Strategic Marketing for MicroFinance Institutions

In the context of increased competition between MFIs, this paper argues that MFIs need to develop a more market-oriented approach that goes beyond just developing client-focused products. It argues that a more strategic marketing approach, which in addition to developing more client-focused products, also looks at corporate branding and identity, and product delivery system and customer service strategies will benefit both MFIs and their clients.

The article presents a Strategic Marketing Framework, developed by TMS Financial and MicroSave-Africa, in order to assist MFIs thinking about strategic marketing and how it relates to their core business of providing financial services to poor people. The marketing strategy comprises three strategies:

• Corporate brand strategy (development of brand attributes and positioning statement; branding communication plan; corporate identity; corporate communications and public relations);
• Product strategy (development and differentiation; brands, taglines, ultimate selling proposition and benefit statements; pricing strategy; sales strategy and product management);
• Product delivery and customer service strategy (personnel training and development strategy; delivery process development; technology strategy; infrastructure development strategy).

The paper argues that the three core strategies above should be based on careful research and analysis. It recommends that the process of gathering information to underpin these strategies can be relatively easily generated from four standard information packages:

• Market analysis, which profiles and understands the MFI's target/potential market;
• Competitor analysis, which profiles and understands the MFI's competitors;
• Customer analysis, which tracks the MFI's performance through customer research;
• and political, economic, social and technological (PEST) environment analysis.