MARKETING COMMUNICATION OF
FINANCIAL SERVICES
Ing. Kateřina Matušínská, Ph.D.
MARKETING OF FINANCIAL SERVICES/NAMAF
OUTLINE OF THE LECTURE
1. Marketing communication defining
2. Marketing communication mix
3. Advertisement
4. Sales promotion
5. Personal selling
6. Public relations
7. Direct marketing
8. Sponsorship
9. On-line marketing communication (social networks, web
presentation)
MARKETING COMMUNICATION OF FINANCIAL SERVICES
1. MARKETING COMMUNICATION DEFINING
• MC involves answering the following questions:
• who is the target audience?
• what should be communicated and?
• how should it be communicated?
• „Marketing smog“ – a negative aspect of contemporary MC!
• Marketing communication is an ever-changing field. New
theories, new techniques, cultural changes and technological
advances all combine to create a dynamic environment within
which marketers try to ensure that their messages get through
to their target audiences.
MARKETING COMMUNICATION OF FINANCIAL SERVICES
MARKETING COMMUNICATION DEFINING
• Larger sense: all planned and unplanned
communication in all contacts between company
and its present and potential customers (the product
package, brand perception, price, advertising, staff
behaviour, tradition of company, car fleet, branches
etc.)  Integrated Marketing Communication
(IMC)
• Narrow sense: marketing communication mix!
MARKETING COMMUNICATION OF FINANCIAL SERVICES
INTEGRATED MARKETING COMMUNICATION (IMC)
• The strategic analysis, choice implementation and control of all
elements of marketing communication which efficiently,
economically and effectively influence transactions between an
organization and its existing and potential customers.
• The American Marketing Association defines Integrated
Marketing Communications (IMC) as “a planning process
designed to assure that all brand contacts received by a
customer or prospect for a product, service, or organization
are relevant to that person and consistent over time.”
MARKETING COMMUNICATION OF FINANCIAL SERVICES
2. MARKETING COMMUNICATION MIX (MCM)
• Advertising
• Sales promotion
• Personal selling
• Public relations (P.R.)
• Direct marketing (DM)
• Sponsorship (new!)
• On-line marketing communication (new!)
MARKETING COMMUNICATION OF FINANCIAL SERVICES
BTL ATL
PUBLIC RELATIONS
DIRECT MARKETING
SALES PROMOTION
ADVERTISEMENT
• TV
• Press
• Radio
• Outdoor
• Indoor
• Internet
• Cinema
SPONSORSHIP, ON-LINE
MC
IMC= TTL
MARKETING COMMUNICATION MIX
MARKETING COMMUNICATION OF FINANCIAL SERVICES
3. ADVERTISING
• A paid insertion of a message in a medium. It is aimed at
the mass market.
YES Mass effect, allowing expressiveness and control over
the message.
NO Impersonal, no direct influence on purchase, difficult
measurement of response.
MARKETING COMMUNICATION OF FINANCIAL SERVICES
MEDIAL MIX
• Television, radio, print, outdoor advertising, indoor
advertising, internet, cinema, mobile phone, ambient
media, people (word of mouth, viral marketing, buzz
marketing), …
MARKETING COMMUNICATION OF FINANCIAL SERVICES
EMOTIONS IN ADVERTISING
• Emotional appeals attempt to stir up some negative or
positive emotions that will motivate purchase. Receivers are
involved in the plot of commercial message. They forget that
they watch commercial advertising. Receivers can remember
emotions better than logical arguments. Emotions require
less receivers´ effort. They don´t have to concentrate a lot.
• Humour, fear, happiness, erotic, music, warmth, drama, …
• Vampiric effect!
• The use of neuromarketing!
MARKETING COMMUNICATION OF FINANCIAL SERVICES
MESSAGE SOURCE IN ADVERTISING
• Message source – person who is involved in
advertising to spread some commercial message in
favour of some company, product, brand, …
• Experts who have specialized knowledge  doctors,
scientists, professors etc.
• Well-known persons who are familiar to the audience
(singer, actor/actress, sportsman/sportswoman etc.).
• Users of the product who are not well-known persons,
but they are representatives of the audience so that the
target markets can identify with them.
• Animated figures + animals
• Historical persons
MARKETING COMMUNICATION OF FINANCIAL SERVICES
4. SALES PROMOTION
• Activity designed to give a temporary boost to sales,
such as money-off coupons, free samples, two-for-the
price-of one promotions, free gifts, piggy-backing with
another product, lottery, multi-packing, events,
roadshow etc.
YES
Attracts attention and reaches an immediate
effect, initiates the purchase. It is flexible, variable
and can be easily combined with other
communication elements.
