Direct Transfer Of Money And Securities Finance Essay

Direct Transfer Of Money And Securities Finance Essay Financial market is mechanism that allows people transfer of capital between savers and those who need capital takes place. It also is a place where allows people to buy and sell financial such as stocks and bonds. In addition to supporting previously issued financial assets in exchange for loans and financial markets through the promotion of financial assets from the sale of newly issued loans. Examples of financial markets including the New York Stock Exchange (resale of previously issued shares), the U.S. government bond market (resale of previously issued bonds), the U.S. Treasury Auctions (sales of new issues of Treasury bills). Financial institution is an institution, its main source of profit through the trading of financial assets. Examples of these financial institutions, including discount brokers (such as Charles Schwab and associates), banks, insurance companies, as well as more complex functions, such as Merrill Lynchs financial institutions. Moreover , financial market can be found in almost every country in the world. There are some very small, only a small number of participants, while others such as the New York Stock Exchange (NYSE) and the foreign exchange market -,trillion dollars in daily trading. Therefore , there are three ways available transfer of capital in the financial market thats direct transfer of money and securities , investment banking house , and financial intermediaries. DIRECT TRANSFER OF MONEY AND SECURITIES This types of transfer of capital occur when a business sells its stock or bond directly to savers without going through any type of financial institution. From a tax-deferred retirement plan or account type of asset to another. Direct transfer is not considered distribution, so there is no income or subject to any penalty tax in advance the layout. This transfer type is usually no electronic checks are cut from one custodian to another. The business delivers its securities to savers , who in turn give the firm the money it needs. INVESTMENT BANKING HOUSE An investment bank not same with the commercial bank or retail banks, investment bank does not take deposit. This is an organization that underwrites and distributes new investment securities and help businesses obtain financing. An investment bank is one type of financial institution that assists individuals, governments and corporation in raising capital by underwriting and or acting as the clients agent in the issuance of securities. Investment banks also help companies mergers and acquisitions, and provide services such as market making, derivatives, fixed income instruments, foreign exchange, commodities, and asset securitization support services. Other than that , the company can sells its stocks or bonds to the investment bank , which in turn sells these same securities to savers. FINANCIAL INTERMEDIARIES Financial intermediaries are specialized financial firms that facilitate the transfer of funds from savers to demander of capital. Some of the financial intermediaries are bank such as commercials banks , insurance companies , investment companies. Financial intermediaries are simply transfer money and securities between and saver . They literally create new financial products. The function of financial intermediaries includes reduce the transaction cost. For the liquidity services , it can saving deposits . financial intermediaries also provide online banking to pay the bills. Besides of that , the intermediary obtains funds from savers in exchange for its own securities. The intermediary then uses this money to purchase and then hold businesses securities. The existence of intermediaries greatly increases the efficiency of money and capital markets. Moreover . there have a few of categories of financial intermediaries. The categories of financial intermediaries are depository institutions, contractual savings institutions and investment companies. The depository institution has been divided into depository institution and non-depository institution. Deposit-taking institution in the United States financial institutions such as savings banks, commercial banks, savings and loan associations, or credit unions, in the law to allow the currency to accept deposits from consumers. Federal depository institution is subject to the Federal Deposit Insurance Corporation (FDIC). COMMERCIAL BANKS Commercial bank or business banks are financial institutions and intermediaries type. This is a bank to provide transactions, savings and money market accounts and time deposits accepted. Commercial bank also is the traditional department stores of finance serve a wide variety of savers and borrowers. Its also expanding the services provided by the range, including food and beverage services and insurance stocks. These commercial banks are institution that run to make a profit and owned by a group of individuals. Actually, commercial banks have some different from investment banks. This is because commercial banks offer loans, while investment banks help companies raise funds from other parties. SAVINGS AND LOAN ASSOCIATIONS(SLs) A savings and loan association thats association that similar to bank is a financial institution which specializes in accepting savings deposits and making mortgage loans. They served personal savings and the supply of residential and commercial mortgage borrowers, they also take the fund from many small savers and lend this money to home buyer and also other type of borrowers. In addition, savings and loan association have more expertise in analyzing credit, setting up loans, and making collections than individual savers, so they reduce the costs and