In the financial risk management market where intense competition exists between banking institutions, new product development is of immense importance for the key players who are looking for customer satisfaction and higher profit margins.
To be successful, you should try to be ahead of your competition all the time. But how can you manage that in a market which is composed of different markets with different customer needs and external environments – e.g regulatory? The answer is by focusing on improving the “quality” of their marketing strategy. More specifically, banks could succeed that by:
- Segmenting their markets on the basis of customer benefits.
- Using sufficient resources – time, people and money – for market research purposes.
- Investigating the factors that influences customer buying decisions.
- Focusing primarily on a package of values including product performance, service and applications.
- Implementing a detailed analysis of customer benefits, which involved determining the benefits that people look for in the products/services and the kind of people who look for each benefit, was conducted.
- Striving continually for knowledge in the strategy of our major competitors.
- Striving continually for knowledge in the structure of our major competitors.
- Striving continually for knowledge in the objectives of our major competitors.
- Placing customer satisfaction at the top of their agenda.
- Communicating information on customers and competitors to all people involved (e.g. financial engineers, account officers) in the product development process.
- Having constantly their marketing staff to remind all key-decision makers that the market is the primary source for identifying new opportunities
- Having the main marketing activities – selling, advertising,pricing -to be organised on a market basis. A market-based structure is facilitating the search for new market opportunities.
- Having their marketing planning procedures for exploiting emerging market opportunities to be part of the formal new product development planning system.
- Having a very detailed market assessment – demand, volume, potential sales and profits – was conducted before any decision on a new product development was taken.
- Adapting what was offered in one market – e.g. a swap developed for a petroleum company – to the needs of another market – e.g. for an electronics company.
- Establishing criteria for identifying possible market “gaps” before market assessment.
- Installing with the assistance of marketing staff planning and controlling systems for exploiting market opportunities and interpreting their output.
- Having the marketing staff to coordinate all people and departments involved in the product development process.
- Nurturing a co-operating environment between marketing staff (eyes and ears of the market) and financial engineers (technical staff responsible for the “actual” development of the product/service.
- Staffing the marketing team with staff who have adequate knowledge of their markets.
image credit: X-Act-Consulting.com
Wait! Before you go…
Choose how you want the latest innovation content delivered to you:
- Daily — RSS Feed — Email — Twitter — Facebook — Linkedin Today
- Weekly — Email Newsletter — Free Magazine — Linkedin Group
Dr. Panos Pavlidis, is an independent consultant to companies in Greece with over 20+ experience in structuring private investment deals and strategy implementation. His work includes renewable energy, tourism real estate, shipping and agricultural/food market sectors. Business development, asset management, marketing strategy formulation, innovation, export marketing, negotiation and research are his prime skills. He is the founder of the info-blog – INNOVISIO. He holds an MBA from BBS and PhD from Cass Business School, London UK.