financial service marketing by sahil
Post on 28-Jan-2018
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MARKETING CONCEPT
A situation where buyers and sellers of a commodity interact.Coming together of buyers and sellers of the same or similar commodities
TYPES OF MARKET
Geographical Area Product Nature of Transaction Volume of Transaction
MARKETING
Marketing is the process of determining consumer demand for a product or service, motivating its sale and distributing it into ultimate consumption at a profit
A management function A Business Philosophy
EVOLUTION OF MODERN MARKETING
Industrial revolution Digital revolution Barter System Customer and market driven Wants of customers CRM Customer Satisfaction Nothing is worthwhile unless it
touches the customer
MARKETING VS SELLING
MARKETING MANAGEMENTA process of planning and executing the conception, pricing , promotion and distribution of goods and services and ides to create exchanges with target groups that satisfy customer and organizational objectives.
FUNCTIONS OF MARKETING MANAGEMENT
Analysis Planning Implementation Control
IMPORTANCE OF MARKETING FOR INDIAN BANKS
"The relevance of aggressive marketing in banks has come to the fore as never before" - M N Goiporia.
CHARACTERISTICS OF SERVICES Intangibility Inseparability Heterogeneity Perishability
SERVICE
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. It’s production may or may not be tied to physical product.
S.No.S.No. Physical GoodsPhysical Goods ServicesServices
1.1. TangibleTangible IntangibleIntangible
2.2. HomogeneousHomogeneous HeterogeneousHeterogeneous
3.3. Product and distribution Product and distribution separated from separated from consumptionconsumption
Production, distribution Production, distribution and consumption re and consumption re simultaneous processsimultaneous process
4.4. A thingA thing A activityA activity
5.5. Core value produced in Core value produced in factory factory
Core value produced in Core value produced in buyer-seller interactionbuyer-seller interaction
6.6. Customers do not Customers do not participate in the participate in the production processproduction process
Customers participate in Customers participate in productionproduction
7.7. Can be kept in stockCan be kept in stock Cannot be kept in stockCannot be kept in stock
8.8. Transfer of ownershipTransfer of ownership No transfer of ownershipNo transfer of ownership
MAREKTING OF FINANCIAL SERVICES
Intangibility, inseparability and heterogeneity are manifested at both strategic and tactible levels in services marketing. Marketing strategy provides the organisation with a sustainable competitive advantage in the markets it operates.Organization should understand consumer needs and identifies how those consumers should be grouped into different market segments.Product attributes, pricing decisions, methods of distribution and communication should all seek to reflect the chosen position.
BANK MARKETING Provides services Aimed to satisfy customer’s needs and
wants Needs and wants may be non financial in nature
Competitive element, efficiency and effectiveness
Organizational objectives are still the driving force
Commercial objective to make profitSocial Objectives
Essentials for a Banks SuccessCannot exist without customerCreate, win and keep customersOrganizational design should be
oriented to the customerDeliver total satisfaction to the
customer Customer satisfaction is affected by the performance of all the personnel of the bank.
MARKETING MIX Key concept in the modern marketing Considered to be core of marketing It is the set of tools that the firm uses to
pursue its marketing objectives in the target market
Decisions must be made for both the distribution channels and the final consumers
Wining companies are those that can meet customer needs economically and conveniently and with effective communication
Services Marketing Mix – 7P’sProduct, Price, Place, Promotion, People, Physical evidence, Process
PRODUCTA product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
PRODUCT PERSONALITY
THE CORE
THE ASSOCIATED FEATURES
THE BRAND NAME & LOGO
THE PACKAGE AND LABEL
PRODUCT LEVELS
Core benefit, basic product, expected product, Augmented product and Potential product.
PRODUCT CATEGORY Durability, tangibility and use Product item, Product Line, Product mix Banking product
PRODUCT PLANNING
The process of product planning consists of determining the strategies in respect of various elements. Product Line, Product Mix, Branding, Packaging and New product development.
PRODUCT LIFE CYCLEIntroduction, Growth, Maturity, DeclineThe product Life cycle operates at three levels product level, product sub category, brand level.
