This document discusses marketing of financial services. It defines financial services as professional services involving investment, lending and money management. Some key financial service institutions are listed such as banks, mutual funds, pension funds, and stock exchanges. The marketing mix elements of product, price, promotion, place, physical evidence, people, process, and challenges and trends in financial marketing are then outlined.

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