Communication in the Marketing of Financial Services - Essay Example

?Reflective Self-Analytical Assignment The study of financial services marketing has significantly helped me to gain information that I was totally unaware of. Such learning has enabled me to develop and garnish my skills. In addition, learning of financial services marketing has provided me with an opportunity to open up my thinking process which would eventually help me in the forthcoming years. Some of the key concepts that I have learnt from reading and studying of financial services marketing are as follows; Financial Services Before studying about the financial services marketing, I had a perception that financial institutions are just limited to banks and insurance companies. But as I learnt more about the financial services organizations, I was able to figure out that the perception that I had regarding such institution was just a mere image. I was able to learn that financial institutions are not just limited to banks but include a variety of players in the market. Some of the most prominent financial services organizations that I was able to figure out includes banks (retail, corporate, investment and private); mutual funds and trusts; credit card issuers; stock exchanges; leasing companies and government and saving institutions. Thus it is one of the most important learning outcomes from this course. Communication in the Marketing of Financial Services Before study about the financial services marketing, I considered communication the least important aspect in financial services marketing. But with constant and continuous study I have made, it has made me realize that communication in the marketing of financial services is regarded as the backbone of financial services. As communication is the interchange of information between two parties, I was able to learn that financial institutions heavily rely on the use of marketing communication i.e. advertisement, public relations and direct mail. With the help of such communication, the financial services aim to attract and influence the consumers towards the use of financial services. Such study has also helped me to understand that communication not only helps the financial services to attract customers but it also helps the organization to change their perception in the minds of the consumer. Moreover, I was able to identify that financial services are intangible due to which these services are often complex and quite risky but with the help of marketing communication, financial organizations significantly reduce the risks associated with the services and helps the organization to de-complex the products and services offered by the organization. I was also able to identify that financial organizations have shifted marketing communication to whole new level and media. Due to the increase in customer traffic on social websites (i.e. Facebook and Twitter) financial organization have shifted their focus from traditional media to such media where the customer traffic is ten times higher. Marketing Mix and Financial Services I was well aware of the 4P’s of marketing but the study of financial services marketing; I was able to extract the services mix that plays significant role in the success of financial services organizations. In addition to 4P’s (i.e. product, price, place and promotion) the services mix includes process, people and physical evidence which are the other 3Ps of service marketing mix. I was able to identify that marketing mix plays significant role in financial services and with the help of such mix, banks are able to accept deposits and lend money to the customers. But in order to effectively do that financial institutions are constantly in need to understand the desires of the customers through which their trust could be won. This is where financial institutions rely on services mix. With continuous learning of financial services marketing, I was able to figure out that product mix helps the financial institutions to differentiate them from others in the market. The products offered by such institutions are core and augmented which eventually helps the institution to gain importance in the market. The core offerings of such financial institution includes saving accounts and loans whereas, the augmented offering of such institution includes internet banking, ATM’s etc. On the other hand, I was able to understand that pricing mix also plays an essential role in the attraction of customers. The study of marketing of financial services has allowed me to understand that interest rates provide the banks with revenues and profits due to which banks and other financial institutions pay high importance on setting of such rates. Moreover, I was able to evaluate that in order to promote the services offered by the financial institutions, heavy focus is given on personal selling, advertisement and publicity. One of the examples of such promotion is of Barclays Bank that promotes itself as forward thinking bank. This promotion of the banks allows it to be different from others in the market. The study of marketing of financial services has allowed me to understand that financial services organization uses placement strategy that includes internet banking, ATM’s and several branches to attract customers to utilize the services offered by such organizations. Despite the use of marketing mix, financial organizations also focuses on services mix. Customer relationship management is provided with the core importance in banks as it helps the organization to attract and retain customers for long-term. In addition, I was also able to understand that bank staffs and call centre staff also help the financial organizations to attract and retain customers. The banks and other financial institutions have formulated proper customer relationship departments that not only are involved in finding new customers but they try very hard in order to make sure that the existing customers of the company are satisfied with the services. Moreover, these departments at times do conduct survey and the top management at times asks people from this department to share their feedback whenever it comes to analyzing the customer satisfaction level of the bank or the financial institutions. The process of such institution focuses highly on efficiency and effectiveness and ensuring customer satisfaction. In order to do so, the financial institutions have introduced online banking that provides the customers with an opportunity to access their accounts via internet. Physical evidence is the last element of service mix. In order to lure the customers to use the services offered by banks, the financial institutions focuses highly on the layout of the branches which helps