‘On-brand banking’: An examination of the factors contributing to effective branding and brand development through direct marketing in the consumer financial services sector

The services sector now accounts for more than two-thirds of GNP in the UK and yet much of the work on branding is based on fast-moving consumer goods. This paper presents key factors for effective brand and brand loyalty building in financial services direct marketing and examines why these success factors may be missing from most financial services direct mail. The issues are examined here from a direct marketing (DM) agency and DM brand experts' perspective. Key objectives for successful branding in financial services direct marketing emerge. Barriers believed to be preventing the consumer financial services sector from using the direct marketing medium to its full brand-building potential are reported and recommendations are made for overcoming some of these problems.     

The theoretical underpinnings of government policy,turbulence and performance in the service sector: a conceptual framework

The objective of this paper is to provide a theoretical framework to study the relationship between host country government policy, market and technological turbulence, competitive intensity and export marketing performance in the financial services sector using Dunning’s (J Int Bus Stud 11(1): 9–31, 1980) eclectic paradigm. A literature review is used to define and set out the main conceptual framework and propositions for further research. A better understanding of the factors that contribute to export marketing performance success in the financial services sector is provided. The managerial implications of such a study would be to provide important knowledge or understanding for international business practitioners in the financial services sector. Such a study could also confirm the role that host country governments play in the performance of export ventures in the financial services sector and could make financial services exporters aware of the significance of environmental turbulence and its impact in the global market place.     

Financial service elimination: Objectives and problem situations

Despite the importance of financial institutions' ability to rationalise their service ranges in today's competitive environment, the area of financial service elimination decision making is one of the least researched in the literature on services marketing. This paper reports preliminary empirical research into the objectives that British financial institutions pursue by eliminating financial services, as well as into the problem situations that make financial services candidates for elimination. The findings suggest that there is a wide array of service elimination objectives and problem situations. It is also suggested that there is a need for financial institutions to distinguish between what is their service elimination objective and what is the problem situation that makes them examine a financial service for possible elimination. The practical and theoretical implications that are discussed at the end of this paper point to the need for more empirical research, if the body of knowledge on service elimination is to grow.     

Consent to direct marketing in the financial services sector

The development of communications technology in recent years has led to an expansion in ‘cold calling’, particularly as a means of selling financial services. While encouraging new entrants into the market and thereby increasing consumer choice and competitive prices, this is often viewed as an infringement of personal privacy. This paper attempts to reconcile the complex legal framework that has been put in place to restrict the use of unsolicited direct marketing and to show how, through the use of a carefully drafted data protection notice, the direct marketing of financial services may be conducted lawfully.     

Attraction of marketing and sales professionals in the financial services industry: An analysis of pre-, during and post-financial crisis job postings

Attracting talent is key to a successful sales force, and financial services firms have long used online recruiting to achieve this. However, little is known about how firms attract financial services marketing and sales professionals. In this study, we present a content analysis of job postings for sales and marketing positions in the financial services industry that were posted before, during and after the financial crisis of 2008. Specifically, job postings in the United Kingdom and United States in 2006, 2009 and 2013 were examined. Implications for financial services firms are discussed.     

A survey of key success factors in financial services marketing and brand management

What challenges and opportunities do financial services marketers face as they strive to improve marketing and brand performance, relevance, value and accountability within their organisations? To help answer this question, MCorp., a strategic brand and marketing consultancy, surveyed marketing executives from 67 financial services institutions across the USA in the autumn of 2004. The survey grouped responses into several categories, ranging from an understanding of how marketing and brand performance is tracked, to respondents' views on specific challenges to improve marketing and branding effectiveness. Across all categories, data drove two ‘big-picture’ conclusions which reveal key strategic issues facing financial services marketers today. First, there is a stated lack of brand and marketing performance information, and an absence of the systems and programmes to track it. Secondly, there is a perceived lack of top-down organisational understanding of the importance, value and meaning of brand within respondent organisations. Within the overall context of these conclusions, analysis led to a series of key findings, and drove specific recommendations for addressing the issues raised. While the illustrations given are based on data gathered from institutions in the USA, the author's experience suggests that the conclusions and attendant recommendations can serve as a basis for process and performance improvement in any financial services institution.     

A model of green bank marketing

In the light of current market conditions, the financial services industry has been reshaped, requiring new marketing knowledge to provide guidelines for successful practice. To that end, corporate social responsibility, green marketing and a green brand image (GBI) have attracted considerable interest in the banking sector, although no framework has yet been established relating these constructs to one another. In this article, the authors present exploratory research as a basis for developing a model of green bank marketing. The model was tested to confirm the dimensions of green bank marketing and investigate its impact on a GBI, thus providing statistical evidence of the relationship between the two variables.     

