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Branding and advertising of financial services

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  • 1. BRANDING AND ADVERTISING OF FINANCIAL SERVICES
  • 2. BRANDINGWhen several companies areoffering rival products they willwant to identify and distinguish their offering. This is called branding
  • 3. BRANDINGA brand is the sum of tangible and intangible values and associations that differentiate it from other available offerings in the market.
  • 4. BRAND IMAGEBrand image represents the totality ofimpressions about the brand as selected and adapted by the consumer’s perception. It embraces the brand’sphysical and functional aspects and also its symbolic meanings
  • 5. BRAND PERSONALITY• The strategic purpose in creating a brand personality is to evoke from the target consumer the response:• “I see myself in the brand”• “I see the brand in myself”• “This brand is for me”• And this becomes the basis for a bond or a relationship between consumer and brand which is stronger than if it were founded on cold functionality alone
  • 6. Brand EquityBE = Brand awareness + Brand association + brand preference while purchasing
  • 7. PURPOSE AND DEFINITIONS• “A seller’s promise to consistently deliver a specific set of features, benefits and services to buyers.” Philip Kotler• “A name, symbol, design or some combination which identifies the product as having a sustainable differential advantage.” Peter Doyle• “A name, term , sign, symbol or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” Philip Kotler
  • 8. CREATING BRAND PROMISEBrand owner’s input Consumer’s output SELF PRODUCT IMAGE PRICE QUALITY PLACE COST PROMOTION BRAND EXPECTED PEOPLE PERFORMANCE PROCESS DIFFERENTIATION PHYSICAL EVIDENCE
  • 9. EXTRINSIC ATTRIBUTES AND BRANDING• A consumer is more or less dependent on the extrinsic attributes of the branded article when it is difficult to evaluate the intrinsic attributes before purchase• Where the performance of the branded article cannot be guaranteed before purchase the influence of the brand name can be extremely high• Often financial products cannot be evaluated directly even after consumption (referred to as “credence articles” by Darby and Karni 1973) and are therefore very sensitive to influence of extrinsic attributes
  • 10. 5DSENSORY BRANDING
  • 11. Dress of Cabin Crew
  • 12. The Rise of Regionalism and Anti-globalisation
  • 13. Positioning “the brand” as evaluative attribute• The brand must be positioned to create meaning for customers through marketing communications such that it becomes the most important attribute• The brand evaluation comes to override evaluation of other attributes• This is why brands must consistently deliver the promises made in marketing communications
  • 14. Mutual attribute influence – “irradiation” (Kroeber- Riel 1980)• Intrinsic attributes not seen as important can influence evaluation of intrinsic attributes that are important (eg colour/taste ice cream and oranges, colour/spreadability – margarine, scent/strength – detergent)• Extrinsic attributes can influence the evaluation of intrinsic attributes (eg packaging/freshness – bread, packaging/taste – alcohol)
  • 15. Other distorting evaluative influences• Information processing of attributes may be distorted in favour of a brand that consumers (unconsciously) prefer. (Russo et al 1998,Predecisional distortion of product information, Journal of Marketing Research 35)• Consider the implications of this for financial product purchase from new financial providers
  • 16. Functional and expressive characteristics of products• FUNCTIONAL • EXPRESSIVE• Emphasis in consumption • Fulfils consumers’ on intrinsic attributes consumption goals in• Maximisation of physical psychosocial world function • Reference group symbolism • Brand names have greater communicative value
  • 17. Strategic functions of brands FUNCTION CHARACTERISTICSAs company Embodies personal/core values:Easy, Virgin, Body ShopAs shorthand Heinz= “quality, premium, reliable, well packaged, respectable”. Acts as “chunk” to aid info processingRisk reducer Minimise risk rather than maximise utility. Mitsubishi cars- few performance claims, many features, low pricePosition Functional benefits valued by customers. Volvo=safety, Subaru=performancePersonality Symbolism with emotional role. BMW, Rolex, CunardValue cluster Differentiation through values. Virgin= value, fun, innovation. AGA=tradition, constant, efficient,welcomingVision The world the brand could create. IKEA=function, resource efficiency. Apple=enabling creativityAdded value Relative to competitors, product in use. SEBO=“superb performance with German engineering as standardIdentity Vision and culture with resonance for staff and customers. Apple=challenge status quo. IKEA=challenge conventionImage Your perception of reality. Renault=as individual as youRelationship Translate brand values into relationship. Tesco= “the more we sell the less we charge”
  • 18. Branding benefits• BUYER BENEFITS • SELLER BENEFITS• Product identification • Product awareness• Shorthand cue of features and • Helps launch new product benefits • Secures demand• Distinguishes products of similar • Facilitates repeat purchase type • Fosters brand loyalty• Reduces buyer search time • Enables premium pricing• Increases buyer assurance • Provides equity value• Assists in quality evaluation • Offers proprietary brand assets• Psychological reward• Brand association
  • 19. Value gap analysis and branding opportunities“How do you rate existing services?” versus “What’s important to you?”
