best satisfaction of their clients. By this SMS Banking system. A clients can easily get all kinds of information from FSIBL. Internet Banking

Internet Banking is also popular in FSIBL. Every body can easily get all kind of banking banking related related activities activities from internet. internet. Others media 

Point of purchase in store demonstration of the products.



Produc Products ts placeme placements nts in the TV talks talks show, show, news, news, religio religion/ n/ educati educative/s ve/socia ociall programs. programs.



After marketing activities are conducted with the corporate client.



FSIBL are developing brand name, logo, symbol with meaningful, memorable, likeable characteristics (as Aunkor, Niramoi, Alo, Bandhon etc). which are facilitating their product’s awareness in the mass people.



Otherwise, FSIBL is trying to build brand image through strong pricing, product

strategy which are ultimately influencing in the area of product promotion


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A survey questionnaire on Marketing of Bank Products: Customer Customer Satisfaction Satisfaction is a very broad issue that can’t be measured easily. For a service oriented oriented organization organization like bank, bank, customer customer satisfaction satisfaction is paramount paramount as the attraction of both existing existing and potential potential customers customers depends depends on it. Customers Customers expect to get what they pay for and competition competition is so intense in the banking banking industry industry that, building building a satisfactory product that lives up to the expectations of customer is absolutely essential for all compet competitor itors. s. On the other other hand, hand, compro compromis misee with with satisfac satisfaction tion level of the customers is likely to lead the customer to switch to other banks. For the survey of customers satisfaction regarding products and services, a sample size of 25 customers were interviewed. 

Most considering facts of selecting FSIBL Category Service quality Profit Rate Reputation Location Technology Total

No. of Respondents 3 8 0 14 0 25

Percentage of respondents 12% 32% 0% 56% 0% 100%

In the study it has been revealed that 12% of the clients’ selecting FSIBL because of service quality, 32% because of interest rate, no one consider reputation of the bank, 56% choose it for its location and technology is not selected by any one.

0, 0% 3, 12% servicequality quality profit rate 8,32%

14, 56%

reputation location technology

0, 0%


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. 

Competitive Profit and Charges : Category

Yes No Acceptable Total

No. of Respondents

Percentage of

4 14 7 25

respondents 16% 56% 28% 100%

In the study it has been revealed that 16% of the clients selecting FSIBL because they think that interest rate is good, 56% say No, and remaining 28% admitted the rates and charges as accepted

4, 16% 7, 28% Yes No Acceptable

14, 56%



Explanation of Product features : Category

No. of Respondents

Percentage of respondents


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Yes Could be better No Total

6 11 8 25

24% 44% 32% 100%

From the study it has been revealed that 24% people praised that Executives are well knowledgeable about the products and products features are well explained to them, and 44% clients think that Executives is acceptable but it could be better, and 32% people complained that Executives are not providing accurate information

Yes Y es no

24%

32%

could be better 44%

Including of new Products: Category

Yes No Total

No. of Respondents

Percentage of

24 1 25

respondents 96% 4% 100%


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In the study it has been revealed that, 96% people think that FSIBL should introduce new products and 4% clients say No.

No 4%

Yes Y es 96%



Keeping Confidentiality Category

Yes Could be better No Total

No. of Respondents

Percentage of

12 13 0 25

respondents 48% 52% 0% 100%

Form the analysis it is revealed that 48% accepted that executives attitude as careful and conscious, 52% commented that is acceptable but could be better.


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No 0%

Yes

Could be better

48%

52%

Handling Complain : Category

Yes No Total

No. of Respondents

Percentage of

5 20 25


From the study it has revealed that by the Executives maximum 80% people are highly dissatisfied about process of handing complains, and the remaining 20% commented the process is acceptable.


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5, 20%

Yes No

20, 80%

Improving Promotional activities: activities: Category

Yes No Total

No. of Respondents

Percentage of

25 0 25


It has been revealed that 100% clients means that all people think Bank should improve promotional promotional activities. activities.


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0, 0%

Yes No

25, 100%


Page 39

Suggestion on promotional activities :

Category

No. of Respondents

Percentage of

16 9 0 0 25

respondents 64% 36% 0% 0% 100%

Direct marketing Evening Banking Public relation Personal selling Total

From the study it has been revealed that 64% people select Evening Banking as a promotional promotional tool for for the bank, 12% 12% choose choose Public relation, relation, 4% choose choose Personal Personal selling, and 20% choose Direct marketing.

0, 0% Direct marketing eting

0, 0% 9, 36%

Evening marketing Public blicmarketing rketing 16, 64% Personal selli selling



Opinion on Service quality : Category

Good

No. of Respondents

Percentage of

1

respondents 4%


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Acceptable Bad Total

14 10 25

56% 40% 100%

In the study we see that 4% people say that banks service quality is good, 56% people say acceptable, and 40% people are not satisfied.

