branding and advertising of financial services
TRANSCRIPT
BRANDING AND ADVERTISING OF FINANCIAL SERVICES
BRANDING
When several companies are offering rival products they will want to identify and distinguish
their offering. This is called branding
BRANDING
A brand is the sum of tangible and intangible values and associations
that differentiate it from other available offerings in the market.
BRAND IMAGE
Brand image represents the totality of impressions about the brand as selected
and adapted by the consumer’s perception. It embraces the brand’s
physical and functional aspects and also its symbolic meanings
BRAND PERSONALITY• The strategic purpose in creating a brand
personality is to evoke from the target consumer the response:
• “I see myself in the brand”• “I see the brand in myself”• “This brand is for me”• And this becomes the basis for a bond or a
relationship between consumer and brand which is stronger than if it were founded on cold functionality alone
Brand Equity
BE = Brand awareness + Brand association + brand preference
while purchasing
PURPOSE AND DEFINITIONS• “A seller’s promise to consistently deliver a specific
set of features, benefits and services to buyers.” Philip Kotler
• “A name, symbol, design or some combination which identifies the product as having a sustainable differential advantage.” Peter Doyle
• “A name, term , sign, symbol or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” Philip Kotler
CREATING BRAND PROMISE
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PROCESS
PHYSICALEVIDENCE
BRAND
SELFIMAGE
QUALITY
COST
EXPECTEDPERFORMANCE
DIFFERENTIATION
Consumer’s outputBrand owner’s input
EXTRINSIC ATTRIBUTES AND BRANDING
• A consumer is more or less dependent on the extrinsic attributes of the branded article when it is difficult to evaluate the intrinsic attributes before purchase
• Where the performance of the branded article cannot be guaranteed before purchase the influence of the brand name can be extremely high
• Often financial products cannot be evaluated directly even after consumption (referred to as “credence articles” by Darby and Karni 1973) and are therefore very sensitive to influence of extrinsic attributes
5 D SENSORY BRANDING
Dress of Cabin Crew
The Rise of Regionalism and Anti-globalisation
Positioning “the brand” as evaluative attribute
• The brand must be positioned to create meaning for customers through marketing communications such that it becomes the most important attribute
• The brand evaluation comes to override evaluation of other attributes
• This is why brands must consistently deliver the promises made in marketing communications
Mutual attribute influence – “irradiation” (Kroeber- Riel 1980)
• Intrinsic attributes not seen as important can influence evaluation of intrinsic attributes that are important (eg colour/taste ice cream and oranges, colour/spreadability – margarine, scent/strength – detergent)
• Extrinsic attributes can influence the evaluation of intrinsic attributes (eg packaging/freshness – bread, packaging/taste – alcohol)
Other distorting evaluative influences
• Information processing of attributes may be distorted in favour of a brand that consumers (unconsciously) prefer. (Russo et al 1998,Predecisional distortion of product information, Journal of Marketing Research 35)
• Consider the implications of this for financial product purchase from new financial providers
Functional and expressive characteristics of products
• FUNCTIONAL• Emphasis in consumption
on intrinsic attributes• Maximisation of physical
function
• EXPRESSIVE• Fulfils consumers’
consumption goals in psychosocial world
• Reference group symbolism• Brand names have greater
communicative value
Strategic functions of brands FUNCTION CHARACTERISTICS
As company Embodies personal/core values:Easy, Virgin, Body Shop
As shorthand Heinz= “quality, premium, reliable, well packaged, respectable”. Acts as “chunk” to aid info processing
Risk reducer Minimise risk rather than maximise utility. Mitsubishi cars- few performance claims, many features, low price
Position Functional benefits valued by customers. Volvo=safety, Subaru=performance
Personality Symbolism with emotional role. BMW, Rolex, Cunard
Value cluster Differentiation through values. Virgin= value, fun, innovation. AGA=tradition, constant, efficient,welcoming
Vision The world the brand could create. IKEA=function, resource efficiency. Apple=enabling creativity
Added value Relative to competitors, product in use. SEBO=“superb performance with German engineering as standard
Identity Vision and culture with resonance for staff and customers. Apple=challenge status quo. IKEA=challenge convention
Image Your perception of reality. Renault=as individual as you
Relationship Translate brand values into relationship. Tesco= “the more we sell the less we charge”
Branding benefits • BUYER BENEFITS• Product identification• Shorthand cue of features and benefits• Distinguishes products of similar type• Reduces buyer search time• Increases buyer assurance• Assists in quality evaluation• Psychological reward• Brand association
• SELLER BENEFITS• Product awareness• Helps launch new product• Secures demand• Facilitates repeat purchase• Fosters brand loyalty• Enables premium pricing• Provides equity value• Offers proprietary brand assets
Value gap analysis and branding opportunities
“How do you rate existing services?” versus “What’s important to you?”
