show financial service are branded and advertised

1. BRANDING AND ADVERTISING
OF FINANCIAL SERVICES

2. BRANDING
When several companies are
offering rival products they will
want to identify and distinguish
their offering. This is called
branding

3. BRANDING
A brand is the sum of tangible and
intangible values and associations
that differentiate it from other
available offerings in the market.

4. BRAND IMAGE
Brand image represents the totality of
impressions about the brand as selected
and adapted by the consumer’s
perception. It embraces the brand’s
physical and functional aspects and also
its symbolic meanings

5. BRAND PERSONALITY
• The strategic purpose in creating a brand
personality is to evoke from the target
consumer the response:
• “I see myself in the brand”
• “I see the brand in myself”
• “This brand is for me”
• And this becomes the basis for a bond or a
relationship between consumer and brand
which is stronger than if it were founded on
cold functionality alone

6. Brand Equity
BE = Brand awareness + Brand
association + brand preference
while purchasing

7. PURPOSE AND DEFINITIONS
• “A seller’s promise to consistently deliver a specific
set of features, benefits and services to buyers.”
Philip Kotler
• “A name, symbol, design or some combination which
identifies the product as having a sustainable
differential advantage.” Peter Doyle
• “A name, term , sign, symbol or design, or a
combination of these intended to identify the goods
or services of one seller or group of sellers and to
differentiate them from those of competitors” Philip
Kotler

8. CREATING BRAND PROMISE
Brand owner’s input Consumer’s output
SELF
PRODUCT IMAGE
PRICE QUALITY
PLACE
COST
PROMOTION BRAND
EXPECTED
PEOPLE PERFORMANCE
PROCESS
DIFFERENTIATION
PHYSICAL
EVIDENCE

9. EXTRINSIC ATTRIBUTES AND
BRANDING
• A consumer is more or less dependent on the extrinsic
attributes of the branded article when it is difficult to evaluate
the intrinsic attributes before purchase
• Where the performance of the branded article cannot be
guaranteed before purchase the influence of the brand name
can be extremely high
• Often financial products cannot be evaluated directly even
after consumption (referred to as “credence articles” by Darby
and Karni 1973) and are therefore very sensitive to influence
of extrinsic attributes

10. 5D
SENSORY BRANDING

18. Dress of Cabin Crew

19. The Rise of Regionalism and Anti-globalisation

20. Positioning “the brand” as evaluative
attribute
• The brand must be positioned to create
meaning for customers through marketing
communications such that it becomes the
most important attribute
• The brand evaluation comes to override
evaluation of other attributes
• This is why brands must consistently deliver
the promises made in marketing
communications

21. Mutual attribute influence –
“irradiation” (Kroeber- Riel 1980)
• Intrinsic attributes not seen as important can
influence evaluation of intrinsic attributes
that are important (eg colour/taste ice cream
and oranges, colour/spreadability –
margarine, scent/strength – detergent)
• Extrinsic attributes can influence the
evaluation of intrinsic attributes (eg
packaging/freshness – bread, packaging/taste
– alcohol)

22. Other distorting evaluative
influences
• Information processing of attributes may be
distorted in favour of a brand that consumers
(unconsciously) prefer. (Russo et al
1998,Predecisional distortion of product
information, Journal of Marketing Research
35)
• Consider the implications of this for financial
product purchase from new financial
providers

23. Functional and expressive
characteristics of products
• FUNCTIONAL • EXPRESSIVE
• Emphasis in consumption • Fulfils consumers’
on intrinsic attributes consumption goals in
• Maximisation of physical psychosocial world
function • Reference group symbolism
• Brand names have greater
communicative value

