“DIGITAL MARKETING IN RETAIL BANKINGIN RURAL AREAS”

A COMPARATIVE STUDY OF
PUBLIC AND PRIVATE SECTOR BANKS OF HIMACHAL PRADESH
A PROJECT REPORT
SUBMITTED TO THE

CDOE

HIMACHAL PRADESH UVIVERSITY

FOR THE DEGREE OF

MASTER OF COMMERCE

Supervised by: Submitted by:

Dr. Ashok Kumar Bansal Ujwal thakur

Roll No. - 35220021110

DEPARTMENT OF COMMERCE, CDOE

HIMACHAL PRADESH UNIVERSITY SUMMER HILL, SHIMLA

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 SUPERVISER’S CERTIFICATE

It is to certify that the work reported in the project report titled “DIGITAL
MARKETING IN RRETAIL BANKING IN RURAL AREAS - A
COMPARATIVE STUDY OF PUBLIC AND PRIVATE SECTOR
BANKS OF HIMACHAL PRADESH” submitted for the degree of
Master of Commerce by Mr.Ujwal thakur to the Department of
Commerce, CDOE Himachal Pradesh University, Shimla, Himachal
Pradesh is a bonafide record of his original work carried out by him under
my supervision. This work in parts or full has not been submitted anywhere
else for the award of any other degree or diploma.

(Supervisor)

Dr. Ashok Kumar Bansal

Department of Commerce
Date: 18/07/2024 Himachal Pradesh University
Place: Shimla Summer Hill, Shimla – 171005

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 UNDERTAKING

It is certified that the work submitted in the project report “Digital

marketing in retail banking in rural areas a comparative study of
private and public banks in Himachal Pradesh” for the award of the
degree of Master of Commerce to the faculty of Commerce, Himachal
Pradesh University, Shimla is my original work completed under the
guidance of my supervisor Dr. Ashok Kumar Bansal. No part of this
project report has been copied/plagiarized from any published/unpublished
work. The data and statistics presented here were collected for this study
during the course of the study. I undertake to take the full responsibility of
any act of copying/plagiarism found in this study.

(Ujwal Thakur)

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 ACKNOWLEDGEMENT

I express my deepest gratitude to my supervisor Dr. Ashok Kumar Bansal

and my department head Dr. Suresh Kumar for their invaluable guidance
and unwavering support throughout the course of this project on "Digital
Marketing in Retail Banking in Rural Areas in Himachal Pradesh." Their
profound knowledge, insightful suggestions, and consistent encouragement
were pivotal in shaping this research and bringing it to fruition. Dr. Bansal's
expertise and dedication to the field have been a constant source of
inspiration, and his mentorship has significantly enriched my academic
journey.

I extend my heartfelt thanks to the customers and employees of ICICI Bank

and SBI Bank in Himachal Pradesh for their willingness to participate in
this study. Their cooperation and candid responses provided crucial data
and insights that are central to the findings and conclusions of this
report.Special thanks to the managers of ICICI Bank and SBI Bank for
granting permission to conduct this study within their branches. Their
support in facilitating access to resources and information was crucial for
the depth and breadth of the research.

This project would not have been possible without proper guidance,
motivation and help from Dr. Suresh Kumar. I am profoundly grateful for
his time, effort, and support, which have been instrumental in the successful
completion of this project. A special thanks to my parents and friends.
Thank you all for your invaluable assistance and for making this research
a reality.

Ujwal thakur

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 TABLE OF CONTENT

SR. TOPIC PAGE

NO. NUMBER
1. Chapter- 1- INTRODUCTION 7 – 26
➢ Introduction to Digital Marketing
➢ Definition of Digital Marketing
➢ History and Evolution of Digital Marketing
➢ Awareness of Digital Marketing
➢ Problems of Digital Marketing
➢ Satisfaction from Digital Marketing
➢ Retail Banking and regulatory framework of
retail banking
➢ Private and Public banks
➢ Rural areas of Himachal Pradesh
2. Chapter-2 – LITERATURE REVIEW 27 – 31
3. Chapter-3 – RESEARCH METHODOLOGY 32 - 37
➢ Need of study

➢ Statement of problem

➢ Objective of the Study

➢ Hypothesis

➢ Scope of the Study

➢ Research Design and tools and techniques

➢ Data Collection

4. QUESTIONNAIRE 38 – 40

5. Chapter-4 – Data analysis and interpretation 41 – 59

6. Findings 61

7. Chapter-5 – Conclusion 62

8. References and suggestions 63

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 PREFACE

The integration of digital marketing into the retail banking sector has
revolutionized the way financial services are delivered, particularly in
urban areas. However, its impact in rural regions remains an area ripe for
exploration. This project report focuses on the application and potential of
digital marketing in retail banking within the rural areas of Himachal
Pradesh. The primary aim is to understand how digital marketing strategies
can enhance financial inclusion, improve customer engagement, and drive
growth for retail banks in these underserved areas.

This study not only highlights the transformative potential of digital

marketing in retail banking but also underscores its role in fostering
economic development and financial empowerment in rural communities.
The completion of this project would not have been possible without the
invaluable support and contributions of many individuals. I extend my
sincere gratitude to my academic advisors, the local banking professionals
who provided insights, and my family and friends for their unwavering
support.This report stands as a testament to the fusion of tradition and
technology, where the echoes of rural life resonate with the hum of digital
innovation. To accomplish the set objectives of project report, it is
organised into different parts that provides integrated and strategic
approach study of DIGITAL MARKETING CONCEPT.

In conclusion, this report seeks to illuminate the path forward for retail
banking in rural Himachal Pradesh, showcasing the potential for digital
marketing to drive meaningful change and development.

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 CHAPTER -1

INTRODUCTION

‘Digital marketing’ is a multifaceted approach to promoting products, services, and

brands through electronic media. Unlike traditional marketing, which uses print, radio,
and television, digital marketing leverages channels such as social media, search
engines, email, and websites to reach a broader audience. Its versatility allows for
targeted and personalized marketing strategies that can be easily adjusted based on real-
time data and consumer behavior insights. This ability to measure and analyse
marketing efforts provides businesses with valuable information to refine their
strategies and maximize their return on investment.

‘Digital marketing’ encompasses a variety of techniques and tools designed to enhance

online visibility and engagement. Search Engine Optimization (SEO) improves website
rankings on search engine results pages, making it easier for potential customers to find
businesses. Pay-Per-Click (PPC) advertising drives immediate traffic to websites
through paid ads, while content marketing focuses on creating valuable and relevant
content to attract and retain a clearly defined audience. Social media marketing
leverages platforms like Face book, Instagram, and Twitter to foster direct interaction
with consumers, build brand loyalty, and drive conversions.

‘Digital marketing’ is crucial in today's technology-driven world, where consumers

increasingly rely on the internet to make purchasing decisions. It allows businesses of
all sizes to compete on a more level playing field by providing cost-effective marketing
solutions. Small businesses can reach a global audience without the need for significant
financial investment, while large enterprises can scale their marketing efforts and
integrate advanced technologies such as artificial intelligence and machine learning. As
digital landscapes evolve, staying up-to-date with the latest trends and innovations in
digital marketing is essential for businesses to remain competitive and effectively
connect with their target audiences.

Definition:“Digital marketing”, refers to the use of digital channels, platforms, and

technologies to promote products, services, or brands to consumers. It encompasses a
wide range of online marketing activities and strategies, including search engine
optimization (SEO) to improve website visibility in search results, content marketing to

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attract and engage audiences through valuable content, and social media marketing to
interact with customers on platforms like Face book and Instagram.

In today's world, digital marketing is indispensable for businesses seeking growth and
relevance. It enables precise targeting; real-time engagement, and measurable results,
ensuring brands stay competitive and connected with their audiences. Embracing digital
strategies is crucial for sustainable success in an increasingly online-driven
marketplace.

“History and Evolution of Digital Marketing”

Digital marketing's evolution began in the 1990s with the advent of the internet and Web
1.0. The first clickable banner ad appeared in 1994, leading to the development of online
advertising. Google launched in 1998, revolutionizing search engine marketing,
followed by the rise of social media platforms like Face book in 2004. By 2019, global
digital ad spends surpassed $333 billion, overtaking traditional advertising. The
introduction of smart phones and mobile apps further expanded digital marketing's
reach. As of 2021, over 4.6 billion people were using the internet, highlighting the vast
audience accessible through digital marketing channels.

Digital marketing has undergone significant evolution, particularly with the advent of
the modern world, characterized by rapid technological advancements and changing
consumer behaviors. Here's a concise overview of its progression:

1990s: The Birth of Digital Marketing

• 1990s: The internet's commercialization begins. The first clickable banner ad

appears in 1994, initiating online advertising.
• 1996: The term "digital marketing" is coined, reflecting the growing importance
of online channels.

Early 2000s: The Rise of Search and Social Media

• 1998: Google is founded, revolutionizing search engine marketing (SEM) and

search engine optimization (SEO).
• 2000: The first Google Ad Words campaign launches, introducing pay-per-click
(PPC) advertising.

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 • 2003-2004: Social media platforms like LinkedIn (2003) and Facebook (2004)
emerge, changing how brands engage with audiences.

2010s: Mobile and Content Marketing Take Centre Stage

• 2010: Instagram launches, enhancing visual marketing strategies.

• 2010s: Smart phones and mobile apps proliferate, making mobile marketing
crucial. In 2016, mobile internet usage surpasses desktop usage.
• 2011: Content marketing gains momentum with brands focusing on creating
valuable content to attract and engage customers.

Late 2010s to Early 2020s: Personalization and Data-Driven Marketing

• 2013: Programmatic advertising, using AI to automate ad buying, becomes

mainstream.
• 2018: General Data Protection Regulation (GDPR) comes into effect,
emphasizing data privacy and affecting digital marketing practices.
• 2019: Global digital ad spend exceeds $333 billion, surpassing traditional
advertising for the first time.

Modern Day: AI, Influencers, and Omni channel Strategies

• 2020s: AI and machine learning enhance personalization and predictive

analytics in marketing.
• 2020-2021: The COVID-19 pandemic accelerates digital transformation, with
e-commerce and online interactions becoming dominant.
• 2022: Influencer marketing grows, with brands leveraging social media
influencers to reach targeted audiences.
• 2023: Over 4.9 billion people are online, highlighting the vast potential of digital
marketing.