Why are some modes of acquisition more profitable? A study of the credit card industry

A key challenge in financial services marketing is attracting good customers to the firm. For most financial services firms, including credit card firms, a good customer is also a profitable customer. Managers would like to use marketing tactics that attract the most profitable customers while closely monitoring and perhaps limiting expenditures on marketing tactics that tend to attract relatively less profitable customers. Therefore, managers need to understand the relative effectiveness of different modes of new account acquisition and the impact that the various modes of acquisition may have on overall account profitability. To date, there have been very few studies that have calculated individual level customer profitability and then investigated the relationship between new customer acquisition source and customer profitability. That is, how do modes of acquisition differ in their ability to attract profitable customers? We answer this question using a proprietary and novel data set from the credit card industry. Of the four modes of acquisition used in this industry, we find that Internet and direct mail efforts generate more profitable customers than telemarketing and direct selling. We provide possible explanations for these findings. Our work adds to the growing literature in customer relationship management and our results have important managerial implications for resource allocation among acquisition strategies.     

Brand portfolio options for the UK retail banks

Following deregulation in the late 1980s, many financial service companies rapidly grew their product portfolios. Developing these extensive portfolios has raised complex issues for financial service companies regarding how the new products and services should be marketed and, in particular, how they should be branded. This paper seeks to identify the relevant issues concerning the marketing and branding of large portfolios of financial service products. Using the brand portfolio model developed by Aaker and Joachimsthaler,¹ the paper analyses the brand portfolio strategies adopted by the UK's leading retail banks (Barclays, Lloyds TSB, NatWest/RBS and HSBC). The paper concludes that given the complexity of branding as a concept and in predicting how consumers will respond, ultimately all financial services need to experiment more both with how individual brands are positioned and advertised and what portfolios are optimal.     

Developing an index of online customer satisfaction

This paper integrates and applies the concept of ‘satisfaction’ from three fields: management information systems (MIS), marketing and e-commerce. E-customers are viewed as both computer users and customers and as a result researching customer satisfaction in e-commerce needs to integrate aspects of satisfaction from each of these fields. This study defines e-customer satisfaction and develops an index using a weighted sum model. The index is tested using a Korean sample. Analyses suggest an acceptable model and a generalisable set of measures from which managers and researchers evaluate online satisfaction and, especially, marketing strategies in financial services industries.     

Independent financial adviser (IFA)-based brand equity pyramid

This paper aims to evaluate the applicability of the existing brand equity pyramid models in the context of independent financial advisers (IFAs) in the UK financial services sector. Nine in-depth interviews with IFAs and nine in-depth corroboration interviews with senior marketing managers and employees in one of the UK’s largest financial services providers were undertaken for the purpose of the study. The findings indicate that when applied in the context of IFAs, the existing brand equity pyramid models require modification. These findings lead to the development of an IFA-based brand equity pyramid. The new model can provide insight for financial services marketing academics and practitioners on how IFAs perceive and evaluate financial services brands to be recommended to their customers. Our findings will help financial services providers to develop strong brands in the mind of IFAs.

     

Elderly consumers and financial choices: A systematic review

The purpose of this paper is to investigate elderly choices and behaviors in financial services markets. A systematic review of a five-decade period (1970–2019) of academic research in the marketing field was carried out in order to identify elderly consumers’ decisions regarding financial asset management and legacy, highlighting the main findings of extant research and practical implications for marketers. Results shed light on financial asset management in terms of welfare, retirement planning, and investments for old age, as well as legacy practices in terms of special possessions, charities, and rites of passage. The study underlines the need to consider the heterogeneous nature of elderly consumers’ values and lifestyles in designing strategies for financial services and products, emphasizing that demographic differences alone are not adequate to effectively define market segments. Furthermore, the role of mixed marketing approaches considering elderly choices are discussed, together with implications for companies that want to target such consumer target.

     

The influence of marketing communications strategy on consumer purchasing behaviour in the financial services industry in an emerging economy

The financial services sector is characterised by a high level of consumer perceived risk and irrational behaviour in decision-making, which is predominantly influenced by the effect of communication and the application of heuristics as a function of communication in consumer decision-making. This situation promotes marketing communication as one of the most essential activities that financial institutions rely on to mitigate the perceived risks and to satisfy consumers’ quest in understanding financial products. Hence the importance of this research is to establish the effects of marketing communication on consumer purchasing behaviour in emerging economies that are experiencing expanded financial markets but limited corresponding research insight. To achieve the aim of this study, the research uses data from 360 customers of selected financial institutions in Ghana. The hypotheses are tested using the structural equations modelling technique. The results of the study reveal marketing communication strategies evaluated have positive and significant impacts on consumer purchase behaviour. However, amongst the marketing communication strategies tested advertising and celebrity endorsement were found to have an insignificant relationship with consumer purchase behaviour. The study offers practical and theoretical insights into understanding the dynamics and nuances of the integrated marketing communication mix and how they influence the purchase behaviours of consumers.

     

The potential impact of new technology and European mail deregulation on financial services marketers

This paper identifies the problems and opportunities presented to financial services marketers by European mail deregulation and the advent of new document technology in 2003. It explains the theory and current reality of mail deregulation in the UK and explains the timetable for its introduction. It goes on to explore the opportunities deregulation will create for more targeted direct marketing and even one-to-one marketing through new services and technology. It concludes that the financial services companies that utilise these new opportunities earliest to meet the needs of their customers will benefit most in both brand and net revenue terms.     

