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1. Hong Leong Bank Employs effective strategies to market its service.

-Intangibility: Hong Leong Bank use branding, physical representations and endorsements to make their services more tangible. For example, Hong Leong Bank’s website, mobile banking app, and marketing materials highlight benefits such as convenience, security, and trust. The bank also provides physical evidence through documents like account statements, loan agreements, and investment reports to assure customers financial transactions.

-Inseparability: Hong Leong Bank enhances accessibility with online banking, mobile banking apps, and automated chat services that allow customers to interact anytime.

-Perishability: Hong Leong Bank manages demand through digital banking solutions. For example, Hong Leong Bank promotes the use of digital platforms like HLB Connect to allow customers to perform transactions 24/7.

-Heterogeneity: Hong Leong Bank focuses on employee training, customer service excellence, and standardized digital banking services.

2. External Marketing: Involves promoting services to customers through advertising, branding, and other external communications.

Internal Marketing: Focuses on motivating and equipping employees to deliver excellent service.

Interactive Marketing: Concerns the direct interaction between employees and customers during the service experience, influencing customer satisfaction.

3. •AIA Malaysia

-AIA use emotional storytelling in advertisements which focusing on family protection, legacy planning, and financial security. They also promotes the idea that life insurance helps loved ones maintain their lifestyle even after the policyholder’s passing.

Effectiveness:

-The emotional approach effectively creates a strong emotional connection with customers. AIA use real-life stories and testimonials helps customers understand the practical benefits of life insurance.

•Prudential Malaysia

-Uses a mix of digital marketing, TV ads, and partnerships with banks to reach customers and promotes flexible life insurance plans that cater to different life stages.

Effectiveness:

-Prudential’s strategy is effective because it educates customers on why they need life insurance at various life stages.The focus on customisation and flexibility reassures customers that they can adjust their plans as their needs change.

•Great Eastern Malaysia

-Uses a strong brand reputation and trust-based marketing to attract customers. They also promotes "Life Secure" and "Wealth Accumulation" plans that combine insurance with investment plans.

Effectiveness:

-The company effectively conveys the long-term benefits of life insurance through wealth-building plans. This allow customers can protect their future and grow their savings.

4. •Employees Provident Fund（EPF）

-EPF is compulsory for most Malaysian workers, so it doesn’t need as much promotion as private pension plans. EPF uses campaigns to encourage voluntary contributions and additional savings for retirement.

-EPF is low-risk because it is backed by the government, making people feel secure about their future savings.

•Private Retirement Scheme（PRS）

-PRS providers  target younger workers who want to build extra retirement savings.

-Since PRS investments depend on market performance, there is some risk, but they promote diversified funds to lower that risk.

•Great Eastern Retirement Plans

-Great Eastern promotes retirement savings as part of a secure and comfortable future.They offer flexible plans, allowing customers to adjust contributions based on their financial situation.

-Great Eastern focus on long-term stability and show that planning ahead reduces future risks.

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1. Understanding the external environment is important because it helps financial services providers Identify growth opportunities, recognise threats and stay competitive by adapting to economic and technological changes.

Marketing’s role is to analyzing and interpreting the external environment to guide strategic decision making, develop strategies that align with customer needs and market conditions and communicate effectively with customers and stakeholders about changes or new offerings.

2. Financial service providers: Hong Leong Bank

Opportunities for Hong Leong Bank include the growth of digital banking, rising demand for Islamic banking, and government support for SMEs.

Threats faces by Hong Leong Bank such as increased competition from fintech companies, stricter regulatory policies, and economic uncertainties can impact the bank’s performance.

3. I choose credit card market.

Five  forces：

i) Bargaining power of suppliers

-Banks and payment networks provide the infrastructure for credit card services.

Opportunity: Leverage partnerships with Visa/Mastercard to introduce exclusive credit card benefits.

Threat: Dependence on third-party technology providers may lead to higher costs for digital innovation.

ii) Bargaining Power of Buyers

-Customers can easily switch between credit card providers.