  • 20. Brands and semiotics• Semiotics is the study of meaning and is concerned with the symbolism conveyed by objects and words• Meaning is a product of the interaction between sign system and de-coder• Meaning derives from perception based on knowledge and attitudes• Brands use sign systems to create meaning (name, logo, colour, design)
  • 21. Levels of meaning in brand symbols• Utilitarian: functional aspects, reliability, fitness for purpose, effectiveness.• Commercial: exchange values, value for money, cost-effectiveness.• Socio-cultural: social effects of buying, aspirational groups, social roles• Myths: association with heroic stories
  • 22. Financial services brand images....
  • 23. Celebrity links and brand association
  • 24. ....and more
  • 25. How to screw up your brand?• Remember Kotler: “a seller’s promise to consistently deliver a specific set of features, benefits and services to buyers.” Like how to lose £900 million? How does this resonate with the consumer?
  • 26. How to screw up your brand ? (continued)• Believe that financials not customers are the lever for improved performance• Believe in demographic, psychographic segmentation rather than profitability segmentation• Collect data without understanding the 3 or 4 most important attributes valued by customers• Stalk customers without wooing them• Believe that loyalty schemes create loyalty• Spend millions on branding without communicating what value the brand creates for customers• Provide vanilla customer service• Believe that customer satisfaction is the means to win
  • 27. New versus old providers“it is more than giving a product like a current account a name. It is about identifying a target market and then developing a product and brand personality that the target market will identify and prefer.”
  • 28. ADVERTISING
  • 29. ADVERTISING• “Advertising is multidimensional, a powerful marketing tool, a component of economic system, a means of financing the mass media, a social institution, an art form an instrument of business management, a field of employment and a paying profession.” In Other Words: • “Advertising is a big business, It ranks fifth among the big industries of the world after oil, automobiles, computers, electronics.”
  • 30. Advertising is all about?????
  • 31. The definition which completely surrounds all the aspects of advertising is given by American marketing association, Chicago. According to it:“Any paid form of non personal presentation of ideas, goods and services by an identified sponsor.” Directed Communication
  • 32. Advertising Strategies1. Informative• Audience receives factual product info• No arguments; no evaluation• Suitable when: (a) audience actively seeks info (b) easy to assess the facts (c) judgment is favorable to advertiser (d) no significant competition
  • 33. Argumentative• Presents facts and evaluation• Suitable when: (a) there is a differentiated product benefit (b) benefits of features not obvious (c) high-involvement decisions
  • 34. 3. Psychological Appeal• Enhances product appeal thro’ emotions• Primary emphasis: Emotions• Secondary Emphasis: Product Attributes/Benefits
  • 35. Humor AppealPositive mood  draws attention  product is usedBut, . . . . . .(a) Not sufficient to merely attract attention(b) Repetition reduces ability to hold attention(c) Humour is subjective
  • 36. Fear Appeal• Negative consequences of not using product  product is used• Threat, with implications of danger• Curvilinear relationship between fear and persuasion (see next figure)
  • 37. Relationship between fear levels and messageacceptance Facilitating effectsAcceptanceof message Highrecommendation Level of fear Resultant nonmonotonic curve Inhibiting effects
  • 38. Sexual AppealGains attention  brand name recall?(a) Nature of product – If product is not related to sex, brand name recall higher when illustration is non-sexual than sexual(b) Attitude toward sexual illustrations – Audience with fav. attitude recall brand name more than those with unfavorable attitude(c) Gender of audience – Men have more difficulty in recalling brand names
  • 39. MAJOR CONSIDERATIONS FORADVERTISING MEDIA SELECTION
  • 40. FINANCIAL SERVICES IN INDIA
  • 41. MEANING OF FINANCIAL SERVICES• All types of activities which are of a financial nature could be brought under the term ‘financial services’.• The term “Financial Services” in a broad sense means “mobilizing and allocating savings”.• Thus, it includes all activities involved in the transformation of saving into investment.
