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A study on financial_services

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The financial services environment
Learning outcomes
At the end of the chapter the student will:
Comprehend the key external influences in the marketing of
financial services,
Appreciate the importance of environmental scanning in the
marketing of financial services,
Integrate a stakeholder perspective into environmental scanning
Lecture structure
Environment of financial services
Macro-environment: model and variables
Stakeholder environment: importance of stakeholder approach
Contribution of scanning to marketing planning
Background to UK financial services environment
United Kingdom background
o one of the most competitive, efficient and secure banking
systems in the world and
o one of the cheapest countries in the world to bank with ‘free
if in credit’ banking (www.bba.org.uk).
In 2008 witnessed a global financial crisis
o largely attributed to high risk lending e.g. ‘toxic mortgage-
backed assets
o Crisis originated in the United States but spread rapidly to the
United Kingdom and other European countries. Iceland,
Lithuania brought to brink of collapse. UK still in recession in
later 2009.
Banks considered too ‘big’ to fail and propped up by governments.
Little evidence of changes in behaviour in late 2009.
Environmental scanning

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Sound marketing strategies result from understanding company
environment
Achieved through environmental scanning.
o to scan in a systematic way the environment in which they
operate, such as PEST (Kotler et al. 2008) or STEP (Brassington
and Pettitt 2006)
o which are acronyms covering similar elements:
political/regulatory, economic, social/cultural and
technological (see Figure 2.1).
Financial services operate in a global marketplace with transactions
take place across continents all the time, banks provide funds to each
other to lend on and large companies operate across the world and
need the financial infrastructure to support their activities.
A systematic framework is needed that serves to remind financial
service companies of the world in which they operate, encouraging
them to look outside their immediate environment, which might
prompt a more objective evaluation of their business situation.
Macro-environment
Macro-environment: various models but the four-
step model of STEP or PEST is used here, as follows:
o Political & regulatory: governments, regulatory bodies,
international agreements
o Economic: Eurozone, exchange rates, levels of debt
o Socio-cultural: attitudes towards debt, social diversity,
sustainability
o Technology: new product development, growth of new
channels
The aim is to provide a means for systematically scanning the
environment
Political & regulatory environment
Reasons for providing
a regulated environment for financial services:
o To protect the investor: quality of many financial
instruments not easily assessed; investor must be made

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The financial services environment Learning  outcomes  At the end of the  chapter the student will: Comprehend the key external influences in the marketing of financial services, Appreciate the importance of environmental scanning in the marketing of financial services, Integrate a stakeholder perspective into environmental scanning Lecture  structure  Environment of  financial services Macro-environment: model and variables Stakeholder environment: importance of stakeholder approach Contribution of scanning to marketing planning Background  to UK financial services environment  United Kingdom  background one of the most competitive, efficient and secure banking systems in the world and one of the cheapest countries in the world to bank – with ‘free if in credit’ banking (www.bba.org.uk). In 2008 witnessed a global financial crisis largely attributed to high risk lending e.g. ‘toxic mortgage-backed assets’ Crisis originated in the United States but spread rapidly to the United Kingdom and other European countries. Iceland, Lithuania brought to brink of collapse. UK still in recession in later 2009. Banks considered too ‘big’ to fail and propped up by governments. Little evidence of changes in behaviour in late 2009. Environmental  scanning  Sound marketing  strategies result from understanding company  environment  Achieved through environmental scanning. to scan in a systematic way the environment in which the ...
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