Today, one of the most competitive and most lucrative fields is financial services. A change in government regulations, has not only attracted many competitors but also changed the needs and requirements of customers. The following are the services that are rendered under the heading of financial service:
Marketing: Banking Services
Bank marketing deals with providing services to satisfy customer’s financial needs and wants. This is the total of all functions directed to provide services to satisfy customer’s financial and related needs and wants more efficiently and effectively than the competitors. The marketing aspect helps in achieving the organizational objectives of the bank. The ultimate aim of a bank is the customer is satisfied. Therefore, marketing of banking services should ultimately take care of customer satisfaction.
Marketing: Portfolio Management Services (PMS)
PMS refers to the services provided to the investors wherein the agency takes the responsibility of using the investor’s funds effectively to obtain the maximum profits to the investor. The attraction of a good return in a short period of time is very attractive to the investors. PMS begins with investor’s objectives, preferences and constraints. The basic objective in PMS is satisfying two expectations, i.e. credibility and professional relationship. The marketing should concentrate mainly on these two aspects. The former is built over a period of time whereas the latter is obtained by qualified personnel with considerable skill.
Marketing: Factoring Service (FS)
FS covers the collection of receivables (Bills) and financing them. Basically, this is an arrangement in which receivables on account of sale of goods or services are sold to the factor at a specified discount. In marketing the above service, as the consumer happens to be the focus for developing the business, there is a need to undertake the study of consumer preferences along with the services have to be taken care off. The marketers of factoring should advertise the importance of the factoring to its customers.
Professional Services Marketing:
This would be almost pure service marketing as there is no/less involvement of the goods when compared to the other services. This is such a vast field to discuss all the areas, thus only a few important services are discussed below:
Marketing: Hospital Services
The advent of new technology has changed the field of medicine. Latest and sophisticated medical equipments along with new medicines have invaded the market. With the growing competition in medical field – the marketing strategy should emphasize on the patient care, various services rendered (i.e. if any special services are provided) various equipments that are available, the specializations and experience of all Doctor’s should be highlighted while marketing the Hospital Services.
Marketing: Consultancy Services
In India, Management consultancy is a growing and increasingly professionalized field. This service is client oriented service, where the management consultant would find the requirements of the client such as appraising a project, conducting a market survey, advising the options that are available to the clients in the industry. The marketing strategy should include the experience of the professionals engaged in the services, the type of service they render to their clients etc.
The common characteristics of services are:
1. Intangibility: services cannot be smelt, felt or tasted
2. Inseparability: Services cannot be separated from the producer. For example, doctor’s services cannot be separated from him.
3. Perishability: services are produced and consumed simultaneously else they perish in the absence of consumption.
4. Variability: services cannot be separated from the producer therefore it varies from person to other with experience.
The improved quality of life has created a greater demand of the travel hotel, health care and communication services. Various changes such as, demographic, social, economic and political have lead to increased growth in service economy. A service firm should prove its uniqueness by increased differentiation, quality, productivity management of service firms it should have a well defined service concept, target market, a well focused operating strategy and a well designed service delivery system. We have also discussed the marketing of services under headings of tourism, travel and services marketing, financial and professional services marketing and their strategies.
The service sector provides as much as 55% of jobs in the modern economy which includes various types of services to customers, food, personal care, entertainment, banking, insurance, transport and tourism, and professional services. Thus service sector has a bright future.