increase the availability of real estate loans. Listen Read phonetically CREDIT UNIONS Credit union is a cooperative financial institutions owned and controlled by its members, to promote conservation, provide credit at reasonable prices, and provide other financial services to its member. their member savings are loaned only to other member , generally for auto purchases , home improvement loans , and home mortgages. Credit unions are often the cheapest source of funds available to individual borrowers. Next, contractual savings institutions included life insurance companies and pension funds. Life insurance companies provides insurance for you and your familys in order to create peace of mind. Life insurance is a policy that people buy from a life insurance company, it can be a basis of protection and financial stability after ones death. Its function is to help beneficiaries financially after the owner of the policy dies. They taking saving in the form of annual premiums, invest these funds in stocks , bonds , real estate, and mortgages and finally make payments to the beneficiaries of the insured parties. Other than that , pension fund is a scheme, fund or plan to provide retirement income. This kind of fund is established by employers and organizations to their worker and administered primarily by the trust departments of commercial banks or by life insurance companies. There is two kind of for pension funds, thats defined benefit plans and defined contribution plans. For defined benefit plans , the employer specifies or guarantees the level of benefits the employee will receive when they retires. For defined contribution plans , the employer make specified or defined the payments into plans. When the employee retires , they are determined by the amount of asset in the plan. The third kind of financial intermediaries is investment companies. There have 2 kinds of investment companies that are financial companies and mutual funds. Financial companies is an organization that provides loans for both businesses and consumers. Finance companies also purchase unpaid customer accounts at a discount from merchants and collect the payments due from customers. They also grant small loans directly to their consumers at a relatively high rate of interest. However , there is some differences between financial companies and bank. they unlike with a bank, finance company do not accept deposits from the public. But , finance company may draw funding from banks and various other money market resources. For mutual funds, mutual funds is an open-ended fund operated by a corporations that accept money from savers and then use these funds to buy stocks , long -term bonds, or short -term debt instruments issued by businesses or government units. Different funds are designed t o meet the objectives of different type of savers. For most mutual funds, shareholders are free to sell their shares at any time, although the mutual fund share prices fluctuate daily, after the securities held by the fund depend on the performance Listen Read phonetically Dictionary View detailed dictionary CONCLUSION In short , we know clearly about the financial market information. Financial market is mechanism that allows people transfer of capital between savers and those who need capital takes place.Inside the market we know what are they doing and contribute to our. Other of that , I also can know the function of financial intermediaries and also have what categories inside the financial intermediaries. There are many types in financial intermediaries, I get to know each of them clearly and also a few ways of transfer the funds and after this we know which type of investment are most suitable and better of us.

Sickle Cell Anaemia :: Free Essays

Sickle Cell Anaemia The disorder affects the red blood cells, which contain a special protein called haemoglobin . The function of haemoglobin is to carry oxygen from the lungs to all parts of the body. People with Sickle Cell Anaemia have Sickle haemoglobin which is different from the normal haemoglobin. When sickle haemoglobin gives up its oxygen to the tissues, it sticks together to form long rods inside the red blood cells making these cells rigid and sickle-shaped. Normal red blood cells can bend and flex easily.Blocked blood vessels Because of their shape, sickled red blood cells can't squeeze through small blood vessels as easily as the almost donut-shaped normal cells. This can lead to these small blood vessels getting blocked that then stops the oxygen from getting through to where it is needed. This in turn can lead to severe pain and damage to organs. Everyone has two copies of the gene for haemoglobin; one from their mother and one from their father. If one of these genes carries the instructions to make sickle haemoglobin (HbS) and the other carries the instructions to make normal haemoglobin (HbA) then the person has Sickle Cell Trait and is a carrier of the sickle haemoglobin gene. This means that this person has enough normal haemoglobin in their red blood cells to keep the cells flexible and they don't have the symptoms of the sickle cell disorders. They do however have to be careful when doing things where there is less oxygen than normal such as scuba diving, activities at high altitude and under general anaesthetics. If both copies of the haemoglobin gene carry instructions to make sickle haemoglobin then this will be the only type of haemoglobin they can make and sickled cells can occur. These people have Sickle Cell Anaemia and can suffer from anaemia and severe pain. These severe attacks are known as Crises. Over time Sickle Cell sufferers can experience damage to organs such as liver, kidney, lungs, heart and spleen. Death can be a result.