Present and Future: Emerging Technologies and Trends

• 2024: Continued growth in voice search, virtual reality (VR), and augmented
reality (AR) marketing.

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 • Beyond: Integration of block chain for transparency in digital advertising and
further advancements in AI-driven marketing technologies.

Digital marketing's evolution reflects the continuous adaptation to new technologies and
changing consumer expectations, making it a dynamic and essential component of
modern business strategies.

5DS OF DIGITAL MARKETING

According to Homer, M. (2021) the 5Ds of Digital Marketing is being illustrated as

follows:

1) Digital devices – The first is Digital devices, usually experienced by

theaudiences, as they could interact with the business using digital devicessuch
as smart phones, tablets, TV, gaming devices, etc.
2) Digital platforms – The significant media or services of digital marketing are
Facebook, Instagram, Twitter, Google, YouTube, LinkedIn, etc.
3) Digital media – Digital marketing has many paid, owned, and earned
communications ways, reaching and engaging the target audiences, including
promotion, search engines, email, messaging, social networks, etc.
4) Digital data – the insight businesses collect profiles and data of the audiences,
protecting data is a significant concern.
5) Digital technology – marketing technology such as mobile applications and
websites are used to have an interactive connection.

AWARENESS OF
DIGITAL MAEKETING
Digital marketing awareness is
essential in today’s business
landscape. Understanding the
basics of online advertising,
social media marketing, and
searchengine optimization
empowers businesses to reach

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Search engine optimization empowers businesses to reachbroader audiences. Awareness
helps companies recognize the importance of engaging content and targeted strategies
to attract potential customers. By building a solid foundation in digital marketing,
businesses can enhance their online presence, improve brand visibility, and drive growth
through effective digital campaigns.

Digital Marketing Awareness: Tools and Techniques

Digital marketing awareness extends to the tools and techniques that drive successful
campaigns. Familiarity with analytics platforms, email marketing services, and content
management systems is crucial. Knowing how to leverage these tools enables
businesses to track performance, understand customer behavior, and optimize their
strategies. Staying informed about the latest digital marketing trends and technologies
ensures that businesses remain competitive and can adapt to the ever-changing digital
landscape.

Digital Marketing Awareness: Target Audience

Digital marketing awareness also involves understanding your target audience.

Knowing who your customers are, what they need, and how they interact online is vital
for crafting effective marketing messages. Awareness helps businesses segment their
audience, personalize their marketing efforts, and deliver relevant content that
resonates. This targeted approach not only enhances customer engagement but also
boosts conversion rates, ensuring a higher return on investment for digital marketing
initiatives.

The Importance of Consistent Branding

Consistency in branding across all digital platforms is crucial for maintaining a strong
online identity. A cohesive brand image helps build trust and recognition among
consumers. It’s important for businesses to ensure that their visual elements, messaging,
and tone remain consistent across social media, websites, and email campaigns. This
consistency reinforces brand identity, making it easier for customers to recognize and
connect with the brand, thereby fostering loyalty and long-term relationships.

Measuring and Analysing Success

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Measuring and analysing the success of digital marketing efforts is key to continuous
improvement. By utilizing analytics tools, businesses can gain insights into what
strategies are working and where there is room for improvement. Regularly reviewing
metrics such as website traffic, click-through rates, and conversion rates allows
companies to adjust their tactics and enhance their marketing performance. This data-
driven approach ensures that digital marketing campaigns are effective and aligned with
business goals.

Digital marketing success can be measured and analysed using key performance
indicators (KPIs), which are quantifiable metrics. Some metrics to consider include:

Conversion rate
Traffic by source Bounce Rate
It helps you understand
It helps you to understand It helps you understand
how to make your website
your target audience and your digital marketing
more effective at
identify the areas where success rate and the end-
converting leads into
you are underperforming. user experince.
sales.

Cost Per Click Customer Lifetime Value

It helps you to understand It helps you understand
your digital market your digital marketing
efficiency by calculating ROI by measuring how
how much your traffic long it takes to reoup the
costs. investment.

PROBLEMS OF DIGITAL MARKETING

Digital marketing, despite its immense potential, faces numerous challenges that can
hinder its effectiveness. From navigating intense competition to adapting to ever-
changing algorithms, marketers must address various issues to succeed. The following
are some of the points that highlight the problems of digital marketing:

1. Intense Competition: The digital space is saturated with brands, making it

challenging for businesses to differentiate themselves and capture audience
attention amidst a plethora of similar offerings.

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2. Ad Fatigue: Consumers are bombarded with ads, leading to desensitization and
decreased engagement. This makes it harder for marketers to achieve desired
responses from their advertising efforts.
3. Algorithm Changes: Frequent updates to algorithms by search engines and
social media platforms can disrupt established marketing strategies, requiring
constant adjustments to maintain visibility and effectiveness.
4. Data Privacy Concerns: Regulations like GDPR and CCPA impose strict
guidelines on data collection and usage, complicating marketing efforts and
necessitating robust compliance measures to avoid penalties.
5. Ad Blockers: Increasing use of ad blockers reduces the visibility of online ads,
challenging marketers to find alternative methods to reach and engage their
target audiences effectively.
6. Content Saturation: The abundance of content online makes it difficult for any
single piece to stand out, requiring exceptional creativity and strategy to capture
and retain audience interest.
7. Keeping Up with Trends: Rapid changes in digital marketing trends demand
continuous learning and adaptation, which can be resource-intensive and
challenging for businesses to keep pace with.
8. Measuring ROI: Accurately measuring the return on investment for digital
marketing campaigns is complex, often involving sophisticated analytics to
track and attribute conversions across multiple channels.
9. Managing Multiple Channels: Coordinating a cohesive strategy across various
digital platforms, each with its own nuances and best practices can be
overwhelming and time-consuming for marketers.
10. Budget Constraints: Limited budgets can restrict the scope and scale of digital
marketing campaigns, necessitating careful allocation of resources to maximize
impact and reach.
11. Targeting the Right Audience: Identifying and reaching the ideal audience is
crucial but challenging, requiring detailed demographic, psychographic, and
behavioural insights to tailor marketing efforts effectively.
12. Ensuring Mobile Compatibility: With increasing mobile device usage,
ensuring that all digital content is optimized for mobile viewing is essential to
maintain user engagement and satisfaction.

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13. Maintaining Engagement: Sustaining audience interest over time demands a
steady stream of high-quality, relevant content, which can be difficult to produce
consistently without significant investment.
14. Handling Negative Feedback: Publicly addressing negative comments and
reviews requires careful management to protect brand reputation while
demonstrating responsiveness and a commitment to customer satisfaction.
15. Technology Overload: The vast array of digital marketing tools and platforms
available can be overwhelming, requiring significant time and expertise to
master and integrate effectively into marketing strategies.

In conclusion, the problems of digital marketing underscore the complexity and

dynamism of today's online landscape. From intense competition and ad fatigue to
navigating algorithm changes and data privacy concerns, marketers face a myriad
of challenges. Budget constraints, content saturation, and the need to target the right
audience further compound these difficulties. Moreover, managing multiple
channels, measuring ROI accurately, and handling negative feedback require
strategic expertise and continuous adaptation. Despite these obstacles, mastering
digital marketing is crucial for businesses to thrive in the digital age, highlighting
the importance of innovative solutions and agile strategies to overcome these
challenges effectively.

SATISFACTION FROM DIGITAL MARKETINHG

The satisfaction derived from digital marketing stems from its ability to offer
measurable results, precise targeting, and enhanced brand visibility. By leveraging
digital channels, businesses can reach their target audience with personalized
messages, leading to increased engagement and conversions.Digital marketing
empowers businesses to build meaningful relationships with their audience through
personalized and targeted communication strategies, fostering long-term customer
loyalty and satisfaction. Additionally, digital marketing allows for real-time
optimization based on data analytics, enabling marketers to refine their strategies
for maximum effectiveness. The cost-effectiveness and scalability of digital
marketing further contribute to satisfaction, as it provides opportunities for
businesses of all sizes to compete on a level playing field. Ultimately, the ability to

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connect with consumers in meaningful ways and drive tangible results fosters
satisfaction and long-term success in digital marketing endeavours.

"Transforming banking with tailored digital experiences, retail banks are redefining
customer satisfaction one click at a time. Seamless transactions and personalized
services create a banking experience that fits seamlessly into modern life. With
digital marketing, retail banks are not just meeting expectations—they're exceeding
them. Enhanced security and real-time updates ensure peace of mind, making every
interaction a step towards financial empowerment."

The following data reveals how satisfaction is derived from Digital Marketing in the
banking sector by the consumers:

• Digital marketing offers clear metrics and

analytics to measure the effectiveness of
Measurbale Results campaigns, providing insights into ROI and
performance.

• Compared to traditional marketing methods,

Cost Effectiveness digital marketing often offers more cost
effective solutions, allowing businesses to
achieve significant results within their buget.

• Through digital channels, brands can increase

Enhanced Brand their online presence and visibility, reaching a
Visibility wider audience and strengthening brand
awareness.

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 • With the internet's global reach, digital
marketing enables businesses to expand their
Global Reach market reach beyond geographical
boundaries, accessing a global audience.

• Interactive digital plateforms facilitate two-

Increased Engangement way communication between businesses and
consumers fostering greater engangement.

• Digital marketing offers ample opportunities

for creative expression, allowing businessses
Creative Freedom to experiment with various formats and
content types to capture audience attention.

• Digital marekting tools provide insights into

cutomer behaviour helping banks to tailor
Data Driven Insights thirt services and markering services and
banks can anticipate customer needs using
data anlysis.

• Digital marketing platforms are accessible to

businesses of all types,democratizing
Accessibility marketing opportunities and leveling the
playing field for small business and startups.

• Through iteratuve testing and optimization,

digital marketing encourages continous
Continous Improvement improvement, enabling businesses to refine
thier strategies for better results over time.

• Digital marketing compaigns can be quickly

Flexibility and adjusted and optimized based on real time data
Adaptability and market trends, allowing for greater
flexibility and adaptability.

