Marketing of Financial Products Mod 5 1

Marketing of Financial Products

• Understanding customer needs is essential in marketing financial products.

• Tailor strategies to meet the unique requirements of target audiences.

Needs Assessment

Importance of Needs Assessment

• Crucial step in marketing financial products.

• Helps identify target audience's specific needs, preferences, and behaviors.

Steps in Needs Assessment

• Identify Target Audience Characteristics:

  • Consider age, income, financial goals, risk tolerance, and life stages.

• Conduct Market Research:

  • Gather data through surveys, interviews, focus groups, or analytics.

• Analyze Existing Customer Data:

  • Review transaction history and feedback to uncover common needs.

• Identify Financial Needs:

  • Recognize needs such as savings, investments, retirement plans, etc.

• Assess Competition:

  • Analyze competitor offerings to understand market standards.

• Regulatory Compliance:

  • Ensure products meet legal and regulatory standards.

• Customization:

  • Adapt products to meet specific customer needs with variations.

• Pricing Strategy:

  • Align pricing with perceived value and customer budget.

• Communication Strategy:

  • Create messages highlighting how products address customer needs.

• Test and Refine:

  • Launch products and adjust strategies based on feedback.

Buying Cycle

Definition

• The stages a consumer goes through when making a purchasing decision.

Stages of the Buying Cycle

• Awareness Stage:

  • Consumer identifies a need and researches solutions.

• Consideration Stage:

  • Actively evaluates options and gathers information.

• Preference/Intent Stage:

  • Closer to a decision; evaluating deals and factors.

• Purchase Stage:

  • Actual buying decision occurs.

• Post-Purchase Stage:

  • Consumer evaluates satisfaction and may provide feedback.

Importance of Understanding the Buying Cycle

• Recognizes non-linear progression through stages.

• Tailors marketing strategies to each stage for effectiveness.

• Promotes customer retention and referrals post-purchase.

Solution Selling

Overview

• A sales methodology focusing on tailored solutions for customer needs.

Key Concepts of Solution Selling

• Customer-Centric Approach:

  • Understand customer's business and specific challenges.

• Needs Assessment:

  • Active listening and probing to uncover needs.

• Customized Solutions:

  • Tailor offerings to satisfy unique customer requirements.

• Value Proposition:

  • Articulate how solutions solve customer problems and provide ROI.

• Consultative Selling:

  • Act as advisors to build trust and long-term relationships.

• Collaboration:

  • Align sales with internal teams for customer-focused solutions.

• Problem Solving:

  • Visualize solutions using testimonials and case studies.

• Objection Handling:

  • Skilled at addressing customer concerns.

• Continuous Learning:

  • Adapt to changing customer needs over time.

Need-Based Selling

Definition

• A sales approach focused on understanding and addressing individual customer needs.

Principles of Need-Based Selling

• Establish trust rather than push sales.

• Aims for long-term customer relationships and loyalty.

Steps in Need-Based Selling

1. Customer Needs Assessment:

   • Research and prepare to engage with customers.

2. Active Listening:

   • Encourage customers to express their needs.

3. Identification of Needs:

   • Use probing questions to uncover pain points.

4. Customized Solutions:

   • Propose solutions tailored to specific needs.

5. Educating and Demonstrating Value:

   • Provide information and product demonstrations.

6. Overcoming Objections:

   • Address concerns with facts and reassurances.

7. Building Trust:

   • Maintain honesty and transparency throughout.

8. Closing the Sale:

   • Use trial closes to gauge interest before finalizing sales.

9. Post-Sale Service:

   • Provide support and seek feedback for improvement.

CRM (Customer Relationship Management)

Definition

• A strategic approach for managing customer relationships to foster growth.

Objectives of CRM

• Improve satisfaction and increase loyalty.

• Boost revenue through better communication and collaboration.

Benefits of CRM

• Enhanced understanding of customer needs.

• Streamlined processes leading to efficient operations.

Customer Retention

Importance of Customer Retention

• Focused on keeping existing customers satisfied to maintain profitability.

Key Reasons for Customer Retention

• Cost-effectiveness and increased revenue.

• Builds brand loyalty and provides a competitive edge.

E-Marketplaces

Definition

• Online platforms connecting buyers and sellers of financial products.

Benefits of E-Marketplaces

• Accessibility, lower fees, and enhanced customer experience.

Key Account Management (KAM)

Overview

• A strategic method to manage relationships with high-value customers.

Roles of KAM

• Client relationship management and advocacy.

• Develop account strategies and ensure customer satisfaction.

Marketing of Financial Services

Importance

• Building trust and delivering value are paramount for success.

Marketing Model

Components

• Market Research and Analysis:

  • Understand demographics and market trends.

• Customer Segmentation:

  • Tailor strategies for distinct customer segments.

• Branding and Trust Building:

  • Establish a reliable presence in the market.

Marketing Mix (7 Ps)

Components

• Product:

  • Range of financial services tailored to needs.

• Price:

  • Strategic pricing strategies to maintain competitiveness.

• Place:

  • Utilize multiple distribution channels.

• Promotion:

  • Effective communication strategies to build trust.

• People:

  • Train staff for exceptional customer interactions.

• Process:

  • Efficient procedures for service delivery.

• Physical Evidence:

  • Digital and tangible materials promoting trust and professionalism.