Updating Marketing Concepts in the Financial Services Industry (Part 2)

Abstract:     
Financial planners must ask themselves whether their business depends on a continuing relationship with a client or on the sale of the hot stock of the day.' If the development and continued existence of market relationships seems more important than the emphasis on exchange, the concept of exchange must be replaced by the knowledge of how market relationships are formed and sustained over time.

The hot stock of the day mentality emphasizes a sales transaction as the most important outcome in a market relationship. In contrast, the emphasis on a continuing relationship depends on the principles of trust, mutual commitment, and a concern with improved outcomes for both participants over a long period of time.

This article assumes that a continuing relationship is important to financial planners/investment advisors and outlines how this concept of marketing is applied in the author's practice as an investment advisor in North Carolina.

Number of Pages in PDF File: 8

Keywords: investment advice, marketing theory

JEL Classification: G20

working papers series