Marketing of financial products Marketing Mix - Product and Product Mix
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1 Marketing of Financial Products Lecture – 4 Parveen Sharma 1 MoFP for TKW’s
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Marketing of financial products Marketing Mix - Product and Product Mix
Transcript of Marketing of financial products Marketing Mix - Product and Product Mix
1
Marketing of
Financial
Products
Lecture – 4 Parveen Sharma
1
MoFP for
TKW’s
2
Contents
Marketing Mix
The concept
Marketing Mix - Product
Defining Product
Product Mix
Product Life Cycle
The Boston Matrix
Product Strategy for FI’s
Product Development Process
MoFP for
TKW’s
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It is the set of tools that the firm uses to pursue its marketing
objectives in the target market
Levers marketers adjusts to satisfy customers
Marketing mix is composed of a large battery of advices which might
be employed to induce customers to buy a product.
Marketing Mix = Controllable Variables(4P’s)
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Marketing Mix
MoFP for
TKW’s
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Market Segmentation – The concept
MoFP for
TKW’s
Traditional Marketing Mix Modified Marketing Mix
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Market Segmentation – The concept
MoFP for
TKW’s
Consumer: Life stage solution by Money Back plans
Consumer convenience
Consumer Cost as Price
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It is appropriate to reconsider the traditional marketing mix in concept of
services. As the challenges encountered by service marketers – like
inseparability & perishability necessitate the extension of marketing mix to
include People, Process & Physical evidence.
The Extended Marketing Mix(7P’s)
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Market Segmentation – The concept
MoFP for
TKW’s
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical Evidence
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The additional P’s in Service Marketing
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Simultaneity or inseparability of service provider from customer
(People)
Inability to hold inventory marking it critical for the service process to
flow smoothly to match demand & supply(Process).
The need to make highly intangible service offering appear tangible
(Physical Evidence).
MoFP for
TKW’s
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8 MoFP for
TKW’s
Kotler opines ‘A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or
need’.
A Glance at Banking Products
Marketing Mix - Product
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Marketing Mix - Product
9 MoFP for
TKW’s
Do not just sell Products instead sell solution that customer needs.
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10 MoFP for
TKW’s
Marketing Mix - Product
Product Mix
Set of all products offered for sale/investment
It consists of various Product Lines
Dimensions of Product Mix
Width
Depth
Length
Product Mapping: to show the position of a companies products
against competitors products
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Marketing Mix - Product
A Look at the broad Product Mix of DSP
Blackrock AMC
MoFP for
TKW’s
Product Mix Road Block advertisement by Chase
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12 MoFP for
TKW’s
Marketing Mix - Product
Product Life Cycle
No product can get a consistent positive response for longtime, hence if FI’s are
aware of PLC stage of their products necessary steps can be taken to overcome
the adverse condition.
PLC helps marketers in making possible optimal development of marketing
resources.
PLC is not applicable to generic banking services like Current A/c, Saving
A/c…
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13 MoFP for
TKW’s
Marketing Mix - Product
Product Innovation
Product innovation & modification
is very crucial to increase the sales of
a saturated /matured products.
Reliance Any Time Money Card collects Rs.
1,500 crore. The fund house has issued over 3
lakh ATM cards to investors so far(as on Jan
2012). Reliance ATM Money Card was launched
in 2006 and modified Nov 2011.
Source: Café Mutual
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14 MoFP for
TKW’s
Marketing Mix - Product
The Boston Matrix
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TKW’s
Marketing Mix - Product
Product Strategy for FI’s
Sound Product Mix
Blend of Core & Peripheral services
Identify emerging opportunities
Continuous product innovation & development
Sound product focus and management
Declare your product obsolete much easier than others
Product Association & Tie ups
Equal focus on the other P’s, C’s.
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16 MoFP for
TKW’s
Marketing Mix - Product
Product Development Process
Ide
a G
en
era
tio
n
Internal
- Product Function
- Sales Requirement
- Other Employees
External
- Distributor
- Competitors
- Suppliers
- Technological & regulatory developments
Scre
enin
g
Ascertaining whether the proposed product is in sink with the organization objective
Busin
ess A
naly
sis
Analyzing chances of success by formal research
Quantitative parameters
- Demand forecast
- Cost projections
- Competitive activity
Develo
pm
ent Turning the product
concept in reality
Includes:
- Filing
--Launching
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Term for the Lecture
18 MoFP for
TKW’s
RBI key policy rates
Repo
Reverse Repo
CRR
SLR
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Thank
You MoFP for
TKW’s
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