An Analysis of HBOs Sex and the City :: Exploratory Essays Research Papers

HBO's Sex and the City has become a cultural icon in its 6 seasons of running. Based on Candace Bushnell's racy book Sex and the City, the show exhibits an unprecedented example of the sexual prowess of women over the age of 35. The result is an immense viewing audience and an evolving view on the "old maid" stigma that a woman's chances of finding love are significantly reduced after thirty-five. In this paper, we will closely analyze the characters and themes of Sex and the City to explain the significance of what the show represents in American culture. Sex and the City is a show centered around four beautiful, successful women in their mid-to-late thirties. Although the show focuses on the "love lives" of the four women, the title has been dubbed "Sex and the City," and not "Love and the City." The question is, why? Well, it could be simply that sex does sell. Perhaps Candace Bushnell christened her book Sex and the City because it would attract more readers. However, while this may be a small, superficial factor in the reasoning behind the title, the content of the show suggests a deeper purpose behind the focus on sex. For the most part, the relationship between love and sex is dichotomized throughout the show. Although the characters end up married or in a monogamous relationship at the end of the series, the majority of the show is concentrated on the women's brief sexual encounters and the glorification of their trysts. Only once in awhile do the topics of love and sex come up simultaneously in the characters' post-sex brunch conversations. The show presents beautiful, successful women having sex and talking about sex like men. Meaning, their promiscuity is excused and their sexual vulgarity is quite often the comic relief in the show. This deflates somewhat the double standard that men can sleep around, but if women do, they are "dirty." Although each character has a different view on sex, they all share the mindset that casual sex is acceptable. The show never breaches this mindset, creating a world where promiscuity and sexually aggressive women are common, and sexy. Samantha Jones, played by Kim Cattrall, is a sexually dominant character who is afraid of commitment. The episode entitled "The Good Fight" ("The Good Fight" 1) features Samantha explaining to her friends that her current lover is just a "sex thing" and that her emotions are intact.

The Destructive Power of Pain Essay -- Expository Essays

The Destructive Power of Pain There are two types of pain that we all experience, physical and emotional (or mental). Physical pain is a signal of the nerves; therefore it is something that is tangible, something that we can prove is there and something that we can feel. Emotional pain is hurt on the inside of one's soul. It cannot be expressed; it is only a feeling in the soul. According to the Christian view, pain makes someone a better person. However, some people disagree with this because they believe that pain destroys a human being's self-worth. Physical pain is a signal given by nerves that an organism is in a potentially hurtful environment. This is the type of pain that hospital in-patients experience, and it often incites a negative reaction when it is in an extreme form. Constant pain can distort the patient's view of the world and surroundings and can make him/her self-absorbed with alleviating the pain. To others, the patient may appear selfish, impatient, quarrelsome, and greedy, but his actions are merely a result of the pain that they are suffering. Jim Jones, a hard working construction worker, was severely injured one day when a sheet of metal fell on him and severed his leg. While in the hospital, he became withdrawn and very short -tempered with the nurses, and he was angry if he was not cared for immediately. He was in so much pain that he lived from one dose of morphine to the next and if the nurses were even one minute late he became impatient. It was as if he thought that there were no more patients in the hospital besides him. When his family came for daily visits he became very quarrelsome and didn't want to accept any help from them, because he felt that he was useless and could no longer contri... ...ng, such as pain. An example of this is to try and describe the color blue to somebody. One can say it is like the color of the sky, or the ocean, but he can't really say what it is. If he could, he could describe blue to a blind person. Even though we don't know how to talk about pain, we can treat it. Medicine is able to stop the nerves from sending a message to the brain. Psychiatrists are able to find the root of a problem and alleviate it. There are some who would say that God is the only one able to take away pain (both physical and emotional). However, others would say that pain can never truly be taken away, just subsided. And still others say that pain really isn't a thing, it is an illusion that can be overcome. Anybody who has hit their thumb with a hammer would swear that this isn't true. If one were to ask them why, they would say "because it hurts."

Adrift In A Moral Sea: Should We Help The Needy?