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In conclusion, digital marketing offers a multitude of avenues for businesses to
achieve satisfaction through measurable results, precise targeting, and enhanced
brand visibility. Its cost-effectiveness, global reach, and flexibility empower
businesses of all sizes to compete effectively in the digital landscape. By fostering
increased engagement, creative freedom, and continuous improvement, digital
marketing facilitates the cultivation of meaningful relationships with customers,
ultimately leading to long-term satisfaction and success. As businesses continue to
harness the power of digital marketing, they can look forward to further
advancements and innovations that will drive even greater levels of satisfaction in
the future.

RETAIL BANKING

‘Retail banking’, the provision of financial services to individuals and small

businesses, forms the backbone of the banking industry. With a focus on serving the
everyday financial needs of consumers, retail banking encompasses a wide range of
services, including savings and checking accounts, loans, mortgages, and credit
cards. In today's dynamic financial landscape, retail banking plays a pivotal role in
facilitating economic growth and empowering individuals to achieve their financial
goals. By offering accessible and convenient banking solutions, retail banks strive
to build lasting relationships with customers while delivering value and
convenience.

Definition of Retail Banking: “Retail banking refers to the consumer-oriented

services offered bycommercial banks. These services include checking and savings
accounts,mortgages and various types of loans and investment services relating to
retirementand educational planning.”

“It is popularly perceived to be mass-market banking where individualcustomers

typically use banks for services such as savings and current accounts,mortgages,
loans, debit cards, credit cards, depository services, fixed deposits,investment
advisory services, etc.

Furthermore, retail banking is distinguished by its customer-centric approach, where

personalized service and tailored financial solutions are paramount. Retail banks
seek to understand the unique needs and preferences of each customer, offering

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personalized advice and recommendations to help them achieve their financial
objectives. By fostering trust and building strong relationships, retail banks aim to
become trusted financial partners that customers can rely on throughout their
financial journey, reinforcing the integral role of retail banking in today's financial
ecosystem.

Digital Marketing Strategies in Retail

Search Engine Optimization (SEO)

SEO involves optimizing a website to rank higher in search engine results pages
(SERPs), thereby increasing organic (non-paid) traffic. For retail businesses,
effective SEO can lead to increased visibility and more customers finding their
products.

Content Marketing

Content marketing focuses on creating valuable, relevant content to attract and

engage a target audience. This can include blog posts, videos, info graphics, and
more. Retailers use content marketing to build brand awareness and establish
authority in their industry.

Social Media Marketing

Social media marketing leverages platforms like Facebook, Instagram, Twitter, and
LinkedIn to promote products and engage with customers. Retailers use social
media to build communities, share content, and run targeted ad campaigns.

Email Marketing

Email marketing involves sending targeted messages to a group of subscribers. For

retailers, this can include promotional offers, newsletters, and personalized
recommendations, helping to drive sales and foster customer loyalty.

Pay-Per-Click Advertising (PPC)

PPC advertising allows retailers to place ads on search engines and other platforms,
paying a fee each time the ad is clicked. This can drive immediate traffic to a
retailer's website and increase conversions.

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Affiliate Marketing

Affiliate marketing involves partnering with other businesses or individuals

(affiliates) who promote a retailer's products in exchange for a commission on sales
generated through their referrals.

Influencer Marketing

Influencer marketing leverages individuals with a large social media following to

promote products. Retailers collaborate with influencers to reach a wider audience
and build trust with potential customers.

SCOPE OF RETAIL BANKING

The scope of retail banking encompasses a wide array of financial services and
activities designed to meet the needs of individual consumers and small businesses.
Here are the main areas that illustrate the extensive scope of retail banking:

1. Deposit Accounts:

• Savings Accounts: Offer interest on deposited funds while providing easy

access.
• Checking Accounts: Provide transactional convenience for everyday
financial activities.
• Certificates of Deposit (CDs): Fixed-term deposits with higher interest rates.

2. Credit and Lending Services:

• Personal Loans: Unsecured loans for personal expenses, including home

improvement, medical bills, or vacations.
• Mortgages: Loans for purchasing real estate, including home loans and
refinancing options.
• Auto Loans: Financing for purchasing vehicles.
• Credit Cards: Revolving credit facilities with various benefits and rewards.

3. Investment Services:

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 • Mutual Funds: Investment options allowing customers to pool money to
invest in diversified portfolios.
• Retirement Accounts: Products like IRAs (Individual Retirement Accounts)
for long-term savings.
• Brokerage Services: Buying and selling of securities.

4. Insurance Products:

• Life Insurance: Policies providing financial protection to beneficiaries.

• Health Insurance: Coverage for medical expenses.
• Property and Casualty Insurance: Protection for homes, vehicles, and other
personal assets.

5. Wealth Management and Advisory Services:

• Financial Planning: Personalized advice on budgeting, saving, and investing.

• Estate Planning: Assistance in managing and transferring wealth.

6. Digital and Online Banking Services:

• Online Banking: Access to banking services via the internet.

• Mobile Banking: Banking services through smart phone apps.
• ATMs and Self-service Kiosks: Automated services for cash withdrawals,
deposits, and other transactions.

7. Payment and Money Transfer Services:

• Bill Payment: Facilities to pay utility bills and other expenses.

• Money Transfers: Domestic and international transfer services, including
remittances.
• Automated Bill Payment: Allows customers to set up automatic payments
for regular bills, ensuring timely payments and avoiding late fees.

8. Customer Relationship Management:

• Loyalty Programs: Rewards and incentives for customer retention.

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 • Personalized Communication: Sending targeted messages, offers, and
advice that align with the specific needs and preferences of each customer.
• Relationship Managers: Assigning dedicated relationship managers to high-
value customers to provide personalized service and proactive financial
advice.

REGULATORY FRAMEWORK OF RETAIL BANKING

The Reserve Bank of India Act, 1934 (the RBI Act) and the Banking Regulation
Act, 1949 (the BR Act) are the primary pieces of legislation governing the banking
sector in India

How has Digital Marketing in Retail Banking affected Rural India?

The greater accessibility of the Internet and smart phones has led to an increase in retail
banking services in rural India. The government, NBFCs, and banks have launched
numerous financial inclusion efforts to handle low-value transactions in rural India. This
has led to the development of affordable, effective financial products and methods, such
as the Kisan Credit Card or self-help organizations.

Digital banking is becoming more popular with consumers. Use of mobile banking as
the primary method of account access, for example, increased from 15.1 percent of
consumers in 2017 to 48 percent in 2023.Data is a bank’s greatest asset. But it is human
creativity and innovation that will design new products and business models in which
customers will be engaged, and AI can drive the value.

Retail banks offer a variety of products and services to retail customers. When people
think about a bank, they usually think about a retail bank. In every city across the
country, there are bank branches that make banking services accessible to the general
public.

The regulatory framework of retail banking is essential to ensure the stability, integrity,
and transparency of the financial system. It encompasses a variety of laws, regulations,
and guidelines that govern the operations of retail banks. These regulations aim to
protect consumers, maintain financial stability, and prevent financial crimes. Here are
the key components of the regulatory framework in retail banking:

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Consumer protection
•The truth in Lending Act requires clear disclosure of loan terms and costs to borrowers. The
fare credit reporting act ensures accuracy and privacy of information in consumer credit
reports.The fare debt collection practises act prohibits abusive practises in the collection of
consumer debts.

Data privacy and security

•The general data protection regulation regulates data protection and privacy in the European
Union The California consumer privacy act enhances privacy rights and consumer
protection for residents of California Graham Leach, Bliley Act, requires financial
institutions to explain their information sharing practises and safeguards sensitive data.

Deposit insurance
•The federal deposit insurance corporation provides deposit insurance to protect depositors in
the event of bank failure. The deposit guarantee schemes, directive ensures that depositors
in the eu. Are protected up to a certain amount.

Capital requirements
•Minimum capital requirements ensured that banks have enough capital to absorb losses and
protect depositors. The leverage ratio limits the amount of leverage a bank can take on to
maintain stability. Capital requirements in retail banking is structured by BAsel Accords
and supplemented by national regulations.

Anti money laundering and counter terrorist financing

•The bank secrecy act mandates financial institutions to keep records and file reports on
potential money laundering activities. The usa Patriot Act strengthens aml measures to
detect and prevent terrorist financing. It involves multifaceted approach encompassing
ribust regulatory framework, effective KYC, etc

Prudential regulation
•Basel III is an international legatory framework for banks focusing on capital adequacy,
stress testing and market liquidity risk. The Dodd Frank Wall St Reform and consumer
Protection Act enhances regulation, supervision and resolution of financial institutions. It
ensures stabilty and resilience of financial institutions through robust capital and liquidity
requirements .

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In conclusion, the regulatory framework for retail banking is designed to ensure
financial stability, protect consumers, and promote confidence in the financial system.

PUBLIC AND PRIVATE BANKS

Basis of Difference Private Banks Public Banks

Ownership Owned by private Owned and operated by

individuals or the government
corporations
Capital source Primarily private capital Funded by government
capital and public funds
Customer service Generally offer Service can be less
personalized and high- personalized and slower
quality service
Decision making speed Faster decision-making Slower decision-making
and approvals due to bureaucratic
processes
Profit motive Primarily profit-driven Serve public interest
alongside profit motive

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 Credit risk Higher tolerance for Lower risk tolerance due
riskier credit to public accountability
Interest rates Often higher interest rates Generally offer lower
on loans interest rates on loans
Employees Higher salary packages Standardized pay scales
compensation and incentives and benefits
Technological Adoption Rapid adoption of new Slower adoption of
technology technology
Product Variety Wide variety of innovative More standardized and
financial products fewer innovative products
Branch Network Fewer branches, typically Extensive branch network,
in urban areas including rural areas
Government Support Limited direct support Significant support from
from government government
Regulatory Oversight Subject to regulations but Heavily regulated and
fewer constraints monitored by government
Service Hours More flexible service Traditional banking hours
hours, sometimes 24/7
Market Focus Target affluent individuals Cater to all segments of the
and businesses population

RURAL AREAS OF HIMACHAL PRADESH

Himachal Pradesh, a picturesque state nestled in the northern part of India, is renowned
for its stunning landscapes, rich cultural heritage, and serene rural life. The rural areas
of Himachal Pradesh are characterized by their mountainous terrain, verdant valleys,
and traditional villages that embody the essence of Himalayan culture. These regions
are predominantly agrarian, with agriculture and horticulture serving as the mainstays
of the rural economy. The state's fertile valleys and favourable climate facilitate the
cultivation of various crops and fruits, particularly apples, which are a major economic
driver.

