marketing-banking diploma examination

8/3/2019 Marketing-Banking Diploma Examination

http://slidepdf.com/reader/full/marketing-banking-diploma-examination 1/26

MARKETING Advertising

� Objectives

� Budget

� Strategy

� Effectives

Public Relations� Role and impact

� Tools

Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Advertisin

Developing and Advertising Programs

Advertising

Setting Advertising Objectives

An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time

Objectives are classified by primary purpose

� Inform

� Persuade

� Remind

Advertising

Setting Advertising Objectives

Informative advertising is used when introducing a new product category; the objective is to build primary demandComparative advertising directly or indirectly compares the brand with one or more other brands

Persuasive advertising is important with increased competition to build selective demand

Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the

product

Table 15.1Possible Advertising Objectives

Advertising

Setting the Advertising Budget

Factors to consider when setting the budget

� Product life-cycle stage

� Market share

� Competition and clutter

� Advertising frequency� Product differentiation

� Amount of profit

Advertising

Setting the Advertising BudgetProduct life-cycle stage

� New products require larger budgets

� Mature brands require lower budgets

Market share

� Building or taking market share requires larger budgets

� Markets with heavy competition or high advertising clutter require larger budgets

� Undifferentiated brands require larger budgets

Advertising

Setting the Advertising BudgetMethod of setting the budget

� Affordable method

� Percentage of sales method

� Competitive parity method

� Objectives and task method

� Arbitrary method

AdvertisingDeveloping Advertising Strategy

Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of:

� Creating advertising messages

� Selecting advertising media

Advertising

Creating the Advertising Message



Advertisements need to break through the clutter:

� Gain attention

� Communicate

well

Advertising


Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers

Advertising


Message strategy is the general message that will be communicated to consumers

� Identifies consumer benefits

AdvertisingCreating the Advertising Message

Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign

Characteristics of the appeals include:

� Meaningful

� Believable

� Distinctive

Advertising


� Message execution The creative team must find the best approach, style, tone, words, and format for executing the message.

Advertising


AdvertisingCreating the Advertising Message

Message execution also includes:� Tone

� Positive or negative

� Attention-getting words

� Format

� Illustration

� Headline

� Copy

Advertising

Selecting Advertising Media

Major steps include:

� Deciding on reach-frequency-impact� Selecting media vehicles

� Deciding on media timing

Advertising


Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

Frequency is a measure of how many times the average person in the target market is exposed to the message

Impact is the qualitative value of a message exposure through a given mediumAdvertising


Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the

message�s:

� Impact

� Effectiveness� Cost

Advertising


When deciding on media timing, the planner must consider:

� Seasonality

� Pattern of the advertising

� Continuity�scheduling within a given period

Advertising

Evaluating the Effectiveness and Return on Advertising Investment

Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after th

ad runs

Sales and profit effects compare past sales and profits with past expenditures or through experiments

IS Advertising Wasteful



IS Advertising Wasteful

Public Relations

Public relations involves building good relations with the company�s various publics by obtaining favorable publicity, building up a go

corporate image, and handling unfavorable rumors, stories, and events

Public relations is used to promote product, people, ideas, and activities

Public Relations

Public relations department functions include:

� Media relations

� Product publicity

� Counseling� Lobbying

� Sponsor

� Arranging special events

Public Relations

The Role and Impact of Public Relations

� Lower cost than advertising

� Stronger impact on public awareness than advertising

Public RelationsMajor Public Relations Tools

Principles of

MARKETING

Communicating Customer Value:Integrated Marketing Communications Strategy

Topic Outline

� The Promotion Mix

� Integrated Marketing Communications

� A View of the Communications Process

� Steps in Developing Effective Marketing Communication

� Setting the Total Promotion Budget and Mix

The Promotion Mix

The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company us

persuasively communicate customer value and build customer

Major Promotion Tools

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

� Broadcast

� Print

� Internet

� Outdoor

Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service

� Discounts

� Coupons

� Displays

� Demonstrations

Public relations involves building good relations with the company�s various publics by obtaining favorable publicity, building up a go

corporate image, and handling or heading off unfavorable rumors, stories, and events

� Press releases

� Sponsorships� Special events

� Web pages

Personal selling is the personal presentation by the firm�s sales force for the purpose of making sales and building customer relationsh

� Sales presentations

� Trade shows

� Incentive programs

Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response

cultivate lasting customer relationships�through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to

communicate directly with specific consumers

� Catalog

� Telemarketing

Integrated Marketing Communications

The New Marketing Communications Landscape



� Consumers are better informed

� More communication

� Less mass marketing

� Changing communications technology

The Need for Integrated Marketing Communications

Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and

compelling message about the organization and its brands

A View of the Communication ProcessSteps in Developing Effective Marketing Communication

Identifying the Target market

Determining the Communication Objectives

Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness

Designing a Message

� AIDA Model

� Get Attention

� Hold Interest

� Arouse Desire

� Obtain Action

Message content is an appeal or theme that will produce the desired response

� Rational appeal

� Emotional appeal

� Moral appeal

Message Format

Designing a Message

Rational appeal relates to the audience�s self-interest

Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase

Moral appeal is directed at the audience�s sense of right and proper

Choosing Media

Personal communication involves two or more people communicating directly with each other

� Face to face

� Phone

� Mail

� E-mail

� Internet chatPersonal communication is effective because it allows personal addressing and feedback

CHOOSING MEDIA

Personal CommunicationOpinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics

exerts social influence on others

Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their

communities

Non-Personal Communication Channels

Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, a

events that affect the buyer directly

Major media include print, broadcast, display, and online mediaEvents are staged occurrences that communicate messages to target audiences

� Press conferences� Grand openings

� Exhibits

� Public tours

Selecting the Message SourceThe message�s impact on the target audience is affected by how the audience views the communicator

