Financial Service Strategies Neglected Niches

Financial Service Strategies Neglected Niches Companies cannot realize their growth and profit objectives if theyfail to finetune their offerings to the needs of neglected marketsegments. Because market penetration is the least expensive growthstrategy, increased efforts directed towards existing customers are ontarget, but often key implementation activities have been amiss. Somecompanies have lost sight of the basic tenet of the marketing conceptfailing to understand their customers unmet needs. Such firmsmay think they know their customers so well they can simply increasetheir offerings without examining the unique needs of various customersubsegments. In the retail financial service industry, providers haveimplemented growth strategies by focusing on their current customerbase, which included women and customers over 50 years of age. However,providers failed to recognize the value of these subsegments and did notdevelop specific tactics to address their financial perceptions andneeds. The increased importance of women as financial decision makersalong with the proportion of financial assets controlled by consumersover 50 years of age are critical to future growth for the financialservices industry. Outlines strategic guidelines for capitalizing onthese profitable subsegments and examines implications for organizationswhich have failed to finetune their strategies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Bank Marketing Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0265-2323
DOI
10.1108/02652329210012131
Publisher site
See Article on Publisher Site

Abstract

Companies cannot realize their growth and profit objectives if theyfail to finetune their offerings to the needs of neglected marketsegments. Because market penetration is the least expensive growthstrategy, increased efforts directed towards existing customers are ontarget, but often key implementation activities have been amiss. Somecompanies have lost sight of the basic tenet of the marketing conceptfailing to understand their customers unmet needs. Such firmsmay think they know their customers so well they can simply increasetheir offerings without examining the unique needs of various customersubsegments. In the retail financial service industry, providers haveimplemented growth strategies by focusing on their current customerbase, which included women and customers over 50 years of age. However,providers failed to recognize the value of these subsegments and did notdevelop specific tactics to address their financial perceptions andneeds. The increased importance of women as financial decision makersalong with the proportion of financial assets controlled by consumersover 50 years of age are critical to future growth for the financialservices industry. Outlines strategic guidelines for capitalizing onthese profitable subsegments and examines implications for organizationswhich have failed to finetune their strategies.

Journal

International Journal of Bank MarketingEmerald Publishing

Published: Feb 1, 1992

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