Role of Marketing for the MFI
- Thursday, February 26, 2009, 8:32
- Marketing
- 2 comments
Bruce Meraviglia , Technology & Marketing Editor [ Microfinance Focus ]
For those who have been faithful readers of Microfinance Focus, you will recognize this as a new column. You may be wondering as to the title it bears, and rightly so. Marketing, in general, is not often associated with the MFI industry. Rarely have I come across anyone associated with an MFI who has spoken of their marketing department as being integral to the function of the MFI, or a key contributor to the strategy the MFI is following in reaching out to new or existing borrowers.
In the field of non-profit agencies in general, and MFI’s in particular, the marketing function, if it exists at all, is seen as a minor contributor to the overall function of the organization… little more, in many cases, than an internal public relations group which handles the issuance of press releases and responds to inquiries from publishing organizations wishing to mention the MFI in a news article, or, perhaps, to solicit coverage by a media organization.
This is in marked contrast to the central role of the marketing department in a for-profit company; a role that not only reflects the strategy of the company, but is also a key contributor to the development of that strategy. In a for-profit company, the image of the organization as it is presented to the marketplace it serves, as well as the branding of its products and services, is the primary role of the marketing department. Few companies would forego the establishment of a marketing function (regardless of its size) in order to increase the budget of another department.
While the marketing function within a for-profit company is usually smaller than the size of the operations, finance, sales, or human relations departments, its output is not a measure of the number of people assigned to it, but of its creativity and innovativeness. In a world where the number of available channels for reaching a desired group, be it potential customers, strategic partners, industry analysts, or investors, has been significantly increased with the availability of the Internet, the contributions of the marketing department have also become more complex in the search for the most effective message for each channel.
Over the coming months, we will explore together the role of the marketing function within the MFI community, issues related to branding versus the desired awareness the MFI would like to present, and often overlooked issues such as the classical role of a marketing department versus the more specialized role of a product marketing function. As we explore the role(s) and potential value of a marketing department with an MFI, we will also make use of the Internet to create an opportunity for discussion of the topics raised in each column. Each month, we will summarize the column presented in Microfinance Focus on the blog section of our website, and allow for responses from you, our readers.
As the Marketing Reflections columns unfold, we will be guided by three central questions: (1) Does an MFI benefit from a marketing department?; (2) What constitutes an effective marketing function with an MFI?; and, (3) What should be the focus of the marketing department within an MFI? I look forward to your comments about each column, and these three questions.
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Microfinance Focus has written 32 stories on this site.
2 Comments on “Role of Marketing for the MFI”
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Just would like to share some of our experience related to the role of marketing in MFIs operations in Cambodia.
Microfinance is one of banking system in Cambodia that currently grow very fast to provide financial services to the rural households who can not access to formal financial services such as commercial banks. At the time of the fast-growing sector, there are anyway high demands on financial services at the rural community. In this regard, many microfinance players emerged with strong competitive including interest rate declining, big promotion campaign and budget as well as branding image.
PRASAC is one of a microfinance institution that has a wide operational areas, office networks and staff as well as biggest loan outstanding as well. Furthermore, PRASAC with its strong desire penetrates to other new areas to deeply outreach the poor with its sustainable growth of the market penetration.
However, following the new market and competitive trends and the fast-growing microfinance sector in the country, in role as arketing we tries to improve out strategy year to year to raise the branding image of PRASAC MFI as well as products and services renovations through many activity plans carried out. At the same time, Marketing Department itself has been improved the structure through recruiting more new staff to support the activities responding to the market needs and the fast expanding of PRASAC MFI as well.
Furthermore, on behalf of a financial service provider, PRASAC has set its goal and responsibility to improve the living standard of the people through its financial services. In this regard, PRASAC tries to mitigate the negative impacts on its clients with more socially-invested projects. Concerning with this, Marketing Department plays a vital role to support and facilitate the projects step by step responding to a socially-responsible microfinance institution.
Hereunder are the following role and responsibilities of Marketing Department of PRASAC MFI: i.) Marketing research & marketing analysis, ii.)Competitive analysis, iii.) Customer behaviors analysis, iv.) Strategic planning and positioning, v.) Product analysis and product differentiation, vi.) Supporting and Facilitation social projects, vii.)Promotion & outreach communication, viii.) Marketing plan
Thanks,
SAY SONY
Marketing Manager
PRASAC Microfinance Institution
#25, St.294/57, Boeung Kengkang1
Chamkarmon, Phnom Penh, Cambodia
+855 (0) 12 456 078: H/P or
+855 (0) 16 456 078:
+855 (0) 23 220 102: Tel
+855 (0) 23 216 362: Fax
http://www.prasac.com.kh: website
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Vision: To improve the living standard of the rural people contributing to sustainable economic developments by being a financially viable microfinance institution.
Mission: To provide sustainable access to financial services for rural communities and micro-enterprises
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Concerning with this, Marketing Department plays a vital role to support and facilitate the projects step by step responding to a socially-responsible microfinance institution.
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