19-09-2012, 05:12 PM
Merchant Banking and Financial Services
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Marketing of financial services:
conceptual frame work,
distribution, pricing, promotion, attracting and retaining customers,
Segmentation, positioning, development and launching of new products,
behavioral profile of customers
What are financial services?
Financial services are any service or product of a financial nature that is traded in financial markets (financial instruments)
Can be classified e.g. Do they have a fixed or variable interest rate? How long to they take to mature? Are they offered by a deposit-taking or non-deposit taking intermediary?
Financial services cover an extensive range of instruments e.g. in consumer marketplace on equity release schemes and long-term care
The marketplace for financial services is extensive
global marketplace and increasingly so
wide range of customers e.g. retail consumers, business/corporate customers, other financial institutions
Financial Services Industry
The financial services industry includes firms that deal with the management, investment, transfer, and lending of money.
Though every company handles money in the course of doing business, financial institutions actually make money their business
Rather than selling a line of physical products, they offer customers their fiscal expertise.
The industry itself is very large, encompassing everything from small, local banks to the multinational investment banks regularly featured in news headlines.
Marketing
Marketing is discipline and practice that allows practitioners and theorists to learn more about markets and customers, to provide companies with knowledge to gain competitive advantage.
Focus of marketing activity is consumer/customer, who has to gain benefit from offering for satisfaction to occur.
Intangibility
Financial services meet a general monetary rather than a specific tangible need.
Accordingly, financial service providers must get their message across effectively and ensure an attractive image.
A financial service cannot appeal to a depositor's senses, but rather provides them with an intangible benefit.
Inseparability
Financial services are produced and distributed at the same time.
The main concern of the marketer is therefore to provide the right service at the right place and time.
This requires close proximity to customers.
In addition, the packaging of the savings product is very important.
Limited Differentiation
Financial services are very much alike. Reasons for choosing one provider over another are often related to convenience.
This is especially true for small depositors whose demand for a savings product in often not excessively dependant on interest rates.