WEAKNESS OF PLC CONCEPTUndefined conceptNo uniform shapeUnpredictable turning pointsUnclear implications
PRODUCT STRATEGIESStrategies based on Product MixStrategies based on Product Life Cycle
PRODUCT MODIFICATIONQuality ImprovementFeature ImprovementStyle Improvement
PRODUCT ELIMINATIONGROWTH STRATEGIES
IntensiveIntegratedDiversification
NEW PRODUCT DEVELOPMENTIdea ScreeningConcept TestingProduct DevelopmentTest MarketingCommercial Launch
DIVERSIFICATIONConcentric Diversification – technologically related but the target customers are entirely differentHorizontal Diversification - technologically
unrelated but the target customers are sameConglomerate Diversification – no relationship with the existing product
BRANDINGLine ExtensionBrand ExtensionMulti brandsNew Brands
PACKAGING Primary PackageSecondary PackageShipping Package
LABELLINGIdentify the product or brandDescribing informationPromoting the product through 'attractive graphics'
PRICINGPrice is the sum value of all the values that consumers exchange for the benefits or having or using the product or service
Different forms - Goods bought, hire charges, tuition feesDynamic Pricing - Varying pricesFlexibility
OBJECTIVE OF PRICINGProfitSurvivalMarket ShareCash FlowStatus QuoProduct QualityCommunicating ImageShort term/Long term
FACTORS INFLUENCING PRICINGThe Customer's Demand ScheduleThe Cost Function and Competitors Prices
PRICING METHODSMark up PricingVariable costs and contribution for fixed costs
Absorption cost Pricingmargin for profit
Target Return PricingReturn on the investment
Marginal cost PricingDirect variable costs are fully realizedOnly a portion of fixed costs may realized
Perceived Value PricingBuyer’s perception of value
Value PricingProduct with high value at a fairly low price
Going Rate PricingBased on competitor’s prices
PRICING METHODS (Contd..)Auction Type Pricing
English AuctionsOne seller many buyer
Dutch Auctions Sealed Bid Auctions
Group Pricing.
Pricing StrategiesGeographical pricingPrice discount and allowancesPsychological pricingPromotional pricing
Loss-leader pricingLoss is covered by sale of other itemsSpecial event pricingCash rebatesLow-interest financingLonger payment termsWarranties and service contractsPsychological discounting
Pricing Strategies (Contd.) Discriminating pricing
First degreedifferent prices to each customer depending
upon their intensity of demand
Second degreeLower prices for buyers of a larger volume
Third degreeCustomer groups – student, senior
citizen
Product formImage pricingChannelLocationTime
Pricing Strategies (Contd.)
Product-mix pricingProduct line pricing –developing product lineCaptive-product pricing – main product at lower price, ancillary product at higher priceTwo-part pricing – split into fixed and variable componentBy-product pricing – by-products obtained in production of other productsProduct-bundling pricing
Market skimming pricing Market-penetration pricing
DistributionDistribution channel
Marketing channels are sets of independent organizations involved in the process of
making a product or service available for use of
consumption.
Functions of distribution channelsMarket informationPromotionContactMatchingNegotiationProduct informationPhysical distributionFinancing
Channels typesChannel 1, Channel 2, Channel 3, Channel 4, Factor influencing channel section
Product characteristicsPerishable productsConsumer durablesIndustrial products
Market characteristicsCustomer characteristicsCompany resourcesCompetitionProduct lines
Channels for banking productsIntangibilityInseparabilityVariabilityPerishabilityClient relationship
BranchesOther channels
Tele-bankingATMsComputerizationPlastic CardsVirtual branches and automated video banking
Intermediaries in banking servicesDSAAutomobile DealersMerchant establishments
Physical distributionTransportationWarehousingInventory
Tasks of physical distributionForecastingOrder processingInventory management
StorageProtective packagingTransportation
Promotion mix
AdvertisingPersonal
sell ing
Sales Promotion
Public Relations
Direct Marketing
Blended Mix of Promotion Tools
Promotion mix strategies• Push strategy -Retailer
• Pull strategy - Customer
Factors influencing promotion mix• Types of product/market• Buyer’s readiness stage• PLC stage
Promotion mix integration
Marketing Information System (MIS)Features of MIS
Master PlanCoordinationFuture OrientationComputerized EnvironmentAnalyse Quantitative InformationRegular flow of Information
Functions of MISCollecting and assembling dataProcessing of dataAnalysis of dataStorage of dataDiscrimination of information
Need of MIS
Complex marketing activityKnowledge /information explosionCommunication gapPrompt decisionNon-price competition
Kinds of information needed• Information about market forces• Information about the bank’s market
behaviour• Internal information
Components of MIS• Internal marketing information• Marketing intelligence system• Marketing research system
Advantages of MIS
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