Marketing Mix Analysis For Small And Medium-sized Fund Firms In China

During the past14years when domestic fund industry was developing, thenumber of fund firms was also increasing. At the same time, their AUMs have beenlargely differentiated. As of the end of2012, nine fund firms with the AUM over100billion yuan have a total of1.2trillion yuan assets under management. Meanwhile,40small and medium-sized fund firms, however, has an average AUM of less than30billion yuan. Therefore, it becomes an increasingly important issue to analyze themarketing activities for those small and medium-sized fund firms in order to ensuretheir positions in the industry.Firstly, based on the analysis for both domestic and foreign academic materials,this essay concludes the results and shortcomings for existing academic research, andmakes the focus of this essay: small and medium-sized fund firms marketing mixanalysis based on4Cs theory.Secondly, it presents the marketing environment, including macro and microones, for the development of domestic fund industry and small and medium-sizedfund firms and analyzes the marketing activities and implementation problems withsmall and medium-sized fund firms.Thirdly, based on four elements in4Cs theory, i.e. customer, cost, convenienceand communication, the essay analyzes the existing marketing tactics of small andmedium-sized fund firms and presents their problems. With questionnaire researchmethod for26marketing people who work for small and medium-sized fund firms, itdraws the conclusion with four focuses. Firstly, those firms do not launch productsbased on customer needs. Secondly, they do not provide any cost advantages for themarket. Thirdly, providing conveniences as much as possible doesn’t become one ofthe marketing efforts among small and medium-sized fund firms. Lastly, theircommunication activities are not very often, the process is less focused oncommunication itself, and the contents during communication are superficial.In the last part of the essay, there is a marketing mix model which follows withsuggestions for small and medium-sized fund firms based on successful examples ofmarketing strategy implementations by several domestic and overseas fundmanagement companies. By doing so, it is helpful for providing some scientific andapplicable suggestions for the whole group. The needs from customers include:1,product suitable for various kinds of customers. Fund firms should produce product after timely knowing the real needs of their potential customers. Alternatively, theycan focus on mandate business to cater for a small scale of customers.2, low cost.small and medium-sized fund firms could lower trading rates in order to presentdifferent strengths in the market, or increase different levels of cost for differentcustomers.3, convenient transactions. The companies can improve convenience levelsincluding channels and methods of trading.4, obtaining information. Customers needtimely obtain all kinds of information. Therefore small-and-medium-sized fund firmsshould insist on communicating with customers on a very often basis, even when themarket is undergoing a very down period, and transmitting professional knowledge totheir customers to meet their needs.The essay uses4Cs theory for analyzing marketing activities for small andmedium-sized fund firms, which is a first trial in the field. It is also the first essaywhich uses questionnaire for finding out shortness of marketing strategy in thisspecial field.