  • 42. FINANCIAL SERVICES• The ‘financial service’ can also be called ‘financial intermediation’• Financial intermediation is a process by which funds are mobilised from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers.
  • 43. FINANCIAL SERVICES• financial services sector is a key area and it is very vital for industrial developments.• A well developed financial services industry is absolutely necessary to mobilise the savings and to allocate them to various investable channels and thereby to promote industrial development in a country.
  • 44. FINANCIAL SERVICES— OBJECTIVES/FUNCTIONS Fund Funds Specializedraising deployment services Economic Regulation Growth
  • 45. FINANCIAL SERVICES Financial services industry is the mainstay of any economy as it mirrors the financial health of thecountry. Indian financial markets are highly regulated with different authorities keeping an eye on every avenue of financial sub-segments viz. Stock markets, mutual funds, insurance and banking. Stock markets are regulated by Securities and Exchange Board of India (SEBI) while Insurance Regulatory and Development Authority (IRDA) keeps an eye on the insurance industry. Similarly, Reserve Bank of India (RBI) keeps a check on the Indian banking sector andAssociation of Mutual Funds in India (AMFI) takes care of the mutual fund segment
  • 46. INSURANCE SECTOR• According to the data released by Life Insurance Council, total premium collected (including both new and renewal premiums) during April-September 2011 stood at Rs 1,22,661 crore (US$ 23.69 billion). In the same period, the renewal premium collection increased by 17 per cent to Rs 73,575 crore (US$ 14.21 billion), as against Rs 62,818 crore (US$ 12.13 billion) in the corresponding period in 2010.• Till September 30, 2011, promoters of life insurance companies had injected over Rs 32,720 crore (US$ 6.32 billion) as capital. Also, there was an investment of more than Rs 200,000 crore (US$ 38.62 billion) in infrastructure development in the sector.• The council further predicts an upsurge in new premium collections during October 2011-March 2012
  • 47. BANKING SERVICES• According to the RBIs Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks, March 2011, Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 21.6 per cent. The share of new private sector banks, Old private sector banks, Foreign banks and Regional Rural banks in aggregate deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively.• With respect to gross bank credit also, nationalised banks hold the highest share of 52.8 per cent in the total bank credit, with SBI and its associates at 22.1 per cent and New Private sector banks at 13.2 per cent. Foreign banks, Old private sector banks and Regional Rural banks held relatively lower shares in the total bank credit with 4.9 per cent, 4.6 per cent and 2.4 per cent respectively.
  • 48. MUTUAL FUNDS INDUSTRY IN INDIA• Recent data released by AMFI stated that the cumulative average Asset Under Management (AUM) of all fund houses aggregated to about Rs 6,87,640 crore (US$ 132.77 billion) in the last quarter of 2011.• Data compiled at the end of 2011 indicated that HDFC Mutual Fund maintained its top position with an average AUM of Rs 88,737.07 crore (US$ 17.13 billion) while fund houses namely Reliance, ICICI Pru, Birla Sunlife and UTI followed. By the end of 2011, there were a total of 44 fund houses in the country as against 42 in the first quarter of the year.
