Chapter 9 : Marketing of Banking and Financial Services

Product Design, Development and Market Mix

Financial Services and System

Sasidharan & Mathews

Product Strategies
Product Mix Strategies
Product Expansion

Product Contraction
Product Modification Product Repositioning

Trading up or Trading Down

Product Life Cycle Strategies

Introduction

Growth
Maturity Decline
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Product Life Cycle

Introduction

Growth

Maturity

Decline

Returns 0

Time

New Product Development Process

Exploration & Idea Generation
GO NO

Concept Testing
GO NO

Product Testing
GO NO

Pre-Test Market/ Evaluation

GO NO

Testing/ Test Marketing

GO NO
Modify Enhance Reposition

Implementation
NO

Profit

Test Marketing
Testing the product in the target segment among a

sample group
To know the acceptability of the product To find out deficiencies To estimate the market demand To decide the positioning strategies

To decide the promotion strategies

To decide promotion strategies
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Marketing Mix
Product
Fitness to use Fitness to cost Fitness to latent requirements Fitness to standards

Pricing Promotion

Place
Public Image
6

Public Image
Negative Perception of Image A Polluter Unfriendly Junky Low quality Poor servicing I just dont like their attitudes I dont trust them Not a sharp operation Inefficient Not on top of things

Not a good neighbour

Careless Stodgy Always understaffed Insulting advertising A dirty store Distant

Fading in their industry

Too demanding Bound up in red tape Second rate

Public Image
Neutral and Undistinctive Perception of Image

Havent heard of them

Just another Boring Ads

Who ?
OK; I guess An unknown quantity

They havent proven themselves

Public Image
Positive Perception of Image
A good neighbour A good place to work Maker of quality products Provides good values Has the customers Friendly Interesting and entertaining advertising An efficient operation I trust them In the front of the industry Honest, dependable service They care interest in mind Courteous and helpful employees A fun place

Reason for Failure of New Products

Ignorance of Customer Needs

Improper Packaging, Unsuitable Size and Poor Quality

Low Margin to Middlemen Inadequate Sales Supervision Disproportionate Pricing Timing of Launching of the Product

Market Competition

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Competition
Porters Five-pronged Approach:

Rivalry among existing firms

Potential entry of new competitors

Potential development of substitute product

Bargaining power of suppliers

Bargaining power of customers

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