MARKETING OF FINANCIAL SERVICES ASSIGNMENT

1. INTRODUCTION

Businesses use the marketing mix to decide how to promote and position their
products to appeal to their interest groups. The first marketing mix consisted of
product, price, place and promotions. Throughout the long term, marketers have
added extra elements to the marketing mix, including people, process, physical
proof and philosophy.

• The first P is the product the company offers. On account of a service,

businesses need to take special consideration to distinguish, characterize and
design the service. Even then the service can also differ based on several
elements . The advantage of this heterogeneous component is that businesses
can offer customizable services based on the customers' needs.

• The price of the service is what the customer pays the business as a trade-off
for the contribution. The most important component to consider while setting a
price for a service is the worth the customer receives from the result. For
example, in case of a car wash, it may cost Rs.50, but provided there are no
other car wash in the area, the value of the car wash in particular might be even
more than only Rs.50. However, for products, cost-based pricing frequently
takes a front seat, a worth based pricing strategy is key for services.

• The place is where customers access the product. This encompasses where the
business is situated as well as what the business resembles. The whole
experience of purchasing and getting the service should be considered. For
example, a massage therapist's office that is noisy and swarmed does not
provide a loosening up experience.

• Promotion entails how a business communicates its service proposing to

customers and differentiates it from competitive services. This depends on its
marketing strategy. Promotional channels incorporate advertising, sales
promotion, personal selling, direct marketing and public relations.

• In the service industry, the people providing the service are inseparable from
the service itself. As a result, businesses need to position the service provider as
an expert. The business also needs to invest in customer service provider to
relate well to clients, assemble relationships, de-escalate tense situations and
address intense subject matters.
• The process is the means by which the business delivers the service to the
customer. A proper process enables businesses to offer a standardized degree of
service for every customer. It also enables businesses to make small
customizations inside the process to ensure a desired result.
• Because services are elusive, businesses need to offer physical proof of the
worth customers get such as the vibe of the place. Another way service-based
companies offer physical proof is through providing small products alongside
the service. By providing physical proof of significant worth, businesses
transform an elusive service into a substantial contribution.

• One of the 8 P's of marketing, is philosophy. Since services are

straightforwardly attached to their service providers, it's essential for customers
to understand the mission, vision and values of a business. For example, a
restaurant's philosophy might aim at providing their customers with food of
different cuisines so that they can taste the culture of the entire country sitting
at their own location. Learning the philosophy of a business might be the game
changer for a customer.

CONCEPT AND APPLICATION

For this question, I have taken the example of J.P. Morgan Chase's Service
Marketing Mix, which involves the principles of 8P's as follows:

Product
J.P. Morgan offers both monetary services and investment banking to its clients.
The firm advises on business structure and strategies . J.P. Morgan assists firms to
raise capital, and credit beginning and syndication. The firm provides charge
cards, training finance, trader services, and home loans among different services.
Place and Distribution
J.P. Morgan has numerous service networks that it uses to serve its customers. As
indicated by Nguyen (2019), the firm provides personal services at its branch
halls and ATMs and has in excess of 5,000 branches and around 15,000 ATMs.
The company's different channels incorporate versatile banking and online mode,
which allows clients to make accounts and access services progressively.
Price
J.P. Morgan offers various services with dissimilar prices. The firm has
competitive prices with low-interest rates. Besides, the firm charges financier
fees on its services,and consequently, makes high profits from enormous
businesses.
Promotion and Advertisement
J.P. Morgan has a well established reputation and markets its services through
customer relations. The firm has a respectable customer relationship and takes
care of their monetary requirements. J.P. Morgan's workers visit customers and
deal them personalized services to improve their relations. Moreover, the firm
uses social media to promote its products.
People
J.P Morgan has qualified and capable staff members. According to studies, the
firm appreciates client satisfaction, which it tries to improve. Its workers are
more than 25000. Thus, the firm tries to protect its clients from issues such as
extortion and makes its services agreeable to the clients.
Physical Evidence
J.P. Morgan's website that helps individuals to access their services, is one of its
physical proof. The in excess of 5,000 branches and around 15,000 ATMs also
serve as the company's physical proof.
The Process
J.P Morgan aims to simplify its forms to improve the experience of its customers.
Studies suggest that the firm utilizes advanced platforms for easy procedures,
which results in clients' satisfaction while increasing adequacy. The platforms
could help to convey personalized and imaginative services.
Productivity and Quality
Banks stress the importance of perfect implementation. According to several
studies conducted, J. P. Morgan uses the Six Sigma strategy to improve the
proficiency and nature of its products. Whether it is a home loan or an endorsing,
which involves several dollars, the firm aims to execute its services in the correct
manner on its first attempt.

