Summary Financial and service marketing

Content:
Week 1: Service Marketing I
Week 2: Service Marketing II
Week 3: Financial Services Marketing
Week 4: Marketing Strategy in the Financial Sector
Week 5: Service Quality Management and Models
Week 6: Service Quality Management and Models II
Week 7: Consumer Behaviour I
Week 8: Consumer Behaviour II
Week 9: Customer: Managing Relationships and Building Loyalty
Week 10: Customer: Managing Relationships and Building Loyalty II
Week 11: Processes, People and Physical Evidence: moments of truth
Week 12: Financial and services marketing key concepts on
distribution
Week 13: Key topics on communication
Week 14:

Week 1: Service Marketing I

Why services?
Why services? We look at services because it is a large source of employment of
which a large % of world GDP exists. Also there has been liberalization of services
and because of the change of companies organization there is more demand for
services. There is a growth in services because of development factors:
- Economic factors: Wealth, consumer demand, well-being, globalization, low
capital requirements for service companies, externalization, differentiation:
product strategy through services, diversification through services.
- Demographic factors: Longer life expectancy
- Social factors: Leisure culture, urbanization, female workforce, smaller houses,
new values.
- Technical factors: Increasing complexity, development of products which require
learning process, technology development.
- Legal factors: Liberalization and Public Sector privatization.
Definition 1: A service = an action or activity which can be offered by a party to
another party, which is basically intangible and cannot affect ownership. Service
may be related to tangible product or intangible product (Philip Kotler, 1997).
The following concepts apply to services: Intangible, Inseparability,
Heterogeneity, and Perishability.
Definition 2: A service = an activity or an advantage which can be given by a
party to another party which is mostly intangible and cannot affect ownership,
and its production is not related to any tangible product. (Murti Sunarmi, 2002)
Definition 3: A service = Activity or series of activities of more or less intangible
nature that normally, but not necessarily, take pace in interactions between the

customer and service employees and/or physical resources or goods and/or

system of the service provider, which are provided as solutions to customer
problems (Gronroos, 1990)
Definition 4: A service = all economic activities whose output is not a physical
product or a construction is generally consumed at the time it is produced, and
provides added value in forms (such as convenience, amusement, comfort or
health) (Zeithamal et. al, 1996).
Marketing (definitions?)
- Total system of business activities which are designed to distribute goods which
can satisfy wants and reach the target as well as the objective of the
organization.
- Process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy
individual and meet organizational goal.
- Social process and managerial that can enable individuals and groups reach
their needs through the creation and exchange of products and value with other
people.
The AMA is the American Marketing Association. Highlight: all department
implication, value as organization goal, enhancement of customer relations,
benefit as main organization goal.
We can classify services in 3 different ways:
(1) By nature: health, financial, professional, tourism, sports, arts, leisure, public
administration etc.
(2) By sector: distribution, production, socials, personals
(3) By consumer behaviour: convenience (= used every day be consumer, who
doesnt think about any alternative), purchase (= more complex behaviour and
more risk beared (current account, insurance)), specialty (= even more risky and
more important decisions (doctor, fiscal advisor)), compulsory (= consumer
doesnt want to buy it but he has no election (compulsory insurance).
Consumer behaviour: There are different service features
(1) Search features known by the consumer before purchase.
(2) Experience features known during and after purchase.
(3) Credibility features supplier creditworthiness and the expected quality
SERVICES HAVE MORE CREDIBILITY.
Consumer behaviour of products and services compared:
* risk consumer feels more risk with services.
* people consumer has more trust in personal communication than in publicity.
* tangible features pay more attention to people and price which are the
tangible features.
* loyalty consumers will be very loyal to a supplier who satisfies its wishes.
Consumer behaviour: Different services have different level of customer
dominance and customer involvement. This can be shown in a table as in slide
1.12. High dominance and high involvement are for example at the hairdresser,
while low dominance and low involvement is f.e. with the police.

Products: Service vs. Goods

Goods are objects, gadgets of things while services are an act or performance.
Both however are products because they are the result of production. The main
differences are the following:
Criteria
1. Standardization
2. Prices
3. Productivity
4. Stocks
5. Economies of scale
6. Learning curve

Goods
Technology
Fx costs
Rate
Storable
Yes
Reduce cost and price

7. New products

Launch a new product

will be expensive and
difficult but low risk
Easy
Easy to maintain

8. Differentiation
9. Competitive
advantages
10. Flexibility
11. Suppliers and Clients
implication
12. Quality measures
13. Human factor

Service
People
Fx of quality perception
Quality
Inestable demand
No
Increase quality
perception and price
Cheap but more risk

Difficult
More difficult

Better in medium term

Low

Ok in short term
Higher

Objective
Important

Subjective
Decisive

Models
Molecular model (Shostack): Every product has both tangible and intangible
elements. This model is used as a management tool. You have a basic service
(transport), which can be extended with an advanced service (seats, space
comfort) you offer to your customers. And you can also offer a potential service
(menu, drinks) which is not directly related to the basic service.

Customer-driven model:

1. Customer should be inform of

strategy
2. Management should inform
strategy to employees
3. Strategy and systems implemented
should be consistent
4. Systems will have an impact on
customer
5. And also on employees
6. Customer and employees will
interact (real moment).

Interaction and experience

Service knowledge will be experienced while service is delivered. Raw coffee
beans cost nothing and in the end they will have a really high price increase if
you buy transformed into a cup of coffee at Starbucks. Services are experiences
and deliver a set of benefits.
A customer is not interested in the internal organization; they are only worried
about results. Customers will not transmit the assets company but the
experience or contact with the worker. Any contact between customer and the
company will result in a new impact on customers perception of the company
and the whole experience. (See triangle 1.30 slide).
How the service delivery system is valued depends on the moments of contact
and impressions.
For a doctor f.e.:
Building: easy to find, image
Parking: Available, free or with charge, far from the building
Reception: Comfortable, seats enough, magazines, illuminated
Receptionist interaction: kind, smiley, use name
Other people interaction while waiting
Waiting: too long or according to schedule.

Week 2: Service Marketing II

Characteristics of services
Challenges when marketing services:
- How to make publicity out of something invisible?
- How to fix prices not directly related to costs?
- How to manage the storage and logistic of something not storable?
- How to work in large scales when only one person can deliver the service?

