The paper "Financing Your Small Business" Is a perfect example of a Business Case Study. Within every sector of the business, competition is becoming very stiff which to some extent makes it difficult for small and medium enterprises to cope. To expand the operations and meet all the marketing needs, the SMEs need to tap financial resources, which often exist in two dimensions: equity and debt. As an upcoming program, the business has no shares or interests to sell in a bid to raise funds; therefore, it has to focus on the debt, which involves bowing the money to be repaid after a given duration (Bankrate, 2014).
At such point, the major questions that arise are whether to borrow from the traditional and big banks or focus on the small banks operating within the highly competitive financial environment. While looking for a financial partner, it is important to note what one is looking for: concern of having extensive access to the account at all times or the experience with the bank. Naturally, there are several clear-cut differences between larger financial institutions with various branches across the state and small banks, which could have only one location within the country (Feldman, 2013, 107).
While making the comparison on whether to borrow from the big fish or small fish, it is important to consider different factors, as none of them is more important than the services sought by the potential customers. One of the best ways of illuminating the differences makes a comparison of their pros and cons to enable the potential customer to make a decision that is more comfortable. Nature of the UK Banks Banks within the United Kingdom offer different products and services to the people.
The 3Ps that form the marketing mix within the financial sector include products, prices, and places, which the borrower needs to consider while seeking a financial partner (Nemethy, 2011, 117). Some of the products offered are deposits, advances, and loans, consultancy, investments, international banking services, various types of cards including credit cards, ATM cards, and travelers’ cards. The banks also offer DEMAT services, online money transfers, mobile money, internet banking, and micro-credits, which are important products for the upcoming business entities.
The price involves interest rates, consultation fees, and commission (Chen, 2005, 55). Within the UK financial market, the major parameters defining the prices of the products and services offered include the bank product group price specification, business partner price agreement, bank product price specification, and business partner price specification. The place also determines the accessibility of the financial facility and other customer care services which the potential needs to consider while determining financial partners. In such regards, it is significant to consider the branch, ATM, and office location. Service processes are complex in nature and time-consuming; therefore, they need thorough analysis while choosing financial partner considering the diversity and ever-changing needs of the potential customers.
Within in service marketing, five central factors influence the marketing strategy. These factors include intangibility, inseparability, and right of ownership, variability, and perishability (Hackett, 2012). As an upcoming business, it is critical to consider a financial partner that values its customers: new and old, repeatedly serve them, increase the concept of loyalty between the bank and the business, and advocate for business success.
Based on such an argument, the financial partner needs to meet the 3P’ s including the people, physical evidence, and process (Ma & Song, 2008, 144). There are various human actors playing a significant role in the delivery of services, thus influencing the perception of the people including the bank personnel and the customer within the service department. In regards to physical evidence, the customer needs to consider the environment from which the services offered are assembled and tangible commodities facilitating performance and communication of the service (Kiisel, 2013, 108).
Besides, the physical evidence includes various tangible representations of the services including brochures, business cards, physical facilities, and report formats. Different banks also have different processes in place for the acquisition of financial assistance. The process includes actual procedures, mechanisms, and flow of the activities through which the services are delivered.
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