Financial services marketing : an international guide to principles and practice

Revised edition of Financial services marketing, 2013.

Contents Acknowledgements Introduction PART I: Context and Strategy Chapter 1: The Role, Contribution and Context of Financial Services 1.1 Introduction 1.2 Economic Development 1.3 Government Welfare Context 1.4 Lifetime Income Smoothing 1.5 The Management of Risk 1.6 Poverty and Financial Exclusion 1.7 Mutual and Proprietary Supply 1.8 Regulation of Financial Services 1.9 A New Philosophy and Approach to Regulation 1.9.1 On the role of financial markets 1.9.2 Three major regulatory challenges 1.9.3 UK regulatory reform - a new regulatory architecture, approach, and philosophy 1.9.4 Regulatory philosophy 1.9.5 European regulatory reforms 1.9.6 Potential impact of Brexit 1.9.7 Future challenges 1.10 Summary and conclusions Case Study 1 Micro-insurance Chapter 2: The Financial Services Marketplace: Structures, Products and Participants 2.1 Introduction 2.2 Some Historical Perspectives 2.3 The Geography of Supply 2.4 Financial Advice 2.6 Banking and Money Transmission 2.7 Lending and Credit 2.8 Saving and Investing 2.9. Life Insurance Products 2.9.1 Life Insurance 2.9.2 Health Insurance 2.9.3 Annuities 2.10 General Insurance 2.11 Summary and conclusions Case Study 2: Police Mutual Assurance Society Limited (Police Mutual) *Chapter 3: Marketing Financial Services: An Overview 3.1 Introduction 3.2 Defining Financial Services *3.3 The Differences Between Goods and Services 3.4 The Distinctive Characteristics of Financial Service 3.4.1 Intangibility *3.4.2 Inseparability 3.4.3 Perishability 3.4.4 Heterogeneity *3.4.5 Fiduciary responsibility 3.4.6 Contingent Consumption 3.4.7 Duration of Consumption 3.5 The Marketing Challenge 3.6 Classifying Services 3.7 Summary and Conclusions Case Study 3: Aktif Bank - Aktif Online Chapter 4: Strategic Development and Marketing Planning Objectives 4.1 Introduction 4.2 Strategic Marketing 4.3 Developing a Strategic Marketing Plan 4.3.2 Situation Analysis 4.3.3 Marketing Objectives 4.3.4 Marketing Strategy 4.3.5 Market Specific Strategy 4.3.6 Implementation 4.4 Tools for Strategy Development *4.4.1 Growth Strategies 4.4.2 Selecting the Product Portfolio 4.4.3 Competitive Advantage 4.5 Summary and Conclusions Case Study 4: Retail banking in China Chapter 5: Analysing the Marketing Environment 5.1 Introduction *5.2 The Marketing Environment 5.3 The Macro-Environment 5.3.1 The Political Environment 5.3.2 The Economic Environment 5.3.3 The Social Environment 5.3.4 The Technological Environment 5.4 The Market Environment 5.5 The Internal Environment 5.5.1 Resources 5.5.2 Competences/capabilities 5.5.3 Auditing the Internal Environment 5.6 Evaluating Developments in the Marketing Environment 5.7 Conclusions Case Study 5: Private Banking in China Chapter 6: Understanding the Financial Services Consumer 6.1 Introduction 6.2 Consumer Choice and Financial Services 6.2.1 Problem Recognition 6.2.2 Information Search 6.2.3 Evaluation of Alternatives 6.2.4 Purchase Decision 6.2.6 Summary 6.3 Consumer Buying Behaviour in Financial Services 6.4 Marketing Responses *6.5 Researching Financial Services Customers 6.5.1 Processes and Outputs 6.5.2 Research for product and service development: 6.5.3 Research for brand and communications: 6.5.4 Stakeholder understanding 6.5.5 Market Understanding 6.5.6 Thought leadership and research for PR 6.5.7 Social Media monitoring 6.5.8 Qualitative and Quantitative methods, techniques and tools 6.5.8 Ethical Issues 6.6 Conclusions Case study 6: Behavioural Economics and the Financial Services Consumer Chapter 7: Segmentation Targeting and Positioning 7.1 Introduction 7.2 The Benefits of Segmentation and Targeting 7.3 Successful Segmentation 7.4 Approaches to Segmenting Consumer Markets 7.4.1 Customer Characteristics: Customer Orientated Segmentation 7.4.2 Customer Needs and Behaviours: Product Orientated Segmentation 7.5 Approaches to Segmenting Business-to-Business Markets 7.6 Segmentation in a Digital World 7.7 Targeting Strategies 7.7.1 Undifferentiated Targeting 7.7.2 Differentiated Targeting 7.7.3 Focused Segmentation 7.7.4 Customised Targeting 7.8 Positioning Products and Organisations 7.8.1 Perceptual Mapping 7.9 Repositioning 7.10 Summary and Conclusions Case Study 7: Entrepreneurial Spark powered by Natwest Chapter 8: Internationalisation Strategies for Financial Services 8.1 Introduction 8.2 Internationalisation and the Characteristics of Financial Services 8.3 The Drivers of Internationalisation 8.3.1 Firm-Specific Drivers of Internationalisation 8.3.2 Macro level Drivers of Internationalisation 8.3.2 The Extent of Internationalisation in Financial Services Sector 8.4 Globalisation Strategies 8.4.1 International Strategies 8.4.2 Global Strategies 8.4.3 Multi-Domestic Strategies 8.4.4 Trans-National Strategies 8.5 Strategy Selection and Implementation 8.5.1 Which markets to enter 8.5.1 Method of market entry 8.5.1 How to market in international markets 8.6 Summary and conclusions Case Study 8: Prudential