CHAPTER 7- ADVERTISING IN

FINANCIAL SERVICES

1. ADVERTISING
Advertising is non-personal communication
(perhubungan/komunikasi yang bukan bersifat
langsung) directed at target audiences through
various media in order to:
present and promote products,
services and ideas,
the cost of which is borne by an identified
sponsor or sponsors.
Advertising in banking alerts a potential user
that a service or product will help him to reach
his objectives/goals./satisfied its need
E.g: someone to keep his money safely or
borrowing to buy a new house.

The principle missions of

advertising
1.
2.

To inform (MEMBERITAHU), while at the same time

to persuade (MEMUJUK)
To alert potential users to a service or product which
will help them to reach an objective

What, when and how to advertise, however, should be

determined only AFTER ..
the organisations objectives, as well as customers
needs, have been determined via market research!

ROLES OF ADVERTISING
The banks came up against 2 basic problems.
1.

2.

Banks had a somewhat poor image and most

people could not distinguish one bank from
another
The various services available to the public
were largely unknown quantities

As a result, the forms and roles of advertising

are:
Pioneer advertising, e.g. to announce a new
fixed rate house mortgage
Competitive advertising, e.g. to promote a
newly developed product, say telephone
banking & SMS banking.nokia vs motorola h/p.
Reinforcement advertising, whose task is to
reduce dissonance (perkara yg jangkal @ tidak
sedap didengar)..

Objectives pengiklanan:
1.To inform
2.To persuade, 3. To influence,
4.To convince
3.To remind

In order to meet these problems the advertising

policies of the various banks have evolved through
3 main stages:

1.

In the initial stage

The campaigns were based on the banks name,
emphasizing strength in order to convey a guarantee of
security.

2.

In the second phase

The advertising tended to be geared towards
announcements of new or important product @
services.
The basic gimmick was the distinguishing of one bank
from the others by the offer either of exclusive services
or of services claimed to be exclusive!!!

3. Third Stage
Try to humanise themselves by creating an
image designed to spark confidence in the
customer.
Eg: Focus on customer concern/care,assistance,
advice, security protection,secured, etc.

The types of advertising that a bank may

adopt will depend upon its short-term and
long term objectives.
For e.g : A bank that is attempting to achieve a
long-term build up of its name will be
particularly interested in institutional
advertising.
On the other hand , a bank that is more
interested in building up a brand name would
adopt a policy of brand advertising.

Leaflets,
pamphlets,
explanatory
guides,manual

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Television,
Radio,
Posters,
Newspapers,
Direct mail

MAJOR TYPES OF ADVERTISING

i)

a)
b)

Institutional advertising
Institutional advertising generates the long
term build up of a banks name. This can be
broken into 2 aspects.
Promotion of the banking image as a whole.
Promotion of the products to be offered by
the bank, but major emphasis is placed on
the banks name! (lebih kpd strategi
pengiklanan yg bertujuan utk menaikkan
nama baik/imej sykt)

In other words, by using institutional

advertising the bank is seeking , through
its marketing communications, to build
an impression upon the customer of the
bank and also to impress the customer
who wants the best range of financial
services.
(to attract the attention of the target
customers and create an image that is
honest, friendly and welcoming!)

ii) Brand advertising

Brand

advertising is advertising of
services.
It aims to the recognition of the banks
name but it is also advertising the banks
different services.
Brand advertising follows closely in the
footsteps of institutional advertising.

Advertising channels
Above the line advertising
This consists of channels of communication such
as:
Television
Radio
Newspapers
Posters
Magazines
Cinema

Below the Line Advertising

This type of advertising forms a major part of the
financial firms activities and comprises:
Leaflets (risalah)
Pamphlets (surat sebaran)
Flyers
Explanatory guides
Manual instruction

 Below

the line advertising has the advantage of

being cheap and very easy to produce, but
it has severe limitations in that it must be used
discreetly (secara senyap2/diam2 @ berhati2),
it does not attract new customers but merely
offers existing customers more services and
it depends largely on personal selling for its
effectiveness.

Direct Mail (Above the line)

Direct mail it is often also known as direct
mktg
It could be defined as offering a financial
product and influencing the buying decision
without a face to face meeting
Direct mail is used (e.g. To promote low cost
insurance, medical insurance for women)
Has a tremendous impact on financial services
mktg particularly insurance
E.g. about 10% of all new life assurance
business is generated via direct mail by both
insurance & building societies

 This

method of communication has led to the

development of mailing lists (rented, special
club, groups, associations)

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Advantanges of direct mail

It

is possible to change market targets at short

notice It is possible to predict response rates and
match costs accordingly
It is highly cost effective method of reaching
customers that are normally seen as an
important target market for salespersons or
intermediaries
It generally enhances customers awareness

skp

Disadvantages of direct mail

Class

Discussion!!!!

2. Promotions
The

term promotions refers to the use of

persuasive information that, in conjunction with
other elements of mktg mix, relates to the
target market.
The financial firm has to decide how
information about the organisation and its
services will be disseminated.