Opportunity: Introduce personalized loyalty programs and spending rewards to retain customers.

Threat: High customer expectations force the bank to reduce fees and offer more rewards, impacting profitability.

iii)Threat of new entrants

-Fintech companies like GrabPay and BigPay are entering the market.

Opportunity: Bank can enhance its digital banking app and offer instant online credit card approvals to stay competitive.

Threat: Fintech firms may disrupt the traditional credit card model with innovative payment solutions.

iv)Threat of substitutes

-Debit cards, mobile wallets, and cryptocurrency are alternatives to credit cards.

Opportunity: Bank can integrate credit card payments with e-wallets

Threat: If e-wallet adoption increases, credit card usage may decline, affecting long-term revenue.

v) Competitive rivalry

-Strong competition among banks (Maybank, CIMB, Public Bank) and digital platforms.

Opportunity: Offer unique credit card benefits, such as higher cash back for online shopping and travel package.

Threat: Constant competition leads to price wars and lower profit margins.

4. SWOT analysis in credit card market

Strengths：

- Strong brand reputation in Malaysia.

- Competitive cashback and rewards program.

Weaknesses：

- Higher interest rates compared to digital wallets.

- Limited international expansion for credit card services.

Opportunities：

- Expansion of e-commerce partnerships.

- Growing demand for travel and cashback credit cards.

Threats：

- Competition from fintech firms such as BigPay, GrabPay and Touch ‘n Go eWallet

- Involve Cybersecurity risks such as credit card fraud and hacking.

5. Climate-related issues affect financial services in several ways. In insurance sector, increased natural disasters such as flood and earthquake  raise insurance claims and premium costs while in banking sector, banks may need to finance green projects and offer sustainable investment funds. In addition, governments introduce climate risk policies that require banks to assess environmental risks in their loan portfolios. Extreme weather conditions can also disrupt branch operations and ATM availability which require better disaster recovery plans and stronger digital banking infrastructure.

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1. Production Concept

-Production Concept is a marketing philosophy that assumes consumers prefer products that are affordable and readily available.

-Therefore, businesses should focus on achieving high production efficiency, low costs, and mass distribution to attract and satisfy customers.

2. Product Concept

-Product Concept is a marketing philosophy that assumes consumers will favor products that offer the best quality, performance, and innovative features.

-Therefore, businesses should focus on continuous product improvements to attract and retain customers.

3. Selling Concept

-Selling Concept is a marketing philosophy that assumes consumers will not buy enough of a product unless the company undertakes large-scale selling and promotional efforts.

-The focus is on creating sales, not necessarily building long-term customer relationships.

4. Marketing Concept

-Marketing Concept is a philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors.

5. Societal Marketing Concept

-Societal Marketing Concept goes beyond the marketing concept by emphasizing social responsibility.

-It assumes that a company should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being.

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Video 1-Introduction

-This video topic focus on Financial Services Marketing in Ghana.

Introduction of Financial Services

-The purpose of studying financial services in this course is to understand how marketing strategies are influenced by the economic environment, and how demand and supply of financial products are shaped by various market factors.

-Financial services are defined as any products or services of a financial nature that are traded in financial markets. These services may include loans, pensions, insurance, investments, and banking products.

Role of Financial Institutions

-Financial institutions play a vital role in the economy by acting as intermediaries between savers and borrowers.

-They collect deposits from individuals and organizations with surplus funds and lend these funds to those who need capital for various purposes, including business expansion, personal needs, or government projects.

-Financial institutions assist in managing risks through services such as insurance, investment diversification, and advisory support.

-By providing access to credit and financial tools, they enable businesses particularly small and medium enterprises (SMEs) to grow, create employment, and contribute to overall economic development.

Rise of SMEs and their challenges

-SMEs became key suppliers and service providers to large local and multinational corporations. Sectors heavily populated by SMEs included hotels, restaurants, transport, storage, business services, and real estate.

