Marketing Financial Products
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Chapter 2 : Customer Focus In Marketing Financial Products
Consumer Behavior
Factors Affecting Financial Services Buyer Behavior
Consumer Behavior: A Situational Approach
Marketing and Strategy
Marketing at the Corporate Level
Marketing at Business Unit/ SBU Level
Marketing at Functional/ Operating Level
The Role of Marketing Research
Market Analysis
Information Needs for Decision Making
Market Segmentation
Need for Segmentation
Segmentation Approaches
Segmentation Bases
Target Market Selection
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
Positioning
Organizational Positioning in Financial Markets
The Customer Service Imperative
Need for Customer Service
Ways of Improving Customer Service
Dimensions of Service Quality
Chapter Summary
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Various factors influence consumer behavior in
purchasing financial products.
A situational approach can be adopted to understand buyer behavior.
Specifically, Beckett’s matrix classifies consumers of financial products on
the basis of level of involvement and consumer confidence (which depends on
the perceived uncertainty).
Marketing has to be viewed from the perspective of three levels in an
organization -- corporate level, business unit level, and functional level.
Marketing research is an important function that contributes to the
marketing of financial products in terms of market structure analysis,
market potential, and demand forecasting. To satisfy the requirements of
marketers, marketing research provides information on customers, markets,
and the competition. Segmentation models can be broadly categorized
into a priori and post hoc approaches. Various bases of segmentation are
applicable for segmenting consumers. |
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Financial marketers generally adopt one of the following
targeting strategies -- undifferentiated marketing, differentiated
marketing, and concentrated marketing. It should be noted that positioning
in financial products marketing differs from that of other products and
services in that organizational positioning is given more importance than
product level positioning.
The corporate brand can be positioned based on various factors such as
price, relationship or service benefit, security benefit, user type,
accessibility benefit, and perceived quality.
Customer service is an important factor that differentiates the product
offerings in the service industry. Service quality can be improved along the
dimensions of tangibles, reliability, responsiveness, assurance, and
empathy. Financial product marketers need to imbibe in them the philosophy
of providing quality customer service in order to increase their
profitability. Good customer service and proper handling of customer
complaints pave the way for building lasting relationships.
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Short Case Studies / Caselets