Briefing Note 87 - Product Features of Individual Lending - Part 2

This Briefing Note discusses the 7 of the 8Ps of Marketing - Price, Positioning, Process, Promotion, People, Place and Physical evidence.

The Note describes that the total cost of Individual Lending (IL) product not only includes interest and fees paid by the client but also a host of other costs such as foregone wages, travel costs and time amongst others. Therefore the MFIs must strive to keep the indirect cost to minimum through efficient processes. The Note discusses the importance of MFIs positioning in the market and suggests that the MFIs should put best effort to occupy a distinct competitive position in the customer's mind. The Note suggests that the MFIs should prepare a comprehensive procedure manuals detailing the "who, what, when, where, why and how" of all processes with adequate internal control provisions to mitigate risks. Further, these manuals should be regularly updated and readily available for staff's use. The Note comments on the requirement of staff incentive schemes to mitigate the fraud risk.

The Note further explains in detail the importance of properly managed/maintained branches, clear and concise communication and 100% door step service through detailed sections on three other important Ps of marketing which are Physical evidence, Promotion and Place.

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