In his article, Hardin presents a compelling argument why we should not help the needy: we cannot afford it. And by all means, I agree with Mr. Hardin. The bottom line is it is not in our interests to help the needy. It may be that sympathetic people’s hearts are bleeding with the fact that 790 million of the world’s population is chronically undernourished and starving when all over the world it is standard procedure for stores to routinely dispose food that they were not able to sell for the day. We see them in pictures or news clips: the poor in Africa burning under the sun, the hungry children in Asia going through the piles of garbage looking for food. We feel sorry for them, but we are happy we are not them, that by some contingent force we ended up being born in a wealthy country. We may want to send them food and clothing and other parcels with wishes of peace and love, but if we really want to help them, then I think we should give them what they really need. Most of the â€Å"needy† come from developing and in-transition countries, whose histories are characterized by civil wars, revolutions and struggles for freedom from colonizers, then struggles for freedom from tyrants; and whose financial records show glaring foreign debt. The World Bank recorded that for every dollar that the developing world receives in grants, it pays $13 for debt servicing. In the Jubilee Year of 2000, Pope John Paul II called for the cancellation of all foreign debts so that the poorer nations can focus on rebuilding and strengthening their economies and governments and providing services to their people rather than being harassed to pay their foreign debt that they acquired because of the colonization trend (and almost all developed countries had colonies), and of the two World Wars which they were mere casualties of. It seems to me then that if we really are serious about helping the poor, then we should not be giving them food or grants – we should be repaying them for ravaging their natural resources and enslaving their ancestors, for subjecting their nations to the highest form of discrimination and robbing them of their rights, and for destroying their lands and lives with our selfish wars. And the payments should be adjusted as per inflation and with interest. Of course, no one will agree to that. If we did not let the Jubilee Year weaken our resolve, why now? If we cannot even admit our mistake at Vietnam and apologize, why should we humble ourselves before the poor of the world, even if they are the majority? Let us think of the food program and the foreign assistance to other nations as our way of making it up to them. That is the best that we can do, since handing over our wealth is out of the question. The thing is, even with the food program, there is hardly any improvement in the hunger problem, and even with the grants the poverty levels and the population issues remain. In The State of Food Insecurity in the World, it is acknowledged that there have been significant improvement in agriculture technology and by all means, there is more food than ten years ago. But the problem of hunger persists because there are adequate infrastructures and mechanisms – roads, shipping systems – to deliver the food to people. There is a vicious cycle of hunger, poverty and overpopulation, but do we solve their problem? According to the Population Reference Bureau, the less developed world has on average a population growth rate of 1.5 compared to the .1 of the more developed world. Apparently, high mortality rates, the lack of food and adequate resources are not stopping them from producing offspring. In Darwin’s survival of the fittest, they seem to be doing just fine. I may be accused of being simplistic in my argument, but the needy have governments, and more than that, they have their own minds. They should know by now that there is not enough food where they are, there are very few opportunities, and so if they wanted to help themselves maybe they should focus more on looking for food and work than having babies. If their governments cannot take care of them, should ours do? Presently, we are facing our own social security issues; why would we want to trouble our government with providing for other people when there is an impending danger that we might not be having enough for the future? And why even dwell on the hunger in Africa when in our country there are hungry, homeless people? As Hardin pointed out, there is not enough space in the lifeboat. Either they make their own lifeboat, or they learn to swim to an island, what is important is that they should do something rather than just accept their fate of drowning just because the metaphor says so. It is a battle of survival, of preserving interests. If helping the needy will not cost anything and even placate our moral sensitivities, then we will help them. But as it turns out, we cannot afford to feed the millions of hungry people. Everything that we give them we take from our future stock, from that which we hope to give to ourselves in our old age, to our children and to our grandchildren. And when faced with giving to strangers or looking after our own families, nobody is the Good Samaritan. WORKS CITED: 2005 Human Development Report, United Nations Development Programme Global Development Finance, World Bank, 1999 The State of Food Insecurity in the World. Italy: Food and Agriculture Organization of the United Nations, 2006.

