Recently, there has been rapid evolution of the current world market. This is mainly attributed to the fact that education has improved and that very many people are becoming more and more knowledgeable and evident by the fact that there are a lot of new inventions that come up on almost a daily basis. Education and knowledge have led to the development of industries which produce a lot of goods and employ people. The individuals who are employed in those sectors, are always given some money for their hard work in production and selling of the products and services. The money is used by the people to purchase essential goods and services that both them and their families need on a day to day basis. The industries or individuals need to make sure that their products and services reach potential customers and maintain contact with them and the potential clients. This, therefore, means that the company has to do marketing. Marketing is the process by which the business displays the goods and services that they offer to the potential customers in a bid to persuade them to buy the products. Together with the use of internet in an attempt to reach a broad range of clients for a particular product creates “digital marketing.” This form of marketing is defined as the kind that uses digital technologies that operate mainly on the Internet making it very reasonable for financial companies to come up and look for a market for their products over the very many digital platforms that are available currently. The paper tries to outline just how effective digital marketing is in the attempt to capture most of the customers which would lead to greater profits.
Financial institutions are businesses that do different forms of financial transactions which include the acts of investing, loaning and safe keeping of money. Majority people have in one way or another dealt with financial institutions and their products.
Some of the institutions include:
Commercial banks are companies that accept deposits from their customers so as to provide for safe keeping convenience for their clients (Lange 45-70). The main purpose of banks has always been to provide customers with safe custody for their money. By having physical cash at home or in possession of the client, increases the chances of loss because to theft and accidents, not to mention the loss of possible income from interest.
These are businesses that work in the form of a speculative nature whereby they look for individuals who want to be protected from some uncertainty that lies in the future. The company collects money from individuals or businesses periodically over a certain number of years. These periodical payments are referred to as premiums. Incase of an event which the insured risk occurs, the individual is compensated. The forms of risk that people ensure against include loss such as a fire, car accident, illness, lawsuit, disability or death (Lange 45-70). By ensuring a large number of individuals, the insurance company makes money by creating a pool of risk. Due to this, only a few of the people insured will face the losses that they had insured against. This is how the insurance company makes its money.
A brokerage is a business that acts as an intermediary between buyers and sellers of a particular product. They only link the sellers to purchasers of products in an attempt to facilitate the transaction of securities (Lange 45-70).
Companies that allow people to place their money with them on a particular project in the hope of getting a much higher profit. Instead of individuals buying stocks, an investor can only buy securities through the mutual funds (Lange 45-70).
These institutions are not banks as such, but they do provide services like those of a bank.
Savings and loan associations, also called as S&Ls or thrifts, they operate as banks in a lot of ways. It is evident as even many consumers don’t know the differences between the commercial banks and the savings and loans associations. Basing on the current laws, savings and loan associations are required to have 65% or more of their lending in residential mortgages, although also other forms of credit are also allowed (Lange 45-70).
It was noted that these savings and loans companies come up due to the exclusivity of the commercial banks. Some claimed that commercial banks mainly accept deposits from the wealthier people in the society. It would also apply to their policy of lending. Banks would only lend money to a particular bunch of individuals in the community.
It has also been noted that these savings and loan companies have lower interest rates on their loans as compared to banks.
They are very much similar to commercial banks and savings and loan companies. However, unlike banks, these credit unions give their clients higher rates on deposits and charge very low rates on the loans that they offer their customers (Lange 45-70).
The banking and other financial sectors have in the past years been a snail on the crossover to the digital world. Technology and of course competitions pushes the company to be different, and in such a situation new things must therefore arise. Digital marketing comes with lots of challenges, but the opportunities are colossal.
The primary purpose of the research is to establish the importance and impacts of digital marketing in the financial sector. We discuss the strategies for the digital banking and how it affects its competitors and further consumers.
Is digital marketing necessary for financial products?
What are the strategies used in digital marketing?
