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    9 1-Bank Marketing

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    Tayanjana Madinga
    The document discusses the marketing strategy of a bank. It begins with the mission and objectives of bank marketing which includes increasing customer base, income growth, new customer acquisition, and improving customer satisfaction. It then describes the development of a bank marketing plan, including analyzing the macro and micro environment. It discusses various frameworks for environmental analysis and the bank's internal analysis covering employees, finances, systems, and customers. Finally, it proposes strategies including Ansoff's matrix, a SWOT analysis, marketing mix, performance metrics like the balanced scorecard, and using a value chain model. The overall purpose is to define a strategic marketing plan to help the bank achieve its financial and customer-centric objectives.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    9 1-Bank Marketing

    Uploaded by

    Tayanjana Madinga
    168 views24 pages
    The document discusses the marketing strategy of a bank. It begins with the mission and objectives of bank marketing which includes increasing customer base, income growth, new customer acquisition, and improving customer satisfaction. It then describes the development of a bank marketing plan, including analyzing the macro and micro environment. It discusses various frameworks for environmental analysis and the bank's internal analysis covering employees, finances, systems, and customers. Finally, it proposes strategies including Ansoff's matrix, a SWOT analysis, marketing mix, performance metrics like the balanced scorecard, and using a value chain model. The overall purpose is to define a strategic marketing plan to help the bank achieve its financial and customer-centric objectives.

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    Bank marketing

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    The document discusses the marketing strategy of a bank. It begins with the mission and objectives of bank marketing which includes increasing customer base, income growth, new customer acquisition, and improving customer satisfaction. It then describes the development of a bank marketing plan, including analyzing the macro and micro environment. It discusses various frameworks for environmental analysis and the bank's internal analysis covering employees, finances, systems, and customers. Finally, it proposes strategies including Ansoff's matrix, a SWOT analysis, marketing mix, performance metrics like the balanced scorecard, and using a value chain model. The overall purpose is to define a strategic marketing plan to help the bank achieve its financial and customer-centric objectives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    168 views24 pages

    9 1-Bank Marketing

    Uploaded by

    Tayanjana Madinga
    The document discusses the marketing strategy of a bank. It begins with the mission and objectives of bank marketing which includes increasing customer base, income growth, new customer acquisition, and improving customer satisfaction. It then describes the development of a bank marketing plan, including analyzing the macro and micro environment. It discusses various frameworks for environmental analysis and the bank's internal analysis covering employees, finances, systems, and customers. Finally, it proposes strategies including Ansoff's matrix, a SWOT analysis, marketing mix, performance metrics like the balanced scorecard, and using a value chain model. The overall purpose is to define a strategic marketing plan to help the bank achieve its financial and customer-centric objectives.

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    Bank Marketing

    Mission and Objectives of Bank Marketing


    Mission Statement

    Financial service Market penetration Customer base

    Illustrative Marketing Objectives Income growth: 8% Target new customer increase: 5% Increase product and service sale of existing customers: 3% Increase return on investment:10% Reduce bank cost: 3% Increase customer satisfaction: 2%

    Bank Marketing Plan

    Written document that summarizes the observation of a market behaviour. Defines marketing strategy. Identifies market place. Suggests strategy of the bank to reach its marketing

    objectives.

    Development of Marketing Plan

    Understanding of the environment in which the bank is functioning. Identify variables that will influence the bank functions. Analyzis of environment - Micro - Macro - Internal

    Macro-Environment

    PESTEL frame work to analyze macro-environment Political factors Change in government, political stability Economic factors Changes in interest and exchange rates, inflation rates,
    public spending, economic growth rate

    Socio-cultural factors Change in preferences such as life style, attitude, buying


    habit and demographic

    Macro-Environment

    Technological factors

    New products and services, new approaches to research and development activities

    Legal factors

    New legislations imposed on the bank, regulatory requirements, standards reporting requirements, banking