� Celebrities

� Athletes

� Entertainers

� Professionals

� Health care providers

Collecting Feedback

Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior

Setting the Total Promotion Budget and Mix



Setting the Total Promotion Budget

Affordable budget method sets the budget at an affordable level

� Ignores the effects of promotion on sales

Percentage-of-sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price� Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit

Competitive-parity method sets the budget to match competitor outlays

� Represents industry standards

� Avoids promotion wars

Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes:� Defining promotion objectives

� Determining tasks to achieve the objectives

� Estimating costsShaping the Overall Promotion Mix

The Nature of Each Promotion Tool

Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message m

timesPersonal selling is the most effective method at certain stages of the buying process, particularly in building buyers� preferences,

convictions, actions, and developing customer relationships

Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to

purchase, and can be used to dramatize product offers and to boost sagging sales

Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events

Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarket

and online marketingPromotion Mix Strategies

Integrating the Promotion Mix

Checklist

Socially Responsible Marketing Communication

� Communicate openly and honestly with consumers and resellers

� Avoid deceptive or false advertising

� Avoid bait-and-switch advertising

� Conform to all federal, state, and local regulations

� Follow rules of �fair competition�� Do not offer bribes

� Do not attempt to obtain competitors� trade secrets

� Do not disparage competitors or their products

CONSUMER BUYER BEHAVIOR

Consumer Markets and Consumer Buyer Behavior Topic Outline

� Model of Consumer Behavior

� Characteristics Affecting Consumer Behavior

� The Buyer Decision Process

Model of Consumer Behavior

Consumer buyer behavior refers to the buying behavior of final consumers�individuals and households who buy goods and services fo

personal consumption

Characteristics Affecting Consumer Behavior

Factors Influencing Consumer Behavior

Culture is the learned values, perceptions, wants, and behavior from family and other important institutions

Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations� Bengalis

� Gujaratis

� Punjabis

Social classes are society�s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

� Measured by a combination of occupation, income, education, wealth, and other variables

Social Factors

� Family is the most important consumer-buying organization in society

� The groups, family, clubs, and organizations that a person belongs to define his/her social role and status

Personal Factors

� Age and life-cycle stage

� Profession

� Economic situation

� Personality and self-concept



Occupation affects the goods and services bought by consumers

Economic situation includes trends in:

Lifestyle is a person�s pattern of living as expressed in his or her psychographics

� Measures a consumer �s AIOs (activities, interests, opinions) to capture information about a person�s pattern of acting and

interacting in the environmentPersonality and self-concept

� Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the

consumer �s environment

Psychological Factors

Psychological FactorsMotivation

A motive is a need that is sufficiently pressing to direct the person to seek satisfaction

Motivation research refers to qualitative research designed to probe consumers� hidden, subconscious motivations

Maslow�s

Hierarchy of Needs

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from thre

perceptual processes

� Selective attention

� Selective distortion

� Selective retention

Learning is the change in an individual�s behavior arising from experience and occurs through interplay of:

Psychological Factors

Beliefs and AttitudesBelief is a descriptive thought that a person has about something based on:

� Knowledge

� Opinion

� Faith

Attitudes describe a person�s relatively consistent evaluations, feelings, and tendencies toward an object or idea

Types of Buying Decision Behavior

Types of Buying Decision Behavior

Four Types of Buying Behavior

The Buyer Decision Process/Buyer Decision Making Process

Need RecognitionOccurs when the buyer recognizes a problem or need triggered by:

� Internal stimuli

� External stimuli

Information Search

Sources of Information

� Personal sources�family and friends

� Commercial sources�advertising, Internet

� Public sources�mass media, consumer organizations

� Experiential sources�handling, examining, using the product

Evaluation of AlternativesHow the consumer processes information to arrive at brand choicesPurchase Decision

� The act by the consumer to buy the most preferred brand

� The purchase decision can be affected by:

� Attitudes of others

� Unexpected situational factors

Post-Purchase Decision� The satisfaction or dissatisfaction that the consumer feels about the purchase

� Relationship between:

� Consumer �s expectations

� Product�s perceived performance

� The larger the gap between expectation and performance, the greater the consumer �s dissatisfaction



Customer satisfaction is a key to building profitable relationships with consumers�to keeping and growing consumers and reaping thei

customer lifetime value

The Buyer Decision Process for New Products

Influence of Product Characteristics on Rate of Adoption

ROLE OF MARKETING

Role of Marketing of Financial services in the Economic Development Like Bangladesh� Increase in agricultural production

� Development of foreign trade

� Market development and expansion

� Proper distribution

� Increase in national income� Creating employment opportunity

� Facilitating competition

� Increase export

� Increasing industrial production

� Creation of new utility of product

� Maintenance of economic stability

� Service marketing

� Development of standard of living

Marketing Challenges

� Technological advances

� Rapid globalization

� Deregulation

� Privatization� Free market economy

� Growing attention to social and environmental responsibilities

� Greater use of marketing by nonprofit and public sector organizations

� Customer empowerment

Companywide Strategic Planning

Setting Company Objectives and Goal

Designing the Business Portfolio

The business portfolio is the collection of businesses and products that make up the company

Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up thecompany

Analyzing the Current Business Portfolio

Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from othcompany businesses

� Company division

� Product line within a division

� Single product or bran

Companywide Strategic Planning:

Problems with Matrix Approaches� Difficulty in defining SBUs and measuring market share and growth

� Time consuming

� Expensive

� Focus on current businesses, not future planning

Developing Strategies for Growth and Downsizing

Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification


Product/Market Expansion Grid Strategies


Product/market expansion grid strategies

Market penetration is a growth strategy increasing sales to current market segments without changing the product

Market development is a growth strategy that identifies and develops new market segments for current products

Product development is a growth strategy that offers new or modified products to existing market segments

Diversification is a growth strategy through starting up or acquiring businesses outside the company�s current products and markets

Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fi

company�s overall strategy



Planning Marketing

Partnering to Build Customer Relationships

Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm�s

productsValue delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to imp

performance of the entire system

Marketing Strategy and the Marketing Mix

Customer-Driven Marketing Strategy

Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and w

might require separate products or marketing mixes

Market segment is a group of consumers who respond in a similar way to a given set of marketing effortsCustomer-Centered Marketing Strategy

Market targeting is the process of evaluating each market segment�s attractiveness and selecting one or more segments to enter

Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the

minds of the target consumer

Developing an Integrated Marketing Mix

Marketing mix is the set of controllable tactical marketing tools� product, price, place, and promotion�that the firm blends to produce

response it wants in the target market

Managing the Marketing Effort

Market Planning�Parts of a Marketing Plan

Marketing Implementation

Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives� Successful implementation depends on how well the company blends its people, organizational structure, decision and rewar

system, and company culture into a cohesive action plan that supports its strategiesMarketing Department Organization

Marketing Control

� Controlling is the measurement and evaluation of results and the taking of corrective action as needed

� Operating control

� Strategic control

Measuring and Managing

Return on Marketing Investment

Return on Marketing Investment (Marketing ROI)

Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing

investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.MARKETING CHANNELS

The Nature and Importance of Marketing Channels

How Channel Members Add Value

Intermediaries offer producers greater efficiency in making goods available to target markets. Through their contacts, experience,

specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own.

Number of Channel Levels

Connected by types of flows:

� Physical flow of products

� Flow of ownership

� Payment flow

� Information flow

� Promotion flowChannel Behavior and Organization

Channel Behavior Marketing channel consists of firms that have partnered for their common good with each member playing a specialized role

Channel conflict refers to disagreement over goals, roles, and rewards by channel members� Horizontal conflict

� Vertical conflict

Conventional Distributions Systems

Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its

profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict.

Vertical Marketing SystemsVertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified

system and consist of:

� Corporate marketing systems



� Contractual marketing systems

� Administered marketing systems

Multichannel Distribution System

Changing Channel Organization

Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically newtypes of channel intermediaries displace traditional ones

Channel Design Decisions

Setting Channel Objectives

� Targeted levels of customer service

� What segments to serve� Best channels to use

� Minimizing the cost of meeting customer service requirements

Identifying Major Alternatives� Types of intermediaries

� Number of marketing intermediaries

� Responsibilities of channel members

Marketing Logistics and

Supply Chain Management

Major Logistics Functions

Warehousing Decisions

� How many

� What types

� Location

� Distribution centers

Transportation affects the pricing of products, delivery performance, and condition of the goods when they arrive

ANALYZING THE MARKETING ENVIRONMENT

Topic Outline

� The Company�s Microenvironment

� The Company�s Microenvironment

� Responding to the Marketing Environment

The Marketing Environment

The marketing environment includes the actors and forces outside marketing that affect marketing management�

s ability to build andmaintain successful relationships with customersMicroenvironment consists of the actors close to the company that affect its ability to se

its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

The Company�s Microenvironment

Actors in the Microenvironment

The Company

� Top management

� Finance

� R&D

� Purchasing

� Operations

� AccountingSuppliers

� Provide the resources to produce goods and services

� Treated as partners to provide customer value

Marketing Intermediaries

Help the company to promote, sell and distribute its products to final buyersTypes of Marketing Intermediaries

CompetitorsFirms must gain strategic advantage by positioning their offerings against competitors� offerings

Publics

Any group that has an actual or potential interest in or impact on an organization�s ability to achieve its objectives

� Financial publics

� Media publics



� Government publics

� Citizen-action publics

� Local publics

� General public

� Internal publics

Customers

Customer is a person or organization that buys something from a shop/store or business

Demographic EnvironmentDemography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

� Demographic environment is important because it involves people, and people make up markets

� Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population

diversity� Growth in the rural population

� A changing family system

� The changing role of women

� Increasing diversity

Economic Environment

Economic environment consists of factors that affect consumer purchasing power and spending patterns

� Industrial economies are richer markets

� survival economies consume most of their own agriculture and industrial output

Natural Environment

Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities

� Trends

� Shortages of raw materials

� Increased pollution� Increase government intervention

Technological Environment

� Most dramatic force in changing the marketplace

� Creates new products and opportunities

Political EnvironmentPolitical environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and

individuals in a given society

Cultural environment consists of institutions and other forces that affect a society�s basic values, perceptions, and behaviors

Responding to the Marketing Environment

Views on Responding

MARKETING RESEARCH AND INFORMATION SYSTEMS

Chapter Objectives

� Explain the importance of information� Understand marketing information systems

� Outline the marketing research process

� Discuss data collection techniques

� Discuss special issues in market research

Marketing Information Systems: System Functions

� Assess information needs

� Develops needed information

� Information analysis

� Distributes information

Assessing Information Needs

� Balances:

� What would be liked?� What is needed?

� What is feasible?

� Irrelevant information

� Information limitations

� Costs of gathering, processing, storing, and delivering?

