JAIBP Marketing of Financial Services Syllabus

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).

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.

What are Porter's three generic competitive strategies?

Cost leadership, Differentiation, and Focus (niche).

In competitive positioning, what are the four competitive market roles a bank may play?

Market leader, Market challenger, Market follower, and Market nicher.

What does a SWOT analysis examine?

Internal Strengths and Weaknesses of the firm, and external Opportunities and Threats in the environment.

What are the three levels of a product (the 'product concept' levels)?

Core product (core benefit), Actual product (features, brand, quality), and Augmented product (added services such as after-sales support, guarantees, advice).

List the five stages of the Product Life Cycle (PLC).

Introduction, Growth, Maturity, Decline (preceded by Product Development).

Name three common pricing strategies for new financial products.

Market-skimming pricing (high initial price), Market-penetration pricing (low price to gain share), and Value-based pricing (price set on perceived customer value).

What is 'cost-plus' (mark-up) pricing?

Setting price by adding a standard mark-up or margin to the cost of providing the service.

In banking, what is the 'spread' as a pricing concept?

The spread is the difference between the interest rate a bank charges on loans (lending rate) and the rate it pays on deposits (borrowing rate); it is a key source of bank income.

Define 'distribution channel' (place) in financial services.

The set of pathways and intermediaries through which a financial product or service is made available and delivered to customers.

List the main delivery channels used by modern banks.

Branch network, ATMs/CDMs, internet banking, mobile/app banking, telephone/call centres, agents/branchless banking, and POS terminals.

What is the difference between a 'direct' and an 'indirect' distribution channel?

A direct channel delivers the service straight to the customer (e.g., own branches, website). An indirect channel uses intermediaries such as agents, brokers, or bancassurance partners.

What is 'multi-channel' (omni-channel) distribution?

Offering customers several integrated channels (branch, ATM, online, mobile, call centre) so they can access services seamlessly through their preferred channel.

What are the elements of the promotion mix (marketing communications mix)?

Advertising, Sales promotion, Personal selling, Public relations (PR), and Direct & digital marketing.

What does the AIDA model of communication stand for?

Attention, Interest, Desire, and Action - the sequence of stages a promotional message should move a customer through.

What is the difference between 'advertising' and 'public relations'?

Advertising is paid, non-personal, sponsor-identified promotion through media. Public relations builds goodwill and image through largely unpaid editorial coverage, events, and communications, and is generally seen as more credible.

What is the difference between a 'push' and a 'pull' promotional strategy?

A push strategy promotes through intermediaries/sales force to push the product toward customers; a pull strategy targets end customers directly to create demand that pulls the product through the channel.

Define 'customer loyalty' in banking.

A customer's deep commitment to continue using a bank's products and services, reflected in repeat purchase, increased product holding, resistance to competitors, and advocacy.

What is the 'loyalty ladder' and its typical rungs?

A model showing relationship progression: Suspect to Prospect to First-time customer to Repeat customer to Client to Advocate (and finally Partner).

What is Customer Lifetime Value (CLV)?

The total net profit a customer is expected to generate over the entire duration of their relationship with the bank; it justifies investment in retention and loyalty.

Name the five dimensions of service quality in the SERVQUAL model.

Reliability, Assurance, Tangibles, Empathy, and Responsiveness (RATER).

What is the 'service quality gap' (Gap) model essentially about?

It identifies gaps between customer expectations and perceptions that cause poor service quality; the key Gap 5 is the difference between customer expected service and perceived (actual) service.

How is 'customer satisfaction' generally defined?

Satisfaction is the customer's feeling resulting from comparing a product's perceived performance against expectations: satisfied if performance meets/exceeds expectations, dissatisfied if it falls short.

What is the 'service recovery paradox'?

The phenomenon where a customer who experiences a service failure that is then excellently resolved may end up MORE satisfied and loyal than a customer who never had a problem.

Why is effective complaint handling important for retention? State the key principle.

Most dissatisfied customers do not complain but simply leave; resolving complaints quickly and fairly recovers customers, reduces defection, and turns complainers into loyal advocates. Retaining a customer is far cheaper than acquiring a new one.

What is a 'brand' and what is 'brand equity'?

A brand is a name, term, symbol, or design (or combination) identifying a seller's products and differentiating them from competitors. Brand equity is the added value/financial worth a strong brand name gives to a product.

List the typical steps of the marketing research process.

1) Define the problem & research objectives; 2) Develop the research plan; 3) Collect the data; 4) Analyse and interpret the data; 5) Present findings & make decisions.

What is the difference between 'primary' and 'secondary' data in marketing research?

Primary data is original data collected first-hand for the specific problem (surveys, interviews, observation). Secondary data already exists, collected earlier for another purpose (internal records, reports, published statistics).

What are the typical stages of the consumer buying-decision process?

Need recognition, Information search, Evaluation of alternatives, Purchase decision, and Post-purchase behaviour.

What is 'cross-selling' versus 'up-selling' in banking?

Cross-selling is selling additional, related products to an existing customer (e.g., insurance to a deposit holder). Up-selling is persuading a customer to buy a higher-value or upgraded version of a product (e.g., a premium account).

Define 'bancassurance'.

The arrangement whereby a bank distributes and sells insurance products through its branch network and channels, in partnership with an insurance company, earning fee/commission income and offering customers one-stop financial services.

List three common sales force structures used to organise a sales team.

Territorial (geographic) structure, Product structure, and Customer/market structure (with complex structures combining these).

What are the main steps in the personal selling process?

Prospecting & qualifying, Pre-approach, Approach, Presentation & demonstration, Handling objections, Closing the sale, and Follow-up.

What are the key tasks involved in sales force management?

Designing sales force strategy/structure, recruiting and selecting salespeople, training, supervising and motivating, setting quotas/compensation, and evaluating sales force performance.