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MARKETING FINANCIAL

SERVICES
PUAN FAOZIAH IDRIS
EXT: 6482
ROOM: 3104

A bank without a formal planning process is like a


ship without a destination.
Quotation: A bank that fails to plan is planning
to fail.
Any commercial organization, which fails to plan its
future will quickly become out of touch with its
environment, thus leaving itself vulnerable to
competitor activity aimed at gaining a dominant
place in the market.
2

The value of planning lies in the bank or financial


institution, being in a position to control its own
future.
This is principally due that the bank should be in
constant touch with a fast changing environment.
A systematic appraisal is developed and
incorporated in a written plan, which will provide
continuity of thought and action from one year to
the next.
3

(a)Executives are forced to set corporate


objectives thus providing guidance for the
banks operations
(b) Planning identifies the resource needs of
each activity, balances these needs against
available resources, and allocates these
resources in the most efficient way,

(c) A good planning process should make all


staff more aware of their own roles and
responsibilities
(d) A formal plan forces banks or other
organizations to considers its own
Strengths, Weaknesses, Opportunities, and
Threats (e.g. SWOT Analysis).

(e) A good plan will enable a bank or financial


services provider to identify the customers
needs and wants, thus enabling the bank to
build strategies for any profitable segment
identified,
(f) The bottom line of any planning process is to
monitor new development in the business
environment, and try to be in control.
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Marketing
Plan
Human
Resources
Plan

Financial
Plan
Risk
Management
Plan

With the growing level of competition, and the


rapid pace of change, banks started to focus their
attention on strategic planning,
Marketing plan emerged as an essential tool in
the overall strategic plan,

In spite of this new development, some


traditional banks remained with the old
banking business concept instead of
employing modern management business
skills within the banking business.
Unfortunately, some traditional banks went
out of Business earlier than expected.

1. Mission Statement
It states the overall purpose of bank or any
organization.
2. Key Objectives
Objectives are cited for variables such as:
(a) financial return expected,
(b) degree of efficiency required,
(c) size of loans or credit on offer, and
(d) service quality
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3. Market Assumptions
These contain explicit statements about future
trends in strategic market segments, which may
affect the banks freedom to act.
4. Competitive Strength Evaluation
An evaluation exercise of the strengths &
weaknesses based on factors such as: ( relative
costs, service quality, and market share).

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5. Assessment of Opportunities
The plan should assess the threats and
opportunities for each market segment.
This is important in order to achieve the
mission & objectives
6. Market Portfolio Strategy
The plan must identify the desired
investment strategies for each of the
markets in, which bank units participate
and the objectives to be attained for each.
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7. Strategic Changes
Objectives & goals for action plans stating
changes in capabilities or resources under
the control of unit management and
selected as most likely for achieving the
desired market results.
8. Action Plans for Implementation
Specific programs including measurable
goals, events and timing, which result in
the changes specified in action plan
objectives.

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9. Expected Financial Results


These include the anticipated financial
outcome in terms of revenue, profits and
return on assets for the units.
10. Project Review or Evaluation
Realistically, with a every project concept,
there should be a review or evaluation with
the intention to assess its result.

14

Mission
Statement
Key
Objectives
Environment
& Market Assumptions

Competitive
Strengths Evaluation

Assessment of
Opportunities

Market Portfolio
Strategy
Strategic Changes
Action Plans
For Implementation
Evaluation Process

Action Plans
For Implementation

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The banking industry around the world has been


changing very rapidly since the early 1970s.

The industry has experienced a substantial change


in competitive conditions as a result of a number
of factors:
the industry tended to go international, led

leading US commercial banks,


new competitors entering the financial serv
market new approaches to servicing corpo
new capital markets emerged as a result
transformed traditional funding of banks &
a wide range of sophisticated products wer
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introduced under packaged sales

in response to competition, banks reacted a

to build up their own multi-national presen


through their own brand name,
banks began to channel their marketing res
towards diversification,
by the end of 1970s, banks operations had
more complex with the range of services o
while margins on lending were eroded thro
competition, fee-based services were incre
non-bank financial institutions were also pr
financial services hence, more competitio
(e.g. General Motors, Shell Co, American Express.
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and Supermarkets)

new information technology (I.T.) impacted

operations of the banks and became one o


drivers, (e.g. back office became automated),

savings and loans associations initiated inte

bearing transaction accounts and brought d


competition to commercial banks, and

professionals like accountants, lawyers, rea

agents, financial brokers, asset managers a


financial services.
18

In the 1980s the banking industry experienced an


acceleration in the pace of change in both:
(a) retail, and (b) wholesale market.
Retail Banking
Increased Segmentation of Consumer Groups
and provided Specialist Private Banking Services
(e.g. rich individuals, High-Net-Worth customers)
Stratified Accounts (e.g. personal loans, credit finance,
insurance products, 1st & 2nd line mortgages, deposits FD &
S/Term)

