Financial Services Marketing Insights: A Marketing Compass

What we now call "marketing" began long before the name was coined. In the mid-1800s, traveling salesmen dressed "snake oil" and other tonics in fancy packaging and extolled their virtues to a gullible public. New marketing applications soon proliferated in the belief that marketing could make many new things possible in virtually any business situation. For more than a century, implementation, experience and ultimately strategy have helped marketing evolve from crude beginnings into today's sophisticated practices.

Consumer product firms have been the pioneers in the marketing field and have taken the undisputed lead as the creators of marketing's best practices. While sophisticated marketing techniques have spawned consumer giants, most financial services firms had to be dragged, kicking and screaming, into the era of sophisticated marketing.

The Advancing State of Financial Services Marketing

Financial services marketing has, however, evolved rapidly over the last decade. As a result, the very nature of the marketing function in financial services firms is undergoing a dramatic modification as more attention is paid to marketing-driven processes that impact the entire firm. Our observations suggest that the more progressive financial services organizations are currently going through an intellectual and practical transition that is forcing the reexamination of the role of marketing within their firms. Many have begun to realize that financial marketing responsibilities include not only developing the firm's mission statement and key messages, but also defining its business focus, relevant differentiation, competitive advantages and value proposition.

At the same time, however, a number of financial services marketing directors must engage in long-term turf battles with other departments before they can implement worthy financial marketing initiatives that will help accelerate the achievement of corporate goals. In many financial organizations, the persistent problem of differentiating financial marketing from sales still remains largely unresolved. In addition, some financial services marketing directors must still enlist substantial management support just to maintain equilibrium and obtain the opportunity to accomplish even limited objectives.

Focusing on the Customer

Peter Drucker, a sage of the financial marketing discipline, discussed customer defined value almost 50 years ago. During the last decade his concept of a customer-centric focus has become part of popular marketing literature and is now the guiding principle of financial marketing. Drucker's fundamental mandate that 'the customer's interests must come first' can be summarized by the following statements paraphrased from his extensive writings:

• The only valid definition of business purpose is to create a customer.

• What the business thinks it is producing is not as important as what customers think they are buying; what customers consider to be value is decisive.

• Every business has only two basic functions: marketing and innovation.

• Marketing is your whole business as seen from the customer's point of view.

While easy to articulate, customer-centric practices are difficult to implement in most financial services organizations. Obstacles include a prevailing product-push mentality, a focus on short-term profitability, under-investment in financial marketing activities, and the lack of solid market intelligence about the needs and wants of target markets.

We believe, however, that in the future the most successful financial services marketing organizations will be those that make Drucker's principles their own through extrapolation, adaptation and creative application. As effective financial marketing evolves to a cross-functional, multi-disciplinary activity, successful firms will create a culture of customer orientation throughout the organization and incorporate advocacy for customer welfare in all corporate decision-making.

With the financial services industry currently going through a transformation, management's challenge is to provide the leadership to displace the status quo and create a culture of opportunity. Early adaptors who apply the concept of "integrated marketing" on an organization-wide basis will not only develop a customer-orientated culture, but also create opportunities for innovation, improved performance and incremental profitability.

About The Author

Mr. Jay Nagdeman, the Founder and President of Suasion Resources, has recently been identified as "One of the financial industry's most innovative marketing minds" by Research Magazine. Mr. Nagdeman previously served as Director of Marketing in financial services firms and as a contributing editor for Barron's. Prior to that, he taught at the business school of the University of Chicago.

Copyright © 2004 Suasion Resources Inc. All rights reserved.

For additional information, please visit us online at www.suasionresources.com.

---

Eight Steps To A Great Marketing Plan

Step 1: Where Am I Now? Before you decide where... Read More

Market Research ? How Good is the Data?

"Make money for taking surveys"," Cash for your opinion", "Make... Read More

4 Alternative Ways To Gain Lifetime Customers

You will always have more people that turn down your... Read More

Client Attraction Technique #1: Niche Marketing

When asked "what business are you in" many business owners... Read More

Why Most Marketing Videos Dont Work

Every now and then I will meet someone who has... Read More

Write Articles WITHOUT Writing!

Face it, writing any article can be a tedious and... Read More

John Kerry, Amazing Direct-Marketer!

If you want to uncover a little secret about how... Read More

The REAL Key To Successfully Marketing Any Product!

The REAL key to successful marketing of any product is... Read More

A Look at Color Brochure Printing

Brochures have become vital in today's workplace, serving a wide... Read More

How Much Is Your Popcorn Worth? Powerful Lessons In Marketing & The Psychology Of Selling ? Part 6

How Much Is Your Popcorn Worth?: Powerful Lessons In Marketing... Read More

Discover the Winning Marketing Strategy Secrets of Donald Trump Apprentice Wanna-bes

The highly entertaining Donald Trump's search for an apprentice turned... Read More

Mail Can Make You Money

Are you still waiting for business to turn around before... Read More

Getting Into Marketing Momentum ... The Accelerated Way

GETTING INTO MARKETING MOMENTUM: The 5 Power Principles for Getting... Read More

You Must Get Going If You Want To Get Growing

For many of service-based businesses out there, it's not that... Read More

Direct Mail Marketing Generates Sales Leads: Heres How

1. Personal Unlike an advertisement in a trade publication, which... Read More

Two Steps to Improving Your Marketing Success

Since the human brain seems to be able to focus... Read More

Is It Time To Revisit Your Marketing Strategy?

Small & Mid Sized Business owners, have you revisited your... Read More

Marketing ? Like a Game of Chess

Have you started thinking about your Valentines Day Promotion yet?It... Read More

10 Start Up Marketing Tips

This list has been compiled as a result of years... Read More

The Use of Bar Code SMS in Mobile Marketing, Advertising, CRM

Anybody that frequents shopping malls are familiar with the bar... Read More

Eleven Reasons Donors Stop Responding To Fundraising Letter Appeals

Donors will stop responding to your fundraising letter appeals for... Read More

Deciphering Marketing Lingo: Whats the Difference between a USP, Single Message and a Tagline?

Maybe you've heard these different marketing terms, maybe you haven't.... Read More

The Power Of A Story

If you want your marketing to be effective, you absolutely... Read More

Eight Advantages of Fundraising Letters Over Other Methods

1. Personal Fundraising letters are about as personal as you... Read More

Sell Big Ticket Items Now! - 1 Simple Step To Keep Your Fears From Holding YOU Back

First, some background on today's topic. I've had a terrible... Read More

Self Promotion Brings Business Success

Your business success depends on your ability to promote your... Read More

Top Five Tips for Marketing that Gets Results

When marketing your practice, as well as designing your brochure,... Read More

3 Quick Robotic Online and Offline Marketing Strategies to Help You Work Less and Make More Money

What is Marketing? There are many text book answers to... Read More

Direct Mail Response Devices and How to Craft Them

Successful direct mail packages contain three things: an attractive offer,... Read More

What IS the Difference Between Marketing and Sales?

There seems to be a never ending argument among marketing... Read More

Strategic Marketing and Tactical Marketing Know The Differences And Profit

Most people mistakenly assume that when you talk about marketing,... Read More

Attracting New Business on a Shoestring Budget

In a recent marketing workshop I attended, I discovered that... Read More

What?s Next? A Guide to Marketing Your New Business

Coming up with an idea, seizing the opportunity, and setting... Read More