Developing Information

� Internal Data

� Accounting

� Manufacturing

� Sales and marketing

� Customer service

� Research studies

� Quick access, less expensive



� Data warehouses and data mining

� Marketing Intelligence

� Company personnel

� Key customers

� Suppliers and resellers

� Government agencies

� Competitive analysis

� Trade associations

� Internet search engines

� Information companies

� Market Research

� Systematic design, collection and analysis� Reporting data and findings

� Relevant to a specific marketing situation

� Can be done internally or externally

� Information Analysis

� Information must be analyzed before use in decision making

� Advanced statistical analysis

� Analytical models

Distributing Information

� Right people at right time

� Regular management decisions

� Special situations

� Fast availability

Market Research Process: Defining Problem and Objectives� Exploratory research

� Preliminary information

� Problem definition and hypothesis suggestion

� Descriptive research

� Better describe marketing problems, situations, or markets

� Causal research

� Test hypothesis of cause and effect relationships

Develop the Research Plan

� Determine Specific Information Needs

� Target customer characteristics

� Patterns of product usage

� Demand factors

� Response of marketing channels� Customer reactions

� Projected sales

� Gather Secondary Information

� Internal database sources

� Company, public, and university libraries

� Government and business publications

� Commercial data services

� On-line databases

� Internet data sources

� International data

Advantages of Secondary Data

� Less time to obtain

� Lower cost than primary research� Alternate means of access to information

� Benefit from resources of others

Potential Problems With Secondary Data� Information may not exist

� May not be:

� Relevant

� Accurate

� Current

� Impartial

Market Research Process: Plan Primary Data Collection

� Research Approaches

� Observation

� Survey



� Experiment

� Observational Research

� Observing relevant people, actions, situations

� Mechanical observation, people meters, checkout scanners

� Single-source data systems

� Overcomes unwilling or unable problem

� Some things not readily observed

� Difficult to monitor long-term or infrequent behaviour

� Survey Research

� Questions about knowledge, attitudes preferences or buying behaviour

� Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than

other two methods� Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledg

pleasing answers

� Experimental Research

� Best suited for gathering causal information

� Selecting matched groups of subjects

� Given different experimental treatments

� Variables controlled

� Responses measured and recorded

Contact Methods: Strengths and Weaknesses

Mail Phone Personal

Flexibility Poor Good ExcellentQuantity of data collected Good Fair Excellent

Control interviewer affects Excellent Fair Poor Control of sample Fair Excellent Fair

Speed of data collection Poor Excellent Good

Response rate Poor Good Good

Cost Good Fair Poor

Personal Interviewing

� Individual

� Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE

� Computer interviewing or computer-assisted

� Group

� Focus group

� Online

� Electronic

� Sampling Plans - three issues� What is the sampling unit?

� What is the sample size?

� What is the sampling procedure?

Market Research Process: Types of Samples

Probability Samples

� Simple random sample

� Known chance

� Equal probability

� Stratified random sample

� Mutually exclusive groups

� Random sample drawn

Non-probability Samples�

Convenience sample� Select easiest population

� Judgement sample

� Select for accurate response

� Interviewer sets number

Market Research Process: Research Instruments

� Questionnaire

� Question contribution

� Question form

� Closed-end

� Open-end

� Wording

� Ordering

�

Mechanical



� People meters

� Checkout scanners

� Galvanometer

� Eye cameras

Market Research Process: Present the Research Plan

� Written Research Proposal

� Management problems addressed by research

� Research objectives

� Information sought

� Sources of secondary information

� Methods of obtaining primary data

� Benefits and costsMarket Research Process: Implement the Research

� Collect Data

� Company research staff

� Outside services

� Most costly and error prone process

� Analyze Data

� Isolate important information and findings

� Check accuracy and completeness

� Tabulate results

Market Research Process: Interpret and Report Findings� Focus on useful decision support

� Clear and open

� Discuss interpretation� Team approach

� Ultimate decision with management

Market Research Process: Other Considerations

� Small Business and Non-Profit Organizations

� Obtain good information through observation

� Informal surveys with convenience samples

� Informal focus groups

� Conduct simple experiments

� Secondary data is widely available

� International Marketing Research

� Growing due to multinationals

� Partnerships and alliances

� Difficulty in developing good samples� Difficulty in reaching respondents

� Language translation

� Consumer behaviour differences

� Public Policy and Ethics

� Increasing consumer resentment

� Industry codes of ethics

� Intrusions on consumer privacy

� Misuse of research findings

Marketing Information System: Developing Information

� Market Research

� Systematic design, collection and analysis

� Reporting data and findings

� Relevant to a specific marketing situation� Can be done internally or externally

Market Research Process: Defining Problem and Objectives

� Exploratory research

� Preliminary information

� Problem definition and hypothesis suggestion

� Descriptive research

� Better describe marketing problems, situations, or markets

� Causal research

� Test hypothesis of cause and effect relationships

Market Research Process: Develop the Research Plan

� Determine Specific Information Needs

� Target customer characteristics

� Patterns of product usage



� Demand factors

� Response of marketing channels

� Customer reactions

� Projected sales

� Gather Secondary Information

� Internal database sources

� Company, public, and university libraries

� Government and business publications

� Commercial data services

� On-line databases

� Internet data sources

� International dataAdvantages of Secondary Data

� Less time to obtain

� Lower cost than primary research

� Alternate means of access to information

� Benefit from resources of others

Potential Problems With Secondary Data

� Information may not exist

� May not be:

� Relevant

� Accurate

� Current

� Impartial

Market Research Process: Plan Primary Data Collection� Research Approaches

� Observation

� Survey

� Experiment

� Observational Research

� Observing relevant people, actions, situations

� Mechanical observation, people meters, checkout scanners

� Some things not readily observed

� Survey Research

� Questions about knowledge, attitudes preferences or buying behaviour

� Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than

other two methods

� Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledg pleasing answers

� Experimental Research

� Best suited for gathering causal information

� Given different experimental treatments

� Variables controlled

� Responses measured and recorded

Personal Interviewing

� Individual

� Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE

� Computer interviewing

� Group

� Focus group

� Online� Electronic

� Sampling Plans - three issues

� What is the sampling unit?

� What is the sample size?

� What is the sampling procedure?