Brands and semiotics• Semiotics is the study of meaning and is
concerned with the symbolism conveyed by objects and words
• Meaning is a product of the interaction between sign system and de-coder
• Meaning derives from perception based on knowledge and attitudes
• Brands use sign systems to create meaning (name, logo, colour, design)
Levels of meaning in brand symbols
• Utilitarian: functional aspects, reliability, fitness for purpose, effectiveness.
• Commercial: exchange values, value for money, cost-effectiveness.
• Socio-cultural: social effects of buying, aspirational groups, social roles
• Myths: association with heroic stories
Financial services brand images....
Celebrity links and brand association
....and more
How to screw up your brand?
• Remember Kotler: “a seller’s promise to consistently deliver a specific set of features, benefits and services to buyers.”
Like how to lose£900 million?
How does this resonate withthe consumer?
How to screw up your brand ? (continued)
• Believe that financials not customers are the lever for improved performance
• Believe in demographic, psychographic segmentation rather than profitability segmentation
• Collect data without understanding the 3 or 4 most important attributes valued by customers
• Stalk customers without wooing them• Believe that loyalty schemes create loyalty• Spend millions on branding without communicating what value the brand
creates for customers• Provide vanilla customer service• Believe that customer satisfaction is the means to win
New versus old providers
“it is more than giving a product like a current account a name. It is about identifying a target
market and then developing a product and brand personality that the target market will
identify and prefer.”
ADVERTISING
ADVERTISING
• “Advertising is multidimensional, a powerful marketing tool, a component of economic system, a means of financing the mass media, a social institution, an art form an instrument of business management, a field of employment and a paying profession.”
In Other Words:• “Advertising is a big business, It ranks fifth among
the big industries of the world after oil, automobiles, computers, electronics.”
Advertising is all about?????
The definition which completely surrounds all the aspects of advertising is given by American marketing association, Chicago. According to it:
“Any paid form of non personal presentation of ideas, goods and services by an identified sponsor.”
Directed Communication
1. Informative• Audience receives factual product info • No arguments; no evaluation• Suitable when:
(a) audience actively seeks info(b) easy to assess the facts(c) judgment is favorable to advertiser(d) no significant competition
Advertising Strategies
Argumentative• Presents facts and evaluation
• Suitable when:(a) there is a differentiated product
benefit(b) benefits of features not obvious(c) high-involvement decisions
3. Psychological Appeal
• Enhances product appeal thro’ emotions
• Primary emphasis: Emotions
• Secondary Emphasis: Product Attributes/Benefits
Humor AppealPositive mood draws attention product
is used
But, . . . . . . (a) Not sufficient to merely attract attention(b) Repetition reduces ability to hold attention(c) Humour is subjective
Fear Appeal• Negative consequences of not using product
product is used
• Threat, with implications of danger
• Curvilinear relationship between fear and persuasion (see next figure)
Relationship between fear levels and message acceptance
Facilitating effects
Resultant nonmonotoniccurve
Inhibiting effects
Acceptanceof messagerecommendation High
Level of fear
Sexual AppealGains attention brand name recall?
(a) Nature of product– If product is not related to sex, brand name recall
higher when illustration is non-sexual than sexual
(b) Attitude toward sexual illustrations– Audience with fav. attitude recall brand name more
than those with unfavorable attitude
(c) Gender of audience– Men have more difficulty in recalling brand names
MAJOR CONSIDERATIONS FOR ADVERTISING MEDIA SELECTION
FINANCIAL SERVICES IN INDIA
MEANING OF FINANCIAL SERVICES
• All types of activities which are of a financial nature could be brought under the term ‘financial services’.
• The term “Financial Services” in a broad sense means “mobilizing and allocating savings”.
• Thus, it includes all activities involved in the transformation of saving into investment.
FINANCIAL SERVICES
• The ‘financial service’ can also be called ‘financial intermediation’
• Financial intermediation is a process by which funds are mobilised from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers.
FINANCIAL SERVICES
• financial services sector is a key area and it is very vital for industrial developments.