1, 4%

10, 40%

Good Acceptable 14, 56%

Bad

Most Preferred things from Customer’s view point :

Category

Because of faster service Skilled Executives Interdepartmental efficiency Reasonable interest rate Total

No. of Respondents

Percentage of

0% 8 6 11 25

respondents 4% 32% 24% 44% 100%


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Why you have chosen trade services provided by FSIBL? During the time of answering the question 44% people identified reasonable Interest rate, 32% point on their skill Executives, Executives, 24% identified their Interdepartmenta Interdepartmentall efficiency, efficiency, and no one select Faster service.

0, 0% 8, 32%

Because of faster faster service Skilled killed executives cutives

11, 44%

Interdepartmental efficiency Reasonable onable int interes erest rate 6, 24%


Page 42

FSIBL Analysis section


Page 43

2.11 SWOT Analysis of FSIBL :

Ever Every y orga organi niza zati tion on is comp compos osed ed of some some inte intern rnal al stre streng ngth thss and and weaknesses and also has some external opportunities and threats. The foll follow owin ing g will will brie briefl fly y intr introd oduc ucee abou aboutt the the FSIB FSIB’s ’s stre streng ngth thss and and weaknesses, and external opportunities and threats as I have explored in the past one month.

Strengths :

♦

Superior quality.

♦

Satisfactory Business growth.

♦

Financial Strength.

♦

Efficient Management.

♦

Online Banking System.

♦

Attractive Deposit Schemes.

♦

Excellent working environment.

♦

Located at important commercial area.

♦

Doing Business with well-known corporate group and proprietors.

♦

Attractive Provisional profit rate.

♦

24 hours ATM service.

Weaknesses :

♦

Limited workforce.

♦

Short times’ banking experience of the bank.

♦

Absence of long term Investment.

♦

Small Market share in the banking Business.

♦

Average operational performance.


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♦

Moderate Asset quality.

♦

Limited delegation of power.

♦

Low paid —up capital.

Opportunities:

√

Governm Government ent of Bangla Bangladesh desh has render rendered ed its its full full suppor supportt to the banking sector for a sound financial stunt of the country, as it is becoming one of the vital sources of employment in the country now. Such government concern will facilitate and support the longterm vision for FSIBL.

√

Can increase the clients through ATM Banking.

√

Bank can improve its marketing and promotional activities.

√

Private Banks has become more reliable to the people than Public

Banks.

√

Increasing awareness of Islamic banking.

√

Can introduce new products.

√

Can increase the branches.

√

Can increase the Investment scheme.

√

Can Increase the Corporate Clients.

√

Have opportunities to increase market share.

√

By doing social welfare activities it can create a good impact on public mind.

√

Provide assistance to the small business organization.

√

Can Invest in SME and Agro base industry Investment.


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Threats :

♦

♦

There are many competitors in the market.

♦

Govt. pressures to reduce provisional profit rate.

♦

Govt. pressure for increasing SLR.

♦

Banking technologies are changed.

♦

Offering higher deposit rate by other Conventional Private Banks.

♦

Malpractice banking by other banks.

♦

Existence of huge branch of different banks.

♦

Govt. imposes tax & VAT on profit.

Govt. restriction on certain types of banking


Page 46

Chapter-06 Ending part


Page 47

Findings

There are some matters that I have found during the internship period which can be treated as problems of FSIBL. o

Most Most of the time time transa transacti ction on proble problem m occurre occurred d by the mid-le mid-level vel officials due the incompetence management system. They are some decision need to be taken pace frequently but management shows no adeq adequa uate te conc concern ern abou aboutt the the matt matter. er. As a resul resultt mid-l mid-lev evel el officials face problems during answering the clients.

o

There are some officers officers who draw salaries salaries at the end of the month month with / having a little contribution toward the organization. On the other hand there are officers who work hard for the best interest of the the orga organi niza zati tion on but but they they does does not not appr appris ised ed acco accordi rding ng to thei their r contribution. Also the payment scale is consecutively lower than othe otherr bank banks. s. Also Also have have a litt little le chang changee for for the the fres fresh h grad gradua uate te students.

o

Lack Lack of creati creative ve human human resourc resourcee is anothe anotherr proble problem m of FSIBL FSIBL.. FSIBL does not pursue an aggressive marketing policy. It does not expose itself to the public and like other banks. FSIBL does not have any digital signboard signboard and banner banner in the city area. As a result, people are not aware of the existence of FSIBL.

o

As other other banks banks have much more branches branches in all over the country country than FSIBL. So the business clients are mostly attracted by the othe otherr bank bankss like like Prim Primee Banks anks,, Easte astern rn Bank Bank,, Isla Islami micc Bank Bank Bangladesh, Dutch Bangla Bank Limited and others. It may create a major problem for the existence of the Bank.

o

The The human human resourc resourcee depart departmen mentt is is relat relative ively ly small small than than other other banks. The HRD is only confined in the Head Office and does not have any role in the branch Banking System.