Probability Samples

� Simple random sample

� Equal probability

� Mutually exclusive groups

� Random sample drawn

Non-probability Samples

� Convenience sample

� Select easiest population



� Judgement sample

� Select for accurate response

Market Research Process: Research Instruments� Questionnaire

� Question contribution

� Question form

� Closed-end

� Open-end

� Wording

� Ordering

� Mechanical

� People meters� Checkout scanners

� Eye cameras

Market Research Process: Present the Research Plan

� Written Research Proposal

� Management problems addressed by research

� Research objectives

� Information sought

� Sources of secondary information

� Methods of obtaining primary data

� Benefits and costs

Market Research Process: Implement the Research

� Collect Data

� Company research staff � Outside services

� Most costly and error process

� Analyze Data

� Isolate important information and findings

� Check accuracy and completeness

� Tabulate results

Market Research Process: Interpret and Report Findings

� Focus on useful decision support

� Clear and open

� Discuss interpretation

� Team approach

� Ultimate decision with management

Topic Outline� What Is Marketing?

� Understand the Marketplace and Customer Needs

� Marketing Management Philosophy

� Marketing Management is Demand Management

� Function of Marketing

� Elements of Marketing

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from

customers in return. [Philip Kotler & Armstrong]

Marketing is a process of planning and executing the conception, pricing, promotion and distributing of ideas, goods and services to crea

exchanges that satisfy individual and organizational objectives. [American Marketing Association]

� Customer needs, wants, and demands� Market offerings

� Value and satisfaction

� Exchanges and relationships

� Markets

Needs = Felt of deprivation

Wants = Need+ Cultural and individual factorsDemand = Want+ ability and willingness

Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

[evRvi Advi n��Q GKwU cևqvRb ev Afv�ei m��w� weav� bi Rb� evRv�i Dc��vcb Kiv cY�,

�mev, Z_ � ev Awf �Zvi mg�^q]



Customer Value and Satisfaction Expectations

Value V=Benefit/Cost

Satisfaction Product Perceived Performance and Customer Expectation

PPP>CE= Highly Satisfied Customer

PPP<CE= Dissatisfied Customer

PPP=CE= Satisfied Customer

Exchange is the act of obtaining a desired object from someone by offering something in returnMarkets are the set of actual and potential buyers of a product

Marketing management is the art and science of choosing target markets and building profitable relationships with them

� What customers will we serve?

� How can we best serve these customers?Marketing Management is Demand Management

• Negative Demand

• No Demand

• Latent Demand

• Declining Demand

• Irregular Demand

• Full Demand

• Overfull Demand

• Unwholesome Demand

Selecting Customers to Serve

Market segmentation refers to dividing the markets into segments of customers.

Target marketing refers to which segments to go after.Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it

Marketing Management Orientations/Philosophy

Production concept is the idea that consumers will favor products that are available or highly affordable

Marketing Management Philosophies

The Production Concept

� Management focus on production and distribution efficiency

� Consumers favour

� Readily available products

� Affordable products

Marketing Management Orientations

Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization shou

therefore devote its energy to making continuous product improvements.

Marketing Management Philosophies

� The Product Concept

� Consumers favour products offering

� Highest quality

� Best performance

� Most innovative features

MARKET SEGMENTATIONMarket segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached mo

efficiently and effectively with products and services that match their unique needs

� Segmenting consumer markets

� Segmenting business markets

�

Segmenting international markets� Requirements for effective segmentation

Segmenting Consumer Markets

• Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities

• Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle

income, occupation, education, religion, race, generation, and nationality

Market Segmentation

Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different and life-cycle groups

Gender segmentation divides the market based on sex (male or female)

Income segmentation divides the market into affluent or low-income consumers

Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product



� Occasions

� Benefits sought

� User status

� Usage rate

� Loyalty status

Using Multiple Segmentation Bases

Multiple segmentation is used to identify smaller, better-defined target groups

Geodemographic segmentation is an example of multivariable segmentation that divides groups into consumer lifestyle patternsSegmenting International markets

Segmenting Business Markets

Inter market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in differcountriesMARKET SEGMENTATION, TARGETING AND POSITIONING FOR COMPETITIVE ADVANTAGE

Chapter Objectives

� Define the three steps of target marketing

� Identify the major segmentation bases for consumer and business markets

� Explain how to identify attractive market opportunities and choose market strategies

� Explain positioning and its relationship to competitive advantage

Levels of Market Segmentation: Mass Marketing

� Mass producing, mass distributing and mass promoting the same product in the same way to all consumers

� Largest potential market helps lower costs equalling lower prices or higher margins

� Difficult to access fragmented markets

� Problems in selecting from multiple ad media and distribution channels

Segmented Marketing� Marketing recognizes buyers differ in needs, perceptions, and buying behaviours

� Isolate broad segments comprising a market

� Adapt offers to best match segment needs

� Market more efficiently and effectively

� More focus and less competition

Niche Marketing

� Marketing that focuses on subgroups within large identifiable groups in a market

� Dividing a segment into sub segments

� Defining group with distinctive set of traits seeking special combination of benefits

� Price premium

� Few or no significant competitors

� Improves focus of limited resources

Micromarketing� Tailoring products and marketing programs to suit the tastes of specific individuals or locations

� Local marketing

� Local tailoring of brands and promotions

� Overcomes regional differences

� �First-line customers�� Dilutes brand image and operation efficiency

� Logistical problems

� Individual marketing

� Tailoring products and marketing programs to the needs and preferences of individual customers

� Mass customization

� Custom-made products

� Self-marketing

Segmenting Consumer Markets: Geographic Segmentation� Divide market into separate geographic units

� Nations, regions provinces, cities, etc.

