Skip to main content

Learn more about Pricing of banking services

banking services
Pricing of banking services
Pricing of banking services in the banking Marketing
Price is one of the most important factors affecting the client to take the decision to purchase the service and for the bank , the process of setting prices is one of the important elements in the marketing mix . Where the price is determined by the value of reciprocal service
   Factors affecting the pricing of banking services
Affected by decisions related to pricing of banking services a variety of factors , some of which are linked to the internal environment of the bank, while others are linked to the external environment has
1 - internal factors affecting pricing:
A range of factors associated with the marketing objectives of the Bank and the marketing strategy and the costs of banking products
A - marketing objectives
Any strategy for marketing of banking services must be formulated in the light of the study and understanding of the basic objectives of the above-mentioned bank and represented in the following :
- Survive - to maximize profits in the short term - to achieve strategic leadership
B - the Bank 's marketing strategy ( marketing mix elements )
The price is an important element of the marketing mix , but this has to be coordination between all the elements because the decisions regarding prices affect the decisions and activities relating to the Service
C - cost targets
Costs play a major role in laying the foundation upon which the Bank's management in determining the price of banking services and therefore represents an important dimension in the pricing strategy
Types of Banking & Stages of the development2 - external factors affecting the pricing:
And include a range of factors related to the prevailing conditions in the market. These factors are : -
A - the credit position of the client
B - the degree of risk in the market
C - the degree of risk in the market
D - elasticity of demand for banking services
v methods and procedures for the pricing of banking services
 Can distinguish between two main entrances to pricing , namely the entrance at cost - oriented and market entrance wave
First: Pricing entrance cost
This method is one of the most common ways in setting prices , especially in markets characterized by competition and that because characterized by its ease and simplicity in the application
In fact , we find that a lot of banks in the pricing procedures based on the entrance cost is determined according to the following equation : -
margin of profit+cost of banking service marketing administrative cost = Sale price
Total income
Profits
Costs and revenues
Loss
Sales volume
The amount of tie
Breakeven point
Fixed costs
College costs
Fixed costs
  It can reach a breakeven point by the following equations :
Sales volume
Total revenue
The sale price of the unit - variable cost per unit
The price at which achieves breakeven point =
Price that achieves profit margin =
There are many problems facing the pricing method according to the entrance of the cost , including: -
· That this portal is supposed to achieve a certain sales volume at a certain price
· The difficulty of pricing on the basis of total costs
· The difficulty of the recovery of fixed costs
Second: pricing according to the market entrance
According to this input costs are seen as a kind of restrictions on the minimum price that must be received by the bank in exchange for services provided by the bank . The following equation to the entrance of pricing based on market considerations .
The life cycle of banking service in the bank marketingDo you know What Banking ServicesService marketing strategies in the marketing environment for banks(administrative costs+production costs, marketing costs )-profit margin = Price
According to this entrance pricing is divided into two types:
1 - demand - based pricing
Pricing is based in light of this method on the level of demand for service is not based on the cost in terms of :
A - when demand is high on the service determines the price is high
B - when the demand for the service determines the low , low price
2 - on the basis of competitive pricing
When you bank pricing its services on the basis of competitors , which is imposed by competitors prices , this trend is called competition - based pricing
     Pricing strategies , new banking services and modify the current prices of services
First : the pricing strategies of new banking services
When you do a new banking service pricing , the Bank seeks to achieve three goals :
· Achieve acceptance of the new banking service
· The Bank maintain its market position in the face of competition
· Achieve profitability
There are three entrances to the pricing of new banking services , namely:
1 - scrape strategy market :
This strategy is based on the introduction of new banking service the highest price possible in order to maximize profits, this strategy is considered suitable for the pricing of new banking services for the following reasons :
· The size of the service sold less affected by the price at the present stage to the market
· High price strategy attract less sensitive categories of customers for prices
· Helps high price at the beginning to give the new service
· High pricing and a way to test the demand for service

The success of this strategy requires the possibility of dividing the market into segments based on income , and low sensitivity
2 - market penetration strategy ( to be able to market)
This strategy is based on the assumptions that the opposite to abrasion strategy , where the pricing of the new banking service at a low price as a means to co-opt the demand for this service
3 - psychological pricing strategy ( as perceived value )
This strategy is based in the pricing of banking services on the basis of any myself based on the perceived value of services and give it a more important cost component
Second: modify the current prices of services
The banks often do you make adjustments in the prices of services provided to the market, whether it is done at the initiative of the Bank's management in order to maximize profits, in order to attract the largest number of dealers with
There are a range of considerations or the fundamental aspects that must be taken into account in the Bank case daring to modify the prices of banking services offered in the market , can be summarized as follows:
    Determining the appropriate time to change the prices of services
      Identify a line banking services subject to the process of change
      The effect of changing some of the services on the sale of other services
The main reasons to change the prices of banking services due to two main factors
1 - respond to changes in the prices of competitors Services
2 - Responding to government legislation

Comments

Popular posts from this blog

A boy disturbs a girl at bus stop

A boy disturbs a girl at bus stop.. Girl: dont u have a mom-sister at home.? Boy: No. Girl: to ghar le chalna pagal. yahan time pass kyun kar raha hai.

Video demonstration of conflict forex

Video demonstration of conflict currencies in the forex market in a wrestler in the arena of competition between couples Video Video Video Youtube Download forex

New Year Facebook Status

On the New Year people try to forget their previous year mistakes and make their new resolutions. It’s celebrated all over the world. Every country celebrates New Year with different styles. People want to wish to others with beautiful words. They search different New Year statuses and New Year Facebook statuses. They also want to update New Year status on Facebook. Now New Year is coming and if you need New Year Facebook status then you can get here best collection. Wish You A…Great, Prosperous, Blissful, Healthy, Bright, Delightful, Mind Blowing, Energetic, Terrific & Extremely …happy,HAPPY NEW YEAR. The merry year is born Like the bright berry from the naked thorn. Happy new year!! ♪ღ♪*•.¸¸¸.•*¨(¯`’•.¸(♥)¸.• ’´¯)¨*•.¸¸¸.•*•♪ღ♪•**•. ░H░A░P░P░Y░░░N░E░W░░Y░E░A░ R░░2013░░ ♪ღ♪*•.¸¸¸.•*¨¨*•.¸¸¸.•*•♪ღ ♪¸.•*¨¨*•.¸¸¸.•*•♪ღ♪• It’s time to unfold new pages & start a new chapter in your life because it’s new year. New Happiness & abundance of new friends, God bles

Finest images and beautiful Nice SMS

Finest images and beautiful Nice SMS Here pictures of beautiful mobile messages

Photo apology of beautiful

Photo apology of beautiful Photo apology 2020 pictures of beautiful apology 2020 finest new images apology Sabaya adolescent girls, images apology 2021 pictures of beautiful apology 2020 finest new images apology

guarantee bank deposits

 guarantee bank deposits Bank deposits Bank deposits of particular importance in the field of banking activity that they feed the necessary funds to banks directly many of its rival commercial paper and interest loans and grants opening credits who is in need of individuals and projects - Definition of bank deposit Contract authorizes the bank ownership of deposited money and dispose of them according to than with its commitment cold like the depositor of the same type of currency upon request or at the agreed-term solutions, according to whether the deposit in a savings account or in the form of a fixed deposit " - Types of bank deposits That bank deposits are divided in terms of recovery to date and in demand deposits and deposits provided the previous notification and term deposits: 1 - Demand deposits: It is the most important bank deposits and where the applicant may request retrieved at any time, the Bank does not pay them interest or pay interest slim 2