F i n an c i al

S e r vi c e s
Submitted to- ALL OF YOU Submitted by –Ankit Singh
 Introduction
•Marketing is an approach to business which focuses on improving
business performance by satisfying customer needs.
•
•Financial services are concerned with individuals ,organizations and
their Finances.

•These are the services which are directed specifically with peoples
intangible assets (money/wealth).
•
•
 Marketing
issues
•Some financial services may be very short( e.g. buying and selling
stocks, while others are very long ( e.g. Mortgage ,pensions).
•
•Product may vary in terms of complexity; a basic saving account for a
personal consumer may appear to be relatively simple product ;
whereas the structuring of finances for a leveraged buy-out may be
highly complex.
•
•Customers may vary in terms of both their needs and their levels of
understanding- corporate customers may have considerable expertise
and knowledge in relation to financial services they wish to purchase ,
while many customers may find even the simplest product confusing.

•
 Distinctive
Characteristics INTANGIBLITY
of
services
oThey lack a substantive physical form hence cannot be seen
,touched or felt or tried in advance of purchase.

oCharacterized by predominance of experience and credence quality

in contrast physical goods are characterized by predominance of
search qualities.

E.g.- The potential purchaser of a car may take a test drive, while a
consumer can only evaluate the advice given by financial advisor
once the advice has been experienced.
o
o
 Issues to facilitate
buying
oProviding process
Physical evidence (e.g. Policy documentation that accompanies
an insurance policy ) or the environment in which services are offered (e.g.
the grand premises in prime locations occupied by banks ) to compliment to
actual physical evidence create a tangible image such as “Citibank-where
money lives”, or offer physical gifts to prospective customers.
o
oPlacing particular emphasis on benefits of services – Customers do not
want a saving account but they do want to be able to pay for the education
of their children's.
o
o
o

e.g. Aviva young scholar scheme.

 Inseparability
“Whereas most goods are produced first, then sold and consumed, most
services are sold first then produced and consumed simultaneously”

A service can only be provided when the customer is willing to purchase and
experience it, because of the customers involvement in a greater degree
services are referred as Interactive processes.

oIssues to be addressed-
o
oEnsure that the service delivery are clearly specified and customer oriented-
services should be designed to suit the customer rather than the organization for
e.g. many banks have product specialist( i.e the staff which focus only on specific
products) but a customer with multiple services in a bank would like to deal with
a single individual.
o
E.G Westpac banking corporation in new Zealand stresses to its customers that
It offers “one number for your all banking needs”
oEnsuring that all the staff involved in service delivery are
customer oriented, flexible and responsive.
o
oIdentifying methods of facilitating customer involvement which
will enhance the quality of the service provided and to address
their new demands.
o
oE.g. HDFC bank offers to pay online for lord Ayyappa
o
o
o
o
 Perishablity
The fact that services are produced and consumed simultaneously means that they
are perishable too.

It means service providers cannot manufacture service to address surplus demand.

The perishablity characteristic of services makes us to stress upon demand and

supply, consideration should be given to following issues-

oAssessing whether there is considerable peeks and trough in financial services

e.g. tax advisors may experience a peek in the demand for their services as the
end of the year approaches.
o
oOffering measures to decrease demand at peek times and increase it in off times-
e.g. tax advisors may offer discount to those who use their services well i9n
advance of their tax deadlines.
o
oBy using other methods to adjust capacity- e.g. involving technologies like ATM
and employ part time staff to boost capacity in high demand periods.
o
o
 Heterogeneity
o

oServices cant be standardized, Different customers will want and experience

different services, services vary from customers to customers and from time to
time.
o
Issues to be addressed-

o Motivating and rewarding staff for encouraging consistency in approach, by

means of internal marketing, the way in which staff is treated and rewarded is also
important.
o
oMechanization to limit quality variability, e.g. ATM’s, self-service banking over
the internet, Automated telephone banking.
Fiduciary responsibility- refers to implicit responsibility, which financial service
providers have in relation to management of funds and the financial advice they
offers to their customers.