Report - Competing through Marketing Assignment

Report - Competing through Marketing - Assignment Example Marketing planning is a strategic process used by organizations to predict the future environment of the business for the sole aim of strategizing on the appropriate strategy for maximizing the full potential of the existing and future market. In organizations, market planning helps in allocation of resources, identification of the strengths and weaknesses and provides advance warning. Overall, marketing in organizations revolves around expanding the market, increasing the organization’s profit, exhausting resources, and targeting the right market (Lecture 1 & 2). Trends in banking and financial services Globalization According to Cummins and Venard (2007), different supranational agencies which include the World Bank and World Trade Organization have been major contributors in promoting globalization to the entire world, with a specific impact been focused to Asia. A good example in respect to this is in 2001 when the Chinese government was signatory of the WTO; there were cr ucial commitments made by the government in terms of liberalizing insurance industry. A new stage was hence created for the development of the insurance sector and opening of the market was enhanced instead of the previous restricted market (Padmalatha, 2011). Moreover, globalization ensures the ease of financial firms accessing the market beyond the borders of their country of origin. Globalization also ensures future penetration of foreign firms to a foreign market (Cummins and Venard, 2007, p.19). Private insurance In the past, majority of countries relied on government programs and insurance companies but of late, the trend has changed as they are relying on private insurance companies that have become dominant in the economy. Moreover, government insurance companies have diminished in time due to wave of privatization (Cummins and Venard, 2007, p.19). New technology Financial firms have witnessed advancement in new technology over the past few years. This has increased and enha nced marketing of new products in a rapid manner as compared to the past. New technology has brought with it an introduction to new sophisticated products. In insurance industry, for instance, there is an introduction of universal life insurance, which can be termed as a change facilitated by development in communication and computer technologies (Cummins and Venard, 2007, p.19). Differences between building societies and banks Building societies are mutual societies, which mean that, they are owned by members. These members either have taken a mortgage with the society or have invested with them. On the other hand, banks may not possess shareholders who earn dividends from profits earned; instead, the profit earned in banks is normally ploughed back into the firm. Basically, the difference between the two is based on their nature of lending (Boleat, 1985, p.4). In terms of raising money, building societies normally offer mortgage loans when purchasing a house. In this case, the hou se acts as the security against the received loan. In addition to this, building societies can transact loans, which are unsecured. These loans mainly