24. Strategic functions of brands
FUNCTION CHARACTERISTICS
As company Embodies personal/core values:Easy, Virgin, Body Shop
As shorthand Heinz= “quality, premium, reliable, well packaged, respectable”. Acts as
“chunk” to aid info processing
Risk reducer Minimise risk rather than maximise utility. Mitsubishi cars- few performance
claims, many features, low price
Position Functional benefits valued by customers. Volvo=safety,
Subaru=performance
Personality Symbolism with emotional role. BMW, Rolex, Cunard
Value cluster Differentiation through values. Virgin= value, fun, innovation.
AGA=tradition, constant, efficient,welcoming
Vision The world the brand could create. IKEA=function, resource efficiency.
Apple=enabling creativity
Added value Relative to competitors, product in use. SEBO=“superb performance with
German engineering as standard
Identity Vision and culture with resonance for staff and customers. Apple=challenge
status quo. IKEA=challenge convention
Image Your perception of reality. Renault=as individual as you
Relationship Translate brand values into relationship. Tesco= “the more we sell the less
we charge”

25. Branding benefits
• BUYER BENEFITS • SELLER BENEFITS
• Product identification • Product awareness
• Shorthand cue of features and • Helps launch new product
benefits • Secures demand
• Distinguishes products of similar • Facilitates repeat purchase
type • Fosters brand loyalty
• Reduces buyer search time • Enables premium pricing
• Increases buyer assurance • Provides equity value
• Assists in quality evaluation • Offers proprietary brand assets
• Psychological reward
• Brand association

26. Value gap analysis and branding
opportunities
“How do you rate existing services?” versus “What’s important to you?”

27. Brands and semiotics
• Semiotics is the study of meaning and is
concerned with the symbolism conveyed by
objects and words
• Meaning is a product of the interaction
between sign system and de-coder
• Meaning derives from perception based on
knowledge and attitudes
• Brands use sign systems to create meaning
(name, logo, colour, design)

28. Levels of meaning in brand
symbols
• Utilitarian: functional
aspects, reliability, fitness for
purpose, effectiveness.
• Commercial: exchange values, value for
money, cost-effectiveness.
• Socio-cultural: social effects of
buying, aspirational groups, social roles
• Myths: association with heroic stories

34. Financial services brand images....

35. Celebrity links and brand
association

36. ....and more

37. How to screw up your brand?
• Remember Kotler: “a seller’s promise to
consistently deliver a specific set of
features, benefits and services to buyers.”
Like how to lose
£900 million?
How does this
resonate with
the consumer?

38. How to screw up your brand ? (continued)
• Believe that financials not customers are the lever for improved
performance
• Believe in demographic, psychographic segmentation rather than
profitability segmentation
• Collect data without understanding the 3 or 4 most important attributes
valued by customers
• Stalk customers without wooing them
• Believe that loyalty schemes create loyalty
• Spend millions on branding without communicating what value the brand
creates for customers
• Provide vanilla customer service
• Believe that customer satisfaction is the means to win

39. New versus old providers
“it is more than giving a product like a current
account a name. It is about identifying a target
market and then developing a product and
brand personality that the target market will
identify and prefer.”

40. ADVERTISING

41. ADVERTISING
• “Advertising is multidimensional, a powerful marketing
tool, a component of economic system, a means of
financing the mass media, a social institution, an art form
an instrument of business management, a field of
employment and a paying profession.”
In Other Words:
• “Advertising is a big business, It ranks fifth among
the big industries of the world after
oil, automobiles, computers, electronics.”

42. Advertising is all about?????

43. The definition which completely surrounds all the
aspects of advertising is given by American
marketing association, Chicago. According to it:
“Any paid form of non personal presentation of
ideas, goods and services by an identified
sponsor.”
Directed Communication

44. Advertising Strategies
1. Informative
• Audience receives factual product info
• No arguments; no evaluation
• Suitable when:
(a) audience actively seeks info
(b) easy to assess the facts
(c) judgment is favorable to advertiser
(d) no significant competition

45. Argumentative
• Presents facts and evaluation
• Suitable when:
(a) there is a differentiated product
benefit
(b) benefits of features not obvious
(c) high-involvement decisions