• A well developed financial services industry is absolutely necessary to mobilise the savings and to allocate them to various investable channels and thereby to promote industrial development in a country.
FINANCIAL SERVICES—OBJECTIVES/FUNCTIONS
Fund raising
Funds deployment
Specialized services
Regulation
Economic Growth
FINANCIAL SERVICESFinancial services industry is the mainstay of any economy as it
mirrors the financial health of the country. Indian financial markets are highly regulated with different authorities
keeping an eye on every avenue of financial sub-segments viz. Stock markets, mutual funds, insurance and banking. Stock markets are regulated by Securities and Exchange
Board of India (SEBI) while Insurance Regulatory and Development Authority (IRDA) keeps an eye on the insurance industry. Similarly, Reserve Bank of India (RBI) keeps a check
on the Indian banking sector and Association of Mutual Funds in India (AMFI) takes care of the mutual fund segment
INSURANCE SECTOR
• According to the data released by Life Insurance Council, total premium collected (including both new and renewal premiums) during April-September 2011 stood at Rs 1,22,661 crore (US$ 23.69 billion). In the same period, the renewal premium collection increased by 17 per cent to Rs 73,575 crore (US$ 14.21 billion), as against Rs 62,818 crore (US$ 12.13 billion) in the corresponding period in 2010.
• Till September 30, 2011, promoters of life insurance companies had injected over Rs 32,720 crore (US$ 6.32 billion) as capital. Also, there was an investment of more than Rs 200,000 crore (US$ 38.62 billion) in infrastructure development in the sector.
• The council further predicts an upsurge in new premium collections during October 2011-March 2012
BANKING SERVICES
• According to the RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2011, Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 21.6 per cent. The share of new private sector banks, Old private sector banks, Foreign banks and Regional Rural banks in aggregate deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively.
• With respect to gross bank credit also, nationalised banks hold the highest share of 52.8 per cent in the total bank credit, with SBI and its associates at 22.1 per cent and New Private sector banks at 13.2 per cent. Foreign banks, Old private sector banks and Regional Rural banks held relatively lower shares in the total bank credit with 4.9 per cent, 4.6 per cent and 2.4 per cent respectively.
MUTUAL FUNDS INDUSTRY IN INDIA
• Recent data released by AMFI stated that the cumulative average Asset Under Management (AUM) of all fund houses aggregated to about Rs 6,87,640 crore (US$ 132.77 billion) in the last quarter of 2011.
• Data compiled at the end of 2011 indicated that HDFC Mutual Fund maintained its top position with an average AUM of Rs 88,737.07 crore (US$ 17.13 billion) while fund houses namely Reliance, ICICI Pru, Birla Sunlife and UTI followed. By the end of 2011, there were a total of 44 fund houses in the country as against 42 in the first quarter of the year.
PRIVATE EQUITY(PE), MERGERS & ACQUISITIONS(M&A) IN INDIA
• Global consultancy firm Ernst & Young (E&Y) has stated that the value of M&A deals involving Indian companies aggregated to US$ 34.4 billion in 2011 involving 806 transactions. There were 177 outbound deals with an aggregate disclosed value of US$ 8.8 billion in 2011; forming 25.6 per cent of the total M&A pie.
• Adani Enterprises' acquisition of Abbot Point Coal Terminal in Australia (US$ 2 billion) and the GVK Group's purchase of Australia-based Hancock Coal's Queensland coal assets (US$ 1.3 billion) were among the biggest outbound deals recorded in 2011.
• According to data released by auditing and consultancy firm KPMG, India Inc witnessed a 31 per cent increment in PE investment to US$ 7.89 billion during the first three quarters of 2011. PE firms like Blackstone India and Kohlberg Kravis Roberts & Co (KKR & Co) are betting high on Indian markets. The Blackstone India chief was reported to have said that he intends to close 5-6 deals a year in India whose financial valuations would revolve around roughly US$ 100 million to US$ 120 million each
INDIAN FINANCIAL MARKETA Financial Market can be defined as the market in which financial assets
are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend.
• Money Market- The money market ifs a wholesale debt market for low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions.
• Capital Market - The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year.
INDIAN FINANCIAL SYSTEM
INDIAN FINANCIAL MARKET
Money Market- • The money market ifs a wholesale debt market for
low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions.
Capital Market • The capital market is designed to finance the
long-term investments. The transactions taking place in this market will be for periods over a year.
INDIAN FINANCIAL MARKET
Forex Market •The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe.
Credit Market•Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate and individuals.