Regionalism in the World of Alistair McLeod Essay

Imagery is used fairly often in the eastern coast of Canada may have an unforgiving and rather harsh streak, but many Canadians choose to raise their families and practice their craft there. In both short stories by Alistair McLeod; The Lost Salt Gift of Blood and The Boat, the setting of the Canadian east coast is used to develop both the plot and the character. Along with the narration of the physical setting there is also the intricate dialogue spoken by the various characters. In combination, the various customs and traditions presented by the author through language and setting expand our ability to understand the plot. Without McLeod’s regionalistic writing form, the reader’s ability to firmly define the setting and characters would hinder them from his multilayered stories. Imagery is used fairly often in The Boat with the intention of not only giving the reader a sense of space and time but also an insight to the character. The father is displeased with his lack of education and current lifestyle along the coast, â€Å"the sea was behind him and its immense blue flatness stretched out to touch the arching blueness of the sky. It seemed very far away from him or else†¦he seemed too big for it. † (263) The author in this scenario implies the essence of the problem in the story; the narrator’s father is never unified with the sea he labors in, never achieves the connectedness that goes with working so closely with nature. As well, due to his higher aspirations, the father is too inquisitive and thirsty for knowledge to remain in such a simple place. In The Lost Salt Gift of Blood, imagery is used to relay the underlying story and theme to the reader. Fog is the best form of imagery used because of its close relation to the actions and their meanings beneath the surface of the story. The entire story seems rather foggy as it contains dialogue and reflection that occurs in the present rather than the narrator looking back and analyzing the meaning of events. Therefore, it is left to the reader to piece together the story, at times difficult when the story seems incomplete. For example, the fog plays a vital role in the story surrounding the mother’s death, â€Å"It be foggy all the day and everyone be thinken the plane won’t come or be able to land. And I says, small to myself, now here in the fog be the bad luck and the death but then there the plane be, almost like a ghost ship comen out the fog with all its lights shinen. I think maybe he won’t be on it but soon he comen through the fog. † (307-308) As the grandfather relays the story, he abruptly stops, yet never commences with further elaboration. His story hangs in the air like fog; inescapable, shrouding and unable to clearly define. The dialogue in The Boat has an educated style yet is brief and to the point. Each time McLeod allows a character to speak, only the most vital words needed are spoken. Though this story includes description from an analytical point of view, most of it remains with the reader piecing it together. It is during solemn moments that word are exchanged â€Å"you have given added years to his life. † (267) There are also no descriptions of raucous banter among the siblings. This is surprising as noise and arguments are inevitable to most large households. With the knowledge that the mother runs her household with precision, the lack of confrontational dialogue may be due to the tiring lifestyle. The father’s reaction is an example of this after the mother accuses him that it will be his fault if their daughters come home impregnated, â€Å"†¦reflecting the exhaustion of a man of sixty-five who had been working for eleven hours on an August day†¦he turned and went into his room. † This dialogue enhances the estrangement of the east coast; little is wasted, be it energy or words. The contrast in dialogue in The Lost Salt Gift of Blood is very insightful when comes to defining characters. The father is well educated and from Toronto. He met his son’s mother while researching for his university paper. On the other hand, it is revealed in the end that John’s grandmother and grandfather can neither read nor write. Just as John is the only connection the grandparents have to his father, the only halfway point between their linguistic capabilities and his father’s is John. More interestingly is the transformation of language and what it can tell us. In the beginning of the story the reader sees John’s grandfather speaking politely but simply to the father â€Å"well, it is a nice evening tonight†. As the night wears on a mixture of alcohol, fatigue and raw emotions alter his language to that of a rougher coastal slang â€Å"and the dog runned around like he was crazy, moanen and cryen worse than the swiles does out on the ice, and throwen hisself against the walls and jumpen on the table. † (307) The gradual change in language is a minor one, yet it conveys a multitude of distinguishing features. Such features lay ground to a better understanding of the region. Within both short stories, McLeod paints an even broader sense of the eastern Canadian coast using the domestic principles held there to describe the region. The homestead of John and his grandparents is one where things are not wasted, â€Å"cast-off tires also whitewashed and serving as flower beds†¦ originally broken†¦ [the grandfather] helped him fix them, nailing on new lathes and knitting new headings. † (295-296) Anything broken is repaired, redeemed or put to another use. The family is clearly linked with this way of living and deeply belongs in this place. The practice is also an important one considering the grandfather is teaching and including John in the processes. As well, the household in The Boat did not waste things, â€Å"a shelf which contained matches, tobacco, pencils, odd fish-hooks, bits of twine†¦Ã¢â‚¬  (258) Items in this family had a place and a purpose. Even small items like twine are collected for a further use later. Along with the hard work in the sea and simple lifestyle, the narrator’s mother kept the house tidy; â€Å"everything was clean and spotless and in order. In the case of the traditional coastal living, the hard-netted earnings from the ocean do not allow for frivolity, waste or an abundance of parlour toys. As Alistair McLeod infuses regionalism to define the setting, an image of the lifestyle as well as the culture of the characters is revealed. The eastern coast of Canada may have a harsh climate and difficult way of life, but through the language used by the McLeod and his portrayal of setting, we are encouraged to understand this lifestyle and those who embrace it. In both short stories The Lost Salt Gift of Blood and The Boat, the plot and the characters are defined as individuals in their culture as well as participants of a larger practice. Along with the narration of the physical setting, an understanding of customs is elaborated through detailed descriptions. With this particular style of regionalism, McLeod left the reader to elaborate on characters and settings he defined, the culture however, remained true to the eastern coast of Canada. McLeod’s regionalism permits the reader to firmly define the setting and characters then allows them to explore the artfully crafted plots.