46. 3. Psychological Appeal
• Enhances product appeal thro’ emotions
• Primary emphasis: Emotions
• Secondary Emphasis: Product
Attributes/Benefits

47. Humor Appeal
Positive mood  draws attention  product
is used
But, . . . . . .
(a) Not sufficient to merely attract attention
(b) Repetition reduces ability to hold attention
(c) Humour is subjective

48. Fear Appeal
• Negative consequences of not using product 
product is used
• Threat, with implications of danger
• Curvilinear relationship between fear and
persuasion (see next figure)

49. Relationship between fear levels and message
acceptance
Facilitating effects
Acceptance
of message
High
recommendation Level of fear
Resultant nonmonotonic
curve
Inhibiting effects

50. Sexual Appeal
Gains attention  brand name recall?
(a) Nature of product
– If product is not related to sex, brand name
recall higher when illustration is non-sexual
than sexual
(b) Attitude toward sexual illustrations
– Audience with fav. attitude recall brand name
more than those with unfavorable attitude
(c) Gender of audience
– Men have more difficulty in recalling brand
names

51. MAJOR CONSIDERATIONS FOR
ADVERTISING MEDIA SELECTION

52. FINANCIAL SERVICES IN
INDIA

53. MEANING OF FINANCIAL SERVICES
• All types of activities which are of a financial nature
could be brought under the term ‘financial services’.
• The term “Financial Services” in a broad sense means
“mobilizing and allocating savings”.
• Thus, it includes all activities involved in the
transformation of saving into investment.

54. FINANCIAL SERVICES
• The ‘financial service’ can also be called
‘financial intermediation’
• Financial intermediation is a process by which
funds are mobilised from a large number of
savers and make them available to all those
who are in need of it and particularly to
corporate customers.

55. FINANCIAL SERVICES
• financial services sector is a key area and
it is very vital for industrial developments.
• A well developed financial services
industry is absolutely necessary to
mobilise the savings and to allocate them
to various investable channels and
thereby to promote industrial
development in a country.

56. FINANCIAL SERVICES—
OBJECTIVES/FUNCTIONS
Fund Funds Specialized
raising deployment services
Economic
Regulation
Growth

57. FINANCIAL SERVICES
Financial services industry is the mainstay of any
economy as it mirrors the financial health of the
country. Indian financial markets are highly regulated
with different authorities keeping an eye on every
avenue of financial sub-segments viz. Stock
markets, mutual funds, insurance and banking. Stock
markets are regulated by Securities and Exchange
Board of India (SEBI) while Insurance Regulatory and
Development Authority (IRDA) keeps an eye on the
insurance industry. Similarly, Reserve Bank of India
(RBI) keeps a check on the Indian banking sector and
Association of Mutual Funds in India (AMFI) takes care
of the mutual fund segment

58. INSURANCE SECTOR
• According to the data released by Life Insurance
Council, total premium collected (including both new and
renewal premiums) during April-September 2011 stood at
Rs 1,22,661 crore (US$ 23.69 billion). In the same
period, the renewal premium collection increased by 17
per cent to Rs 73,575 crore (US$ 14.21 billion), as against Rs
62,818 crore (US$ 12.13 billion) in the corresponding
period in 2010.
• Till September 30, 2011, promoters of life insurance
companies had injected over Rs 32,720 crore (US$ 6.32
billion) as capital. Also, there was an investment of more
than Rs 200,000 crore (US$ 38.62 billion) in infrastructure
development in the sector.
• The council further predicts an upsurge in new premium
collections during October 2011-March 2012

59. BANKING SERVICES
• According to the RBI's 'Quarterly Statistics on Deposits and
Credit of Scheduled Commercial Banks', March
2011, Nationalised Banks, as a group, accounted for 53.0
per cent of the aggregate deposits, while State Bank of
India (SBI) and its associates accounted for 21.6 per cent.
The share of new private sector banks, Old private sector
banks, Foreign banks and Regional Rural banks in aggregate
deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3
per cent respectively.
• With respect to gross bank credit also, nationalised banks
hold the highest share of 52.8 per cent in the total bank
credit, with SBI and its associates at 22.1 per cent and New
Private sector banks at 13.2 per cent. Foreign banks, Old
private sector banks and Regional Rural banks held
relatively lower shares in the total bank credit with 4.9 per
cent, 4.6 per cent and 2.4 per cent respectively.

