A Research On The Effects Of Financial Instruments On Market Demands Based On The Financial Marketing Theory

Demand uncertainty is the biggest risk in enterprise management,and demands management is the essence of enterprise management.Financial instruments are increasingly popular among enterprises and have proved to be really effective,so enterprises need to constantly develop new marketing methods in order to stay relevant.What this papers examines,is,on the one hand,trying to theorize the modish practice of using financial instruments as means of operational management;while on the other hand,since existing theories are not enough to support enterprises in coping with their increasingly complex demands,so,this study has proposed a new theory called Financial Marketing Theory,which defines the practice of using financial instru ments and financial products as financial marketing and deals with the relations between financial instruments and enterprises' demands.whereas it should be noted of the possibility of financial bubble by abusing financial instruments to stimulate demands in an unchecked manner While this paper is simply conducting a deep research on the effects of financial instruments on market demands,aimed for supporting enterprises to better manage demands efficiently and reasonably.This study has summarized existing laws on actual business activities,put forward the theory of Financial Marketing,formulated the conceptual framework of financial marketing(financial instruments-demand management)together with its research content and difficulties,pointed out the importance of demand classification as the basis of demand management,and went on to demonstrate the methods of classification before constructing the framework of demand management through financial instruments.Furthermore,this paper has demonstrated the mechanism of instruments on different types of market demands through game modeling and simulation.As for potential demands,this paper has chosen financial lease as the proper instrument:by building game models between financial leasing companies,equipment providers and product manufacturers,this paper has studied how,under financial leases,the leasing companies would design their leasing rates and manufacturers optimize their order quantity.In short,this paper has proven the effectiveness of financial leases on potential demands,and put forth ways of strategies optimization for financial leasing companies to better tap those demands.As for sparse demands,this paper has selected crowdfunding as the suitable financial instrument:by building game models between initiators and participants,this paper has concluded the optimal conditions for each pricing strategies:Margin Strategy,Volume Strategy,Hybrid Pricing Strategy,and Menu Pricing Strategy etc..This paper has attested to the concentrative nature of crowdfunding on sparse demands through game models and simulation analysis,and suggested how to optimize strategies in so doing.As for saturated demands,this paper has decided on subsidies and coupons as the corresponding financial instruments.Bilateral asymmetry is an important feature of platform companies.This paper has built game models on this feature,looked into different access mechanism on each side of the bilateral platform,examined the effects of bilateral size ratio on the platform's equilibrium price and profit,and thus concluded the inducing effects of subsidies on markets demands,and how to optimize strategies as well.As for coupons,this paper has studied how to create demands by building game models between product manufacturers,middlemen and consumers,and concluded how product manufacturer could optimize their production quantity while middlemen set the best discount.In all,the game analysis has demonstrated how coupons could create demands and the optimal strategies to that effect.Based on daily observation,documentation review,and integrated with varied research methods like game analysis,case analysis,simulation analysis and comparative analysis,this paper has managed to reach the following conclusions:1.This paper has constructed the theory of Financial Marketing,which defines the practice of using financial instruments and financial products as financial marketing and deals with the relations between financial instruments and enterprises' demands,and formulated the conceptual framework of financial marketing(financial instruments-demand management).Besides,this paper has proven that the classification of demands is the basis of demand management,and went on to define the three kinds of demands-potential demands,sparse demands and saturated demands,as well as their corresponding coping financial instruments.2.This paper has demonstrated how big equipment manufacturers could rely on financial lease to increase equipment order and to stimulate potential demands,and how equipment providers could rely on financial leases to stimulate potential demands from downstream manufacturers.When the market demand is abundant,financial leasing companies can always attain a win-win situation with manufacturers by designing the leasing rate;the leasing rate will increase as the competition in capital market weakens and as the scale of financing increases;the optimal order quantity for manufacturers lies with their average production yield and maximum output,and is related to product prices and capital market competition,so when the above variables are exogenous,the optimal order quantity would be fixed,and when the maximum output stays unchanged,the optimal order quantity would have nothing to do with equipment's' remnant value or the leasing rate.Upstream equipment providers can either work with financial leasing companies or establish themselves a leasing function to stimulate potential demands and actively manage market demands.3.This paper has demonstrated how startups could concentrate