Key account management in financial services: An outline research agenda

The forces of deregulation and technological development have created a highly competitive environment in financial services. Despite the quest for business-to-business service efficiency, most financial services companies know that they must not lose sight of the importance of relationship quality. As a result, there is growing interest in key account management (KAM) in these companies. Research on KAM in general is limited and little has been undertaken in financial services. There are several reasons why KAM practice in financial services may be distinctive: the regulatory environment; the sector's size and diversity; the high degree of intermediation; product diversity and complexity; uncertainty of product performance; the problem of measuring profitability; the challenges of interactive marketing using both traditional face-to-face and complementary direct marketing techniques; and the role of technology in delivery. A research agenda for KAM in financial services is proposed. It is argued that more knowledge in this area would be of benefit to customer relationship management (CRM) research and to practising managers implementing KAM.     

The role of attitudinal loyalty in the development of customer relationship management strategy within service firms

To facilitate the management of customer relationships, software manufacturers have developed customer relationship management (CRM) systems. These are enterprise-wide applications that can provide a single view of any customer's interactions with the company by tracking communications from both sides, recording purchases and thus developing an understanding of each customer's preferences. The need to generate behavioural loyalty has been identified as one of the major drivers for implementing CRM systems. There is relatively little research on attitudinal loyalty and CRM, however, with the bulk of the research conducted so far being focused on behavioural loyalty. The emphasis on behavioural loyalty has led to CRM being used to develop behavioural loyalty strategies. Generally speaking these strategies involve creating loyalty programmes, where incentives are offered to generate repeat purchase, or to sell more of the organisation's products and services to existing customers. The purpose of this research is to investigate the objectives and strategies of CRM in the finance industry and to compare these with the CRM objectives and strategies found in other service industries. The authors investigate to what degree the development of attitudinal loyalty is a factor in the creation of CRM strategy. This study is a qualitative study made up of 25 one-hour interviews with marketing and CRM managers. These 25 interviews consist of 11 interviews from the finance industry and 14 interviews from other industries as comparators. The results will be presented and contributions, limitations and suggestions for further research discussed.     

On governance structures for the cloud computing services and assessing their effectiveness

This research suggests information technology (IT) governance structures to manage the cloud computing services. The interest in acquiring IT resources as a utility from the cloud computing environment is gaining momentum. The cloud computing services present organizations with opportunities to manage their IT expenditure on an ongoing basis, and access to modern IT resources to innovate and manage their continuity. However, the cloud computing services are no silver bullet. Organizations would need to have appropriate governance structures and policies in place to manage the cloud computing services. The subsequent decisions from these governance structures will ensure the effective management of the cloud computing services. This management will facilitate a better fit of the cloud computing services into organizations' existing processes to achieve the business (process-level) and the financial (firm-level) objectives. Using a triangulation approach, we suggest four governance structures for managing the cloud computing services. These structures are a chief cloud officer, a cloud management committee, a cloud service facilitation centre, and a cloud relationship centre. We also propose that these governance structures would relate directly to organizations' cloud computing services-related business objectives, and indirectly to cloud computing services-related financial objectives. Perceptive field survey data from actual and prospective cloud computing service adopters suggest that the suggested governance structures would contribute directly to cloud computing-related business objectives and indirectly to cloud computing-related financial objectives.     

农行拓展个人金融业务的探讨

个人金融业务已成为商业银行实现盈利的重要渠道,是入世后中外银行竞争的焦点。农行应利用自身的优势,制定个人金融业务优先发展的战略,通过借鉴国外先进经验,加大金融业务的品种创新和营销力度,实行差异化服务等,以个人金融业务作为业务发展的突破口。     

Brand positioning in financial services: A longitudinal test to find the best brand position

Brand positioning is a core activity of most marketing departments. In this paper, the relationship between six different positions and customer vulnerability is tested over time in the business financial services market. Two particular attributes relating to fees and charges and relationship/service were found to have strong relationships with customer vulnerability, both across brands and over time. This research suggests that the ’better‘ brand positions, as defined here, can be common across brands. Therefore, marketing managers of financial services should perhaps not be striving for a unique position for the brand, but aim for distinctiveness in the way the position is communicated. Research techniques to identify ’better‘ positions should also not assume that these ’better‘ positions will be those that differentiate between brands.     

Internal marketing and employee commitment: Evidence from the Ghanaian banking industry

Attracting the right mix of employees and getting them committed to the goals and objectives of the organization is a major issue facing service organizations. Scholars have recommended that internal marketing is positively associated with employee commitment but little empirical research exists that has examined the relationship between internal marketing and employee commitment especially in the financial services sector. The current study investigated four internal marketing practices – empowerment, rewards, training and development, and communication and their impact on employee commitment in the retail banking industry. Using data from 410 employees of banks in Ghana, the empirical results indicated that, with the exception of communication, the factors are positively associated with employee commitment. The study concludes that in order to influence employee behaviour in the banking industry in Ghana, bank management must implement measures that provide direct benefits to employees. The strategic implications of the findings are discussed in the article.