JAIBP Marketing of Financial Services Syllabus

Marketing of Financial Services syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Marketing of Financial Services in JAIBP, not a summary of it.

1. 1

   Fundamentals of Marketing

   3 topics

   • Marketing Concepts and Orientations
   • The Marketing Environment
   • Characteristics of Services Marketing
2. 2

   Marketing Strategy and Segmentation

   3 topics

   • Market Segmentation and Targeting
   • Positioning of Financial Products
   • Competitive Strategy
3. 3

   The Marketing Mix for Financial Services

   3 topics

   • Product and Pricing Strategies
   • Distribution and Channels
   • Promotion and Communication
4. 4

   Customer Relationship Management

   3 topics

   • Building Customer Loyalty
   • Service Quality and Customer Satisfaction
   • Complaint Handling and Retention
5. 5

   Branding and Market Research

   3 topics

   • Brand Building in Banking
   • Marketing Research Process
   • Consumer Behaviour in Financial Services
6. 6

   Selling and Distribution of Bank Products

   3 topics

   • Personal Selling and Cross-Selling
   • Bancassurance and Alternate Channels
   • Sales Force Management

Marketing of Financial Services flashcards for JAIBP

22 of 55 cards from the Marketing of Financial Services deck — real questions with worked answers.

1. Define 'marketing' in the context of financial services.

   Marketing is the management process of identifying, anticipating, and satisfying customer needs profitably by creating, communicating, and delivering value to customers and managing customer relationships to benefit the organisation.

2. Name the five marketing management orientations (philosophies a firm can adopt).

   Production orientation, Product orientation, Selling orientation, Marketing orientation, and Societal (holistic) marketing orientation.

3. What is the core difference between the 'selling concept' and the 'marketing concept'?

   The selling concept starts with existing products and pushes them on customers through aggressive selling (inside-out). The marketing concept starts with customer needs and works to satisfy them profitably (outside-in).

4. What does the 'production orientation' assume about customers?

   It assumes customers favour products that are widely available and affordable, so the firm focuses on high production efficiency, low costs, and mass distribution.

5. What is the 'societal marketing concept' in banking?

   It holds that the bank should deliver customer satisfaction and value while also preserving or enhancing the long-term well-being of society (e.g., financial inclusion, ethical/Islamic finance, environmental responsibility).

6. What are the two broad components of the marketing environment?

   The micro-environment (internal forces close to the firm: company, suppliers, intermediaries, customers, competitors, publics) and the macro-environment (broad societal forces affecting all firms).

7. List the six macro-environmental forces analysed using the PESTEL framework.

   Political, Economic, Social (demographic/cultural), Technological, Environmental (ecological), and Legal forces.

8. In a bank's micro-environment, who are the key actors?

   The bank itself (internal departments), suppliers, marketing intermediaries, customers/markets, competitors, and publics (e.g., regulators, media, community).

9. What is the difference between 'controllable' and 'uncontrollable' environmental factors?

   Controllable factors are the firm's own decisions (the marketing mix - product, price, place, promotion). Uncontrollable factors are external macro forces (economic, political, technological, etc.) the firm must adapt to.

10. State the four distinctive characteristics (the '4 Is') of services that distinguish them from goods.

    Intangibility, Inseparability, Variability (heterogeneity), and Perishability.

11. What does 'intangibility' of a financial service mean and one way to overcome it?

    Services cannot be seen, touched, or stored before purchase. It is overcome by 'tangibilising' the service through physical evidence - branches, documents, branding, staff appearance, and testimonials.

12. What does 'inseparability' mean in services marketing?

    Services are produced and consumed simultaneously, so the service provider (and often the customer) is part of the service; production cannot be separated from consumption.

13. What is 'perishability' of services and how do banks manage it?

    Services cannot be stored for later sale or use. Banks manage it by matching supply and demand through staff scheduling, queue management, ATMs/online channels, and differential pricing.

14. What are the additional '3 Ps' of the extended services marketing mix (7 Ps)?

    People, Process, and Physical evidence (added to Product, Price, Place, Promotion).

15. Define 'market segmentation'.

    The process of dividing a heterogeneous total market into smaller, homogeneous groups of customers with similar needs, characteristics, or behaviours who may require distinct products or marketing mixes.

16. List the four main bases used to segment consumer financial markets.

    Geographic, Demographic, Psychographic, and Behavioural segmentation.

17. What are the requirements for effective market segmentation (the criteria a segment must meet)?

    Segments must be Measurable, Accessible (reachable), Substantial (large/profitable enough), Differentiable, and Actionable.

18. What are the three main target-market coverage (targeting) strategies?

    Undifferentiated (mass) marketing, Differentiated (segmented) marketing, and Concentrated (niche) marketing.

19. Define 'positioning' of a financial product.

    Positioning is the act of designing the bank's offer and image to occupy a distinctive and valued place in the minds of target customers relative to competing products.

20. What is a 'perceptual map' used for in positioning?

    A perceptual map visually plots how customers perceive competing products on key attributes (e.g., price vs. service quality), helping identify positioning opportunities and gaps in the market.

21. What is a Unique Selling Proposition (USP) in financial product positioning?

    The distinctive benefit or feature that sets a product apart from competitors and gives customers a compelling reason to choose it (e.g., lowest fees, fastest approval, Shariah compliance).

22. Name the five competitive forces in Porter's Five Forces model.

    Threat of new entrants, Bargaining power of suppliers, Bargaining power of buyers, Threat of substitute products/services, and Rivalry among existing competitors.

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