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Sales And Marketing
Mobilising the 4 P's of Marketing
Mutual Fund Live

The most important marketing concept ‘4 Ps’ and a Financial Advisor

The definition of optimised marketing mix has already been imparted to us: offering right products at right prices to right people at the right time using right marketing strategies, and bang on success is typically assured.
And analogous to other industries, financial advisory business performs in the same fashion. In this story, we will go to the basics which will help advisors to re-evaluate his existing framework.

1. The First P – Product
Here we will start with the basic step of analysing your strengths. 

What you think is your forte? Is it the retirement planning, estate planning, insurance planning, life planning, an end to end financial consultancy, etc.? 

Remember it is the advise and not the product for you. Your advise is your product. 

What your competitors are offering and what can be your Unique Selling Point (USP) in the market? 

2. Pricing 
It is fascinating to see that many advisors have reinvented innovative pricing models to stay competitive in the industry. We list out traditional pricing patterns in this business.

Advisory only: If you are advising traditionalist (senior citizens), you may not prefer to charge by this model.

Commission based: This is best for someone who are price sensitive and doesn’t want to sign a cheque on a regular basis. People who just started their jobs or got married may fit in this model. 

AUM Model: As there is an enrollment amount, maybe you can skip people who have just started their career. Gen X or Traditionalists can be your target clients under this model. 

Performance linked: You need to look for customers who are wealthy and have an appetite for risk and higher returns (alpha). Also zeroing down on percentage share plays a crucial role. Understand your product, how they have been performing, what are the market developments and expansion plans before you adopt this model. Because if it doesn’t perform above the threshold percentage, you many end up making nothing. 

Combination of models
Apart from pricing your product, you may also want to consider: ‘Tenure of payment’. 
So, there is no right or wrong model as it all depends on your requirements, perceived price and value of your service, costing and break-even analysis.

3. Promotion

You first need to list your target audience and create a plan to reach them. For e.g. Millennial react best to Social media platforms, but a traditionalist may respond best to a direct phone call or a personal meet.

Seeking clients through Active referrals plays an integral role. In a nutshell, websites, social media platforms and direct emails play a prominent role in catering to a broader population. Also, advisors are increasingly relying on seminars to get more referrals.
If you are planning to go niche, focusing on such minor groups who share similar needs may empower advisors to build their knowledge rather than catering to different demands. You may place an advertisement on a portal which caters to a similar audience.

4. Place

While everything is going digital these days, digitisation is now not an option, but the necessity. Advisors should come up with attention-grabbing strategies while positioning their products online and offline. 

The distribution strategy should be in sync with your product and brand image. 

Examples: One financial advisor shared that in the world where cold – calling has lost its spell, he partnered with established consultant and canvassed on hundreds of other ones to learn more about their practices.  Another advisor sponsored many school events on an ongoing basis to cater to homemakers, and this also served him as a platform to ask for more referrals.

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