60. MUTUAL FUNDS INDUSTRY IN INDIA
• Recent data released by AMFI stated that the
cumulative average Asset Under Management (AUM)
of all fund houses aggregated to about Rs 6,87,640
crore (US$ 132.77 billion) in the last quarter of 2011.
• Data compiled at the end of 2011 indicated that HDFC
Mutual Fund maintained its top position with an
average AUM of Rs 88,737.07 crore (US$ 17.13 billion)
while fund houses namely Reliance, ICICI Pru, Birla
Sunlife and UTI followed. By the end of 2011, there
were a total of 44 fund houses in the country as against
42 in the first quarter of the year.

61. PRIVATE EQUITY(PE), MERGERS &
ACQUISITIONS(M&A) IN INDIA
• Global consultancy firm Ernst & Young (E&Y) has stated that the value of
M&A deals involving Indian companies aggregated to US$ 34.4 billion in
2011 involving 806 transactions. There were 177 outbound deals with an
aggregate disclosed value of US$ 8.8 billion in 2011; forming 25.6 per cent
of the total M&A pie.
• Adani Enterprises' acquisition of Abbot Point Coal Terminal in Australia
(US$ 2 billion) and the GVK Group's purchase of Australia-based Hancock
Coal's Queensland coal assets (US$ 1.3 billion) were among the biggest
outbound deals recorded in 2011.
• According to data released by auditing and consultancy firm KPMG, India
Inc witnessed a 31 per cent increment in PE investment to US$ 7.89 billion
during the first three quarters of 2011. PE firms like Blackstone India and
Kohlberg Kravis Roberts & Co (KKR & Co) are betting high on Indian
markets. The Blackstone India chief was reported to have said that he
intends to close 5-6 deals a year in India whose financial valuations would
revolve around roughly US$ 100 million to US$ 120 million each

62. INDIAN FINANCIAL MARKET
A Financial Market can be defined as the market in which financial
assets are created or transferred. As against a real transaction that
involves exchange of money for real goods or services, a financial
transaction involves creation or transfer of a financial asset.
Financial Assets or Financial Instruments represents a claim to the
payment of a sum of money sometime in the future and /or
periodic payment in the form of interest or dividend.
• Money Market- The money market ifs a wholesale debt market
for low-risk, highly-liquid, short-term instrument. Funds are
available in this market for periods ranging from a single day up to
a year. This market is dominated mostly by government, banks
and financial institutions.
• Capital Market - The capital market is designed to finance the
long-term investments. The transactions taking place in this
market will be for periods over a year.

63. INDIAN FINANCIAL SYSTEM

64. INDIAN FINANCIAL MARKET
• The money market ifs a wholesale debt market for low-risk, highly-
liquid, short-term instrument. Funds are available in this market for
periods ranging from a single day up to a year. This market is
Money dominated mostly by government, banks and financial institutions.
Market-
• The capital market is designed to finance the long-term
investments. The transactions taking place in this market will
Capital be for periods over a year.
Market

65. INDIAN FINANCIAL MARKET
• The Forex market deals with the multicurrency requirements, which
are met by the exchange of currencies. Depending on the exchange
rate that is applicable, the transfer of funds takes place in this
Forex market. This is one of the most developed and integrated market
across the globe.
Market
• Credit market is a place where banks, FIs and NBFCs purvey
short, medium and long-term loans to corporate and individuals.
Credit
Market

66. Constituents of a Financial System

67. FINANCIAL INSTRUMENTS
MONEY CAPITAL
HYBRID
MARKET MARKET
INSTRUMENTS
INSTRUMENTS INSTRUMENTS

68. MONEY MARKET INSTRUMENTS
The money market can be defined as a market
for short-term money and financial assets
that are near substitutes for money. The term
short-term means generally a period upto
one year and near substitutes to money is
used to denote any financial asset which can
be quickly converted into money with
minimum transaction cost.