Rural Himachal Pradesh is not only significant for its agricultural output but also for its
cultural vibrancy. The villages here are hubs of traditional crafts, music, dance, and

24
festivals that reflect a deep-rooted cultural legacy. Despite the advancements in
technology and infrastructure in urban centres, rural areas often face challenges such as
limited connectivity, healthcare, and education facilities. However, these regions are
slowly embracing change, with initiatives aimed at improving digital literacy,
infrastructure, and sustainable development.

Tourism also plays a pivotal role, with rural home stays and eco-tourism gaining
popularity among travellers seeking authentic experiences. As Himachal Pradesh
balances tradition with modernization, its rural areas remain integral to the state's
identity, offering a unique blend of natural beauty and cultural richness.

Digital marketing is experiencing significant growth in Himachal Pradesh, driven by

the increasing adoption of online platforms by businesses and the government's push
for digital initiatives.

The Himachal Pradesh government has been recognized for its digital transformation
efforts, winning awards for initiatives like the Mukhya Mantri Seva Sankalp Helpline-
1100 and the HimParivar Project. These projects have streamlined public grievance
redressed and integrated state social registry, respectively, showcasing the state's
commitment to leveraging technology for governance and public services(The News
Himachal).

The state hosts several digital marketing agencies that offer a range of services,
including SEO, social media marketing, content marketing, and web development.
Prominent agencies such as Digital Webdia, Prime Kreation, and Digital Scarlett are
helping local businesses enhance their online presence and reach wider audiences
(safalta).

SCOPE OF DIGIAL MARKETING IN THE DISTRICTS OF HIMACHAL

PRADESH

• Shimla: The capital city has seen significant growth in digital marketing for retail
banking, with banks focusing on online services, mobile banking apps, and digital
campaigns to attract customers. The presence of digital marketing agencies like Snow
Hill Digital supports this growth by providing specialized services to local banks
(Shortlist) (Digital Scholar).

25
• Kangra: Retail banks in Kangra are leveraging social media marketing and search
engine optimization (SEO) to enhance their online presence. They are also investing in
customer relationship management (CRM) tools to improve service delivery and
customer satisfaction.

• Solan: Digital marketing efforts in Solan include the use of pay-per-click (PPC)
advertising and content marketing to promote banking products and services. Banks are
also adopting innovative web design and development strategies to make their online
platforms more user-friendly (Digital Scholar).

• Mandi: In Mandi, retail banks are focusing on email marketing and mobile marketing
strategies to reach a broader audience. They are also using data analytics to better
understand customer behavior and tailor their marketing campaigns accordingly.

• Hamirpur: The banks in Hamirpur are emphasizing SEO and social media marketing
to increase visibility. Digital marketing agencies like Digital Webdia and We Back
Technologies play a crucial role in supporting these efforts (Digital Scholar).

• Bilaspur: Digital marketing in Bilaspur's retail banking sector includes the integration
of advanced analytics tools and data-driven marketing strategies to enhance campaign
effectiveness and customer engagement.

• Una: Retail banks in Una are utilizing digital marketing channels like social media,
SEO, and PPC to attract new customers and retain existing ones.

• Kullu: In Kullu, banks are investing in content marketing and influencer marketing to
promote their services. They are also enhancing their digital platforms to offer better
user experiences.

• Chamba: The digital marketing strategies in Chamba include a mix of SEO, social
media marketing, and content creation to build brand awareness and drive customer
engagement.

• Sirmaur: Retail banks in Sirmaur are adopting comprehensive digital marketing

strategies that include website optimization, email marketing, and social media
campaigns to reach their target audience effectively.

• Lahauland Spiti: Given the remote nature of Lahaul and Spiti, digital marketing efforts
are focused on mobile marketing and social media to ensure wide reach and accessibility
of banking services.

26
• Kinnaur: Similar to Lahaul and Spiti, banks in Kinnaur rely heavily on digital
platforms, including mobile apps and social media, to connect with customers and
provide seamless banking services.

DIGITAL SERVICE PROVIDERS

Here is the example of few districts where digital marketing operates in retail banking.

SHIMLA LAHAUL AND SOLAN MANDI

SPITI
HPSCB: Provides HPSCB: Provides State Bank Of Punjab national
services through digital banking India(SBI): Offers Bank (PNB):
their mobile services, primarily YONO app for Provides extensive
banking app, through mobiles seamless banking digital banking
Himpesa and other apps due to services including
digital platforms region’s remote mobile apps and
like BHIM UPI, nature. net banking.
Gpay and Paytm.

Retail banks across Himachal Pradesh are leveraging digital service providers to
enhance their customer service and digital infrastructure, enabling seamless
banking experiences through mobile and internet banking solutions. These efforts
are supported by a range of local and national digital platforms(HFS Research)
(HPSCB Bank).

CHALLENGES AND OPPORTUNITIES

Implementing digital marketing in retail banking in rural Himachal Pradesh presents

both challenges and opportunities:

Challenges:

Infrastructure Limitations: Poor connectivity and infrastructure can hinder the reach
and effectiveness of digital marketing campaigns.

Digital Literacy: Low levels of digital literacy can be a barrier to the adoption of digital
banking services.

Cultural Resistance: Traditional banking habits and mistrust of digital transactions can
impede the acceptance of digital marketing efforts.

Opportunities:

Expanding Connectivity: Improving telecommunication infrastructure offers a

significant opportunity to reach more rural customers.

Government Initiatives: Government programs aimed at promoting digital literacy

and financial inclusion can support the adoption of digital banking.

27
Innovative Marketing: Tailoring digital marketing strategies to the unique needs and
preferences of rural populations can enhance engagement and adoption.

Conclusion

Understanding the rural areas of Himachal Pradesh is essential for devising effective
digital marketing strategies in retail banking. The demographic diversity, economic
activities, infrastructural development, and socio-cultural factors provide a complex yet
promising landscape for digital marketing initiatives. By addressing the challenges and
leveraging the opportunities, retail banks can significantly enhance their reach and
impact in the rural regions of Himachal Pradesh.

28
 CHAPTER -2

REVIEW OF LITERATURE

In this section effort has been made to explore the research work of different researchers
and scholars who carried out their research in similar topics. To explore the studies or
literature available University Library and Online resources were accessed. Some
important studies which are relevant to the present study have been discussed below:

1. Sharma Shivani (2023) conducted a research on “Impact of digital marketing on

consumer’s attitude and buying behaviour - A study of consumer behaviour in
organised retail banking sector in Punjab and Himachal Pradesh”. The main
objective of the study isthe importance of getting knowledge regarding attitudes of the
consumers and what are the factors that affect the formation of attitude of a consumer
regarding digital marketing.Measures of central tendency like mean, standard deviation,
coefficient ofvariation (C.V.) were used tostudy the nature and distribution of different
variables inthe present study.The study reveals that-although the digital marketing
concept is one of the growing marketing strategies butthe scope of digital marketing is
still in its infancy and it is in its adoption stage in India, as theinternet penetration rate
within India is low as compare to other developing countries of theworld.

2. Mahajan H.V. (2023) conducted a research on the topic “Digital Marketing

Effectiveness in Banking and Insurance Sector a Study with Special Reference to
Jalgaon District”.The topic is relatively crucial as Digital Marketing plays a vital role
in today'sbusinesses being user-friendly. The researchers tried to explore the
DigitalMarketing Effectiveness in a specific Banking and Insurance sector in
JalgaonDistrict. The main objective was to know the impact of digital marketing on the
banking & insurance sector and to evaluate the effectiveness of digital marketing over
traditional marketing techniques. There is no relationship between opinion of Consumer
of banking andinsurance sector that Digital Marketing Increases customer Satisfaction&
Brand Loyalty and residential location of consumer. The conclusion that was derived
from the study was that even when Digital Marketing has numerous benefits, issues are
also seen using it. The Customers are having trust issuesrelated to Digital Marketing,
another concern encountered by theBanking and insurance sector.

29
3. Paul John (2022)conducteda research on “Marketing strategies for the
implementation of digital marketing with reference to banking sector”. The main
objective of the study is an attempt to understand and evaluate level of
DigitalPenetration, and analysis of the factors influencing the adoption of Digital
Technologies andits acceptance in select Sectors likebanking which deals with Financial
Technologies(FinTech). The total number of respondents counts for 686, fromwhom the
primary data is collected by administering the questionnaire. The study reveals -the
emergence of Digital technologies in Banking is certain but the rate ofDigital
penetration varies based on different factors. The literature has showcasedvarious
factors that influence the acceptance of Digital Technologies across theGlobe.The
conclusion of the study was the respondents are very innovative in augmenting the
Digital Technologiesin Banking Sector. The study has revealed an encouraging aspect
for the serviceproviders to acknowledge the optimistic approach of the respondents
towards DigitalTechnologies. The present level of adoption can be analysed by testing
the kind offinancial inclusions initiated and the response of the customers towards
theseinclusions.

4. Sharma Ravi (2021) conducted “A study of consumer behavior towards

Digitalization of banking industry with Specific reference to ICICI bank”. The
main objective of the study was to have a deeper understanding of how the Private
banking industry differ in their internal approach working with digitalization, along with
the future perspective of digitalization in the banking industry and how consumers are
reacting for the same newline. In this research Researcher has used Exploratory
Research along with Descriptive Research.When there are no earlier studies or very few
refer to an exploratory design is framed forresearch problem.The usage of latest
technology has transformed the entire look of the banking sectorsuch as ICICI Bank
and other banks as well. The usage of technology has helped inthe development and
amalgamation of finance markets all around the world. Thecustomer’s desire for latest
goods and varying delivery channel are on rise. Banks areexperiencing immense
pressure to deliver quality products in today and tomorrow.

