Marketing of Financial Services
Marketing of Financial Services
Module I
Introduction
l GROWTH OF SERVICE SECTOR ECONOMY
We are living in a service era
Service sectors account for 70% of employment opportunities
Economies dominated by Service Sector
Rising contribution of service sector to GDP an indicator of development
Amity Business Schoo
Rapid evolution of new services
l DEFINITION
“A service is any act or performance that one can offer to the other. It is essentially intangible
and does not result in the ownership of anything. Its production may or may not be tied to a
physical product”
TYPES OF SERVICES
Products or services
Financial Services as PRODUCTS
Separability–production of many financial products can be separated from their
consumption –checking account, debit cards
Lack of Perishability–unlike a dinner reservation, a credit card will be there when a
customer wants it; its supply can be adjusted as per demand
Mass Production –while many financial services are individualised, others can be mass
produced and mass marketed –insurance policies, data analysis systems
Financial Services as
Services
Financial Products
Every one wants to save some money for future needs and unforeseen circumstances
After saving, the question crops up :
What do I do with the money saved until I need it -where do I
keep it?
Either, one can just keep it at some safe place or invest it to earn and grow
the savings
The instruments of investment of savings form one part of financial
products/ services.
Examples : Bank & Post Office Deposit Accounts, Equity Shares, Debt
Instruments( Bonds/Debentures) Mutual Funds, ULIPs etc..
What do you do, if there is a need to spend, but you don’t have the
money?
Borrow money from someone –take a loan
Loans and financing options form the other part of financial
products/services
Examples: Personal Loans(consumer finance –auto loans, housing
loans,otherEMI based purchases, credit cards etc…)
Business Loans( term loans, cash credit facility, overdrafts etc…)
Banking Products & Services
Deposit Products
o Saving Deposits/Accounts
o Current Deposits/Accounts
o Fixed Deposits
o Recurring Deposits
o Hybrid/Flexi Deposits
General Insurance
o Fire.
o Marine.
o Motor/Accident.
o Health/Medical.
o Liability.
Options/Plans
o Growth/Dividend/Reinvestment
o Systematic Investment.
o Systematic Withdrawal
o Switching
o Gifts