Constituents of a Financial System
FINANCIAL INSTRUMENTS
MONEY MARKET INSTRUMENTS
CAPITAL MARKET INSTRUMENTS HYBRID INSTRUMENTS
MONEY MARKET INSTRUMENTS
The money market can be defined as a market for short-term money and financial assets
that are near substitutes for money. The term short-term means generally a period upto one year and near substitutes to money is
used to denote any financial asset which can be quickly converted into money with
minimum transaction cost.
MONEY MARKET INSTRUMENTS
Call/Notice Money
Treasury Bill
Term Money
Certificate of Deposit
Commercial Papers
Call/Notice Money
Call/Notice money is the money borrowed or lent on demand for a very short period. When money is
borrowed or lent for a day, it is known as Call (Overnight) Money. Intervening holidays and/or Sunday
are excluded for this purpose. Thus money, borrowed on a day and repaid on the next working day,
(irrespective of the number of intervening holidays) is "Call Money". When money is borrowed or lent for
more than a day and up to 14 days, it is "Notice Money". No collateral security is required to cover
these transactions
Term Money
Inter-bank market for deposits of maturity beyond 14 days is referred to as the term
money market. The entry restrictions are the same as those for Call/Notice Money except
that, as per existing regulations, the specified entities are not allowed to lend beyond 14
days.
Treasury Bill
Treasury Bills are short term (up to one year) borrowing instruments of the union
government. It is an IOU of the Government. It is a promise by the Government to pay a stated sum after expiry of the stated period from the date of issue (14/91/182/364 days i.e. less than one year). They are issued at a discount to the face value, and on maturity
the face value is paid to the holder.
Certificate of Deposit
Certificates of Deposit (CDs) is a negotiable money market instrument nd issued in
dematerialised form or as a Usance Promissory Note, for funds deposited at a
bank or other eligible financial institution for a specified time period. Guidelines for issue
of CDs are presently governed by various directives issued by the Reserve Bank of India, as amended from time to time.
Commercial Papers
CP is a note in evidence of the debt obligation of the issuer. On issuing commercial paper the debt obligation is transformed into an instrument. CP is thus an unsecured promissory note privately placed with investors at a discount rate to face value determined by market forces. CP is freely negotiable by endorsement and delivery. The minimum maturity period of CP is 7 days. The minimum credit rating shall be P-2 of CRISIL or
such equivalent rating by other agencies.
CAPITAL MARKET INSTRUMENTS
The capital market generally consists of the following long term period i.e., more than
one year period, financial instruments; In the equity segment Equity shares, preference
shares, convertible preference shares, non-convertible preference shares etc and in the
debt segment debentures, zero coupon bonds, deep discount bonds etc.
HYBRID MARKET INSTRUMENTS
Hybrid instruments have both the features of equity and debenture. This kind of
instruments is called as hybrid instruments. Examples are convertible debentures,
warrants etc.
LIST OF TOP FINANCE COMPANIES IN INDIA
• SBI Capital Markets Limited• Bajaj Capital Limited• IDBI Bank• UTI Mutual Fund• DSP Meriyll Lynch Limited• Birla Global Finance Limited• Housing Development Finance Corporation• PNB Housing Finance Limited• ICICI Group• LIC Finance Limited• India Infoline Limited
BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES
MARKETING
BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES MARKETING
In recent years, belief in the power of brands and brand management has spread far beyond the traditional consumer goods
marketers who invented the discipline. For companies in almost every industry, including financial services, brands are important in a
way they never were before and are now seen as vital assets central to the business. Why is
this?
BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES MARKETING
Consumers now have a staggering choice of products and services in each market sector, with added impetus for growth online, and a trusted
brand stands out from the crowd. As international reach increases and companies
expand abroad, the brand name acts as the focal point for new market entry. A strong brand offers
all these advantages, and more. But what constitutes a brand and what are its components
BRANDING – THE KEY ISSUE IN FINANCIAL SERVICES MARKETING
• The consumer’s perception of a brand is crucial to its success, so a good starting point is to examine perceived brand values. In my view, brand values can be divided into two categories:
• Core values, universally relevant - the vital components of a strong brand
• Support values, of particular relevance to a specific market sector.