CONCLUSION

The goal is to get all the 8P’s to work together for the required marketing mix. If
successful, the business will have a much better chance to attract and convert its
potential customers by creating a fulfilled business experience in all aspects.
2. INTRODUCTION

The COVID-19 pandemic has been influencing all parts of life since its beginning
in January 2020 and from that point forward it has harmed human existence and
the economy.
With the income being vigorously impacted as cutbacks and compensation cuts,
the interest for new credit has been on the ascent and significantly as unstable
loans. In this case, the client has lost his job and delayed credit card payments.
The credit score is one of the main proportions of the monetary wellbeing. It tells
banks initially how mindfully they use credit. The better the score, the more
straightforward they will view it as supported for new loans or new credit
extensions.

CONCEPT AND APPLICATION

A portion of the manners how he can further develop his credit score are;

Those with unfortunate credit evaluations are viewed as higher-risk borrowers,

with less banks seeking them and more organizations pulling off criminally high
yearly rate rates (APRs) as a result of it.
Factors that add to a higher credit score incorporate past on-time installments,
low adjusts on the credit cards, a blend of various credit card and credit accounts,
more established credit accounts, and insignificant requests for new credit. Hence
the client must start keeping tabs of his credits by:

Making a recording framework, either paper or computerized, for monitoring

month to month charges,
Setting due-date cautions, so they know when a bill is coming up,

Another choice is charging all of the month to month charge installments to a

credit card. This methodology guarantees equilibrium every month to stay away
from interest charges. This course could work on bill installments and further
develop the credit score on the off chance that it brings about a background
marked by on-time installments.

Paying the credit card adjusts at whatever point conceivable is of most extreme
significance during an emergency. Whenever overlooked, the obligation
increments thus does the interest gathered on the equilibrium which may
challenging to reimburse later. Any sort of late installment can influence the
credit score.

Considering that the interest gathered during the time frame should be paid, it is
encouraged to choose the monatorium only if there is a lack of assets to meet
fundamental prerequisites.
Banks favour loaning to borrowers who keep a credit usage proportion of beneath
30% of their credit limit.
The least difficult method for holding the credit usage within proper limits is to
cover the credit card adjusts every month. In the event that they can't necessarily
do that, then, at that point, a decent guideline is to keep the complete equilibrium
at 30% or less of the all out credit limit while trimming that down to 10% or less,
which is viewed as great for further developing the credit score.

The client should avoid hard requests. As a matter of fact, a hard request stays on
the credit report for a whole year. While every individual hit is somewhat little, it
can drive they past the brink from one credit score level to one beneath it.
Likewise, a few hard requests throughout a brief timeframe can drop the score by
a great deal.

The time of-credit piece of the credit score sees how long they've had the credit
accounts. The more seasoned the typical credit age, the better he will fare in
terms of credit score.

In the event that they have old credit accounts that they're not utilizing, they
should not close them. However the credit history for those records would stay on
the credit report, shutting credit cards while they have an equilibrium on different
cards would bring down the accessible credit and increment the credit use
proportion. That could lessen the score.

