DISTRIBUTION IN BANKING BUSINESS
Distribution in financial services marketing is concerned with how the service is delivered to the customer, making sure that it is available in a place, at a time and in a format that is appropriate and convenient for the customer. In a growing number of countries, the expansion of the financial services sector has been accompanied by a significant blurring of lines between different institutional types with, for instance, retail banks offering insurance products (bancassuarance), insurance companies offering bank accounts and supermarkets launching their own credit cards. As a consequence, individual organizations can no longer claim a distinctive market position based on the products they offer. Rather, they have had to rely on growing their understanding of customers and being responsive to their needs. Distribution has increasingly been recognized as a critical tool for building competitive advantage in the financial services marketplace. KEY FUNCTION OF THE MARKETING CHANNEL
Information: gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange Promotion: developing and spreading persuasive communications about an offer. Contact: finding and communicating with prospective buyers.
Matching: shaping and fitting the offer to the buyer’s needs, including activities such as manufacturing, grading, assembling, and packaging. Negotiation: reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred Physical distribution: transporting and storing goods.
Financing: acquiring and using funds to cover the cost of the channel work Risk taking: assuming the risks of carrying out the channel work MAJOR DISTRIBUTION CHANNELS IN BANKING BUSINESS:
Branch is a type of traditional channels associated with the headquarter system and...
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