-SMEs heavily rely on domestic funding unlike multinationals who can secure foreign capital. This creates demand for local financial services, helping fuel the growth of Ghana’s financial sector.

However, banks view SMEs as high-risk due to poor governance structures, limited assets to act as collateral and high rate of loan delinquencies.

Capital Market Importance

The capital market plays a vital role in supporting long-term economic growth, as it provides businesses with access to equity financing and investment opportunities for individuals and institutions. capital market requires greater attention, investment, and promotion.

- Strengthening this sector will help improve financial inclusion, mobilize domestic savings, and provide an alternative to traditional banking services, especially for long-term financing needs.

Video 2-Challenges

First of all, marketing financial services remains challenging due to complex consumer behavior, regulatory constraints, and declining consumer trust following past financial crises.

Challenges of Marketing Financial Services

-Intangibility: Unlike tangible goods, financial services are abstract and hard to evaluate beforehand.

-Consumer Reluctance: People don't actively seek out financial services unless necessary.

-Complex Regulations: There are strict rules in place to protect consumers and ensure ethical practices, which constrain marketing activities.

Financial Services Industry

-The financial services industry is undergoing significant transformation, marked by structural, behavioral, and trust-related shifts.

a. Industry Consolidation

-Larger institutions are absorbing smaller ones due to intense competition, high consumer expectations (better service, value) and inability of smaller firms to keep up with demands.

b. Fragmented Consumer Base

-Growing diversity in customer types which is micro and small businesses, sole proprietorships, startups (especially in tech) and low-income consumers (due to financial inclusion policies)

Cross-Sector Service Expansion

-Financial service providers are increasingly offering services outside their traditional domains.

-For examples, Insurance companies now offer banking services like credit facilities to help clients pay premiums. Banks are offering insurance products (e.g., travel or contents insurance).

Consumer Trust and Activism

-Trust levels are shaky but not critically low people still patronize financial services.

-Lack of widespread consumer financial activism or rights awareness limits demand for higher service standards.

-The sector could be more accountable if there were stronger consumer education initiatives.

Video 3-Consumer Behaviour

The video focuses on understanding how consumers make decisions when purchasing financial products in a complex financial services market. It highlights the importance for financial services professionals to grasp the challenges consumers face in disentangling various offerings and the decision-making processes involved.

Understanding Financial Products

-Financial products are monetary services provided by financial institutions, acting as intermediaries to transfer funds from those who have excess to those in need.

-Each financial product involves key elements such as an initial monetary input, a defined time frame for maturity, and associated risks that must be calculated.

-Examples include mortgages, stocks, bonds, and insurance policies, all requiring careful assessment of creditworthiness and lifestyle risks to determine their respective values and payouts.

Behavioral Finance and Consumer Decisions

-Consumer decision-making in financial services often involves both rational and irrational behaviors. For example, despite not earning interest, savings in Christmas clubs provide consumers with a structured way to save for holiday purchases, reflecting an emotional connection to saving.

-Additionally, many consumers are increasingly opting for overdraft facilities instead of utilizing their savings accounts, prioritizing immediate cash flow assurance over long-term savings.

Rational vs. Irrational Consumer Behavior

-Financial products encompass items like auto insurance and home mortgages, engaging consumers through rational and irrational behaviors.

-The decision-making process begins with need recognition, followed by information search and pre-purchase evaluation, where consumers assess various alternatives and their costs. After making a purchase, customers evaluate the benefits and effectiveness of their decisions post-consumption.

Regulatory Framework in Financial Services

-Regulation in financial services is essential to protect consumers, who often lack sufficient knowledge to assess risks.

-Financial institutions are obligated to provide clear and transparent information about their products, as failing to do so can lead to customer disappointment and harm the industry’s reputation.

-Effective consumer guidance, including personal bankers and case studies, enhances consumer confidence and ensures informed decision-making.

