| What we now call "marketing" began long | | | | maintain equilibrium and obtain the |
| before the name was coined. In the mid-1800s, | | | | opportunity to accomplish even limited |
| traveling salesmen dressed "snake oil" and | | | | objectives.Focusing on the CustomerPeter |
| other tonics in fancy packaging and extolled | | | | Drucker, a sage of the financial marketing |
| their virtues to a gullible public. New | | | | discipline, discussed customer defined value |
| marketing applications soon proliferated in | | | | almost 50 years ago. During the last decade |
| the belief that marketing could make many new | | | | his concept of a customer-centric focus has |
| things possible in virtually any business | | | | become part of popular marketing literature |
| situation. For more than a century, | | | | and is now the guiding principle of financial |
| implementation, experience and ultimately | | | | marketing. Drucker's fundamental mandate that |
| strategy have helped marketing evolve from | | | | 'the customer's interests must come first' |
| crude beginnings into today's sophisticated | | | | can be summarized by the following statements |
| practices.Consumer product firms have been | | | | paraphrased from his extensive writings:The |
| the pioneers in the marketing field and have | | | | only valid definition of business purpose is |
| taken the undisputed lead as the creators of | | | | to create a customer.What the business thinks |
| marketing's best practices. While | | | | it is producing is not as important as what |
| sophisticated marketing techniques have | | | | customers think they are buying; what |
| spawned consumer giants, most financial | | | | customers consider to be value is |
| services firms had to be dragged, kicking and | | | | decisive.Every business has only two basic |
| screaming, into the era of sophisticated | | | | functions: marketing and innovation.Marketing |
| marketing.The Advancing State of Financial | | | | is your whole business as seen from the |
| Services MarketingFinancial services | | | | customer's point of view.While easy to |
| marketing has, however, evolved rapidly over | | | | articulate, customer-centric practices are |
| the last decade. As a result, the very nature | | | | difficult to implement in most financial |
| of the marketing function in financial | | | | services organizations. Obstacles include a |
| services firms is undergoing a dramatic | | | | prevailing product-push mentality, a focus on |
| modification as more attention is paid to | | | | short-term profitability, under-investment in |
| marketing-driven processes that impact the | | | | financial marketing activities, and the lack |
| entire firm. Our observations suggest that | | | | of solid market intelligence about the needs |
| the more progressive financial services | | | | and wants of target markets.We believe, |
| organizations are currently going through an | | | | however, that in the future the most |
| intellectual and practical transition that is | | | | successful financial services marketing |
| forcing the reexamination of the role of | | | | organizations will be those that make |
| marketing within their firms. Many have begun | | | | Drucker's principles their own through |
| to realize that financial marketing | | | | extrapolation, adaptation and creative |
| responsibilities include not only developing | | | | application. As effective financial marketing |
| the firm's mission statement and key | | | | evolves to a cross-functional, |
| messages, but also defining its business | | | | multi-disciplinary activity, successful firms |
| focus, relevant differentiation, competitive | | | | will create a culture of customer orientation |
| advantages and value proposition.At the same | | | | throughout the organization and incorporate |
| time, however, a number of financial services | | | | advocacy for customer welfare in all |
| marketing directors must engage in long-term | | | | corporate decision-making.With the financial |
| turf battles with other departments before | | | | services industry currently going through a |
| they can implement worthy financial marketing | | | | transformation, management's challenge is to |
| initiatives that will help accelerate the | | | | provide the leadership to displace the status |
| achievement of corporate goals. In many | | | | quo and create a culture of opportunity. |
| financial organizations, the persistent | | | | Early adaptors who apply the concept of |
| problem of differentiating financial | | | | "integrated marketing" on an |
| marketing from sales still remains largely | | | | organization-wide basis will not only develop |
| unresolved. In addition, some financial | | | | a customer-orientated culture, but also |
| services marketing directors must still | | | | create opportunities for innovation, improved |
| enlist substantial management support just to | | | | performance and incremental profitability. |