NO Easy to imitate by competitors, limited time of use.
MARKETING COMMUNICATION OF FINANCIAL SERVICES
TOOLS OF SALES PROMOTION
• POP/POS displays
• Merchandising
• 3D advertising
• Discounts
• 1+1
• Cross selling
• Loyalty programmes
• Competitions
• The testing free of charge
• Events (Road show)
• …
MARKETING COMMUNICATION OF FINANCIAL SERVICES
5. PERSONAL SELLING
YES
Allows a flexible presentation and getting an
immediate response, the possibility of using nonverbal
communication, interactivity.
NO
Costs per one contact substantially higher than in
other forms, it is not easy to recruit or train skilled
dealers (agents), possibility to reach limited number
of customers, more difficult control of agents.
• Face-to-face communications between buyers and sellers
designed to ascertain and meet customer´s needs on a oneto-one
basis (non-verbal communication!).
MARKETING COMMUNICATION OF FINANCIAL SERVICES
6. PUBLIC RELATIONS
• The planned and sustained effort to establish and maintain
goodwill and mutual understanding between an organisation
and its publics (press conference, annual reports, open door
day, social projects, ecological business, press release, human
relations etc.)
YES The high level of credibility, long-term effect.
NO PR can not be controlled as easily as other forms
of communication.
MARKETING COMMUNICATION OF FINANCIAL SERVICES
PUBLICITY
• Publicity ≠ Public Relations
• Publicity is a tool and target of PR.
• Creating favorable or unfavorable news stories about the
company and its products and activities.
• Publicity is an unpaid place in media which paid attention
to some company!
MARKETING COMMUNICATION OF FINANCIAL SERVICES
CORPORATE SOCIAL RESPONSIBILITY (CSR)
• CSR (corporate social responsibility) - the voluntary
integration of social and economic aspects into everyday
corporate operations and interactions with stakeholders
(supplier, customer, employee, shareholder, ...).
• Three levels of activities - economic activity of the company,
social development and environmental protection.
• voluntariness – all activities are performed voluntarily beyond
the scope of legal obligations.
• long-term character - CSR activities are realized in the long
term and do not end when a company is in a worse economic
situation.
• credibility - CSR contributes to strengthening of confidence in
company, activities must be transparent, durable.
MARKETING COMMUNICATION OF FINANCIAL SERVICES
CORPORATE IDENTITY X CORPORATE IMAGE
• Corporate identity is the outward manifestation of the
organisation, a visual means of identification.
• Corporate image is the rating of the company by
external and internal public.
MARKETING COMMUNICATION OF FINANCIAL SERVICES
7. DIRECT MARKETING
YES Effective targeting with the use of database, flexibility
and timeliness of advertising messages, measurable
response.
NO Costs associated with the acquisition of the database.
• An interactive system of marketing which uses one or more
advertising media to effect a measurable response and/or
transaction at any location. It is aimed at the individuals
(direct mail, telephone marketing, commercial e-mails etc.)
MARKETING COMMUNICATION OF FINANCIAL SERVICES
7. DIRECT MARKETING
• B2B (DM is effective!!!)
• B2C
• Disciplines for which the use of DM is effective (FITTT):
• finance (F) - banks, insurance companies, savings
banks,
• software and hardware companies, system integrators,
Internet service providers (IT),
• companies in the field of telecommunications services (T),
• courier services, airlines, travel agencies, car
manufacturers (T).
MARKETING COMMUNICATION OF FINANCIAL SERVICES
TOOLS OF DIRECT MARKETING
TOOLS
Unaddressable
Addressable
Direct
Response
Advertising
Catalogues Direct mail
Telemarketing
New
interactive
media (CD-ROM,
Internet, mobile phone,
…)
Personal sellingUnaddressable
distribution
MARKETING COMMUNICATION OF FINANCIAL SERVICES
8. SPONSORSHIP
YES Cheaper, possibility not to respect the legislation in
marketing communication.
NO Less effective if the field of sponsored activity is not
identical with the sponsor.
• The goal-directed financing of other subjects in order to create
and sustain goodwill (company image).
• Sponsorship x PR!
• Sponsorship fit!
• Cultural, sports, sponsorship of broadcasting, ...
• Ambush (Guerilla) sponsorship
MARKETING COMMUNICATION OF FINANCIAL SERVICES
9. ON-LINE MARKETING COMMUNICATION
YES
Accurate targeting, personalization, interactivity,
multimedia content usability, simple measurability of
effectiveness and relatively low costs.
NO Loss of identity, abuse etc.
• Online communications include for our purposes two large
areas - the company web presentation and social media.
MARKETING COMMUNICATION OF FINANCIAL SERVICES