7 P’s of Marketing in Fund Houses

7 p’s of marketing in Fund houses:

1. Product: Here the investment product is Mutual funds, which is held by the investors. The steps, which involve the formulation of the schemes and product design, are concepts, draft, test marketing, approval of the scheme. As mutual fund is a service, it has very elementary physicality. Mutual fund managers want to deliver good quality at a reasonable cost, but the managers cannot make any promises about the future performance of the investment since a mutual fund is not a consumer product with consistency of performance. There is a lot of mutual fund offer’s that are present in the market. Single fund house deals in numerous schemes. Usually product line of mutual fund houses ranges from 30 to 300 schemes in India as market segmentation is done to cater to all the specific investment demands of the customers.

2. Place: Place or the promoting channel describes the teams of people and firms, that area unit concerned in channelizing the flow and sale of product and services from the supplier to the ultimate client. In investment companies additionally there area unit channels generally outlined as ‘direct’ or ‘indirect’. Direct channels involve the movement and sale of merchandise directly between the supplier and also the client as within the ancient branch network, whereas within the case of indirect channels product flows via intermediaries and middlemen. Historically investment company has been via the branch network, however currently completely different approaches area unit adopted.

3. Promotion: With globalization the entry of international firms propelled attributable to that the market became a buyers’ market and attributable to the sharp competition growth, the domestic investment company business was jolted. Promotional efforts ought to be stimulating and motivating enough to get interest in and promote a positive angle towards a investment company house so they're going to be thought of favorably as compared with the competitors. As there area unit such a lot of players within the investment company business, to decide on one investment company over the opposite becomes terribly troublesome for the investors. This has semiconductor diode the investment company to follow aggressive promotional techniques. Besides leading National Dailies, funds often advertise in business newspapers and magazines.