3rd Edition

Financial Services Marketing An International Guide to Principles and Practice

    612 Pages 113 B/W Illustrations
    by Routledge

    612 Pages 113 B/W Illustrations
    by Routledge

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    Now in its 3rd edition, Financial Services Marketing offers a balanced and useful guide to the topic that is both conceptual and practical. The authors have drawn from  extensive international experience to ensure that this text will resonate with users across the globe.  This edition is complemented by numerous international references, examples and case studies featuring companies such as American Express, Direct Line, Barclays, NatWest RBS, Aviva and HSBC.

    This fully updated and revised edition features:

    • An expanded section on regulation which has international reach and addresses the post-Brexit world
    • Greatly expanded coverage of digital marketing at both the strategic and tactical levels
    • New material on how to improve a company’s trustworthiness and safeguard a culture that is customer-focussed
    • New examples, vignettes and case studies that showcase best practice from around the world
    • B2B and B2C marketing
    • Upgraded PowerPoint support on the companion website

    Financial Services Marketing 3e will be hugely beneficial to academic students of marketing and finance, as well as essential reading to those industry-based and studying for professional qualifications. 

    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

     

    Biography

    Christine Ennew OBE is Professor of Marketing and Provost at the University of Warwick. She has been actively involved in financial services research for most of her academic career. She has published some 100 articles in refereed journals, presented over 60 refereed conference papers and produced 4 books.

     

    Nigel Waite is a Director of 3R Insights, an advisory organisation that helps boards of directors to deliver good outcomes to customers of financial services companies. He is also Honorary Professor of Marketing at Nottingham University Business School.

     

    Róisín Waite is Head of Group Digital at Barclays. Róisín was one of the first to graduate from the UKs first MSc in Digital Marketing Communications.