Financial Services Marketing An International Guide to Principles and Practice

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

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.