High owns the underlying assets (shares of stock,

 

High yield Exchange 
Traded Fund

Marketing and Communication
Strategies, CRM

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A summary of
new High Yield Exchange traded fund which will launch, steps taken in
marketing and communication and CRM to be followed.

 

 
 
 
 
 
 
Submitted to : Lina La
Rocca
 
Submitted By  :  Ripalben Patel
(c0687767)
                              Midhun
Rajagopalan (c0689499) 
                                      Alby Sebastian
(c0691883)
 

 
Submitted On  : January 12, 2018

 

 
 
 

 
 
 
                                           Table of Content
 

Content

Page number

Introduction

2

Marketing and Communication strategies

2

Product

2

Price

3

Place

3

Promotion

4

Physical Evidence

4

Brochure and Logo

4

People

5

Process

5

Customer Relationship Management

5

Tracking Customer Contacts

6

Staff Development

6

Customer Experience Strategy

6

References

7

 

Introduction

Exchange Traded Fund is a type of
investment fund traded on stock exchange. ETF tracks an index, a commodity,
bond or a basket of assets like an index fund. An ETF trades on a stock
exchange like the common stock, and it has higher liquidity and lower fees than a mutual fund. This makes them an
attractive alternative for individual investors.

An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, gold bars, foreign
currency, etc.) and divides ownership of those assets into shares. The actual
investment vehicle structure (such as a corporation or investment trust) can be
varied by country, and within a country there can be multiple structures that
co-exist. Shareholders do not have any direct claim to the underlying
investments in the fund; rather they indirectly own all these assets.

S&P 500 Index also known as the Spider
(SPDR) is one of the widely known ETFs and it trades under the ticker SPY.  Sector ETFs exist that track individual
industries such as oil companies (OIH), energy companies (XLE),
financial companies (XLF), REITs (IYR),
the biotech sector (BBH), and so on.

Commodity
ETFs exist to track commodity prices including crude oil (USO), gold (GLD),
silver (SLV),
and natural gas (UNG)
among others. ETFs that track foreign stock market indices exist for most
developed and many emerging markets, as well as other ETFs which track currency
movements worldwide.

 

 Exchange traded funds have its origin in the
year 1990 and it has been available to investors for over 25 years. It all
began with TIPS, the first ETF that was created and traded on the
Toronto Stock Exchange in April 1990. It also predicted that by February 2018
ETF AUM will reach 135 billion.

 

 

Marketing and Communication strategies        

As we are introducing our new High Yielding Exchange
Traded Funds, we would like to introduce a marketing mix which enables the
proper marketing and communication our new product to new prospective customers
as well as our existing ones.

 

Product:

Our product  is
new High yield Exchange Traded Fund, which enables the investors to invest in a
investable fund which is more secure and more liquid than regular mutual fund.
We introduce our new product with a primary objective of providing higher
income to our investors and also provide capital appreciation as secondary objective.

Key facts are as
follows:

Fund Symbol:                          FTEV 

Fund Launch Date:                 January
25, 2018

Primary Listing:                      TSX

Yield:                                      4.42%

Net asset of
shares:                  $25 million

The main
attraction of our product is that, it have low MER and there is no front end
and back end charges.

 

Price

In
order to attract more and more investors, we have kept our MER as lowest as
possible, with no front or back end charges. The price strategy we put for our
product is MARKET PENETRATION PRICE STRATEGY, we believe that with this
strategy we are able to attract new investors or even first time investor by
retaining our existing customers.

As
our product is providing high returns along with capital appreciation, we are
expecting with minimal fees more and more investor shows willingness to buy
into our stocks and with a success of our product in the market we can slowly
increase the MER also make our High yield ETF for front and back end charges
later.

 

Place

Channel through with our product will be
distributed are:

1.      The
Independent broker-Dealer channel – Independent
broker-dealer firms may be of any size, but most are small (fewer than
1,000 advisors), and advisors are affiliated independent contractors rather
than direct employees. Many ETF strategist firms have focused their
distribution efforts primarily on the independent broker-dealer channel.