69. MONEY MARKET INSTRUMENTS
Call/Notice Money
Treasury Bill
Term Money
Certificate of Deposit
Commercial Papers

70. Call/Notice Money
Call/Notice money is the money borrowed or lent
on demand for a very short period. When
money is borrowed or lent for a day, it is known
as Call (Overnight) Money. Intervening holidays
and/or Sunday are excluded for this purpose.
Thus money, borrowed on a day and repaid on
the next working day, (irrespective of the
number of intervening holidays) is "Call Money".
When money is borrowed or lent for more than
a day and up to 14 days, it is "Notice Money".
No collateral security is required to cover these
transactions

71. Term Money
Inter-bank market for deposits of maturity
beyond 14 days is referred to as the term
money market. The entry restrictions are the
same as those for Call/Notice Money except
that, as per existing regulations, the specified
entities are not allowed to lend beyond 14
days.

72. Treasury Bill
Treasury Bills are short term (up to one year)
borrowing instruments of the union
government. It is an IOU of the Government.
It is a promise by the Government to pay a
stated sum after expiry of the stated period
from the date of issue (14/91/182/364 days
i.e. less than one year). They are issued at a
discount to the face value, and on maturity
the face value is paid to the holder.

73. Certificate of Deposit
Certificates of Deposit (CDs) is a negotiable
money market instrument nd issued in
dematerialised form or as a Usance
Promissory Note, for funds deposited at a
bank or other eligible financial institution for
a specified time period. Guidelines for issue
of CDs are presently governed by various
directives issued by the Reserve Bank of
India, as amended from time to time.

74. Commercial Papers
CP is a note in evidence of the debt obligation
of the issuer. On issuing commercial paper
the debt obligation is transformed into an
instrument. CP is thus an unsecured
promissory note privately placed with
investors at a discount rate to face value
determined by market forces. CP is freely
negotiable by endorsement and delivery. The
minimum maturity period of CP is 7 days. The
minimum credit rating shall be P-2 of CRISIL
or such equivalent rating by other agencies.

75. CAPITAL MARKET INSTRUMENTS
The capital market generally consists of the
following long term period i.e., more than
one year period, financial instruments; In the
equity segment Equity shares, preference
shares, convertible preference shares, non-
convertible preference shares etc and in the
debt segment debentures, zero coupon
bonds, deep discount bonds etc.

76. HYBRID MARKET INSTRUMENTS
Hybrid instruments have both the features of
equity and debenture. This kind of
instruments is called as hybrid instruments.
Examples are convertible
debentures, warrants etc.

77. LIST OF TOP FINANCE COMPANIES IN
INDIA
• SBI Capital Markets Limited
• Bajaj Capital Limited
• IDBI Bank
• UTI Mutual Fund
• DSP Meriyll Lynch Limited
• Birla Global Finance Limited
• Housing Development Finance Corporation
• PNB Housing Finance Limited
• ICICI Group
• LIC Finance Limited
• India Infoline Limited

78. BRANDING – THE KEY ISSUE IN
FINANCIAL SERVICES
MARKETING

79. BRANDING – THE KEY ISSUE IN
FINANCIAL SERVICES MARKETING
In recent years, belief in the power of brands
and brand management has spread far
beyond the traditional consumer goods
marketers who invented the discipline. For
companies in almost every industry, including
financial services, brands are important in a
way they never were before and are now seen
as vital assets central to the business. Why is
this?

