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Financial Services Marketing Insights: A Marketing Compass

What we now call "marketing" began longmaintain equilibrium and obtain the
before the name was coined. In the mid-1800s,opportunity to accomplish even limited
traveling salesmen dressed "snake oil" andobjectives.Focusing on the CustomerPeter
other tonics in fancy packaging and extolledDrucker, a sage of the financial marketing
their virtues to a gullible public. Newdiscipline, discussed customer defined value
marketing applications soon proliferated inalmost 50 years ago. During the last decade
the belief that marketing could make many newhis concept of a customer-centric focus has
things possible in virtually any businessbecome part of popular marketing literature
situation. For more than a century,and is now the guiding principle of financial
implementation, experience and ultimatelymarketing. Drucker's fundamental mandate that
strategy have helped marketing evolve from'the customer's interests must come first'
crude beginnings into today's sophisticatedcan be summarized by the following statements
practices.Consumer product firms have beenparaphrased from his extensive writings:The
the pioneers in the marketing field and haveonly valid definition of business purpose is
taken the undisputed lead as the creators ofto create a customer.What the business thinks
marketing's best practices. Whileit is producing is not as important as what
sophisticated marketing techniques havecustomers think they are buying; what
spawned consumer giants, most financialcustomers consider to be value is
services firms had to be dragged, kicking anddecisive.Every business has only two basic
screaming, into the era of sophisticatedfunctions: marketing and innovation.Marketing
marketing.The Advancing State of Financialis your whole business as seen from the
Services MarketingFinancial servicescustomer's point of view.While easy to
marketing has, however, evolved rapidly overarticulate, customer-centric practices are
the last decade. As a result, the very naturedifficult to implement in most financial
of the marketing function in financialservices organizations. Obstacles include a
services firms is undergoing a dramaticprevailing product-push mentality, a focus on
modification as more attention is paid toshort-term profitability, under-investment in
marketing-driven processes that impact thefinancial marketing activities, and the lack
entire firm. Our observations suggest thatof solid market intelligence about the needs
the more progressive financial servicesand wants of target markets.We believe,
organizations are currently going through anhowever, that in the future the most
intellectual and practical transition that issuccessful financial services marketing
forcing the reexamination of the role oforganizations will be those that make
marketing within their firms. Many have begunDrucker's principles their own through
to realize that financial marketingextrapolation, adaptation and creative
responsibilities include not only developingapplication. As effective financial marketing
the firm's mission statement and keyevolves to a cross-functional,
messages, but also defining its businessmulti-disciplinary activity, successful firms
focus, relevant differentiation, competitivewill create a culture of customer orientation
advantages and value proposition.At the samethroughout the organization and incorporate
time, however, a number of financial servicesadvocacy for customer welfare in all
marketing directors must engage in long-termcorporate decision-making.With the financial
turf battles with other departments beforeservices industry currently going through a
they can implement worthy financial marketingtransformation, management's challenge is to
initiatives that will help accelerate theprovide the leadership to displace the status
achievement of corporate goals. In manyquo and create a culture of opportunity.
financial organizations, the persistentEarly adaptors who apply the concept of
problem of differentiating financial"integrated marketing" on an
marketing from sales still remains largelyorganization-wide basis will not only develop
unresolved. In addition, some financiala customer-orientated culture, but also
services marketing directors must stillcreate opportunities for innovation, improved
enlist substantial management support just toperformance and incremental profitability.



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