COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING SULTAN HAJI

AHMAD SHAH CAMPUS

SEMESTER 1 2023/2024

PRODUCT:

NEW INVESTMENT PRODUCT OFFERED BY A FINANCIAL INSTITUTIONS

SUBJECT CODE:

FNNB293

PREPARED BY:

STUDENT’S NAME ID NUMBER

NUR ATYHIRAH BINTI ABDUL RASHID BF01084011

PREPARED FOR:

EN. ADNAN BIN ABD. HAMID

SUBMISSION DATE:

11 DECEMBER 2023
Target Audience: Young professionals (21-36 years old)

Product: New investment product offered by a financial institution

1. Demographic Factors:

• Age: Younger professionals may be more open to risk and have a longer investment
horizon, making them receptive to new investment options. They may also be less
familiar with traditional financial products, creating an opportunity for the new product.

• Income: Young professionals often have disposable income after covering basic
needs, making them potential investors. However, their income levels may vary
significantly, requiring a tiered approach to product offerings.

• Educational Background: Higher education levels may correlate with greater financial
literacy and a stronger understanding of investment concepts. This can be leveraged
through targeted marketing and educational materials.

2. Psychological Factors:

• Perception: Young professionals may perceive the new investment product as

modern, convenient, and accessible. Building trust and establishing a positive brand
image is crucial to influencing their perception.

• Motivation: The desire to achieve financial goals like early retirement or financial
independence can be a powerful motivator for young professionals. Marketing should
highlight how the product can help them achieve these goals.

• Attitudes: Young professionals may have negative attitudes towards traditional

financial institutions, perceiving them as complex and inaccessible. The marketing
strategy should emphasize transparency, user-friendly technology, and personalized
service.
3. Cultural and Social Influences:

• Cultural Values: Cultural values around saving, investing, and risk-taking can
influence young professionals' decisions. Marketing should be sensitive to cultural
nuances and tailor messaging accordingly.

• Social Norms: The influence of peers and family can play a significant role. Social
media campaigns featuring testimonials and influencer endorsements can leverage
these influences.

4. Consumer Decision-Making Process:

• Problem Recognition: Young professionals may recognize a need to invest for future
financial security or reach specific goals.

• Information Search: They may rely heavily on online resources, reviews, and social
media to gather information about the product.

• Evaluation of Alternatives: Comparisons with other investment options and competitor

products will be made.

• Purchase Decision: User-friendly online platforms and seamless buying processes will
encourage conversion.

• Post-Purchase Behaviour: Ongoing communication, performance updates, and

personalized financial guidance are crucial to retain customers and build trust.

5. Digital and Technological Impact:

• Mobile-First Approach: Young professionals are digitally savvy and expect mobile-
friendly platforms for managing their finances.

• Data-Driven Personalization: Utilizing data analytics to personalize investment

recommendations and offer relevant financial solutions can significantly increase
engagement.

• Social Media and Influencer Marketing: Leveraging social media platforms and
partnering with trusted influencers can reach young professionals and generate brand
awareness.
Proposed Strategies:

• Develop a strong digital presence with a user-friendly mobile app for managing
investments.

• Focus on educational content and financial literacy initiatives to build trust and
empower young professionals.

• Utilize social media marketing and influencer endorsements to build brand awareness
and reach a wider audience.

• Offer personalized investment recommendations and financial guidance tailored to

individual needs and goals.

• Create a transparent and trustworthy brand image by emphasizing clear communication

and ethical practices.

• Partner with universities and career centres to reach young professionals early in their
financial journey.

• Offer affordable investment options with flexible minimums to cater to diverse income
levels.

• Integrate gamification elements and reward programs to incentivize engagement and

long-term investment.

Conclusion:

Understanding the unique buying behaviour of young professionals is crucial for launching a
successful new investment product in this competitive market. By focusing on digital solutions,
personalized experiences, and transparent communication, financial institutions can effectively
engage this target audience and encourage their participation in the financial system.