5. Sonia (2021) conducted a research on “Marketing of banking services in India a

case study of state bank of India”. The main objective of the research looks into the
detailed overview of State Bank of India and the marketingstrategies of State Bank of
India. This study summarizes- The marketing strategies byState Bank of India and the

30
whole story revolves around what State Bank of India isdoing today in the age of
digitalization and how it tries to achieve customer satisfactionby maintaining its
position of a leader in the arena of banking.The objectives were setas to assess the
relationship of State Bank of India with customers, analysing promotionalactivities and
their impact on turnover & profitability The study concludes that the digital products
and services provided by the bank are highlysatisfactory but their users are less because
a major part of the population of India doesnot live in metropolitans and they do not
avail these facilities mostly because of noinfrastructures in far villages till date and also
the education level of population is not thatadvanced that they understand the modern
day digital products and services.In total it can be said that IT enabled banking has got
a new dimension under the StateBank of India digital policy and a try is made to touch
the farthest in the echelon so thatwhole nation can be benefitted.

6. Siyota Himalay (2020) conducted a research on “Exploring the impact of digital

banking technology on the retail banking consumer of Rajasthan”. The main
objective of the projectwas to know the consumer behaviour of people of Rajasthan
towards Digital Marketing in the retail banking sector. Datacollections were made
through research Instruments like questionnaires,direct interviews and observation,
Pilot study; sampling and data analysis.The study will be conducted to bank staff, and
customers. In spite of the fact that the flow concentrate on factors influencingbuyer
conduct towards the use of new innovation-based administrationsof its sort, as various
investigations have been attempted before byvarious scientists in various pieces of the
world in a comparable region. The present study is a combination of explorative and
descriptiveanalysis. There is a requirement for steady advancement in retail banking.For
the future, a change in outlook in bank financing through creativeitems and components
including steady up-degree and revalidation of theoffers amazing open doors for
development, the difficulties are similarlyoverwhelming.

7. Tiwari Tanu (2020) conducted “A Study of Digital Financial Inclusion in India

with Special Reference to Payment Banks and Small Banks”. The main objective of
the study is to discuss the role of technology-based banking which is termed as Digital
Financial Inclusion (DFI) with respect to Payment Bank and Small Finance
Banks.Many different reasons were stated by the respondents for not using
digitalpayments which includes Delayed Acknowledgement Message, InternetProblem,
No Phone, Wrong Deduction, Don't Know, Server Down, Bank Staffand Commission

31
charged.The study reveals that PMJDY pushed the financial inclusion to a great
extent;however, DFI programs via SFB and PB were unable to do something dramatic.
Themajor reasons reported are internet availability and incapability to use them. The
majorreason behind their failure is lack of awareness, incapacity to buy a high-end
internetenabled phone and incapability to operate due to lack of education.

8. D Shilpa (2019) conducted a research study on “E Banking Services a Competitive

Study of Select Public and Private Sector Banks in Mysore District”. The main
objective of the study is the trends of present and future technology, which affect the
banks and newlinefinancial services. Hence, it is necessary to study the technology
adopted in Indian Banks. The study concluded that Public sector bankemployees faced
a more internal and external problems compared to the Private SectorBanks. Therefore
Public Sector Banks have to work on these problems to ensure thatbankers are work
with feasible working environment in the banking institutions.

9. Sharma Rahul (2019) conducted a study on “Consumer behaviour towards retail

banking products a comparative study of rural and urban areas of Jaipur
district”.The major objectives of this research are to ascertainthe socio-economic
profile of sample customers and analyse behaviour of theconsumer. Analysis has been
made towards the socio-economic profile and consumer behavior of358 respondents of
selected Banks. Respondents were generally the existingcustomers of banks selected
under study. The respondents were selected on the basisof convenience and judgmental
sampling. The sample has been taken from differentrural and urban areas of Jaipur
District.The conclusion stated that banking in India has a history of more than 200 years.
People tend to believein banking in starting days as a source for getting money for doing
business.By the entry of the private sector banks, Indian banking has gone through alot
of changes in last 15 to 20 years. Prior to the introduction of private banksin India,
public sector banks were on the dominating stage and they wererunning the business by
their own traditional ways. Depositing andwithdrawing the money from the bank was a
big task, as customers need togo to branch, wait in the long queues and bear with the
harsh attitude of theemployees sometimes. This thing has improved by the private banks
firstespecially ICICI bank and HDFC bank.

10. Sivaprakasham M (2018) conducted a research on “Customers Preference to

Digital Banking Services Provided by Retail Banks of Tripura City”.The main

32
objective of the study was - to study the various digital banking services provided by
the retail banks and to find out the association between the demographic profile of
thecustomer and their banking habits. The conclusive report states that the present day
customers are highly packed with various job roles andcommitment. But for all the
activities of life, finance is the prime component. Savingthe money for future use and
emergency has opened tools for with banks money banks. But the banks are in a
different place, the place of residence, job is at other place. Thus going to bank will take
ample of time and energy. Thus the concept ofdigital banking services has been labelled
as a boom to carry out the banking activities.

11. Jain Shalini (2016) conducted a research on “Marketing of financial services by

public sector banks in Rajasthan- A case study of State bank of Bikaner”. The main
objective of the study was to study the bank customer’s satisfaction with respect to
marketing strategies of bank and to evaluate the promotional tools and techniques
adopted by the bank.In this study, it was found that saving bank accounts dominates the
types of accounts heldby respondents in customers banking information. 93.9% of
customers operated savingaccount. Only 6.1% of customers operated current accounts.
Because, the respondentwere not paying any interest in operate of saving bank
account.It was foundthat 45.2% respondents visited the bank monthly, 29.7% visited
quarterly while 17.1% ofrespondents visited the bank half yearly. Only 8% respondents
visited yearly.In customer’s no. of years of banking, it was found that 32% of
respondents were bankingfrom 1-5 years, 25.8% were banking from 11-15 years and
22.9% of customers wereattached with the bank from 16 years and above while 19.3%
were banking from 6-10 years. This analysis shows the banking behaviours of the
respondents.

12. Shankar Sumita (2006) conducted“Astudy of marketing of banking services in

India during post liberalisation period with special reference to ICICI Bank and
HDFC Bank”.It highlights the problems involved in marketing of banking services of
ICICI Bank and HDFC Bank and it offers suggestions and measures to solve the
problems ofmarketing the Banking services with reference to ICICI Bankand HDFC
Bank. It concluded that the customer's choice and awareness have increased
tremendously; the customer can go elsewhere, if they don't get what they
want"continuous improvements is needed ix esteemed services, prelates and delivery
channels in order to maintain the existing customer's loyalty.

33
 CHAPTER -3

RESEARCH METHODOLOGY

The research methodology for the proposed study consist the need of the study,
statement of the problem, objectives of the study, hypothesis, scope of the study,
research design tools and techniques and data collection.

34
‘Research methodology’ is a way to systematically solve the problems. It may be
understand as the science of how research is done scientifically we studies various sets
that are generally adopted by researcher in his research study problem along with the
logic behind them. It is necessary for the researcher to know not only the researcher
method or techniques but also research methodology. Research methodology is
referring to a search for knowledge for its advancement. It is persuade of truth with the
help of study.

According to C R Kothari, ‘Methodology’ is the systematic, theoretical analysis of the

methods applied to the field study. It comprises the theoretical analysis of the methods
and principles associated with a branch of knowledge.

Types of Research Methodologies

MIXED
QUANTITATIVE QUALITATIVE
METHODS
RESEARCH RESEARCH
RESEARCH
• Focuses on numerical • Focuses in • Combines both
data statistical understanding quantitative and
analysis. concepts, experiences qualitative approaches.
• Common methods- and meanings. • Provides a more
Surveys, experiments • Methods- Interviews, comprehensive
and secomndary data. focus groups and perspective.
• Tools- Questionaires, ethnography. • Common in social
structured interviews • Tools- Open-ended sciences and health
and databases. questions, researchers.
observations and
content analysis.

‘Research methodology’ is the backbone of scientific inquiry, providing systematic and

rigorous approaches to gather, analyse, and interpret data, thereby ensuring the
reliability and validity of research findings. By carefully selecting appropriate
methodologies, researchers can address complex questions and contribute valuable
insights to their fields.

NEED OF THE STUDY

In the present era, studying digital marketing in retail banking is essential to

understanding how banks can effectively reach and engage their increasingly digital-
savvy customers. As customer preferences shift towards online and mobile banking,
banks must adapt their marketing strategies to remain competitive and relevant. This

35
study can reveal insights into optimizing marketing investments, enhancing
personalization, and improving customer experiences.Additionally, it can help banks
identify new trends and innovations in digital marketing, ensuring they stay ahead of
industry developments. Overall, such a study is crucial for driving growth, loyalty, and
customer satisfaction in the evolving financial services landscape.

STATEMENT OF PROBLEM

In the present era, retail banks are facing significant challenges in engaging and
retaining customers through traditional marketing channels. Despite the rapid
advancement of digital technologies and the increasing preference for online and mobile
banking, many retail banks have not effectively leveraged digital marketing strategies
to enhance customer experiences and drive growth. This study aims to investigate the
impact of digital marketing on customer engagement and satisfaction in retail banking,
identify key trends and best practices, and provide recommendations for optimizing
digital marketing efforts to remain competitive in a rapidly evolving financial
landscape.

OBJECTIVES OF THE STUDY

▪ To analyse the Impact of Digital Marketing on Customer Engagement.

▪ To compare and evaluate the effectiveness of various digital marketing
strategies in increasing the adoption of retail banking services in the rural
areas of Himachal Pradesh.
▪ Identify the main challenges and obstacles that retail banks face in
implementing digital marketing strategies.
▪ Analyse how digital marketing activities affect the perception and
trustworthiness of retail banking.

These objectives can help guide the research process, ensuring a comprehensive
understanding of digital marketing's role and potential in the retail banking sector.

RESEARCH HYPOTHESIS

Crafting a research hypothesis for a study on digital marketing in retail banking in

rural areas of Himachal Pradesh involves identifying specific, testable statements
that address the impact, challenges, and outcomes of digital marketing strategies in

36
this context. Here are several aspects that can be included in the research
hypotheses:

H1: Digital marketing significantly enhances customer engagement in retail

banking in rural areas of Himachal Pradesh.

H2: There is a positive relationship between digital marketing efforts and customer
satisfaction in rural retail banking.

H3: Rural customers in Himachal Pradesh show a preference for digital banking
services over traditional banking methods.

H4: The adoption of digital marketing in retail banking is hindered by infrastructure

challenges in rural areas of Himachal Pradesh.

