CONTENTS
Pg No
Introduction
2
FINANCIAL SERVICE
3
Needs of Financial Financial Services
5
Features of Financial Services
6
Promotion
7
Bank marketing and the marketing concept
8
Developing a Marketing Strategy
9
Marketing - Promotion Strategy
12
Objectives of promotional strategy
22
External factors influencing the choice of promotion strategy
24
Merchant bank financial services and the need for marketing
27
Marketing Techniques in Banking
34
Challenges of Bank marketing
37
Future Opportunities Opportunities
38
Conclusion
39
ICICI Bank
40
BIBILOGRAPHY
51
Introduction In an era of such rapid change, the environment in which financial services providers operate has forced many firms to develop a much more proactive approach to marketing and promotion. Within this report, Mintel identifies and examines the key issues confronting those involved in promoting financial services. Furthermore, in recognizing that consumers have disparate financial requirements often based upon age, life stage, wealth, financial education and risk profile. Report examines consumer behaviour when purchasing financial products and services. Such an understanding is critical when developing both effective and targeted promotional strategies. In recent years, traditional financial services providers have come under increasing pressure from the wider business environment. Political, economic, social and technological changes have both facilitated and forced change within the financial services industry. While, by definition, such factors will largely be out of the control of the businesses themselves, future success or failure will depend largely upon how well the management of financial services providers are able to anticipate and react to such influences. People from low-income groups live in high-risk and unpredictable environment, making access to financial services vital for their sustenance. Dealing with life cycle events, emergencies and planning for future are some aspects in which financial intervention can help. A large part of this financially under-served segment resides in rural India. Integration of rural India into economic mainstream will boost rural household incomes and have a multiplier effect on the demand for goods and services across the economy while promoting financial inclusion. However, considering the sheer size of the population and the geographic spread, neither the existing bank branch based b ased infrastructure nor the standard financial products are optimal o ptimal to meet the financial needs of the rural populace. Seasonality in income, coupled with dependence on weather, necessitates creation of financial products that mitigate such risks. At the same time, traceable credit histories need to be built that will help in designing products that meet needs such as housing, health, education, child care etc. Further, varying financial needs of different customer segments viz. manual laborers, farmers, traders, and rural entrepreneur‟s calls entrepreneur‟s calls for customized financial products.
An analysis of current promotional strategies and particular emphasis is placed upon market penetration and defensive marketing activity. Looking beyond the traditional marketing mix, this
report also investigates how promotional strategy has evolved in recent years. We analyses what impact developments such as Internet technologies are having on traditional markets and how marketing and promotion has had to adapt to meet these new challenges. We also examine how providers are maximizing the use of data-mining tools to develop more accurate promotional strategies.
FINANCIAL SERVICE Meaning: Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, accountancy companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.
Definition: Services and products provided to consumers and businesses by financial institutions such as banks, insurance companies, brokerage firms, consumer finance companies, and investment companies all of which comprise the financial services industry.
What Does a Financial Services Company Do? A financial services company is a business or company which manages, invests, exchanges, or holds money on behalf of clients. Many types of companies can be considered to be in financial services, including banks, insurance companies, and asset management firms, among others. As money and finance become ever more complex, there are an increasing number of activities and enterprises a financial services company can be engaged in. The largest business in the world, in terms of the amount of money that changes hands, is insurance. It is also one of the oldest businesses. Insurance is considered a financial service because it protects against the loss of money or property, and because insurance companies themselves often are involved very heavily in investment.
