TASK-4 SERVICE MARKETING AND 7P’S OF

EACH FINANCIAL PRODUCTS

What are financial Services?

1. Financial services are the economic services provided by the finance

industry.
2. Financial service is part of financial system that provides different types of
finance through various credit instruments, financial products and services.

a) In financial instruments, we come across cheques, bills, promissory

notes, debt instruments, letter of credit, etc.

b) In financial products, we come across different types of mutual

funds. extending various types of investment opportunities. In
addition, there are also products such as credit cards, debit cards,
etc.

c) In services we have leasing, factoring, hire purchase finance etc.,

through which various types of assets can be acquired either for
ownership or on lease. There are different types of leases as well
as factoring too.
Examples of Financial Services?

 An example of financial services are services like investment services,

retirement planning and mortgage brokers,

 banks, savings institutions, credit unions and credit card companies,

 financial service providers are accountants and financial planners.

Why do we need Financial Services?

 Expands activities of financial markets.
 Benefits of Government.
 Economic Development.
 Economic Growth.
 Ensures Greater Yield.
 Maximizes Returns.
 Minimizes Risks.
 Promotes Savings.
 Promotes Investments.
 Balanced Regional Development.
 Promotion of Domestic & Foreign Trade.
Marketing

2 Types of Marketing: -
1. Product Marketing
Product marketing refers to the process of production of a product with demand
(or foreseen demand), thereafter promoting and selling that product.
In product marketing Mix only 4P’s are required i.e product, price, place and
promotion.

 Tangible
 Storable
 Replicating ability (repeatability/ duplication)
 Measurable
 Control quality by data
 possibility for patents

2. Service Marketing
Service marketing refers to the origination of a service, promotion and providing
customer experience at a judgmental price.
Identifying the exact cost to a service is quite difficult, and it will differ from person
to person.
So, the price is decided by the seller on the grounds of the identifiable cost and
estimated workmanship.
Service marketing, three more P’s are added to the conventional marketing mix,
which are people, process and physical existence, making it to 7 P’s which is
explained ahead in this paper.

A service needs to be:

 Intangible
 Consumed at the point of interaction
 Difficult to repeat
 Difficult to patent
 Difficult to measure
 An experience for customer
 Inseparable from seller
Equity

Equities are shares of ownership issued by publicly-traded

companies.

They are traded on stock exchanges such as the NSE or BSE.

You can potentially profit from equities either through a rise in the share price or
by receiving dividends.

7 P’s of Service marketing mix

1) People – Shareholders stake in a company

2) Place - The share market is a source for companies to raise funds

and for investors to buy part-ownership in growing businesses and
grow their wealthBSE is an Indian exchange located at Dalal Street,
Mumbai.
BSE stands for 'Bombay Stock Exchange' and NSE stands for
'National Stock Exchange'.

3) Price- There is no exact price in equity, because there are many

companies involved in the market ranging from transactions of
repeated buying and selling of shares.
Price can be at which the share is placed or book value of shares
which is called face value.
4) Promotion -

A stock promotion is when someone promotes a stock. In a sense,

you could think of a stock promotion as an advertisement of a
particular company’s stock. The purpose of a stock promotion is to
drive interest to the stock so that it will attract investors to buy
shares in the stock.

5) Process -

The most common stock transaction is the simple market order.

When you give a market order, you're ordering your brokerage firm to
buy or sell a specified number of stocks in a certain company at the
current market price. This is a simple buy and sell order and is
executed right away.

6) Physical evidence - Physical evidence refers to everything your

 customers see when interacting with your business. Signage ,
financial reports issued by the company , demat reports etc.

7) Product -

There is more to stock exchanges than just trading in stocks,

indices and exchange-traded funds.

DEBT CORPORATE BONDS (TAXABLE) ...

CORPORATE BONDS (TAX FREE) ...
GOVERNMENT SECURITIES (G-SEC) ...
G-SEC LINKED ETFs. ...
GOLD: Gold ETFs. ...
SOVEREIGN GOLD BONDS. ...
CURRENCY. ...
GLOBAL EQUITY INDICES.

Fixed Income (Bonds)

Fixed-Income securities are debt instruments

that pay a fixed amount of interest—in the
form of coupon payments—to investors.

7P’s of Service marketing mix

1) People- It primarily includes government-issued and corporate debt securities,

and can essentially be broken down into three main groups: issuers,
underwriters, and purchasers. Bondholder and lender are their .

2) Place- Many corporate and government bonds are publicly traded; others are
traded only over-the-counter (OTC) or privately between the borrower and lender.