SCOPE OF STUDY

The study is focused on the rural areas of Himachal Pradesh, a northern state in
India. The region's unique geographical and socio-economic characteristics provide
a distinctive context for understanding the impact and effectiveness of digital
marketing in retail banking. The study targets two main groups within the rural
population:

Customers: Individuals who utilize retail banking services in rural areas. This
includes a diverse demographic range covering various age groups, income levels,
and educational backgrounds.

Bank Employees: Personnel working in retail banks, including marketing managers,

bank executives, and frontline staff. Their insights into the implementation and
challenges of digital marketing strategies are crucial for a comprehensive analysis.

RESEARCH DESIGN

The study basically is an attempt of awareness about impact of digital marketing in

customer engagement and to compare and evaluate effectiveness if digital marketing
in retail banking sector a case study of Shimla town\ which was done with the help
of Questionnaire Analysis.

A. Type of Study

37
 This study is both descriptive and exploratory in nature. The descriptive aspect aims
to outline the current state and effectiveness of digital marketing in retail banking,
while the exploratory aspect seeks to identify and understand the underlying factors
influencing customer preferences and behaviors.

B. Research Approach

A mixed-methods approach will be employed, combining both qualitative and

quantitative data collection and analysis techniques to provide a comprehensive
understanding of the research problem.

Data Collection Methods

Data collection is a critical component of any research project, as it provides the

necessary information to analyse and draw meaningful conclusions. In the context
of this study on digital marketing in retail banking in rural areas of Shimla district,
Himachal Pradesh, a combination of primary and secondary data collection methods
will be employed to ensure a comprehensive understanding of the research problem.

Primary Data

Surveys: Structured questionnaires will be distributed to rural bank customers and

employees in Shimla district to gather quantitative data on their experiences and
perceptions of digital marketing in retail banking.

Interviews: In-depth interviews will be conducted with key stakeholders, including

marketing managers, bank executives, and rural customers, to collect qualitative
insights into the challenges and opportunities of digital marketing in retail banking.

Secondary Data

Literature Review: Relevant academic papers, industry reports, and case studies
on digital marketing in retail banking will be reviewed.

Existing Data: Analysis of existing data from industry reports and publications to
support the primary data findings.

Sampling Techniques

Sampling is a fundamental aspect of research design that involves selecting a subset

of individuals from a larger population to participate in the study. The aim is to

38
 gather data that can be generalized to the entire population. In this study on digital
marketing in retail banking in rural areas of Shimla district, Himachal Pradesh, a
well-structured sampling strategy is crucial to ensure the reliability and validity of
the findings.

Target Population

The target population includes customers and employees of retail banks located in
the rural areas of Shimla district.

Sampling Method

Stratified random sampling will be used to ensure representation from different

villages and demographic groups within Shimla district. This method allows for a
more accurate and comprehensive understanding of the research problem.

Sample Size

A sample size of 100 respondents will be targeted, including 50 customers and 50

bank employees. The sample size is determined based on the research objectives
and the need for reliable statistical analysis.

Data Analysis Procedures

Data analysis is a critical phase of any research project, as it involves systematically

applying statistical and logical techniques to describe, summarize, and evaluate
data. This study on digital marketing in retail banking in the rural areas of Shimla
district, Himachal Pradesh, employs both quantitative and qualitative data analysis
procedures to provide comprehensive insights into the research problem.

Quantitative Analysis

Descriptive Statistics: Means, medians, and standard deviations will be calculated

to summarize the survey data.

Inferential Statistics: Correlation and regression analyses will be conducted to test

the hypotheses and identify relationships between variables.

Software: SPSS and R will be used for statistical analysis.

Qualitative Analysis

39
 Thematic Analysis: Thematic analysis will be employed to identify and analyse
patterns and themes within the interview data.

Software:Vivo or similar qualitative analysis software will be used for coding and
organizing qualitative data.

Ethical Considerations

Ethical considerations are a crucial aspect of any research project, ensuring the
integrity and credibility of the study while protecting the rights and well-being of
participants. In this study on digital marketing in retail banking in rural areas of
Shimla district, Himachal Pradesh, several ethical guidelines will be strictly adhered
to throughout the research process. This section outlines the key ethical
considerations relevant to the study.

Informed Consent: Participants will be informed about the purpose of the study,
and their consent will be obtained before data collection.

Confidentiality: The anonymity and confidentiality of participants will be ensured

throughout the research process.

Ethical Approval: The research proposal will be submitted to the relevant ethical
review board for approval.

Conclusion

This research design outlines a comprehensive approach to studying digital

marketing in retail banking in the rural areas of Shimla district, Himachal Pradesh.
By employing a mixed-methods approach, the study aims to provide a thorough
understanding of the current state, effectiveness, challenges, and opportunities
associated with digital marketing in retail banking. The next sections will detail the
data collection and analysis processes, followed by the presentation and discussion
of the study’s findings.

40
 QUESTIONNAIRE FOR DIGITAL MARKETING IN RETAIL
BANKING IN RURAL AREAS OF HIMACHAL PRADESH

A CASE STUDY OF SHIMLA TOWN

Dear Sir/Madam,

I am doing a research work on – A study on digital banking in retail banking in Shimla

town. I would like you to spare some time to fill this questionnaire form for the
submission of project report. I shall be highly thankful to you.

SECTION A: DEMOGRAPHIC INFORMATION

1. What is your age group?

a) 21-30 c) 31-40 d) 41-50 e) Above 50

41
2. What is your gender?

a) Male b) Female c) Other

3. What is your highest level of education?

a) Higher Education b) Graduate c) Post graduate

d) Diploma holder e) other

SECTION B: BANKING AND DIGITAL MARKETING AWARENESS

BANKING INFORMATION

Name of the bank- Type of bank –

1. How often do you visit your bank branch?

a) Once a week b) Once a month c) Once every few months d)

Rarely/Never

2. Are you aware of digital banking services offered by your bank?

a) Yes b) No

3. How did you first hear about digital banking services?

a) Bank staff b) Friends/Family c) Social media d) Other

SECTION C: USAGE OF DIGITAL BANKING SERVICES

1. Do you use internet banking services?

a) Yes b) No

2. If yes, how frequently do you use internet banking?

a) Daily b) Weekly c) Monthly d) Rarely

3. Which digital banking services do you use the most?

a) Money transfer b) Bill payments c) Checking account balance

d) Applying for loans e) other

SECTION D: PERCEPTION AND CHALLENGES

42
1. How satisfied are you with the digital banking services?

a) Very satisfied b) Satisfied c) Neutral d) Dissatisfied

2. What challenges do you face while using digital banking services? (Select all that
apply)

a) Lack of internet connectivity b) Complexity of services

c) Security concerns d) Lack of awareness e) Technical issues f)

other

3. Do you feel secure using digital banking services?

a) Yes b) No c) Not sure

4. Do you think digital marketing by banks effectively reaches rural customers?

a) Yes b) No c) Not sure

SECTION E: COMPARITIVE ANALYSIS

1. How accessible are the digital services of your bank?

a)Easily accessible b) Accessible c) Neutral d)

Inaccessible

2. In your opinion, which type of bank offers better digital services?

a) Public b) Private

3. How satisfied are you with the digital marketing efforts of private banks compared
to public banks?

a) Satisfied b) Neutral c) Dissatisfied

SECTION F: IMPROVEMENT AND FUTURE ADOPTION

1. What improvements would you suggest for digital banking services in your area?

a) Better internet connectivity b) Simplified user interface

c) More security measures d) increased awareness programs

43
e) More customer support f) other

2. Would you recommend digital banking services to others in your community?

a) Yes b) No c) Maybe

3. Any additional comments or suggestions for improving digital marketing in retail

banking in rural areas?

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS

The data that has been collected from various representatives has to be analysed for
drawing conclusions. So in this chapter efforts have been made to analyse and interpret
the collected data for the impact of digital marketing.

The data has been collected from two banks that is a private bank and a public sector
bank. ICICI bank and State Bank of India were the two banks where study was made.
A total of 50 members from each bank were surveyed.

Responses were recorded in the form of questionnaire and also general communication
was made for knowing more indebt knowledge from few customers and employees at
the time of visit to the banks.

44
Then the data was collected within the given time, analysed and interpreted the data in
this chapter.

First of all the collected data has been presented in a tabular form and then analysed
with the help percentage and pie charts.

STATISTICAL TOOLS USED CHARTS USED

1. Percentage analysis 1. Pie Charts

ANALYSIS AND INTERPRETATION

4.1 Distribution of respondent by their Age:

In table 4.1 an attempt has been made to classify the respondents on the basis of their
age.

Table 4.1

Classification on the basis of Age factor

S. No. Age Private Public Sector Percentage

Sector
1. 21-30 15(55%) 12(45%) 27(100)%
2. 31-40 20(51%) 19(48%) 39(100)%
3. 41-50 9(47%) 10(53%) 19(100)%
4. Above 50 6(66%) 9(60%) 15(100)%
TOTAL 50 50 100%
Source: Data collected from the questionnaire

Classification based on the age factor

45
 Private sector

21-30 31-40 41-50 Above 50

Public sector

21-30 31-40 41-50 Above 50

INFERENCE: From the above table and figure it is clear that the number of
respondents were the highest on the age group of 31-40 age group and the minimum
was in the age group of Above 50.

20% of private sector respondents lie in the age group of 31-40 and 19% of public sector
respondents lie in the same age group which included both employees and few
customers at the time of survey in the bank.

4.2 Distribution of respondents by their Gender:

In table 4.2 an attempt has been to distribute the respondents on the basis of their Gender
in private sector as well as in Government sector. The detailed description is given
below in tabular form:

Table 4.2

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 Classification on the basis of Gender

S. No. Gender Private sector Public Percentage

Sector
1. Male 29(46%) 34(54%) 63(100)%
2. Female 21(57%) 16(43%) 37(100)%
Total 50 50 100%
Source: Data collected was from the questionnaire

Classification on the basis of Gender

Private sector

Male Female

Public sector

Male Female

INFERENCE: From the above table and figure it can be seen that 46% males are in
private sector and in Government sector 54%, whereas females in private sector are 57%
and 43% in Government sector. This result is on a particular date as it was survey for
the project report.

