FINANCIAL

SERVICE
MARKETING

Rohit Tripathi- mmr 3066

Ashish Gupta- mmr 3018
Pankaj Kumar- mmr 3053
 SERVICES OF FINANCIAL
INSTITUTION
In present scenario most of the financial
institutions are based on the services. All
banks are improving their services to attract
potential customers. A more developed and
mature e-banking environment plays a
important role in improving financial
services by encouraging a shift from
traditional model of payment to electronic
alternatives.
 Payment methods can be catagorised in two ways:

Traditional Payment Method:

Cash on Delivery
Bank payments
Electronic Payment Method
Innovations affecting Consumers- includes credit and
debit cards, ATMs, stored value cards and e-banking.
Innovations enabling online commerce- e-cash, e-checks,
smart cards and encrypted credit cards.
Innovations affecting Companies- includes inter-banking
transfer of payment.

 Products offered in Financial
Services
Fund transfer and payment systems
Loans in low interest for home, Automobile
and electronic goods
Securities placement and underwriting and
capital market activities
Life Insurance
Securities trading and
Retail banking
 Financial services marketing mainly include
Insurance, Banking and Lease marketing…..
Insurance Marketing:

The term ‘Insurance Marketing’ refers to the
marketing of insurance services with the motto of
customer orientation which makes possible a fair
blending of customer satisfaction and profit
generation. It is meant need oriented development
of product and for it you have to make suitable
pricing decisions, design sensitive promotional
strategies and need scientific approach to the
management of agents.
 Marketing approach of Insurance
Organizations
Identify the customers future financial needs.
Develop appropriate insurance plans to meet the

needs.
Determine the premium for each plan developed.
Personal selling through agents & advertising.
Opening of branches, appointment of agents &
development officers.
Policy servicing.
Forecasting and research on future market needs for
insurance.

Insurance marketing mix elements

Product

Price Policy Servicing

Effective Customer Service

Promotion
Place
 Bank Marketing

Bank marketing aimed at having a full view of

customer’s need, fulfilling the identified needs in the
best way by required services, identification of
potential customers and conducting the activities at
the branches on the basis of market segmentation.
It is said that marketing of banking services is
concerned with product, promotion, pricing, place,
people, process and physical facilities and
appearance.
Bank marketing is a managerial approach to market
the services and a fair way of making profits.
 Marketing Process in Banks

1. Identification of customer needs

2.Segmentation of market
3.Development of banking product
4.Price determination for bank products
5.Setting up distribution channels
6.Promotion of the product
7.Training in marketing
8.Forecasting and research
9.
 Identification of customer’s needs
 Accessibility to cash
 Security of financial assets
 Quick transfer of funds
 Deferred payment of borrwing
 Financial Advice

Segmentation of Market


 Commercial and Institutional banking

 Personal banking
 Agricultural banking
 Small business banking
 International banking
 Development of Banking Products
Conceptualization or new idea generation
Feasibility testing
Field testing
Launch
 Areas to develop new banking products
Underwriting the public issues of shares &
debentures
Investment counseling services
Financial and advisory services
Portfolio Management services and Mutual Funds
Leasing business

 Price Determination for Bank Products

The following aspects are considered in a pricing policy:



The value of services to the customers

The cost of developing the services
The impact of the volume of use or of new technology
on the cost
The price for similar services charged by the
competitors
The extent to which a bank seek to dominate the
market