Replacement of Paper-Based Accounting Systems,


Increased competition for loans and deposits
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Wholesale Banking
Competition Intensified- banks continued to strive
for competitive advantage and in doing so cancel out
one anothers efforts,
MNCs became stronger in their demands by
negotiating their own interest rates and cost of services
from banks,

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Wholesale Banking, cont.


Japanese banks took the first 5 top positions in
the international banking league,
New development in I.T change the banks
approach to the consumer, wholesale and
corporate markets,
Increase competition from non-bank institutions
(General Motors, General Electric, American Express,
Merrill Lynch, and other major credit finance companies)
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Banks portray themselves as a One Stop


Financial Services Centre.
Banks no longer remain in their traditional
service market. They are now more aggressive
in providing a full menu of services that will
cater for its customers needs.
The competition is so fierce that they can offer
any type of service provided their customers
are satisfied with the speed efficiency & costs
involved.
22

Banks in certain industrial countries are now


mobile in such a manner, that they will visit
you at your doorsteps.
Technology is one considered as one of the
key drivers that enables banks to cope with
the intensity of competition.

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Relative Market Share


High
STAR
H
i
g
h

L
o
w

Low

PROBLEM CHILD

Strategy Build

Strategy Build or
Harvest or
Divest

CASH COW

DOG

Strategy Hold

Strategy Harvest
or
Divest

Source: Boston Consulting Group Matrix

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Star
Where the bank would
make investments in
order to build up or
expand its Business
Units (BU),

Cash Cow
Where the bank would
invest just enough
money to hold the BU
share at the current level,

Problem Child
Where the bank allows
market share to decline
in order to maximize
short-term profitability &
cash flow, regardless of
the long-term effect,

* Dog
Where the bank sells or
phases out the BU &
reinvest resources.

25

Ansoff identified 4 strategies following the BCG


Matrix:
(1) Market Penetration,
(2) Product Development,
(3) Market Development, and
(4) Diversification.
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MARKET
CURRENT MARKET

P
R
O
D
U
C
T

NEW MARKET

C
U
R
R
E
N
T

Market
Penetration

Market
Development

N
E
W

Product
Development

Diversification

Source: Ansoff Matrix


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(1) Market Penetration


This strategy is the least risky of the 4
strategies because it involves increasing
market share in existing markets.
(2) Product Development
The bank is already well known in its
current market place but there is an
identified need for new products to meet the
changing needs of this market. (MBSB previously
offer housing loan, then currently offer deposit products to
customers)
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(3) Market Development


The bank is already known for its current
products, but the strategy is to take these
products into a new market. (i.e current account for
golfer)
(4) Diversification
With this strategy, the bank is moving into
new market with new products.

29

The McKinsey model argues that businesses should


develop their growth strategies based on:
Operational skills,
Privileged assets,
Growth skills, and
Special relationships.
Growth can be achieved by looking at business
opportunities along several dimensions, summarized
in the diagram.
The McKinsey Model resembles the Ansoff Model.
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Acquisitions

New Industry
Structure

Joint Ventures

New Geographic
Areas
New Delivery
Systems
New Products &
Services

How?

Minority Stakes
Alliances

Existing Products
to new customers

Marketing
Partnership

Existing Products
to existing customers

Organic Invt

Increasing Level of Risk

McKinsey Growth Pyramid

New Competitive
Arenas

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Generic Options & Investment Structures for a Growth Strategy

Operational Skills
They are the core competences that a business has
which can provide the foundation for a growth strategy.
(e.g. the business may have strong competencies in customer
service; distribution, technology).

Privileged Assets
Those assets are held by the business that are
hard to replicate by competitors.
(e.g. in a direct marketing-based business these assets
might include a particularly large customer database, or a
well-established brand).
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Growth Skills
These are the skills that businesses need if they are
to successfully manage a growth strategy.
These include the skills of new product
development, or negotiating and integrating
acquisitions.