  • 49. PRIVATE EQUITY(PE), MERGERS & ACQUISITIONS(M&A) IN INDIA• Global consultancy firm Ernst & Young (E&Y) has stated that the value of M&A deals involving Indian companies aggregated to US$ 34.4 billion in 2011 involving 806 transactions. There were 177 outbound deals with an aggregate disclosed value of US$ 8.8 billion in 2011; forming 25.6 per cent of the total M&A pie.• Adani Enterprises acquisition of Abbot Point Coal Terminal in Australia (US$ 2 billion) and the GVK Groups purchase of Australia-based Hancock Coals Queensland coal assets (US$ 1.3 billion) were among the biggest outbound deals recorded in 2011.• According to data released by auditing and consultancy firm KPMG, India Inc witnessed a 31 per cent increment in PE investment to US$ 7.89 billion during the first three quarters of 2011. PE firms like Blackstone India and Kohlberg Kravis Roberts & Co (KKR & Co) are betting high on Indian markets. The Blackstone India chief was reported to have said that he intends to close 5-6 deals a year in India whose financial valuations would revolve around roughly US$ 100 million to US$ 120 million each
  • 50. INDIAN FINANCIAL MARKETA Financial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend.• Money Market- The money market ifs a wholesale debt market for low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions.• Capital Market - The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year.
  • 51. INDIAN FINANCIAL SYSTEM
  • 52. INDIAN FINANCIAL MARKET • The money market ifs a wholesale debt market for low-risk, highly- liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market isMoney dominated mostly by government, banks and financial institutions.Market- • The capital market is designed to finance the long-term investments. The transactions taking place in this market willCapital be for periods over a year.Market
  • 53. INDIAN FINANCIAL MARKET • The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in thisForex market. This is one of the most developed and integrated market across the globe.Market • Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate and individuals.CreditMarket
  • 54. Constituents of a Financial System
  • 55. FINANCIAL INSTRUMENTS MONEY CAPITAL HYBRID MARKET MARKET INSTRUMENTSINSTRUMENTS INSTRUMENTS
  • 56. MONEY MARKET INSTRUMENTSThe money market can be defined as a market for short-term money and financial assets that are near substitutes for money. The term short-term means generally a period upto one year and near substitutes to money is used to denote any financial asset which can be quickly converted into money with minimum transaction cost.
  • 57. MONEY MARKET INSTRUMENTS Call/Notice Money Treasury Bill Term Money Certificate of Deposit Commercial Papers
  • 58. Call/Notice MoneyCall/Notice money is the money borrowed or lent on demand for a very short period. When money is borrowed or lent for a day, it is known as Call (Overnight) Money. Intervening holidays and/or Sunday are excluded for this purpose. Thus money, borrowed on a day and repaid on the next working day, (irrespective of the number of intervening holidays) is "Call Money". When money is borrowed or lent for more than a day and up to 14 days, it is "Notice Money". No collateral security is required to cover these transactions
  • 59. Term Money Inter-bank market for deposits of maturity beyond 14 days is referred to as the termmoney market. The entry restrictions are the same as those for Call/Notice Money exceptthat, as per existing regulations, the specified entities are not allowed to lend beyond 14 days.
  • 60. Treasury BillTreasury Bills are short term (up to one year) borrowing instruments of the union government. It is an IOU of the Government. It is a promise by the Government to pay a stated sum after expiry of the stated period from the date of issue (14/91/182/364 days i.e. less than one year). They are issued at a discount to the face value, and on maturity the face value is paid to the holder.
  • 61. Certificate of DepositCertificates of Deposit (CDs) is a negotiable money market instrument nd issued in dematerialised form or as a Usance Promissory Note, for funds deposited at abank or other eligible financial institution for a specified time period. Guidelines for issue of CDs are presently governed by various directives issued by the Reserve Bank of India, as amended from time to time.
  • 62. Commercial PapersCP is a note in evidence of the debt obligation of the issuer. On issuing commercial paper the debt obligation is transformed into an instrument. CP is thus an unsecured promissory note privately placed with investors at a discount rate to face value determined by market forces. CP is freely negotiable by endorsement and delivery. The minimum maturity period of CP is 7 days. The minimum credit rating shall be P-2 of CRISIL or such equivalent rating by other agencies.
