Financial Service Marketing PDF

FINANCIAL S ER VI CE M ARK ETI NG GROUP 1  CONTE NT 01 INT RO DU CT IO N T O F INANCI AL SER VICE S MAR KE T ING 02 MARK ET C ONFU SIO N 03 CO MMO N MARK ET ING BL IND SPO T 04 NEW P ERSP ECTIVE IN MARK ETING T HE VALUE OF CL EAR...

FINANCIAL S ER VI CE M ARK ETI NG GROUP 1  CONTE NT 01 INT RO DU CT IO N T O F INANCI AL SER VICE S MAR KE T ING 02 MARK ET C ONFU SIO N 03 CO MMO N MARK ET ING BL IND SPO T 04 NEW P ERSP ECTIVE IN MARK ETING T HE VALUE OF CL EAR 05 CO MMU NICAT IO N  WHA T IS F INA NC IA L SERVI CE M A RKET IN G? Fin an cial se rvice ma r k eting is th e p ro ce ss o f p ro m otin g and se llin g fina n cial p ro d uct s a nd se rvice s, su ch as b an kin g, i ns ur a nce , inv es tme nt, a nd loa n p ro d uct s, to co ns um ers a nd b us in es ses. CH ARA CTERISTICS OF FINANC IA L SER VI CES INTANGIBILITY Since serv ices ar e processes or exper iences, int angibi lity is gener ally cited as the key featur e tha t dist ingui shes serv ices from goods. In practice, this means that services are unperceivable as they lack a substantive physical form and so cannot be seen, touched, displayed, felt or tried in advance  INS EPARABILITY Service inseparability is defined as the inability of the service to be separated from its provider through its production or consumption. Examples: Companies: Businesses that offer services that require present consumers, such as hotels, barbershops, beauticians, or massage therapists Institutions: Schools, religious services, and hospitals.  PERIS HABILITY Perishability means that services cannot be stored for later sale or use. In other words, services cannot be inventoried. This is one of the most significant characteristics of services, since it may have a major impact on financial results. Examples: airline flights, auto repair, theater entertainment, and manicures. HETEROGENEITY Heterogeneity means that the service quality varies from one provider or location to another. This characteristic explains the difference in prices depending on location and quality of services. One of the biggest causes of the heterogeneity of services is changes in output. VARIABILITY Variability expresses the notion that a service may vary in standard or quality from one provider to the next or from occasion to the next. For example, when dealing with insurance claims, one staff member may be responsive and helpful, while another could be unpleasant and apathetic.  M AR KET C ON FUS IO N Ma rket confu si on i n fi na nci a l se rvi ce mar ke tin g occu rs when con su mer s or clien ts str uggle to und er stand or d iffe renti ate b etween the fina ncial p ro ducts an d ser vices offer ed b y va rio us p ro vid ers. I t also occurs when there is uncertainty or ambiguity in the marketplace that affects the decision-making of consumers, investors, or businesses. It can arise from various factors and lead to inefficiencies or missed opportunities.  Here are some key aspects of market confusion: 1. Information Overload When there is an overwhelming amount of information, it can be difficult for individuals to discern what is relevant or accurate 2. Mixed Messages Conflicting messages from different sources or within the same source can create confusion. 3. Policy Changes Sudden or unexpected changes in government policies, regulations, or fiscal measures can lead to confusion. 4. Technological Disruption Rapid advancements in technology can lead to uncertainty about how new technologies will impact existing businesses or industries. 5. Misleading Marketing Marketing messages that are exaggerated or unclear can mislead consumers. E FFE C TS OF MARKET C ONFUS ION IN FINAN CIAL S ERV ICE MARKET ING : P O OR D E CI SIO N -MA K I NG Con su mer s may make su bopt imal fi nan ci al dec isi on s due t o a l ack of un der stan di ng. E RO SI ON O F T RU ST Mar ket co nfu si on can er ode co ns ume r tru st in fi nan cia l in stitutio ns , as cu st ome rs may fe el mis l ed or ov er whe lme d by un cl ear in for mat io n. I NC RE A SE D CO MP L A I NT S A N G RE GU L A T ORY SC RU T IN Y Con fus io n can l ead t o an in cr eas e in cu stome r co mplai nts, l egal dis pu tes, or in ves tigati on s by r egul ator y bodie s in to wh ether adve rtis in g or mar ket ing pra ct ice s ar e mis l eadin g. H ERE ARE S OME S TRAT EGIE S T HAT C AN H EL P PRE VE NT C ONFUS ION AND E NH ANC E C US TOME R UN DE RS T ANDIN G : SIMPLIFY C OMM UNICATION Avoiding