Special Relationships
Such relationships are those that can open up new
options.
(e.g. the business may have specially string relationships with
trade bodies in the industry that can make the process of growing
in export markets easier than for the competition ) .
33

The model outlines seven ways of achieving growth,


which are summarized as follows:
Existing products to existing customers
Existing products to new customers
New products and services
New delivery systems,
New geographic areas,
New industry structure, and
New competitive arenas
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Existing products to existing customers


The lowest-risk option; try to increase sales to the
existing customer base; this is about increasing the
frequency of purchase and maintaining customer loyalty.
Existing products to new customers
Taking the existing customer base, the objective is to
find entirely new products that these customers might
buy, or start to provide products that existing customers
currently buy from competitors

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New products and services


A combination of Ansoffs market development &
diversification strategy taking a risk by developing
and marketing new products. Some of these can be sold
to existing customers who may trust the business
(and its brands) to deliver; entirely new customers may
need more persuasion
New delivery systems
This option focuses on the use of distribution channels
as a possible source of growth. Are there ways in which
existing products and services can be sold via new or
emerging channels which might boost sales?
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New geographic areas


With this method, businesses are encouraged to
consider new geographic areas into which to sell their
products. Geographical expansion is one of the most
powerful options for growth but also one of the most
difficult.
New industry structure
This option considers the possibility of acquiring
troubled competitors or consolidating the industry
through a general acquisition programme.
New competitive arenas
This option requires a business to think about
opportunities to integrate vertically or consider
whether the skills of the business could be used in
other industries.
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Desired Revenue

Strategic
Planning Gap
Projected
Revenue

38

GAP analysis can be used at a number of levels


of Planning strategic, operational, product
& market.
The resultant gap analysis will enable the bank
to choose between one or two courses of
action:
(a) plan strategies to close the gap, and
(b) redefine the objective so that they produce
the same result as the current projected
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trends.

Changes in the external environment can affect the


desirability of the potential strategies of a bank
due to changes in its relative position in the market.
The changes follow the acronym (LePESTCo):
External Factors
(1) Le Legal
(2) P Political
(3) E Economic
(4) S Social
(5) T Technological
(6) Co Competition

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LEGAL
* Banking Regulations & Laws,
Taxation Laws,
Foreign Exchange Controls,
POLITICAL
Attitude of the Government towards the local
banks, Attitude of the Government towards
foreign banks & non-bank financial institutions.

41

ECONOMIC CONDITIONS
Industry Structure,
Gross Domestic Product (GDP),
National Rate of Inflation & Money Supply,
Foreign Exchange Rates,
Interest Rates, and
Unemployment Levels.

42

SOCIAL & DEMOGRAPHICS


National Birth Rate,
Population Size,
Age Distribution,
Socio-economic Distribution,
Geographic Population Distribution,
Education/Skill Distribution,
Trend in Lifestyle,
Public Opinion & Attitudes towards financial
services
providers, and
Trend in Banking Usage.
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TECHNOLOGY
Development in Integrated Technology,
Changes in Technological Industry,
Levels of Investment Required, and
Customers attitudes towards new technology.
COMPETITION
Existing players in the Market,
New Entrants penetrating the Market,
Pricing of Financial Services/Products,
Marketing Style, and
Consolidation within the Banks.
44

COMPETITOR ANALYSIS
Market share,
Financial position,
Reputation among suppliers and creditors,
Composition of the clientele,
Menu of product/service range,
Strategies for segmentation, key accounts,
Pricing,
Image & service quality standards & performance,
Efficiency of service delivery,
Promotion aspects (e.g. spending, timing & reach),
Technology used for service delivery,
Planning, information & control systems,
Ability to attract qualified personnel,
Training, morale, union relations,
Commitment to research & development, and
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Plan to diversify within, and/or, outside the industry.

A sound marketing plan should also considers


the impact of internal factors such as:
(a) Employees,
(b) Premises,
(c) Systems, and
(d) Financial resources needed to back the plan.

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Employees
Does the bank have adequate qualified employees to handle
the marketing campaign?
Are the employees fully aware of the marketing plan and
their respective responsibilities?
In the event of a shortage of employees will they be
recruited from the banks competitors or given internal
training?
Will the employees be given a marketing target to achieve
within a specific period of time?
Who will be responsible for the overall co-ordination?
Will they be remunerated based on performance?