Extra definitions of services:

Definition 5: Raw material of services is people. The main material of service is in
fact people: nevertheless, there are many other supporting factors from the raw
material of service such as advanced tools, clean, secured, comfortable physical
environment, accurate, advanced and up to date technology and service
(Steinhoff, 1979).
Definition 6: One important characteristic of service is it is produced and
consumed at the same time. Therefore customers satisfaction on service
depends on interaction process or time when customers and service provider
meet (Handi Irawan D, 2002).
Intangibility:
Goods
Tangible
Objective
Feel the features
Property

Intangibility
Services
Intangible
Subjective
Ask others opinions
Experience

Intangibility goes together with: not storable, no patent, difficult pricing and
difficult communication. Because of this it is really hard to differentiate your
service. A strategy is to provide tangible evidence to your customers, have a
strong corporate image, reinforce staff professionalism and try to cross sell
Inseparability:
Production: customer participation and customer interaction (critical incidents).
Customer participation can be critical for example emergencies. Customer
interaction can be negative (family with loud children while a couple is having a
romantic dinner in the same restaurant) or positive (other people in cinema
reinforce laughs).
Other characteristics that belong to inseparability are service delivery and
uniformity.
Inseparability goes together with: customers involvement in production, other
clients interaction, simultaneously production and delivery, difficult massive
production and difficult delivery. Because of this it is really hard to differentiate
your service. A strategy is: Personnel selection and training, customers
management (= f.e. smokers and non-smokers area), increase the personnel,
technology to mass production and many locations.
Heterogeneity:
Quality is important. If there is something wrong with a product you can control
quality before the client arrives, check and fix mistakes and customer mood
doesnt affect. With a service however there is no second change, every
employee can behave different on different days.
Heterogeneity goes together with: Customer involvement in production, random
factors have effects on quality, real service differs from planning service and
higher risk on consumer perception. Because of this it is really difficult to control
quality standards. A strategy is: Customization (it will impact on speed delivery
and prices, you may have a higher margin), standardization (= low prices) and
technology.

Perishability:
Perishability goes together with: No storage, no inventory, difficult quality control,
difficult synchronice S/D, D>S (dissatisfied customers, there is scarcity or
exclusivity), S>D (excess of resources). This leads to problems with
supply/demand balance.
Strategies of demand are: Creative prices, booking services(less waiting time, let
you know the D in advance and you can fix the S to the D but there is a problem
is customer books but does not arrive), additional services(f.e. bar in a
restaurant), demand development(manage the dips and picks, more D in low
activity hours, employees working in different positions, preparing tangibles
before consume), new services, new targets.
Strategies of supply are: Part-time employees (costs reduce and flexibility but low
compromise and low skills), capacity share, prepare for medium-long term
growth, increase distribution through agreements, increase customer
participation (increase customization and price but you can lose control and have
a negative impact on corporate image and customer sensity).
Servuction
The systematic and coherent organization of all the physical and human
elements of the interface client/enterprise necessary to the realization of a
provision of services whose commercial characteristics and the levels of quality
were given.
Invisible component: consists of invisible organizations and systems. It refers to
the rules regulations and processes upon which the organization is based.
Although they are invisible to the customers, they have a very profound effect on
the consumers service experience.
Visible part consists of 3 parts: Serviscape (inanimate environment), contact
personnel/service providers, and other customers.

Client: Main player

Serviscape: Physical evidence used to design service environment. Visible to

consumer, consists of ambient conditions, inanimate objects and other physical
evidence.
Contact personnel/service providers:
contact personal other than the primary service provider who briefly interacts
with the customer
Service provider The primary providers of a core service such as the waiter or
dentist.
Invisible organization and systems: reflects the rules, regulations, and processes
upon which the organization is based. Invisible to consumers. Have a very
profound effect on the consumers service experience.
Servuctions elements:
1. Customer: main player
2. Serviscape: Physical evidence used to design service environment. Visible to
consumer, consists of ambient conditions, inanimate objects and other physical
evidence.
3. Contact personnel/service providers:
contact personal other than the primary service provider who briefly interact
with the customer
Service provider The primary providers of a core service such as the waiter or
dentist.
4. The service: Its the goal and the result of the system
5. Other customers
6. Invisible organization and systems: reflects the rules, regulations, and
processes upon which the organization is based. Invisible to consumers. Have a
very profound effect on the consumers service experience.
Customer involvement:
low only its presence is required or no physical contact.
medium the customer participates in the service but do not remain throughout
the service.
high completed customized and customer actively involved.
Relationships:
Primary interaction between company and market
Internal Inside the company and link the invisible and visible parts
Concomitant the result of more than one client at the same time, so
relationships between them.
Main conclusions:
1. Global thinking
2. Goal: Customers satisfaction
3. Accurate and strictly bases:
I Define the service and its features
II Main elements (target, personnel, skills, physical support, etc)
4. Relationships among elements
5. System capability (scarcity vs. surplus) very important because in a limited
resource and too much will be a waste of resources and scarcity will result in
customers dissatisfaction.

Old marketing mix: Product, promotion, price and place.

New marketing mix: Product, promotion, price, place, physical evidence, process
and people.

Week 3: Financial services marketing

Financial marketing
Definition marketing by Philip Kotler (1997): Satisfying needs and wants through
an exchange process
Definition marketing by AMS: The activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
The marketing process functions are the following: Research, plan, organize,
execute and review.
There changed a lot during the last decades, some characteristics are:
1987

1993

2000

Regulation

Restrictive

Open with
entry barriers

Open and
international

Margin

High

Lower

Low

Volumes
Competitors

Low
Few

High
Medium-high

High

MKT investment

Low

Huge

High&selective

Differentiation

Coverage and
Brand
Very limited

Coverage and
Price
Important &
separate

Price and
Service
Important &
integrated

MKT Role

After the
crisis
Recapitalizati
on and
provisionin
g
Fees
increase
Concentrati
on, Saving
banks
High &
selective
Price wars
Important
&
Integrated

Main changes from a Mkt perspective:

Distribution value-added branches; No bureaucratic work; New channels and
segments oriented.
Products Investment and retirement funds, insurance, retirement pay; Name,
brand, bundles, packaging, cross selling; Products for segments.
Prices Financial margins drop; Increase in funds and insurance fees; Bank
service fees.
Communication Selective; Service quality; Brand.
Main changes from a Mkt perspective after the crisis:
Distribution less branches/new channels consolidation (mobile)/targets by age.
Products Saving products vs. Credits & Mortgages/Insurance

