Marketing Financial Products

Financial products are characterized by two-way communication and fiduciary responsibility, in addition to the standard set of four characteristics of services, that is, intangibility, inseparability, heterogeneity, and perishability. Certain types of financial instruments also have issues with respect to lack of transparency of performance, uncertainty of outcome, and poor comparability. The macro-environment of the financial products sector can be classified broadly into economic environment, socio-cultural environment, political and legal environment. The sector is regulated by various bodies at various levels in India, including the government, the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory & Development Authority (IRDA). The micro environment includes suppliers, customers, channel members or marketing intermediaries, competitors, and the society at large. The internal environment is within the control of the management; it includes the mission and objectives of the company, management structure, human resources, company image and reputation, and technology.