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Premises
Where will the marketing campaign be executed - Head
Office, or Branch Level?
Are the current premise visible or adequate to promote the
marketing campaign?
Will there be any additional cost to be incurred to make the
premises more user friendly and appealing?
How are the premises styled open plan or closed counters?
Are the premises comparable with the banks competitors?

48

Systems
Are the present systems adequate or robust enough to
handle the marketing campaign?
Are the systems user friendly?
Are the employees fully trained to manage the systems in
place?
Can the systems be replicated by the banks competitors?
Who will be responsible to manage the systems?
Can the systems be tempered with?
Is there a contingency plan in place in the event of a system
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break down?

Financial Resources
Is there a specific budget allocation for the marketing
campaign?
Who will be responsible to manage the budget?
Has adequate provisions made to include cost overrun of
the campaign?
Does the budget time frame match the marketing campaign
period?
Is the marketing campaign costs built into the service costs?
50

Market Characteristics
Assess the market size,
Test for historic growth rate,
Make a projection of the growth rate,
Count the number of accounts in total,
Evaluate the trend in market concentration,
Consider the buying decision process,
Evaluate the service delivery process, and
Assess the characteristics of customers.

51

Service Characteristics
Relative capital intensity,
Work out the degree of service differentiation,
What is the Value Added?
Consider the level and type of risk faced by the bank,
Test the relative profitability of the service,
What are the potential for cross-selling
opportunities?,
The impact of shared-cost structures,
Rate of service change and innovation,
Service integration with other bank services, and
Attitude of customers to new services/products.

52

Environmental Characteristics
Political stance and their impact on the industry,
Impact of new technology and trends,
Impact of social attitudes, and
Economic dynamics and its impact on the
industry.

53

Identify the existing competitors and their market share


(to include non-bank financial institutions),
Evaluate the banks market share towards its competitors,
Consider the impact of changes of competitors,
What is the major trend in the market share?,
Evaluate the degree of competitor concentration in the
market,
Test for relative service price, cost, and marketing effort,
Assess the relative capital intensity,
What is the position regarding entry or exit barriers?,
Work out the relative employee skills required,
Consider the relative resource availability to the bank, and
Assess the systems capability, and
Evaluate the services life cycle of the industry.
54

Life Cycle Position

Demand

STAGES IN THE BANKS SERVICES LIFE CYCLE

Your Banks Position

Embryonic

Growth

Shakeout

Time

Maturity

Decline

55

Porters Five-Forces Model


Threats
of
New Entrants

Bargaining
Power
of Lenders

Competitive
Rivalry

Bargaining
Power
of Customers

Threats of
Substitute
Services
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Source: Adapted from M E Porter, Competitive Strategy (1980)

Porters Generic Strategy Model


COMPETITIVE ADVANTAGE
Lower Cost

C
O
M
P
E
T
I
T
I
V
E
S
C
O
P
E

1.COST
LEADERSHIP

Differentiation

2.
DIFFERENTIATION

Broad
Target

3 (a) COST
FOCUS
Narrow
Target

3 (b)
DIFFERENTIATIO
N FOCUS

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Cost Leadership
This can be achieved through market leadership, or from
economies of scale (e.g. with high sales and aggressive costs
control).

The bank can try to achieve lower costs by means of


encouraging customers to use products in a way that is
cheaper for the bank (e.g. ATMs, SWITCH, DELTA cards).
The bank will also have to promote the benefits such as
convenience to the customers.
Depending on the type of market, cost leadership may be
difficult to maintain in banking, because many services
are broadly similar.
For a small market, diversification for cost leadership
strategy may not be feasible.

58

Differentiation
This is where a bank seeks to be unique in the financial
services sector by producing a product/service, delivery
system or image that is distinctive from its competitors.
Differentiation is only successful if the customers perceive
the difference.
Banks would tend to use marketing slogan such as:
Islamic banking for everyone Bank Muamalat
As you need change we progress with you - SBB
Progressive, professional & friendly - BIMB
Excellence is our commitments - PBB

The major problem with differentiation as a strategy is that


financial services can be easily copied and adapted by
other competitors using slight different wordings.
59

Cost Focus
While the cost leadership and differentiation strategies aim
at a broad target, the focus strategies aim at a narrow target.
The bank would normally select a target market (s) & tailors
its strategy to the specific need of the target market (s).
(e.g. select a quoted MNCs as its target market, and aim to serve them
to the virtual exclusion of other target markets).

