Examples are post offices and real estate agents

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Unformatted text preview: not being traditional financial services outlets, have a strong affinity with them. Examples are: post offices and real-estate agents. Advantages of QFSOs Disadvantages of QFSOs Face-to-face sales channels Direct sales-force have been the backbone of the life assurance industry throughout the world for decades. The prospecting funnel Bancassurance I As the name implies, this is a form of distribution that has its origins in France. In simple terms, it concerns the provision of life, pension and investment products by a banking organization. Bancassurance II The real power of the bancassurance model derives from its ability to: • Achieve low customer acquisition costs • Maximize cross-selling opportunities • Utilize relevant customer data. Advantages of Bancassurance Disadvantages of Bancassurance Advantages of Telephone-based distribution Disadvantages of Telephone-based distribution Advantages of Internet-based distribution Disadvantages of Internet-based distribution Franchisee Defined A franchisee holds a contract to supply and market a product or service to the design or blue-print of the franchisor (the owner or originator of the product or service). Example Source: entrepreneur.com Multi-channel distribution Multi-channel distribution strategies are now the norm for most mainstream, mass-market financial services organizations. For the typical clearing bank, such a multi-channel approach will compromise: • The branch network • A direct sales-force • Direct mail • The internet • Telemarketing • Direct-response advertising Channel Strategy Channel strategy refers to the approach taken about the allocation and performance of roles, the basis of remuneration within the system, and the effectiveness of alternative configurations in enabling market penetration to be achieved competitively and efficiently. Competition in Channels • • • • Horizontal Intertype Vertical Channel system Channel Conflict Defined Channel conflict refers to tensions between two channel members which arise from incompatibility of actual or desired responses. Areas of conflict • Manufacturer/ retailer brands • Prices/ margins/ discounts discounts • Quality • Special services • Territory exclusivity • Market information • Direct sales • Delivery arrangements/ schedules • Product exclusivity • Contract flexibility • Display/ promotion prominence • General compliance • Listing money Question What channels of distribution does your organization (or favourite one) use? Which are direct and which are indirect? Which is the dominant channel, and why?...
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This document was uploaded on 03/02/2014.

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