Tesco Bank Marketing

The research draws attention to the fact that the current product life cycle of Tesco Bank is in the Maturity stage. And now Tesco Bank is a question mark according to Boston’s Matrix. The target market of Tesco Bank includes Tesco Clubcard holders, families with children, pet and car. By Geographic segmentation, Brislington in the North East, Coventry in the Midlands and Blackpool in the North West are its target market. By Demographic segmentation, the age should be targeted from 18 to 50 and over 50s. By Behavioural segmentation, its loyal customers are targeted.Further investigations reveal that the Tesco Clubcard Credit Card’s position in the market is not enough good and the repositioning makes this product become more competitive in the market. The main price strategy is competition-based pricing. A new Good-value pricing strategy is made for the repositioning product. Moreover, an A3 size poster for Tesco Clubcard Credit Card is designed for advertisement. It is recommended: ? The future market strategy of Tesco Bank should focus on strengthening its customer base and service improvement. Innovation of products is important. * Tesco supermarkets are good platforms for Tesco Bank to advertise itself. TASK 1 AREA OF STUDY Tesco Bank is a subsidiary company of Tesco (the UK’s largest supermarket) in the UK. This bank was ever named Tesco Personal Finance. Initially, Tesco Personal Finance (TPF) was a joint venture business between Tesco and the Royal Bank of Scotland (RBS) (Datamonitor, 2011). Then, Tesco took full control of Tesco Personal Finance, by an agreement with RBS to buy its 50% shareholding in TPF in 2008 (Sky News, 2008).TPF was renamed Tesco Bank in 2009 and it was a signal that Tesco would like to join into the high street banking sector (The Telegraph, 2009). Tesco Bank has continuously made good progress in 2011. For example, savings, the number of credit cards and insurance sales have strongly increased (Tesco plc webs ite, 2012). As a new entrant with great brand awareness that was untainted by the banking crisis, Tesco Bank has great potential to boost sales in the UK because the current customer dissatisfaction with banks is serious in the UK (MarketWatch, 2009).However, it is necessary to focus on this area for improvement because the infrastructure of Tesco bank is not enough and it should have a better market strategy to attract more customers as a new entrant. TASK 2 PLC STAGE Kotler and Armstrong (2012) define product life cycle (PLC) as a development trajectory of a product based on its sales and profits over its lifetime. The five distinct stages (product development stage, introduction stage, growth stage, maturity stage and decline stage) of PLC describe how products and markets work.The Figure 2 shows the sales and profits of Tesco Bank from 2002 to 2010 (See Appendix 1). It is hard to analyze the trend of sales from 2009 to 2011. The sales fluctuated during this period. The profit in creased rapidly from 2002 to 2005, then declined gradually due to the possible reasons of the bad global economy situation and the financial crisis. After Tesco Bank was entirely owned by Tesco, the profit boosted remarkably again such as the growth rate was 65. 625% in 2009 and the average growth rate of profit from 2008 to 2011 was 29. 72%. However, the growth rate declined year by year.Based on the evidence above, it can be inferred that Tesco Bank is now at the maturity stage. According to the trend of profit, the product achieved acceptance by customers for a period of time, then the big change in 2008 led to rejuvenation of its business. At the same time, the sales growth was slowdown but it seems to increase in the future. These points match to the characteristics of maturity stage (Kotler and Armstrong, 2012). Boston’s Matrix is a chart to evaluate a company’s market strategy and situation according to its relative market share and market growth rate (Kotler an d Armstrong, 2012).It can be described as Figure 3. The market growth rate of Tesco Bank was high in recent years but the relative market share is still low based on the data above. Pettinger (2011) states that Tesco Bank is a smaller bank in the UK which ranks 10th of 10 Largest UK Retail Banks. Question marks means a company has relative low market share and high market growth rate (Kotler and Armstrong, 2012). Thus, now Tesco Bank should be a question mark. It is time to think about the future direction of Tesco Bank.Datamonitor (2010) reveals that the current consumer dissatisfaction with banks is a good chance for Tesco Bank to gain market share by the similar way Tesco is successful in the grocery sector. Tesco Bank