Can I learn stock marketing

Share marketing

A low equity base and the dynamic development of the equity ratios have been a special challenge for a large number of German companies for some time. Nevertheless, in practice hardly any considerations have been given as to how the market resistance in the area of ​​fundraising by transferring the marketing idea to the finance and equity area can be overcome. The financial sector was viewed primarily to meet the imperative ancillary conditions of sufficient capital supply. The view that in the context of the procurement of funds, for example by issuing shares, a financial investment option is offered that can be designed according to the needs of the customer has long been neglected. It is only recently that public companies have recognized the need to address the bottlenecks in raising funds through stocks through appropriate marketing. This development is expressed e.g. B. in the increasing number of investor relations departments to maintain relationships with shareholders and in the growing number of company presentations for shareholders, securities analysts and financial journalists. Corresponding concepts of both finance and share marketing are currently only just beginning to be recognized. The concept of share marketing as a sub-area of ​​more comprehensive financial marketing is based on the basic idea of ​​contributing to the achievement of the overall goals of public companies through the systematic and integrated alignment of all stock market-oriented business activities to the current and future resistance on the stock markets. . Share marketing is not limited to the structuring of investor relations. While InvestorRelations i. e. S. is only understood as a capital provider-related part of public relations, which focuses on the design of the relationship between the company and a group of the public, share marketing aims to maintain relationships through the use of all stock market-oriented marketing instruments. In order to gain and expand trust and understanding among investors and the rest of the financial world in the long term, stock marketing management must deal with the targeted development of a stock market-oriented marketing concept. Based on an analysis of the environmental conditions, the goals of share marketing are to be defined. The approach to a long-term maximum share price should be mentioned as the general overall objective of share marketing. In particular, influencing the shareholder structure should contribute to this. This overall objective is the means for the realization of an optimal overall financing policy of the company, which guarantees a secure and more economical procurement of financial resources. Furthermore, instrumental goals can be derived from the overall goal. For example, the communication-political sub-goals of share marketing include increasing the level of awareness as well as gaining interest and confidence in the financial community. Based on the development of such a target system for share marketing, basic strategic decisions and market participant-related strategies are to be determined. In this context, it should be noted that the IPO phase is the beginning of share marketing. In this phase there is the greatest possible freedom of choice, both with regard to the strategic framework and with regard to the use of sales policy instruments. However, the chosen start-up strategies already determine all decisions made after the IPO in the life cycle of the public company. The central design area of ​​share marketing is the share-specific design of the marketing mix. When deriving the options for structuring the share, it should be noted that the share is understood as a membership in an AG, with which all rights and obligations from the acquisition of a share in the share capital are associated for the shareholder. Therefore, an essential part of the product policy is the definition of shareholder rights. After the listing on the stock exchange, it is important to maintain the secondary market as aggressively as possible. In this context, as a product policy measure, the public companies only have the full variation of the product properties shown due to the principle of equal treatment. In practice, the subsequent introduction of voting rights restrictions, the issue of bonus shares or share splits are of particular importance. Price policy decisions in the context of share marketing concern the determination of the issue price when the company goes public and the determination of subscription rights for subsequent capital increases. When deciding on the issue price, the underpricing strategy as a share-specific form of a penetration strategy dominates in practice. The aim is to support the establishment of an "emission standing" by granting a discount on the determined equilibrium course. As a result, too little “course imagination”, which z. T. leads to difficulties in subsequent placements, should be avoided. As part of the distribution policy, decisions about the sales channels (self-emission, third-party emission) have to be made. In the case of foreign missions, the selection of the consortium leader is very important. Furthermore, the allocation policy must be determined, whereby it must be ensured that a targeted allocation is made to the preferred shareholder groups. The starting points of product, price and distribution policy presented so far form the financial policy core of the use of instruments. For stock marketing to be successful, however, there is a need to carry out preparatory, accompanying and follow-up communication activities in the sense of cultivating relationships. Otherwise there is a risk that the measures taken may not have any or undesired effects due to an existing information deficit. The aim of the communication policy is to sell shares in the primary and secondary market and to persuade shareholders to hold the acquired shares for the long term in order to stabilize the price. The instruments used are impersonal communication, such as B. annual reporting through business reports and letters to shareholders, and personal communication, e. B. in the context of the general meeting available. The design of the financial communication is to be carried out in such a way that its content corresponds to the entire corporate communication. This is the only way to achieve a positive overall corporate image. In summary, it can be said that the individual instruments presented require particularly close coordination. This is the only way to ensure the overall objective of "long-term securing of the possibility of raising capital" and "achieving a long-term maximum share price". In this way, competitive advantages can ultimately be realized.