How can digital marketing be improved in the sale of financial products in the country? Limitations of the research
The research, in particular on the digital marketing, is only limited to the financial institutions, yet the importance of digital marketing can be discussed in quite a larger topic which would cover most of the other areas in such as in real estate, education, small scale businesses.
Evolution of digital marketing
Digital marketing began in long ago in the 1990s. This has achieved an adjustment in the way organizations work and how extraordinary brands have utilized innovation with a specific end goal to result to a more vast number of clients. The more that these digital marketing platforms have been incorporated into marketing plans of most of the companies worldwide, the more these very same companies get high returns as they boost their sales as their products can reach very many customers worldwide (Webster,14-17).
In an attempt to remain competitive with the modern consumer, financial institutions in America need to allocate some part of their budget for online initiatives such as digital advertisements. Effective employment strategies will increase the number of customers and in turn, causing brand popularity among clients and potential customers (Kumar 1-9).
Here are some of the strategies that can be incorporated for digital marketing
It only means being first there whenever a customer needs you. This is in line with the goal of SEO, and that is to be available when potential clients are looking for you. In this case, the use of Google search results is vital. The fact that most of the people use Google in their operations, it is essential for any financial institution to make sure it is on this Google search engine since it is the one which is most widely used (Varadarajan 296-312). The organization should also make sure it is available on all the other search engines such as Bing and Yahoo. Therefore, it creates a sense of trust by the customer, and it will give the client’s confidence that they will be dealing with a market leader (Billy 76-80).
Apart from being on the search engines. That company should put in place measures to ensure that the business appears on the first page of all the search engines. This brings about a sense of credibility that can be achieved through building quality back links to the page by promoting your content through social media.
Content Marketing is what will attract the customer to your company. There should be all the available content that they are looking for on the online portal of the financial institution. All online platforms require content so as to be able to appeal to customers and make it useful (Wind 43-54).
At the point when clients scan for anything on the web, they look for any relevant content . their aim is to discover a correct brand satisfies them fully and give them esteem. In the event that you routinely create articles on points that clients welcome, you will have the capacity to produce more activity from the hunt and urge individuals to draw in with your site. Some of the marketing content which might be highlighted are increases and decreases in lending rates.
As discussed above, more and more customers doing banking prefer banking online as compare to going to the branches. Most banking institutions are putting themselves out there through this strategy and enhancing it by effective branding which includes brand awareness and engagement. Financial institutions are tasked to stand out in an industry where completion is always sprouting. Marketers in these financial institutions should be able to put emphasis on the unique brands available, personalized experiences, and consumer centric messages among other techniques. Differentiating your brand is mission critical for the company, especially in a competitive industry with more distribution channels. About half of all the advertising dollars spent in the US are spent on Google (Edelman 62-67). This is because it produces the required results. When a company makes an advert with customary promoting, they are compelled to depend on the ‘splash and ask’ philosophy– trusting that it gets before the perfect individuals (Edelman 62-67). When you publicize on the web, it is simpler to target particular socioeconomic and to customize the message they see. You can gather information from your crusades and utilize the data to advance your commercials and in turn get more for your cash. (Chaffey 25-33).
This is whereby the business gets the email address for all the potential clients. Once customer logs onto your website they are required to enter their email address (Baker 16-32). It allows the financial institution to constantly keep sending the potential customer news on the availability and all the new products that the company can offer (Chaffey 25-33).This will make client unwaveringness since it will continue reminding all the potential customers that regardless you exist, you have a specific number of items and that you have certain offers amid a particular time. It makes the client feel critical to the financial institution (Chaffey 25-33).
Financial companies must desire to redesign their corporate sites using the responsive layout. About 60% of all internet users worldwide use their cell phones. Thus, it is noted that most of the people use their mobile gadgets more when they want to get information on a particular product (Urban 3-7). Therefore, it goes into the account that the websites of financial institutions should be customized in a way that it is easy to navigate about. It does not only applies to the mobile site, but also the desktop site. Once it is attained most customers will begin visiting the site to see and inquire about all the financial products that are being offered by the financial institution. This will, in turn, bring in more customers and hence create a higher profit margin for the organization (Urban 3-7).