47
There is an approximate equal amount of distribution of males and females on both the
sectors which indicates equal opportunities and participation on gender basis.

4.3 Distribution of respondents by their level of education

In table 4.3 an attempt is made to classify the respondents in the basis of their level of
education.

Table 4.3

Classification on the basis of Level of Education

S. No. Education Private Public Sector Percentage

Sector
1. Higher 7(53%) 6(46%) 13(100%)
education
2. Graduate 17(43%) 23(57%) 40(100%)
3. Post Graduate 15(57%) 11(42%) 26(100%)
4. Diploma holder 5(63%) 3(37%) 8(100%)
5. Other 6(43%) 7(50%) 14(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification Based on the level of Education

48
 Private sector

Higher education Graduate

Post graduate Diploma holder
Other

Public sector

Higher education Graduate

Post graduate Diploma holder
Other

INFERENCE From the above table and figure it can been seen that most of the
people that were surveyed are degree holders where 23% of the total respondents from
the public sector are graduate whereas in private sector the percentage if the graduate
respondents are 17%.

4.4 Distribution on the basis of type of bank

In table 4.4 an attempt is made to classify the respondents on the basis of type of bank
they are using.

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 Table 4.4

Classification in the basis of type of bank

S No, Type of bank No. of respondents Percentage

1. Public bank 50 50%
2. Private bank 50 50%
Total 100 100%
Source: Data has been collected from the questionnaire

Classification based on type of bank

No. of respondnets

Private bank Public bank

INFERENCE: From the above table and figure it is concluded that the study was made
on equal respondents from both the sectors that is private sector as well as public sector.

Responses from thereafter were collected accordingly and recorded with the actual data.

4.5 Distribution of respondents on visit to their bank branch

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In table 4.5 an attempt has been made to classify the respondents on the basis of their
visit to their bank branch.

Table 4.5

Classification on the basis of visit to the bank branch

S. No. Visit to bank Private Sector Public Sector Percentage

1. Once a week 5(16%) 27(84%) 32(100%)
2. Once a month 16(46%) 19(54%) 35(100%)
3. Rarely 29(88%) 4(12%) 33(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification based on the visit to the bank

Private sector

Once a week Once a month Rarely

Public sector

Once a week Once a month Rarely

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INFERENCE: From the above data and table it is clear that people often visit their
bank branches in public sector banks rather in private sector banks. The reasons so may
be the variety of online services being provided by the private sector banks.

4.6 Distribution of respondents on knowing about the digital bank services

In table 4.6 an attempt has been made to know about from where did the customers got
the knowledge about the digital services banks are providing these days

Table 4.6

Classification on the basis of knowing digital bank services

S. No. Knowledge from Private Public Percentage

Sector Sector
1. Bank staff 15(47%) 17(53%) 32(100%)
2. Friends/family 11(55%) 9(45%) 20(100%)
3. Social media 20(61%) 13(39%) 33(100%)
4. Other 4(27%) 11(73%) 15(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

52
 Classification on the basis of knowledge of digital bank services

Private sector

Bank staff Friends/family

Social media Other

Public sector

Bank staff Friends/family

Social media Others

INFERENCE: From the above table and figure it was clear that in the private sector of
banking the knowledge of digital services that banks are providing are mainly gained
from social media and in private sector the same is done from the bank staff of the
banks.

4.7 Distribution of respondents by usage of internet banking services

In table 4.7 an attempt has been made to analyse the usage of internet banking services
by all the respondents under study from private sector bank as well as the Government
sector banks.

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 Table 4.7

Classification on the basis of usage of internet banking system

S. No. Usage Private Sector Public Sector Percentage

1. Yes 44(51%) 42(49%) 86(100%)
2. No 6(43%) 8(57%) 14(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification in the basis of usage of internet banking services

Private sector

Yes No

Public sector

Yes No

INFERENCE: From the above table and figure it is clear that most of the respondents
were using internet banking services provided by the private and public banks in
particular rural areas of the Himachal Pradesh. Being taken Shimla district as a case

54
study it can be seen that people are aware of the internet banking services and know the
usages.

4.8 Distribution of respondents on frequent use of internet banking

In the table 4.8 an attempt has been made to study the frequent use of internet banking
by the respondents.

Table 4.8

Classification on the frequent use of internet banking

S. No. Frequently Private Sector Public Percentage

used Sector
1. Daily 20(47%) 23(53%) 43(100%)
2. Weekly 13(56%) 10(43%) 23(100%)
3. Monthly 7(33%) 14(66%) 21(100%)
4. Rarely 10(77%) 3(23%) 13(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

55
 Classification on the basis of frequent use of internet banking

Private sector

Daily Weekly Monthly Rarely

Public sector

Daily Weekly Monthly Rarely

INFERENCE: From the above table and the figure it can be concluded that most of the
respondents use the internet banking services on a daily basis then may it be in private
sector banks or in public sector banks. People are well aware of the services and have
the knowledge for all.

4.9 Distribution of respondents on use of banking services

In table 4.9 an attempt has been made to study the type of banking services by the
respondents.

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 Table 4.9

Classification on the basis of use of banking services

S. No. Banking Private Public Percentage

services Sector Sector
1. Money transfer 23(52%) 21(47%) 44(100%)
2. Bill payments 20(60%) 13(39%) 33(100%)
3. Check balance 17(39%) 27(61%) 44(100%)
4. Apply for loans 5(36%) 9(64%) 14(100%)
5. Other 7(39%) 11(61%) 18(100%)
Total 50 50 100%
Source: Data collected from the questionnaire.

Classification based on the use of banking services

57
 Private sector

Money transfer Bill payments

Check balance Apply loans
Other

Public sector

Money transfer Bill payments

Check balance Apply for loans
Other

INFERENCE: From the above data and table it was concluded that most of the
respondents made multiple answers. It can be seen that in public sector banks majority
of the respondents use the internet banking services for the purpose of bill payments
and in public sector banks to check the balance from their accounts. Application for loan
in each of the bank can be seen less.

4.10 Distribution of the respondents on satisfaction from the digital banking

services

In table 4.10 an attempt has been made to find the level of satisfaction among the
respondents from the digital banking services provided from each bank.

Table 4.10

Classification on the basis of satisfaction level from digital services

58
 S. No. Satisfaction Private Public Sector Percentage
level Sector
1. Very satisfied 24(67%) 13(36%) 36(100%)
2. Satisfied 11(39%) 17(61%) 28(100%)
3. Neutral 10(53%) 9(47%) 19(100%)
4. Dissatisfied 5(31%) 11(69%) 16(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the satisfaction of use of digital services

59
 Private sector

Very satisfied Sarisfied Neutral Dissatisfied

Public sector

Very satisfied Satisfied Neutral Dissatisfied

INFERENCE: From the above data it can be concluded that satisfaction level is less in
public sector banks for the use of digital banking services as compared to the private
sector banks. In public sector banks 11% of the respondents were not satisfied from the
internet banking services their bank was providing.

4.11 Distribution of respondents on challenges faced while using digital banking

services

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In table 4.11 an attempt has been made to classify the respondents on the basis of
challenges faced by them while using the digital banking services.

Table 4.11

Classification on the basis of challenges faced

S. No. Challenges Private Public Sector Percentage

Sector
1. Lack of connectivity 10(50%) 10(50%) 20(100%)
2. Complex services 7(39%) 11(61%) 18(100%)
3. Security concerns 19(57%) 14(42%) 33(100%)
4. Lack of awareness 2(40%) 3(60%) 5(100%)
5. Technical issues 5(55%) 4(44%) 9(100%)
6. Other 7(46%) 8(53%) 15(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the basis of challenges faced while using digital services

61
 Peivate sector

Lack of connectivity Complex services

Security concerns Lack of awareness
Technical issues Other

Public sector

Lack of connectivity Complex services

Security concerns Lack of awareness
Technical issues Other

INFERENCE: From the above data it is clear that most of the respondents are
concerned about the security for the use of digital services as they are the opinion of
that with the increase of fraudulent practices and online scams they can also got caught
up with the same in the use of digital services..

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4.12 Distribution of the respondents by security of use of digital banking services

In table 4.12 an attempt has been made to classify the respondents for the security
concern on use of digital banking services and how safe they feel while using the same.

Table 4.12

Classification on the basis of security concern

S. No. Secure Private Sector Public Sector Percentage

1. Yes 34(54%) 29(46%) 63(100%)
2. No 10(40%) 15(60%) 25(100%)
3. Not sure 6(50%) 6(50%) 12(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the basis of security concerns

Private sector

Yes No Not sure

Public sector

Yes No Not sure

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INFERENCE: From the above data it is clear that most of the respondents feel secure
to use the digital banking services while there are still some who are hesitant to use the
same. In private sector 34% of the respondents feel secure to use the internet banking
services and in public sector 29% feels the same. But in public sector 15% did not felt
secured in using the services whereas in private sector the numbers was just 10%.

4.13 Distribution of respondents by reach of digital marketing by banks to rural

areas

In table 4.13 an attempt has been to classify the respondents on the basis of reach of
digital marketing by the banks to the rural areas of Himachal Pradesh. Alongside the
questionnaire, conversation was also made with few of the respondents to know more
about answer of the question.

Table 4.13

Classification on the basis of reach to the rural areas

S. No. Reach Private Public Sector Percentage

Sector
1. Yes 42(48%) 44(52%) 86(100%)
2. No 3(60%) 2(40%) 5(100%)
3. Not sure 5(55%) 4(45%) 9(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the basis of reach of digital banking services to rural areas

64
 Private sector

Yes No Not sure

Public sector

Yes No Not sure

INFERENCE: From the above data it was clear that the digital services that are being
provide from both the sectors are being reached to the rural areas of Himachal Pradesh
yet there are some goals that have to be achieved as 86% of the people are of the opinion
that the reach of services is made to the rural areas.

4.14 Distribution of respondents on accessibility of digital services at the bank

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In table 4.14 an attempt has been made to classify the respondents on the basis of
accessibility to the digital services to them provided by their banks.

