Through market research and analysis it has been found out that there are several economic choices that every firm must face. This is in line with the core objective of the firm which basically entails producing standardized product to meet the customers demand and making profits for the firm.
Research from surveys and focus groups have indicated that our investment bank needs to develop a product which best suits the clients establishing good consumer behaviour and meeting the impacts of government policies.
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No longer are banks interested in their own interest of making profits but what is of fundamental concern is whether the customer is satisfied. Our investment bank is not an exceptional one. We need to address the issues of developing a product that will make the bank outstand despite its rivals in the market. Development of product Economic choices imply that the forces of demand and supply need to be put into consideration when choosing a particular product for the firm.
The central question therefore that I considered in developing this product was the ease at which the customers will learn on the use and the reliability of the product when it’s introduced into the market. As an investment bank, a structured deposit is one of the products which is fundamental in the bank. This is because they allow customers to attain higher yields and also be able to take market risks upto a certain degree will be set by the bank.
The bank through this product will be able to meet the needs and expectations of the consumers and the management team of the bank too. The product is introduced into the market just like any other products which have been introduced before. The customer is taken into an orientation so that he gets to learn that this product involves saving just like any other saving accounts. They will be informed that this service provides more services beyond the traditional savings such as mutual funds.
Reasons for choosing this product One of the reasons why a structured deposit would be important in our investment bank is that it provides cash to the customer ant time he needs it. The customer does not need to wait upto a certain maturity date or pay a penalty for withdrawal of the money in his account. Another important issue which is fundamental is that through this product the bank can get more profits by soliciting so much money at a specific time so that it can invest at a go and get maximum returns.
The customer will also benefit in that incase he requires some loan, then he will be granted since the pool from the other investors in this type of fund will have contributed. Another major reason that is important is that a structured deposit is a very good method of investment of ones money. An individual who has an account with a structured fund will find it easier in the future to get his money in a lumpsum amount. This therefore is a good investment solution to an individual. Conclusion
For our bank to achieve the demands of the product there is need for awareness to be created to customers so that they can be in apposition to get the products and benefit from it. Reference: California Institute of Technology (2008, February 16). Insights on Economic Choices and challenges facing banks, an article pp. 35-56. Products of investment banks Retrieved on 8th April 2009 from http://www. citibank. ro/romania/corporate. Sample memo for business executives retrieved on 8th April 2009 from http//www. purdue. edu/owl/resource
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