WHAT CONSTITUTES A BRAND
Core brand values
Recognition/ awarenes
Trust/reliability Quality Value/price Service
Support values
Availability/distribution
Product design Product range Innovation Professional expertise
BRANDING IN FINANCIAL SERVICES
Branding in financial services has its own characteristics, the crucial element being consumer trust, after all the
institutions are handling your money. For this reason in most cases the brand and the institution’s name are one
and the same, as in the case of those quoted in the top 75. Brand and reputation management are thus very closely interlinked, forming an essential part of business strategy, with staff training on brand values an important support
function. The need to maintain long term customer relationships and to provide high quality advice are also
key to successful brands in the financial sector.
CHALLENGES TO BRAND MANAGEMENT IN FINANCIAL SERVICES
The current worrying events in the marketplace are likely to favour big brands in the next few
years as consumers turn to established institutions, with strong balance sheets, that
they can trust in difficult times. Together these events present a formidable challenge to
financial services management
CHALLENGES TO BRAND MANAGEMENT IN FINANCIAL SERVICES
• General loss of confidence in institutions, following the collapse of Enron and WorldCom, with the revelations of corporate malpractice in the US
• loss of confidence closer to home from problems in the insurance• industry, first Equitable Life, now others including Royal Sun Alliance• The precipitous fall in the Stock Market and the subsequent negative
impact• upon investments• Certain market sectors to which consumers are committed, such as with• profits and endowments, are not performing well, creating confusion and• anxiety• The much publicised pensions shortfall and the ending of company final• salary schemes
FINANCIAL SERVICES—OBJECTIVES/FUNCTIONS
Fund raising
Funds deployment
Specialized services
Regulation
Economic Growth
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.
CHARACTERISTICS OF SERVICES
• Intangibility• Inseparability• Heterogeneity• Perishability• Customer Orientation
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 forceCommercial 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.
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 forceCommercial objective to make
profitSocial Objectives
GUIDELINES ON ADVERTISEMENTS FOR
FINANCIAL PRODUCTS & SERVICES
GUIDELINES ON ADVERTISEMENTS FOR FINANCIAL PRODUCTS & SERVICES
These guidelines cover the principles that apply to advertisements for financial products and
financial services. This means advertisements about financial products and advertisements about advice in relation to financial products.
The purpose of these guidelines is to assist members of Commercial Radio Australia
understand the obligations that relate to these types of advertisements.
TRADE PRACTICE ACT
As with the Trade Practices Act, the onus is on advertisers to ensure that advertisements for their financial products and
services comply with the relevant law. Commercial radio stations that accept advertisements in the ‘ordinary course of business’ would not be liable for advertisements that breach
these laws unless can be proved that a relevant person at the station knew or had a reason to suspect that the
advertisement was misleading or deceptive. If the script for an advertisement is created by your station, it is necessary to get the approval of the advertiser for both the concept and all
statements made in the advertisement
SPECIFIC RULES DESIGNED FOR CONSUMERS
Many financial products and services are subject to specific rules designed to ensure that consumers:
• are treated efficiently, honestly and fairly, and
• receive the information they need to make an informed decision about a financial product or service.
The Australian Securities and Investments Commission (ASIC) enforces the law on financial products and services. ASIC is unlikely to find
fault with advertising that follows these general principles.
RISK TO AVOID
Claims that need care
• ‘Independent advice’ or ‘impartial advice’
• 'Free'
• Comparisons
• 'The best deal'
When it may be misleading and deceptive
• If the adviser is getting paid commission or receives other benefits from a supplier
• If any direct or indirect costs apply or benefits are given up
• If not done on a fair and equal basis or if unexpected assumptions are not stated
• If the deal is selected only from a limited range, not the whole market
RISK TO AVOID
Claims that need care
• ‘Expected to earn X%’, ‘high returns expected’, 'excellent returns forecast‘
• 'Guaranteed returns'
• ‘Returns of X% over the past Y years’, ‘better than market rates of return’, ‘top performer'.
