MARKETING FINANCIAL SERVICES

Marketing Financial Services

Marketing Financial Services

Introduction

Financial marketing is a special part of the marketing of services, which is used in both product sales and in the provision of services by financial institutions.  This discipline has evolved as a result of changes in the financial sector such as the liberalization and internationalization in terms of regulations, significant increase in competition, and greater demands by the customer in terms of price and service offerings. In response to these changes, bank branches have left behind some of the bureaucratic tasks to consolidate as customer are generating added value to the businesses. Financial institutions are specializing in specific customer segments such as deposits, unsecured or mortgage loans, car insurance, pensions etc.

In order to effectively reach the potential customers, financial services firms have moved massive customer marketing approach to selective marketing strategies that aid to new forms of distribution of financial services. This involves use of the latest technologies and contemporary marketing approaches such as ATMs, telephone banking, etc (Harrison, 2000, 94). In order to compete effectively in the contemporary financial markets, financial sector firms are focusing extensively on the fields of communication to present a differentiated product to competitors (Meidan, 2009, 145).

Consumers of financial products are now better informed and more critical. Access to financial transactions in self-service on the Internet in the 21st century allowed them to become familiar with different financial products. They are now more than ever conditioned to learn online what is available to them (Stephenson, 2005, 119). Faced with this situation, how is it possible to fit into the decision making process of a potential customer at the right time with the right financial product? Financial services firms are focusing on how to use search engines to reach and direct users. They are also aiming to utilize blogs and social networks to acquire new customers for their chosen form of financial service.

Aims and Objectives

This research paper presents a description and comparison of different marketing strategies adopted by different financial services firms when marketing the chosen financial service. This research paper also explores why financial services firms' adopt particular set of marketing strategies to promote their financial service. It is linked to presenting explanation for the potential benefits or disadvantages of these marketing strategies adopted by these firms.

Financial Services and Marketing Strategies

Financial services marketing move with heavy industry innovations, rapid deregulation and the competitive environment. This involves assessing the uncertain circumstances to indulge a full development of marketing strategies for the financial service. In keeping with the competitive financial market that people get, consumer market has been subject in the current periods to swap a process of extensive distributional range (Meidan, 2009, 152). The financial marketing because of this instability has undergone a pain staking deregulation, which manages to procure and assort a great opening to the outside environment by accomplishing the independent review of financial services marketing (Lodge, 2002, 41-42).

Worldwide, the policy of financial products and services marketing has been shaped for financial services entities. The financial services are limited to creating products and services without being tied ...