Maharaja Surajmal Institute Affiliated to GGSIPU Delhi Course Bachelor of Business Administration Subject Module On Marketing of Financial Products Services BBA B I 307 Semester V Credit 4 Module Contributor s Dr Shavita Notes For Educational Purposes Only July 2021 1 SYLLABUS B B A B I 307 MARKETING OF FINANCIAL PRODUCTS AND SERVICES Credits 04 Unit I 14 Hours Marketing of Financial Services A Conceptual Framework Types of Financial Markets in India An Overview Concept of Marketing and Marketing Mix in Banking Unit II 14 Hours Retail Banking Concept Importance Retail Banking Products Housing Loan Conveyance Loan Personal Loan Educational Loan Loan for Retail Traders Plastic Money Types of Saving Accounts and Barter Card Attracting and Retaining bank Customers Unit III 14 Hours Mutual Funds in India and the Marketing Strategies Involved Marketing of Insurance Products Life and Non Life Products Marketing of Pension Funds National Pension Scheme Unit IV 14 Hours Concept of Distribution Multiple Delivery Channels Bancassurance Marketing Information Research in Banking Public Relations and Publicity Image Building Globalization and its Impact on Financial Services 2 CONTENTS Unit No Unit Name I Marketing of Financial Services Lesson1 A Conceptual Frame Work Page No 4 14 Lesson2 Types of Financial Market Capital Stock Bond Lesson 3 Types of Financial Market Money Cash Derivative Lesson 4 Forex OTC Third and Fourth Market Lesson 5 Importance of Financial Services Lesson 6 Marketing 7 P s of Marketing II Retail Banking 15 55 Lesson1 Concept Importance Lesson 2 Retail Banking Products Lesson 3 Housing Loan Lesson 4 Conveyance Loan Lesson 5 Personal Loan Lesson 6 Educational Loan Lesson 7 Loan for Retail Traders Lesson 8 Plastic Money Lesson 9 Types of Saving Accounts Lesson 10 Barter Card Lesson 11 Attracting and Retaining Bank Customers III Mutual Funds in India Marketing Strategies Involved 56 74 IV Concept of Distribution 75 94 Lesson1 Marketing of Life Insurance Products Lesson 2 Marketing of Non Life Insurance Products Lesson 4 Marketing of Pension Funds Lesson 5 National Pension Scheme Lesson1 Multiple Delivery Channels Lesson2 Bancassurance Lesson 3 Marketing Information Research in Banking Lesson 4 Public Relations and Publicity Lesson 5 Image Building Lesson 6 Globalization and its Impact on Financial Services Keywords References and Further Readings Progress Check Multiple Choice Questions with answers Long Answer Questions 94 95 96 115 3 UNIT I Marketing of Financial Services Introduction Nowadays customer is becoming more sophisticated about their choice and quality of service being served to them Throughout the life customers try their best to fulfill their demands The place where things are swapped or say common needs are fulfilled is called the market The efforts to make people aware of your offerings inspiring them to deal with you and let them believe that in doing so they are fulfilling their needs at its best is called marketing After the banking sector improvements marketing has established as a more combined function within financial service Financial institutions as banks have done rapid changes in the operational environment The marketing of bank products has become a very difficult subject as it involves the knowledge of economics sociology psychology and also essential marketing idea In marketing it is the customer who has the personal choice and the intonation of effective marketing of banking products lies in the regular and professional tactic towards fulfilling customer s needs Marketing of Financial Services A Conceptual Framework The forces of deregulation advancing technology and general trend towards globalization have vastly increased the competitive pressures within the financial services market that has in turn affected both the structure and operation of financial service providing firms like banks Banks are providers of financial services financial intermediaries and key participants in a nation s payment system As such banks play a major role in the economy and in the financial well being of a nation In India since 1992 deregulation technology and aggressive competition fostered more changes in the banking industry than it has experienced in its entire history Precisely because of competition providing financial services in an able manner requires an excellent marketing orientation Financial service is part of financial system that provides different types of finance through various credit instruments financial products and services In financial instruments we come across cheques bills promissory notes debt instruments etc In financial products we come across different types of mutual funds Extending various types of investment opportunities In addition there are also 4 products such as credit cards debit cards etc In services we have leasing factoring hire purchase finance etc through which various types of assets can be acquired either for ownership or on lease Thus financial services enable the user to obtain any asset on credit according to his convenience and at a reasonable interest rate Marketing India Banks were traditionally in the business of banking namely borrowing from one market and lending to another However since the commencement of banking sector reforms in the early 1990s their orientation has become the business of financial services with a much wider focus in relation to consumer market needs and consequent marketing strategies Marketing as a narrow management function appears to be in decline Marketing as a management philosophy and orientation espoused and practiced throughout the corporation is however seen increasingly as critical to the success of any organization This is reflected in a heightened emphasis on being close to the customer stressing customer satisfaction and customer relationship building understanding customer value and the enhanced product offering and the brand equity represented in a loyal customer base Increasingly these are the domains and responsibilities of employees throughout the organization whether it is customer service sales manufacturing R D or top management and not just of the marketing staff Jerry Bank Marketing has been defined as that part of management activity which seems to direct the flow of banking services profitably to selected customers Reekie 1972 Marketing of Bank s services implies the delivery maintaining existing demand and creation creating of new demand of want satisfying
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