                                            

2.    
The Registered Investment
Advisor Channel – RIA are one of the fastest-growing retail channels
within asset management. Fueling that growth is the number of wire house
advisors who are now striking out on their own, a development that presents a
special opportunity for ETF strategists. RIAs are also viewed as being on
the cutting edge of investment management and willing to take a chance on new
products. These advisors have tended to been more open to ETF strategists,
in large part because many strategist firms originated from the RIA
channel.

 

3.    
The Regional Broker (Dealer
Channel) – Regional broker-dealers are firms with a
strong concentration of offices in one region of the nation; financial
advisors are tied employees of the firm. Randy Bullard, senior managing
director at Cantor Fitzgerald’s ETF solution group, notes that the channel
has strong proprietary platforms supportive of ETF strategist distribution, and
some regional broker-dealers have created dedicated programs for strategists.

 

4.      The
Wire-house Channel – The wire-house channel is comprised of
large, full-service broker-dealer firms, with national distribution, investment
banking, and brokerage. Wire- houses offer a high concentration of assets per
client relationship.

 

Promotion:

For
the promotion of our product, we would like to use the PUSH STRATEGY. As we are
going to introduce special an incentive schemes for our on role employees for
achieving the target over their regular incentives and commission. Also to the
channels of our distribution a special commission bonus on achieving targeted
units.

We
believe that with push strategy, we can motivate our channels to sell more of
our product and thereby achieve the targeted unit within the time limit.

 

Physical
Evidence:

As
physical evidence to our product we have deigned a brochure and Logo:

 

 

 

 

 

 

 

 

 

People

This
investment fund will be handled by the professional managers and there details
are as follows:

      
William Housey, CFA; Senior Vice President

      
Scott D. Fries, CFA; Senior Vice President

      
Orlando Purpura, CFA, CMT; Senior Vice President

 

Process:

  

 

Customer
Relationship Management Technique 

Tracking Customer Contacts

An important aspect of CRM
is tracking and logging all contacts with customers and prospective customers.
The nature and outcome of all contacts should be monitored to identify areas of
potential conflict before they arise, and to understand which contact
experiences customers are happy with and which ones may need adjustment.
Follow-up calls to customers after any support or service interaction must be
sensitively managed, as it is possible to annoy customers by initiating too
much customer communication.

Staff Development

Staff need to be aware at
all times of the prevailing business culture regarding customer relationships.
A key area to look at is the development of communication skills. This is
particularly important in businesses employing technical support staff. It is
important that technical staff, who have one-to-one contact with customers at
times when customers are experiencing problems, understand the importance of
maintaining a positive, personal approach in all dealings with customers.
Understanding how to resolve the technical issues that the customer may be
experiencing is important, but supplying the customer with a positive
experience may be the difference in retaining the customer and the customer
looking elsewhere in the future. All staff who comes into contact with
customers or their representatives should receive ongoing training in the
development of interpersonal skills. Be sure to let all staff know that every
contact with a customer or potential customer is a possible sales contact.

Customer Experience Strategy

Defining
a customer experience strategy involves identifying the level of service the
company expects to provide to its customers. For example, a customer experience
strategy might include the goal that there must be a response to all customer
complaints within a certain time, if the complaint could not be resolved with
the initial contact. Another might be to ensure that customers deal with one
particular person in the resolution of all issues, or the processing of sales
and delivery of goods and services. Staff should be made aware that the defined
customer services policy is important to the business, and not an optional set
of guidelines. The customer policy must be effectively communicated to all
staff at all times, and staff should be encouraged to participate in the
development of customer experience strategies, bringing the results of their
experience to the process.

 

References:

(bizfluent, 2018)

(Black rock, 2017)

(Investopedia)

(State Street Global Advisor,
2017)