BXXXX-XX Name of Course - Columbia Business School



B8609-001 Strategic Marketing of Financial ServicesSpring 2017, A termProfessor SeshadriProfessor:Raj Seshadrirsronv@Classes:Office Hours:Class structure: URI 141, 5:45-9:00 pm Fri Jan 27, Mon Jan 30– Mon Feb 27 First class is MandatoryAfter classApproximate schedule, may vary:First half of class– Announcements/discussion and content/case studySecond half of class - Guest speaker TA TBDCOURSE DESCRIPTIONStrategic marketing of financial services is unique in its incredible diversity, strict regulatory requirements and unique challenges, even though many of the foundations of marketing in financial services are similar to marketing in other industries. Marketing and strategy are intimately linked in financial services, as marketing insights drive strategy and strategic aspirations drive marketing. Marketing of financial services can be Business-to-Business or Business-to-Consumer, and in many cases it is both. Marketing often differs in an important way from other financial services functions, in that it is both quantitative and qualitative – it is both creative and analytical.The financial services sector is the set of industries that provide financial products and services to consumers and businesses. Examples include credit cards, payments, merchant services, retail banking deposits and lending, insurance, brokerage, asset management, wealth management, hedge funds etc. Marketing broadly is about developing intelligence and insights about customers, competitors, and the business environment, and then using these to shape the business which includes driving sales, profits, and perception. The overarching goal is to serve customer needs profitably and differentiated from competition. Marketing is a very critical area that drives differentiation and distinctiveness in financial services. Understanding and leveraging customer preferences, perceptions and behavior is of key importance. Segmentation is critical. The availability of information provides for sophistication, yet execution often requires simplicity. Strategic marketing plays an important role during all stages from value proposition development to identifying sources of competitive advantage. Product development, targeting, position and management as well as pricing also involve a regulatory dimension. Translating all this into tactics requires crisp messaging across a wide array of channels including traditional advertising, digital marketing, direct marketing, promotions, collateral, event marketing, product marketing, communications, and media relations. The importance of reputation, particularly since the financial crises and through this economic cycle, makes managing the customer experience and interactions across all sales and service touch points an important element. The role of a brand – its relevance, ability to drive differentiation and loyalty - is different from more traditional consumer businesses. And ability to think globally together with understanding of local differences often matters, as does managing through mergers and acquisitions, given the period of industry consolidation. This class will focus on a combination of interactive case studies, dialog on specific articles, and conversations with guest speakers who work in this area. Students will improve their ability and knowledge of marketing in this sector, and learn about careers in financial services. Students will be assessed based on (1) Case participation and preparedness – with a focus on conduct and quality; (2) A written report and class presentation on a project (on the last day of class) that critically assesses all the facets of marketing for a specific financial institution.B6601 - the first part of the two-part core marketing sequence - is a prerequisite for this course.Course Objectives:The main objectives of this course are to improve your ability to:Assess strategic opportunities in financial services sector by analyzing customers, competitors and the strengths and weaknesses of a company.Design, communicate and defend effective marketing strategies to maximize a company’s chance of success in the markets in which it competes.Understand potential career paths in financial services.COURSE MATERIALRequired ReadingThe key resources for the course are B8699-001 Readings and Case Packet. Any readings added during the term will be communicated to you in class.STUDENT EVALUATIONCase Participation & Preparedness 35%Type BEngagement with Guests in Class35%Type BGroup Assignment30%Type AThese align to the assignment types delineated by the UniversityTypeDesignationDiscussion of concepts Preparation of submission GradeAgroup / group Permitted with designated groupBy the groupSame grade for each member of the group Bgroup / individual PermittedIndividually (No sharing ofany portion ofthe submission)IndividualCindividual / individual None of any kind IndividuallyIndividualDAn optional category to be defined in detail by the individual faculty memberThe school laptop policy will be observed: laptops, cell phones, tablets, and any other wireless devices are prohibited. Please print out whatever you need and bring it to class in order to facilitate discussion.You are expected to conform to the norms of behavior outlined in the Columbia Business School Integrity Code. Any allegation of academic dishonesty will be forwarded to the Office of Student Affairs for investigation. Any case of proven academic dishonesty will result in failure of the course.