Session 8.

Strategic Marketing for Savings Mobilization

Session Outline

Introduction to Strategic Marketing

Lesson 1. Developing a Corporate Brand

Lesson 2. Developing a Product Strategy

Lesson 3. Customer Service Strategy &

Product Delivery

Introduction toStrategic Marketing

Introduction toStrategic Marketing

• Definition

• Objectives

• Strategic Marketing Framework

Introduction to Strategic Marketing

Definition of Marketing:Definition of Marketing:

The business function that:The business function that:• identifies current unfulfilled needs and identifies current unfulfilled needs and

wants,wants,• defines and measures their magnitude, defines and measures their magnitude, • determines which target markets the bank determines which target markets the bank

can best serve, and can best serve, and • decides on appropriate products, services, decides on appropriate products, services,

and programs to serve these markets. and programs to serve these markets.

Objectives of Marketing:Objectives of Marketing:

• Identify and attract depositors

• Improve competitiveness of services

• Promote the bank’s image and identity

Strategic Marketing

The Marketing Strategy

Strategic Marketing Framework

Development of brandattributes & positioningstatement

Branding communicationplan

i) Internalii) External

Corporate communications& public relations

Personnel training & development strategy

Delivery process development

Customer service

ACorporate

Brand Strategy

BProductStrategy

CProduct Delivery &Customer Service

Strategy

Differentiation & Segmentation

Brands, Taglines, USPsand Benefit Statements

Pricing strategy

Sales strategy & productmanagement

Direct - push

Advertising & promotions - pull

Client reward - retention

Customer oriented culture

Strategic Marketing Strategies

• Branding Strategy

• Product Strategy

• Product Delivery and Customer Service Strategy

Lesson 1. Developing a Corporate Brand

Strategic Marketing for Savings Mobilization

I. Developing a Corporate Brand

Outline of Discussion:

Brand Development & Positioning Examples of bank brands Processes to Build Brand

Developing a Corporate Brand

Definition of Brand

“A name, term, symbol or design (or a combination of them) intended to signify the goods and services of one seller or group of sellers and to differentiate them from those of the competitors”

- Philip Kotler-

Developing a Corporate Brand

The Importance of Brand

Instant recognition Differentiation Credibility Warranty Facilitated Promotion Word of Mouth Marketing Goodwill

Developing a Corporate Brand

More on Brand…

More than a symbol In the public eye, a brand is a warranty It is a promise that the service carrying that brand will

live up to its name and perform Brand can generate loyalty from customers

A SERVICE IS A PROMISE AND BUILDING A BRAND BUILDS YOUR PROMISE

Developing a Corporate Brand

Developing your brand….

Select Select attributesattributes that build on existing perceptions or that build on existing perceptions or perceptions that you wish to develop into a tagline: perceptions that you wish to develop into a tagline:

“ “Tradition of Leadership”Tradition of Leadership” “ “Your Bank of Choice” Your Bank of Choice” ““Subok Na Matibay, Subok na Matatag”Subok Na Matibay, Subok na Matatag” “ “We manage risks, We provide We manage risks, We provide

opportunities” opportunities”

Developing a Strong Brand: Sample Brands

Developing a Strong Brand: More Sample Brands

Developing a Corporate Brand

How to Build Brand

Define your brand’s personality - so that you cultivate that personality when communicating to your customers or the public

Build a set of positive associations – such as key attributes; benefits – not just features; corporate values; personality traits; and suggest the type of people that buy the brand

Push generic values (not specific product); such as “quality” and “convenience”

Developing a Corporate Brand: How to Build YOUR Brand

Understand what customers are looking for – then sell it to them; “This is what we stand for (positive values) This is what we’ll offer you.”

Test and validate your branding strategy and your products Get potential clients to the bank – then sell them the brand

and product Use taglines, common corporate colors, symbols & logos, etc; Communicate the branding campaign to staff and

management. It must be aligned with the organizational culture.

Ensure that your advertising consistently supports your brand

Price

Quality Product

Convenience, service-oriented

environment

Focus on one or two positioning

issues:

stand for something clearly and

convincingly

Developing a Brand: Perceptual Map

Lesson 2. Developing a Product Strategy

Strategic Marketing for Savings Mobilization

II. Developing a Product Strategy

• Definition

• Approaches

• Components

• Group Exercises

• Sales Strategy

Developing a Product Strategy

Definition:

“A strategic approach to developing and enhancing products to fit the needs of the market with the end-view of optimizing sales in the most profitable manner”

Developing a Product Strategy: Approaches

Develop and Differentiate Your Product

Branding Tagline Unique Selling Proposition (USP) Benefit Statements Sales Strategy

Developing a Product Strategy: Components

• Product brand. has similar objectives to corporate branding – namely differentiation, warranty and sales promotion.