    Ecological factors

    Disposal of electronic equipments

    Micro Environment : Porters Five Forces of Competition

    Porters Competitive Strategy

    Internal Analysis of Banks


    Employees :

    Number of employees in various levels

    Measurement of employee performance


    Management of employee relations

    Money :

    Income

    Profit before tax


    Capital Deposits

    Internal Analysis of Banks


    Systems : Branches Call centres ATMs access Business units: retail banking, insurance, investment units Computing systems Information Dissemination : Personal customers Software Information support services

    Internal Analysis of Banks Customers: Focus on deposit accounts Focus on personal loans Focus on corporate loans Focus on investment Focus on banking services

    SWOT Analysis
    Strength:

    Market leadership Bank size Brand name Customer royalty Stronger technical solutions High net worth customer Reliable supplier Trained employees Value creation on customers Financial support systems Established distribution network Strong IT capability Internet banking

    Weakness:

    Limited market Small international presence Strong competitors Weak employee performance
    culture

    Long structure

    Low focus on timely service


    Lack of innovative products

    SWOT Analysis
    Opportunity: Threat:

    Significant growth potential New technology Infrastructure to develop new


    products and services

    Large customer base Young personnel

    Economical changes Stagnant consumer spending Low confidence level in the economy Stagnant savings High levels of indebtedness of customers Repayment difficulties Poor money laundering scrutiny Financial and non-financial loss in the
    banking system

    Increased competition from cross-selling


    by banks

    New technology increasing substitute


    product enter into market

    Marketing Strategies Ansoffs Product/Market Matrix

    Marketing Strategy

    Focus on Market Penetration Focus on Product Development

    Justification For Selected Strategies Suitability

    Acceptability
    Feasibility

    Suitability

    Environment

    : Potential growth : Development of technology

    Capability

    Expectation

    : Brand image

    : Customer satisfaction : Better return

    Acceptability and Feasibility

    Return Stakeholders reactions Risk Fund, manpower and competence

    : High return : Positive : Low risk : Availability

    Marketing Mix for Banks

    Product / Service:

    Credit card account Fund transfer process Guarantee of services Corporate risk management services

    Price / Cost: Preferential interest rates Competitive deposit rate

    Marketing Mix for Banks

    Promotion:

    Above the line and below the line techniques



    Travel magazines Travel agents websites Popular TV channels

    Place:

    Wider coverage of branches Rural bank office branches ATM machines Internet banking

    Marketing Mix for Banks

    People: Skilled staff of the bank Training programmes Process: Accounts can be opened through all the banking channels Social responsible on the credit limit Visibility: Visibility of the branches and the bank logo Team of professional staff members

    Balanced Scorecard Method


    Financial Perspective - Measurements based on one of three stages Early Stage (High Growth) Income Growth Positive Earnings Deposit Growth Rate ____________________ ___ ____________________ ___ Sustainable Stage (Modest Growth) Operating Income Return on Capital Net Interest Margins ____________________ ___ ____________________ ___ Mature Stage (Slow Growth) Cash Flows Economic Value Addition Cash Value Addition ______________________ _ ______________________ _

    Customer Perspective - Objectives based on values provided to customers < - - - - - - - Value Attributes - - - - - - - > Image Quality Interest Rate Time Function Relationships

    Balanced Scorecard Method


    Internal Processes Perspective - Objectives from three categories Innovation Process Operating Process Sustainable Process New products and services Efficient service Customer relationship New features for existing products Timely service Resolve problems first time Unique solutions Quality service Proactive & timely follow up Knowledgeable employees Cost management Flexibility / personal touch
    _________________________ ___________________ _________________________

    Learning & Growth Perspective - Objectives from three categories Employee Competencies Skills & Technology Bank Culture Employee satisfaction Leverage technologies Empower the workforce Retain key personnel Implement best practices Set accountability standards High employee productivity Protect critical assets Team employees to objectives Continuous training Access to information High morale & motivation Leverage core competencies ____________________ Cross functional teams
    _________________________ _________________________ _________________________

    Value Chain Model

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