announced it has targeted to win 10% market share of the UK’s financial services market in the future (Halime, 2010). It seems that Tesco Bank is expected to be a star in future years. TASK 3 TARGET MARKET Target market is defined as a set of customers who h ave common needs or characteristics that companies would like to give service to (Kotler and Armstrong, 2012).Now All Tesco Bank’ products have a common characteristic that every product purchased can get points and discount with a Tesco Clubcard. This is not only a fantastic way to attract customers, but also all Tesco customers who have a Clubcard have been targeted. Tesco states that the most loyal shoppers (15 million Tesco Club card holders) are initially targeted by Tesco Bank (Aldrick, 2009). Credit cards and loans are only available to UK residents and over 18s. All Tesco Bank’s products such as home insurance, pet insurance, travel money and credit card are relative to the needs of families and daily life. Geographic segmentationThis segmentation divides market into several geographical areas. Tesco planned to open Tesco Bank branches in 30 of its stores in the UK in 2009 and branches would open in Brislington in the North East, Coventry in the Midlands and Bl ackpool in the North West (Clews, 2009) Demographic segmentation This segmentation divides market into segments such as age, family, income, occupation, religion and nationality. According to bank’s insurance classification (car, home, pet, travel, life, over 50s, health, dental, breakdown), credit cards and loans condition, the age should be targeted from 18 to 50 and over 50s.Tesco Bank also has child trust fund, Tesco Baby & Toddler club and Tesco Child Health Plan, so the target of family life cycle should be families with children, pets and cars. Behavioural segmentation This segmentation divides market into segments such as knowledge, attitudes, uses, or responses. As Tesco Bank’s products can all be linked to its Tesco Clubcard, loyalty status should be strong in this case. Consumers are loyal to Tesco brand for its great brand awareness. On the other hand, the Clubcard enhances the loyalty of consumers with its benefits. TASK 4 PRODUCT REPOSITIONINGProduct positioning means products are considered by consumers when purchase, consumers will identify the products compared with competing products (Kotler and Armstrong, 2012). This assignment will choose Tesco Bank’s Clubcard credit card as main product compare with its competitors by perceptual map, then reposition this credit card to a more competitive position. The Figure 4 shows a positioning map for four types of credit cards from Tesco Bank, Sainsbury’s Bank, Halifax and HSBC on two dimensions: months of balance transfers for 0% and months of purchase for 0% (See Appendix 2) (Tescocompare, 2012).Thus, customers’ view of Tesco Clubcard Credit Card is very different from others. Its 15 months of purchase for 0% is significantly more than others, but the months of balance transfers are the least of all cards. The main advantage of Tesco Clubcard Credit Card is that customers have a very long length of time for 0% interest rate credit so that the fewer months of bal ance transfers for 0% is acceptable. By contrast, the credit cards of Sainsbury’s, Halifax and HSBC focus on the months of balance transfers for 0%, but there is a transaction fee when customers transfer the debts.However, Tesco Clubcard Credit Card has the lowest fee (2. 9% fee) compared with others (Sainsbury’s 3% fee, Halifax 3% fee, and HSBC 3. 3% fee) (See Appendix 2). In order to reposition Tesco Clubcard Credit Card to a more competitive position, it is better to extend the months of balance transfers for 0% as the figure 5 shows. Now Tesco Clubcard Credit Card is more attractive to customers. Beside its advantage of purchase, its balance transfers aspect is no longer weak compared with others. Tesco Bank may generate fewer profits from this product due to its long period of time for zero interest rate and less transaction fee.However, this change will attract more customers to enhance its customer base in the short-term. The strong customer base will increase t otal consumption and is good for entire business performance in the long-term. TASK 5 PRICING STRATEGIES Pricing strategy is that a company sets a right price strategy in order to generate profits and be successful in the market. The main pricing strategies are customer value-based pricing, cost-based pricing and competition-based pricing (Kotler and Armstrong, 2012).Competition-based pricing means the price is set based on competitors’ pricing strategies, cost, and marketing offering (Kotler and Armstrong, 2012). The main