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Video 4-Financial Services Products

This video focus on how financial services is priced, highlighting that pricing is the only aspect of the marketing mix that generates revenue for a company, while the other elements primarily incur costs.

Cost Factors in Pricing Financial Services

-The pricing of financial services hinges on various factors, including the perceived value offered to customers, competitive pricing from rivals, and demand dynamics influenced by population wealth.

- As the Small and Medium-sized Enterprise market grows, there is a diverse demand for financial products, reflecting varying aspirations among customers.

-Pricing strategies can manifest as monthly fees, insurance premiums, or advisory session charges, emphasizing the complexities involved in setting financial service prices.

Challenges in Pricing Financial Services

-Pricing financial services involves several challenges, including quantifying costs and risks, determining quality, and managing regulatory frameworks.

-Additional difficulties arise from complex client relationships with bundled products, where establishing individual costs can be elusive.

-In addition, companies must navigate competitive pressures while adhering to regulatory pricing directives, which complicates the pricing strategy further.

Pricing Methods in Financial Services

-Profit maximization in financial services involves setting prices based on customer value and demand, utilizing various pricing methods like regulation-based, cost-based, and parity pricing.

-Each method has its advantages and drawbacks; for instance, cost-based pricing can lead to underpricing and misallocation of fixed costs, while parity pricing may initiate price wars if not managed well.

-Effective pricing strategies must account for competition and customer perception of value to be successful.

Environmental Trends in Pricing Financial Services

-Despite expectations that deregulation would lower prices through increased competition, recent consolidations in the financial services sector have not achieved this outcome.

- Although the internet facilitates price comparison and impacts consumer choices, large companies often maintain high prices due to their bargaining power.

-Additionally, advancements like offshore outsourcing and technology such as ATMs provide more price flexibility but raise questions about the effectiveness of pricing strategies in the industry.

Video 5-Pricing

This video focuses on the advertising of financial services, where advertising is equated with marketing, so we have learned how to effectively promote financial services to the public.

Differences Between Advertising Financial Products and Other Products

-Advertising in financial services is crucial as it shapes consumer purchasing decisions amidst complex offerings and varied pricing structures.

-Unlike other products, financial services face unique challenges such as intangible attributes and regulatory price controls, which complicate how features and benefits are communicated.

- The corporate image significantly influences consumer decision-making, often becoming the primary basis for selecting financial service providers over tangible product attributes.

Challenges in Financial Services Advertising

-Financial services face several challenges in advertising, primarily due to the regulated nature of claims that cannot easily appeal to emotions or excitement.

-The unattractiveness of financial products and the stigma associated with needing financial assistance further complicate consumer engagement.

-While some companies have succeeded in creating emotive advertisements, particularly in areas like insurance, the risk of exploiting sensitive situations remains a significant concern.

Direct Marketing Trends in Financial Services

-Direct marketing plays a vital role in financial services, especially with existing customers whose data allows for targeted and effective outreach.

-While it can enhance ad efficiency and measure return on investment, issues like privacy preferences and spam filters pose challenges that can lower response rates.

-Financial marketers increasingly adopt multi-channel strategies, combining various media to reach consumers effectively across different platforms.

Execution of Advertising Campaigns for Financial Services

-Effectively targeting consumers in financial services requires a multi-platform advertising approach, as different media offer varying reach and frequency.

-Analyzing advertising response functions illustrates that increased exposure frequency can lead to higher sales, particularly for products like credit cards and insurance, where timing influences consumer engagement.

-Therefore, careful planning, including setting objectives, budgeting, and understanding media characteristics, is crucial for successful advertising execution.

Video 6- Advertising Financial Services

This video focuses on addressing the distribution of financial services and emphasizes the importance of distribution channels in effectively promoting financial services.

Challenges in Financial Services Distribution

-The financial services sector faces significant issues of moral hazard and adverse selection, where agents may conceal information to secure favorable terms for policies or loans, leading to higher risks for companies.