The consumer would expect their computer experience to be the same as the mobile experience. Using HTML technology offers the same experience as that of the computer to a mobile consumer. With this in mind if the institution upholds this strategy it would boost up to an app-like functionality to customers (Valarie 109-127). Further, this approach would cut on several budgets, time and in overall management will deliver a single site optimized for mobile responsiveness seamless solutions. Delivering mobile friendly, marketing focused front-end, internet banking of the institutions must utilize this responsive design strategy as soon as possible (Smith 489-499).
Financial institutions need to develop past old types of publicizing, for example, TV or daily paper promotions. Clients are on the web, and banks need be there to connect with them and manufacture the connections that prompt brand devotion and development (Gilbreath 45-57). Those prepared to venture out into current promoting ought to join with me today to begin
The financial institution must listen to their consumers and deliver according to their responses. Most users would prefer to use their mobile phones to access services offered by the institutions and with this in mind; they must create a user-friendly app that can accommodate all types of people (Lee 238-258). Providing mobile only, online and mobile or online only banking would be preferred by most consumers as their preferred choice of service delivery. StatisticBrain have reported that 19% of people use their mobile phones for business, while 90 % use the same for account balance checking or inquiring for statements (Lee 238-258).
Reaching out to customers by mobile marketing, this is because the majority of the consumers own tablets and smartphones (Rust 109-127). Mobile marketing is cost friendly and an easy to implement way to reach out to lots of people in an effective and efficient way which builds brand loyalty and thus high conversion rates. Banks and other financial institutions should take up strategies like sending SMS, Multimedia messages, push notifications, and more mobile-centered tactics to reach out to consumers. Tailoring the format and functionality for different devices and being mindful of content consumed by the mobile users is crucial in this strategy (Rust 109-127).
The following are some of the advantages of effective digital marketing of financial products.
It leads to higher profit margins- this is seen as marketing is done digitally, many customers will be enticed to purchase those products. It leads to more profits for the organization/ financial institution (José 2085-2094).
It helps maintain brand name- due to the constant nature of the advertisements that are placed online, and it creates a good image of the company in that the potential customers see it as a household name in that industry (José 2085-2094).
It leads to customer loyalty- with the digital marketing of a particular financial product, customers are able to be confident that the company has their best interest at heart. Therefore, creating a feeling of loyalty to the company by the customers (José 2085-2094).
Introduction
The section examines the exploration plan that was utilized, the objective populace, inspecting technique information accumulation and information investigation strategy utilized
The research configuration constitutes the blue print for the gathering, estimation, and investigation of information, (Kothari 20-25). A study configuration will be utilized as a part of the review. This is a strategy that has the results gotten from a particular area at a specific point in time. (Vijay 43-54) The decision of this plan is proper for the review since it uses a survey as an instrument of information accumulation.
Data collection is a way through which information is collected from respondents and the results are used in some form of investigation (mugenda 25-27). A researcher uses both primary and secondary data when carrying out his research. This therefore asserts that the survey will contain both organized and unstructured inquiries. The organized inquiries are used to restrain the respondents answers to given factors in which the analyst is intrigued, while unstructured inquiries will be utilized as a part of the request to give the respondents space to express their perspectives in a more realistic way (Vijay 43-54) Optional information will be accumulated from existing tenable and perceived sources. The information will include materials that are alluring, present, exact, adequate and applicable gathered from library course readings, web and magazines and faculty record in the association (Dave 35-67).
Data collection will be through the use of a questionnaire. Which will then be collected over a period of three weeks.
This research is going to cover people from all races, gender and people of all ages so as to get some accurate data.