80. BRANDING – THE KEY ISSUE IN
FINANCIAL SERVICES MARKETING
Consumers now have a staggering choice of
products and services in each market
sector, with added impetus for growth
online, and a trusted brand stands out from
the crowd. As international reach increases
and companies expand abroad, the brand
name acts as the focal point for new market
entry. A strong brand offers all these
advantages, and more. But what constitutes a
brand and what are its components

81. BRANDING – THE KEY ISSUE IN
FINANCIAL SERVICES MARKETING
• The consumer’s perception of a brand is
crucial to its success, so a good starting point
is to examine perceived brand values. In my
view, brand values can be divided into two
categories:
• Core values, universally relevant - the vital
components of a strong brand
• Support values, of particular relevance to a
specific market sector.

82. WHAT CONSTITUTES A BRAND
Core brand values Support values
 Recognition/  Availability/distributio
awarenes n
 Trust/reliability  Product design
 Quality  Product range
 Innovation
 Value/price
 Professional expertise
 Service

83. BRANDING IN FINANCIAL SERVICES
Branding in financial services has its own
characteristics, the crucial element being consumer
trust, after all the institutions are handling your money.
For this reason in most cases the brand and the
institution’s name are one and the same, as in the case
of those quoted in the top 75.
Brand and reputation management are thus very closely
interlinked, forming an essential part of business
strategy, with staff training on brand values an
important support function. The need to maintain long
term customer relationships and to provide high
quality advice are also key to successful brands in the
financial sector.

84. CHALLENGES TO BRAND MANAGEMENT
IN FINANCIAL SERVICES
The current worrying events in the marketplace
are likely to favour big brands in the next few
years as consumers turn to established
institutions, with strong balance sheets, that
they can trust in difficult times. Together these
events present a formidable challenge to
financial services management

85. CHALLENGES TO BRAND MANAGEMENT
IN FINANCIAL SERVICES
• General loss of confidence in institutions, following the collapse of
Enron and WorldCom, with the revelations of corporate malpractice
in the US
• loss of confidence closer to home from problems in the insurance
• industry, first Equitable Life, now others including Royal Sun Alliance
• The precipitous fall in the Stock Market and the subsequent
negative impact
• upon investments
• Certain market sectors to which consumers are committed, such as
with
• profits and endowments, are not performing well, creating
confusion and
• anxiety
• The much publicised pensions shortfall and the ending of company
final
• salary schemes

86. FINANCIAL SERVICES—
OBJECTIVES/FUNCTIONS
Fund raising
Funds deployment
Specialized services
Regulation
Economic Growth

87. MAREKTING OF FINANCIAL
SERVICES
Intangibility, inseparability and heterogeneity are
manifested at both strategic and tactible levels in services
marketing.
Marketing strategy provides the organisation with a
sustainable competitive advantage in the markets it
operates.
Organization should understand consumer needs and
identifies how those consumers should be grouped into
different market segments.
Product attributes, pricing decisions, methods of
distribution and communication should all seek to reflect
the chosen position.

88. • Intangibility
• Inseparability
CHARACTERISTICS
OF SERVICES • Heterogeneity
• Perishability
• Customer
Orientation

89. BANK MARKETING
Provides services
Aimed to satisfy customer’s needs and
wants
Needs and wants may be non financial in
nature
Competitive element, efficiency and
effectiveness
Organizational objectives are still the
driving force
Commercial objective to make profit
Social Objectives

90. Essentials for a Banks Success
Cannot exist without customer
Create, win and keep customers
Organizational design should be
oriented to the customer
Deliver total satisfaction to the
customer
Customer satisfaction is affected by
the performance of all the personnel of
the bank.

