Marketing of the securities market, Concept of marketing of...

5.7. Marketing of the securities market

5.7.1. The concept of securities market marketing

The securities market - is part of the financial market on which securities purchase and sale transactions are carried out.

Marketing of the securities market > commodity-differentiated target marketing, the subject of which are securities.

The object of marketing can be a product, service or idea. For any marketing object, the universal term product is used. As such, securities, services for their issuance and circulation, commodity-material components of the market, information and scientific and technical products can act on the securities market.

The purpose of securities market marketing is to determine ways to strengthen the position of its particular participant.

Marketing in the securities market includes demand analysis, sales forecast, research, advertising, information gathering, pricing, promotion of securities to the market and their implementation. Marketing ensures the normal functioning of the market, allows you to solve various tasks on it.

The task of marketing is to ensure the most complete and rapid transfer of savings into securities at a price that suits all participants in transactions with securities.

The main function is the identification of existing and potential demand among buyers of securities through a comprehensive study of the state of the market, its segments and prospects for development.

In Table. 5.3 the correlation of marketing functions and tasks of the securities market is considered.

Table 5.3. Value of marketing functions and tasks of the securities market

Market Challenges

Marketing functions

Determining, estimating the volume of needs

Market Analysis

Proposal Formation

Stock Market Planning

Price Determination

Pricing

Conclusion of transactions

Stock Management

Maintaining Demand

Promotion of securities on the market

Formation of market agents

Advertising

Stimulating the needs of potential investors

Formation of public opinion

Foreseeing the future state of supply and demand

Market Forecasting

The role of marketing in the market is to increase the competitiveness of a particular type of goods and services of certain issuers, improve the financial position of economic entities, ensure financial stability of the economy, achieve a balance of supply and demand, study the motivation of market participants, identify the most effective ways and channels for implementation. The role of marketing in the securities market is related to the optimization of stock transactions.

Securities Market Marketing System

There are two systems of marketing in the securities market: structural and methodological. The Structured System includes various types of marketing. The first kind is marketing focused on a specific security, an operation or a service, the so-called marketing of the issuer (since the issuer is primarily interested in promoting securities to the market). This type is characterized by increased attention to the drafting of the prospectus. Before a new issue of securities, it is necessary to conduct a comprehensive preliminary analysis of the market. Preparation for the issue of securities issue includes the following actions: thorough analysis of the industry in which the relevant company operates, studying the company's position in the industry, studying the company's financial statements.

The second type of marketing is customer-oriented (investor marketing), characterized by increased attention to investment expectations of potential buyers. It is necessary to know the amount of deferred demand, the profitability of investments in institutions of the banking system, the interest on deposits offered by various financial companies. The success of this species largely depends on the ownership of market information. There is also a mixed type - marketing, aimed simultaneously at the seller (issuer) and the buyer (investor). From a practical point of view, the third type is the most promising, since it simultaneously takes into account both the features of demand and the specifics of the offer, and therefore allows them to be balanced already at the stage of marketing research.

The methodological marketing system in the securities market is a set of individual methods and techniques of marketing, its logic, i.e. sequence of different stages.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)