Is digital marketing important for financial products?
|
Category |
Frequency |
Percentage |
|
Yes |
30 |
70 |
|
No |
15 |
30 |
|
Total |
50 |
100 |
Will the use of digital marketing improve the sale of financial products?
|
Category |
Frequency |
Percentage |
|
It is important |
30 |
70 |
|
Its not important |
15 |
30 |
|
Total |
50 |
100 |
Can digital marketing be improved in the sale of financial products in the country?
|
Category |
Frequency |
Percentage |
|
It will improve |
40 |
80 |
|
It will not improve |
10 |
20 |
|
Total |
50 |
100 |
As seen in the research, 70% of the respondents feel that digital marketing is quite important for financial products. The rate was improved when we inquired about whether digital marketing will lead to improves sales as 80% of the respondents felt that this platform will result in improved sales of financial products. 92% of the respondents said that digital marketing in their institutions could be enhanced even further.
This concludes that the use of digital marketing is quite important in the sale of financial products. And as much as digital marketing is currently being used, there are some ways that marketing can be made more efficient. Some of the ways include the search engine optimization methods, digital advertising, making the website of the financial institution usable on a mobile site and content marketing. When the financial institutions employ these strategies, they would have used a great strategy for their products.
References
Chaffey, Dave, and Danyl Bosomworth. “Digital marketing strategy.” Implementation and (2012).4-12
Urban, Glen. Digital marketing strategy: text and cases. Prentice-Hall, Inc., 2003.
Chaffey, Dave, et al. Internet marketing: strategy, implementation, and practice. Pearson Education, (2009).25-33
Varadarajan, P. “Marketing strategy and the internet: an organizing framework.” Journal of the Academy of Marketing Science 30.4 (2002): 296-312.
Rust Roland “Return on Marketing: Using customer equity to focus marketing strategy.” Journal of Marketing 68.1 (2004): 109-127.
Wind, Jerry, and Vijay Mahajan. “Digital marketing.” Symphony. Emerging Issues in Management 1 (2002): 43-54.
Baker, . The marketing book. Routledge, 2008.16-32
Edelman, David C. “Branding in the digital age.” Harvard business review 88.12 (2010): 62-67
Smith, Katherine Taken. “Digital marketing strategies that Millennials find appealing, motivating, or just annoying.” Journal of Strategic Marketing 19.6 (2011): 489-499.
Lange, Jeffrey. “Financial products having a demand-based, adjustable return, and trading exchange therefor.” U.S. Patent No. 6,321,212. 20 Nov. 2001.
Libman, Richard Marc. “Apparatus and method for transacting marketing and sales of financial products.” U.S. Patent No. 5,987,434. 16 Nov. 1999.
Webster Jr, Frederick E. “A perspective on the evolution of marketing management.” (2005): 121-126.
Kumar, V. “Evolution of marketing as a discipline: What has happened and what to look out for.” Journal of Marketing 79.1 (2015): 1-9.
Gilbreath , Bob. The next Evolution of Marketing: Connect with your customers by marketing with meaning. McGraw-Hill Professional, 2009.45-57
Merigó, José M.. “New decision-making techniques and their application in the selection of financial products.” Information Sciences 180.11 (2010): 2085-2094.
Lee , Jinkook. “A key to marketing financial services: the right mix of products, services, channels and customers.” Journal of Services Marketing 16.3 (2002): 238-258.
Heffner, Reid, et al. “System, method and computer program product for online financial products trading.” U.S. Patent Application No. 09/730,825.
Manjit S. Yadav. “Marketing strategy and the internet: an organizing framework.” Journal of the Academy of Marketing Science 30.4 (2002): 296-312.
Valarie “Return on Marketing: Using customer equity to focus marketing strategy.” Journal of Marketing 68.1 (2004): 109-127.
Vijay Mahajan. “Digital marketing.” Symphony. Emerging Issues in Management 1 (2002): 43-54.
Billy johnes. The next Evolution of Marketing: Connect with your customers by marketing with meaning. McGraw-Hill Professional, 2009. 76-80
José M.. “New decision-making techniques and their application in the selection of financial products.” Information Sciences 180.11 (2010): 2085-2094.
Urban, Glen. Digital marketing strategy: text and cases. Prentice-Hall, Inc., (2003):3-7
Dave ,. Internet marketing: strategy, implementation, and practice. Pearson Education, 2009. 35-67
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