3) Price- Bonds are loans; when you purchase a bond, you are making a loan to
the issuing company or government.
Each bond has a par value, and it can either trade at par, a premium, or a
discount.
The amount of interest paid on a bond is fixed. However, the yield—the interest
payment relative to current bond price—fluctuates as the bond's price changes.

4) Promotion-
Bonds are less risky than equities. Therefore, investing in bonds will ensure that
your corpus is protected. Advertising is not permitted in India with regard to
investing in bonds. If any authority takes the initiative to encourage bond
investing, then India can witness a more liquid bond market someday.

5) Process -
You can buy Corporate bonds from the primary markets when the issuing
company issues new bonds.

Government bonds are not traded like shares on the stock exchange or
secondary market. They are sold through their official distributors.

Instead of buying bonds directly from the companies and Government, you can
also invest in them through the bond brokers in India.
Brokers like ICICI direct, HDFC Securities etc offer their clients to invest in bonds
along with equities.

6) Physical Evidence -
In order to invest in them, you are required to file an application form and submit
the same to any branch of the issuer along with prescribed documents and
application fee.
In case you are having demat account, your bonds will be credited to the same.
However, if you don’t have one, then you would receive them in their physical
format.

7) Product -

1) Zero-coupon bonds: These bonds are available for investing at a discount on

the face values. After the expiry of their maturity period, they are redeemed at
par.

2) G-Sec bonds: These bonds are considered as one of the safest

bonds as they are issued by the Government of India.
3) Corporate bonds: These bonds are issued by corporate the
companies borrow funds from the people and pay them regular
interests.
4) Inflation-linked bonds: The principal amounts and interest payments
of these bonds are indexed to inflation.
5) Convertible bonds: A bondholder is having the option of converting
these bonds into equities as per predetermined terms.
6) Sovereign gold bonds: These bonds are issued by the Indian
Government and offer the safest way of investing in digital Gold.

Cash and Cash Equivalents (Liquid funds,

 saving account, online wallet)

7 P’s of Service marketing mix

1) People - Cash denotes hard cash and the money you have in the bank
savings with liquidity which is mostly used for transactions.
Branch manager , front line officers, employees, customers.

2) Product – Deposits, advance and loans, consultancy , investment , and

international banking .
Cards- Credit card , ATM, travelers card etc.
Demat services
online money transfer
Mobile banking , internet banking
Micro credit etc.

3) Pricing –
Interest rates, consulting fees, commission.

4) Place – Branch , ATM, House/Office .

5) Promotion -
Advertising – televisions, radio , media, theatres
Print media – Hoarding , newspaper, magazines
Publicity – road shows, campus visit, sponsorship
Sales promotion – Gifts , bonus, offers, incentives etc

6) Process- There are few steps to open an account in any bank and you can
easily join any bank start using their services accordingly .
Initial amount will be needed to start a saving account .

7) Physical evidence
 Mutual Funds
7 P’s of Service Marketing Mix

1) People -
Employees, frontline staffs (link between mutual fund and customers who
can become investors), investors.

2) Product -
Equity or growth schemes. These are one of the most popular mutual fund
schemes. ...

 Money market funds or liquid funds: ...

 Fixed income or debt mutual funds: ...

 Balanced funds: ...

 Hybrid / Monthly Income Plans (MIP): ...

 Gilt funds

3) Place-
In mutual fund also there are channels broadly defined as ‘direct’ or
‘indirect’.
Direct channels involve the movement and sale of products directly
between the provider and the customer as in the traditional branch
network,
whereas in the case of indirect channels product flows via intermediaries
and middlemen.
Traditionally mutual fund has been via the branch network, but now
different approaches are adopted.

4) Promotion -
Promotional efforts should be stimulating and motivating enough to
generate interest in and promote a positive attitude towards a Mutual fund
and there is big competition in mutual funds industry also.

- Hoardings / Posters
- Audio-Visual Media
- Performance Advertisements 
- Ranking advertisements

5) Pricing -
Price competition involves using low prices as a competitive tool to attract
customers.
A mutual fund's price is calculated as its net asset value, or NAV. The NAV for a
given mutual fund is the price of its assets (with all of its liabilities subtracted)
divided by the number of shares.

6) Process-
A mutual fund pools money from many individual investors, then the fund
manager invests it in a portfolio or basket of stocks, bonds, and government
securities.

7) Physical evidence-
Physical evidence are the offer documents and Mutual fund statements that the
investors are provided with.
In order to have a better relationship with the investors, the statements should be
regular, easily understandable and all the facts should be mentioned in it.

Submitted By- Nikhil Chandran

Relationship Manager