(jobless&payment)/technological gifts
Prices Increase in margins (risk)/Increase of all fees
Communication Both global corporate image & selective/international
(Sant/BBVA)
Special features of financial institutions
Dual relationship (=buyer-seller relationship) ; High regulation ; Stable
relationship with customer ; High risk ; No industrial property.
Financial services as products:
Separability the production of many financial products can be separated from
their consumption, you dont need to be physically in your bank to use your
checking account.
Lack of perishability you can use whenever you want, easier to manage supply
and demand.
Mass production While many financial services are individualized such as
financial advice, other can be mass-produced and mass-marketed, like insurance
policies, college saving accounts or data analysis systems. Mass distribution and
cost saving.
Financial services as services:
Low cost of entry There is no such cost to manufacture, inventory or distribute
a financial product. Few barriers to creating or copying. Also there are no
warehousing or physical distribution costs.
Speed to the market You dont need prototypes, models.. the idea is the
product.
Lack of exclusivity it cannot be patented.
Financial mkt-mix strategies
Before planning commercial activity the following should be clear: Corporate
culture, market positioning, entity goals and competitors positioning.
Key elements of commercial strategy:
Strategic Plan (long term) ; Goals and results ; Market share ; Business goals
(=lead to) Marketing plan (annual) ; Business objectives ; Product
objectives ; Segment
objectives ; Geographical area objectives ; Profitability
objectives
(= lead to) Product ; Price ; Distribution ; Communication
(=both ways) Resources; Budget
You go from market segmentation to services positioning to the marketing mix (4
or 7 Ps). This marketing mix leads eventually to the product, price, distribution
and communication.
Marketing Department Organization
Centralized organization:

Segments oriented organization:

Marketing department functions are: Market research; Customer DB;

Product/Campaign management; Segment management; New channels;
Promotion; Competitors; Customer Care.

Week 4: Marketing Strategy in the financial sector

From transactions to relations: defensive marketing
Relationship marketing was first defined as a form of marketing developed from
direct response marketing campaigns which emphasizes customer retention and
satisfaction, rather than a dominant focus on sales transactions.
Marketing money is different
* Psychology of money Peoples attitude toward money are highly emotional
(typology according to one financial institution in five categories based on the
following variables: Degree of control over spending and saving, interest and
knowledge about money matters, desire to accumulate vs spend, and trust in or
need for advice).
* Third party relationships Money is so personal, relationships become more
important in some areas, particularly investments, retire planning and insurance.
Double-edged sword (loyalty but your employees can change of company).
* Multiple sales channels Direct-to-end user; Commissioned salespeople;
Independent commissioned sales agents; Independent noncommissioned
advisers; retail.

* End users select provider based on other matters like convenience (word-ofmouth referral).
* Cost doesnt matter, most people make no cost comparison and sometimes
they just focus on return and ignore costs.
* Stickiness of money decisions means that once a purchase has been made, the
buyer tends to stay with the product even when the reason for the initial decision
is no longer valid, more time to amortize the cost of new customer but do not
take loyalty for granted.
Elements from transactions to relations
Traditional marketing = Focused on sale: Be known, preferred and bought
Interactive marketing = Focused on satisfying: Moments of truth
Associative Marketing = Focused on success: Added value
Relationship Marketing
Scope Relationship marketing is the point where quality, customers service
and marketing come together, so all 3 should be present.
Quality From production faced to customer faced Important: pay attention
to perceived quality.
Marketing strategy exists out of: Customer; Compromise; Confidence;
Friendship and Loyalty.
Transaction
Focus on isolated sales
Oriented to product features
Short-term vision
Low service customer attention
Low customer compromise
Limited customers contact

Relationship
Focus on customers retention
Oriented to product benefits
Long-term vision
High service customer attention
Frequent customers contact
Quality as main worry for everyone

Overview of the differences:

Relations Marketing is about people: (1) Customer coordination and (2)
Employees involvement
Transactions Marketing
Focus on one sale
Product features
Short term
Low customer service
Low customer compromise
Medium customer contact
Quality focus on products

Relations Marketing
Customer retention
Product benefits
Long term
High customer service
High customer compromise
High customer contract
Quality is everyones worry

How to retain customers?

1. Look at deserters profile ; 2. Look at the leaving probability ; 3. Landmarks
and leaving pattern
You should gather customers information, customer segmentation and screening
of clients leaving.
If you know which customers will probably leave you can solve this using:

1. Personal relationship management ; 2. Quality service ; 3. Specialization.

The cost of a new customer is 5 times the cost of retaining an old customer. The
cost of recovering a customer are sometimes very high. 2% customer recover has
the same effect on benefits as a 10% expenditure decrease.
Financial marketing strategy
In the past massive campaigns where used. There was less advanced statistic
tools needed for this but the costs where very high. From this marketing strategy
there came a switch to segmentation marketing and this is even going more and
more to 1-to-1 marketing by creating thousands of segments that are really
small.
Massive campaign segmentation marketing 1-to-1 marketing
New marketing strategy 1-to-1
1. Analyze your customer and define segments
2. Design specific products for one or more segments
3. Design specific marketing strategy for each segment.
4. Adapt your marketing to each customer.
5. Products will need to be flexible.
6. Sales employees should be also specialized.
Key elements:
Differentiate each customer by value and needs
Interact With customer optimizing costs
Customize The corporate culture
Identify This customizing strategies will only be efficient if the segmentation is
well done and justify the marketing actions.
Differences traditional marketing and marketing 1-to-1
Traditional marketing
Market share
Product differentiation
Product management
Customers as rivals
Find customers for products
Retail banking trends:
- Longer timetable
- Phone: People instead of machines
- Internet: Tool for customers
- Closer and more personal relations
- Phones for paying and transfers

Marketing 1-to-1
Customer share
Customer differentiation
Customer management
Customers as colleagues
Find products for customers

Establish corporate mission = define the area of business within it operates

Conduct situation analysis = PEST analysis: Industry attractiveness and
profitability depends on bargaining power of suppliers/consumers; Threat of
entry; Competition for substitutes; Rivalry between firms; SWOT analysis
statement of objectives = In line with corporate objectives
Formulate strategy = level of mkt expenditure and developing the mkt mix
Develop market-specific strategy
Implementation = specific task

How to begin your marketing plan?

