marketing of financial services

1. MARKETING OF FINANCIAL
SERVICES

2. FINANCIAL SERVICES
• Financial services are the professional services
involving the investment, lending and
management of money and assets.
• This term is also used to describe the
organisations that deal with the management
of money.
• Financial services are the largest market
resource within the world, in terms of
earnings.

3. FINANCIAL SERVICE INSTITUTIONS
• Retail, corporate and private banks
• Mutual funds and investment trusts
• Personal and group pension
• Credit card issuers
• Stock exchanges
• Leasing companies
• Brokers and agents
• Government saving institutions

5. PRODUCT
Lending and
credit services
• Overdraft
• Hire purchasing
• Property
construction
loan
• Variable term
loan
General
banking
services
• Domestic
transfers
• International
transfers
• Commercial
credits
Specialist
services
• Trust services
• Consultancy
services
Other services
• Payroll
management &
accounting
• Life insurance
planning
• Consumer
banking services

6. PRICE
• RBI regulates rate of interest & Indian Banks
Association controls other charges.
• Includes annual charges for the services,
penalties, commissions, charges for payment
of utility bills and differential interest rate.

7. PROMOTION
• Objective is to make people aware of new services,
to persuade & remind customers, build image of the
enterprise.
• Promotion tools are advertising, personal selling,
direct marketing, sales promotion & public relations.
• Advertising: Television, radio, movies
• Sales promotion: Gifts, discounts & commissions.
• Print media: Newspaper, magazines, hoardings
• Word of mouth is an important promotional tool.
• Personal selling: Personalised services.

8. PLACE
• Place offers a different side of value (utility) to
the customer.
• Making the service available & accessible to the
customer.
• Closer to the customer means higher probability
of purchase.
• ATMs and credit and debit cards offer
convenience to customers.
• Should have sound availability of electricity,
transportation & other necessary facilities for the
smooth functioning of the branch.

9. PHYSICAL EVIDENCE
• Physical evidence is classified as:
a) Peripheral evidence: Possessed by consumer, but
has little independent value (eg: cheque book)
b) Essential evidence: Cannot possessed by consumer
and has independent value (eg: bank branch)
• Used for promotion in terms of:
o Imaginative designs of bank brochures, flashy cheque
books.
o Attractive brand names, logos, symbols.
o Ambience, interiors, safety forms, documents.
o Tangibles(watches, calculator) as free gifts.

10. PEOPLE
• ‘People’ include all who are directly or
indirectly involved in the trade of the product
or service.
• Include both employees and customers.
• Institutions adopt internal marketing in order
to make the whole business customer-
oriented.
• Employee’s behaviour is important as they
takes the centre stage to achieve success.

11. PROCESS
• Processes are important to deliver a quality
service.
• The features of services; heterogeneity,
inseparability and intangibility makes this
element significant.
• Things to be considered:
• Flow of activities
• Standardization
• Customization
• Number of steps
• Customer involvement
• Eg: Loan application, clearance of cheque.

12. CHALLENGES FOR FINANCIAL SERVICES
• Life after the financial crisis
• Cross-border merger & acquisition activity
increasing
• Changing role of the bank branch
• Staying close to the customer
• Many customers are neither financially literate
nor very interested in financial services
• Many customers do not trust financial institutions
• The changing consumer

13. TRENDS IN FINANCIAL MARKETING
• Customisation & Personalisation
• Digital marketing
• Content marketing
• Integration of mobile
• Awareness of customer journey
• Mainstreaming social media
• Continuing battling with ad blocking
• Introduction of new channels