Jargo n a nd Use Visual Aids: Use cl ear, plain l anguage t hat is easy f or t he average con su mer t o understand. PROVIDE CLEAR PRODUCT DIFFERENTIATION Emphasize Key Differenc es a nd Se gment by Cust omer Nee ds: When offe ring multiple pro ducts, make it cle ar how t hey differ. Tailor pro ducts a nd mar keting messages to spec ific cust omer segme nt s (e. g., st udents, families, high-net -wort h individuals). TRANS PARENCY IN FEES AN D RIS KS Discl ose All Costs and Explain Risk s Upfro nt : Ensure t hat all f ees, charge s, and pot ential costs are prom ine nt ly displ ayed in market ing mat erial s. Cle ar ly out li ne pot en tial ri sks f or investme nt produc ts or l oans, suc h as market vol ati lit y or in te rest rat e chang es. CONS ISTENT ME SSAGIN G Align Ma rketing Across Cha nnels a nd Co ordinate Across Products : Ensure t hat all market ing mat erial s, w het he r on a websit e, in print, or on soc ial me dia, commu ni cate t he same me ssage. Use cl ear produc t nam es and con si st en t descripti ons. EDUCATE THE C USTOMERS O ffer Educational Re source s a nd Cust omer Suppo rt: Provi de consumers with educ ational con ten t l ike g uides, webi nars, or t ut ori als t hat ex pl ain h ow f inancial produc ts work. Make customer support easil y acc essi bl e f or t hose who have quest ions. To mitigate market confusion, it's essential to: Enhance Clarity: Provide clear, consistent, and accurate information to stakeholders. Improve Communication: Use transparent and effective communication strategies Stay Informed: Keep up with market trends, policy changes, and technological advancements. Seek Feedback: Regularly gather and act on feedback from customers, investors, and other stakeholders. Adapt Strategies: Be flexible and willing to adjust strategies in response to changing conditions and new insights.  5 Common Marketing Blind Spot 1.) Financial blind spots occur when business owners are not fully aware of the company’s financial situation. 2.) Communication it needs help managing workloads or want more remote support, employees need to hear from managers. Unfortunately, many managers overestimate their ability to communicate effectively which is a shame, because uncommunicative managers are often perceived as bad bosses — and can even cause people to quit. 3.) Capacity Workforce Capacity, which means directly tied to business performance and ROI. 4.) Operational It often caused by inefficiencies or weaknesses in daily activities. These blind spots can be rooted in inadequate processes, ineffective resource allocation or a lack of transparency within an organization. 5.) Strategic It occur when organizations fail to anticipate or adapt to industry trends, market shifts, or emerging technologies. These blind spots can stifle innovation, hinder growth, and result in loss of competitive advantage. New Perspectives in Marketing  1. Digital Transformation 1.1. Rise of Social Media Marketing Social media platforms like Facebook, Instagram, Twitter, and YouTube have become essential tools for marketers. These platforms allow businesses to engage with their audience directly, create personalized content, and build brand communities. Social media marketing leverages the power of user-generated content, influencer collaborations, and targeted advertising to reach specific demographics. 1.2. Content Marketing Content marketing focuses on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience. It aims to drive profitable customer action by providing informative, educational, or entertaining content. This approach builds trust and positions the brand as an industry leader.  2. Data-Driven Marketing 2.1. Big Data and Analytics The explosion of big data has revolutionized marketing. Marketers now have access to vast amounts of information about consumer behavior, preferences, and trends. Data analytics tools help in interpreting this data to make informed decisions, personalize marketing efforts, and predict future trends. 2.2. Personalization and Customization Consumers today expect personalized experiences. Data-driven marketing allows businesses to tailor their messages and offerings to individual preferences. Personalized emails, product recommendations, and targeted ads are examples of how businesses can cater to the unique needs of their customers.  