  • 63. CAPITAL MARKET INSTRUMENTSThe capital market generally consists of the following long term period i.e., more thanone year period, financial instruments; In the equity segment Equity shares, preference shares, convertible preference shares, non- convertible preference shares etc and in the debt segment debentures, zero coupon bonds, deep discount bonds etc.
  • 64. HYBRID MARKET INSTRUMENTSHybrid instruments have both the features of equity and debenture. This kind of instruments is called as hybrid instruments. Examples are convertible debentures, warrants etc.
  • 65. LIST OF TOP FINANCE COMPANIES IN INDIA• SBI Capital Markets Limited• Bajaj Capital Limited• IDBI Bank• UTI Mutual Fund• DSP Meriyll Lynch Limited• Birla Global Finance Limited• Housing Development Finance Corporation• PNB Housing Finance Limited• ICICI Group• LIC Finance Limited• India Infoline Limited
  • 66. BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES MARKETING
  • 67. BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES MARKETINGIn recent years, belief in the power of brands and brand management has spread far beyond the traditional consumer goods marketers who invented the discipline. For companies in almost every industry, including financial services, brands are important in a way they never were before and are now seen as vital assets central to the business. Why is this?
  • 68. BRANDING – THE KEY ISSUE INFINANCIAL SERVICES MARKETINGConsumers now have a staggering choice of products and services in each market sector, with added impetus for growth online, and a trusted brand stands out from the crowd. As international reach increases and companies expand abroad, the brand name acts as the focal point for new market entry. A strong brand offers all theseadvantages, and more. But what constitutes a brand and what are its components
  • 69. BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES MARKETING• The consumer’s perception of a brand is crucial to its success, so a good starting point is to examine perceived brand values. In my view, brand values can be divided into two categories:• Core values, universally relevant - the vital components of a strong brand• Support values, of particular relevance to a specific market sector.
  • 70. WHAT CONSTITUTES A BRANDCore brand values Support values Recognition/  Availability/distributio awarenes n Trust/reliability  Product design Quality  Product range  Innovation Value/price  Professional expertise Service
  • 71. BRANDING IN FINANCIAL SERVICES Branding in financial services has its own characteristics, the crucial element being consumer trust, after all the institutions are handling your money. For this reason in most cases the brand and the institution’s name are one and the same, as in the case of those quoted in the top 75.Brand and reputation management are thus very closely interlinked, forming an essential part of business strategy, with staff training on brand values an important support function. The need to maintain long term customer relationships and to provide high quality advice are also key to successful brands in the financial sector.
  • 72. CHALLENGES TO BRAND MANAGEMENT IN FINANCIAL SERVICESThe current worrying events in the marketplace are likely to favour big brands in the next few years as consumers turn to established institutions, with strong balance sheets, that they can trust in difficult times. Together these events present a formidable challenge to financial services management
  • 73. CHALLENGES TO BRAND MANAGEMENT IN FINANCIAL SERVICES• General loss of confidence in institutions, following the collapse of Enron and WorldCom, with the revelations of corporate malpractice in the US• loss of confidence closer to home from problems in the insurance• industry, first Equitable Life, now others including Royal Sun Alliance• The precipitous fall in the Stock Market and the subsequent negative impact• upon investments• Certain market sectors to which consumers are committed, such as with• profits and endowments, are not performing well, creating confusion and• anxiety• The much publicised pensions shortfall and the ending of company final• salary schemes
  • 74. FINANCIAL SERVICES— OBJECTIVES/FUNCTIONSFund raising Funds deployment Specialized services Regulation Economic Growth
  • 75. MAREKTING OF FINANCIAL SERVICESIntangibility, inseparability and heterogeneity aremanifested at both strategic and tactible levels in servicesmarketing.Marketing strategy provides the organisation with asustainable competitive advantage in the markets itoperates.Organization should understand consumer needs andidentifies how those consumers should be grouped intodifferent market segments.Product attributes, pricing decisions, methods ofdistribution and communication should all seek to reflectthe chosen position.
