Thursday, May 9, 2019

Marketing Financial Services Case Study Example | Topics and Well Written Essays - 1250 words

market Financial Services - Case Study ExampleMarketing is defined as managing profitable customer relationships (Kotler Armstrong 28). Marketing is a way of approaching business, non simply a function that deals with sales and promotional material. Most industry sectors adopted a marketing mindset in the middle of the last century, still for financial operate, it was not until government regulations were relaxed that banks found they needed to use marketing to win new customers and control existing ones. The market in financial services is dominated by several large organisations, more or less specialising in specific financial products, such as pensions and life assurance, while another(prenominal)s provide a abounding range of products, being a one-stop shop for a customers financial needs.Financial services argon broadly divided into sell and commercial activities. The retail area is further divided into in-person and business, with products in each specifically for t hose customers. Many of the commercial activities are not marketed heavily as they are extremely specialised. They would fall within business-to-business marketing, as would marketing activities directed at business customers within the retail area.Banking is an unusual activity in that it requires customers to deposit the raw material required to do business money. What the banks do is limited by how much they hold on behalf of customers (savings and credit balances), compared with the amount they make available to other customers (through lending) and the relative risk associated with the funds held. Legislation also requires that banks maintain a specific ratio of working capital assets available at all times.Financial institutions have to manage risk associated with default overdrafts or loans not being repaid. This is usually reflected in the price of the produce the margin or interest rate charged. The high the risk, the higher the rate charged. In some cases, banks will n ot permit overdrafts or provide

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