marketing of financial products & services - consumer behaviour
DESCRIPTION
Marketing of Financial Products & Services - Consumer BehaviourTRANSCRIPT
1
Marketing of
Financial
Products
Lecture - 2 Parveen Sharma
1
MoFP for
TKW’s
2
Contents
Consumer Behaviour
Type of Customers
Profile of Retail vs Corporate Customer
Behaviour Influences
Customer Behaviour Theories
Diffusion Process
Challenges
MoFP for
TKW’s
2
3
Consumer Behavior is the study of when, why, how and where people
do or do not buy products and services.
Consumer Behavior is much more than buying things: it also
embraces the study about how having (or not having) things affect our
lives, and how our possessions influence the way we feel about
ourselves and about each other – our state of being.
N
N
Consumer Behaviour
MoFP for
TKW’s
4
Retail Customers
Institutional Customers
Prospects
The difference between two is not only the purchasing/investment power
but also the type of financial instruments they invests in.
N
N
Type of Customers
MoFP for
TKW’s
MoFP for
TKW’s
N
N
Profile of Retail vs Corporate Customer
5
Corporate Customer: Expect…
Smooth operation
Time honoured financial support on liberal terms
Personalized services
Retail Customer: Expectations…
governed by emerging trends in income
governed by emerging trends in consumerism
for awareness & knowledge
for faithful relationship
MoFP for
TKW’s
N
N
Behavioural Influences
6
Cultural Factors
Social Factors
Personal Factors
Psychological Factors
• Culture
– Forms a customers wants and
behavior
• Subculture
– Found within culture; Groups with
shared value systems
• Social class
– Groups having same social,
economic, or educational status in
society and with shared value
systems
India’s & Specially South India’s Gold love culture
successfully targeted by Reliance Gold Saving Scheme
MoFP for
TKW’s
N
N
Behavioural Influences
7
Cultural Factors
Social Factors
Personal Factors
Psychological Factors
• Family &
• Family life cycle
• Purchase decision
• Opinion leaders
• Social class
People need different insurance products at
different life stages
MoFP for
TKW’s
N
N
Behavioural Influences
8
Cultural Factors
Social Factors
Personal Factors
Psychological Factors
• Age group
• Life style
• Occupation
• Role model
• Economic circumstances
SBI marketing campaign
for salaried persons for
Tax Saving Investments
MoFP for
TKW’s
N
N
Behavioural Influences
9
Cultural Factors
Social Factors
Personal Factors
Psychological Factors
• Motivation
• Perception
• Learning
• Attitude
Worthington National, a small Texas bank, capitalized
on people’s bad attitudes toward big banks that
accepted bailouts from the government in 2008–2009
N
N
Customer Behaviour Theories
10
Hierarchy of Needs by Maslow
MoFP for
TKW’s
Self Actualization
Esteem Needs
(Self Esteem, Status, Recognition)
Social Needs(Belonging & Love)
Safety Needs(Freedom from worry)
Basic Needs
You connect best with prospective customers if you appeal to
their needs in a relevant, meaningful way
Post default of some debt paper the campaign
by Mirae Asset Mutual Fund which highlighted
Safety
N
N
Customer Behaviour Theories
11
Pavlov dog experiment
MoFP for
TKW’s
Offering a Cadbury 5 Star to investors for 5 Star
rating of funds
Application
MoFP for
TKW’s
N
N
Consumer Behaviour Across Globe
12
Every market is different in several aspects, hence FI’s need to study
each market and consumer group very well so as to adjust their products
and marketing plans.
E.g.
In some countries it is improper to invest in companies engaged in smoking
products, wine and lending on high interest.
Shaking your head from side by side means ‘no’ in most countries but means
‘yes’ in Bulgaria.
In Italy and some countries it is improper to for a door to door sales person to call
on a woman if she is home alone.
13
N
N
13 MoFP for
TKW’s
Diffusion Process
Time of Adoption for a product by different customers is not
identical
Diffusion is the process by which a new idea or new product is accepted
by the market
14
N
N
14 MoFP for
TKW’s
Adoption Process
It is not only sufficient that we launch a new scheme rather it is much
more impact generating that customers adopt the same at earliest and
diffusion process is fast.
Aw
are
ne
ss Create Awareness
Eva
lua
tio
n Evaluation of scheme
by customers/prospects
Tra
il Authentication of scheme narrated
Ad
op
tio
n
Being satisfied by
motivational art and
campaign of FI
15
N
N
Challenges Ahead
15 MoFP for
TKW’s
Identification of changing expectation of customer
Mounting intensity of competition
Multi-dimensional development in business environment
Benchmarking of Indian service delivery standards to global
Product and service innovation
Increasing level of attention to anywhere & anytime services
Increasing focus on Peripheral services
Adoption of technology
17
N
N
Term for the Lecture
17 MoFP for
TKW’s
Islamic Banking & Financial Products
18
Thank
You MoFP for
TKW’s
18