(1) Case Participation & PreparednessA portion of class time will be devoted to analyzing assigned cases. The case method is one of the most effective means of sharpening your decision-making abilities. A case discussion requires that you be an active participant. The discussion format provides an opportunity to argue for your position and to learn from others by listening to their comments, analysis, and criticism. You will learn the most from the cases if you and your classmates prepare and participate fully. For that reason, your class participation / class preparedness grade will be based on:Attending class and being on time.Being prepared for class which will be necessary to participation.Participating in class. This is the most important element and will be based on your conduct in class and the frequency of quality comments. Sheer quantity is neither sufficient nor necessarily desirable. Quality comments that are rare are not sufficient either. Participation should productively move the dialog forward. Criteria include:Comments that add to our understanding of a case or situation. Comments supported with robust qualitative and/or quantitative reasoningComments that take into account the comments of your classmates and are relevant to the topic under discussion. (2) Engagement with Guest Speakers This class will give you exposure to successful professionals in financial services marketing. They will speak about what they do, cases they have worked on and their career paths. Note - the sequence of speakers will not always align to the sequence of class topics as the scheduling of speakers is based on their calendar and availability.You will be assessed on how you capitalize on this opportunity in the classroom. Always remember that these are our Guests at Columbia and your conduct will shape their impression of our school. Thoughtful listening, comments and questions supported by logical reasoning, and participation that enables the whole class to get as much as possible from the Guest are key areas of focus and assessment(3) Group AssignmentThe assignment is to be done in groups of 4 to 6 students. For this assignment your group will select a financial services firm. The assignment should include a description of the firm, the market it operates in and the core tenants of its strategy. The assignment should then critically assess the company’s marketing efforts and their link to the company’s strategy across as many dimension of marketing as are applicable. Constructive observations on what they do well and what they could to better/differently will be expected.You can communicate your preferences for being in a group together, but we reserve the right to intervene and reassign you to balance all the groups out. Any group preferences need to be communicated to us by Thu Feb 2 . Final groups will be communicated to everyone on Mon Feb 6. Once these groups are communicated no further changes to group composition will be made.A one page written summary of the company and topics your group has chosen is due in class on Mon Feb 13. Presentations will take place during class on Mon Feb 27. The final written assignment is due by end of day on Mon Mar 6. It should not exceed 6 pages of text and can also include up to 3 pages of exhibits. All assignments should be typewritten in 12-point font, double-spaced, with one-inch margins. No late submissions will be accepted. Tentative Schedule (subject to change): Regular class time is Mon 5:45-9 pm - but note GSB schedule has a class on Fri Jan 27 Class TopicRequired readingFriJan 27Introduction Reading – Chapter 3, Marketing Financial Services by Hooman EstelamiMon Jan 30Centering on the CustomerCase – Schwab & Co., Inc: The “Talk to Chuck” Advertising CampaignReading – The Customer Has Escaped, HBR 2003Submit group preferences by Thu of this weekFinancial Services AdvertisingGuest SpeakerMonFeb 6Segmentation, Product, & PricingCase – Merrill Lynch: Integrated ChoiceReading – Chapter 8: The Discrete Charms of the CMA, Joseph Nocera, A Piece of the ActionReading – A Logo is Not a Brand, HBR 2011Groups definedMarketing in Retail BankingGuest SpeakerMon Feb 13Branding in BankingCase – Citigroup: Re-Branding in 2007 (A)Reading – See Your Brands Through Your Customers Eyes, HBR 2001Group summary dueMarketing in Consumer Credit Guest SpeakerMon Feb 20Customer Profitability: Data and AnalyticsCase – Customer Profitability and Customer Relationship Management at RBC Financial Group (Abridged) Reading – Why Fusing Company Identities Can Add Value, HBR 2011Reading – The Quest for Customer Focus, HBR 2005Marketing of Hedge FundsGuest SpeakerMon Feb 27GroupsGroup PresentationsMon Mar 6Final Group Written Assignment DueRecommended books (chapters above are required reading, others in the books are optional): Marketing Financial Services by Hooman EstelamiA Piece of the Action by Joseph NoceraAdditional class (pending time availability): Digital innovation: Man vs. MachineCase – The Vanguard Group in 2015: Celebrating 40 Reading – The Virtual Financial Advisor: Delivering Personalized Advice in the Digital Age, McKinsey, 2015Reading – Hungry Robo-Advisors Are Eyeing Wealth Management Assets, Morningstar 2015Reading – DOL Proposes Rule to address conflicts of interest in retirement advice, protectyoursavings/FactSheet COI ................
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