Marketing Financial Products

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. Financial marketers generally adopt one of the following targeting strategies -- undifferentiated marketing, differentiated marketing, and concentrated marketing.