Marketing of Financial Products & Services - Consumer Behaviour
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This document discusses consumer behavior and marketing of financial products. It describes how consumer behavior involves when, why, how, and where people buy products and services. It outlines different types of customers like retail and corporate. Retail customers expect awareness, knowledge and a faithful relationship while corporate customers expect personalized services and long term financial support. Customer behavior is influenced by cultural, social, personal and psychological factors. Theories of consumer behavior are discussed like Maslow's hierarchy of needs and Pavlov's dog experiment. The diffusion process of adopting new products and ideas is explained. Challenges in marketing financial products include identifying changing customer expectations and increasing competition.
Marketing of Financial Products & Services - Consumer Behaviour
- 1. 1 Marketing of Financial Products Lecture - 2 Parveen Sharma 1 MoFP for TKW’s
- 2. 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. 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. NN Consumer Behaviour MoFP for TKW’s
- 4. 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. NN Type of Customers MoFP for TKW’s
- 5. MoFP for TKW’s NN 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
- 6. MoFP for TKW’s NN 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
- 7. MoFP for TKW’s NN 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
- 8. MoFP for TKW’s NN 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
- 9. MoFP for TKW’s NN 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
- 10. NN 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
- 11. NN 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
- 12. MoFP for TKW’s NN 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. 13 NN 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. 14 NN 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. Awareness Create Awareness Evaluation Evaluation of scheme by customers/prospects Trail Authentication of scheme narrated Adoption Being satisfied by motivational art and campaign of FI
- 15. 15 NN 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
- 16. 16 MoFP for TKW’s NN ? ueriesQ 16 Contact me @ +91-9050050288 or Email to parveen_72@yahoo.in
- 17. 17 NN Term for the Lecture 17 MoFP for TKW’s Islamic Banking & Financial Products