DIGITAL MARKETING IN
FINANCIAL INSTITUTIONS
Lecturer: PhD. Nguyen Thi Minh Chau
Email: chauntm@[Link]
COURSE OBJECTIVES
Apply knowledge of the characteristics of digital
marketing and financial services marketing
Knowledge activities, the 7Ps marketing mix to customer
acquisition and care activities within financial
institutions in the digital era.
• Apply learned knowledge to develop financial
Skills
services marketing plans and strategies, and
team collaboration to implement the
established marketing plans and strategies
• Apply learned knowledge to involve the information digital
marketing activities and the factors influencing the
effectiveness of digital marketing strategies within financial
Attitude institutions. Then, propose solutions that help financial
institutions enhance their marketing effectiveness and adapt
to changing banking and financial industry trends.
Components of Course Assessment
Assessment Component Evaluation Method Weight
A1.1 Class participation 10%
A1.2 Individual test:
A1. Process Evaluation multiple-choice mid-term 20%
test
A1.3 Team project 20%
A2.1 Final exam: multiple
A2. Final Evaluation 50%3
choices and a case study.
Reference Materials
[Link] Textbook
1.1 Ritu Srivastava (2023), Marketing of Consumer Financial Products: Insights
From Service Marketing, Business Expert Press
2. Supplementary Materials
2.1 Dave Chaffey, Fiona Ellis Chadwick (2019), Digital Marketing - Strategy,
Implementation and Practice, Prentice Hall Financial Times, 7th Edition, UK, 2019
2.2 Christine Ennew, Nigel Waite, Roisin Waite (2018), Financial Services Marketing
An International Guide to Principles and Practice, 3rd Edition, Routledge
Course Contents
• OVERVIEW OF DIGITAL MARKETING IN
C1 FINANCIAL INSTITUTIONS
• STRATEGIC DIGITAL MARKETING IN
C2 FINANCIAL INSTITUTIONS
• THE FINANCIAL SERVICES MARKETING MIX AND
C3 CUSTOMER ACQUISITION IN THE DIGITAL ERA
• CUSTOMER RELATIONSHIP MANAGEMENT IN
C4 THE DIGITAL MARKETING
• FINANCIAL SERVICE DELIVERY AND SERVICE
C5 QUALITY IN THE DIGITAL MARKETING 5
CHAPTER 1:
OVERVIEW OF DIGITAL
MARKETING IN FINANCIAL
INSTITUTIONS
Lecturer: PhD. Nguyen Thi Minh Chau
Email: chauntm@[Link]
Financial Services Marketing: An International Guide to Principles and
Practice
Learning Objectives
1. Understand and explain the structure, products, and participants in the financial
service market.
2. Grasp the concepts of financial marketing, including the target customers and tools
in financial marketing.
3. Distinguish the differences between financial service marketing and tangible
product marketing.
4. Explain the digital transformation in marketing in financial institutions.
MAIN CONTENTS
• Overview of financial institutions and financial services
1.1
• Marketing Financial Services: An Overview
1.2
• Digital transformation in marketing in financial institutions
1.3
1.1 Overview of financial
institutions and financial services
Learning objectives
• Identify the different types of organisations engaged in the provision of
financial services
• Understand the range and diversity of financial services and how they
relate to customer needs
• Comprehend the complexity of the industry
• Understand the economic and social significance of the financial services
sector.
1.1.1 Definition and classification of
financial institution
Definition:
A financial institution (FI) is a company engaged in the business of dealing
with financial and monetary transactions such as deposits, loans, investments,
and currency exchange.
Roles:
• Connects capital holders with capital seekers.
• Maintains the stability of the financial system.
• Builds trust and promotes economic growth.