4 elements of the mktg

communication mix are generally
recognised
ADVERTISING

paid non personal

presentation and promotion of goods and
services by an identified sponsor .e.g:
television, & radio.
PERSONAL SELLING-verbal presentation of
persuasive information to potential customers.
In the banks this is generally confined to the
branch manager, mktg staff.

 PUBLICITY/PUBLIC

RELATION- non personal

stimulation of demand through news that is not
paid for by sponsor. In banking, newspaper
reports give various types of information about
the banks. Homepage bank/internet
banking/phone banking,sms.
SALES PROMOTIONS-short term incentive
to encourage use of a service.
In banking these include the use of book
tokens/diary, pictorial cheque books (cheq
bergambar), open s/ac gets umbrella,coin
box,teddy bear,pen & etc.
Continuous promotionexample?

ELEMENTS OF MKTG
COMMUNICATION MIX
MASS
COMMUNICATION
ADVERTISING
PUBLIC RELATION
SALES PROMOTION

PERSON-TO PERSON
COMMUNICATIONS
PERSONAL SALES

Sales promotions
Can

be defines as a short term incentives to

encourage the purchase of sale of a product or
services.
Sales promotions have two distinctive qualities:
1. Bargain chance
2. Product demeaning

1. Bargain chance
Telling buyers of a chance that will not be
available again something special (in the
future)-eg: merdeka promotion!.
2. Product demeaning (merendahkan product)
If promotions are used too frequently &
carelessly the potential buyer may be led to
wonder whether the financial service is reliable
or reasonably priced.

Financial services mgrs identify a number of

objectives sought by using promotions:
To attract new customers
To increase the level of deposit accounts
To lower the cost of acquiring new customers
by seeking to avoid direct price competition
with other financial institutions
To increase market share in selected market
segments

Personal Selling
Personal

selling is defined as oral presentation

in a conversation with one or more
prospective purchasers for the purpose of
making sales
This is perhaps the most important element in
the communication process of the financial
services industry

 It

can be and is used for many purposes.

For example:
creating product/service awareness,
developing product/service preference
negotiating prices & other terms (eg. Interest
are negotiable)

The advantages of personal selling

1.
2.
3.

Personal confrontation
Cultivation (memupuk/memelihara) of
financial services-customer relationships
Response (immediate feedback)

1.

Personal confrontation
Personal selling enables an immediate and
interactive relationship between buyer & seller
Each party can observe the others
characteristics, needs & wants, & react
accordingly
Each party has the opportunity to inspire trust,
honesty, & responsibility, willingness to help
In turn can help the interactive process of
selling

skp

2. Cultivation of financial service-customer

relationship
Personal selling permits the growth of
relationships to a level greater than a mere
matter of fact selling.
The sales person has the opportunity to win
over the buyer

skp

3. Response
Personal selling makes the buyer feel under
some obligation to purchase the service that
the sales representative has gone to some
length to discuss.
At the very least he or she feels a greater need
to attend to what is being said

skp

In view of the importance of Personal Selling,

particularly of insurance, the salesforce needs
not only to be trained in the art of selling, but
they must also be aware of all the services
available & be able to explain clearly what
each service offers. In addition they must be
aware of the needs of their individual
customers so that they can either refer
customers to, say, the branch manager, or
suggest appropriate services themselves. Staff
must live up to the organisational image of
trust, reliability, responsibility, familiarity &
friendlines. In order to meet these
requirements & to understand customers
reservations & problems, (for example the
insurance salesperson will make a sale).

Publicity
Publicity

is perhaps the least controllable

element of the communications mix, since it is
the media who will tend to decide what is
newsworthy.
Publicity gives positive & negative impact.
E.g. Positive-high bank profits

Negative-high insurance losses

 Publicity

can create a memorable impact on

public awareness
Low budget required.
Appoint public relation officer-PR (full-time job
to generate publicity)
The number & roles of specialized PR
companies in financial service is growing!

 Publicity

can be a useful means of

communication if it is properly & carefully
manipulated
Its qualities include:
High credibility
Reliability news
Significant news about certain services
(through radio, tv, newspapers, internet &
etc)
Greater impacts

The roles of sponsorship

Sponsorship is not as effective as advertising
or other forms of promotion
Sponsorships main aim is to build
brand/product/corporate awareness, or a
corporate image!
Financial services companies have for many
years been sponsoring sports, arts & other
events, including expedition, social &
community projects, fashion, music, industry &
commercial developments & etc.
Social obligation & can enjoy tax exemption
Bank Islam-sponsor forum perdana
Takaful Malaysia-sponsor seminar

Conclusion
Advertising

plays an important part in the

financial services mktg program, although it is
unclear to what extent it contributes directly to
sales.
Its function are as follows:

It keeps a financial service organisations name in

the foreground well known!
(public should be aware of a specific firms
existence)
It can create an image for the financial firm
(by creating a friendly, sharing, caring &
competent/good image)
It reinforces (pengukuhan) point of purchase
communication & personal selling
(enables people to choose and pick-up the leaflets &
pamphlets that interest with them)
(enables employees to refer their customers to
comprehensive guides)
It motives staff & boosts morale
(staff more motivate, good image, team spirit & etc)

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Proses Jualan Peribadi

Dalam proses jualan peribadi tahap-tahap
berikut perlu dikaji oleh syarikat dan staf jualan
bagi mengatur strategi jualan yang berkesan.
Langkah-langkah dalam proses jualan peribadi
adalah seperti berikut:
1. Mengenalpasti bakal pembeli berpontensi
2. Pra-Pendekatan
3.Pendekatan
4.Persembahan dan demonstrasi
5.Mengendalikan bangkangan/soal jawab
6.Penutup
7.Susulan

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1.