� Develop regional marketing programs

Demographic Segmentation

� Most popular method

� Consumer patterns often follow their demographics

� Easier to measure than most segmentation variables

� Needed for market size and access

� Age and life-cycle stage

� Wants and needs vary with stage

� Guard against stereotypes

� Gender

� Buying patterns frequently follow gender



� Income

� Affluent to restricted incomes

Psychographic Segmentation� Lifestyle

� Reflected in purchases

� Personality

� Express who they are

Behavioral Segmentation

� Divide market into groups based on consumer knowledge, attitude, use, or response to a product

� Occasions

� By occasions when buyers get the idea to buy, actually make the purchase, or use the item

� Benefits sought� Major benefits, people seeking, brands deliver

� User status

� Non-, ex-, potential, first-time, regular

� Usage rate

� Light - medium - heavy

� Heavy users may dominate total market

� Loyalty status

� Toward brand, store, and/or company

� Frequent buyers may not be loyal

� habit, indifference, low price, product unavailability

Multiple Segmentation Bases

� Multiple bases used to better identify segments

� Geodemographic segmentationSegmenting Business Markets

� Business demographics

� Operating characteristics

� Purchasing approaches

� Situational factors

� Personal characteristics

� Plus consumer market variables

Segmenting International Markets

� Geographic location

� Economic factors

� Political and legal

� Cultural factors

� Intermarket (global) segmentation� common needs and buying behavior

Market Targeting: Evaluating Market Segments

� Segment size and growth

� Segment structural attractiveness

� Company objectives and resources

Positioning Competitively: Product Positioning

� Defined by consumers on important attributes

� Place product occupies in mind relative to competing products

� Information overload

� Simplify evaluation

� Position happens - planned or not

Positioning Strategies

� Product attributes� Benefits offered

� Usage occasions

� Classes of users

� Directly against or away from competitor

� Different product class

Possible Competitive Advantages� Product differentiation

� Service differentiation

� Personnel differentiation

� Image differentiation

Selecting Competitive Advantage

� How many differences to promote?

� Over positioning, under positioning, confused positioning



� Which differences to promote?

� Important, distinctive, superior, communicable, pre-emptive, affordable, profitable

Communicating and Delivering the Chosen Position� Concrete action

� Easier to develop than implement

� Positions can be quickly lost

NEW-PRODUCT DEVELOPMENT AND PRODUCT LIFE-CYCLE STRATEGIES

Two ways to obtain new productsAcquisition refers to the buying of a whole company, a patent, or a license to produce someone else�s product

New product development refers to original products, product improvements, product modifications, and new brands developed from the

firm�s own research and development

New-Product Development Reasons for new product failure

Major Stages in New-Product Development

Idea Generation

Idea generation is the systematic search for new-product ideas

• Sources of new-product ideas

� Internal

� External

Internal sources refer to the company�s own formal research and development, management and staff, and �entrepreneurial� progra

External sources refer to sources outside the company such as customers, competitors, distributors, suppliers, University and research

institutes, Business consultant and advertising agencies, other sources.

Idea Screening

� Identify good ideas and drop poor ideas� R-W-W Screening Framework:

� Is it real?

� Can we win?

� Is it worth doing?

Concept Development and Testing

Product idea is an idea for a possible product that the company can see itself offering to the market

Product concept is a detailed version of the idea stated in meaningful consumer terms

Product image is the way consumers perceive an actual or potential productConcept testing refers to testing new-product concepts with groups of target consumers

Marketing Strategy Development

� Marketing strategy development refers to the initial marketing strategy for introducing the product to the market

� Marketing strategy statement includes:

� Description of the target market� Value proposition

� Sales and profit goals

Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the company�s objectives

Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments

� Requires an increase in investment

Test marketing is the stage at which the product and marketing program are introduced into more realistic marketing settingsProvides the marketer with experience in testing the product and entire marketing program before full introduction

Types of Test Markets

� Advantages of simulated test markets

� Less expensive than other test methods

� Faster

� Restricts access by competitors� Disadvantages

� Not considered as reliable and accurate due to the controlled setting

Commercialization is the introduction of the new product

� When to launch

� Where to launch

� Planned market

� Rollout

Successful new-product development should be:� Customer centered

� Team centered

� Systematic

New-Product Development Strategies



Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfy

experiences

� Begins and ends with solving customer problems

Sequential new-product development is a development approach where company departments work closely together individually tocomplete each stage of the process before passing it along to the next department or stage

� Increased control in risky or complex projects

� Slow

Team-based new-product development is a development approach where company departments work closely together in cross-functiona

teams, overlapping in the product-development process to save time and increase effectiveness

Systematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-producideas

� Creates an innovation-oriented culture� Yields a large number of new-product ideas

Product Life-Cycle Strategies

� Product development

� Sales are zero and investment costs mount

� Introduction

� Slow sales growth and profits are nonexistent

� Growth

� Rapid market acceptance and increasing profits.

� Maturity

� Slowdown in sales growth and profits level off or decline

� Decline

� Sales fall off and profits dropFads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Introduction Stage

� Slow sales growth

� Little or no profit

� High distribution and promotion expense

Growth Stage

� Sales increase

� New competitors enter the market

� Price stability or decline to increase volume

� Consumer education

� Profits increase

� Promotion and manufacturing costs gain economies of scaleMaturity Stage

� Slowdown in sales

� Many suppliers

� Substitute products

� Overcapacity leads to competition

� Increased promotion and R&D to support sales and profits

Maturity Stage Modifying Strategies

� Market modifying

� Product modifying

� Marketing mix modifying

Decline Stage

� Maintain the product

� Harvest the product� Drop the product

Summary of Product Life Cycle

Additional Product and Service Considerations

Product Decisions and Social Responsibility

Public policy and regulations regarding developing and dropping products, patents, quality, and safety

International Product and

Service Marketing�Challenges

� Determining what products and services to introduce in which countries

� Standardization versus customization

� Packaging and labeling

� Customs, values, laws

PRICING: UNDERSTANDING AND CAPTURING CUSTOMER VALUE



What Is a Price?

Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the

benefits of having or using a product or service.

Price is the only element in the marketing mix that produces revenue; all other elements represent costs

Factors to Consider When Setting PricesCustomer Perceptions of Value

Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that valu

Value-based pricing uses the buyers� perceptions of value, not the sellers� cost, as the key to pricing. Price is considered before the

marketing program is set.