the organization to create its image in the mind of the customers. Strategic Marketing After study about the financial services marketing, I was also able to understand the role of strategic marketing in financial services organization. I was able to understand that with the help and use of strategic marketing, organizations are provided with an opportunity to create capabilities that could help the organization to adapt the changing environment and could alter their marketing practices to match the environment effectively. I was also able to evaluate that financial institutions meet the needs of its stakeholders with the help of strategic marketing. With strategic marketing at work, financial institutions ensure that their value would be far greater than the competitors in the market. In addition, I was able to evaluate the three broad categories of marketing strategies that are continuously used by financial institutions. These strategies include offensive, defensive and rationalization. Offensive strategies provide the organization with an opportunity to expand in both domestic and international markets. On the other hand, protection strategies allow the financial institution to reduce their risks by following either market follower strategy or niche strategy. Lastly, I was able to understand that with rationalization strategies financial institutions are able to reduce their cost to great extent i.e. by following cost reduction strategies which includes closure of branches and staff cuts. Corporate Social Responsibility The concept of corporate social responsibility has significantly helped me to change my perception regarding financial institutions and provided me with an opportunity to open my thinking process. Before the study of financial services marketing, I had a perception that only FMCG organizations focuses on corporate social responsibility but after studying about financial services marketing, I have realized that financial institutions are also playing an integral part in providing the community with benefits. The study of financial services marketing provided me with an opportunity to evaluate the financial institutions and their measures towards the community. I was astonished to learn that financial institutions also work towards the protection of environment and most of such organizations aim to eliminate the concept of deforestation. In addition, I was also able to learn that such institutions provide its employees with good working environment and are equal employers. This indicates that such institutions provide employment opportunity to minorities along with other diversified people. These institutions also focus on equal employment opportunity. Moreover, I learnt that the working environment in such organizations embraces diversity and eliminates the concept of discrimination. Enhancing Future Employability The learning of such relevant and important skills could help me to eliminate flaws and could provide me with an opportunity to enhance my future employability skills. Some of the skills that I learnt which could help me enhance my future employability are as follows; Constantly Focus on Customers Relationship Management The foremost skill that I have learnt from my research regarding financial services marketing is that focus primarily in the customers rather than the accomplishment of personal goals. I learnt that personal goals could be accomplished in the later years of career but if the business let go a customer, it would create negative impact on the business. In order to be effective, it is essential to consider the customers with importance that could positively influence the customers to become a member of the business. With the development of such skill individuals and organizations can reach the height of success it once desired and could effectively accomplish the desired goals and objectives. Embrace Diversity Embracing diversity in today’s world is the skill that every organization and individual must consider as a priority. Embracing diversity provides the individual with an opportunity to learn and understand others in the workplace. In addition, it has been noted that individuals that consider this skill to be least important are constantly suffering in today’s constantly changing environment. With such skills, I would surely be able to understand others working in the same environment and would provide me with an opportunity to enhance my skills further and to great extent. Be Adaptable Being adaptable is one of the skills that could help me enhance my future employability. The working environment of organizations is constantly changing due to which employees suffer a lot. By being adaptable would provide me with an opportunity to accept change rather than resist it as much of employees do in the organization. In addition, such skills would allow me to motivate myself which will eventually lead me to enhance my productivity and performance in forthcoming years. Thinking Creatively and Innovatively With the study of such institutions, I have learnt that to be successful in life it is essential to think outside the box. Such skills would not only assure my success in life but would provide me with several opportunities to further enhance my future employability. Thinking creatively and innovatively provided Bill Gates and other with opportunities to pursue their goals and objectives and could help me pursue mine in my field of interest. Have the Can-Do Attitude Having positive attitude towards work is another skill that I learnt from my reading. By constantly focusing on the work would help me to create such attitude towards my work. This would eventually help me to change my perception and behavior towards work. By doing so, I would be able to complete my work effectively and would accept challenges. Having the can-do attitude has changed the life of many reputable persons worldwide and by focusing all my energy towards such attitude would allow me to do the same. Enhanced Analytical Skills Enhance analytical skills would significantly help me to enhance my future employability. With the study of financial services marketing, I was able to enhance my analytical skills to great extent. Constant and thorough learning provided me with an opportunity to find information from large volumes of data. In addition, I could deal with problems more effectively and could handle problem before it becomes a major problem. conclusion Studying about the financial services marketing has been a great experience for me. I have learnt a number of things and I could have only been able to present a small summary in this report. I plan to use this information in future and it will definitely help me in building a better career. Read More