BAC 413: Marketing Financial Services Notes and Course Outline

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COURSE OBJECTIVES

The marketing of financial services requires a unique form of marketing that has distinctive elements. We will explore the strategies and tactics needed to cope with the ever changing business environment in financial markets.

Upon successful completion of this course, students should be able to complete the following tasks:

• Describe the challenges of marketing financial services
• Appreciate the dynamics of the consumer purchase-decision process
• Analyze and segment targeted business and consumer markets
• Establish effective pricing disciplines
• Create effective marketing plans that stimulate sales of various financial products & services
• Measure and analyze customer satisfaction and loyalty
• Recognize elements of success and failure in financial services advertising

Course Outline

  • Introduction
    • Introduction to marketing of financial services
    • Definition
    • Customer-centric marketing
    • Product-centric approach
    • Service-dominant logic view of marketing.
  • Nature of Financial Products:
    • Categories of Financial Services/Products
    • Distinctive characteristics of financial services
    • Needs of Financial Services Consumer
  • Consumer Behavior
    • Consumer Decision Process in Financial Services
    • The three-stage model of service consumption
    • Engel-Kollat-Blackwell model
    • Consumer behaviour matrix
  • Components of Financial Services Marketing Mix
    • 8-P
    • Product Element
    • Place and time
    • Promotion and education
    • Price and user costs
    • Physical evidence
    • Productivity and quality
  • Pricing and Value in Financial Services
    • Pricing Tripod
    • Pricing Objectives
    • Challenges in pricing financial services
    • Pricing strategy for financial services
    • Approaches to pricing
      • Cost-Based Pricing
      • Competition-Based Pricing
      • Value-Based Pricing
      • Parity Pricing
  • Financial Services Quality
    • SERQUAL
    • Customer Relationship Management
  • Technology-Driven Delivery Channels for Financial Services
    • Banking
    • Insurance
  • Promotional Strategy
    1. Advertising
      • Unique aspects of advertising in financial services
      • Success factors in financial services advertising
    2. Sales Promotion methods financial services
    3. Personal Selling,
    4. Public Relations for financial services

Suggested References

1. Bank Management & Financial Services, Rose/ Gudgins, McGraw- Hill, 2009
2. Marketing Financial Services, 2nd edition, Jillian Farquhar and Arthur Meidan, 2007 Macmillan Publishers Limited.

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