When it may be misleading and deceptive
• If the claim is made without reasonable grounds or if risks are understated
• If returns are not truly guaranteed
• If the performance is based on selective, out of date or hypothetical figures
• If the advertisement implies past performance will continue
RISK TO AVOID
Situations that need care
• Express or implied recommendations about a financial product
• Personal endorsements
When they might breach the law
• If the advertiser does not hold an ASIC licence to give either general or personal financial advice (Loans are excluded from ASIC licensing, but the law against misleading and deceptive advertising still applies)
• If the personality suggests relevant knowledge but has none
RISK TO AVOID
Situations that need care
• Personal endorsements
• Correct labelling of a product or service
• Referring to Australian financial services licences
•
When they might breach the law
• If the personality suggests relevant knowledge but has none
• If the product or service differs from what people would usually expect from that label
• Holding out that a financial services provider is licensed when it is not, or if only a part of the advertised service is licensed
RISK TO AVOID
Situations that need care
• Offers or claims subject to terms and conditions or other qualifications
When they might breach the law
• If the terms and conditions or qualifications greatly reduce the benefits being advertised and
• • are not mentioned:
• • are understated; or
• • are hard to hear
SPECIFIC FINANCIAL PRODUCTS ADVERTISING RULES
By law, advertisements for these types of financial products must:
identify who is issuing the product; state that a product disclosure statement is
available and where it can be obtained indicate that people should consider the product
disclosure statement in deciding whether the product being advertised is appropriate for them
ADVETRTISING OF SHARE OFFERS, DEBENTURES AND OTHER SECURITIES
• Share floats and raising of money from the public for investing can involve complex legal requirements. Organisations issuing shares, debentures and other securities are required to make certain disclosures to potential investors via a prospectus or PDS and may also be subject to other rules.
• Radio stations should ensure that an advertiser advertising a share offer has obtained legal advice about its requirements in relation to any advertisements for that offer.
• Advertising of an offer of shares, debentures and other securities is not allowed unless a prospectus or PDS has first been lodged with ASIC.
ADVETRTISING OF SHARE OFFERS, DEBENTURES AND OTHER SECURITIES
• Once a prospectus or the product disclosure statement has been lodged with ASIC, any advertisement about a share float or the issuing of other securities must include a statement to the effect that:
• (a) the offer is made in a copy of or accompanied by a disclosure document; and
• (b) anyone wishing to invest or acquire the particular securities will need to complete the application form that will be in or accompany the disclosure document.
SIGNS OF ‘SUSPECT’ ADVERTISERSOccasionally you may encounter financial products or services
that breach Australian law. There are usually warning signs that can signal an increased risk of unlawful activity. For example:
• Investments or investment advice operated from overseas (providers of financial products or services require an Australian Financial Services Licence).
• Schemes for accessing superannuation ahead of genuine retirement.
• Very high returns on investments, for example more than 15-20% per year in today’s market or other implausible claims.
CHALLENGES OF FINANCIAL SERVICE BRANDING
CHALLENGES OF FINANCIAL SERVICE BRANDING
Branding in financial services is undergoing substantial changes, owing to the dramatic increase
in competition following deregulation and the threat posed by new entrants with retail branding experience. Success in what is fast becoming an
overcrowded market will depend on effective brand differentiation, based on the identification,
internalisation and communication of unique brand values that are both pertinent to and desired by
consumers.
DIFFERENTIATING SERVICE BRANDS THROUGH VALUE MANAGEMENT
• Branding in services marketing is about the blending of functional and emotional values . Free proposed that services branding was about values, which “represent the heart and soul of a company” . Emotional values in particular are becoming increasingly important in differentiating brands. Previous research indicated that a brand’s emotional added values are more sustainable than functional added values, which may be easily copied noted that, in common with fmcg marketing, financial services brands tended to focus on product features
• rather than true brand values.
DIFFERENTIATING SERVICE BRANDS THROUGH VALUE MANAGEMENT
• Successful services brands attract, develop and retain staff who can translate the brand’s values into actions and behaviours perceived by consumers as appropriate and distinctive.
• Having devised the cluster of internal values, managers then need to develop and promote the service brand to achieve alignment between the brand’s, staff’s and consumers’ values.
• financial services branding faces a number of challenges. For consumers, choosing a financial services product is an important decision entailing high risk without the scope for trial or sampling alternatives and they promote intangible benefits.
DIFFERENTIATING SERVICE BRANDS THROUGH VALUE MANAGEMENT
• Services brand marketers’ perceptions about the values of their brand differ.
• Financial services brands will have more functional values than emotional values.
• The values of financial services brands are not unique brand values, but rather generic category values.
VALUE OF FINANCIAL SERVICE BRANDS ARE NOT UNIQUE
• The values of financial services brands are not unique brand values, but rathergeneric category values.
• The early evolutionary stages of branding focus on the brand as a positioning device, drawing strongly on functional value. Branding in financial services is still a fairly recent development
Financial services brands will have more functional values than emotional values.
• Successful values management requires understanding and agreement about a brand’s values
• by those responsible for brand strategy, before they can be cascaded to staff and consumers.
• However, previous research has indicated that managers’ perceptions in the same firm may differ .
THANK YOU