3. Omnichannel Marketing 3.1. Integrated Marketing Communications Omnichannel marketing ensures a seamless customer experience across all channels, whether online or offline. It integrates various marketing channels, such as email, social media, websites, and physical stores, to provide a consistent message and user experience. 3.2. Customer Journey Mapping Understanding the customer journey is crucial for effective omnichannel marketing. By mapping out the different stages a customer goes through before making a purchase, businesses can identify touchpoints and optimize their marketing strategies to guide customers smoothly through the buying process.  4. Sustainability and Ethical Marketing 4.1. Green Marketing With increasing awareness of environmental issues, consumers are becoming more conscious of the brands they support. Green marketing focuses on promoting products and practices that are environmentally friendly. Businesses that adopt sustainable practices and communicate their commitment to the environment can attract eco-conscious consumers. 4.2. Corporate Social Responsibility (CSR) Ethical marketing emphasizes the importance of social responsibility. Companies are expected to contribute positively to society and operate transparently. CSR initiatives, such as community development projects, fair trade practices, and ethical sourcing, enhance brand reputation and foster customer loyalty.  5. Experiential and Engagement Marketing 5.1. Brand Experiences Experiential marketing creates memorable brand experiences that engage consumers on an emotional level. This can include events, interactive displays, and immersive experiences that allow customers to interact with the brand in meaningful ways. 5.2. Engagement through Storytelling Storytelling is a powerful tool in marketing. By crafting compelling narratives, brands can connect with their audience on a deeper level. Stories that resonate emotionally with consumers can create lasting impressions and build strong brand loyalty. C OM M O N M A RKETI NG BL IN D S PO TS P OO R CO MM U NICATI ON Po or c om m u ni c a t i on am o ng le ade rs c an le ad to m is un d er s t and in gs an d n eg at iv e o ut c o me s a s t h ey o ft en o v er es t im at e t h eir s kills , r es u lt in g i n a g ap b et w ee n t h eir in te n de d m es s ag e a n d wh at e mp lo y ee s g ras p. NE GLE CTING TO OU TSO U RCE Du r ing t h e g ro wt h p has e o f a b us in es s , t h e t em p t at ion t o h oar d c ash flo w o ft en le ads t o n eg le ct in g t o p p rio rit ie s like c lie n t s, e mp lo y ee s , an d o pe r ati o n s. To p re ven t lo s ing fo cu s , it 's ad v is able t o av o id o v er ex t e nd in g b y t akin g o n t as ks b ey o n d e xp e rt is e an d in st e ad c on s ide r o ut s o u rc ing , p art ic ular ly fo r s p ec ialized f iel ds like a c co u nt i n g an d m ark et in g. LA CK O F G OA L SET TING G oals ar e c ru cial f o r a s u cc es s fu l b us in es s. Th ey p ro vid e a r oad m ap for p ro g re s s , allo win g you to m o nit o r ac hie vem e nt s an d e nc o ur ag e e mp lo y ee s t o wo r k t o ge t he r t o war ds s h are d t a rg e t s. By o ut lin in g t h es e g oal s i n y o ur b us in es s p lan an d c om m u nic at ing t h em e f f ec t iv ely t o y o ur s t aff, y o u e ns u re e v er y on e i s o n t h e s am e p age , c re at in g a u ni f i e d v is ion fo r g ro wt h. INAB ILI TY TO ADA P T TO CHA NGE W ith n ew t ec h no lo g ie s c on s t ant ly o n t h e h or izo n , c han g e h app e ns r a pi d ly. I t’ s e asy t o fin d c om fo rt i n t h e s t at us q uo an d c on s eq u en t ly ig no r e in du s t ry ad van ce m en t s. Un f o rt u n ate ly , t h is i s a s u re fire way t o lo s e c us t o m er s an d le t y o ur c om p et it o rs o ver t ake y o u. LA CK O F E MP LO YE E AP PR E CIATIO N A m i sc o n c e p t io n t h at r et a i ning e m p lo y e es i s a se p a ra t e e ffo r t fr om b u il d i n g a su c c e s sf ul b usi ne ss. Bus i nes se s o ft e n fo c u s o n shor t - t e rm g o al s , o ve r l o o ki n g t h e l o n g- t e rm va l u e o f a st a b l e and e n g ag e d w o r kf o rc e. The y u n d e re s t im a t e t h e h i dd e n c o st s as so c i a t ed w i t h h i g h t ur n o ve r , su c h as l o st p ro d u c t i vi t y an d k n o w le d g e , an d fa il t o r ec o g n i ze t h e d ir e c t l in k b e t w ee n e m p lo y e e r et e n t i o n an d c ust o m e r sa t i sfa c t i o n. By n e g l ec t i n g t o i n ve st i n e m p lo y e e sa t i sfa c t i o n , c o m p an i e s m i ss o u t o n a