Financial Services Marketing Reflections - Essay Example

REFLECTIVE Studying financial services marketing has enhanced and polished my skills of applying the marketing concepts on the financial services industry and what challenges does a marketer have to face while doing so. I developed an understanding that the concepts of service and direct marketing are very important for such an industry. FINANCIAL SERVICES MARKETING Marketing is about creating value for the product and has nothing to do with the product itself. Same phenomenon can be applied when one is marketing financial services. We have to generate values of the brand equity of the financial service institution for the stakeholders so that they feel that the services which they are getting are the best and that no other financial service institution could provide such facilities to them. In today’s fast paced world where there is cut throat competition amongst the participant of any particular industry it is very important to create value of the product or differentiate it in the eyes of the customer. Extensive use of connectivity and technology has benefited the financial service providers a lot because it has revolutionalised the customers experience significantly. The marketers are very frequently using social media web portals for marketing their products. CORPORATE SOCIAL RESPONSIBILITY (CSR) I got to develop an understanding that the use of Corporate Social Responsibility (CSR) can prove to be very beneficial for both the society and the organization. The financial service providers have adopted Corporate Social Responsibility (CSR) to market themselves as being the most socially responsible and ethical organization to their customers. These days people are very concerned about the social and societal issues. So organizations which take active part in CSR get a good step ahead in marketing themselves. Before studying this course I was under the perception that only a few corporate companies from certain sectors like the FMCG sector use CSR but after studying this course I found out that CSR can be practiced by any organization from any industry. RELATIONSHIP MANAGEMENT While studying this course I developed an understanding that the strategic marketing process of financial services revolve around segmentation, targeting and proper positioning of the product. The financial service business is more about building a fruitful and beneficial relationship for both the parties. The key to this successful relationship is customer satisfaction, trust and commitment. The customer should be satisfied with the services they are getting from the financial institution they are engaged with and they must have an idea that this is the best which they can get and may not be considering switching to competitors at any point in time. This service industry is Business to Business (B2B) or Business to Customer (B2C) by nature. It requires internal marketing of its values and the ideology about customer satisfaction which needs to be delivered. The staff must be competent enough to understand and satisfy the needs of the customers. It should define the staff clearly that their role is not only to deal with the customers face to face but also to support and assist the customers with the interface. This requires relationship management which is concerned directly to cater customers and be interactive with them regarding ongoing purchases and future benefits available about making certain transaction. The financial market is complicated and risky both, so the new entrants must be communicated about the volatility of the market. DIFFERENTIATION To create value of the product for the customer the marketer must first understand the nature of the financial service themselves. They must always seek for opportunities to create differentiation of the product. These opportunities can be sought by understanding the culture and norms of the individuals. Usually all that a marketer can do is to make a value proposition and then the customer will derive value in use from the offerings. Service quality and recovery are important parts of the offerings as they build the experience. PRICING STRATEGY While designing the pricing strategy of a financial service institution the prime objective is to increase market share and in order to do that the prices must be kept low. Attracting customers by showing low prices to penetrate in the market always works. It always attracts price sensitive customers who are always looking for better offers elsewhere to switch. Low pricing in financial services can only be done by reducing the fees structure deducted from their customer’s account. In the financial services marketing creating brand equity is very important. Brand is the mental picture of a company in the eyes of the customers. It can be enhanced and sustained by offering sustainable price advantage and maintaining differentiation. Practitioners although are of the view that the creation of the value of the brand only depends on the perception of the customers regarding the value proposition that the company has to offer. No matter what the company offers it cannot create a meaningful differentiation in the marketplace. The identity of the brand is created by stakeholders and not by the organization so the brand fails to create any sort of emotional dimension to it. COMMUNICATION The organization must communicate the product to its customers to de-complicate its understanding. Such products are complex in nature and have high risk associated with them. To make it easier for the stakeholders to speculate the associated risk and deal with the challenges of an abruptly fluctuating market communicating with the customers frequently proves to be a plus point as it is the backbone for the success of the business. The financial service institutions use advertisement, public relations and direct mail as a medium of marketing communication very frequently. Studying the communication process which the marketers apply proves to be a key factor in attracting new customers and in changing the perception in the minds of the customers. The marketers have also been using technology and the increase of the use of social forums as an essential mode for communicating their message to prospects. MARKETING MIX AND FINANCIAL SERVICES The service industry takes the marketing mix to a whole new level by using 7 P’s of marketing instead of 4 P’s. These are product, price, place, promotion, process, people and physical evidence. Any service