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.

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. 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. 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. 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. 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. 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. Brief
Introduction
about the
Subject
7

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. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of Financial Markets in India
9

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. 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. 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. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
13

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)
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15. Physical Goods Vs Services
15

16. 16

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. The Second P: Pricing
18

19. 19

20. The third P: Place or Distribution
20

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
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22. 22

23. 23

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. The Fourth P: Promotion
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30. 30

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. 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. PROCESS
-Service Delivery
-Policies
-Procedures
-Customer Involvement
-Direction
-Workflow
-Complaints
-Response Time
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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. 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
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38. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75