91. BANK MARKETING
Provides services
Aimed to satisfy customer’s needs and
wants
Needs and wants may be non financial in
nature
Competitive element, efficiency and
effectiveness
Organizational objectives are still the
driving force
Commercial objective to make profit
Social Objectives

92. GUIDELINES ON
ADVERTISEMENTS FOR
FINANCIAL PRODUCTS &
SERVICES

93. GUIDELINES ON ADVERTISEMENTS
FOR FINANCIAL PRODUCTS &
SERVICES
These guidelines cover the principles that apply
to advertisements for financial products and
financial services. This means advertisements
about financial products and advertisements
about advice in relation to financial products.
The purpose of these guidelines is to assist
members of Commercial Radio Australia
understand the obligations that relate to these
types of advertisements.

94. TRADE PRACTICE ACT
As with the Trade Practices Act, the onus is on advertisers to
ensure that advertisements for their financial products and
services comply with the relevant law. Commercial radio
stations that accept advertisements in the ‘ordinary course
of business’ would not be liable for advertisements that
breach these laws unless can be proved that a relevant
person at the station knew or had a reason to suspect that
the advertisement was misleading or deceptive. If the
script for an advertisement is created by your station, it is
necessary to get the approval of the advertiser for both
the concept and all statements made in the advertisement

95. SPECIFIC RULES DESIGNED FOR
CONSUMERS
Many financial products and services are subject to specific
rules designed to ensure that consumers:
• are treated efficiently, honestly and fairly, and
• receive the information they need to make an informed
decision about a financial product or service.
The Australian Securities and Investments Commission (ASIC)
enforces the law on financial products and services. ASIC
is unlikely to find fault with advertising that follows these
general principles.

96. RISK TO AVOID
When it may be misleading
Claims that need care and deceptive
• ‘Independent advice’ or ‘impartial advice’ • If the adviser is getting paid commission
or receives other benefits from a
supplier
• 'Free'
• If any direct or indirect costs apply or
benefits are given up
• Comparisons
• If not done on a fair and equal basis or
if unexpected assumptions are not
stated
• 'The best deal'
• If the deal is selected only from a
limited range, not the whole market

97. RISK TO AVOID
When it may be misleading
Claims that need care and deceptive
• If the claim is made without
• ‘Expected to earn X%’, ‘high reasonable grounds or if risks are
returns expected’, 'excellent understated
returns forecast‘
• 'Guaranteed returns' • If returns are not truly
guaranteed
• ‘Returns of X% over the past • If the performance is based on
selective, out of date or
Y years’, ‘better than market hypothetical figures
rates of return’, ‘top
performer'. • If the advertisement implies past
performance will continue

98. RISK TO AVOID
Situations that need care When they might breach the law
• If the advertiser does not hold an
• Express or implied ASIC licence to give either general
recommendations about a or personal financial advice
financial product (Loans are excluded from ASIC
licensing, but the law against
misleading and deceptive
advertising still applies)
• Personal endorsements • If the personality suggests
relevant knowledge but has none

99. RISK TO AVOID
Situations that need care When they might breach the law
• If the personality suggests relevant
knowledge but has none
• Personal endorsements
• If the product or service differs from
• Correct labelling of a what people would usually expect
from that label
product or service
• Holding out that a financial services
provider is licensed when it is not, or
if only a part of the advertised
• Referring to Australian service is licensed
financial services licences
•

100. RISK TO AVOID
When they might breach the
Situations that need care law
• If the terms and conditions or
• Offers or claims subject to qualifications greatly reduce
terms and conditions or the benefits being advertised
other qualifications and
• • are not mentioned:
• • are understated; or
• • are hard to hear

101. SPECIFIC FINANCIAL PRODUCTS
ADVERTISING RULES
By law, advertisements for these types of financial
products must:
identify who is issuing the product;
 state that a product disclosure statement is
available and where it can be obtained
 indicate that people should consider the product
disclosure statement in deciding whether the
product being advertised is appropriate for them

102. ADVETRTISING OF SHARE
OFFERS, DEBENTURES AND OTHER
•
SECURITIES the public for
Share floats and raising of money from
investing can involve complex legal requirements.
Organisations issuing shares, debentures and other
securities are required to make certain disclosures to
potential investors via a prospectus or PDS and may also be
subject to other rules.
• Radio stations should ensure that an advertiser advertising
a share offer has obtained legal advice about its
requirements in relation to any advertisements for that
offer.
• Advertising of an offer of shares, debentures and other
securities is not allowed unless a prospectus or PDS has
first been lodged with ASIC.

