Discuss how the four elements of the marketing mix product

- Discuss how the four elements of the marketing mix (product, pricing, distribution, and promotion) are approached for either the business banking or trust market. How does this differ from retail banking? Provide examples if possible. - How might the financial crisis of 2008 affect the marketing of wholesale bank products and services?

Solution

when it comes to banks the products are financial services. there is no need to run on open market to sell their services. the customers are pre-defined and just providing awareness to them. usually the services will be loans to personal purpose or business purpose.

pricing: here the cost of product is called as interest rates. bankers will charge different interest rates based on customer soundness and the relation they maintains with them.

place and distribution: banks became as financial super markets, where they are offereing a wide range of services to their customers.

promotional activities: includes group loaning, offering linked services, or pool of services and so on.

retail banking will be focus on the customers who borrows higher amounts and who takes more than one service at one time. some times these customers treated as special customers or high networth customers.

before financial crisis (2008) bankers were provided loans to many people without having proper security. and the lending process was much easier at the times. but know every bank is scrutinizing the surity and security in strict manner and they are providing loans to the customers who are having good credit history. banking regulations were made as so strict in now a days.