Edward Jones - A Different Focus | Services Marketing Case Studies

Details

Case Code : CLSM006
Publication date : 2005
Subject : Services Marketing
Industry : Banking and financial services Industry
Length : 04 Pages
Price : Rs. 100

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Key words:

Edward Jones, Brokerage House, Edward D. "Ted" Jones Jr, Investment Representative (IR), Door-To-Door Marketing, Average American Investors, Edwards Jones Model Portfolio, J.D. Power And Associates, Full-Service Investor Satisfaction Survey, Standard & Poor's 500-Stock Index, John Bachmann, Buy-and-Hold Investing, Employee-Friendly Policies, Fortune's Top 100 Best Companies To Work.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet discusses the target marketing strategy of Edward Jones, one of the leading brokerage houses in the USA. The caselet examines the company's focus on single customer segment- the average American investor. It describes its distribution strategy that gave it a presence in both rural and urban areas. The company operated these offices with a single investment representative (IR) who had an administrative assistant. The caselet elaborates on Edward Jones conservative investment strategy that provided good returns for the clients. Finally, it explains the employee friendly policies of Edward Jones.

Issues:

  » Target marketing strategies in financial services.
  » People and its importance in marketing services.
  » Face-to-face encounters Vs Remote encounters.

Introduction

Edward Jones, a leading US brokerage house, has a history of over 130 years and gets its lineage from Whitaker & Co., a bond house established in 1871. In 1922, Edward D. Jones Sr. established Edward Jones Brokerage and later merged it with Whitaker & Co., in 1943.

However its real growth started when Edward D. "Ted" Jones Jr. took over the job of managing the firm from his father (Edward D. Jones, Sr) in 1955...

Questions for Discussion:

1. Edward Jones adopted the traditional way of doing business i.e., through face-to-face contact with the customers and by offering personalized service. It resisted starting online trading, which big brokerages were using. Evaluate the advantages and disadvantages of face-to-face service encounters as well as the online trading.

2. Edward Jones has targeted only a single market segment that consists of average American investors even though it has the financial strength and resources to diversify into other related services. Evaluate the Edward Jones target marketing strategy.