Date post: | 22-Dec-2015 |
Category: |
Documents |
Upload: | eileen-todd |
View: | 213 times |
Download: | 0 times |
SECTION 1: MARKETING AND PROMOTIONS Objectives:
Explain how customer needs and wants are used to identify a target market.
Describe the components of a marketing strategy and how it is developed.
MEETING CUSTOMER NEEDS All consumers have needs and wants
Need – something a person must have to survive Such as food, clothing, and shelter
Want – something a person would like to have but does not need to survive Such as cell phones, jewelry, and brand new car
By identifying their target market banks can give their customers what they need
MEETING CUSTOMER NEEDS: IDENTIFYING A TARGET MARKET Banks like other businesses…
Set up in locations where they can get customers
Design products and services to help those in the community in which they serve
No matter the product, not everyone will want to buy it
To reach the right consumers, banks must first identify them
MEETING CUSTOMER NEEDS: IDENTIFYING A TARGET MARKET Some questions to consider…
What characteristics do these consumers haved in common?
Are they saving money to buy a house?Did they recently buy a car?
Knowing the characteristics that potential customers have in common help identify a market segment…a group of consumers that share common wants and needs
MEETING CUSTOMER NEEDS: IDENTIFYING A TARGET MARKET Four types of market segmentation
Demographic – age, occupation, gender, family size, income, education, and ethnicity
Geographic – region, country, state, block, neighborhood, city
Behavioralistic – benefits sought, usage rate, brand loyalty, purchase frequency
Psychographic – habits, interest, opinions, hobbies, activities, lifestyle
MEETING CUSTOMER NEEDS: IDENTIFYING A TARGET MARKET By breaking consumers into segments,
banks can focus their marketing efforts on those who are most likely to become customers…this group is called the target marketThe market segment that will be the focus
of the marketing strategy
MEETING CUSTOMER NEEDS: MATCHING BANK PRODUCTS & SERVICES TO NEEDS & WANTS
Once the target market is identified, the bank can match the needs and wants of these consumers to its products and services
Products and services are designed or modified by analyzing the needs and wants of a certain market segmentExample on next slide….
MEETING CUSTOMER NEEDS: MATCHING BANK PRODUCTS & SERVICES TO NEEDS & WANTS
Characteristics of mortgage loans (the product)
Needs and wants of first-time home buyers (the target market)
Small down payment Small amount of money saved for down payment
Competitive interest rate Low mortgage payments
Few closing fees Low closing costs
Roll closing costs into the mortgage loan
Low closing costs
Flexible credit requirement Approval with short credit history
No penalty for prepayment Increased income over time
DEVELOPING A MARKET STRATEGY Advertising – calling attention to a
product or service, commonly through the use of paid announcements
Marketing – the process of introducing a product or service to the consumers who can purchase it
DEVELOPING A MARKET STRATEGY: ASPECTS OF MARKETING
Marketing
Advertising
Market Research
Pricing
Sales Strategy
Customer Support
Distribution
Media Planning
Public Relations
DEVELOPING A MARKET STRATEGY Plan is developed around the four P’s of
marketing Product – What products or services meet the needs of
consumers in the target segment? (examples: certificate of deposit, savings account, mortgage, or mobile banking app)
Place – How will the product be available to customers? (examples: online, at a bank branch, ATM, Smartphone; regionally, nationally, or internationally)
Price – How much will the product cost the consumer? (examples: fees and interest rates are paid as well as charged)
Promotion – How much will the product be announced? (examples: TV ads, billboards, Internet, social media, or a combo)
DEVELOPING A MARKET STRATEGY: CREATING PROMOTIONS Promotion – an activity that increases
consumer awareness of a product In the past – heavily relied on advertising
which included TV and radio or in newspapers and magazines
Today – promotion is more dynamic Distributing pens with the bank’s logo Sponsoring a city-wide event, a concert Creating a web site Sending email or social media updates to customers Distributing calendars or some other daily-use
product Holding seminars to help customers that are
considering financial milestones
DEVELOPING A MARKET STRATEGY: MAKING A SALE
Some sort of contact is needed to make a saleSelling occurs in many ways but for banks
personal selling is the most common…each time a bank employee comes in contact with a customer or potential customer
Cross selling – personal selling strategy that encourages existing customers to buy new products based on their previous purchases, sometimes called relationship-based selling Result of existing relationship Requires interaction between bank employees
DEVELOPING A MARKET STRATEGY: MAKING A SALE Event based selling – personal selling
strategy in which a bank employee contacts a customer because of event that has recently happened with the customer Example: when a customer visits a web site and
requests information about home mortgages which may trigger a personal email from the loan officer inquiring if any additional information is needed by the customer
SECTION 2: BUILDING RELATIONSHIPS Objectives:
Describe the elements that create a positive image for a bank.
Explain the importance of customer service in keeping customers.
THE BANK’S IMAGE What qualities would you want a
stranger to have when you consider giving him or her your life savings to hold for you?
Wouldn’t you require the same qualities from your bank?
THE BANK’S IMAGE Public image – made up of the ideas and
opinions that people have about the business It’s easier to hire and retain employees, acquire
new customers, and keep current customers with a positive public image
A bank must be seen as honest, stable, and an important part of the community
Even though all banks seem to be honest and stable, they also need to appear unique in some way Maybe emphasize their customer service or
community involvement
THE BANK’S IMAGE Economic strength of a community often
depends on its ability to get creditBanks can contribute to the local economy
by making loans to individuals and businesses These loans help create jobs and bring revenue
to its citizens
THE BANK’S IMAGE Banks also engage in the communities
that they serveSponsor community events…marathonsFinancial education to consumersExecutives serve on civic boards and local
chamber of commerceCustomer service
THE BANK’S IMAGE If the bank’s reputation is damaged they
may need to repair itReplace some of the managersChange how they qualified potential
borrowers Institute other policy changes
WHAT IS CUSTOMER SERVICE? Customer Service – all interactions
between a customer and the bank Customer – an individual, organization,
or business that purchases a product or service
WHAT IS CUSTOMER SERVICE? Starts with the first interaction between
the customer and bankClick on a web siteComment overheard about the bank while
at workUse of an ATM at the mall
The difference between poor customer service and great customer service is the difference between losing and keeping a customer
WHAT IS CUSTOMER SERVICE? Every bank employee is a customer
service representative…each must avoid unethical and inappropriate behavior
To provide positive customer service, employees should:Address the customer by nameKnow the products and services offered by
the bankApply their expertise to the customers’ needs
to find the right product that is right for him or her
Exceed in the customer’s expectation for service
WHAT IS CUSTOMER SERVICE? Building rapport with a customer will
increase his or her satisfaction with the bankRapport – a bond of mutual trust
Having good rapport is central to a successful and ongoing business relationship
Customers expect good service and if it’s exceptionally good or poor chances are he or she will mention it to othersWord of mouth advertising – type of promotion
in which customers tell others about their experience with a specific business
WHAT IS CUSTOMER SERVICE? Methods of achieving rapport:
Language Use speech and body language similar to the
customer Be aware of your nonverbal communication as
well as that from the customer Cultural
Find shared interests and experiences Be aware of cultural differences
Other Create a positive environment Be open to doing something for a customer for no
immediate return Identify barriers and work to remove them