103. ADVETRTISING OF SHARE
OFFERS, DEBENTURES AND OTHER
SECURITIES
• Once a prospectus or the product disclosure statement
has been lodged with ASIC, any advertisement about a
share float or the issuing of other securities must
include a statement to the effect that:
• (a) the offer is made in a copy of or accompanied by a
disclosure document; and
• (b) anyone wishing to invest or acquire the particular
securities will need to complete the application form
that will be in or accompany the disclosure document.

104. SIGNS OF ‘SUSPECT’ ADVERTISERS
Occasionally you may encounter financial products or services
that breach Australian law. There are usually warning signs
that can signal an increased risk of unlawful activity. For
example:
• Investments or investment advice operated from overseas
(providers of financial products or services require an
Australian Financial Services Licence).
• Schemes for accessing superannuation ahead of genuine
retirement.
• Very high returns on investments, for example more than 15-
20% per year in today’s market or other implausible claims.

105. CHALLENGES OF FINANCIAL
SERVICE BRANDING

106. CHALLENGES OF FINANCIAL SERVICE
BRANDING
Branding in financial services is undergoing
substantial changes, owing to the dramatic
increase in competition following deregulation
and the threat posed by new entrants with retail
branding experience. Success in what is fast
becoming an overcrowded market will depend on
effective brand differentiation, based on the
identification, internalisation and communication
of unique brand values that are both pertinent to
and desired by consumers.

107. DIFFERENTIATING SERVICE BRANDS
THROUGH VALUE MANAGEMENT
• Branding in services marketing is about the blending of
functional and emotional values . Free proposed that
services branding was about values, which “represent
the heart and soul of a company” . Emotional values in
particular are becoming increasingly important in
differentiating brands. Previous research indicated that
a brand’s emotional added values are more sustainable
than functional added values, which may be easily
copied noted that, in common with fmcg
marketing, financial services brands tended to focus on
product features
• rather than true brand values.

108. DIFFERENTIATING SERVICE BRANDS
THROUGH VALUE MANAGEMENT
• Successful services brands attract, develop and retain
staff who can translate the brand’s values into actions
and behaviours perceived by consumers as appropriate
and distinctive.
• Having devised the cluster of internal values, managers
then need to develop and promote the service brand
to achieve alignment between the brand’s, staff’s and
consumers’ values.
• financial services branding faces a number of
challenges. For consumers, choosing a financial
services product is an important decision entailing high
risk without the scope for trial or sampling alternatives
and they promote intangible benefits.

109. DIFFERENTIATING SERVICE BRANDS
THROUGH VALUE MANAGEMENT
• Services brand marketers’ perceptions about
the values of their brand differ.
• Financial services brands will have more
functional values than emotional values.
• The values of financial services brands are not
unique brand values, but rather generic
category values.

110. VALUE OF FINANCIAL SERVICE
BRANDS ARE NOT UNIQUE
• The values of financial services brands are not
unique brand values, but rather
generic category values.
• The early evolutionary stages of branding
focus on the brand as a positioning
device, drawing strongly on functional value.
Branding in financial services is still a fairly
recent development

111. Financial services brands will have
more functional values than
emotional values.
• Successful values management requires
understanding and agreement about a brand’s
values
• by those responsible for brand strategy, before
they can be cascaded to staff and consumers.
• However, previous research has indicated that
managers’ perceptions in the same firm may
differ .

112. THANK YOU