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14 September, 2021

CHALLENGES IN PRICING FINANCIAL SERVICES

 CHALLENGES IN PRICING FINANCIAL SERVICES

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1) Financial Services Prices are Often Multi-Dimensional
2) Elusive Measures of Quality
3) Economic Forces
4) Poor Consumer Price Knowledge
5) Difficulty in Determining Customer Profitability
6) Indeterminable Costs
7) Conflicts of Interest

STRATEGIC CONSIDERATIONS IN PRICING
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1) The Demand Function
2) Price Complexity
3) Promotional Pricing
4) Environmental Forces Influencing Pricing

UNIQUE ASPECTS OF ADVERTISING IN FINANCIAL SERVICES
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(A) Vague Product/Service Attributes
(B) Quality is Intangible
(C) Unexciting Products
(D) Limited Ability to Visually Communicate Financial Products
(E) Regulations
(F) Variable Prices

SUCCESS FACTORS IN FINANCIAL SERVICES ADVERTISING
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1. Having a Unique Selling Proposition
2. Target Marketing
3. Creating Memorable Ads
4. Facilitating Consumer Action
5. Coordinated Use of Media
6. Use of Direct Marketing

 

STEPS IN ADVERTISING FINANCIAL SERVICES
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(1) Identification of Advertising Objectives
(2) Budget Determination
(3) Computing the Return on Investment (ROI)
(4) Developing the Contents of the Ad
(5) Media Selection, Scheduling and Campaign Execution
(6) Measurement