Topic septyni - Marketing materials and their effectiveness Flashcards
What does effective marketing do to a provider
More accounts opened, and more in them
Increased purchases of other products
Increases brand awareness
What was virgin money headline after the financial crash
It’s time for a better kind of bank
What is the first stage of the marketing process
To target a particular group of customers
State 2 aims of the financial provider when marketing the product
Get more people to buy the product they are selling
Get existing customers to buy more products
Examples of groups that can be segmented
age
gender
family status
income
occupation
leisure activities
Whats a mass market
Big segmentations of people - gender, age
Whats the advantage of segmenting customers
helps the provider to maximise its sales and to get the best profit from the budget they’re given
How do providers segment their products
Categorise their products into segments such as homeowners or motorists who would be looking for insurance on their products
What % of people would rather use a branch
11%
What do providers keep in mind while making marketing materials
Destined to the target audience
Phrased in a language the target group can relate too
Refer to a lifestyle the target have
Reflect their values
What bank had slogans “Embrace your full life” and “When your
life becomes about more than just you” on their premium account
HSBC
What are the 4 types of marketing
Online
text-based
Film
Photography
Examples of text-based materials
Leaflets
mail
text-based adverts
text message or banking apps pop ups
Limitations of leaflets
people will only pick it up if they know what it is
only people in branch will pick them up
Limitations of mail-shots
Have to send out a lot to reach sales targets
Outdated
When would a provider show an advert to reach the mass market
In peak holidays time
Where would a products TaCs be found
In the small print
What is included in legal and technical information
Application forms
terms conditions
Policy document for insurance policy
Particulars of an investment scheme
How to spot misleading information
is the promotion balanced
Does it cleary say how much you’re paying
Does it seem unrealistic
Are the risks clear
How long is the commitment
Are there penalty’s for withdrawals
Is it guaranteed
Any small print info
What does the FCA require about promotion
must not hide any info and it must be clear
Who gives a crystal mark and what is it
the plain english campaign
Given to providers with clear information
Example of providers hiding info in small print
PPI was sold to self-employed people who then couldn’t claim because in the small print it said you couldn’t be self employed
What are the main 4 banks
HSBC
Barclays
Lloyds Banking Group
NatWest Group
Who don’t big banks change prices
As the other big banks will see it straight away and try to get an advantage by either a better or the same deal
What do big firms compete on
Product quality and developments,
advertising and marketing
level of service they provide
How many branches did barclays shut down between 2019-2022
453
Whats the most expensive advertising
tele
how are large banks and small banks going to market differently
big - tv and
small - local radio, billboard
What is Nationwide’s slogan
On your side
How did banks try to deleverage after the crisis
By promoting their savings product
How must banks conform ethical principles
Must not discriminate against anyone
Provider should not accept illegal behaviour too
Did payday loan adverts get banned on kids tv channels
No, the government said they didn’t take up enough of the ads to be important (0.6%)
Who requires “all financial promotions must be
clear, fair and not misleading regardless of the media type”
FCA
What should the materials state for a savings product
The interest rate
When the interest is paid
And fees
any limitations eg- time period
Any risks
What is the ASA
Advertising standards authority
uk’s independent regulator of advertising, and rules via the advertising codes
what are The three crucial factors in measuring a business’s societal impact
Environmental
Social
Governance
What is barclays csr
building young futures
Helped disadvantaged children in 6 countries
What is HSBC’s csr
Climate Solutions Partnership
Funding an agricultural project for farmers in the USA
What is NATWEST’s sustainable policy
to deliver long-term sustainable performance and seeks to accelerate social value in areas where we can make a meaningful contribution
pros, cons of multi-car insurance
pros - Young people being stuck at home
Cons - Environmentally unsustainable
What is the key criteria in evaluating marketing
Consistency
Quality
Efficiency
What are most financial services providers
Corporate whos aim is to make shareholders money
What is the FSCB
Financial Services Culture Board
It publishes an annual report detailing bank successes and failures
Relies on memberships from firms, and it code of conduct isn’t statutoryw
What is Handelsbanken’s (No British translation, sweedish bank) focus
Customer satisfaction
Saying they are decentralised to give a more personal experience
What is a stakeholders approach
Not only focus on making profit but also satisfy the needs of other stakeholders