� Value-based pricing is customer driven

� Cost-based pricing is product driven

Good-value pricing offers the right combination of quality and good service at a fair price

Existing brands are being redesigned to offer more quality for a given price or the same quality for a lower price

Everyday low pricing (EDLP) involves charging a constant everyday low price with few or no temporary price discounts

High-low pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily onselected items

� Value-added pricing attaches value-added features and services to differentiate offers, support higher prices, and build pricin

power

� Pricing power is the ability to escape price competition and to justify higher prices and margins without losing market share

Cost-based pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return

its effort and risk

Company and Product CostsCost-based pricing adds a standard markup to the cost of the product

Company and Product Costs

Types of costs

Fixed costs are the costs that do not vary with production or sales level

� Rent

� Heat

� Interest

� Executive salaries

Variable costs are the costs that vary with the level of production

� Packaging

� Raw materials

Total costs are the sum of the fixed and variable costs for any given level of productionAverage cost is the cost associated with a given level of outputCosts at Different Levels of Production

Costs as a Function of Production Experience

Experience or learning curve is when average cost falls as production increases because fixed costs are spread over more units

Cost-Plus Pricing

� Cost-plus pricing adds a standard markup to the cost of the product

� Benefits

� Sellers are certain about costs

� Prices are similar in industry and price competition is minimized

� Consumers feel it is fair

� Disadvantages

� Ignores demand and competitor prices

Break-Even Analysis and Target Profit Pricing

Break-even pricing is the price at which total costs are equal to total revenue and there is no profit

Target profit pricing is the price at which the firm will break even or make the profit it�s seeking

Break-Even Analysis and Target Profit Pricing

Considerations in Setting Price

Other Internal and External Considerations Affecting Price Decisions

� Customer perceptions of value set the upper limit for prices, and costs set the lower limit

� Companies must consider internal and external factors when setting prices



Target costing starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that the pr

is met

Organizational considerations include:

� Who should set the price

� Who can influence the price

The Market and Demand

Before setting prices, the marketer must understand the relationship between price and demand for its products

The demand curve shows the number of units the market will buy in a given period at different prices

� Normally, demand and price are inversely related

� Higher price = lower demand

� For prestige (luxury) goods, higher price can equal higher demand when consumers perceive higher prices as higher quality

Price elasticity of demand illustrates the response of demand to a change in price

Inelastic demand occurs when demand hardly changes when there is a small change in price

Elastic demand occurs when demand changes greatly for a small change in pricePrice elasticity of demand = % change in quantity demand

% change in price

Other Internal and External Considerations Competitor's Strategies

� Comparison of offering in terms of customer value

� Strength of competitors

� Competition pricing strategies

� Customer price sensitivity

PRODUCT, SERVICES, AND BRANDS: BUILDING CUSTOMER VALUE

Products, Services, and Branding StrategyProducts, Services, and Experiences

A Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or

want [cևqvRb I Afv�ei m��w� c~iY Ki�Z cv�i Ggb wKQz hv g� bv�hvM AvKl�Y, AR � b, e�envi

�fv�Mi Rb� evRv�i Advi�`qv nq ZvB cY�]Levels of Product and ServicesProduct and Service Classifications

� Consumer products are products and services for personal consumption

� Classified by how consumers buy them

� Convenience products

� Shopping products

�

Specialty products� Unsought products

Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum

comparison and buying effort

� Newspapers

� Candy

� Fast food

Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style� Furniture

� Cars

� Appliances

Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group o

buyers is willing to make a special purchase effort� Medical services

� Designer clothes

� High-end electronics

Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying

� Life insurance

� Blood donations

Industrial products are products purchased for further processing or for use in conducting a business

� Classified by the purpose for which the product is purchased

� Materials and parts

� Capital

� Supplies and services

Capital items are industrial products that aid in the buyer �s production or operations

Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users

Supplies and services include operating supplies, repair and maintenance items, and business services

Organizations, Persons, Places, and Ideas



Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers towar

organization

Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward parti

people

Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward partic places

Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals� behavior to

improve their well-being and that of society

Product and Service Decisions

Individual Product and Service Decisions

Product attributes are the benefits of the product or service� Quality

� Features

� Style and design

Product quality includes level and consistency

� Quality level is the level of quality that supports the product�s positioning

Product features are a competitive tool for differentiating a product from competitors� products

Product features are assessed based on the value to the customer versus the cost to the company

Style describes the appearance of the productDesign contributes to a product�s usefulness as well as to its looks

Brand is the name, term, sign, or design�or a combination of these�that identifies the maker or seller of a product or service

Packaging involves designing and producing the container or wrapper for a product

Labels identify the product or brand, describe attributes, and provide promotion

Product support services augment actual productsProduct Line DecisionsA product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer

groups, are marketed through the same types of outlets, or fall within given price ranges

Product line length is the number of items in the product line

� Line stretching

� Line filling

Product Mix Decisions

Product mix consists of all the products and items that a particular seller offers for sale

� Width

� Length

� Depth

� Consistency

Branding Strategy: Building Strong BrandsBrand represents the consumer �s perceptions and feelings about a product and its performance. It is the company�s promise to delive

specific set of features, benefits, services, and experiences consistently to the buyers

Brand PositioningBrand strategy decisions include:

� Product attributes

� Product benefits

� Product beliefs and values

Brand Name SelectionDesirable qualities

1. Suggest benefits and qualities

2. Easy to pronounce, recognize, and remember

3. Distinctive4. Extendable

5. Translatable for the global economy

6. Capable of registration and legal protection

Brand Sponsorship� Manufacturer �s brand

� Private brand

� Licensed brand

� Co-brand

Brand Development Strategies

Services Marketing

Types of Service Industries

� Government



� Private not-for-profit organizations

� Business services

Nature and Characteristics of a Service

Marketing Strategies for Service Firms

In addition to traditional marketing strategies, service firms often require additional strategies� Service-profit chain