Also, assuming they have delinquent records, charge-offs, or assortment

accounts, they might make a move to determine them. For instance, since they
have a record with various late or missed installments, they should get up to
speed on what is past due, then, at that point, figure out an arrangement for
making future installments on time. That will not delete the late installments,
however can further develop the installment history going ahead.

In this case, they have various exceptional obligations, so it very well may be to
the benefit to take out an obligation combination credit from a bank or credit
association and pay off every one of them. Then, at that point, they'll simply have
one installment to manage, and, in the event that they're ready to get a lower
interest rate on the credit, they'll be in a situation to settle the obligation quicker.
That can further develop the credit use proportion and, thus, the credit score.

If they convey a lot of obligation in relationship to the accessible credit, the score
can endure. Credit usage represents 30% of the credit score, as a matter of fact.
If remaining at a 30% credit use is hard, there is consistently the chance of
having the credit limit expanded. On the off chance that they have a decent
installment history and have worked on the credit since opening the record, most
creditors will think about expanding the greatest. This rapidly further develops
the credit use and can raise the score.
In this way, they could never again have to stress over being supported in terms
of credit score, despite their crisis.

CONCLUSION
Further developing the credit score is a decent objective to have, however it can
require a little while to see a recognizable effect on the score In this COVID-19
pandemic, the monetary emergency has been named terrible. The monetary
strength of many has been hampered alongside any financial objectives they had
arranged during the year. Reimbursing existing obligation and keeping up with
the dependability of the funds will be the way to emerge from this emergency
with next to no unfavorable impact on the monetary wellbeing. During when pay
can vary because of pay cuts or cutbacks, it is vital to know where the credit
score stands routinely.

3.a) INTRODUCTION
Life insurance policies are legitimate contracts; thus, these portray the
restrictions of the insured occasions. Frequently, some particular rejection is
written in the agreement to restrict the risk of the insurer. Essential target of
purchasing a life insurance strategy is to give a finan-cial security to the family
even in the afterlife. Hence an individual ought to think about his/her monetary
condition and way of life which his/her family ought to keep up with even after
this individual's demise. For instance, there ought to be adequate sum accessible
for the family for everyday costs and for future objectives like youngsters'
schooling/marriage and so on. It is dependably prudent to assess one's life
insurance strategy consistently to coordinate with occasions like marriage, labor,
while taking any type of credit (home advance, individual advance and so on).
Following are the three significant sorts of life insurance items:

Term Insurance is a sort of life insurance wherein no money is collected for the
policyholder. What's more, in this kind of life insurance, the insurance cover is
given exclusively for a restricted time. This is otherwise called pure risk
insurance on the grounds that the premium purchases the assurance in the event
of death. A portion of the significant factors should be viewed as in a term
insurance plan are examined as follows:
Insured Amount (Sum Insured): It is the sum that a beneficiary gets in the event
of death.
Payment Amount: It is the sum paid by the policyholder while buying the
insurance.
Term of the Insurance: It is the time span for which the insurance sum is being
bought.
Endowment Plans: It is a blend of insurance and investment.
Unit Linked Insurance Plans (ULIPs): ULIPs provide financial backers with the
advantages of both insurance and investments under a solitary joined plan.
Notwithstanding, the risk in investment portfolio is borne by the holder.

ULIPs, endowment plans and term plans have their upsides and downsides
similar to any investment or insurance apparatus. It's critical to recognize and
pick a life insurance item that gives them the most extreme benefit in view of the
investment objectives, skyline and risk taking capability.

