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Marketing Mastermind Magazine:
Advertisement Strategy of Banks: Need for Radical Change to Restore Customer Confidence
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The global meltdown has completely shaken the public confidence in the financial markets. This is the result of constant exploitation of gullible investors who were lured by exotic and unintelligible financial instruments with high ratings, secured in collusion with the rating agencies. Advertising too has played its vicious role as all efforts were made for the expected returns turning a blind eye to its latent risks.To restore confidence among investors in the financial markets, the advertisement strategy should be transparent, informative and simple in its communication.

 
 
 

The global financial crisis has exposed not only the universal gullibility of investors, rich and poor, educated and uneducated alike – but has also brought into sharp focus the poor supervision of both bank management and regulatory authorities, and the consequent laxity in the identification and control of wrongdoings. In fact the sudden affluence generated irrational exuberance among the noveau rich, a section created by the initial high returns from such investments. This also influenced the politicians into overlooking the risks and thus refraining from applying and/or creating stringent laws to restrain and punish those who deliberately confuse the public and lead them to believe the advertised benefits of the subprime products. Incidentally these products were offered by highly reputed investment banks and supported by globally renowned universal banks. Such overlooking by the state as well as regulating agencies led to such a crisis that the investment banks have now to be bailed out by doling out heavy amounts of tax payers' money from the exchequer. And still some of the high and mighty businesses like Lehman Brothers sunk and applied for liquidation.

 
 
 

Marketing Mastermind Magazine, Global Financial Crisis, Financial Markets, Advertisement Strategy, Subprime Products, Collateralized Debt Obligations, CDO, Credit Default Swaps, Bank Management, Emerging Markets, Risk Management, Sovereign Wealth Fund, Advertisement Campaigns.