� Internal marketing

� Interactive marketing

Service-profit chain links service firm profits with employee and customer satisfaction

� Internal service quality

� Satisfied and productive service employees� Greater service value

� Satisfied and loyal customers

� Healthy service profits and

Internal marketing means that the service firm must orient and motivate its customer contact employees and supporting service people towork as a team to provide customer satisfaction

Internal marketing must precede external marketing

Interactive marketing means that service quality depends heavily on the quality of the buyer �seller interaction during the service encou

� Service differentiation

� Service quality

� Service productivity

Managing service differentiation creates a competitive advantage from the offer, delivery, and image of the service

� Offer can include distinctive features

� Delivery can include more able and reliable customer contact people, environment, or process� Image can include symbols and branding

Managing service quality provides a competitive advantage by delivering consistently higher quality than its competitorsService quality always varies depending on interactions between employees and customers

Managing service productivity refers to the cost side of marketing strategies for service firms

� Employee recruiting, hiring, and training strategies

� Service quantity and quality strategies

___________END_________



I get a lot of searches for different industries looking for useful marketing ideas. One of the terms I see show up now

and again is Bank Marketing Ideas. I can’t help but wonder how fierce the competition in the banking industry is. The

whole banking system is set up cleverly to make a lot of money. That is, if you have customers.

Every bank needs a sign

Whoever implemented the first digital time / temperature sign at a bank was a genius. That person deserves a medal.

mean really, they do. Every day on the way to and from work you look to see the time and outdoor temperature. It jus

so happens you also see the name of the bank displaying the sign, reinforcing its brand recognition.

Although, displaying the time in military time (where the day starts at 00:00 and ends at 23:59) and the temperature

Celsius (most Americans don’t know what that is) would be a more unconventional marketing idea. That would cause

people to stop and think for a second. That would be reason enough for someone to talk about what they just saw. Th

effects might be minimal, but you never know. It would be fun to watch people drive by staring at the sign (with your

brand on it).

To go even further, why not put up a daily trivia question? Or a random daily fact. People might even drive by your ba

every day just to read the trivia question!

Free money

People love free money, almost as much as they love air. In Seth Godin’s book, Free Prizes, he told a bank advertising

manager to slip a few $100s into the ATM. People would talk then. Mission accomplished.

Imagine someone pulls up to the ATM at midnight on a Saturday on his way to the next watering hole and he requests

$40 and gets $120 instead. Would he go to the bar and promptly tell everyone? How much would you want to bet the

bar clears out and a mass of people start withdrawing from that machine? I am willing to bet that each $50-100 you p

in the pile to replace a $20 would be redeemed in the astronomical charges implemented at the only machine in town

dispensing cash at 4 a.m. on a Saturday.

Stop with the fees already

Banks charge way too many fees, for everything. In a room with 100 people in it, not one would suggest otherwise. Seyourself apart from the crowd and stop charging fees. Maybe you opt out of fees and opt into advertising services like

credit help, financial counseling or long-term planning and management of money. Perhaps you break all the rules and

say no one will ever be charged a fee so long as they accept advertisements about these great services you can offer

them.

What kind of marketing idea generator said its OK to add random fees to a bunch of different accounts and then

promptly remove them with no questions asked when a customer asks what they are for? I mean, if the person whose

job it is to dispense and receive monies can simply remove the fee on a whim, that fee should not be there. But I am

willing to bet that people are happy when those fees are removed and do not report the devious nature of the fee to

others. On the other hand, all of those people who don’t know how to check their accounts or balance checkbooks

simply get feed to death.

Please upgrade your website

If Mint.com can offer a free budgeting service and attract thousands of people by crunching numbers and displaying

them in charts, so can you. Mint.com makes money by referring people to credit card and mortgage companies. I wou

use a budgeting service if my bank offered it. A lot of the people who use my bank would too. Other people who don’t

use my bank would consider switching or opt in to the free service because of the reputable brand. The problem with

Mint.com is that it is not a Wells Fargo, US Bank or JP Morgan. Imagine how many people would be willing to give you

platform to help market other products and services to others. Remember it is always good to promote your

competition as long at it is on your terms.

Invest in the community

http://www.joshwhitford.com/2008/12/22/online-apartment-marketing-ideas/






If your bank supports a nonprofit or charity people can relate to, then you will have more customers just because peop

want to believe they are part of a good cause. People are emotional. Stories of helping others and photos of people in

need play to our emotions and we want to help. Not only that, but once something has reached our emotions, we

remember it. If your bank donates a percentage to schools, homeless shelters or dog rescue, potential customers will

remember you and maybe even switch to your banking services. And I mean really donate, not just donate a lump sum

and then spend twice as much telling everyone about it.

For example, how about using the save your change program to match donations to a school? Some banks have the

save your change program where if you spend $2.12 on something they round up to $3 and put the .88 in a savings

account for you. For every individual participant, save the change adds up to about $200-300 a year in savings. If my

bank offered to match that savings from my save the change participation and donate it all to a local school, animalshelter or whatever, I would probably do it, gladly. I can just picture schools rallying all the parents to switch banks an

sign up for your save the change and donate program.

Give out candy and dog treats

My girlfriend always talks about it whenever she goes through a drive-thru of any kind and the person at the window

gives her dog a treat. Her cat was even offered a treat once. Kids love to go to the bank with Mom and Dad if they get

piece of candy from the teller. Use this idea and expand on it because adults like free treats too. Maybe on Fridays,

everyone or selected people who use the drive-thru get a $5 gas card or a coupon for a free coffee. Or maybe they are

offered a special such as a savings account with no minimum balance or the interest waved from their credit card for

one month. Or maybe every single person who goes through the drive-thru gets a piece of Godiva chocolate no matte

what day it is. People like to be surprised for the better, not that they just incurred $300 in overdraft fees. Use your

imagination.

marketing-banking diploma examination

Documents