Aspects of Financial Services Institutions - Essay Example

? Marketing A The of financial services has been very interesting to me. Throughout the lectures, I have been active and motivated. From the 1st to the last tutorial, I was able to learn a lot. For sure, knowing the definitions and terms involve in financial services was very important as these gave me the background in understanding the way products and services are traded in a financial market. My knowledge on the extensive range of the instruments that are commonly used in the financial service trade extremely improved. This further enhanced my insight on various financial services like, retail investments, private banks and corporate investments. My understanding of insurance and reinsurance companies, pension, stock exchanges, leasing and lending companies was also increased. In addition, marketing knowledge enable me to know different ways that I can use to create value, and not just products. In addition to the above lessons, at the end of the chapter I appreciated the role of technology which has shaped marketing and in the end, affected the financial service delivery positively. This happened because the marketers identified essential issues like the product element, place and time, process and productivity and quality. I also learned on the financial service environment. I learnt three main lessons; first I developed knowledge on essential external influences that affect the financial services. These include global financial crisis like high risk lending and US led systematic disaster (Madura, 2010, 31). Second, I learnt to appreciate the roles of the environment scanning in the marketing of financial services. The major roles include, encouraging the competitors, avoiding credit crisis, to address the externalities and protecting the investor. I learnt that these can easily be done through systematic methods that are used in the analysis of the macro environment for financial investments. The analysis can only be done on political, socio-cultural, economic and technological variables. Lastly, I gained knowledge on how to integrate a stakeholder perspective into environment scanning. This is because markets are only concerned with coming up with strategies that can ensure success in financial services. Therefore, environmental scanning is essential in establishing the most suitable place for financial investments. These lessons have enabled me to developing coping strategies and skills. For sure, I can now face predicaments and challenges wholeheartedly because I know a change in tactics will be enough to propel me through the course. I can now analyse different situations and give judgment based on the context. Lessons on the market mix and financial services were equally necessary. This is because I gained insight on the management of the customer relationship. This I realized can only be undertaken by managing people, price, product promotion and place. Thus, to the service mix, I got to know that other 4ps of process, people and physical evidence must form part. This knowledge further increased my understanding of the way financial institutions like banks win the trust of their customers. Indeed I learnt that it is only through market mix that they can promote their core and augmented services like internet banking and loans. I have increased my management and leadership skills (Madura, 2010, 35). I now know that, as a good leader, I must be a manager of myself, and a leader of people around me. I have developed strong understanding skills, and now I accept ideas and view of the significant others provided that they are consistent with my standards and values. Indeed I had knowledge on branding. However, I did not know how I can build and sustain financial branding. Thus, lectures on the same subject were necessary as part of my course plan. Certainly, I know appreciate how branding theory applies to the marketing of financial services. Secondly, I now appreciate the way branding contributes to the promotion of the financial services. Thus, in the long run I became aware of the corporate communications and corporate branding. For sure, global and digital branding are important components in building and maintaining financial branding. This is because; these two are enough to expose the weakness in financial institutions. Furthermore, measures of brand equity are enough to effect changes in the market place. Consequently, it is significant that the institutions identity is improved, by the institution itself and not the stakeholders. This has enabled me to develop branding skills. Now I can sell off my ideas to my seniors and target audience without fear. These initiated my desire to gain an in-depth understanding of the marketing strategies in financial service. Here, I realized that one cannot formulate marketing strategies without coming up with concise financial services objectives. Therefore, regardless of the strategy, whether offensive or defensive, the marketing strategy must ensure balance between the institutions acquisitions and the customers’ retention. I further learnt that niche strategy can be very essential in financial service and marketing. This is because; it can facilitate the promotion of a company’s products and services (Madura, 2010, 22). Additionally, lessons on adopting friendly strategies like putting in place corporate social responsibility can propel a financial service institution into greater heights. Moreover, it is the marketing strategy that a given institution will use to escape the credit crunch. In other words, it is the institutions selling point. However, my most vital lessons here were the roles of marketing strategy in building trust. Through this, I realized that the best marketing strategy can only help the financial institutions when the company has built trust. In this regard, the institution must promote vital values like honest, empathy and active listening. These virtues are important in improving in building trusts and ensuring that the company walks the talk. In addition, any marketing strategy must help the company to win people’s confidence. In fact, it is only these virtues that can enable the company to reach the target market niche. These lessons have motivated me and influenced my understanding of varied circumstances. I now know that anything I do should not conflict with my values. Therefore, I have undertaken lessons to sharpen my active listening skills. This has helped me to win people’s confidence and reassure them of my trustworthiness. Regarding the distribution of the financial services, I learnt that, the normal distribution channels can just work. However, the only difference is that the financial institution must take keen consideration in adopting the suitable channel. Whichever channel they consider appropriate, they must be sure that they can be applicable to all its branches. Hence, before implementing any suitable channel, I learnt that the financial institutions should do price comparison (Madura, 2010, 25). These can enhance their banking skills; for instance, they can enable the financial institution, particularly