Marketing Financial Services

1. Unit 20 Marketing Financial Services Facilitator Support Materials for Marketing Financial Services

2. Unit Aim The aim of this unit is to enable learners to apply marketing theory to the financial services sector. This unit is 20 Guided Learning Hours

3. Unit Description In this unit the learner will be introduced to marketing financial services and how this differs from selling financial services. Market segmentation and research will be investigated, as will product development and advertising. The unit will be concluded by looking at the use of databases to codify and store market information and how the Data Protection Act 1998 impacts on this.

4. Unit Description continued • At the end of the unit, the learner will be able to differentiate between marketing and selling, explain how market segmentation techniques can be used to predict the behaviours of particular groups, explain the purpose of carrying out market research and differentiate between primary research and secondary research, explain the process of product development, list the different types of advertising used by organisations and explain the rationale behind the choice of media, explain the use of databases in market research and product promotion and list the main features of the Data Protection Act 1998 and explain how data protection operates in practice.

5. Unit Description continued • For those learners working in a financial service’s marketing department this unit will be highly relevant. For others working in the financial services industry, the unit will be vocationally relevant as it will give them a greater appreciation of the reasons why a particular product or service is currently being marketed by their particular institution.

6. Learning Outcome1: Understand marketing and selling Amplification of the Learning Outcome: Marketing: the provision of products (services) that meet the customers’ needs; right time; right place and the right price Selling:matching the needs of the individual customer to the right product (service) drawn from the range of products available within the organisation

7. Assessment Criteria for Learning Outcome 1 Assessment Criteria: 1.1 Discuss marketing in the financial services context Open discussion with Learners 1.2 Discuss selling in the financial services context Open discussion with Learners 1.3 Describe the key differences between marketing and selling Open discussion with Learners

8. Learning Outcome 2: Understand market segmentation techniques Amplification of the Learning Outcome: Market segmentation techniques: uses; socio-economic groupings; acorn analysis and life cycles

9. Assessment Criteria for Learning Outcome 2 Assessment Criteria: 2.1 Explain how market segmentation techniques can be used to predict the behaviours of particular groups Open discussion with Learners 2.2 Discuss the characteristics of target groups that would be used when marketing financial services Open discussion with Learners

10. Learning Outcome 3: Understand market research, product development and advertising Amplification of the Learning Outcome: Market research: purposes; primary research; secondary research; sources of research eg consumer research, examination of internal records, quota sampling, government statistics, trade directories and Chamber of Commerce information

11. Amplification of the Learning Outcome Continued: • Product development: reasons for product development; new products; discontinuing products; new delivery channels; amending price of product and methods of amending price • Advertising: as a component of marketing; forms of advertising, organisational, product awareness, product differentiation; target audience; types of media, publications, direct mail, leaflets, brochures and measuring effectiveness

12. Assessment Criteria for Learning Outcome 3 Assessment Criteria: 3.1 Explain the purpose of carrying out market research Open discussion with Learners 3.2 Explain the differences between primary and secondary research Open discussion with Learners

13. Assessment Criteria for Learning Outcome 3 continued • 3.3 Summarise the process of product development • Open discussion with Learners • 3.4 Explain the rationale behind the choice of types of advertising • Open discussion with Learners

14. Learning Outcome 4: Understand the use of databases in market research and product promotion Amplification of the Learning Outcome: • Databases: codifying market information; storing market information; value to successful advertising campaigns

15. Assessment Criteria for Learning Outcome 4 Assessment Criteria: • 4.1 Explain the use of databases in market research • Open discussion with Learners • 4.2 Explain the use of databases in product promotion • Open discussion with Learners

16. Learning Outcome 5: Understand the impact of Data Protection legislation on the use of databases for market research and product promotion Amplification of the Learning Outcome: • Data Protection Legislation: relevant legislation, eg Data Protection Act 1988 • Data Protection: data protection principles; definitions used in the Act for Data, personal data, sensitive data, data controller, data subject, processing data

17. Assessment Criteria for Learning Outcome 5 Assessment Criteria: • 5.1 Explain the main features of data protection legislation • Open discussion with Learners • 5.2 Explain how data protection operates in the financial services context • Open discussion with Learners • 5.3 Discuss how data protection legislation impacts on the use of databases in the financial services sector • Open discussion with Learners

18. Appropriate Books Diploma in Financial Services — Sales and Service, chapter; Marketing, pages, 166-178 Diploma in Financial Services — Sales and Service, chapter; Legislation and Regulation, pages, 197-198

19. Appropriate websites www.bba.org.uk www.bsa.org.uk www.cim.co.uk www.fsa.gov.uk www.statistics.gov.uk www.ukpayments.org.uk