Investigations On Strategic Marketing Of Commercial Bank Financial Products

The rapid change of the economic situation of contemporary China is posting the deepened needs for economic and financial reformations. With the diversifications of different profiles of clients, it presents further requests for enhancement in the diversification, personalization and professionalism in financial services. The traditional banking strategies with emphasis on revenue expansion has thus been challenged and believed to be insufficient for sustainable banking growth. Banks’ marketing strategy has shifted from customer relationship marketing to customer-oriented product marketing. Swift response to customers’needs has been the key in designing and marketing customer-focused and high class products. That is to say, the successful product management determines the customer base and then enhances the competitiveness of the banks.AB Bank of China, Sichuan Branch, with its strong financial profile and competent service diversifications, has gained advantages in the battle for financial markets. On the other hand, the bank faces great challenges in product innovation, marketing capabilities as well as the existing staffs enthusiasm. To cope with the complexity of internal and external business environment, AB Sichuan Branch is transforming from large-scale bank into strong-marketing bank. Marking capability will be the most helpful and powerful tool to maintain customer relationship, and finally realize the sustainable growth.The traditional marketing theory presents4P:product, price, place and promotion. Modern marketing strategies, however, emphasize new4P:people, process, program and performance. This paper addresses various aspects in financial product researches for AB Sichuan branch from the perspectives of competitive products, marketing channels and promotional strategies. Firstly, the article depicts the current status of those business aspects. Secondly, comparisons are made between domestic and overseas commercial banks or emerging financial market competitors in order to investigate potential aspects for improvement. All of the analysis is supported by practical cases. Lastly, some suggestions have been given in terms of the products innovation, staff training and enhancement of marketing capabilities.The main contributions of this dissertation consist of:Firstly, the author points out the basic principle of financial products’pricing model, namely cost-plus method, which is a sum of various cost factors. The initiatives of these products are cost saving plus manipulation on the return of capital rate, both internally and externally. This pricing model is believed to meet the requirements of customers, so that managerial activities and reasonable price negotiation with customers can be realized.In addition, the paper addresses the important concept of comprehensive marketing, which can be interpreted from four aspects:first, the structural role in organizing and coordinating marketing businesses; second, forming dynamic human resources in the marketing stream; third, performance monitor with in-time feedback; and technology supporting with accurate info-communication methodologies.Through studying the current situation in marketing financial products by the AB Bank of China Sichuan Branch, the author proposes various suggestions in terms of products, marketing channels and promotional strategies. This article also points out that banks have to play the most crucial role in leading and safeguarding the marketing businesses. The suggestions may create practical functions in exploring innovative financial products, as well as providing support and guidelines for the new4P marketing business model of the bank’s financial products. Finally, the paper serves the goal to assist the bank in achieving ultimate sustainable and profitable growth.