-Strategies to mitigate these challenges include employing exclusive agents, monitoring transactions, utilizing technology, and offering competitive salaries to agents, all aimed at ensuring accountability and enhancing customer satisfaction.

-Conflicts of interest, such as excessive commission-driven trading and tying additional services to loans, further complicate the landscape, demanding a careful balance of transparency and ethical practices.

Moral Hazard and Adverse Selection

-Adverse selection occurs when customers misrepresent their information, leading to a mismatch between their risk profile and the financial firm’s expectations, causing issues like high-risk clients failing to meet their obligations.

-The financial sector faces significant challenges with a large unbanked population in Ghana, indicating a need for better service distribution, which has evolved due to technology and the use of third-party agents.

-However, consolidation in the banking sector has not translated to reduced costs for consumers, raising

Strategies for Effective Distribution

-To minimize moral hazards and adverse selection in business relationships, companies should engage in joint planning and ensure alignment with their partners' objectives.

-Selecting agents and brokers who share a similar mindset is crucial, as is providing them with exclusivity and security in their roles to foster a win-win environment.

-Overall, focusing on these strategies can significantly enhance the effectiveness of financial services distribution.

Video 7-Distribution of Financial Services

This video focus on discussion on the distribution of financial services. Businesses must continuously innovate, reimagine, or modify their offerings to stay competitive in a dynamic market. Consumers' preferences and tastes evolve, making it necessary for companies to refresh their product portfolios.

Simplicity of Financial Product Innovation

-Introducing new financial products within the financial services industry can often be simpler than in other sectors.

-Many innovations do not require sophisticated technology but instead involve adjustments such as adding or removing product attributes.

-However, some innovations are technology-driven, such as ATMs, video teller machines (VTMs), and the rise of mobile money services.

-Despite these tech advancements, many successful financial products emerge from creative reconfigurations of existing offerings.

Dimensions of Financial Services Products

-Financial service products typically consist of four core dimensions which is the input (how much you contribute), the policy duration (time), the associated risk (e.g., provider reputation, credit score), and the output (payout or benefit).

-Additionally, non-core attributes such as installment options or corporate social responsibility initiatives can enhance product appeal.

-Examples include mutual funds with a social investment focus, flexible mortgages, or travel insurance options catering to specific lifestyle needs.

Creating New Financial Products

-Creating new financial products often involves combining or modifying existing attributes. For example, a motorcycle plus ease of handling creates a scooter, or a mortgage plus missed payment flexibility results in a more customer-friendly home loan.

-Some innovations emerge from pairing unrelated needs: buying mobile credit now triggers small insurance savings.

-Similarly, a check account merged with a credit card produces a debit card. Companies also develop solutions to facilitate cross-border remittances through card systems, where local accounts enable relatives abroad to withdraw funds—turning a domestic banking product into a cross-border tool.

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Video 8-New Product Introduction in Financial Services

In financial services, developing new products involves easily enhancing existing attributes to cater to specific market segments. This often requires making minor adjustments to attract different consumer groups.

Consumer Segments in Financial Services

-The financial services market consists of various consumer segments, including small business owners, medium-level businesses, and large multinationals, each with distinct financial needs and aspirations.

-This diversity enables financial services marketers to tailor their marketing strategies to target specific segments effectively.

-By mapping the financial needs of these segments to relevant financial products, marketers can increase customer engagement and response.

Segmentation Process and Variables

-Segmentation in financial services involves categorizing consumers based on characteristics such as age, gender, and lifestyle to develop targeted marketing strategies.

-Internally collected data, coupled with externally purchased information, aids in identifying consumer segments effectively.

-Ethical considerations and legal constraints are paramount when acquiring data, especially concerning privacy and protection regulations.

Customer Relationship Management in Financial Services

-Effective customer relationship management (CRM) is essential in financial services to build and maintain strong customer bonds, as total profit is derived from individual customer value multiplied by the number of customers.

-By transitioning prospects to loyal clients through targeted marketing and responding to complaints, businesses can enhance customer satisfaction and retention.

