Financial Services Marketing Essay Example | Topics and Well Written Essays - 2000 words

Financial Services Marketing - Essay Example This research will begin with the statement that the term promotional mix is referred to the combination of various promotional methods that can be adopted by an organization in order to promote the products as well as services in the market. The promotional mix related to products and services is different from the financial promotional mix. The term ‘marketing mix’ is a broad concept in the fields of marketing and the promotional mix is considered as the element of ‘marketing mix’. In today’s marketing environment, the promotional mix is much essential as it communicates to customers about the new products and inspires them to buy. The financial services industry has been facing challenges for several years in marketing fields. Though the market of financial industries is considered as a matured one, however, the industries are facing long-standing downward trend. The financial service organizations use traditional approach of promotion mix and the related tools for marketing the services. As a result, it has a negative impact on their impression of marketing. The promotional tools adopted by financial institutions and banks are inadequately received by customers. The promotion of products in the market is conducted with several objectives. An organizational effectiveness can be increased signifying that sales force can be stimulated. There will be a rise in profits as well as the competitiveness of the organization in the market. The sales revenue will enhance and also the awareness level of the products may increase. Through the promotional methods information can be delivered to the target markets and may help in creating desire among the customers. The promotional tools if applied in an efficient manner may assist to improve the image of the products in consumers’ mind. The premium price will also reduce to certain extent (Jackson, 2010). 1.2 Tools and Factors of Promotional Mix Various promotional tools of promotional mix that are used by a marketer for promoting the products as well as services are advertising, promotion, public relations, sponsorship, personal selling, packaging, exhibitions as well as point of sales. In financial service marketing, these tools are used differently by a marketer (Jackson, 2010). Advertising is a paid format of non-personal communication by the utilization of mass media that involves television, outdoor, radio to reach the target market (Jackson, 2010). The financial organizations use television advertisement for creating awareness of the organization as well as their products in the customers’ mind. The constancy along with reliability of organization also assured the customers through advertisement tool. The financial organizations focus on general or corporate themes instead of product-specific themes. The intangible products are expressed through certain actions and events in order to provide its benefits associated with the desired product. Financial Services Act (1986) has set certain conditions in relation to the advertisement of financial services. The advertisement needs to show about the cause of misuse of the products to the customers (Alajmi, 2011). Personal Selling relates to the ‘interaction between a buyer and a seller’ (Jackson, 2010). It also refers to personal communication with the customers about the products as well as services and therefore encourages them to make purchase decision. Since personal selling is interactive, it acts as a vital tool in financial organization. However, the representatives from the organization can easily communicate with the customers by providing them with potential messages and relevant