  • 76. • Intangibility • InseparabilityCHARACTERISTICS OF SERVICES • Heterogeneity • Perishability • Customer Orientation
  • 77. BANK MARKETINGProvides servicesAimed to satisfy customer’s needs andwantsNeeds and wants may be non financial innatureCompetitive element, efficiency andeffectivenessOrganizational objectives are still thedriving force Commercial objective to make profit Social Objectives
  • 78. Essentials for a Banks Success Cannot exist without customer Create, win and keep customers Organizational design should be oriented to the customer Deliver total satisfaction to the customer Customer satisfaction is affected by the performance of all the personnel of the bank.
  • 79. BANK MARKETINGProvides servicesAimed to satisfy customer’s needs andwantsNeeds and wants may be non financial innatureCompetitive element, efficiency andeffectivenessOrganizational objectives are still thedriving force Commercial objective to make profit Social Objectives
  • 80. GUIDELINES ON ADVERTISEMENTS FORFINANCIAL PRODUCTS & SERVICES
  • 81. GUIDELINES ON ADVERTISEMENTS FOR FINANCIAL PRODUCTS & SERVICESThese guidelines cover the principles that apply to advertisements for financial products and financial services. This means advertisements about financial products and advertisements about advice in relation to financial products. The purpose of these guidelines is to assist members of Commercial Radio Australia understand the obligations that relate to these types of advertisements.
  • 82. TRADE PRACTICE ACTAs with the Trade Practices Act, the onus is on advertisers to ensure that advertisements for their financial products and services comply with the relevant law. Commercial radio stations that accept advertisements in the ‘ordinary course of business’ would not be liable for advertisements that breach these laws unless can be proved that a relevant person at the station knew or had a reason to suspect that the advertisement was misleading or deceptive. If the script for an advertisement is created by your station, it is necessary to get the approval of the advertiser for both the concept and all statements made in the advertisement
  • 83. SPECIFIC RULES DESIGNED FOR CONSUMERSMany financial products and services are subject to specific rules designed to ensure that consumers:• are treated efficiently, honestly and fairly, and• receive the information they need to make an informed decision about a financial product or service.The Australian Securities and Investments Commission (ASIC) enforces the law on financial products and services. ASIC is unlikely to find fault with advertising that follows these general principles.
  • 84. RISK TO AVOID When it may be misleadingClaims that need care and deceptive• ‘Independent advice’ or ‘impartial advice’ • If the adviser is getting paid commission or receives other benefits from a supplier• Free • If any direct or indirect costs apply or benefits are given up• Comparisons • If not done on a fair and equal basis or if unexpected assumptions are not stated• The best deal • If the deal is selected only from a limited range, not the whole market
  • 85. RISK TO AVOID When it may be misleadingClaims that need care and deceptive • If the claim is made without• ‘Expected to earn X%’, ‘high reasonable grounds or if risks are returns expected’, excellent understated returns forecast‘• Guaranteed returns • If returns are not truly guaranteed• ‘Returns of X% over the past • If the performance is based on selective, out of date or Y years’, ‘better than market hypothetical figures rates of return’, ‘top performer. • If the advertisement implies past performance will continue
  • 86. RISK TO AVOIDSituations that need care When they might breach the law • If the advertiser does not hold an• Express or implied ASIC licence to give either general recommendations about a or personal financial advice financial product (Loans are excluded from ASIC licensing, but the law against misleading and deceptive advertising still applies)• Personal endorsements • If the personality suggests relevant knowledge but has none
  • 87. RISK TO AVOIDSituations that need care When they might breach the law • If the personality suggests relevant knowledge but has none• Personal endorsements • If the product or service differs from• Correct labelling of a what people would usually expect from that label product or service • Holding out that a financial services provider is licensed when it is not, or if only a part of the advertised• Referring to Australian service is licensed financial services licences•
  • 88. RISK TO AVOID When they might breach theSituations that need care law • If the terms and conditions or• Offers or claims subject to qualifications greatly reduce terms and conditions or the benefits being advertised other qualifications and • • are not mentioned: • • are understated; or • • are hard to hear
  • 89. SPECIFIC FINANCIAL PRODUCTS ADVERTISING RULESBy law, advertisements for these types of financial products must:identify who is issuing the product; state that a product disclosure statement is available and where it can be obtained indicate that people should consider the product disclosure statement in deciding whether the product being advertised is appropriate for them
  • 90. ADVETRTISING OF SHARE OFFERS, DEBENTURES AND OTHER• SECURITIES the public for Share floats and raising of money from investing can involve complex legal requirements. Organisations issuing shares, debentures and other securities are required to make certain disclosures to potential investors via a prospectus or PDS and may also be subject to other rules.• Radio stations should ensure that an advertiser advertising a share offer has obtained legal advice about its requirements in relation to any advertisements for that offer.• Advertising of an offer of shares, debentures and other securities is not allowed unless a prospectus or PDS has first been lodged with ASIC.
