Marketing For Financial Services
Recap
What is marketing
Some marketing examples
How these firms turned private or social need in to profitable business opportunity:
[Link]
[Link]
Jio / JioPhone
Bira
Ola Sharing
The Value Management Cycle
Value
Value
Capture
Creation
Value Communication
E.g.: Coke Zero, Pulse candy
What is Marketed?
1. Goods: Cars, watches, cosmetics, perfumes etc..
2. Services: Airlines, hotels, barbers, lawyers etc.. (Mix of goods and services: fast food meal)
3. Events: Olympics, world cup, artistic performances
4. Experiences: Theme based restaurants, amusement parks, Pepperfry
5. Persons: Artists, musicians take help from celebrity makers
6. Places: Cities, states, regions, whole nations compete to attract tourists
7. Properties: Tangible vs. Intangible
8. Organizations: Socially useful initiatives (ITC)
9. Information:
10. Ideas
GO_PIES
Marketing Can Promote Ideas
Who Markets?
Marketer: A Marketer is someone who seeks a response- attention, a purchase, a vote, a donation-
from another party, called the prospect.
Marketers are required to stimulate demand for their products (that’s one of their many job
responsibilities).
Marketer are responsible for demand management.
Demand States
Overfull Demand: When companies manufacturing capacity is limited but the demand is more than
supply. (Pulse)
Full Demand: Consumers are adequately buying products put into market place. (Ola)
Declining Demand: Consumers begin to buy the product less frequently or not at all. E.g: CD, Ipod
Non-existent Demand: When consumers may be unaware or uninterested in product/service
(encyclopaedia, online courses, fire extinguishers)
Irregular Demand: Consumers purchases vary on seasonal, monthly, weekly and so on. (E.g.
Umbrellas, air conditioners)
A Simple Market System
Market is considered as collection of buyers and sellers who transact over a particular product/service.
Structure of Flows in a Modern Exchange Economy
Key Customer Markets
Consumer Markets Business Markets
Process for selling products Process for selling products or
directly to consumers. services to other businesses.
B2C B2B
Single decision maker Group decision making
Individual possible objections Multiple possible objections
Influence the person, close the Influence the person, and they become an advocate
sale internally
Single face to face contact may Purchase process is complex and requires several
lead to purchase meetings, often involving groups
E-commerce is possible Usually face to face interactions
Marketplaces vs. Marketspaces vs. MetaMarkets
Marketplace:
Physical, such as store you shop in.
Marketspace:
Digital, as when you shop on the internet.
MetaMarkets:
Cluster of complimentary products and services closely related in the minds of consumers,
but spread across diverse set of industries.
The Changing Paradigm
Traditional New
“Build a better mousetrap and the world will For one thing, there are exponentially more mousetraps
beat a path to your door”-- Ralph Waldo in the market. Customers have more ways to kill the
Emerson mice
Inference: Simply having a product/service
superior to competition would attract more Under this logic: Role of marketing is not to say, “Our
customers. mouse trap is better”, but to say “ if you want to catch
mice, the best time to set a mousetrap is at 8’0 clock”.
In this way marketing person is additionally adding value
Under this logic: Role of marketing was to the product by offering advice and expertise.
communicating value to customer E.g: Pepperfry
Why Change?
You can be replaced
1. Globalization: Today the average company has more than twice as many competitors as it had five
years ago. The reason for this hyper-competetion is that our competitors are no longer local
2. Big Data: Consumer today access 20 times as much data about your business as they could have five
years ago.
With internet customers can quickly find competitors, testimonials
The Challenges for Marketing
Competition
E.g. Telecom, Aviation
Technology advancement
E.g. McDonalds, “Smart”
Globalization
E.g. McDonalds,
Retail Transformation
E.g. Return policy, COD
Consumer resistance
E.g. Lenskart, Apple watch
Industry convergence
E.g. Apple watch, Mobile Phones.
Capabilities leveraged by Changing Marketing
Marketers can use the internet as a powerful information and sales channel
Marketers can tap social media to amplify brand image
Marketers can reach consumers on the move with mobile marketing
Companies can make and sell individually differentiated goods.
Micro target marketing
Marketers can collect rich information about market, prospects and competitors.
Companies can facilitate and speed up communication flow
Core Marketing Concepts
Segmentation, Targeting and Positioning (STP)
Segmentation: Dividing market into segments. Identifying and profiling distinct group of
buyers. For e.g. by examining demographics, behaviour.
Targeting: Evaluate the attractiveness of each segment.
Identifying segment which present the greatest opportunities.
Positioning: For each target market, firm positions the intended central benefit(s).
For e.g:
1. Volvo develops its cars for buyers to whom safety is a major concern, positions its vehicles
as the safest a customer can buy.
2. Get it done at home
Interpret an STP strategy for a product or service of your choice ?
Core Marketing Concepts
Needs, Wants and Demands.
Needs are the basic human requirements such as food, water, clothing and shelter.
Needs become wants when they are directed to specific objects that might satisfy the need.
E.g.: Within food, an individual may want rice, curries, yogurt.
Wants are shaped by our society.
Demands are wants for specific product backed by an ability to pay.
E.g: Many people want Mercedes, only few are able to buy.
Therefore, companies must measure not only how many people want their product, rather
how many are willing and are able to buy.