Ex: “Double Your Money” time deposit; “Platinum” time deposit.

• Tagline. A positioning “line” that describes the way you want your customers to see the product. It seeks to communicate key product messages to the customer and must always be there in print and in the mind of the customers. Ex: “Double your money in 5 years”;

• Ultimate Selling Proposition. This is “the difference that makes a difference”. The difference you wish to communicate to your client and compels him to choose your product over that of the competition.

Developing a Product Strategy: Components (cont.)

• Benefit Statement. The key product attributes and by translating them into benefits for the customer. This list of benefits is the most powerful tool to convince potential clients to buy your product.

“Customers do not buy products and services, they buy benefits or value”

Developing a Product Strategy: Group Exercises

Exercise 1: Deciphering Product Strategy

1. Identify the brand name, tagline, ultimate selling proposition and benefit statements that are found in the promotional materials

2. Discuss your perceptions within the group

3. Report back to the full group

Developing a Product Strategy: Group Exercises

Exercise 2: Applying Product Strategy to Your Bank

1. Using one or two of your existing product/s, create a brand name, tagline, ultimate selling proposition and benefit statement for those products

2. Organize and compose your bank’s promotional materials or flyer with these messages

Developing a Product Strategy: Sales Strategy

• Components of Sales Strategy

• Approaches to Sales Strategy

• “Dos” for Promotional Literature

• Balancing Sales Strategy

Developing a Product Strategy: Sales Strategy

Components:

Promotional Strategies should be based on:

IMAGE: projecting an image of professionalism, safety and security;

QUALITY OF SERVICE: high quality product delivery; (speed, response, convenience)

RETURNS: Competitive interest paid on deposits

Developing a Product Strategy: Sales Strategy

Approaches:

I. Pull-based strategy. Utilizes big budgets for advertising and promotions to increase demand, which pulls the customers to demand the product.

Advertising Public relations Sales promotions Direct marketing

Developing a Product Strategy: Sales Strategy

Approaches:

II. Push based. Use the sales force to push the product.

Developing a Product Strategy: Sales Strategy

Developing Promotional LiteratureDeveloping Promotional Literature

• Promotional literature is usually the only thing the client will Promotional literature is usually the only thing the client will pick-up and see when considering a purchasepick-up and see when considering a purchase

• When selling is done on a face-to-face basis, after the When selling is done on a face-to-face basis, after the marketing people has explained the product and its benefits, marketing people has explained the product and its benefits, it is the promotional literature that the customer will take it is the promotional literature that the customer will take away/keepaway/keep

• … … and on which the he/she may make a final decisionand on which the he/she may make a final decision..

Developing a Product Strategy: Balancing Sales Strategy

The Marketing Communications MixThe Marketing Communications Mix consistent, clear

compelling company & product messages

Direct Marketing

Public Relations

Personal Selling

Sales Promotion Advertising

Lesson 3. Customer Service Strategy and

Product Delivery

Strategic Marketing for Savings Mobilization

III. Customer Service Strategy & Product Delivery

• Personnel Training & Development

• Customer Service

• Product Delivery

Personnel Training & DevelopmentPersonnel Training & Development• Defines your corporate imageDefines your corporate image• Makes/breaks your brandMakes/breaks your brand• Ensures quality/commitment (or otherwise)Ensures quality/commitment (or otherwise)• Delivers your productsDelivers your products

Focus on optimizing staff performance:Focus on optimizing staff performance:– Training/Staff DevelopmentTraining/Staff Development– Team BuildingTeam Building– Incentive SchemesIncentive Schemes

Customer Service Strategy & Product Delivery

Customer Service Strategy & Product Delivery

Personnel Training and DevelopmentPersonnel Training and DevelopmentStart with You & Your Employees!Start with You & Your Employees!

An efficient and economical method to market is through your An efficient and economical method to market is through your employeesemployees

• Each employee should know that every act is a marketing Each employee should know that every act is a marketing act upon which the bank’s success dependsact upon which the bank’s success depends

• Review the interactions that frontline staff have with Review the interactions that frontline staff have with customers and seek their input on attracting and retaining customers and seek their input on attracting and retaining customers.customers.