- Quantitative market research
- Qualitative research
Elements of a marketing plan:
- Executive summary
- Environmental analysis: SWOT
- Identification of your target
- Analyzing your positioning in relation to your competition and establishing your
branding strategy
- Establishing marketing objectives
- Determining schedules, budget, HHRR, responsibilities
- Setting implementation tactics
- Identifying the metrics to track and measure success

Week 5: Service quality management models

Servqual Overview
Servqual is about expectations and perceptions. A big survey is done including
items that are part of 10 dimensions of service quality. Each item is recategorized into a pair of statements, one the measure expectations about firms
in general within the service category being investigated, and the other to
measure perceptions about the particular firm whose services quality was being
assessed. In the end the final instrument consist of 22 items, spanning the 5
dimensions of service quality: tangibles, reliability, responsiveness, assurance
and empathy. Because there was correlation between the 10 dimensions
assurance takes into account competence, courtesy, credibility and security and
empathy takes into account access, communication and understanding the
customer.
Servqual dimensions
The 5 Servqual dimensions:
(1) Tangibles appearance of physical facilities, equipment, personnel and
communication materials.
(2) Reliability ability to perform the promised service dependably and
accurately.
(3) Responsiveness Willingness to help customers and provide prompt service.
(4) Assurance Knowledge and courtesy of employees and their ability to convey
trust and confidence.
(5) Empathy Caring, individualized attention the firm provides its customers.

Servqual conclusions

Reliability is the most important: Appear net and organized, be responsive, be

reassuring, be empathetic, and most of all, be reliable.
DO WHAT YOU SAY YOU ARE GOING TO DO it is all about perception and
expectations
DO IT RIGHT THE FIRST TIME Customers who had experienced a recent service
problem and those who had not where analyzed separately. Customers which
having experienced a problem and felt that were satisfactorily resolved and not
where also separated in this analysis. Conclusion: If you have a problem but you
solve it right, you can have a very good impact on the customer!
WORD OF MOUTH HAS A GREATER ROLE IN SERVICES
Service quality management
There are 4 clear gaps described for quality shortfalls.
Monitor customer perceptions identify service quality shortfalls take actions
to improve quality monitor customer perceptions etc.
Gap 1: Customer expectations (Expected service) Management perceptions
of customer expectations.
Many of the executives perception about what customers expect from superior
quality service were congruet with the expectation of customes. Butg there were
also some dsiscrepancies. Fore example, privacy and confidentiallity in banking
and securities-brokerage, physical and security features of credit cards, or small
product-repair and maintenance are better valorated than big companies.
Gap 2: Service Quality Specifications Management perceptions of customer
expectations
Executives explained their difficulties to translate their understanding of
customers expectation into service quality specification, they cited: customers
expectations are unreasonable, the degree of variability inherent in the services
defies standarization, the demand for service is too hard to predict, the way the
company and its personnal operate cannot be changed.

Gap 3: Service delivery Service quality specifications

Main reason given by executives were unwillingness and/or inability ot contact
personnel to meet the standards. Also difficulty to maintian high quality
standards because of high number of operations (stock brokerage).
Gap 4: Service delivery External communications to customers
Promises made by a service company through its media advertising, sales force,
and other communication raise expectations. Executives describe broken
promises because of inadequate coordination between operations and marketing.
It may improve if its communicated to the customers complexity and all efforts
done by the company.
Gap 5:
The key to close gap 5 is to close gaps 1 through 4 and keep them closed. This
conceptual model implies a logical process which companies can use to measure
and improve quality of service.

Week 6: Service quality and management model II

Quality overview
Total Quality Management (TQM) is a permanent quality based on customer
expectations, high management involvement, organization support and
employees behaviour. The company strategy will be a combination of concepts,
system and tools.
Companies with high quality standards have the following aspects in common:
employees involvement; new business management model; goals; consensus
and business + culture + society.
Cultural values of quality are: primary goal; customer rights; human resources;
TQM as an instrument and customer service reference model.
Quality strategies change a lot and so it is important to manage the change.
Strategies need a constant evolution. New trend: Integrate quality in the
corporate strategy.
Design is aimed to satisfy customers expectations (implicit and explicit).
Production, during all production process customers expectations will have to be
fulfilled. If you want to measure your quality you will have to check if production
quality is according with design quality.
Products in the service branch are very similar to the consumer so the consumer
will value quality service. Quality will be based on: competitors, mk require,
customer demand, will sustain success & growth.
Quality is not a goal but a process. You have to imply it. It is important that
internal processes, customer communication and relationship and coworkers
communication are good.
If you have quality as a business strategy you can attract new customer, increase
business with existing customers and reduce customer churn. Benefits (increase
loyalty, business with existing customers, protect from price-wars, reduce cost,
higher prices with identical mk share, increase mk share). However with bad
quality: decrease mk share, increase employee turnover, reduce prices and
increase cost.
Customer satisfaction
There are 4 basic factors in customer satisfaction
(1) Product (design, production process, Q control systems)
(2) Sales (communication, distributors selection sales-people attitude)
(3) Customer care (complains management, problems answer)
(4) Corporate culture (values and believes, symbols and systems to send
messages)
The greatest advantage for a company is a satisfied customer. It leads to loyal
customers, increased sales, willing to pay higher prices and churn rate reduction.
Customer satisfaction is market success:
- Long term return (purchase repetition, lower operational costs, cheaper mkt
communications)
- Protection against competitors (higher loyalty when competitors launch a new

product or set lower prices)

- Change in customer needs has less impact
- Regain lost market position
Quality goals and organization view
1. Satisfy customer
2. Business benefits
3. Meet our professional goals
Service quality specifications will be indications and some time verbal ones
(branch marketing)
*Intangibility
*Technological weight
*Close relationship between customer and employee: attention, sales abilities,
telephone abilities, *ability to solve problems.
*Close relationship between coworkers
*Sales and distribution channels: customers database, cash dispenser and
gather information

Quality benefits are: loyalty customers; recurring businesses and lower churn rate
Name
Individualized
Quantities
Database and CRM
Specialist
Special relationship
Service
Relationship banking:

No name
Mass market
Statistics
Product information
Any employee
Not a loyal customer
price

New Mkt approach: Customer focused:

The focus is on the best customers, long term value, the marketing mix and
benefits. Customers should be categorized to see if they belong to the companys
best customers or that they are not good customers.
Customer Franchise Management (CFM)

Data mining is really important. It shows you potential churn, complaints,

financial behaviour and possible upgrades.