Ia

Mengenalpasti bakal pembeli yang

berpontensi

dapat dilakukan melalui pembeli sedia ada,

pembekal, staf jualan dari syarikat bukan
pesaing dan beberapa sumber lain seperti
sumber bercetak.
Tidak semua bakal pembeli boleh ditukarkan
kepada pembeli. Mungkin hanya seorang
pembeli yang telah dikenalpasti daripada ramai
bakal pembeli (potential buyers) yang boleh
menjadi pembeli.
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2.Pra-Pendekatan
Sebelum

44

berjumpa dengan bakal pembeli, staf

jualan haruslah cuba mencari banyak
maklumat tentang organisasi dan individu
(pegawai) yang terlibat secara terus dengan
aspek jualan dan pembelian dari organisasi
pembeli.
Staf jualan juga harus memikirkan jenis
pendekatan yang paling sesuai sama ada
melalui lawatan jualan, panggilan atau surat ke
organisasi pembeli. Staf jualan perlu kenal
pasti masa terbaik untuk perjumpaan dengan
pembeli.

3.Pendekatan
Pendekatan

adalah cara bagaimana staf jualan

berhadapan dengan bakal pembeli. Pembuka
bicara, tingkah laku serta tatatertib memainkan
peranan bagi mendapatkan reaksi yang positif
dari pembeli untuk tahap berikutnya.

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4. Persembahan & demonstrasi

Bagi

produk baru, persembahan dan

demonstrasi adalah lebih berstruktur iaitu
mengikut skrip yang telah disiapkan oleh
syarikat.
Satu lagi pendekatan adalah dengan
mengenalpasti keperluan pembeli dan
berusaha untuk menerangkan bagaimana
produk boleh menyelesaikan masalah syarikat
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5. Mengendalikan bangkangan/soal
jawab
Bangkangan

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boleh berbentuk soalan negatif

tentang produk dan membandingkan secara
negatif produk lain dengan produk sedia ada.
Staf jualan haruslah menggunakan
pendekatannya yang positif dengan mencari
maksud disebalik bangkangan dan
menggunakan bangkangan sebagai alasan
bagi pembeli untuk membeli produk. Staf
jualan harus menjelaskan tentang kualiti,
fungsi, harga serta jaminan produk dalam
mengatasi bangkangan.

6.Penutup
Staf

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jualan harus mengenalpasti tanda-tanda

persetujuan pembeli dan bakal pembeli untuk
membeli. Staf jualan boleh juga menggunakan
pendekatan tawaran harga atau kuantiti
tambahan produk yang ingin dibeli sebagai
alasan untuk menutup (mendapatkan
persetujuan) proses pembelian. Apabila
persetujuan diterima, tarikh penghantaran,
syarat2 pembelian dan perkara berkaitan
haruslah dilengkapkan.

7. Susulan
Tindakan

susulan penting bagi memastikan

pembeli berpuas hati dengan pembeliannya
dan kemungkinan membuat ulangan
pembelian.

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3. Pendekatan
Pendekatan

adalah cara bagaimana staf jualan

berhadapan dengan bakal pembeli.

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Perbezaan antara perhubungan awam

dengan pengiklanan di dalam
pemasaran perkhidmatan kewangan.
1.

2.

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Kredibiliti perhubungan awam dan publisiti

adalah lebih tinggi berbanding
pengiklanan
Kos mengendalikan perhubungan awam &
publisiti adalah lebih rendah berbanding
dengan kos pengiklanan ataupun kos
jualan peribadi.

 3.

Lebih maklumat diperolehi melalui

perhubungan dan publisiti berbanding
pengiklanan yang singkat sahaja
paparannya.
4. Tiada kekangan masa. Maklumat boleh
dihebahkan melalui sesi siding akhbar
ataupun pihak syarikat menghantar
bahan kepada pihak media untuk
siaran
berita.
Pihak
syarikat
dapat
menghebahkan sebarang maklumat
pada kadar segera terutamanya
apabila
sesuatu yang tidak
dijangkakan
berlaku. Maklumat yang disampaikan
kepada televisyen agak terbatas.
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 5.

Maklumat yang disampaikan oleh

perhubungan lebih mudah dan tidak
melibatkan banyak birokrasi manakala
pengiklanan lebih banyak birokrasinya.

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