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Marketing of Financial Products and Services

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Financial Market is a mechanism that allows people to buy and sell financial securities (such as stocks and bonds) and items of value at low transaction cost.

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Marketing of Financial Products and Services

  1. 1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Affiliated to Institution of G.G.S.IP.U, Delhi Marketing of Financial Products and Services (MFPS) Manish Sharma Assistant Professor
  2. 2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Marketing of Financial Products and Services (MFPS) Paper Code: BBA (B&I) 303 Objectives: • The basic objective of this course is to acquaint the students about the various types of financial products and services and how these are to be marketed. • It will also develop an understanding among the students regarding recent developments in Marketing of Financial Products & Services. 2
  3. 3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Scope of MFPS / Need of studying MFPS • Specialization in Banking and Insurance • Knowledge about different financial products and services and how these are to be marketed. • Jobs in Financial Service Sectors: Banking Industry Insurance Industry Mutual Fund Industry Pension Fund Industry Stock Broking Services Other Financial Services 3
  4. 4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Course Contents: Unit I No. of Hrs.:10 Marketing of Financial Services- a conceptual framework. Types of Financial Markets in India- an overview. Concept of Marketing and Marketing Mix, 4 P’s of Marketing. Unit II No. of Hrs.:12 Marketing of Banking Services – Banking products and services; Distribution, Pricing and Promotion Strategy for Banking Services; Attracting and Retaining bank customers. Marketing strategy of credit cards, debit cards, saving accounts and different types of loans, barter card. Unit III No. of Hrs.:12 Mutual Funds Markets in India and the Marketing strategies involved. Marketing of insurance products- Life and Non Life Products. Marketing of Pension Funds. Unit IV No. of Hrs.:10 Concept of Distribution, multiple delivery channels/ATM, EFT, CMS, POS and Bancassurance. Promotion- marketing information & research, public relations and publicity, image building. Globalisation and its impact on financial services. 4
  5. 5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Book for MFPS Title: “Marketing of Financial Products and Services” Authors: Manish Sharma & Sunil Kadyan Publisher: Triumph Publications 5
  6. 6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Other Books Text Books: 1. Suri, R.K., “Services Management”,Himalaya Publication,2005. 2. Jha, S.M., “Bank Marketing”,Himalaya Publication,2003. Reference Books: 1. Ratna,V.V., “Services Marketing”, Wisdom Publications, 2005. 2. Varshney, R.L and Gupta,S.L., “Marketing Management”,Sultan Chand & Sons, 2005. 6
  7. 7. Brief Introduction about the Subject 7
  8. 8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Financial Market • Financial Market is a mechanism that allows people to buy and sell financial securities (such as stocks and bonds) and items of value at low transaction cost. There are mainly two types of financial markets: • Money Market is a market for short term financial assets that are close substitutes for money. (e.g. Call Money, Treasury Bills) • Capital Market deals with funds having long maturity (more than a year) or an indefinite maturity. (e.g. Bonds, equities) 8
  9. 9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Types of Financial Markets in India 9
  10. 10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Financial Services that Need Marketing • Banking Services  Credit Cards  Debit Cards  Saving Accounts and Different type of Loans • Mutual Funds • Insurance Products  Life  Non-Life • Pension Funds • Stock Broking Services • Other Financial Services 10
  11. 11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 What is Marketing…?? • Selling? • Advertising? • Promotions? • Making products available in stores? • All of the above, plus much more! 11
  12. 12. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Marketing Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Philip Kotler Dennis Adcock defines marketing as: The right product, in the right place, at the right time, at the right price. Marketing is an art of selling satisfaction to a Customer. 12
  13. 13. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 13
  14. 14. Marketing Mix 1. Product 2. Price 3. Place 4. Promotion 1. Product / Service Package 2. Price 3. Place 4. Promotion 5. People 6. Process 7. Physical Evidence Physical Goods: (4 P’s) Services: (7 P’s) 14
  15. 15. Physical Goods Vs Services 15
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  17. 17. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 The first P: Service Product or Service Package Services are benefits which are offered to the target market. • Education: Different courses that a Institute offers. • Banking: Debit cards, credit cards, different types of loans and current and saving accounts. • Insurance: Life Insurance and Non-life Insurance. 17
  18. 18. The Second P: Pricing 18
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  20. 20. The third P: Place or Distribution 20
  21. 21. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Modern Thinking in Distribution of Services If Customers Can’t Reach You, Reach Your Customers 21
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  24. 24. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Under the concept of Bank on Wheels the following financial services are available to the rural Indians at their villages. 1. No Frills Savings Bank Account – Cash Deposits/Withdrawals 2. Savings Bank Tiny Recurring Deposits Account 3. Remittance / Money Transfer Facility 4. Loans / Overdraft Facility 5. Life Insurance Products 6. Other Services No Frills Savings Bank Account • Proof of Address is needed • Proof of Identity is needed • Passport size photos needed • Filled in Account Opening form is needed
  25. 25. The Fourth P: Promotion 25
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  31. 31. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 The fifth P: People (People are) . . . All human actors who play a part in service delivery and thus influence the buyers' perceptions; namely, the firm's personnel, the customer, and other customers in the service environment. Zeithaml et al (2008) • People are an extremely important element of the marketing mix in services marketing 31
  32. 32. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 The Sixth P: Process • (Process is) . . . The actual procedures, mechanisms, and flow of activities by which the service is delivered – the service delivery and operating systems. Zeithaml et al (2008) 32
  33. 33. PROCESS -Service Delivery -Policies -Procedures -Customer Involvement -Direction -Workflow -Complaints -Response Time 33
  34. 34. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 The Seventh P: Physical evidence (Physical evidence is) . . . The environment in which the service is delivered, and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service. Zeithaml et al (2008) 34
  35. 35. Designing Facilities Signposts Equipments Interiors Exteriors Displays Lighting Ventilation Drinking water Waiting Lounge Scent Music Reports Brochures Parking Dresses and Uniforms Color Combinations Logos Physical Evidence and Attractions 35
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  38. 38. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75

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