the banks or any other dealing with the investment funds, to choose the most suitable remote banking strategy. This implies that a bank can choose to use multichannel banking, and must come up with ways of managing these multichannels. Above all, the multichannel distributions must be accepted by the customers. This is because; it is the customers who are the chief beneficiaries of the products and services of the financial institution. Following additional studies that I did, I realized that most customers prefer varied channels, which can enable them to access products and services as they desire. However, most profitable customers like remote channels like ATMs, internet banking, telephone and mobile banking. On the other hand, those institutions that prefer face to face methods of distribution find it exceptionally difficult. This is because; this adds into the production cost and in the long run force a company into unnecessary credit ditch (Madura, 2010, 32). These lessons have taught me that the channel I use to pass across my ideas to the targeted audience is very important. They have taught me to be calm, composed and organized in my undertakings. Thus, my organization skills have been improved extremely. I appreciate the lessons on the roles of communication in the marketing of financial services. This is because; the choice of the receiver determines the communication channels that the financial institutions must use. These communication channels further determine the channels of distribution. Thus, in the modern business, the social media must not be ignored. In fact, the institutions that have endeavoured to include them in their channels have always succeeded. This means that the roles of Twitter and Facebook are appreciable. I also learnt that the current market has moved from supply driven advertisement. Instead, the today’s market only favours demand driven marketing strategies. Thus, any institution must employ varied marketing mix. I have improved my communication skills. This is because; it is only through good communication that I can communicate with others effectively. Furthermore, I know use social media like Twitter and Facebook, channels of communications that I was not using previously. Segmentation is very vital in targeting the market place. Thus, a financial institution must only position itself in essential strategic marketing activities (Madura, 2010, 25). These lessons informed my understanding on the need to align the organizations expectations with their objectives and positioning. I also learnt that pricing is essential in financial services. In financial institutions, pricing involves fee deductions, usually from a customer’s accounts. This usually leaves the customer disempowered; thus the pricing strategy must be competitively set. Furthermore, pricing must be able to meet customers’ expectations. This is because it is not east to build trust and win customers confidence if they perceive that the pricing is not fair. As much as the customers are not very conversant with the pricing in the financial institutions, it remains a very vital factor in influencing their loyalty to the institution. It became known to me that a value based approach is the most suitable in ensuring flexible prices in these learning’s. Moreover, financial institutions must seek to create value to their products. This is because customers most often do not look for the financial institutions (Madura, 2010, 35). Instead, they learn of the institution through its products. However, only creative product can meet their expectations; thus lessons on creativity were very good for my learning. Indeed, this has shaped my innovation skills. B I know that all financial institution needs an outstanding and talented employee. The employee of their need must be able to undertake financial services in a competent manner. Thus, these lessons have shaped and sharpened my knowledge and experience with financial institutions. In fact because I now know all types of the financial institutions and services that they offer, I know exactly where to consider for employment. This knowledge will increase my precision in job search because I will only go for the relevant institutions. I have learnt of the different environments that any marketer needs to be aware. This information can help me handle negative externalities and external influences. Thus, I have developed analytical skills that are very essential for a company in crisis. In addition, my ability to analyze and handle global challenges to the financial institutions put me at a better position for job consideration. This is because, I will not only undertake the duties detailed within my job description, but I will also analyze and prevent crisis before they befall. For instance, I can come up with solutions that will ensure that after a natural disaster, the institution will still retain customers. In addition, with great analysis skills I am able to prevent economic crisis and credit crunch, by putting measures that are consistent with my analysis (Madura, 2010, 35). Thus, I have a skill that only few individuals’ posses. I have learnt to win people’s confidence and trust. These are the key qualifications for any individual within the marketing industry. Indeed, I can win their trust because I have virtues that are desired by the customers. I am an honest individual, who is accountable and has got no past on integrity question. In addition, I have taken lessons to improve my listening skills. Thus, I have got special skills that make me conspicuous in the financial service industry. I have also developed empathy skills; this means that I can help a financial institution to be in the shoes of the customer. In so doing, the financial institutions can come up with products and services that are needed by the customers. My communication skills are magnificent. This means that I can communicate fluently and effectively. The fact that I have joined the social media like Facebook and Twitter also makes me capable of winning customers from the entire divide. This is because; I can win the young generation as well as the aged who do not enjoy social media. Furthermore, I am eloquent, a skill that is desired by any institution. Indeed, this will enable me to perform well in the institutions presentations. Any institution wants an individual who can communicate well and listen actively. I posses all these skills, and I have taken lessons to sharpen them. Finally, I have gained knowledge on almost all aspects of financial services institutions. In addition, I am determined to complete my studies and be fully fit to work for the company of my choice. Moreover, I am interested in the marketing field. This put me in a strong position for future employability. With, knowledge and interest in the field of marketing, I am capable of coming up with the marketing strategies that enhances a company. In addition, knowledge in this field can make overcome any challenges that might come along. Bibliography MADURA, J. (2010). Financial markets and institutions. Mason, Ohio, South-Western Centage Learning. Read More