PEOPLE IN FINANCIAL SERVICES
Ing. Kateřina Matušínská, Ph.D.
MARKETING OF FINANCIAL SERVICES/NAMAF
OUTLINE OF THE LECTURE
1. Human factor in FS
2. Internal marketing
3. Multilevel marketing
4. The importance of personal selling
PEOPLE IN FINANCIAL SERVICES
1. HUMAN FACTOR IN FINANCIAL SERVICES
• Participation of employees:
• Employees FRONT OFFICE (first line)   fluctuations.
• Employees BACK OFFICE (second line)   fluctuations.
• Participation of customers:
• The role of financial services co-producers.
• The role of financial services users.
• The role of financial services informant (WoM).
PEOPLE IN FINANCIAL SERVICES
2. INTERNAL MARKETING
• Internal marketing is ongoing process that occurs strictly within a
company or organization whereby the functional process is to
aligns, motivates and empowers employees at all management
levels to consistently deliver a satisfying customer experience.
• Every business has at least two types of customers: internal and
external. While companies usually focus on the external
customers - the people who purchase their products and
services - internal customers are also important.
• Internal customers are the employees that work for the
company. Regardless of their job function, they rely on other
employees, teams, and the company for support and
information. As a result, marketing to these internal customers is
a vital aspect to the effectiveness of a company.
PEOPLE IN FINANCIAL SERVICES
INTERNAL MARKETING
Source: https://www.processon.com/view/50de90e50cf2308b79cb1750
PEOPLE IN FINANCIAL SERVICES
ASPECTS OF INTERNAL MARKETING
• Every employee and every department in the company
plays a dual role of internal customers and internal
suppliers.
• All employees must work in a way that is consistent with the
corporate mission, strategy and defined goals.
• Part of HR.
PEOPLE IN FINANCIAL SERVICES
CORRECT INTERNAL MARKETING
• Increase in effective internal communication.
• Greatly increase in the employees´ working efficiency and
their morale.
• It also strengthens the corporate culture.
• Increase in the competitiveness of the company.
• Finally, it also saves the costs.
„Satisfied employees serve their customers better than a
disgruntled employee.“
PEOPLE IN FINANCIAL SERVICES
PEOPLE IN FINANCIAL SERVICES
GENERAL CATEGORIZATION OF EMPLOYEES IN
FINANCIAL SERVICES
A. According to the scope of powers and responsibilities
• Top management level - top management
• Middle management level - directors of branches
• Lower management level – department manager
• Operational level - employees
PEOPLE IN FINANCIAL SERVICES
GENERAL CATEGORIZATION OF EMPLOYEES IN
FINANCIAL SERVICES
B. According to the involvement of employees in the sales
process
• immediate - people whose main role is to initiate and
maintain relationships with clients  FRONT OFFICE
• mediated - bank employees whose function is to support
workers who are in direct contact with clients  BACK
OFFICE
PEOPLE IN FINANCIAL SERVICES
GENERAL CATEGORIZATION OF EMPLOYEES IN
FINANCIAL SERVICES
C. According to the frequency of contact with the client and
participation in regular marketing activities
Direct relation to
marketing mix
Indirect relation to
marketing mix
Frequent contact with
customer
Contact staff Operating staff
None or sporadic
contact with customer
Conceptual staff Supportive staff
PEOPLE IN FINANCIAL SERVICES
2. MULTILEVEL MARKETING
• Direct sales using the distribution net of independent distributors,
which step by step recruit, train and motivate next sellers.
• In MLM organisation each salesperson has two areas of
responsibility, first to sell the product to family, friends and work
colleagues and second to recruit more salespeople.
• Each salesperson is paid on a commission-only basis, with no
basic salary.
• Advantages (customer and salesperson).
• Multilevel marketing can be implemented very easily in financial
services (various kinds of insurance, etc.).
PEOPLE IN FINANCIAL SERVICES
MULTILEVEL MARKETING SCHEME
PEOPLE IN FINANCIAL SERVICES
3. THE IMPORTANCE OF PERSONAL SELLING
• Personal selling is the process of influencing the customer
through personal contact (element of marketing communication
mix).
• Seller abilities (persuasiveness, ability of observation, the
ability to influence behaviour, speech,...) x seller properties
(initiative, judgment, sense of commerce, ...).
• Advantages: impact, targeting, interactivity, relationships, ...
• Disadvantages: cost, reach and frequency, control, ...
PEOPLE IN FINANCIAL SERVICES
EFFECTIVE PERSONAL SELLING
Nature of salesperson customer
relationship:
• Quality of relationship
• Relative power/dependence
• Level of cooperation/conflict
• Expectations
Behaviour of salesperson:
• Cultural awareness
• Adaptation to customer
• Relationship vs. Deal orientation
• Usage of influential technique
Resources of salesperson:
• Training/analytic skills
• Product/customer knowledge
• Available alternatives
• Company image/profile
Nature of customer buying task:
• Needs and believes
• Relationship vs. deal orientation
• Available alternatives
• Importance of buying taste
THE IMPORTANCE OF PERSONAL SELLING
PEOPLE IN FINANCIAL SERVICES
4. THE IMPORTANCE OF NONVERBAL COMMUNICATION
• Type of personal communication: verbal x nonverbal (facial
expressions, haptics, kinesics, proxemics, gesture, …)  incongruence
(inconsistency between verbal and nonverbal communication)
• Halo effect (55 % appearance, 38 % voice, 7 % of communication
content)!
• Importance of non-verbal communication (body language):
• 7% - textual behaviour (material content words)
• 38% - vocal behaviour (the melody and rhythm of speech)
• 55% - facial behaviours (facial expression, speech of the human
body)
• Over 700 000 possible physical signals can be sent through
body movement alone. 60 to 75 % of all meaning is
communicated non-verbally. Non-verbal communication is the
primary means of forming first impression.
PEOPLE IN FINANCIAL SERVICES
THE IMPORTANCE OF NONVERBAL COMMUNICATION
• Nonverbal communication is the process of transmitting
messages without spoken words, sometimes called body
language.
• Body movements, facial expressions and gestures, various
acoustic properties of speech such as tone, accent, the role of
eyes, handshakes, holding hands, kissing, the perception of
physical space, …
PEOPLE IN FINANCIAL SERVICES