Week 7: Consumer behaviour I

Special characteristics of financial services
The following special features belong to financial services:
Intangibility Its a matter of degree, some financial services contain tangible
elements. For example ATM cards, share and insurance certificates etc.
Inseparability Impossible to return, only cancel some times. Inseparability
holds true for a limited range of financial services. Are Insurance policy or saving
accounts consumed? Consumer will rely on word of mouth communication.
Heterogeneity some have greater potential for variation than other
(technology).
Perishability Suppliers will have to synchronize supply and demand. We will
want to have cash although the bank is closed or the ATM empty.
Fiduciary responsibility The supplier takes responsibility for looking after the
buyers funds and welfare. Consumer relies in cues like size, image and longevity
of the organization.
Two-way information flows Financial services may involve a series of regular
two-way transaction.
Needs and motives
Customers need a bank for the following reasons:
Cash accessibility in order to purchase goods and services (ATM card, credit
card, cash cheque)
Asset security covering physical security (from theft) and against depreciation
(credit card, safe deposit boxes, interest bearing account).

Money transfer Transferring funds (cheque book, debit and credit card).
Deferred payment Delay payments (credit card, personal loan, mortgage).
Financial advice Not only a solution but also instrumental to finding one.

Influence and orientations:

Motives only have a very general influence on behaviour, they are usually
primary influences which initiate behaviour and direct towards a generic product
class. The selective influences of learning, perception, attitudes and personality
are the ones that guide choice between brands. As selective influence, the basic
orientation of consumers predisposing them to respond favourable to certain
types of appeal. We look at: (1) prestige where status is a driving concern ; (2)
value obtaining the best quality for the cost ; (3) economy where cheap is
the major criteria and (4) convenience when time poor or apathetic
consumers demand and easily accessible, nearby and swift service.
Multidimensional model of motivation:
Types of motives in force
Emotional
Preservati
on
Internal
Active

Cogniti
ve
Growth

=
=
=

Extern
al
Passive

Emotional responses

Rational responses

Maintenance of
equilibrium
Driven by need for
internal change
Self-initiated

Self-development
Driven by
environmental change
Reactive

Motive bundling: One product attends to a number of needs at the same time.

Credit card, is not only buy now and pay later, it also attends need for safety (less
cash handling), belongingness (club membership), esteem (prestige) or power.
Fear appeal: Needs drive motivated behaviour in a specific direction, and
negative goals involve avoidance objects. Avoidance objects are the raison dtre
of most financial services (theft, ill-health, an impoverished old age,
unemployment)
Conflicting motivations and goal polarity: Either attracting or repealing forces,
results in three types of goal conflicts. They are described in the drawing below:

Segmentation
We need to look at data/characteristics that are measurable, accessible and
substantial.
Single variable 1: Sex woman less active role in familiar financial matters,
divorce, less pressure to admit lack of knowledge.
Single variable 2: Social class Conceptually complicated (private banking),
divorce, some blue collar workers earn, best informed usually have the most to
invest.
Single variable 3: Income Income, disposable/discretionary income, does not
reflect needs, niches as singles and gays.
Hybrid 1: Family life-cycle Single bachelor, newly-wed, family growth, family
reduction etc.
Hybrid 2: Geodemographics Niches as singles and gays ; GDP per square
meter ; unemployment by regions
Financial services segmentation:
* Objective methods: demographic, geopgraphic, life-cycle, product.
* Psychographic clusters Benefits-based segmentation or lifestyle
segmentation
* Customer value segmentation
If you combine customer value segmentation with the following questions you get
a clear view what type of customers you want, how you can find them and how
you can serve them best.

Identifying current market segments

Who are your most profitable customers?
What do your top 20% buy from you?
What characteristics do your top 20% have in common?
How they become customers in the first place?

Cognitive map
The learning process: Behavioural Conditioning. think about the dog, food and
the bell.
Theories and Instrumental conditioning: Cognition- mental processes of knowing,
perceiving and judging which enables individuals to interpret the world around
them. Both learning and perception are central to the production of the
individuals world view or cognitive map. BCT-automatic response to
stimulus/instrumental conditioning-learning is trial-error basis, the individual will
seek positive reinforcement and will avoid negative ones.
The learning process: Cognitive learning
Cognitivists reject that all behaviour is learn through stimulus-response and
reinforcement, as it ignores the powerful influence of observation and conscious
problem solving. Learning is the result of mental activity which restructures the
cognitive map. So it introduces cognition as an intervening organizing force
between the stimulus and the response. Continuous reinforcement will imply a
decreasing of cognitive or mental activity required for a decision, leading to habit
or loyalty.
The learning process: Memory
Cognitive learning requires memory both short and long term. Motives are
important determinants of what a selectively stored, as it is widely believed that
consumers retrieve product benefits or shortcomings rather than attributes. Each
person will remember the same product in a different way depending on his own
judgment, interpretation and perception.
Perception:
The cognitive map is partial personal construction in which certain objects are
perceived in an individual manner.
Perception is the process by which an individual selects, organizes, and interprets
stimuli into a meaningful and coherent picture of the world. Perception is
selective; there is selective attention and selective exposure. Perceptual
defense: Selection distortion and selective blocking. And eventually there is also
selective retention.
Perceived risk:
Dimensions: Uncertainty about the outcome/Seriousness of consequences. There
are 4 types of risk:
Physical risk; Psychological risk; Financial risk and Time risk.

Cognitive dissonance and Perceived control:

Cognitive dissonance- tendency to seek out information which confirms the
wisdom of our original choice. Dissonance arises through the need for cognitive
consistency between thoughts and behaviour.
Perceived control, although dissociating control for a decision is a method of
dissonance reduction, psychologist have long asserted that the need to feel
personally in control of a situation is a major influence in human behavior.
Perceived control can be used to increase overall customer satisfaction levels in
some services.

Week 8: Consumer behaviour II

Image and positioning
An image is the way that something is defined in our mind. Tangible/intangible,
emotional/rational. An image is constructed out of 3 dimensions:
(1) Attribute the most specific constructs (e.g. access)
(2) Components aggregation of similar attributes (e.g. locational convenience)
(3) Dimensions the most general constructs (e.g. convenience)
Image research involves assessing attitudes rather than amassing objective,
factual data. First, identify the salient components is crucial (open-ended
techniques: groups and interviews) to isolate the critical image components.
Multidimensional scaling can be used. This is using a combination of both scaling
and open-ended (qualitative) techniques, multi-dimensional scaling investigates
the extent of perceives similarities and contrast between different companies
images.