The bank can either aim at cost focus or differentiation focus.

Differentiation Focus
This approach can be described as finding a niche in the
market place and developing services that matches the
niche market.
If the target market is too small, the bank may be left with60 a
service menu that is not profitable.

Product

Price

People

Place

Promotion
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Product/Service
This concerned with the features of the bank products, and
any option available to the customer.
(e.g. bank lending would include the term of loans fixed or variable
rate and option to switch from variable to fixed rate or vice versa ).

Place
Where the product or service is being made available to the
customer, or how can the customer obtain the service.
(e.g. branch network, ATMs, Internet banking).

Price
This refers to the interest rates offered to depositors and
borrowers, bank charges, commissions for services.

Promotion
It is concerned with advertising, direct sales, tele-marketing,
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internet, personal visits to the customer.

People
In view of the heavy competition, banks expect their staff to
take a pro-active selling or customer service role.
In fact, bankers are more sales persons these days than two
decade ago.
It requires training or re-training and in many cases a
profound cultural change in the bank as a whole, as people
adjust to new selling roles.
In the marketing of financial services, it is imperative that
the staff (people) takes the centre stage in order to achieve
success.

63

In planning to target the corporate market, a bank would


necessarily have to consider the following factors:
Financial Data
* Sales,
* Gross margin,
* Sales growth rate potential,
* Net margin,
* Trend in the margin for the other banks,
* Sales percentage by the major line of business,
* Stock turnover,
* Debtors ageing trend,
* Creditors facilities,
* Trends in working capital for the corporate,
* Demand for plant & equipment,
* Trends in fixed asset investments,
* Short-term & long-term debts profile,
* Debt maturity schedule,
* Interest rate charged & paid,
* Equity capital injected, and
* Major shareholders.

64

Procedures to Adopt in Targeting Corporate Customers


Market Planning
General Screening
Prospecting
Needs Identification
Strategy Assessment
A/Cs Action Planning
Review

Relationship Dev
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General Business Considerations


Lines of business,
Number of employees,
Market position,
Main brand names,
Subsidiaries (domestic & international),
Production/service sites (no & location), and
Names & position of board and finance officers.

Competitor Analysis
Existing lead bankers,
Other bankers.

Advisors
o Accountants,
o Lawyers,
o Consultants
66

Industry Background Information


Growth Rate (i.e. historic & projected),
Capital Intensity,
R & D investment,
Marketing intensity,
Profitability,
Industry economic trends, &
Industry competitiveness

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Pricing decisions are not only made in relation to new


products, but also in relation to the existing products.
Pricing decisions must be made, taking into account the
banks environment & how the factors constituting the
environment can be controlled.
The factors can be divided into (a) internal & (b) external.

Internal factors
marketing objectives,
marketing mix strategy,
costs involved, and
organization for pricing.

External factors
nature of the market & demand,
competition, and
LePEST

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Once a new product/service has been developed, a bank


will need to decide upon the price to charge, and to test
the acceptability by the target market using market
research approach.
Three of the most important strategies for pricing new
Products/services are as follows:
(1) Skimming Pricing,
(2) Penetration Pricing, and
(3) Perceived Value or Value Pricing.
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Skimming Pricing
This involves setting a high initial price for the product/
service so as to just skim the cream of demand for the
product/service. It is especially suitable for new products
because:
(a) new products are less affected by price until the
competition arrives,
(b) a high initial price many help the product gain an
image of prestige and quality,
(c) a high initial price often produces more revenue in the
early days, thus bringing in funds to finance expansion
into larger markets,
(d) there are sufficient buyers to pay the high price,
(i.e. demand is inelastic), and
(e) a skimming price can be means for testing demand.
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Penetration Pricing
This the opposite of skimming pricing; it sets a low price in
order to capture a large share of the market quickly.
This is a valid policy if one of more of the following
conditions apply:
(1)The intention is to capture a large share in a mass market,
(2) Strong competition will emerge soon after introduction,
(3) When the market appears price sensitive, and
(4) Substantial economies in production, and/or, distribution
costs can be achieved with a large sales volume.
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Perceived Value or Value Pricing


Bank marketers should use this strategy to get beyond the
stage of what does it cost us to deliver this service? to
what is the perceived value (benefit) of this service to the
customer?.
The more tangible and intangible features (including say
Prestige) that can be added to a service, the higher the
value perceived by the customer.
This enables the bank to charge a higher price.