  • 91. ADVETRTISING OF SHARE OFFERS, DEBENTURES AND OTHER SECURITIES• Once a prospectus or the product disclosure statement has been lodged with ASIC, any advertisement about a share float or the issuing of other securities must include a statement to the effect that:• (a) the offer is made in a copy of or accompanied by a disclosure document; and• (b) anyone wishing to invest or acquire the particular securities will need to complete the application form that will be in or accompany the disclosure document.
  • 92. SIGNS OF ‘SUSPECT’ ADVERTISERSOccasionally you may encounter financial products or services that breach Australian law. There are usually warning signs that can signal an increased risk of unlawful activity. For example:• Investments or investment advice operated from overseas (providers of financial products or services require an Australian Financial Services Licence).• Schemes for accessing superannuation ahead of genuine retirement.• Very high returns on investments, for example more than 15- 20% per year in today’s market or other implausible claims.
  • 93. CHALLENGES OF FINANCIAL SERVICE BRANDING
  • 94. CHALLENGES OF FINANCIAL SERVICE BRANDING Branding in financial services is undergoing substantial changes, owing to the dramatic increase in competition following deregulation and the threat posed by new entrants with retail branding experience. Success in what is fastbecoming an overcrowded market will depend on effective brand differentiation, based on theidentification, internalisation and communicationof unique brand values that are both pertinent to and desired by consumers.
  • 95. DIFFERENTIATING SERVICE BRANDS THROUGH VALUE MANAGEMENT• Branding in services marketing is about the blending of functional and emotional values . Free proposed that services branding was about values, which “represent the heart and soul of a company” . Emotional values in particular are becoming increasingly important in differentiating brands. Previous research indicated that a brand’s emotional added values are more sustainable than functional added values, which may be easily copied noted that, in common with fmcg marketing, financial services brands tended to focus on product features• rather than true brand values.
  • 96. DIFFERENTIATING SERVICE BRANDS THROUGH VALUE MANAGEMENT• Successful services brands attract, develop and retain staff who can translate the brand’s values into actions and behaviours perceived by consumers as appropriate and distinctive.• Having devised the cluster of internal values, managers then need to develop and promote the service brand to achieve alignment between the brand’s, staff’s and consumers’ values.• financial services branding faces a number of challenges. For consumers, choosing a financial services product is an important decision entailing high risk without the scope for trial or sampling alternatives and they promote intangible benefits.
  • 97. DIFFERENTIATING SERVICE BRANDS THROUGH VALUE MANAGEMENT• Services brand marketers’ perceptions about the values of their brand differ.• Financial services brands will have more functional values than emotional values.• The values of financial services brands are not unique brand values, but rather generic category values.
  • 98. VALUE OF FINANCIAL SERVICE BRANDS ARE NOT UNIQUE• The values of financial services brands are not unique brand values, but rather generic category values.• The early evolutionary stages of branding focus on the brand as a positioning device, drawing strongly on functional value. Branding in financial services is still a fairly recent development
  • 99. Financial services brands will have more functional values than emotional values.• Successful values management requires understanding and agreement about a brand’s values• by those responsible for brand strategy, before they can be cascaded to staff and consumers.• However, previous research has indicated that managers’ perceptions in the same firm may differ .
  • 100. THANK YOU