Part II Chapter 9: Customer Acquisition and the Marketing Mix 9.1 Introduction 9.2 Short Term Marketing Planning 9.3 The Role of the Financial Services Marketing Mix 9.4 The Financial Services Marketing Mix: Key Issues 9.4.1 Process 9.4.2 Physical Evidence 9.4.3 People 9.5 Customer Acquisition and the Financial Services Marketing Mix 9.6 Digital Marketing and Customer Acquisition 9.6.1 Context and Convenience 9.6.2 Segmentation and Targeting 9.6.3 Managing the Process 9.6.4 Migrants, Natives and Social Media 9.6.5 Integrating On and Off-Line 9.6.6 Digital organisational structure 9.7 Customer Acquisition and Ethical Behaviour 9.8 Summary and Conclusions Case study 9: CIC Insurance, Kenya - A marketing Mix for Micro Insurance Chapter 10: Product and Consumer needs 10.1 Introduction 10.2 The Concept of the Service Product 10.2.1 What Customers Want 10.2.2 What organisations can provide 10.3 Islamic Financial Instruments 10.4 Influences on Product Management 10.5 Managing Existing Product Lines 10.5.1 Product Attributes 10.5.2 Product Modification/Product Development 10.6 New Product Development 10.6.1 Major innovations: 10.7 Conclusions Case Study 10: What is a bond Chapter 11 Communication and Promotion 11.1 Introduction 11.2 Principles of Communication 11.3 Planning a Promotional Campaign 11.3.1 Stages in Communications Planning 11.3.2 Integrated Marketing Communications 11.4 Forms of Communication 11.4.1 Advertising 11.4.2 Personal Selling 11.4.3 Publicity/Public Relations 11.4.4 Sales Promotion 11.4.5 Direct Marketing 11.5 The digital effect 11.6. Summary and Conclusions Case Study 11: Direct Line Insurance Chapter 12: Price and Cost to the Consumer 12.1 Introduction 12.2 The Role and Characteristics of Price 12.3 The Challenges of Pricing for Providers of Financial Services 12.4 Methods Used for Determining Price 12.1.1 Cost-Based Pricing 12.4.2 Competition-Based Pricing 12.4.3 Marketing-oriented Pricing 12.5 Price Differentiation and Preferred Lives 12.6 Price Determination 12.7 Pricing Strategy and Promotional Pricing 12.8 Impact of digital marketing on charges and pricing 12.9 Summary and Conclusions Case Study 12: Co-op Insurance: Using technology to deliver lower premiums to young drivers Chapter 13: Consumer Convenience and Distribution 13.1 Introduction 13.2 Channels of Distribution: Distinguishing Features 13.3 Distribution Methods and Models 13.3.1 Direct versus Indirect Distribution 13.3.1 Whether Products are Bought or Sold 13.4 Distribution Channels 13.5 Summary and Conclusions Case Study 13 The Aviva Financial Adviser Academy Chapter 14: Customer Relationship Management: Principles and Practice 14.1 Introduction 14.2 Drivers of Change 14.3 Customer Persistency - Acquire the Right Customers Acquisition process characteristics 14.4 Retaining the Right Customers 14.5 Customer Retention Strategies Advocate 14.7 Lifetime Customer Value 14.8 Digital Marketing and its Impact on CRM 14.8.1 Context 14.8.2 Customer Data Management and Analytics 14.8.3 Integrating On and Off-line for Effective CRM 14.8.4 Personalisation 14.8.5 Social CRM 14.8.6 Digital tools - CRM systems 14.8.7 Data Privacy and Cookies 14.9 Relationship Marketing in Specific Contexts 14.9.1 Relationship Marketing and the Role of Intermediaries 14.9.2 Relationship Marketing: Some International Perspectives 14.10 Summary and Conclusions Case 14: The American Express International Loyalty Programme Chapter 15: Service Delivery and Service Quality 15.1 Introduction 15.3 The Service Profit Chain 15.3 Defining Service Quality 15.4 Models of Service Quality 15.4.1 The Nordic Perspective on Service Quality 15.4.2 The North American Perspective on Service Quality 15.4.3 Integrating the Nordic and the North American Perspectives 15.5 The Gap Model of Service Quality. 15.6 The Outcomes of Service Quality 15.7 Service Failure and Recovery 15.8 Summary and Conclusions Case Study 15: Nationwide Building Society - Nationwide/KPMG Nunwood Service Tracker Chapter 16: Satisfaction, Value, Trust and Fairness in Customer Relationships 16.1 Introduction 16.2 Consumer Evaluations: Value and Satisfaction 16.2.1 Customer Value 16.2.2 Customer Satisfaction 16.3 Managing Customer Expectations 16.4 The Measurement of Satisfaction 16.4.1 Customer Satisfaction 16.4.2 Employee Satisfaction 16.5 Consumer Trust 16.5.1 The Meaning of Trust *16.5.2 Measuring Trust: The Trust Index 16.5.3 Trustworthiness 16.5.4 How Trust is Won, Retained and Lost 16.5.5 Trust in a digital world 16.6 Treating Customers Fairly 16.7 Summary and Conclusions Case Study 16: NTUC Income: the Orange Revolution Chapter 17: Marketing: Culture, Challenges and Social Responsibility 17.1 Introduction 17.2 People and Culture 17.3 Product Considerations 17.4 Pricing and Value 17.5 Advertising and Promotion 17.6 Distribution and Access 17.7 Processes 17.8 Evaluating Marketing Performance 17.9 Corporate Social Responsibility (CSR) 17.10 Towards a Sustainable Future 17.11 Summary and Conclusions Case Study 17: Consumer Perceptions of CEOs and Directors of Financial Services Companies