MARKETING MIX OF

FINANCIAL SERVICES
FINANCIAL SERVICE
A services is an activity or series of activities which take place in interactions with a
contact person or a physical machine and which provides consumer satisfaction.
Services that are offered by financial companies are called financial services.
Fourth element of financial system.
MARKETING MIX
Marketing professionals and specialist use many tactics to attract and retain their
customers. These activities comprise of different concepts, the most important one
being the marketing mix.
 There are two concepts for marketing mix: 4P and 7P.
Marketing of services essentially require the application of 7p’s as against the
conventional 4p’s of marketing.
 The concept of 4Ps has been long used for the product industry while the latter has
emerged as a successful proposition for the services industry.
PRODUCT
A product is a good or a service which offers a basic set of features
representing its ability to satisfy certain basic needs.
The product offerings of banks generally includes;
current accounts, savings, loans, Card services ,financial
services….
 Increasingly,the banks are being driven by a combination of internal
and external forces to develop and offer new products and services.
SERVICE PRODICT LEVEL
PRODUCT LEVEI RESTAURANT BANK
GENERAL The basic benefit Serving space, food, Bank space, loanable
kitchen, staff funds, safety of
deposits
EXPECTED The expected benefit Cleanliness, timely Correct transaction
service, polite and recording, timely
courteous behaviour, service, minimum
menu availability, courtesy
pleasant atmosphere.
AGUMENTED In addition to Sparkling floors, Friendly employees,
expected benefit ambience, smiling quicker service than
employees, music of normal, relationship
choice, courtesy. orientation
POTENTIAL Beyond the usual, Welcome flowers, Occasional greetings
pleasant surprise manager’s word of at home, readiness to
thanks go out of the way to
satisfy the individual
customer.
PLACE
It refers to the place where the customers can buy the product and
how the product reaches out to that place.
A place is a distribution element of service marketing mix , is
concerned chiefly with two main issues: accessibility and
availability.
The concept of place in banking world is essentially the
distribution systems through which the financial services are
delivered to the customers.
PRICING
Banks have not, until recently, viewed price as a major
element of marketing strategy because of government
regulation with respect to price.
Pricing for banks take a number of forms,
 Services charges for different types of transactions
 Interest rate.
 Fees for services, fixed or on a commission basis
PROMOTION
It includes the various ways of communicating to the customers of what the
company has to offer.
There are several objectives of bank’s promotional activities viz.. to build
image and reputation, to differentiate among competitors, to generate interest and
knowledge and to attract new customers…
Promotional mix includes
 Advertising
 Personal selling
 Sales promotion
 Public relations
 Direct mail
PEOPLE
People refer to the customers, employees, management and everybody else involved in
it. It is essential for everyone to realize that the reputation of the brand that you are
involved with is in the people's hands.
It refers to all those persons concerned with supplying the services to the customers
PHYSICAL EVIDENCE
It refers to the experience of using a product or service. When a service goes out to the
customer, it is essential that you help him see what he is buying or not.
It is generally recognized that physical evidence can be subdivided into two
components.
 Peripheral evidence
 Essential evidence
PROCESS
It refers to the methods and process of providing a service and is hence essential to
have a thorough knowledge on whether the services are helpful to the customers, if they
are provided in time, if the customers are informed in hand about the services and many
such things.
It includes certain business policies.
The emphasis on process arises from several sources.