This document discusses product knowledge for bankers. It defines product knowledge as a banker's awareness and understanding of a bank's products, features, pricing, and benefits. Financial services are intangible and have characteristics of intangibility, perishability, variability, and inseparability. A banker must understand these characteristics as well as a product's features and benefits in order to effectively communicate with customers. The document provides tips for acquiring product knowledge through various sources and emphasizes the importance of product knowledge, especially for salespeople. It states that product knowledge strengthens communication, boosts confidence, and helps overcome objections.

1. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Personal Services
Product Knowledge
The Competitive Environment
Selling Skills
Customers Service
Sales Interviews
MODULE COVERAGE
1
Introduction to Marketing
Customer Relationship Management

2. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Definition of product knowledge
Product knowledge is about a banker’s awareness and understanding
of the bank’s products, their features, pricing and benefits.
Features:
For the usual products, product features referrer to physical, tangible,
measurable characteristics of a product. You can see, hear, smell,
feel or taste them. Features answer the question “What is it?”
Features are easy to determine because they are usually obvious,
appearing on the packaging or label or readily observable.
In banking, the products are intangible that is to say they come in form
of a service. According to Kotler, a service is ‘any act or
performance that one party can offer to another that is essentially
intangible and does not result in the ownership of anything.
The common characteristics of financial services and products which
make their marketing unique are: intangibility, perish ability,
variability, inseparability.
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3. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Intangibility
• Financial services are activities performed by the financial
institution but unlike physical products they cannot be seen, tasted,
felt, heard or smelt before they are consumed.
• The marketer of financial services cannot therefore rely on product-
based clues that the buyer generally employs in alternative
evaluation prior to purchase.
• Financial service providers can try to increase the tangibility of
services by making the tangibles which support the delivery of
financial services very appealing.
• This is perhaps why banks have very lovely customer reception
areas, neatly printed cheque books. You must realize at this point
that in marketing financial services, it is easier for you to emphasize
the benefits of the service rather than just describing the features.
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4. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
• Since, financial services
are not tangible, they
do not have features
that appeal to the
customer’s senses, and
their evaluation, unlike
goods, is not possible
before actual purchase
and consumption
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5. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Inseparability
• Financial services are typically produced and consumed
simultaneously. Physical goods are manufactured into products and
distributed through multiple resellers to be consumed later.
• Financial services on the other hand cannot be separated from the
service provider. What this means is that the financial service
provider becomes a part of the service. It follows that services
cannot be produced now for consumption at a later stage.
• This creates a new dimension to financial service marketing which is
often referred to as inseparability. The physical presence of
customers is essential in marketing financial services.
• Inseparability of production and consumption increases the
importance of the quality in financial services. Therefore, financial
service marketing not only needs to develop task-related, technical
competence but also, requires a great input of inter-personal skills.
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6. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Perish ability
• As you saw in the definition of a service, financial services can be referred
to as acts or performances whose consumption takes place
simultaneously; that is to say, they tend to perish in the absence of
consumption. Financial services like other kinds of service cannot be
stored. The services go waste if they are not consumed simultaneously i.e.
value of service exists at the point when it is required.
• The perishable character of services adds to the complexity of marketing
financial services. The inability of service sector to regulate supply with
the changes in demand; poses many quality management problems.
Hence, service quality level deteriorates during peak hours in banks.
Variability
• Financial services are highly variable, as they depend on the service
provider, and where and when they are provided. Banks face a problem in
standardizing their service, as it varies with the experience of staff, type of
customer, and sometimes even time of the day.
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7. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Benefits of product knowledge
• While features tell a client what the product or service is, they don’t
necessarily sell the product to the client. Benefits sell it, hence the
saying in sales “features tell; benefits sell”.
• Benefits provide the answer to the client’s question, “What’s in it
for me to buy this product?” As a banker, you should know the
entire bank’s products in such great detail that you are able to
articulate the suitability of each of them to various kinds of
customers.
• Benefits are the advantages that a product, by virtue of its features
can deliver utility or satisfaction to customers. Knowledge is power
and for banking, product knowledge can mean more sales.
• It is difficult to effectively sell bank services to a consumer if we
cannot show how a particular service or product will address their
needs.
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8. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
The key advantages of having detailed and accurate product knowledge is
that it;
• Strengthens our communication with customers and prospects as we sell
or popularize the product
• Boosts our belief in the product and thus personal enthusiasm about it,
making us passionate as we sell the product
• Enhances our confidence, which can persuade the customer to believe us
• Assists in overcoming objections: objections by customers can often be
overcome with factual information regarding the product, which we can
very well articulate when we have full product knowledge.
• It is therefore important for every banker to fully understand each
product, its rationale, target market, features, pricing and how it blends
with other products.
It may take a while to fully master all the products in the bank, especially with
new products being developed, but over time you can become
comfortable and confident in providing the correct information to clients.
As a banker, you need to be well versed with both the products of your
bank as well as those of competitors.
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9. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
How to acquire product knowledge
Sources of product knowledge are many and varied, Below are the most common
i) Education and training
• Bankers in these modern times of superfast information and fierce competition,
need good education and training on the subject of banking and finance. A degree
is now almost the mandatory minimum qualification for any banker, save for the
lowest subordinate grades of staff.
• Additionally, bankers need to frequently attend special training in areas of core
banking as well as general good business practices so that they become more
knowledgeable, up-to-date and highly relevant. Most banks conduct in-house
courses/workshops to get all their staff informed on all the products.
ii) Experience
• Experience is the most important source of information for product knowledge for
a banker. A keen banker will learn a lot each day, week and month of work in the
working environment both within and outside his/her direct area of work.
• He/she also learns a lot from with the hundreds of customers of different types
that he or she serves/meets daily, enriching product desirability from the
customers’ side.
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10. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
iii) Senior salespersons and long term customers
• Salespersons in a bank can be the most accurate and quick source of
product knowledge to fellow bankers. If you are not in sales, you might
consider regularly finding time to be with a sales person who can brief you
about the products in a comprehensive way.
• Customers who have been with the bank for a long time can also be a
good source of product information, especially from the consumer’s
viewpoint of suitability.
iv) Advertisements
For bankers working away from the mainstream operational departments,
advertisements containing salient features of the products can be good
source of product knowledge.
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11. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
v) Benchmarking
Studying brochures, tariff guides, websites and profiles of competitors can
enrich a banker’s knowledge of the other products in the market, which
can aid realistic comparisons with in-house products.
vi) Banking magazines, newsletters and libraries
It is advisable for every banker to subscribe to and regularly read the two
quarterly magazines produced by the Uganda Institute of Banking &
Financial Services (UIBFS) namely; The Ugandan Banker and The
Microfinance Banker. Product information can also be gathered from
libraries of the Institute as well as those of Bank of Uganda and
commercial banks.
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12. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Importance of product knowledge for a salesperson
A thorough knowledge of the product helps the salesperson in a bank to
increase sales, obtain larger orders and render better services to the
customers. Up-to-date knowledge of the existing products as well as the
new products is essential for the banker to sell efficiently in competitive
situations. The following are the reasons as to why a banker should have
perfect knowledge of the bank’s products:
i) Personality is not enough
Sales personality without product knowledge is just like a body without soul.
A salesman having excellent personality can ensure sales. Though
personality is the starting point of any sale, perfect knowledge of the
products backs the salesman in dealing with the customer and impressing
them.
ii) Better sales
• A salesman sells benefits of a product. Unless he knows the product in
detail he can not provide information to the customers about the product
and its utilities. Product knowledge helps a salesman to satisfy customers
and ensures faster and better sale of the products..
12

13. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
iii) Strengthens self-confidence
• A thorough knowledge of the product, its capacity, performance
limitations, helps the salesman to speak with self-confidence and
courage.
• He can not be defeated either by the customers or rivals. Detailed
knowledge of the product helps the salesman to overcome
customers’ doubts and suspicions about the products.
iv) Selling becomes a pleasant task
• The sense of mastery that comes with full product knowledge
makes the selling job more pleasant to the salesman. The salesman
feels something lacking without the perfect product knowledge and
he can not find his job satisfactory.
• A self- satisfied salesman naturally ensures better sales. He finds his
job enjoyable only when he has complete mastery over his
products.
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14. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
v) Ensures satisfactory meeting of objections
• Generally buyers enquire about the nature, function, design, price
of the product from the salesmen. Prompt answers from the
salesman make them impressed. A salesman without adequate
knowledge about the product may not be able to meet questions,
objections, or suspicions raised by the customers about the
product.
vi) Beating competition
• Products are becoming complex and are changing day by day. Thus
the victory of selling over competitors depends on the up to date
detail and technical knowledge of the products. A competent
salesman remains well equipped with information about the
products like a warrior in the field of selling.
•
14

15. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
In totality, the key knowledge points for the banking products salesman
are;
(a) Knowledge of the bank
Knowledge regarding the philosophy and total offering of the bank helps
the salesperson to present the image of the bank before the
customers.
b) Knowledge of products
The salesperson deals with different types of products in the bank. The
salesperson should acquire technical knowledge in selling the all types
of products. This will help him to point out to customers the usefulness
of the products.
c) Knowledge of market conditions
The market is always changing and the salesperson should closely note
these changes. The changes in customer behaviours should be noted
and the salesperson should change accordingly. Experience in market
conditions also helps a salesman to forecast future trends.
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16. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
d) Knowledge of competitors’
strengths and weaknesses
In the modern age of keen
competition, the salesperson
must be aware of the
competitor’s strength. A detailed
knowledge of the price and
products of the rivals enables
the salesman to guide and
advise the customers about the
superiority of his products over
those of his competitors.
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17. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
How to identify selling points of products or services
Here are some tips on how to identify the unique selling points of your
products or services;
Brainstorm in-house. The best source of information for identifying
your product or services selling points is you and your staff. Chances
are that what you think makes your product or service great is same
thing that your customers will think is great.
• What you need to do is to take a few minutes and write down
everything that you think is good about the product. After doing
that do a quick survey of your co-workers to see what ideas they
have.
• After getting the ideas you can go to work on creating
advertisements that focus on the selling points of your product.
Always validate this by interviewing a few customers causally.
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18. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Conduct some market research to find out information about your
competitors and their products or services. This can be built into the
normal operations and thus done at no extra cost.
• By finding out everything you can about their products or services you can
easily identify your products’ selling points. Some examples of this would
be a lower selling price or a product that caters for all categories of
people.
• Building regular customer feedback into the bank’s normal operations can
help you keep up-to-date with the trends in customer tastes and market
competition. This means, you can continually refine your products so that
you maintain an edge in terms of your selling point.
Explore what kind of edge you have over your competitors. These would be
personal qualities that only you, your employees and/or your business will
offer your customers. This could be better customer service, longer loan
duration period, etc. But if you can offer something for the product or
service which others can't, you have another great selling point.
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