CONCEPT AND APPLICATION

In the given case, Ankur ought to choose an a term insurance. This is on the
grounds that, he needs to purchase a pure risk insurance cover. A pure risk cover
offers monetary defensive safeguard against passing of the life guaranteed.
If during the arrangement span, the life guaranteed passes on, the life insurance
organization will pay the aggregate guaranteed sum (life cover add up) to the
chosen one as referenced in the policy record. Be that as it may, assuming that the
life guaranteed endures the approach time frame, there will not be any payout.
Furthermore, the life insurance organization won't pay any advantage to the life
guaranteed. To place it in straightforward words, there's no maturity benefit in
term plan. While endowment plans and term plans offer ensured returns on the
demise of the insured or after maturity, returns on ULIPs are not ensured. For this
situation, Ankur has a family, his better half is a non-earning member and his girl
is exceptionally young. So in the event of a mishap, the monetary security of the
family he abandons, won't be ensured. It is clear from his decision that he doesn't
need an insurance cover for keeping up with his lifestyle or satisfy monetary
objectives however rather to cover in his demise, assuming such disaster occurs.
With respect to endowment plan, this assists the insurer in getting life inclusion
along with setting aside cash for the retirement, kids' schooling and marriage, or a
house. The policyholder's family or chosen one gets the total guaranteed sum on
death of the policyholder. While they likewise give monetary security of family
against the policyholder's abrupt downfall or inability, they are not quite as
modest or cheap as term life insurance.
A term life insurance strategy is one of the least difficult and most practical life
insurance products. It gives life coverage for a predetermined period during the
policy term and in the event that the policyholder bites the dust, the aggregate
guaranteed is paid to the candidate in singular amount or as regularly scheduled
pay-outs. Contrasted with a ULIP plan or endowment strategy, a term insurance
can give the family more monetary security. It's pure risk cover. There is no
investment part. Thus, the premiums are determined for mortality charges. The
life insurance organization pay the candidate provided that the life guaranteed
bites the dust during the predefined time frame. Also, thus, has entirely
reasonable premium rates.
On the off chance that Ankur having higher liabilities is prepared to pay a higher
premium, he might decide on a higher aggregate guaranteed. He can settle on Rs.
1.5 Crores, as given, if it is supported by the Underwriting group of the
insurance organization. He can be guaranteed that in the event of his demise
during the arranged time frame, the family won't confront any monetary
emergency. This shows that his family will be left with extremely high corpus
store in such a case, and this implies no more reliance or going through the
difficulty to earn enough to get by. Since, the term insurance plans are adaptable,
he can choose the inclusion, strategy period, and the payout choices - whether
singular amount or pay substitution term plan. He can broaden the inclusion with
the assistance of term plan riders, which are discretionary however paid options
under term plans.
Various kinds of Riders accessible under term plan:
Accidental Death Benefit Rider
Total and Permanent Disability Rider
Critical Illness Rider
Waiver of Premium Rider
Hospital Cash Rider

CONCLUSION

All the premiums he pays are charges deductible under Section 80C and the
payout are tax exempt under Section 10(10D) of Income Tax Act.
Term plan is a straightforward item. Easy to figure out, look at, and purchase
bother free on the web.
Since Ankur is the bread earner of the family, in case of an untimely death of the
breadwinner, with the sum assured received, the dependents can pay-off any loan,
child's education fees, monthly household expenses, or any other liability if he
opts for a term plan.

3.b) INTRODUCTION

Early retirement planning is basic as it requires quite a while to ac-cumulate the

assessed assets for a happy with living in any event, when an individual no longer
partakes in the advantages of a standard compensation. With develop ing years,
there is for the most part an expansion in clinical requirements and government
backed retirement of a person. Retirement planning through putting resources
into protections and retirement-centered instruments, for example, business based
pensions, Individual Retirement Arrange-ment accounts (IRAs), and 401(k) plans
could furnish people with an adequate number of assets to upgrade their post
retirement month to month income. IRAs are speculation instruments utilized by
people to acquire and ear-mark assets for retirement reserve funds. 401(k) plans
are laid out by em-ployers for which workers could contribute via compensation
reduc-tions on a post-tax charge or pre-tax charge premise.

CONCEPT AND APPLICATION

I would prompt that they should consistently audit the computations to guarantee
that they are dependably on target to accomplish the retirement corpus.

