Financial services marketing


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Financial services marketing

  1. 1. MARKETING By-mynk
  2. 2. MARKETING CONCEPTA situation where buyers and sellers of acommodity interact.Coming together of buyers and sellers ofthe same or similar commoditiesTYPES OF MARKET Geographical Area Product Nature of Transaction Volume of Transaction
  3. 3. MARKETINGMarketing is the process of determiningconsumer demand for a product or service,motivating its sale and distributing it intoultimate consumption at a profit A management function A Business Philosophy
  4. 4. EVOLUTION OF MODERN MARKETING Industrial revolution Digital revolution Barter System Customer and market driven Wants of customers CRM Customer Satisfaction Nothing is worthwhile unless it touches the customer
  5. 5. MARKETING VS SELLINGMARKETING MANAGEMENTA process of planning and executing theconception, pricing , promotion and distribution ofgoods and services and ides to createexchanges with target groups that satisfycustomer and organizational objectives.FUNCTIONS OF MARKETING MANAGEMENT Analysis Planning Implementation Control
  6. 6. IMPORTANCE OF MARKETING FORINDIAN BANKS"The relevance of aggressive marketingin banks has come to the fore as neverbefore" - M N Goiporia.CHARACTERISTICS OF SERVICES Intangibility Inseparability Heterogeneity Perishability
  7. 7. SERVICEA service is any act or performance thatone party can offer to another that isessentially intangible and does not resultin the ownership of anything. It’sproduction may or may not be tied tophysical product.
  8. 8. S.No. Physical Goods Services 1. Tangible Intangible 2. Homogeneous Heterogeneous 3. Product and distribution Production, distribution separated from and consumption re consumption simultaneous process 4. A thing A activity 5. Core value produced in Core value produced in factory buyer-seller interaction 6. Customers do not Customers participate in participate in the production production process 7. Can be kept in stock Cannot be kept in stock 8. Transfer of ownership No transfer of ownership
  9. 9. MAREKTING OF FINANCIAL SERVICESIntangibility, inseparability and heterogeneity aremanifested at both strategic and tactible levels inservices marketing.Marketing strategy provides the organisation witha sustainable competitive advantage in themarkets it operates.Organization should understand consumer needsand identifies how those consumers should begrouped into different market segments.Product attributes, pricing decisions, methods ofdistribution and communication should all seek toreflect the chosen position.
  10. 10. BANK MARKETING Provides services Aimed to satisfy customer’s needs and wants Needs and wants may be non financial in nature Competitive element, efficiency and effectiveness Organizational objectives are still the driving force Commercial objective to make profit Social Objectives
  11. 11. 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.
  12. 12. MARKETING MIX Key concept in the modern marketing Considered to be core of marketing It is the set of tools that the firm uses to pursue its marketing objectives in the target market Decisions must be made for both the distribution channels and the final consumers
  13. 13. Marketing Lessons OLD NewProduct ConsumerPrice CostPlace ConveniencePromotion Communication
  14. 14. Wining companies are those that canmeet customer needs economically andconveniently and with effectivecommunicationServices Marketing Mix – 7P’sProduct, Price, Place, Promotion, People, Physicalevidence, Process
  15. 15. PRODUCTA product is anything that can be offeredto a market for attention, acquisition, useor consumption that might satisfy a wantor needPRODUCT PERSONALITY THE CORE THE ASSOCIATED FEATURES THE BRAND NAME & LOGO THE PACKAGE AND LABEL
  16. 16. PRODUCT LEVELSCore benefit, basic product, expectedproduct, Augmented product and Potentialproduct.PRODUCT CATEGORY Durability, tangibility and use Product item, Product Line, Product mix Banking product
  17. 17. PRODUCT PLANNINGThe process of product planning consistsof determining the strategies in respect ofvarious elements. Product Line, ProductMix, Branding, Packaging and Newproduct development.PRODUCT LIFE CYCLEIntroduction, Growth, Maturity, DeclineThe product Life cycle operates at threelevels product level, product sub category,brand level.