Page 48

o

Some Some of the the emp emplo loye yees es are are not not comm commit itte ted d to Isla Islami mi Bank Bankin ing g Syst System em.. Thei Theirr Isla Islami mi Banki anking ng know knowle ledg dgee is very very poor poor and and diff differe erenc ncee betw betwee een n Isla Islami mi Bank Bankin ing g Syst System em & Conv Conven enti tiona onall Banking System is not clear to them.

• Recommendation

√

Needs to extent the branch network through the country and new branches in the other town and remote areas.

√

Adequate measure needs to be takes to reduce the system failure.

√

Working environment should be enriched.

√

Proper training and technology should be used to reduce the risk at the root level.

√

The The bank bank needs needs to make make reflec reflectiv tivee manage managemen mentt team team who who can make effective decision quickly.

√

Improvement in the customer service is needed.

√

Incorporate more financial product for the clients.

√

Take proper marketing and product promotion policy to let the general people know about this bank and its services.

√

Website of FSII3L is not rich enough to know about different things in detail. So the website need to be enriched and need to update time to time.

√

Behaviors with the clients made by the employees sometimes are not enough to satisfy the clients and hencç the bank should increase customer satisfaction level with the smiling face and other facility.

√

Bank should recruit those who are committed to Islami Banking System System.. Bank Bank also also should should conduc conductt proper proper traini training ng about about Islami Islami Banking System.


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Conclusion

From the learning period and experience point of view I can say that I have really enjoyed the Internship period at First Security Islami Bank Ltd. (FSIBL). From the 1st dayl was sure that this program period will help me a lot to learn about the banking system and wilt improve the possibility of my career in the present job market. Though during this short period of time is not enough to go through all the section of banking and gather adequate knowledge. But the fundamental information will help me in my future career. Info Inform rmat atio ion n and and Anal Analys ysis is is not not suff suffic icie ient nt beca because use it is diff diffic icul ultt to measure and express perfectly with in this short period of time. But it is a grea greatt oppo opport rtun unit ity y for for me to get get use use to the the oper operat atio ion n envi environ ronme ment nt of Commer Commercia ciall Banki Banking ng system system and organi organizat zation ional al worki working ng policy policy and management system. I have tried to give my best effort to incorporate the report with necessary and relevant information which I have gathered during this time period. This report basically describes objectives of the study, methodology of the study, scope of the study, limitation of the study, Foreign exchange performance, product analysis, customer satisfaction analysis.

There are several several limitat limitations ions to use the Financial Financial Statement Statement informati information on directly. But by the end of the report, I wish FSII3L should always try to improve their service level in every term.


Page 50

References : The available sources that helped me to prepare this report this source are mentioning below :

•

“Islami Banking : principle & practice”-MD Mubarak Hossain.

•

“Service Marketing”- Zithaml, Bitner, Dwayne.

•

www.fsiblbd.com

•

www.islamibank.com

•

www.eximbankbd.com

•

Previous year’s internship report.

•

Various types of materials of FSIBL.

Appendix Rajib Biswas ID 101215( Marketing)IIUC

Page 51

Questionnaire

Customer Profile

This survey is being conducted among customers of FSIBL Your honest opinions are valuable. Every information of this survey will be kept strictly confidential. Please circle the numbers you think are most appropriate and return the form. Your opinions and comments are important to us.

Name: Occupation: Telephone Number: Address : 1) Why have you chosen the services provided by FSIBL Which of the following aspects you will consider most ? o

Service quality

o

Profit rate

o

Product

o

Location

o

Technology

2) Do you think that the profit rates and charges are competitive than other banks ? o

o

o

Yes No Acceptable


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3) Do you feel that the product feature is explained to you properly ? o

Yes

o

Could be better

o

No

4) Io you think that more new product should be introduced? o

o

Yes No

5) Do you think that FSIBL Keep its confidentiality? o

Yes

o

Could be better

o

No

6) Do you think that your complain(s) are handled properly? o

o

Yes No

7) Do you think that FSIBL should improve their promotional activities? o

o

Yes No

8) If yes which one you will suggest? o

Direct Marketing

o

Evening Banking

o

Public relations

o

Personal selling

9) Remark your opinion on service quality of FSIBL ? o

Good

o

Acceptable

o

Bad

10) According to your opinion why FSIBL is much appreciable than any other banks? o

Because of faster service

o

Skilled Executives

o

Interdepartmental efficiency

o

Reasonable Interest rate


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Promotional Tools of FSIBL

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