pricing strategy of Tesco Bank is competition-based pricing. Because most of the retail banks offer the similar products such as loans, credit cards, savings and insurance, Tesco Bank set a more competitive price to attract customers according to its Tescocompare. com system (a system compare Tesco Bank’s products with other banks’ products). For example, the interest rate of loans and credit cards is second lowest of all the similar products (See Appendix 2 and 3).The reason may be that Tesco Bank is a new entrant and faces numerous experienced competitors setting slightly high prices relative to the value they deliver, charging a relative low price would be better for Tesco Bank to attract customers and gain more market share. In addition, Tesco Bank also uses discount pricing and promotional pricing. For example, new customers could save up to 20% with a Clubcard when they buy car insurance online. New customers with a Clubcard who quote and buy a Tesco Bank Pet Insurance policy directly from Tesco Bank between 12 April and 22 May 2012 can get a free ? 0 Tesco Gift Card (Tesco Bank website, 2012). New pricing strategies for repositioned product As the Tesco Clubcard Credit Card has repositioned, it has more competitive advantages. Then this assignment will develop a good-value pricing strategy for Tesco Clubcard Credit Card. Good-value pricing strategy means a company provides a combo of good quality and service at a reasonable price (Kotler and Armstrong, 2012). Cooperation with other retailers or restaurants in the UK to offer some benefits is a good idea to use this strategy.For example, Tesco Bank can cooperate with Zara that every purchase in Zara by only using Tesco Clubcard Credit Card can get 5% discount. Thus, more people would like to use this credit card so that it would strengthen Tesco Bank’s customer base. On the other hand, Zara’s sales might increase because of the discount. In addition, customers get benefits. TASK 6 POSTER DESIGN FOR ADVERTISING CAMPAIGN It is a poster for advertising Tesco Clubcard Credit Card of Tesco Bank (See the A3 poster). In the white area, the credit card image and a red circle with words are striking.Customers can know what the product is at the first sight. â€Å"1 card, 3 great benefits† tell customers this credit card is outstanding because this card has 3 great benefit for customers if they use this card. These show the main pa rt of poster that creates a general impression to customers and attracts them. The first three lines of words in the blue area are the details of the three great benefits. â€Å"0% on all purchases for 15 months† and â€Å"0% on balance transfers for 15 months† reflect its competition-based pricing strategy because this set of interest has an advantage compared with other products when customers make a decision. Balance transfers for 15 months† shows the repositioning feature discussed above. It makes this card be more attractive to customers. â€Å"Every little helps† is the slogan of Tesco enhancing the Tesco Brand. â€Å"Over 18s, UK residents† shows the segments which this product is available for, reflecting its target market as well. The collecting points also reflect the Tesco Clubcard customers are included in its target segment. â€Å"Ask at the customer service desk for more details† is guidance for further steps if customers want t o know more. CONCLUSION AND RECOMMENDATION Tesco Bank has already done well as a new entrant into bank industry.However, it still has some space for improvement according to the analysis above. It has the potential to boost sales in the future due to its particular advantages such as little influence by financial crisis and strong brand awareness. The low price advantage is also easy for Tesco Bank to attract customers. If Tesco Bank continues to adjust its market strategy in the future, it could reach the top of UK banks. The future market strategy of Tesco Bank should focus on strengthening its customer base and service improvement. Service quality is an important factor to determine customer satisfaction (Maddern, H et al, 2007).Innovation of products is important. If the product has an available special characteristic, bank would have more power to generate profits and set slight high price. Tesco supermarkets are good platforms for Tesco Bank to advertise itself, and take full advantage of them. Appendix Appendix 1: Source: Tesco Annual Report from 2002 to 2011 Appendix 2: Source: http://tesco. lovemoney. com/creditcards Appendix 3: Source: http://www. tescocompare. com/loans. shtml Bibliography Aldrick, P (2009). Tesco moves closer to full banking. The Telegraph. 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