demands with crowdfunding.Crowdfunding could really help startups to raise capital.And for this to work,initiator should choose suitable pricing strategies wisely:like when the proportion of high value participants is low,it would be better for the initiator to care for sales volume:when the proportion of high value participants is high,the initiator could choose the margin strategy;and when the proportion is moderate,and the discrepancy in product pricing is huge,the initiator could choose the menu pricing strategy.In all,when choosing the optimal pricing strategy in crowdfunding to concentrate market demands,the initiator should pay attention to the proportion of high value participants and the discrepancy in products pricing.4.This paper has demonstrated how internet service platforms could induce the already saturated demands with subsidies.The pricing strategies is associated with cross-group network externalities in that the registration fees is lower for the side of low network externalities and higher for the opposite side.And when consumers and merchants are of similar size,the platform would tend to charge merchants while subsidizing consumers.The scale ratio between customers and merchants takes a huge toll on the platform's pricing strategies:when the scale of merchants is bigger than or close to that of consumers,and the merchants is single-homing,the platform would then charge merchants lower and consumers higher,and access fees for both sides would decrease along with a boon in consumption;when the scale of consumers is far larger than that of merchants,a single-homing merchant would intensify the price competition among platforms and force platforms to subsidize both sides.This paper has also found that when the competition among merchants is low and their scale is bigger than or close to that of consumers,profits for the platform would be higher if the merchants are single-homing instead of multi-homing,while when the scale of consumers is far larger,profits for the platform would be higher if the merchants are multi-homing instead of single-homing;on the contrary,when the competition among merchants is high and their scale is bigger than or close to that of consumers,profits for the platform would be higher if the merchants are single-homing instead of multi-homing,and loss would incur if the merchants are multi-homing,while when the scale of consumers is far larger,profits for the platform would be higher if the merchants are multi-homing instead of single-homing,and loss would incur if the merchants are single-homing.In all,platforms should pay attention to the nature of the industry and the bilateral scale ratio in developing pricing strategies to induce demands.5.This paper has demonstrated how manufacturers could create demands with the circulation of coupons,how seasonal manufacturers could obtain a new profit pattern and optimize their production quantity with the help of coupons,and how a preliminary agreement on coupons between middlemen and manufacturers turns out to be the key for profits.When the number of coupons the middlemen have is fewer than(?),then the manufacturers should try to keep the number of excessive coupons below or as close to(?)as possible,for both sides to profit.When middlemen recollect coupons at the discount range of((?),(?)),manufacturers and middlemen should agree upon in advance the critical discount k,and manufacturers need to keep k as close to 1/1+a as possible and the number of excessive coupons at(?)-1.Furthermore,seasonal manufacturers should bear in mind what are the ideal conditions to create demands,and be alert of the risk of running on coupons if middlemen have at their disposition a huge amount of coupons.This study has constructed the theory of Financial Marketing,which demonstrates the working mechanism of financial instruments on market demands.And through game modeling and simulation analysis of different financial instruments on certain specific demands,this paper has discussed the inner mechanism of financial instruments for demand management.Compared with existing research,this study has made the following breakthroughs:1.Theoretically,this paper has widened the perspective and scope of the research on marketing.This study has proposed the theory of Financial Marketing together with its theoretical framework and road map,and demonstrated the working mechanism of financial instruments on market demands,as well as how enterprises could optimize their pricing strategies according to the type of market demands.This paper could greatly promote the interdisciplinary research of finance and marketing.2.This paper has developed new analysis methods in the research on marketing.This paper has studied the functions of financial marketing from the perspective of enterprise strategy optimization through game modeling and simulating different financial instruments in actual demands management.This paper has,for the first time ever,used newsboy game analysis on the maj or parties in financial leasing;extended the pricing strategies for crowdfunding from two-stage game models to three-stage game models;expanded the theoretical models of bilateral platform from scales certainty to scale uncertainty;created a two-stage game model for enterprises to obtain new profit patterns with the circulation of coupons;and besides,made improvement on several basic models,enriching marketing research methods.3.This paper has greatly integrated theories with practice by selecting the most common business activities,examining and categorizing them with scientific and theoretical methods before addressing them with corresponding financial instruments based on game modeling and simulation analysis,and the results turn out to be very consistent with actual business environment.So,it is proved that this study can serve as theoretical supports for operational management.