Rapid changes in the environment in which financial services firms operated forced many organizations to develop a much more proactive approach to their marketing efforts.
The diversity and speed of change that has occurred in the financial services sector due to deregulation md technical change have lowered the barriers between different institutional or strategic groups resulting in a redefinition of the market place.
In order for an organization to supply consumers with products or services they expect, marketers to understand the needs and motivations of existing and potential customers as they go about making buying decisions.
There is a set of basic needs that usually a financial consumer may have.
Cash accessibility: Customers need to have frequent access to cash and look to various money transmission tools that cater to these needs such as ATMs, credit cards and cheques as well as telephone banking which enables quick and easy movement of funds.
Asset Security: Consumers need physical security of assets and one of the most basic functions of banks is that of safekeeping. Consumers also need to protect one’s assets from depreciation by earning a return on their money.
Money transfer: This refers to the need to be able to move money around. Technological developments have made this possible and also have reduced reliance on cash.
Deferred Payment: ‘This relates to the need for delaying payment of goods and services at a reasonable cost. The range of credit cards, loans and mortgages cater to this need.
Financial Advice: ‘4s financial products increase in number and complexity, consumers have a greater need for information and advice in order to make appropriate purchase decisions
This knowledge is very crucial to the development of suitable product strategies, whereby a competitive advantage for an organization in its chosen markets is identified, built and maintained.
Archives by Month: