Indian Overseas Bank Marketing Strategy & Marketing Mix (4Ps)

Published in Services category by MBA Skool Team

Marketing Strategy of Indian Overseas Bank analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Indian Overseas Bank marketing mix, help the brand succeed in the market. Let us start the Indian Overseas Bank Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Indian Overseas Bank Product Strategy:

The product strategy and mix in Indian Overseas Bank marketing strategy can be explained as follows:

Indian Overseas Bank is one of the leading banks in India. The product portfolio of Indian Overseas Bank is divided broadly into savings bank, current account, retail products, IOB card products, third party insurances and term deposits. All these services are the product strategy in the bank’s marketing mix.

The savings bank segment of Indian Overseas Bank is divided into corporate salary account, student account and platinum account. The current account segment is currently divided in to supreme, classic and super categories. The retail products segment of Indian Overseas Bank is divided into housing loan, vehicle loan and education loan. The IOB cards segment is divided in to credit cards, debit cards as well as gift cards and travel cards for overseas travel.

The insurance segment has life insurance, health care insurance and liability insurance. The term deposits have fixed deposits, tax saving deposits and deposit schemes for senior citizens. Apart from these Indian Overseas Bank has online payment services as well as internet banking solutions, mobile banking solutions as well as mobile apps for smartphones.

Indian Overseas Bank also rural banking solutions with subsidized loans, consulting for agri-businesses, financial inclusion schemes and other credit schemes. Indian Overseas Bank also has NRI banking solutions consisting of currency accounts, special deposit accounts, home loan schemes and other remittances. There are also special loans catering to MSME category.

Image: Wikimedia

Indian Overseas Bank Price/Pricing Strategy:

Below is the pricing strategy in Indian Overseas Bank marketing strategy:

Indian Overseas Bank strategy of prices has to go in line with what other public sector banks are doing under the regulation of the government and RBI. Indian Overseas Bank also has to keep it charges competitive to attract customers.

The pricing strategy in the bank’s marketing mix is as follows. The service charges although vary for various products and the customers keeping good and frequent transaction records are given preference as well as may charges are waived for the same customers. Also to promote the lower income segments to use it minimum services and loans it has nil charges for the same. The MSME and agricultural loans interest as well as service charges are kept low to promote the sectors. The service charges of Indian Overseas Bank also depend on the loan tenure with longer loans being charged more. The MCLR is currently 8.65% for the bank for 1 year according to which all the interest rates are set.

Read more about Indian Overseas Bank

Indian Overseas Bank Place & Distribution Strategy:

Following is the distribution strategy in the Indian Overseas Bank marketing mix:

Indian Overseas Bank has currently 3300+ branches across the country. The branches are grouped into rural, semi-urban, urban and metropolitan branches. As we can see a more dominant rural presence has helped it develop many agriculture focused schemes. The Indian Overseas Bank branches are controlled by 7 zonal offices and 49 regional offices. There are also 18 specialised MSME processing centres to fastrack the loans to micro enterprises. Every year Indian Overseas Bank expands with newer branches to widen its reach and this is focused mainly to rural regions to include the new customers in these regions as well as provide basic financial facilities under the financial inclusion scheme. Indian Overseas Bank also has 8 overseas branches in Hong Kong, Bangkok, Sri Lanka, South Korea and Singapore. It also focuses in marketing the insurance products for which it has employed LIC for the distribution of all the various insurance products.

It also reaches to the customers through its mobile banking platform, internet banking as well as through SMS banking and mobile apps.

Indian Overseas Bank Promotion & Advertising Strategy:

The promotional and advertising strategy in the Indian Overseas Bank marketing strategy is as follows:

Indian Overseas Bank, to educate its customers, mainly uses the print media as well the branch premises. Even the employees are engaged to make aware of the products. It also has very focused advertisements which targets segments. It has also featured in various programs which has raised the reputation of the bank and also the trust among the customers. Indian Overseas Bank also has various loyalty programs and merchant tie ups which it uses for promotions to attract customers. It also uses its website as well as the SMSs through which it reiterates is brand and also the various schemes it releases in regular intervals. Indian Overseas Bank also has various CSR activities such as setting up vocational training institutes, donations, imparting financial literacy to many people through financial literacy centres and other activities through Indian Overseas Bank Chidambaram Chettyar Memorial Trust.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Indian Overseas Bank.


Indian Overseas Bank believes in upgrading to the latest technology and expanding its reach year by year. Indian Overseas Bank currently has more than 31,000 employees. The selection of the employees happens through the national entrance test IBPS and then they go through training at the end of which they are put into clerical and probationary officer roles. The Indian Overseas Bank employees also go through the timely trainings and presentations and circulars to keep themselves updated to the current technologies and banking practices. Indian Overseas Bank has a very detailed structure in the organisation for the employees to chalk out the career goals and give them the boost to work harder every time. The remunerations include a very detailed structure and has many components such as allowances, salary arrears incentives, gratuity and leave encashment. The remunerations provided are at par with other public sector banks as per the policies. Indian Overseas Bank regularly conducts appraisal as per the requirements and keeps plenty of scope for promotions and career improvement.


Indian Overseas Bank has been moving recently to the latest updated technologies to improve the efficiency of various processes. It has migrated to Finnacle which is used internationally in many banking institutions. The bank has also achieved 100% CBS i.e. all of its branches are providing services through the banks intranet. The data has been automated through the same. Further to supports its digital transformations it has implemented IOB Pay an internet banking platform for mobiles, USSD transactions, UPI and prepaid cards. Indian Overseas Bank also provides payment gateway for 80 merchants for payment integrations. It employs business correspondents who are responsible for various financial inclusion schemes, Aadhar seedings, opening of bank accounts and carrying out bank transactions. The Indian Overseas Bank branches also provide services to the customer which cannot be completed online and other major processes with its well trained staff guiding them through all the transactions. The branches have sections which deals with deposits, loans, withdrawals and other payment facilities. The paper work is still not eliminated and various transactions can be done in the branches which is requirement in majority of the rural areas. Indian Overseas Bank also has 24X7 hotline to help the customers with their queries, issues and feedbacks.

Physical Evidence:

Indian Overseas Bank provides its customers with debit cards while opening savings account as well as loan accounts. It also provides passbooks and chequebooks as well as demand drafts as and when requested. The bank also provides receipts for any kind of ATM transactions or any in-branch transactions. It also provides certificates for various fixed deposits and loans. They are also provided with consultations and booklets by the employees in the branch for the various products for the education purposes. Indian Overseas Bank also provides SMS alerts for various transactions. It also provides gift cards which are available at the branches for gifting purposes which can be used at various merchant outlets. It also provides the customers with the various forms who are more comfortable with the paper format. The customers can also withdraw cash as well as exchange notes in the branches. Indian Overseas Bank also provides ATMs which can be accessed as per convenience near your home for basic transactions without visiting the branches every time. This completes the Indian Overseas Bank marketing mix.

About Indian Overseas Bank:

Indian Overseas Bank is a state-owned bank which was founded by Chidambaram Chettyar in 1937 keeping an eye on the overseas banking opportunities as well as foreign exchange opportunities. Indian Overseas Bank has headquarters in Chennai and is very widespread operations in Tamil Nadu. The bank is very internet friendly and endeavours in providing best of the banking services with the help of latest banking technologies and various mobile and online solutions. Indian Overseas Bank has a revenue of Rs. 23,000+ crores and an operating income of Rs. 2,800+ crores.

Indian Overseas Bank is currently headed by R. Subramaniakumar who is the MD & CEO.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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