Core Marketing Concepts
Offerings and Brands
Companies address consumer needs by putting forth a value proposition, a set of benefits that
satisfy those needs. The intangible value proposition is made physical by an offering, which
can be a combination of product, service, information and experience. JioPhone
Brands:
Offering from a known source.
Each companies tries to build a strong and unique brand image.
E.g: McDonald ( burgers, convenience, cleanliness etc.)
Core Marketing Concepts
Satisfaction:
Persons judgement of a persons perceived performance in relationship to expectations.
Perceived Performance < expectations-
Disappointed
Perceived Performance = expectations-
Satisfied
Perceived Performance > expectations-
Delighted
Core Competency
Traditionally, companies owned and controlled most of the resources required for business
(labour, power, material, machinery..).
Now they outsource less critical resources if they obtain better quality or lower cost.
E.g. Apple, Colgate, Parle-G.
(They just focus on product design and marketing).
Characteristics of core-competency:
1. Application in wide variety of markets/products
2. Difficult for competitors to imitate
*Well fitted core competencies and distinctive capabilities into tightly interlocking “activity
systems” leads to competitive advantage.
Core Marketing Concepts
Marketing Channels:
Reaching to a target market
Distribution Channels:
Display, sell or deliver the product or service to the buyer. Online or offline
Service Channels:
To accomplish transactions, service channels such as transportation companies, insurance
companies are roped it.
Communication Channels:
Flows in Marketing Channels
What are the different kinds of flows:
Forward Flow: From company to customer—basically goods and services
Backward Flow: From customer to company—mostly the value, also product.
Flow both ways: Which is mostly, information
Core Marketing Concepts
Supply Chain:
Longer channel stretching from raw material to components to finished products carried to
final buyers. E.g. Glass Bottle
Competition:
All the actual and potential rival offerings and substitutes a buyer might consider.
E.g. Car manufacturer may buy steel from TATA steel, SAIL, Import from abroad, buy
aluminium for certain parts to lighten the weight or buy engineered plastic.
Marketing Environment
1. Broad Environment: Six Components (Technological, economic, political, social-cultural)
2. Task Environment: Actors engaged in producing, distributing and promoting the offering.
Changing Company Orientations Toward the Market
The Production Concept
• Oldest in business.
• It holds that consumers prefer products that are widely available and inexpensive.
• Managers focus on achieving high production efficiency, low cost and mass distribution.
• E.g. SMEs
The Product Concept
• It proposes that consumers favour products offering the most quality, performance, or
innovative features.
The Selling Concept
• It states that consumers when left alone won’t buy enough of the organizations products.
• Therefore, the organization must undertake aggressive selling and promotion effort.
• E.g. Unsought products, Insurance
The Marketing Concept
Based on customer-centred, sense-and-respond philosophy.
The job is not to find right customers for your product rather right products for your
customers.
E.g. Dell doesn’t prepare perfect computer for its target market, rather it provides platform
through which each customer customises its needs.
The Holistic Marketing Concept
Holistic marketing acknowledges that everything matters in marketing- and that a broad,
integrated perspective is necessary.
•Y •Y
Internal Performance
Marketing Marketing
Integrated Relationship
Marketing Marketing
•Y •Y
Relationship Marketing
Aims is to develop deep, enduring relationships with the people and organisations that directly or
indirectly affect the success. Investment Banking, Return Policy
Helps to earn and retain their business.
The ultimate outcome of relationship marketing is the building of a unique company asset called a
marketing network.
Four key constituents for marketing network are:
1. Customers.
2. Employees.
3. Marketing partners (channel partners).
4. Members of the financial community (shareholders, investors).
** The principle is simple: Build an effective network of relationships with key stakeholders and profits
will follow ..OlA
Integrated Marketing
It works on a rationale that “whole is better than sum of its parts”.
Synergy
Leverages 4Ps of marketing to create, communicate and deliver the value.
Product, Price, Place, and Promotion.
SIVA (acronym for these new customer-centric competencies)
Solution: develop and manage solutions not just products
Information: offer information instead of simply promoting
Value: create value instead of obsessing with price
Access: provide access wherever, whenever, and however the customer wants to experience your solution
rather than thinking merely where to place your products.
Internal Marketing
• Marketing is no longer the responsibility of single department.
• It is the task of hiring, training, and motivating able employees who want to serve
customers well.
• Ensures everyone in the organization embraces appropriate marketing principles.
Performance Marketing
• It entails the imperative of financial and nonfinancial returns to business and society from
marketing activities and programs.
• Companies are going beyond sales revenue to examine the marketing scorecard. (Market
share, customer satisfaction, Churn rate).
1. Financial accountability: Marketers are asked to justify their investments in financial and
profitability terms while building brands and increasing consumer base.
2. Social responsibility marketing: CSR activities, Recycling
Marketing Mix: 4 P’s of Marketing
Product
(Product variety, quality, design, Features, Brand name, Packaging, Warranties, Returns.)
Price
(List price, Discounts, Allowances, payment period, credit terms).
Promotion
(Sales promotion, Advertising, Direct marketing, Sales force, Public relations)
Place
(Channels, inventory, Assortments, transport)
Analyse the marketing mix for a brand of your choice
Thank You
