MARKETING OF FINANCIAL SERVICES

1. Presented by:
Prof. Sunidhi jain
Prof. Harpreet kaur
KCW Sidhwan Khurd

2. Marketing of
financial
services
Marketing Financial Service

3. 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.
Financial
The matter concerned with money is called finance.
Services
a service is any act or performance that one party can
offer to another that is essentially intangible and does
not result is the ownership of anything. It’s
production may or may not be tied to physical
product.

4. S.No. Physical Goods Services
1 Tangible Intangible
2 Homogeneous Heterogeneous
3 Product and distribution separated
from consumption
Production, distribution and
consumption re simultaneous process
4 A Thing A activity
5 Core value produced factory Core value produced in buyer-seller
interaction
6 Customers do not participate in the
production process
Customers participate in production
7 Can be kept in stock Cannot be kept in stock

5. Intangibility, inseparability and heterogeneity are manifested
at both strategic and tactile levels in services marketing.
Marketing strategy provides the organization with sustainable
competitive advantage a suitable 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.

6. 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 profit
Social objectives

7. 0
5
10
15
20
25
30
35
40
45
currency deposits claims on
government
investment
in shares &
debentures
contractual
savings
1998-1999
1999-2000
2000-2001
2001-2002

8. Cannot exist without customer
Create, win and keep customers
Organizational design should be oriented to be
customer
Deliver total satisfaction to the customer
Customer satisfaction is affected by the
performance of all the personnel of the bank

9. 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

10. Old New
Product Consumer
Price Cost
Place Convenience
Promotion Communication

11. Wining companies
are those that can
meet customer
needs economically
and conveniently and
with effective
communication
Services marketing
mix- 7P’s
Product, Price,
Promotion, People,
Physical Evidence
and Process

12. PRODUCT
A 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
PRICING
Price 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, tution fees
•Dynamic pricing- varying prices
•Flexibility
DISTRIBUTION CHANNEL
Marketing channels are sets of independent organizations involved in the
process of making a product or service available for use of consumption
PROMOTION
Promotion refers to raising customer awareness of a product or brand,
generating sales, and creating brand loyalty.

13. Blending of 7 p’s withfinancial services:
PRODUCT:
Convenience of paying dues
Keeping records
Transferring funds.
Various deposits
Loans& advances
Consultancy services
International banking
safe deposits
Credit card
PRICE:
In India, banks adopt administered pricing structure to some extent as
the deposit & lending rates are prescribed by RBI.

14. PROMOTION
All the promotional tools are essential right from the stage of new
product. The objective is to make people aware of new product, to
persuade customers, to remind customers, build image of the bank.
An advertisement in bank is a promise. E.g.: newspaper, radio,
television, magazines & hoardings.
Sales promotion: brochures, calendars, diaries, pen stand.
Publicity: customers tends to believe a news item rather than an
advertisement. WOM an important promotional tool.

15. PLACE
Making the banking service available & accessible to the customer.
Selection of suitable location for the branch. Should have sound
availability of transportation, communication, electricity & other
necessary facilities for the smooth functioning of the branch
PEOPLE
Banking product cannot be separated from the people who
markets them.
Banks adopt internal marketing in order to make the whole
business customer-oriented.
The product is known to the employees before they are effectively
marked to the customers.
PROCESS
Accounting procedure for putting through a transaction. Through
automation of transactions, accounting procedures & data handling.
E.g.: loan application, clearance of cheque.

16. PHYSICAL EVIDENCE
Imagine designs of bank brochures, flashy cheque books.
Attractive brand names, logos, symbols.
Customers perception of service quality.

17. The Future
Service marketing management through managing customer
interfaces, providing value for money products; value pricing and
product innovation will separate the also-rans from the best. The
future technology road map (trajectory) will be full branch
automation: networking and expansion of ATMs and the
introduction of core banking solutions in branches. The state of art
technology which is to be provided has to be backed by a committed
working force for its success - a work force committed to quality,
single window delivery of service and in developing customer
relationship by delivery of high quality personalized professional
service.