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The major issues in, and influences on, the determination of marketing strategy across the personal financial services sector are examined. Recent changes in the competitive environment emphasise the need to see banks in the context of the sector as a whole. New survey evidence is discussed which relates to the nature of marketing research, advertising strategy, distribution strategy and the use of information technology.

Some evidence on the use made by UK insurance companies of various forms of information technology (IT) in their sales and marketing activities is presented. Some views on the trends in this developing use of IT in the next two years are presented – a period when the full implications of the Financial Services Act will be seen. The results of recent research are analysed and some conclusions are drawn.

The growth in usage of marketing information systems (MIS) within insurance companies is examined. It is based on a series of in‐depth personal interviews with marketing executives and data processing specialists in a selection of UK, US and Canadian life insurance companies.

The development of marketing, both in theory and practice can now be seen in a number of educational developments. The article reviews the introduction of a marketing syllabus and the launch of the Chartered Institute of Marketing′s Marketing Financial Services syllabus within the Diploma examinations of the CIM.

Increasing deregulation in personal financial services in the UK raises important issues about the future of banks. This survey attempts to quantify the major trends in the personal financial services market, particularly from a bank perspective. A postal survey by the Nottingham Institute for Financial Studies of major financial institutions was earned out in early 1985. A response rate of 43.5 per cent was achieved from an initial mailing of 487 questionnaires. The results show a major diversification into banking and increased competition for the banks from current non‐banking institutions (mainly building societies). Strong moves into stockbroking and estate agency activities are expected, as is diversification by banks into closely related areas. Those banks which will be affected by internal growth and direct marketing will diversify activities. Diversification by building societies is perceived as the major source of increased competition in the personal financial services sector, and further entry by US banks is expected.

The current state of the financial services industry worldwide and recent literature on the subject are reviewed. Four major trends are identified and discussed: (1) the trend towards financial conglomeration; (2) globalisation; (3) information technology in bank marketing; and (4) new approaches to financial services marketing. These trends will affect the marketing of banks and other financial services in the 1990s. Areas for further research are also highlighted.

The marketing strategy of banks requires much thought and careful planning so as to address the constituent segments of the market. In particular, the issue of increasing customer sophistication versus demands for convenience needs to be approached, and this does not appear to be a clear‐cut issue; highly sophisticated customers may also demand convenience, while others do not fit into this category, and customers across age, sex and social class groups have different needs in these respects.

A particular aspect of bank marketing is considered — that of service provision for customers. It is postulated that an investigation of ways of minimising the total cost of provision, including the cost of lost customers, can be made using computer‐based simulation techniques. An example of such a model is given for a specified, typical problem of service provision in a bank.

The role of product development within personal financial service organisations is focused on, with particular emphasis on the part played by market research within the process. A major aim is to identify the importance of marketing and market research within respondents′ companies, in terms of the organisation of these functions. The results of a questionnaire sent to organisations providing personal financial services to the consumer are drawn on – new product development within individual companies is investigated, the progression of new products from conception to launch traced, the role of market research within the process identified and the organisation of the marketing function examined.

When small manufacturing businesses are formed, they are often based on a particular skill of the founder. This is often craft based. The need for a wide range of business skills is usually essential to the success of the small business. This article quantifies the types of marketing skills which are available in small businesses in the electrical engineering industry in Dorset. These marketing skills are then used as independent variables in an attempt to discriminate between successful and unsuccessful firms measured in a variety of ways. This is an attempt to measure the importance of marketing skills to small businesses.