Importance of Marketing For Investment Banking
Marketing Strategy for Investment Bankers
I. Overview
This paper sets out to explain how the concepts underlying marketing strategy, which is may be seen as applicable only to industries that provide tangible goods, such as iPads or pharmaceutical drugs, are nevertheless relevant to a service-based industry like investment banking. First, I will define marketing strategy and briefly describe its various elements. Next, I will define investment banking and give a brief description of the various services provided. Finally, I will explain how understanding marketing strategy provides additional rigor and insight to an investment banker’s decision making process.
II. Marketing Strategy Overview
Marketing strategy is a firm’s long-term strategy for establishing and maintaining a competitive advantage in the market. It involves decisions about what products to bring to market, how the product should be priced, how it should be distributed, and how it should be promoted – the “marketing mix”. Marketing strategy recognizes that decisions about the marketing mix are interrelated and that they must change over the lifetime of the product.
One fundamental concept to marketing strategy is the product life cycle (the “PLC”). This embodies the idea that a product’s sales volume will change over time and in a predictable pattern.
Every product will go through four stages: introduction, growth, maturation, and decline. The goal of marketing strategy is to anticipate each product’s life cycle and to modify the marketing mix in anticipation of the product’s progression through that cycle.
A. Stages of the Product Life Cycle
1. Pre-Introduction and Introduction
Prior to introduction, the goal of marketing strategy is to identify what kind of product a market demands, to then determine the diffusion rate of that product, and finally to make decisions as to pricing, promotion, and distribution of the product.
Marketing strategist have many tools available to
I. Overview
This paper sets out to explain how the concepts underlying marketing strategy, which is may be seen as applicable only to industries that provide tangible goods, such as iPads or pharmaceutical drugs, are nevertheless relevant to a service-based industry like investment banking. First, I will define marketing strategy and briefly describe its various elements. Next, I will define investment banking and give a brief description of the various services provided. Finally, I will explain how understanding marketing strategy provides additional rigor and insight to an investment banker’s decision making process.
II. Marketing Strategy Overview
Marketing strategy is a firm’s long-term strategy for establishing and maintaining a competitive advantage in the market. It involves decisions about what products to bring to market, how the product should be priced, how it should be distributed, and how it should be promoted – the “marketing mix”. Marketing strategy recognizes that decisions about the marketing mix are interrelated and that they must change over the lifetime of the product.
One fundamental concept to marketing strategy is the product life cycle (the “PLC”). This embodies the idea that a product’s sales volume will change over time and in a predictable pattern.
Every product will go through four stages: introduction, growth, maturation, and decline. The goal of marketing strategy is to anticipate each product’s life cycle and to modify the marketing mix in anticipation of the product’s progression through that cycle.
A. Stages of the Product Life Cycle
1. Pre-Introduction and Introduction
Prior to introduction, the goal of marketing strategy is to identify what kind of product a market demands, to then determine the diffusion rate of that product, and finally to make decisions as to pricing, promotion, and distribution of the product.
Marketing strategist have many tools available to