Next is to list down and dissect their current investments, reserve funds, and
sources of income.
Then, at that point, the previous exhibition of these investments and its portfolio
focus is surveyed.

We investigate the insurance needs. I would prescribe that financial backer to

choose an unadulterated Term Insurance Plan and to keep insurance and
investment needs discrete.
For instance:
Mr. Ankur, matured 36 years, procures Rs 15,00,000 for every annum and spends
Rs x per annum on himself. Consequently, he procures an overall gain of Rs (15
lakhs - x) p.a. for his loved ones. In this manner, as pay substitution, his family
would require Rs (15,00,000 - x) p.a. for 1 year of life costs.
Every year, with expansion, the family's costs would proportionately increment,
which should likewise be considered.
Besides, as he has a girl, he would require Rs 10 lakhs for her schooling for
example a sum of (15,00000-x+1000000).
When the HLV has been determined, the following stage is to pick the suitable
insurance item to cover the requirements.
In the previous inquiry, it has been made sense of why an unadulterated gamble
term plan will be useful for this situation.

For this situation, I have arranged a retirement plan assuming that Mr. Ankur has
a rental pay of Rs.60,000, pay from his investments of Rs. 30,000, and spends
house lease of Rs. 30,000 and support cost of Rs.10,000 each month. It is
additionally expected that he burns through Rs.100 each week and Rs.5000 each
month on prepping and garments separately while burning through Rs.10,000 on
siestas quarterly. His everyday food items cost Rs.30,000 each month and phone
costs Rs 5000 as accepted. His clinical insurance is expected to require Rs.10,000
per quarter and prescriptions Rs.10,000 each month. A retirement plan is
consequently made. We think about every one of the necessities, objectives,
current monetary status, and contingent on the gamble resilience, we make a
modified retirement plan for them.
RETIREMENT BUDGET
AGE

Age today 36 Years to retirement 24

Age at retirement 60

RETIREMENT INCOME SOURCES

Weekly Bi-Weekly Monthly Quarterly Annually
Present income 125,000.00 # 1,500,000.00
Company pensions
Rental income 60,000.00 # 720,000.00
Shares/Investments income 30,000.00 # 360,000.00
Annuity Income
Other retirement plans

TOTAL 215,000.00 2,580,000.00

HOUSING COSTS
Weekly Bi-Weekly Monthly Quarterly Annually
Mortgage or rent 30,000.00 # 360,000.00
Real estate taxes 30,000.00 # 120,000.00
Maintenance and repair 10,000.00 # 120,000.00
Home insurance

TOTAL 40,000.00 30,000.00 600,000.00

PERSONAL EXPENSES
Weekly Bi-Weekly Monthly Quarterly Annually
Grooming 100.00 # 5,200.00
Clothing 5,000.00 # 60,000.00
Holidays 10,000.00 # 40,000.00
Other
Auto expense
Auto insurance

TOTAL 100.00 5,000.00 10,000.00 105,200.00

DAILY LIVING EXPENSE

Weekly Bi-Weekly Monthly Quarterly Annually
Groceries 30,000.00 # 360,000.00
Entertainment
Utilities
Telephone 5,000.00 # 60,000.00

TOTAL 35,000.00 420,000.00

MEDICAL EXPENSES
Weekly Bi-Weekly Monthly Quarterly Annually
Prescription drugs 10,000.00 # 120,000.00
Medical insurance 10,000.00 # 40,000.00

TOTAL 10,000.00 10,000.00 160,000.00

SUMMARY

Annual retirement income required 1,285,200.00

Estimated Soc. Sec., pension, and other income 2,580,000.00
Annual income shortfall 1,294,800.00

CONCLUSION
The main highlight be noted for retirement planning is that once an individual
lays out an investment procedure to arrive at his/her retirement reserve funds
objective, he ought to follow it strictly.