p o w e rf u l o p p o rt u n i t y t o i m pr o v e t h e ir b o t t o m l ine an d c r ea t e a m o r e sus t ai na bl e and t hr iv ing o r gan i zat i o n. C LEA R PE RSP EC T IVE IN M ARKE T IN G Ex p lor in g n ew p er s pe ct ive s i n m ark et in g o ft en r eq u ir es r eim ag in in g t ra d i t i o nal m et h o ds an d ad op t in g in no v at iv e s t rat e gie s t h at a li g n wit h c ur re n t c on s u me r b eh av io r. He re i s s o me n ew p er s pe ct iv e t h at will p rac t ice an d h elp t h e fiel d: SET GO ALS Sett ing effective goals can hel p you det er mine your st rat egy audience, det er mine the specific outcome, and det er mine the st rat egy to get you there. I t als o will hel p you to guide your act ions and provide a roadmap for achiev ing des ir ed outcomes. CR EA TE AND DO CUM ENT YO U R ST RA TEG Y This will expla in the st rat egy and plans for how the st rat egy will be implem ented by following this st rat egy : Vision and Mission Conduct a Sit ua tional Ana lysis Set St rat egic Goals and Objectives Develop an Act ion Pla n and; Monit or Review Pr ogress P ER SONA LIZ E Y OU R MAR KE TING This st rat egy uses data to ta rget and reta rget relat ions hips wit h customers, specific customer interests , buy ing behav ior , and what ar e product preferences to offer. INV EST IN CON TEN T This st rat egy applies to any ty pe of bus iness. This will hel p the bus iness enhance its vis ibilit y, credibility, and engagement wit h the audience ta rget.  THE VA LUE OF CLEA R COMMU NI CATI ON Th e valu e o f c lear c om m u nic at ion p lay s an i m po r t ant r ole i n t h e c ur re n t b us in es s lan d sc ap e. I t i s a f o un d at i on fo r e f f ec t iv e c ollab o rat io n an d d ec is io n - m akin g wh e n i t c om e s t o f in anc ial m a t t er s an d is s ue s. F ro m the p er s pe ct ive of in divid u als , fin anc ial c om m u nic a t i on h elp s i n m an agin g p er s on al fin anc es , m akin g in f or m ed i n v es t m en t d ec i s io n s , an d p lan ni n g fo r t h e fu t ur e.  E XA M PL E S W HY C LE AR C OM MU N IC AT IO N I S IM PO RT ANT : E FF E CTIV E D EC ISI ON -MA KING Clear and concise financia l communicat ion provides the necessa ry infor mation for decision-mak er s to evaluat e opt ions , as ses s ris ks, and mak e infor med choices. Thus, it ena bles them to effectively all ocat e resources , identify growth opport unities, and mit iga te financia l ris ks. INV EST OR RE LA TIO NS I t in vo lves tim el y a nd a ccu ra t e r ep or ting of fi na nci a l r esul t s, p r ovid ing in sigh ts in to t he co mp a ny ’s p er for m a nce , a nd a d dr essi ng in ve st-co ncer ns. E ff ect iv e in ve st or r ela t io ns ca n enh a nce in ve st or co nfid en ce a nd a t t r ac t p ot ent ia l in ve st or s. R ISK MA NAG EME NT By effectively communicat ing ris ks as socia ted wit h investments , financia l products , or bus iness opera tions, organizations can mit iga te pot ent ial losses and protect st akeholders ' interests. CO MP LIANCE AN D G OV ER NANCE Clear financia l communicat ion ens ur es complia nce wit h regul atory requir ements and corpor ate gover nance st anda rds. I t hel ps organizations maint ain tr ansparency , account abil ity, and ethical practices in financia l repor ting and decision-mak ing. STA KE HOL DE R E NGA GE ME NT I t ena bles organizations to communicat e their financia l per forma nce, initiat ives, and impact on st akeholders , building tr ust and credibility.  F OU R SP E CI F I C DR IV ER S WHE RE C OM MU N IC A T IO N DI RE C T LY I M PAC TS VAL UE. MO NO PO LY CONT RO L Ho w we ll d if f e re n tiat ed y ou r b us in es s i s fro m c om p et it or s i n y ou r in du s tr y CU STO ME R SAT ISFA CTIO N Th e like lih o o d t hat y ou r c us t o me r s will r e- p ur ch as e an d r ef e r y ou. HU B & SP OK E Ho w y ou r b us in es s wo u ld p er for m i f y ou we re u ne x pe ct e dly u na b le t o wo r k fo r t hr e e m o nt h s. GR OW T H P OT ENT IAL Yo ur like lih o o d t o g ro w y ou r b us i n es s i n t he f u tu r e an d at wh at r ate.  THANK YOU FOR LI S TENI NG! Me mb e rs: Fl o r enc e Cif ra M yka J ua nil l o J ul l ia L e t Li ndo Neft hel M ang ul a yo n Ca rl A dr ian Dev el o s Or l ynne Jo y R o dri g uez J an Rav en V il l anue va M ar ia An ge l a L ac hic a Rex ter Ob le s M ikka h Ze il L ana r ia s J er ich o Ma nuel Ce l eri dad J es s ica Opa d a Ro d m ar P ens o na