1.1.1 Definition and classification of
financial institution
Savings Investment Credit and
Banking Insurance
and Loans Companies Liquidity
Life Insurers Mutual Funds/Unit
Building Societies Trust Companies
Retail Banks Credit Card issuers
(UK)
General Insurers
Investment Trusts
Secured Loan
Commercial banks Credit Unions Composite Insurers
providers
Pensions providers
Health Insurers
Unsecured Loan
Investment Banks National Savings providers
Lloyds Syndicates Stockbrokers
1.1.2 Defining and classification financial service
Service is “any activity or benefit that
one party can offer to another which is
essentially intangible and does not
result in the ownership of anything.”
(Kotler, 1991)
1.1.2 Defining and classification financial service
• Financial services include all services
related to insurance, banking, and
other financial services
(World Trade Organization, 1997).
• Financial services are services that
directly affect people's intangible
assets.
(Christine Ennew, Nigel Waite, 2007)
Financial Services
Thảo luận
• Tư vấn sản phẩm dịch vụ tài chính phù hợp với nhu cầu của khách
hàng
1. Thanh toán không dùng tiền mặt trong nền kinh tế
2. Một sản phẩm bảo vệ con người trước rủi ro/biến cố tử vong, bệnh hiểm
nghèo
3. Thanh toán trong các giao dịch ngoại thương
4. Hạn chế rủi ro trong các biến động giá cả thị trường như lãi suất, tỷ giá,
giá cổ phiếu...
5. Bổ sung vốn thiếu hụt cho hoạt động sản xuất kinh doanh, tiêu dùng
Distinctive characteristics of financial services
• Intangibility
• Inseparability
• Perishability
• Heterogeneity
• Fiduciary responsibility
• Contingent consumption
• Duration of consumption
Financial Services Marketing: An International Guide to
Principles and Practice
Match the English terms with their corresponding definitions
Characteristic Definition
1. Intangibility a. Production and consumption of services occur simultaneously.
2. Inseparability b. Services cannot be stored or inventoried.
3. Perishability c. Services cannot be physically touched or examined before consumption.
4. Heterogeneity d. Service providers have a duty to act in the best interests of their clients.
5. Fiduciary responsibility e. Services can vary in terms of their duration.
6. Contingent consumption f. Money spent on them does not yield a direct consumption benefit
7. Duration of consumption g. Services are highly variable in quality and consistency.
1.2 Financial services marketing:
An overview
Learning objectives
• identify how and why services in general and financial services in particular are
different from goods
• understand the implications of these differences for marketing practice
• understand the way in which financial services can be classified and the position of
different types of financial services within this classification
Financial Services Marketing: An International Guide to
Principles and Practice
1.2.1. Defining financial service marketing
Marketing is the entire system of business activities, from designing, pricing,
promoting, to distributing products that satisfy the needs of the target customers in
Definition order to achieve the defined corporation's goals.
(Fundamental of marketing - Bruce J.W. William, Michel [Link])
Marketing is the process through which individuals and organizations can fulfill their
needs and wants by creating and exchanging products and values between parties.
Philip Kotler - Principle of Marketing, 1994 19
1.2.1. Defining financial
service marketing
• Financial Services Marketing: The
process of researching, planning, and
implementing activities to satisfy
customers’ financial needs through the
products and services of financial
institutions (banks, insurance
companies, securities firms, finance
companies).
Characteristic of financial service marketing
• Specificity of Financial Service Products
• Financial products are abstract and difficult to evaluate before use.
• Purchase decisions often involve assets, income, and long-term plans.
1 • Marketing Implication: Emphasize long-term value, benefits, and
safety
• High Sensitivity to Trust and Risk
• Customers are highly sensitive to the reputation and safety of the service
provider.
• Financial risks make customers more cautious compared to buying
2 goods.
• Marketing Implication: Build a trustworthy brand, ensure transparency,
and communicate financial safety
Characteristic of financial service marketing
• Complexity and Difficulty for Customers
• Financial products often have complex structures (interest
rates, fees, terms).
• Customers may be confused or lack financial literacy
3 • Marketing Implication:
• Communicate simply and clearly.