Positioning promotes stimulus discrimination, giving the brand a unique

organized whole which differentiates from competitors. It is very difficult for
consumers to differentiate between brands in financial services, be the individual
product, family or corporate image.
Attitudes
*Objects, abstract or material
* Express how an individual feels
- Direction favourable/unfavorable
- Degree how favourable/unfavorable
- Intensity level of conviction
* Structure core/peripheral
* Learned: personal experience, family and other peer groups, media, etc.
Consumer confidence is an economic indicator which measures the degree of
optimism that consumers feel about the overall state of the economy and their
personal financial situation. How confident people feel about stability of their
incomes determines their spending activity and therefore serves as one of the
key indicators for the overall shape of the economy. In essence, if the economy
expands causing consumer confidence to be higher, consumers will be making
more purchases. On the other hand, if the economy contracts or is in bad shape,
confidence is lower, and consumers tend to save more and spend less. A monthto-month diminishing trend in consumer confidence suggests that in the current
state of the economy most consumers have a negative outlook on their ability to
find and retain good jobs.
The University of Michigan Consumer Sentiment Index Thomson
Reuters/University of Michigan Surveys of Consumers is a consumer confidence
index published monthly.
Models of buyer behaviour
RESPONSE HIERARCHY MODEL

The consumer progress through a series of attitude changes, initially acquiring

knowledge of the product (cognitive component), then developing liking 9affect),
taking them closer to the conative act of purchase. Rarely can a single
communication move a prospect from unawareness through to conviction and
purchase.
Awareness interest desire ACTION
This model includes AIDA which characterizes the stages mentioned above.
With complex financial products knowledge should read know-how (or know how
to buy) and be accompanied by adequate self-confidence to buy.

COMPREHENSIVE MODEL:
This model provides a framework for analyzing all the factors known to influence
consumer behaviour, unlike the limited models such as the response hierarchies
which simply looks at attitudes.
problem recognition search alternative evaluation purchase decision
purchase behaviour
Decision rules in alternative evaluation:
* Compensatory decision rules assign weights to reflect the perceived
importance of each relevant attribute. The service with the highest sum total will
be preferred. Low rating on one dimension can be compensated with high score
on another, very expensive financial adviser may be chosen for experience and
trustworthiness.
*Non-compensatory decision rules
- Conjuctive rule the consumer sets minimum acceptable standards for
each attribute and any falling below this level are rejected. The consumer
achieves smaller choice set, but he
needs further decision rule.
- Lexicographic choice strategy the consumer first ranks the attributes
according to their relative importance. The alternative scoring mostly highly on
the most important criterion
will be selected, but in the event of no clear
winner, the process is repeated using the second most important attribute.
ALTERNATIVE MODEL:
Need of a model which incorporates:
* The role of consumers play in the Servuction

* Sequence of interaction taking place during the service production/consumption

process.
Interaction approach:
Only two complex stages:
1. Pre-purchase choice
2. Post-purchase/evaluation and consumption
Post-purchase behaviour involves the natural comparison of the actual purchase
outcomes with the results anticipated.
However, not all services requires consumer to solve comprehensive models. For
example, low involvement or routinely purchased services, where few differences
are perceived between brands (basic cash, cheque, credit and debit services).
Kind of interaction episodes:
(1) Information exchange
(2) Product/service exchange
(3) Financial (involves all monetary payments, timing, accuracy and reliability).
(4) Social (all staff in contact with the customer).
It would be unrealistic to suggest that consumers undertake such deliberate,
pains-taking calculations every time they need to make a decision. However, the
models are valuable if used to focus on understand consumers priorities.
Spanish financial assets and liabilities:
More cash and deposits, decrease in investment funds, pension funds quite
constant, increase in fixed income in the long term and decrease in equity,
steady increase in insurance and up and down in credits.
Loyalty and relationship marketing
Attitude models in financial services: alternative model
Inertia can be attributed to:
1. Better the devil you know
2. No decisions required

Week 9: Customer: Managing relationships and building

loyalty
Principles of segmentation
Tactic of Superquinn supermarket: The most successful way to have customers
back is to make them feel guilty if they dont. Only special guests could get a
Superquinn card.
Number of customers we serve
Value of each customer
Relationship marketing retain and grow your existing customers
Identifying and selecting target segments: use the following points
Market segments
User characteristics
User behaviour
Usage behaviour

Questions to answer:
1. Useful market segmentation
2. Needs
3. Best fit of each of these markets in our operations capabilities
4. Advantages and disadvantages for each segment
5. Target?
6. How to differentiate from our competitors
7. Long term value
8. Long term loyalty strategies
You should do a cost revenue analysis but dont forget to take risk into account.
Selecting the appropriate customer portfolio:
1. Creating a portfolio of market segments
2. Segmentation strategies for effective capacity utilization
3. Customers as part of the service experience
Unattractive customers
Targeting the right customers Is the customer always right?
There are two parts of this questions, is the customer indeed always right or is
the marketplace as positively overpopulated with nasty people?
There are 5 types of jay customers:
1. The thief
2. The rule breaker
3. The belligerent (=strijdlustig/oorlogvoerend)
4. The vandal
5. The deadbeat
Be restrictive to the target customer. You do want to do a life insurance of a
business man but not of a bungee jumper because you have much more risk with
him.
Value of loyal customer
There are big differences in the relationships of customers with the company. The
nature of service delivery can be a membership relationship or no formal
relationship. Furthermore both categories can have continuous delivery of service
or discrete transaction.
Relationship vs transactions:
1. Information
2. Computerized analysis
3. Direct mail
4. Telephone selling
5. Personal sales calls
Valued relationships: A long relationship results in higher profits. Every year a
customer stays a customer the profit rises. So it is important to make your
customers loyal to you.
Full profit potential of a customer:
1. Profit derived from increased purchases
2. Profit from reduced operating costs

3. Profit from referrals to other customers

4. Profit from price premium
The loyalty effect: few companies think of customers as annuities but actually
they should do that. You can use a customer value calculation worksheet for this
for example.
Customer loyalty programs
You can reinforce loyalty by rewarding repeat users with loyalty points which they
can use to choose their rewards. Furthermore it is important to reward value and
not only frequency. Customers who fly from the US to Japan give more profit than
customers who do only flights within a country. Create different benefits for each
kind of customer. BBVA did this by using regular, silver and gold member cards).

