Identify and review some of the strategies which the company uses to deal with the difficulties presented by the specific features of financial services marketing.
Marketing is widely recognized as being a key to success for any organization, irrespective of its size or the sector of the economy in which it operates(Ennew, 1995). The development of marketing in financial service has been slow for a long time. However, since 1970s, financial services have evolved in a large scale(Falconer, 2011). There are some specific features of financial service marketing, namely, intangibility, inseparability, heterogeneity and perishability, with growing attention focused on marketing needs in financial services sector, some new characteristics were added, that is, fiduciary responsibility, two-way information flows(Mckechnie, 1992) and contingent consumption, duration of consumption(Ennew, 2007). In this essay, I will describe intangibility and inseparability in detail and take an insurance company as a example to show what strategies they use to deal with the difficulties brought by the two specific features.
Firstly, the most obvious trait is intangibility. In our life, people take tangibility for granted, customers can search information of commodities, have sample goods, evaluate them before buying. Unlike most tangible purchases, services can not be touched, tasted and tried(Falconer, 2011). In fact, services can be explained as an experience which evaluated by the people who have bought it. The marketing size of financial service can be influenced a lot by customers’ judgment and recommendation. Therefore, “word of mouth” is very important within financial service sector(Falconer, 2011). For providers, there are some difficulties they have to consider. For example, how to attract customer quickly and effectively, how to explain the merits of intangibility clearly for customers, how to be outstanding within an intense competition...
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