Study About Marketing Theory Of Financial Innovation Product

This essay studies the marketing of financial innovative products from the viewpoint of the integration of financial innovation and marketing. The three properties of following leading products, rapidly converting into cash, and evading risks determine their particularity, which is the cause that the marketing theories of financial innovative products distinguish from those in other fields.The production of financial innovative is closely related to the environment of the economy and law. Financial innovation in 1950s and 1960s is to evade capital control. Its object in1970s is to prevent interest and exchange rate risks. In 1980 financial innovation is to seeking a new way to collect money. The new products of innovative production in 1990s are the appearance of the various kinds of the deriving tools.The development of science and technology, especially the advancement of electronic technology makes it possible to extend the monopolistic time of financial innovation, augment the monopolistic profit with the help of technology barriers. This article upholds the electronization of financial innovation is the main direction of financial innovation.The strategies of product, price, promotion and place are the chief factors of the marketing of financial innovation. Because of its strong cash-converting property, there is a process for people to accept it. The life cycle of financial innovative products consists of input, growing, maturing, and declining stages. Three dividing points of the four stages can be calculated quantifiably by Compertz curve. In input stage capital should be invested to promote the products, and occupy the market. In growing stage the product sale must be increased. In maturing stage the service range will be expanded, and seek new partitioned markets. In declining stage the new products are to be improved or the innovative products while maintaining the old markets must replace the old products. The financial innovation is expanding from the developed area to the developing area. The distribution can be divided into realistic one and imaginary one. In input and growing stage the products of financial innovation are to be sold through realistic distribution, while in maturing and declining stage those should be put on sale through imaginary one, but the tow means is used throughout the whole process. Concerning promotion, expert or friend sale and public relation is the best way, which is determined by the rapid cash converting and safety pursuing property.In the model of the evaluation of the economic effect of financial innovation, the financial innovation products take electronic technology as the carrier, and we assume that they are not affected by the fluctuation of the interest and exchange rate, the disturbance term is subjected to normal distribution, and the saturating amount is one time of using the product per person within a certain range. The input in the prophase (C) is large, so it is should be amortized in the latter periods. The maintenance, relative promoting expenditure, and the other expense in the anaphase should be included in the varying cost. V+C consists of the costs of the products of financial innovation. On the basis of Compertz curve, the evaluating model are set up, and the time point of each stage in life cycle are calculated, which can provide essential information to adopt a certain pricing strategy. Whether a financial innovative product is profitable or not is based on the further calculation of the evaluating model of economic effect according to the combination of three assumptions.