  18. 18. WEAKNESS OF PLC CONCEPT Undefined concept No uniform shape Unpredictable turning points Unclear implicationsPRODUCT STRATEGIES Strategies based on Product Mix Strategies based on Product Life Cycle
  19. 19. PRODUCT MODIFICATION Quality Improvement Feature Improvement Style ImprovementPRODUCT ELIMINATIONGROWTH STRATEGIES Intensive Integrated Diversification
  20. 20. NEW PRODUCT DEVELOPMENT Idea Screening Concept Testing Product Development Test Marketing Commercial LaunchDIVERSIFICATION Concentric Diversification – technologically related but the target customers are entirely different Horizontal Diversification - technologically unrelated but the target customers are same Conglomerate Diversification – no relationship with the existing product
  21. 21. BRANDING Line Extension Brand Extension Multi brands New BrandsPACKAGING Primary Package Secondary Package Shipping PackageLABELLING Identify the product or brand Describing information Promoting the product through attractive graphics
  22. 22. PRICINGPrice is the sum value of all the valuesthat consumers exchange for the benefitsor having or using the product or service Different forms - Goods bought, hire charges, tution fees Dynamic Pricing - Varying prices Flexibility
  23. 23. OBJECTIVE OF PRICING Profit Survival Market Share Cash Flow Status Quo Product Quality Communicating Image Short term/Long termFACTORS INFLUENCING PRICING The Customers Demand Schedule The Cost Function and Competitors Prices
  24. 24. PRICING METHODS Mark up Pricing Variable costs and contribution for fixed costs Absorption cost Pricing margin for profit Target Return Pricing Return on the investment Marginal cost Pricing Direct variable costs are fully realized Only a portion of fixed costs may realized Perceived Value Pricing Buyer’s perception of value Value Pricing Product with high value at a fairly low price Going Rate Pricing Based on competitor’s prices
  25. 25. PRICING METHODS (Contd..) Auction Type Pricing English Auctions One seller many buyer Dutch Auctions Sealed Bid Auctions Group Pricing.
  26. 26. Pricing Strategies Geographical pricing Price discount and allowances Psychological pricing Promotional pricing Loss-leader pricing Loss is covered by sale of other items Special event pricing Cash rebates Low-interest financing Longer payment terms Warranties and service contracts Psychological discounting
  27. 27. Pricing Strategies (Contd.) Discriminating pricing First degree different prices to each customer depending upon their intensity of demand Second degree Lower prices for buyers of a larger volume Third degree Customer groups – student, senior citizen Product form Image pricing Channel Location Time
  28. 28. Pricing Strategies (Contd.) Product-mix pricing Product line pricing –developing product line Captive-product pricing – main product at lower price, ancillary product at higher price Two-part pricing – split into fixed and variable component By-product pricing – by-products obtained in production of other products Product-bundling pricing Market skimming pricing Market-penetration pricing
  29. 29. Distribution Distribution channelMarketing channels are sets of independent organizations involved in the process of making a product or service available for use of consumption.
  30. 30. Functions of distribution channels Market information Promotion Contact Matching Negotiation Product information Physical distribution Financing
  31. 31. Channels typesChannel 1, Channel 2, Channel 3, Channel 4,Factor influencing channel section Product characteristics Perishable products Consumer durables Industrial products Market characteristics Customer characteristics Company resources Competition Product lines
  32. 32. Channels for banking products Intangibility Inseparability Variability Perishability Client relationshipBranchesOther channels Tele-banking ATMs Computerization Plastic Cards Virtual branches and automated video banking
  33. 33. Intermediaries in banking services DSA Automobile Dealers Merchant establishmentsPhysical distribution Transportation Warehousing InventoryTasks of physical distribution Forecasting Order processing Inventory management Storage Protective packaging Transportation
  34. 34. PromotionRole of promotion Persuasion Inform Reminding Reinforcing
  35. 35. Promotion mix Blended Mix of Promotion Tools PersonalAdvertising selling Sales PublicPromotion Relations Direct Marketing
  36. 36. Promotion mix strategies • Push strategy -Retailer • Pull strategy - CustomerFactors influencing promotion mix • Types of product/market • Buyer’s readiness stage • PLC stagePromotion mix integration
  37. 37. Marketing Information System (MIS)Features of MIS Master Plan Coordination Future Orientation Computerized Environment Analyse Quantitative Information Regular flow of Information
  38. 38. Functions of MIS Collecting and assembling data Processing of data Analysis of data Storage of data Discrimination of information
  39. 39. Need of MIS Complex marketing activity Knowledge /information explosion Communication gap Prompt decision Non-price competition
  40. 40. Kinds of information needed • Information about market forces • Information about the bank’s market behaviour • Internal informationComponents of MIS • Internal marketing information • Marketing intelligence system • Marketing research systemAdvantages of MIS
  41. 41. Thankyou…!