• Develop and pilot-test “frequency asked questions”Develop and pilot-test “frequency asked questions”

Customer Service Strategy & Product Delivery

Customer Service DeliveryCustomer Service Delivery

“ “ Good Customer Service Good Customer Service Means Loyal Customers” Means Loyal Customers”

Customer Service Strategy & Product Delivery

Above All Else: Client ServiceAbove All Else: Client Service

Five key reasons why superior customer service must be a Five key reasons why superior customer service must be a “prime directive” for your business:“prime directive” for your business:

• Good service keeps customersGood service keeps customers• Good service builds word-of-mouth businessGood service builds word-of-mouth business• Good service can help you overcome competitive Good service can help you overcome competitive

disadvantagesdisadvantages• Good service is easier than many parts of your businessGood service is easier than many parts of your business• Good service helps you work more efficientlyGood service helps you work more efficiently

Good Customer Service Means …Good Customer Service Means …

• Research and understand customer needs and Research and understand customer needs and expectationsexpectations

• Human resource policies and protocols for recruitment, Human resource policies and protocols for recruitment, training, motivation and incentives training, motivation and incentives

• Development of appropriate products/servicesDevelopment of appropriate products/services• Use of technology to optimize accuracy and efficiencyUse of technology to optimize accuracy and efficiency• Management of the delivery process and attention to Management of the delivery process and attention to

failure pointsfailure points• Monitoring customer care/service quality programMonitoring customer care/service quality program

Customer Service Strategy & Customer Service Strategy & Product DeliveryProduct Delivery

Setting Service StandardsSetting Service Standards

• Service standards are measures to evaluate actual Service standards are measures to evaluate actual performance performance

• Protocols must be clear and consistent so staff know what Protocols must be clear and consistent so staff know what to do, how to do it and when to do itto do, how to do it and when to do it

• Establish measurable criteria and set standardEstablish measurable criteria and set standard• Specify actions you want employees to take in response Specify actions you want employees to take in response

to customerto customer• Your service standards will get more notice if you reward Your service standards will get more notice if you reward

employees who exceed thememployees who exceed them• Involve customers in providing feedbackInvolve customers in providing feedback

Customer Service Strategy & Customer Service Strategy & Product DeliveryProduct Delivery

Improving Customer ServiceImproving Customer Service

• Diagnose key issues and opportunities for improvementDiagnose key issues and opportunities for improvement• Set measurable customer service standardsSet measurable customer service standards• Use mystery shoppingUse mystery shopping• Set performance based incentivesSet performance based incentives• Use service quality questionnairesUse service quality questionnaires• Think about service recoveryThink about service recovery

Customer Service Strategy & Customer Service Strategy & Product DeliveryProduct Delivery

Keeping CustomersKeeping Customers

It is more cost-effective to keep customers It is more cost-effective to keep customers than to win new ones.than to win new ones.

Keeping your ‘churn rate’ as low as possible Keeping your ‘churn rate’ as low as possible is a strategic objective.is a strategic objective.

There is only one boss – the customer. And he can fire everybody, by spending his money elsewhere

You must meet their needsYou must meet their needs!!

Customer Service Strategy & Customer Service Strategy & Product DeliveryProduct Delivery

Customer Service Strategy & Product Delivery

Improving Product DeliveryImproving Product Delivery

Product Delivery

Improving Processes- Alarm SignalsImproving Processes- Alarm Signals• Look out for Look out for signs of stresssigns of stress• Lengthening queuesLengthening queues• Decreasing numbers of new customersDecreasing numbers of new customers• Falling activity ratesFalling activity rates• Longer working hours in front officesLonger working hours in front offices• Increasing customer complaintsIncreasing customer complaints• Decreasing number of new accountsDecreasing number of new accounts• Increased rates of dropoutIncreased rates of dropout• Performance targets not reached Performance targets not reached

Improving Product Delivery ProcessesImproving Product Delivery Processes• Look for Look for quick winsquick wins::

– Simplify and speed up processing of normal Simplify and speed up processing of normal transactions through careful observation;transactions through careful observation;

– Reduce the number of people queuing at the counter Reduce the number of people queuing at the counter to make enquiries;to make enquiries;

– Communicate prices Communicate prices – Salary boards Salary boards – Dedicated customer service staff Dedicated customer service staff – FAQ guides FAQ guides

Product Delivery

Improving Product Delivery ProcessesImproving Product Delivery Processes• Look for Look for quick winsquick wins::

– Conduct process mapping Conduct process mapping – Reduce account opening formalities Reduce account opening formalities

• Carefully communicate account opening Carefully communicate account opening formalities;formalities;

• Reduce approval processReduce approval process• Reduce documentation requirements Reduce documentation requirements

– Dedicated product tellers Dedicated product tellers – Part time staff at month ends where possible Part time staff at month ends where possible

Product Delivery

Product Delivery Process MappingProduct Delivery Process Mapping

A detailed recording of systems and procedures A detailed recording of systems and procedures typically in the form of a flow chart used to identify typically in the form of a flow chart used to identify inefficient or redundant proceduresinefficient or redundant procedures

Passbook, Paying-in slip & Money

Checked by Teller

Teller Generates Receipt Note

Receipt Note

Product Delivery

Seminar Summary: Strategic Marketing for Savings Mobilization

A strong and cohesive strategic marketing strategy incorporates:

• A brand• A product strategy• A customer service strategy

and efficient product delivery

Thank you