-Additionally, employing strategies like exit barriers and service bundling can further encourage customer loyalty.

Methods for Increasing Customer Loyalty

-Bundling various insurance offers into a one-stop shop can enhance customer retention by providing convenience and perceived value.

-Regular communication with customers about policy renewals, addressing complaints effectively, and offering personalized treatment to valuable clients are critical strategies for building loyalty.

-Additionally, loyalty programs and proactive engagement around policy expirations are essential in retaining customers.

Video 9 - Segmentation, Targeting and Positioning

This video emphasizes the importance of customer satisfaction in financial services, building on previous discussions about market segmentation.

Standardization in Service Provision

-Standardizing the provision of financial services is essential to minimize variation in service quality, as individual competencies among service providers can differ greatly.

- While among consumers has historically limited switching between financial service providers, increasing market competition and consumer awareness are gradually reducing this inertia, leading to more frequent switching.

- However, the trend of 'one-stop banking' may counteract this shift, as customers often prefer to consolidate their financial needs with a single provider offering a comprehensive range of services.

Quality Perception in Financial Services

-Quality perception in financial services is subjective, shaped by individual experiences and how services are perceived rather than objectively measured.

-Key dimensions influencing these perceptions include the actual performance of products, customer interactions with staff, and the company's reputation and longevity in the market. These elements collectively inform how customers assess the quality of financial services.

Customer Satisfaction Measurement Approaches

-Customer complaint rates do not necessarily reflect satisfaction, as many customers may remain silent even when dissatisfied.

-To encourage customer satisfaction, companies should consider indicators such as the length of customer relationships and the frequency of transactions, while also proactively seeking feedback through surveys. Key dimensions of satisfaction include reliability, which measures the accuracy and dependability of service delivery.

Improving Customer Satisfaction in Financial Services

-Customer satisfaction in financial services can be enhanced by identifying and addressing gaps between actual service experiences and customer expectations, particularly regarding wait times and complaint handling.

- Training staff to improve service quality, reducing response times, and simplifying complaint processes are crucial strategies for improving customer perceptions.

-By effectively managing these aspects, financial services can increase overall customer satisfaction and contribute to higher profitability.

Video 10- Customer Satisfaction

This video highlights the integral connection between customer satisfaction and consumer welfare in financial services, underscoring the significance of a robust regulatory framework.

Importance of Regulatory Framework in Consumer Protection

-The efficacy of financial services is heavily reliant on a robust regulatory framework that safeguards consumers and mitigates risks associated with poor service.

- A personal account illustrates the shortcomings of customer care in the insurance sector, emphasizing the need for empathetic responses and timely communication following distressing events.

-Furthermore, the session explores necessary regulatory measures to better protect consumer rights and questions the dual role of regulators in both financial oversight and consumer protection.

Consumer Rights and Protection in Financial Services

-The relationship between consumers and financial institutions is often skewed due to the power imbalance favoring providers, making consumer protection crucial.

-Activism, represented by individuals like Kofi Capito, plays a vital role in educating consumers about their rights and responsibilities within the financial system.

-By supporting consumer rights initiatives, financial services can reduce complaints and improve customer satisfaction, ultimately benefiting both consumers and providers.

Insurance Regulations and Consumer Access

-Insurance regulation aims to ensure consumer access to insurance and protect against economic risks while promoting competition and understanding of insurance products.

- The GH Insurance Act 2006 outlines key regulations such as online business provisions, solvency requirements, and premium approval processes, with oversight primarily by the National Insurance Commission (NIC).

- Regulatory guidelines, including minimum capital requirements and advertising rules, shape the operational framework for insurance companies.

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In these three weeks, I have learned about introduction of financial services which is definition of financial services and providers. Besides that, I have clearly understood key characteristics of services (HIPI) which is Heterogeneity, Intangibility, Perishability, Inseparability. In addition, I have also understood the concept of marketing management philosophies. For example, I have learned the concept of production, product, selling, marketing and social marketing.