Identifying currents challenges in

marketing FINANCIAL PRODUCTS

With special reference to
INDIAN FINANCIAL
MARKET
 What is Financial market...
In economics a Financial market is a mechanism
that allows people to buy and sell (trade) , financial
securities (stocks and bonds), commodities(such as
precious metals or agricultural goods) of value at
low transaction costs and at prices that reflects
the efficient market hypothesis.

The financial market facililate :

The raising of capital (in the capital market)
 The transfer of risk (in the derivatives markets)
 International trade (in currency markets)
 Types of financial market..

Capital Markets:
 Stock markets
 Bond markets

 Commodity markets
 Derivatives markets
 Money markets
 Futures Markets
 Insurance markets
 Foreign exchange markets
 Financial products..
DEFINITION : Financial products refers to those instruments that help you
save, invest, get insurance or get a mortgage.

TYPES :
 Shares : They represent ownership of a company. They are associated with
high risk and return.
 Bonds : These are issued by companies to finance their business operations
and by Govts to fund expenses like infrastuctures and social programs.
 Mutual funds : These are professionally managed financial instruments that
involves the divercification of investments into a number of financial products,
such as shares, bonds and govt securities; This helps to reduce investor’s risk
exposure.
 Certificate of Deposit : CDs are issued by banks and credit unitons. They
usually have a fixed term and interest rate.
 IPO : When a company first issue share to raise capital.
 Fixed Deposit : Where a specific amount of fund is placed on deposit under
name of a/c holder and it earns a fixed rate of interest.
Challenges in marketing financial products

Emergence of new entrants in market place.

Fragmenting Consumer Bases
Consumer Trust
Consumer Loyalty
Technology
Economic forces
 Possible solutions..

1. Build a knowledgeable and component distribution channel.

2. Understanding rural markets.

3. Income linked insurance and other products and plans.

4. Duvelop products for rural segment.

5. Product innovation and promotion by GOVT to attract

more savings.
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