• Provide financial education.
• Ensure transparency to build trust.
Characteristic of financial service marketing
• High Competition and Substitutability
• The financial services market has many
competitors; products are easily substituted.
• Customers have multiple options: banks, finance
companies, fintech firms.
4 • Marketing Implication:
• Create differentiation.
• Personalize services.
• Apply digital technology to retain customers
Characteristic of financial service marketing
• Integration with Technology and Digital
Transformation
• Financial services marketing today is closely tied to
digital technology.
• Digital tools expand reach and enable service
personalization.
5 • Marketing Implication:
• Develop digital marketing strategies.
• Leverage Big Data.
• Integrate omni-channel platforms to enhance
customer experience
The role of the financial service marketing
• Essential for delivering competitive advantage through
differentiation
• Is the link between strategy and the customer
• The primary means by which marketing objectives can be achieved
• Defines the customer experience
• Enhance value and service quality
1.2.3 Differences between financial service marketing and
tangible product marketing
The services marketing triangle
Services marketing triangle
(adapted from Kotler)
Financial Services Marketing: An International Guide to
Principles and Practice
Marketing Mix Tools Applied in Financial
Services
• The marketing mix is a set of business tools used in marketing activities.
Marketing Mix Tools Applied in Financial
Services
Question 1
• Why is the relationship between employees and customers
(Interactive Marketing) crucial in the Service Marketing Triangle?
A. It reduces service costs.
B. It eliminates the need for promotions.
C. It directly influences customer satisfaction and service perception.
D. It replaces internal marketing efforts.
Question 2
• Why is "service inseparability" significant in financial services?
A. It allows services to be stored for later use.
B. It emphasizes the simultaneous production and consumption of
services.
C. It ensures uniform service quality across providers.
D. It highlights the physical evidence of services.
Question 3
• What is a major implication of service perishability in the financial
sector?
A. Services cannot be stored for later use, requiring careful demand
and supply management.
B. Service providers must always ensure quality control.
C. Customers can delay consumption indefinitely.
D. Services require tangible promotional materials.
Question 4
• A financial institution uses visually appealing offices and modern
technology to attract customers. Which aspect of the marketing mix is
being utilized?
A. Promotion
B. People
C. Process
D. Physical evidence
Question 5
• A bank integrates online and offline delivery systems for customer
transactions. Which marketing mix tool does this represent?
A. Distribution (Place)
B. Price
C. Promotion
D. Product
Question 6
• What action should a financial institution take to address service
intangibility?
A. Reduce prices of services.
B. Focus on eliminating variability.
C. Provide tangible cues and emphasize benefits.
D. Limit customer interaction.
Question 7
• A financial advisor emphasizes transparency and fairness in their
dealings. Which service characteristic does this address?
A. Perishability
B. Fiduciary Responsibility
C. Inseparability
D. Heterogeneity
Question 8
• What is the primary challenge associated with the perishability of
financial services?
A. Poor staff training
B. Difficulty in managing demand and supply
C. Lack of physical evidence
D. Standardized service delivery
Question 9
• What type of marketing focuses on the relationship between the
company and employees in the Service Marketing Triangle?
A. External Marketing
B. Digital Marketing
C. Internal Marketing
D. Interactive Marketing
Question 10
• In the 7Ps, "Process" refers to:
A. The promotional methods used to market the service.
B. The actual flow of activities involved in delivering the service.
C. The pricing strategies applied to the service.
D. The location where the service is delivered.
1.3 Digital Transformation in Marketing Institutions
What are digital and multichannel
marketing?
Digital marketing can be defined as: Achieving marketing objectives through
applying digital media data and technology.
Digital media: Communications are facilitated through content and interactive
services delivered by different digital technology platforms including the Internet,
web, mobile phone, TV and digital signage (electronic signage).
The application of digital media, data and technology integrated with traditional
communications to achieve marketing objectives.
Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
There is an overlap between the 3 different type of media.
This overlap requires integration of campaigns resources and infrastructure through
Application programming interfaces (APIs, e.g. Facebook API) and widgets (a simple
application extension).
API : Method of exchanging data between systems such as websites services.
Figure 1.1 The intersection of the three key online media types
The marketing technology landscape
Source: With permission – [Link]
Key communication concepts for digital marketing
Permission marketing: is about seeking the customer’s permission before
engaging them in a relationship and providing something in exchange.
Content marketing: The management of text, rich media, audio and video
content aimed at engaging customers and prospects to meet business goals
published through print and digital media including web and mobile platforms
which is readapted and orgonized to different forms of web presence, such as
publisher sites, blogs, social media and comparison sites
Customer engagement: Repeated interactions through the customer lifecycle
encouraged by online and offline communications aimed at strengthening the long-
term emotional, psychological and physical investment a customer has with a brand.
Applications of digital marketing
• Digital media and technologies can be used as follows:
✓Advertising medium.
✓Direct-response medium.
✓Platform for sales transactions.
✓Lead-generation method.
✓Distribution channel
✓Customer service mechanism.
✓Relationship-building medium.
Benefits of digital marketing
Identifying Anticipating Satisfying
The Internet can be used The Internet provides an A key success factor in e-
for marketing research to additional channel by marketing is achieving
find out customers’ needs which customers can customer satisfaction
and wants. access information and through the electronic
make purchases. channel, which raises
issues, such as is the site
easy to use, does it
perform adequately.
Benefits of digital marketing
The benefits of digital marketing and how the 5Ss of digital marketing can be applied:
1 2 3 4 5
SELL– GROW SALES: SERVE– ADD VALUE: SPEAK– GET CLOSER SAVE– SAVE COSTS : SIZZLE– EXTEND THE
INCLUDES DIRECT ACHIEVED THROUGH TO CUSTOMERS: ACHIEVED THROUGH BRAND ONLINE:
ONLINE SALES AND GIVING CUSTOMERS CREATING A TWO-WAY ONLINE EMAIL, ACHIEVED THROUGH
SALES FROM OFFLINE EXTRA BENEFITS DIALOGUE THROUGH REDUCE STAFF, PRINT PROVIDING NEW
CHANNELS ONLINE WEB INTERACTIONS AND POSTAGE COSTS. PROPOSITIONS, NEW
INFLUENCED ONLINE OFFERS AND NEW
EXPERIENCES ONLINE
1.3.2 The 7Ds Pillars of Digital Marketing in Financial Institutions
• Introduction to 7Ds:
The 7Ds framework is a strategic model for digital marketing in finance.
• It helps financial institutions:
• Integrate digital technologies.
• Personalize services.
• Enhance customer experience.
Tình huống thảo luận
• Ví điện tử ABC vừa triển khai chương trình “Hoàn 50% cho 10.000 giao dịch đầu
tiên” trên Facebook, TikTok và ứng dụng di động. Chiến dịch giúp lượt truy cập ứng
dụng tăng mạnh, nhưng sau 48 giờ, doanh nghiệp đối mặt với làn sóng phàn nàn trên
mạng xã hội vì:
• mã ưu đãi hết quá nhanh;
• ứng dụng bị lỗi khi thanh toán;
• phản hồi chăm sóc khách hàng chậm;
• điều kiện áp dụng chương trình không được truyền đạt rõ ràng;
• nhiều người dùng đánh giá 1 sao trên App Store và Google Play.
• Yêu cầu:
[Link] tình huống này, yếu tố nào của digital marketing bị ảnh hưởng nghiêm trọng
nhất? Giải thích.
2.Vận dụng 5S, hãy phân tích tác động tiêu cực của sự cố đối với từng chữ S.
3.Dựa trên 7D, hãy xác định những trụ cột doanh nghiệp đã làm chưa tốt.
THANK YOU!