industry revolves around people to satisfy their needs in such a way that their trust can be won. The product mix helps analyze the value of the product so that it could be delivered to the stakeholders. FINANCIAL SERVICE MARKETING (ENHANCING ANALYTICAL AND BEHAVIORAL SKILL) The study of the Financial Services Marketing has helped me in understanding that marketing is a process of creating value for the customers. It is not dependant on the nature of the product Financial Service Marketing can be linked to Service Marketing. The Financial Market is linked to the service sector. It is not a product but a service to assist customers in making financial decisions. Understanding this has helped me in understanding that Marketing is all about the deliverance of value to the customers. By studying this course I analyze each and every business according to their marketing channels. That whether the business is from the service industry or it deals with a specific product. I understand the importance of brand equity and about several things that could be done to create brand awareness or differentiation. I have understood that customer satisfaction is the prime objective of any business and this is what leads to creating value. I have also taken into knowledge that the financial service industry in itself is a vast field. It is not limited only to banks and insurance companies. It also deals with the brokerage houses, foreign exchange traders, commodity traders etc. All have the same product of providing services to stakeholders and assisting individuals with the volatility of the market. ENHANCING FUTURE EMPLOYABILITY Learning of this course has only polished my skills and enhanced my understanding about the marketing concepts. It has taught me that the marketing concepts can be applied anywhere to analyze and speculate the strength of an organization and market the product more efficiently and effectively. By studying this course I feel that my analytical skills have improved a lot. I have developed an understanding of the need of marketing in any specified area or segment of the industry. How the service industry directly revolves around the basic marketing principles. It has taught me about how important it is to maintain and manage customer relationship. To attain maximum level of customer satisfaction, especially when there are many competitors in the industry and there is not much to differentiate one product from the other. This course has helped me develop an understanding that the essence of success in this business is to focus completely on customer satisfaction and built relation of trust and creditworthiness. Assist the customer in achieving his investment goals. Guide him through the path because these businesses are complex and competitive both. This understanding that I have developed from this course can be implemented when I proceed to seek a job. This course is a complete guide on how to prioritize tasks and analyze the requirements of proper speculation about any class of a particular business. Any organization which takes pride in its customers and values them can achieve the heights of success. DIVERSITY By learning this course I am increasing my knowledge and understanding in detail about the importance of diversity. Diversifying is a priority in today’s fast moving world. It provides an individual with the opportunity to learn about various situations and how to deal with these situations. The learning of this course will help me excel in a career related to a brokerage house. This course also shows the importance of applying marketing principles in the financial sector and related businesses. This shows that how a pure service related product like insurance desperately needs properly monitored marketing activities to sell its services. The details of this course can also be applied on the brokerage houses which provide trading facilities in stocks, options and derivatives. The same principles and structure which we have studied in this course can be applied on these businesses. PERSPECTIVE OF TODAY’S EMPLOYERS Today’s employers are interested more in the candidates who have knowledge and know how to apply that knowledge which they studied in the practical world. They want the candidates to have knowledge about how different businesses run. This course has done the same by enhancing my knowledge about certain aspects of marketing of a financial service institution. BEING ADAPTABLE Adaptability to certain various situations can help enhance the future employability. This adaptability comes from the knowledge. When an individual has the required knowledge about various things he can adapt very easily. This is because he is ready and aware of the upcoming challenges that he would have to face. Studying about the functionality of various markets can improve that skill of adaptability. This course of Financial Services Marketing has highlighted many areas and challenges which a business of such nature has to face. Learning about these challenges has helped me in assessing all the businesses and their functionality. CREATIVITY AND INNOVATION Today’s job market has become very competitive. Employees have to undergo through several challenges on every walk of their career. Only those individuals who think outside the box become successful. It was creativity and innovation which made Steve Jobs and Bill gates successful. Wait for the right opportunity and avail it when it comes with the right attitude. Following the above mentioned attitude ensures success. Always be prepared for challenges because only those people who get through these challenges accomplish their goal. ENHANCED ANALYTICAL SKILLS Studying Financial Service Marketing has enhanced my analytical skills to great extent. I am positive that this will help increase my chances of future employability. Thorough learning provided me with the opportunity to analyze a large volume of data. This course has prepared me about how to apply various marketing models to analyze or speculate a business. Now, I can deal with problems more effectively and hope to handle problems before they become a major problem. CONCLUSION Studying the course of Financial Service Marketing has been a great learning experience for me. I have learnt many new things and this is just a small summary of what I have learnt in this report. I intend to use this information that I have learned in this course in the future and I hope that it will help me build my career and pave the path of success for me. Read More