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A bank must consider changing the price of the existing


products/services in certain circumstances.
The strategies may be considered along those lines:
(a) Cost Plus Pricing,
(b) Break-Even Pricing,
(c) Relationship Pricing,
(d) Loss-leader Pricing,
(e) Competitive Pricing,
(f) Pricing for Market Share, and
(g) Differential Pricing.
The marketing committee or team is usually responsible
to feed the strategist or the management team of the
best approach, considering the market circumstances. 73

Cost Plus Pricing Methodology


This approach identifies the basic cost of the product/service
first, then adds a worked out margin to ensure that the
product/service is sold at a profit.
The methodology is practically similar to the sales of tangible
commodities.
For such a strategy to be very productive, it is essential that
the true cost is obtained from the outset before the final
price is determined.
No business wants to operate at a loss, let alone, a bank or
financial institution.

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Break-even Pricing
Such a pricing strategy speaks for itself break-even where
the product/service sold does not realized a profit or loss.
Both the fixed and variable costs are taken into account
when such a price is determined by the management.
One would ask, this is not in line with sound commercial
practice?
This strategy can be used by management to adjust the price
to fit in with expected demand and customer sensitivity
until a price is arrived that fits the target sales and equally
produces the desired profit result.
Unless, this practice is closely monitored by the marketers
and report to the management the bank can loose a lot of75
money within a short period of time.

Relationship Pricing
This is particularly important when a bank is trying to deal
with the corporate clientele and high net worth individuals.
In order to cross-sell other services, other prices may be
adjusted downwards in order to keep the business, while
increasing the profits overall from these customers.
It is an important development that the management of a
bank must be able to track down the trend in the revenue
generation process.
Otherwise, the bank will be placed at a serious disadvantage
which can cost the shareholders very dearly.

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Loss-leader Pricing
The term loss-leader means that you need to sell one
particular product at loss, which is necessarily linked to
other more profitable products/services.
This is not a bad strategy, subject that the marketing team
together with the management team are in control of the
entire campaign.
In the case, a bank would know that it is operating a service
at a loss, but on the other side, it provide the bank with the
opportunity to cross-sell other services.
The loss-leader service would be usually a service that is
not mutually exclusive (i.e. standing on its own).
This strategy resembles buy one item- get one free

77

Competitive Pricing
It is absolutely crucial that when a bank is considering its
marketing plan, which is embodied in the strategic plan,
the various pricing strategies are considered.
Customers normally would base their buying decisions after
considering all the built-in features including the price.
The typical psychological behaviour I will buy it if the
price is right. Financial services marketing is not different
from the other commodities.
If the market is fiercely competitive, then the bank may have
to price its products/services at the price that the market
is expected to bear.
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Pricing for Market Share


Again, any smart management team has to consider the
motive (s) of its pricing policy as a priority rather than simply
put a price on a service.
To apply such a commercial strategy is to engage the banks
resources into a meaningless plan, which can be very costly.
In the case of pricing to gain the market share so as to
operate as a cost leader in the market the marketing team
must be able to tune the whole campaign in line with the
overall corporate philosophy of the bank.
In order to gain the market share, the banks profits will
suffer in the short-term, but grow in the long-term if the
strategy is implemented successfully.
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Differential Pricing
What does differential means? It means to be different!
Different from whom? Externally, different from your
competitors, and internally, different from service-service.
Internally, certain methods of conducting business
transactions are cheaper for the bank & customers.
It encourages customers to move away from voluminous
payment of say salaries by cheques, but by means of
electronic transfer.
It is less expensive for the bank to handle thousands of
salaried payments electronically, than by cheques due
to the time involved.
80

The marketing campaign of banks services has always been


dynamic since de-regulation of the financial services sector
took effect in the 80s.
The competitive pressure by various players in the financial
services sector will not diminished in any form or substance.
Instead, it is expected that as competition intensified from all
fronts, the marketing campaign by banks to retain, let alone,
increase their market share will equally become more
aggressive.
Banks can only retain customers loyalty through the delivery
of service quality combined with risk-based pricing method.
81

Banks must also pay attention to their customers needs.