Week 10: Customer: Managing relationships and building

loyalty II
Customer knowledge overview

CRM

CRM programme success:

Customer focused strategy ; consistent processes ; change management

Product VS customer segmentation choose what is best for your company

CRM failures:
Old databases ; data protection laws ; cost reduction programs ; sales force
change resistance
Advanced customer management models keys:
Customer knowledge ; commercial plan ; employees implication
1. Potential customers identification
2. Attract new customers
3. Customer reactivation
Customer intelligence
Intuition and previous experience is not enough. You need Customer
intelligence/CRM.
With customer intelligence applications you can get more influence on:
cross-selling ; up-selling ; churn/dropout detection ; life time value ; new
branches ; geographic locations

Translating knowledge into opportunities:

information ; simplification ; opportunities ; data miners ; business development ;
front office employees
Business intelligence cycle:
analysis define actions measure actions analyze actions again the
circle
Business intelligence is not only limited to internal issues, when thanks to
internet it also affects customers, providers and associates, then is E-business
intelligence.

The results thanks to business intelligence:

1. Clear business strategy
2. Clear customer needs
3. Data Base processes and input data defined
4. Customer information IT applications
5. IT and data alignment
6. Measure results

Week 11: Processes, people and physical evidence:

Financial Mkt mix overview

Themes in the financial market mix:

Global overview =Service offer meets the needs of the target market + is
consistent with strategy Role of MKT mix.
Processes
Mechanism by which the service is delivered:
Degree of mechanization; Procedures ; Business policies
Components of the service processes:
The structure of service production:
Interactive part:
- Customers interact with:
- Contact personnel
- Systems
- Physical component
Line of visibility

Support:
- Management support
- Support functions
- technological/knowledge support
Unrelated functions
Designing the process: Blueprinting Services
Blueprinting = Flowcharting
The process: (1) Sequential flow of the service in both visible and support
services ; (2) Deliver consistent quality.
The mean: (1) Resources used to accomplish each of the tasks in the process ;
(2) Physical asset pr people
The evidence: (1) Set of clues customers use to assess the quality of a firm ; (2)
i.e. Appearance, professionalism and demeanor of front line personnel.
Developing a blueprint:
Group 3-8 participants Specific instance of a service Select the beginning
point Departments and persons involved Map the steps in sequence
Notation in a blueprint is not standard you can use the following:
Dialogue points Require carefully prepared scripts to interact with the
customer.
Problem points Require problem solving, diagnosis, judgment and choice on
part of service employees.
Fail points Should be easy to locate and study the diagram for possible
improvements

Designing the process: Quality function deployment (=GFD)

Technical design elements of a service VS customer impression of the service.
F.e. How much faster does a restaurant service have to be before it is noticed as
better?

People
Managing people using internal marketing:
Internal marketing exists out of: Training ; Continuous interaction with
management ; Internal mass communication ; Marketing research ; other HR
activities.
Physical evidence
For example bankbooks, plastic cards and wallets.
Managing the physical evidence: servicescape
The environment in which the service is assembled an in which the seller and
customer interact, combined with tangible commodities that facilitate
performance or communication of the service.

Week 12: Financial and service marketing key concepts on

distribution
Overview of distribution for financial services
Basic characteristics of Spanish distribution channel:
Own channels dense, entry barrier and expensive.
Distribution strategies:
Environment ; profitability ; market segments ; product & services ; competitors ;
strategic model
More channels than branches and branches with more active role
Distribution strategies: mixed system
38% elects branch on proximity and 62% on other attributes.
A physical location of a bank has the following characteristics: (1) customer
knowledge ; (2) proximity ; (3) relationship and (4) financial advice + value
creation.
A website of a bank has the following characteristics: (1) cheaper ; (2) variable
costs (sometimes) and (3) products specifically designed for segments.
Branches: own channels/direct/short
Electronic channels: cash dispenser/ATM
80s: mkt strategy focused on distribution channels (they opened new branches),
high cost but is barrier for new competitors and means major transformation cost
for banks
Change in financial distribution:
The society gets older and older means more saving and less investment,
conservative
Less time and more financial knowledge
Reduced margins and new technologies.
High investment in new technologies: new products/measure profitability by
branch, customer and product SOURCE OF INFO

Branches and shared distribution channels

Braches characteristics
1. Proximity is still the first factor of customers branch election
2. Branches have a core role:
1. Start relationship with the customer
2. Resolve customers issues
3. Sell key products
4. Provide value added services
5. Main contact between the company and customer
3. Branch network are a big expense in financial entity costs structure.
4. A big share of loans and risk decisions are still taken in branches
Changes in branches traditional role:
passive active
unique channel mix
traditional products large stocks
universal segments
The changes above leaded to: skills ; training ; information provider ; more
commercial ; goals
Distribution lines:
Points of sales and sales force
There are 3 types of branches:
Customer: industrial/urban/residencial/commercial/rural, etc
Products: investment/passive/foreings/asset management
Mixed: universal service/cash/specialized(corporate, asset management, SMEs)

Commercial network structure:

Area/region ; products ; customer segments
Branches specialization:
Corporate banking ; Universal banking ; SME branches ; Retail banking
Shared distribution channels: (I think this is about ATMs, you can use an ATM
from another bank)
All different banks (different institutions) share the same channels.
Means of payment networks:
80% is owned by sermepa + redy (4B) sign is Redss
20% is owned by saving banks sign is Euro6000
SEPA- Single European Payments Area (2010)
Affinity/cobranded
ATM = Automatic Teller Machine cash dispenser
Only 30% independent of a branch- tendency to increase as own distribution
channel and not linked to branch
Diversification:
-new location: airport, hotels, malls
-more services: transfers, investment fund suscription, foreign currency
exchange, etc
La Caixa- ticketing

Points of sales:
NFC ; Contactless ; mobile (this is new banking)
Shared with others, limited services
Remote distribution channels
Remote distribution channels:
Home banking Services: information and operations (transfers, payments,
investment funds subscription). Advantage: low cost, no timetables and
disadvantage: need computer/coldness
Telephone banking
a)Complementary and branches support
b) Different channel with specific products
c) Separate form branches, own channel (First Direct, UK)
Mobile phone where is the closest bank I can find
Internet banking
Indirect distribution channels
Europe: 26% mortgages, 27% consume loans, 54% investment funds
Bestinvert
Financial agents:
Strengths: no fixed cost/prescription/high motivation of FA
Weaknesses: complex product difficul to undertand by FA/no high revenues for
FA/ FA develops the relationship with customer
Insurance distribution
In-store (f.e. ATM in supermarket) / large commercial surfaces distribution
Corners/stands
El corte ingls, agreement with 20 financial institutions
A Spanish example is BanCorreos Deutsche bank approached Correos to open
a bank inside of their buildings. The services are provided by Deutsche bank but
the people have more trust and it is more convenient because it is part of
Correos.

