This document summarizes 12 chapters on developing strategies for financial products and services. Some key points discussed include: - Financial products require qualifying customers and sustained customer contact over time. Customer service is important to avoid negative impacts. - Strategies can focus on cost leadership, differentiation, or targeting specific customer segments. - Different life stages have varying financial needs like risk protection, preserving savings, or managing retirement funds. Strategies must address both felt and latent customer needs. - Building long-term customer trust and loyalty requires a relationship-based approach across multiple products tailored to each customer's unique needs and situations over time.

1. GRAB THAT WALLET

2. Chapter 1
Financial products are different from physical products
• The prospect must qualify for the product.
• Involves sustained and periodic contact with producer.
• One mistake of service provider turns to a negative impact on
customer.
• They are not product but processes designed to deliver an
outcome.
• Handling customer is more important than the failure.
• Sustained focus for long term customer satisfaction.
• Conflict of interest between the companies and consumers.
• Acquiring the label and brand image of an institution.

3. Chapter 2
• The central theme of marketing is to create the sense of value
and possibly isolate that sense from the price paid.
• Porter’s model gives four ways to approach the marketplace
and create a sustainable position for the business.
• Cost Leadership ─ quoting lower rates
• Cost Focus ─ focus on small segment led by cost as a
competing factor.
• Differentiation ─ occupies a distinct mental position in terms
of value perceived / offered.
• Process-based differentiators provide distinct competitive
advantage.

4. Chapter 3
Issues arising from nature of the industry
• Conflict of interest with their customer
• Ownership involves continuous or periodic interface with company
• Failure product can be catastrophic for customer
• Long product usage
Problems in developing strategy
• Highly quantifiable and measurable
• Hard to visualize and protect
• Innovation is easily copied
• To qualify the prospect as eligible for a product
Business outcomes
• Frontline staffs and customer service has to bear burnt of customers
• Sales process is complex
• Burn out sales and service staff make any company look bad

5. Needs of portfolio matrix
Encounter quadrant (Q1) ─ Felt need for single
product
Know quadrant(Q2) ─ Latent need for single
product
Grow quadrant(Q3) ─ Felt need for portfolio
products
Value quadrant(Q4) ─ Latent need for portfolio
products

6. Chapter 4
• The segmentation in financial market is based on the stage of
life in which the customer is.
• Gathering ─ Early stage of life when needs are basic including
risk protection.
• Preserving ─ Middle stage when one needs preserve what one
has earned.
• Enhancing ─ Growing the money one has enhanced.
• Harvesting ─ It involves earning a decent return on
accumulated savings that can take care of retirement years.
• Felt needs ─ a need which a consumer knows he has.
• Latent needs ─ a customer which a consumer has but does
not know.

7. Consumer Responses Mapped to
Needs and Stages of Life
Felt need Latent need
Early stage Later stage Early stage Later stage
Basic
requirement
Search and
find
Bargain hunt Quickly
become a felt
need ;
customer
copies product
use from peer
or introducer of
product
Sophisticated
requirement
aspirational evolve May
demonstrate
urgency in
filling

8. Chapter 5
• Trustworthiness of a financial company is a hygiene factor.
• The representative of the company is the face of the
company.
• Greater the personal selling results in greater profit.
• The concept of trust chain is similar to concept to value chain.
• Building of trust chain is a delicate process.
• Trust building becomes organisational and organisation
becomes an institution.
I will use one
of your
services
I will use more
of your
services
If I shift
everything to
you
Take me
where you
think I should
be
… and test you
… and see if
you retain my
trust
My trust has
grown show
me I am right
You are the
right provider
for me

9. Chapter 6
• Silo based organisation is where the
concentration is on the product; single
product is promoted across the market.
• Relationship based organizations concentrate
customer by customer; multiple products are
promoted to the customer.

10. Chapter 7
• The products can be easily compared with competitors. So
higher vulnerability.
• The management respond with discounted prices or freebies.
• Low pricing power
• Low profitability
• Low customer loyalty
• High attrition potential

11. Chapter 8
• The goal in this quadrant is to get the customer to use a
second product which fills a latent need.
• Two distinct approaches:
1. Either your salesperson uncovers the latent need.
2. Your strategy involves a pre-planned second product which is
aimed to be sold after the first sale in Q1.
• A salesperson calls with a meaningful uncovering of latent
needs changes the image of the company.
• Comparability comes down.
• The pricing power increases.
• Improves the image of the company.
• The attrition comes down.
• Increases in sales numbers results in increase in profitability.

12. Issues in harnessing the Know Quadrant
• Need to think how they will bridge from first to second
product.
• Need to equip their front-end adequately in uncovering of the
latent needs.
• A latent need once uncovered no longer remains latent.
• There is no assurance that the customer will fill the latent
need at a later date with the same company.

13. Chapter 9
• The customer has felt needs for multiple products.
• The companies with product portfolio which are able
1. To connect their set of products for logical use with one
another.
2. To obtain a single view of their customers.
• Lack of strategic awareness is the major problem.
• The customer shift from Q1─Q3 because the customer find us
to be cost leaders.
• The customer shift from Q2─Q3 because the customer find
that we can think for him, about him.
• It is an opportunity to earn trust in the form of taking up
thankless tasks.

14. • The comparability comes down a good bit if multiple needs
are met with a clutch of products.
• The pricing power improves.
• Interlinked usage of products increases convenience.
• Less easy to shift the business to another producer due to
linkage and convenience.
• The cost and time of shift are high.
• The first win is to avoid getting into a series of questions for
each products.
• The second win is to establish the portfolio benefits from
consolidating the usage of products into one producer.

15. Chapter 10
• The customer is happy to buy everything from this company.
• The company provides portfolio of products which are
logically set and have single view of customer.
• Product Design ─ producer must find a fit in one of the logical
set in the portfolio available already.
• Product Launch ─ many products are delivered and producer
would like to charge premium.
• The gap in offering can become a entry quadrant for
competitor.
• This quadrant offers impressive advantages.
• Tries to ensure that points of comparison do not arise.
• Pricing power increases since the customer perception of
value increases.

16. • It is too inconvenient to buy a product from elsewhere, hence
attrition rate is low.
• Hunter group work in product silos by operate vertically
chasing one customer after another.
• Harvester group work for the process of customer value
management by selling one product more.
• This quadrant has to be in a relationship mode for
relationship-based and hybrid organisation.
• The problems are spoilt of available database and the wear
and tear of front end tele-callers and salespersons.

17. Chapter 11
• Migration of quadrants from Q1-Q2-Q3-Q4, Q1-Q3, Q1-Q4
and Q2-Q4.
• Shifts in the Need axis involves the organisation know its
product set and how to fit in customer’s scheme of things,
education of all customer touch points, create different sales
group for each quadrant.
• Shift on the Portfolio axis involves the consolidation of
process, enablement of technology and CRM.

18. Chapter 12
• Need to build a long-term sustainable portfolio.
• Strategy free results in short term but do not tie in to longer
term goals.
• An institution is an organisation that involves in pursuit of its
mission.
• A mission is never done; it is a lifetime’s work.
• Goals drive the mission.
• Targets are breakdown into goals.
• All these have to be aligned.