ABSTRACT
Traditionally, the marketing mix comprises four elements: product, price, promotion and place (the 4Ps). These elements are typically seen as encompassing the range of marketing variables which are directly controlled by the organization. In order to meet the needs of the target market, organizations seek to develop a balance between these elements which reflects the organization’s desired competitive position. In many senses, the marketing mix provides a bridge between marketing strategy and marketing tactics. The aim of marketing strategy in any organization is to establish a match between the organization’s skills and capabilities and the needs of the target market. Marketing tactics, by contrast, are more closely concerned with decisions about how to deliver the product or service offer which reflects this matching process. The marketing mix has both strategic and tactical dimensions. The strategic dimension of the marketing mix is primarily concerned with decisions about the relative importance of the mix elements for a particular product-market combination. For example promotion, particularly television advertising, may play an important role in the marketing mix for many retail financial services, but may be almost irrelevant for specialized corporate financial services. The tactical dimension of the marketing mix works within the framework created by decisions regarding the balance of the mix and is Concerned primarily with the specification of precise details for each element in the mix. To develop an effective marketing mix requires a clear understanding of the chosen product position and of the way in which consumers are likely to respond to the individual mix elements. This chapter reviews the concept of the marketing mix as it applies to financial services. Particular attention is focused on the relevance of the traditional 4P concept and on examining the components of the various elements of the mix. Section 4.2 provides an overview of the financial services marketing mix while section 4.3 examines important themes which must be developed within the context of the traditional 4Ps framework. A summary and conclusion are presented in section 4.4.