Week 13: Key topics on communication

Definition
Marketing communications are the means by which firms attempt to inform,
persuade, and remind consumers, directly or indirectly, about the products and
brands they sell. (Philip Kotler)
Objective: arose interest inform availability inform differentiation.

Objectives

Communication in society
There is too much information in the society.
Last 30 years more information has been generated than in the previous 5.000
years.
Every day more than 4,000 books are published.
A 18 years old man in UK has been exposed to 140,000 adds
Communication mix
Communication exists out of sales promotion ; public relations ; personal selling ;
direct marketing and advertising.
Below the line, not general but to specific targets: direct marketing, promotional
marketing, public relations, sponsorship, merchandising, telephone marketing,
communication in sales-point.

Efficiency-cost
Prescriber = people who can influence other to buy my product, for example,
bank director for an insurance
Communication: Personal sale
Only 20-25% of time in financial branches is devoted to sales.
Main changes:

Sales faced (central services like internal customer)

Commercial planification
Training

Communication: Advertising
Advertising is any paid form of non-personal presentation and promotion of
ideas, goods and services through mass media such as newspapers, magazines,
television or radio by an identified sponsor (Kotler)
Communication Charged Impersonal Sponsor advertiser Persuade
Advertising goal: AIDA = awareness, interest, action, desire.
Financial advertising goals: Corporate image, added value and reliability, specific
target
The functions of advertising:
Brand building most financial advertising are bought irregularly so reinforce
corporate image
Familiarity gives potential buyers the comfort that they are making the right
decision, support salespeople
Customer retention reinforce satisfaction among those who already bought
your product
Reaching 3-party influencers aimed at senior management, financial advisors
will be more willing to refer business to companies well known
Maintain market share defensive advertising
Improving employee moral can have a positive effect on staff motivation and
make recruitment easier
Communication: advertising channels
Papers: diary, local /national press, general magazines, specialized magazines,
professional magazines
TV: sponsorship, inside a tv serie or direct sale (never in Spain)
Radio: cheap and immediately
Mailing: you can choose your target
Outside publicity: poster, neon sign, transports. Cheap and great impact and
geographical flexibility.
New: social nets, guest blogging
The newspaper is less expensive to create and place. Furthermore the complexity
of financial products lends itself to be printed. And print media offer the ability to
target more precisely, for example in the financial part of a paper.
While tv is good to communicate emotions, print is better able to communicate
facts and figures. You will have to decide also the size and placement (back
cover, inside front cover, full page, inside back cover, inside spread, vertical 2/3
page, horizontal page, vertical 1/3 page)
Platforms of social media:
Twitter allows companies to promote products on an individual level (followers).
Facebook more detailed profiles than Twitter (videos, testimonials)
Blogs allow a product/company to provide longer descriptions of products or
services.

Google, YouTube or Sell phones

Social media marketing refers to the process of gaining website traffic or
attention through social media sites.[1]
Social media marketing programs usually center on efforts to create content that
attracts attention and encourages readers to share it with their social networks. A
corporate message spreads from user to user and presumably resonates because
it appears to come from a trusted, third-party source, as opposed to the brand or
company itself. Hence, this form of marketing is driven by word-of-mouth,
meaning it results in earned media rather than paid media.
Adidas
In 2007, Adidas and their agency Carat, created a social media experience for
soccer players. Adidas pitted two different cleat types against one another and
asked people to choose your side. The content focused on fostering an
environment of friendly discussion and debate of Adidas two models of elite
soccer cleats/boots, Predator and F50 TUNIT.
Social media marketing refers to the process of gaining website traffic or
attention through social media sites.[1]
Social media marketing programs usually center on efforts to create content that
attracts attention and encourages readers to share it with their social networks. A
corporate message spreads from user to user and presumably resonates because
it appears to come from a trusted, third-party source, as opposed to the brand or
company itself. Hence, this form of marketing is driven by word-of-mouth,
meaning it results in earned media rather than paid media.
Regarding Spanish financial institutions in Facebook y Twitter during Q3 2011:

Banesto is the leader with Espritu ganador

ING Direct also is in social media with the great success of llvales a la
escuela
Triodos y the third in Facebook
Santander has just arrived but is getting benefits from its sponsorship of
Formula One.

Communication: Public relations

Public relations (PR) is the practice of managing the flow of information between
an organization and its publics. Public relations provides an organization or
individual exposure to their audiences using tipoics of public interest and news
items that do not require direct payment.
Ethic banking and socially responsible banking: transparency
Communication: Sales promotion
Objective: incentive for customer or sales people. You can offer:
Cash, products, discounts, services, samples, contest and drawing lots.
Loyalty programs, discounts (Abbey National Bank in mortgages)
Communication: Direct marketing
Any communication activity which aim is to create and boost the link between
the company and its customers.
Loyalty programs, discounts (Abbey National Bank in mortgages)

Before offering your products/services you have to establish a relationship, you

have to take care and keep the flame alive.
Differences from other communication activities:
* Measurable
* Know your customers
* Useful to forecast customers behaviour
Objectives:
* Cross-sale
*New customers
You can measure the success of the marketing campaign and also the cost.
You can know more about your customers because of their answers and the
answers channel.
National Wetmister bank, UK, answer to direct marketing action: 15% current
customers, 2% leaving customers and 1-1,5% potential customers.

Communication: Sponsorship
Sponsorship can be defined as the provision of resources (e.g., money, people,
equipment) by an organization directly to an event or activity in exchange for a
direct association to the event or activity (Sandler and Shani, 1989). It is about
media coverage.
Revenue, cost reductions, equivalent value (pre-event publicity or direct
marketing and event-based promotion)
Communication
During leisure
time
Common content
in media

Awareness
High impact on
target
Awareness in
other groups
Increase your

Image
Built positive
corporate image
Associate
corporate image
with the event
Appreciation for

Economic
Tax deductions

brand-appearance
Balance with
competitors
advertising

the event
Differentiate your
corporate image
from competitors

Benefits:
Built brand awareness by associating a companys product with an event
Shorten the sales cycle, helps purchasers relate the products to a cause or event
that the customers also support
Maintain and strengthen existing relationships
Demonstrate to attends a companys expertise through seminars and exhibit
Improve employee morale