Table 4.14

Classification in the basis of accessibility to the digital services

S. No. Accessibility Private Public Sector Percentage

Sector
1. Easily accessible 13(48%) 14(52%) 27(100%)
2. Accessible 21(57%) 16(43%) 37(100%)
3. Neutral 10(48%) 11(52%) 21(100%)
4. Inaccessible 6(40%) 9(60%) 15(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the basis of accessibility of digital services provided by banks

66
 Private sector

Easily accessible Accessible

Neutral Inaccessible

Public sector

Easily accessible Accessible

Neutral Inaccessible

INFERENCE: From the above data it is concluded that accessibility in terms of digital
services from the banks is equally distributed in both private and public sectors. Yet
some development measures are still required with more security especially in private
sector banks.

4.15 Distribution of respondents on type of bank that offers better digital services

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In table 4.15 an attempt has been made to classify the respondents on the basis of type
of bank that provides better digital services to their customers].

Table 4.15

Classification on the basis of type of bank that offers better digital services

S. No. Bank type No. of respondents Percentage

1. Private banks 55 55%
2. Public banks 45 45%
Total 100 100%
Source: Data collected from the questionnaire

Classification on the basis of type of bank

No. of respondents

Private bank Public bank

INFERENCE: From the above data it was clear that both public sector and private
sector banks are providing good digital services which are being favoured by their
customers. People are following both private sector and public sector, no favours is done
on any service basis. Development can be seen in both sectors with time.

In the study of 100 respondents 55 favoured private sector banks while 45 preferred
public sector banks.

4.16 Distribution of respondents based on satisfaction levels on digital marketing

efforts of private banks as compared to the public banks.

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In table 4.16 an attempt has been made to classify the respondents on the basis of
satisfaction levels on digital marketing efforts made by their particular banks.

Table 4.16

Classification on the basis of satisfaction of marketing efforts of banks

S. No. Satisfaction Private Public Sector Percentage

Sector
1. Satisfied 33(53%) 29(47%) 62(100%)
2. Neutral 15(60%) 10(40%) 25(100%)
3. Dissatisfied 2(13%) 11(87%) 13(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the basis of satisfaction from marketing efforts

Private sector

Satisfied Neutral Dissatisfied

Public sector

Satisfied Neutral Dissatisfied

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INFERENCE: From the above data it is concluded that majority of the respondents are
satisfied from the digital services provided by their banks are satisfied.

But still 11% of the respondents from the public sector bank can be seen that they are
not satisfied from the digital services being provide by their banks.

4.17 Distribution of respondents based on the suggestions for improvements

In table 4.17 an attempt has been made to classify the respondents on the basis of
suggested ways which can be aided in the improvement of digital banking services of
banks.

Table 4.17

Classification on the basis of improvement in digital banking services

S. No. Improvement Private Public Percentage

Sector sector
1. Internet connectivity 11(61%) 7(39%) 18(100%)
2. Simplified user interface 15(63%) 9(37%) 24(100%)
3. More security measures 25(53%) 22(47%) 47(100%)
4. Increased awareness 5(31%) 11(69%) 16(100%)
programs
5. More customer support 17(47%) 19(53%) 36(100%)
6. Other 2(33%) 4(67%) 6(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

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 Classification on the basis of suggestions on improvements

Private sector

Better internet connectivity

Simplifiesd user interface
More security measures
Increased awareness programs
More customer support

Public sector

Better internet connectivity

Simplifiesd user interface
More security measures
Increased awareness programs
More customer support

INFERENCE: From the data provided it is concluded that still with the working
conditions of the digital services people are of the opinion that improvements are
required in the system.25% respondents want security measures to be increased in
private banks while fir the same it is 22%.

4.18 Distribution of the respondents based on the recommendation of digital

banking services to others

In table 4.18 an attempt has been made to classify the respondents based on to
recommend other for the digital banking services in their own community.

Table 4.18

Classification on the basis of recommendation

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 S. No. Recommendation Private Public Percentage
Sector Sector
1. Yes 41(53%) 36(46%) 78(100%)
2. No 5(42%) 7(58%) 12(100%)
3. Maybe 4(36%) 7(64%) 11(100%)
Total 50 50 100%
Source: Data collected from the questionnaire

Classification on the basis of recommendations made

Private sector

Yes No Maybe

Public sector

Yes No Maybe

INFERENCE: From the above data it can be seen that not majority of the people are
ready to suggest the digital banking services to others. In private sector 41% of the
respondents are ready to suggest digital services to others and in public sector the same
is 36%.

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LIMITATION:

While this study provides valuable insights, several limitations must be acknowledged
to ensure a balanced and accurate interpretation of the findings.

The study is geographically confined to Shimla, which may not accurately represent the
entirety of Himachal Pradesh. This research includes both public and private sector
banks; however, the number of banks sampled from each sector may not be
proportional. The study captures data at a specific point in time, and the rapidly evolving
nature of digital marketing technologies and strategies means that findings could
quickly become outdated. The data collected for this study relies heavily on responses
from bank employees and customers. There is a risk of biased responses, particularly if
respondents perceive the researcher as an external evaluator or as a representative of
management.

SUMMARY

This study examines the impact of digital marketing in retail banking within rural areas
of Himachal Pradesh, focusing on Shimla district. It aims to compare the effectiveness
and customer perceptions of digital services offered by private and public sector banks.

A survey was conducted with 100 respondents to gather data on their experiences and
opinions regarding digital banking services. Respondents were selected to provide a
balanced representation of gender, bank type (private and public), and age group.

Key findings reveal that 39% of respondents are aged 31-40. Gender distribution
showed 63% males and 37% females. Private and public bank respondents were evenly
split. Regarding branch visits, 32% visit weekly, 35% monthly, and 33% rarely. Digital
service awareness is driven by bank staff (32%) and social media (33%).

A significant 86% use internet banking, with 43% doing so daily. Internet banking is
primarily used for money transfers (44%) and balance checks (44%). Full satisfaction
with digital services was not achieved, with 33% expressing security concerns and 18%

73
struggling with service complexity. Notably, 63% have security concerns about digital
banking.

FINDINGS:

After analysing the data following findings may be reported:

1. Out of 100 respondents, 39% of them lies in the age group of 31-40.
2. Out of 100 respondents, 63 were males and 37 members were females.
3. Out of 100 respondents, 50 were from the private bank and 50 from public.
4. Out of 100 respondents,32% visited the bank branch every week 35% visited
once a month and 33% visited the branch rarely.
5. Out of 100 respondents, 32% op people came to know about the digital services
from bank staff and 33% from social media.
6. Out of 100 respondents, astonishing number of 86% members were using
internet banking services.
7. Out of 100 respondents, 43% of the members were using internet banking
services on a daily basis which is a great inclusion of people in the digital world.
8. Out of 100 respondents, 44% members use internet banking systems for money
transfer transactions and 44% used for to check the balance.
9. Out of 100 respondents, a full satisfaction was not seen for the digital services
provided by the private and public banks.
10. Out of 100 respondents, 33% members were having security concerns for the
use digital services and 18% were unable to use the services properly due to
complexity of services.
11. Out of 100 respondents, 63% of the members were of the opinion that they have
security concerns in using the digital banking services.
12. Out of 100 respondents, 86% were of the opinion that the digital marketing
services are able to reach the rural areas of the each and every district.
13. Out of 100 respondents, an equality was seen in the private bank and public bank
for which is better for use and offers better services

74
14. Out of 100 respondents, 62% were satisfied of the marketing efforts being made
by the private banks rather than of public banks.
15. Out of 100 respondents, 47% members suggested that they need more secured
network for the transactions and 36% suggested to have more customer support.
16. Out of 100 respondents, 78% were of the opinion for suggesting use of digital
services to others and 11% were not sure whether to suggest or not.

CHAPTER 5

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 CONCLUSION

The project report on "Digital Marketing in Retail Banking in Rural Areas: A

Comparative Study of Public and Private Sector Banks in Himachal Pradesh, Taking
Shimla Town as a Case Study" offers a nuanced understanding of the dynamics at play
in the adoption and effectiveness of digital marketing strategies in the rural banking
sector. Through a focused case study approach, the research sheds light on how public
and private sector banks differ in their implementation and outcomes of digital
marketing initiatives.

The study reveals that while both public and private sector banks in Shimla are making
strides in digital marketing, private sector banks generally exhibit a higher degree of
innovation and resource allocation towards these efforts. This disparity is often a result
of the differing organizational structures, financial capabilities, and strategic priorities
of these banks. Private Banks, with their greater flexibility and resources, tend to adopt
more advanced digital marketing tools and strategies, resulting in higher customer
engagement and satisfaction levels.

Conversely, public sector banks, despite facing financial and regulatory constraints, are
also leveraging digital marketing to enhance their service delivery. The research
highlights several successful initiatives by public sector banks that focus on increasing
digital literacy and access among rural populations. These efforts are crucial in bridging
the digital divide and ensuring inclusive growth in digital banking adoption.

The role of bank staff in educating customers about digital services is crucial, as a
substantial number of respondents rely on them for updates and information. This
underscores the importance of human interaction in the digital transition process.Rural
penetration of digital banking services appears to be effective, which is encouraging for
inclusive growth. However, there is no consensus on whether private or public banks
offer better services, though marketing efforts by private banks seem to be more
appreciated by the respondents.

Overall, while digital banking is widely used and integrated into daily life, there are
clear areas for improvement, particularly in enhancing security, addressing technical
issues, and providing better customer support. These improvements could further boost

76
user confidence and satisfaction, potentially increasing the likelihood of users
recommending digital banking to others.

In conclusion, while the digital marketing landscape in rural banking presents both
opportunities and challenges, the commitment of both public and private sector banks
to harnessing digital tools is evident. For sustainable and inclusive growth, it is
imperative that both sectors continue to innovate and invest in digital marketing,
tailored to the unique needs and contexts of rural customers.

REFERENCES:

Dave Chaffey, PR Smith, 2017 "Digital Marketing Excellence: Planning,

Optimizing and Integrating Online Marketing". Publication: Rutledge.

Scott David, 2020 "The New Rules of Marketing and PR".Publication: Wiley.

Ryan Deiss, Russ Henneberry, 2020 "Digital Marketing for Dummies".Publication:

For Dummies.

Godin Seth, 2018 "This Is Marketing: You Can’t Be Seen Until You Learn to
See". Publication: Portfolio.

Kumar Anjali, 2019 "Public Sector Banks in India: Reforms and

Challenges".Publication: Academic Foundation

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