The document discusses marketing mix and its application to financial products. It defines marketing mix as the set of tools used by a firm to pursue its marketing objectives. For financial services, the traditional 4P marketing mix of product, price, place and promotion has been expanded to a 7P mix with the addition of people, process, and physical evidence. This is due to the intangible nature of services. The document then focuses on the product element of the mix, discussing topics like product mix, product life cycle, innovation, and the product development process for financial institutions.

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Marketing of
Financial
Products
Lecture – 4
Parveen Sharma
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MoFP for
TKW’s

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Contents
Marketing Mix
 The concept
 Marketing Mix - Product
 Defining Product
 Product Mix
 Product Life Cycle
 The Boston Matrix
 Product Strategy for FI’s
 Product Development Process
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TKW’s
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 It is the set of tools that the firm uses to pursue its marketing
objectives in the target market
 Levers marketers adjusts to satisfy customers
 Marketing mix is composed of a large battery of advices which might
be employed to induce customers to buy a product.
Marketing Mix = Controllable Variables(4P’s)
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Marketing Mix
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Market Segmentation – The concept
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Traditional Marketing Mix Modified Marketing Mix

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Market Segmentation – The concept
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Consumer: Life stage solution by Money Back plans
Consumer convenience
Consumer Cost as Price

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 It is appropriate to reconsider the traditional marketing mix in concept of
services. As the challenges encountered by service marketers – like
inseparability & perishability necessitate the extension of marketing mix to
include People, Process & Physical evidence.
The Extended Marketing Mix(7P’s)
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Market Segmentation – The concept
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TKW’s
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical Evidence

7. NN
The additional P’s in Service Marketing
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 Simultaneity or inseparability of service provider from customer
(People)
 Inability to hold inventory marking it critical for the service process to
flow smoothly to match demand & supply(Process).
 The need to make highly intangible service offering appear tangible
(Physical Evidence).
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8. NN
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 Kotler opines ‘A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or
need’.
A Glance at Banking Products
Marketing Mix - Product

9. NN
Marketing Mix - Product
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Do not just sell Products instead sell solution that customer needs.

10. NN
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Marketing Mix - Product
Product Mix
 Set of all products offered for sale/investment
 It consists of various Product Lines
 Dimensions of Product Mix
 Width
 Depth
 Length
Product Mapping: to show the position of a companies products
against competitors products

11. NN
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Marketing Mix - Product
A Look at the broad Product Mix of DSP
Blackrock AMC
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Product Mix Road Block advertisement by Chase

12. NN
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Marketing Mix - Product
Product Life Cycle
 No product can get a consistent positive response for longtime, hence if FI’s are
aware of PLC stage of their products necessary steps can be taken to overcome
the adverse condition.
 PLC helps marketers in making possible optimal development of marketing
resources.
 PLC is not applicable to generic banking services like Current A/c, Saving
A/c…

13. NN
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Marketing Mix - Product
Product Innovation
 Product innovation & modification
is very crucial to increase the sales of
a saturated /matured products.
Reliance Any Time Money Card collects Rs.
1,500 crore. The fund house has issued over 3
lakh ATM cards to investors so far(as on Jan
2012). Reliance ATM Money Card was launched
in 2006 and modified Nov 2011.
Source: Café Mutual

14. NN
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Marketing Mix - Product
The Boston Matrix

15. NN
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Marketing Mix - Product
Product Strategy for FI’s
 Sound Product Mix
 Blend of Core & Peripheral services
 Identify emerging opportunities
 Continuous product innovation & development
 Sound product focus and management
 Declare your product obsolete much easier than others
 Product Association & Tie ups
Equal focus on the other P’s, C’s.

16. NN
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Marketing Mix - Product
Product Development Process
IdeaGeneration
Internal
- Product Function
- Sales
Requirement
- Other Employees
External
- Distributor
- Competitors
- Suppliers
- Technological &
regulatory
developments
Screening
Ascertaining
whether the
proposed product is
in sink with the
organization
objective
BusinessAnalysis
Analyzing chances
of success by
formal research
Quantitative
parameters
- Demand forecast
- Cost projections
- Competitive
activity
Development
Turning the product
concept in reality
Includes:
- Filing
--Launching

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? ueriesQ
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Contact me @ +91-9050050288
or
Email to parveen_72@yahoo.in

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Term for the Lecture
18 MoFP for
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RBI key policy rates
Repo
Reverse Repo
CRR
SLR

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Thank
You
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