Banks should also try to come up with strategies that are directly related to how customers know their products and how the products solve their needs. Customer understanding is vital because a good strategy is that which is related to the improvement of bank products, whether asset products like loans or liability products where customers entrust their money to the banks. This means banks should come up with strategies aimed at particular target customers. This type of strategy is persuasive in that it explains to customers why they should take particular products.
Banks can also pick on the behavior based segmentation strategy and this involves looking at past and present relationship of the customer and the bank. Banks should look at how long a client has been in the bank. Has the client been on and off-has he ever left the bank for another bank and back? They should also look at the value of customers in terms of how much money the customer has in the bank or how much he has borrowed or he is willing to borrow. Segmentation of clients is important in banks because customers are given a bundle of benefits that have been used. Geographic-where the banks take into account the geographical boundaries and this majorly assists the bank in staffing and opening of new branches and also to assess market potential. They have also been using psychographic segmentation that deals with customer lifestyle, tastes and preferences, why customer want a particular product instead of the other.
The demographic segmentation deals with dividing customers according to age, stage in life cycle etc. and it helps banks to design production for all types of people depending on their age, income, etc.
Apart from the behavior based segments, the bank can also adopt segmentation, depending on what the bank wants and not what customers want, banks have different value propositions that it wishes to give customers hence it will segment its products according to its value propositions and as customers take them they automatically fall to segments. The banks have three major objectives and these are get deposits and minimize the cost of funds producing quality credit balances at maximum spread income and to generate free income and reduce services expenses. This leads to the following four segments. There are those people who want to invest others want to borrow, others want convenience and on others are fast limited customers. These segments can be used as a basis for the bank to develop long-term strategies, to attract customers to the different segments.
As much as strategies are good, bank should avoid using one strategy for all products or marketing applications effective segments or marketing applications effective segments. A strategy will vary according to what are the marketing objectives. In the case of attracting new customers who have no history with the bank. The bank will come up with a wedge product strategy where they give customers of other banks a chance to sample some of its products or services for the time being and this will enable them to cross-sell more profitable products to them and create a long lasting relationship with them. This is done by direct marketing for example they can send letters to customers requesting them to try products or phone calls.
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Frequently Asked Questions
Why is ad sense retiring? profit decreases or privacy issues?
By: Rick Marengo AXLR8 | 27-07-2008
Is that why the adsense stuff disappered suddenly from the right hand side of my gmail? Were there privacy issues or did that play a part?
Response to: The Golden Age of Digital Marketing - 23 July 2008
By: Ray | 25-07-2008
89N The Golden Age of Digital Marketing - 23 July 2008
It was with much interest that I read the report on the Netimperative Directors? Dinner discussing the golden age of digital marketing.
I completely agree that the marketing profession faces many challenges in its ambition to be taken seriously at the highest levels of business. As the various speakers highlighted, one of the key challenges is the perception of what marketing is.
Recent research carried out for The Chartered Institute of Marketing by Ipsos MORI revealed that 73 per cent of working marketers surveyed believed there was a large gap between the reality of what marketing does and how it is seen by other parts of the business.
Until marketing is recognised as a key driver of value in organisations, it will struggle to gain the respect of other professional business colleagues. However, marketing must earn that respect.
As highlighted by several speakers, marketers must reach out to colleagues in other functions and those at a senior level, and communicate clearly with them the value they create for the organisation, in terms they understand ? which in boardrooms is predominantly financial.
The Institute continues to promote the profession and attempt to change attitudes towards marketing in the wider business community. It has established links with various government departments to promote professional marketing, and has developed professional marketing standards that employers can benchmark their employees against.
The drive towards proper recognition and respect for the vital role marketing has to play in today?s organisations has to start with greater accountability and clearly demonstrating the value marketers create.
I am in no doubt that digital marketing, with its greater measurability, will be in the vanguard of marketers? increasing acceptance at the top table.
Ray Jones
The Chartered Institute of Marketing
25 July 2008
Small Scale Affiliate Marketing
By: Shikina | 22-07-2008
I'm looking to establish a direct affiliate relationship between myself (the affiliate) and one specific retailer that I deal with regularly. They're not looking for any other affiliates other than myself, but I need this to be a software-based solution. Anybody know of any generic code out there that I could modify and pass off to the partner? Are there any other solutions that don't involve paying huge upfront costs, or a recurring commission to a 3rd party network? Your help is greatly appreciated!
Why japanese firms tend to be so competitive
By: merry thu | 20-07-2008
why japanese firms tend to be so competitive
Solicitation of family and immediate friends
By: Marilyn | 18-07-2008
I belong to an MLM compnay who told me that we can not solicite immediate downline people into another network markeing company we are involved with.
The products are non completing although they fall under supplements. They have different purposes. The first company limts us from doing any solicitiations with family and friends that we have brought in to their company into another company.
Someone told me that there is a law recently passed that makes this illegal.
My company has had an inquiry from All Star ...
By: gwetter | 17-07-2008
My company has had an inquiry from All Star marketing group in Hawthorne NY. I have been unable to find the names of the principles of that company
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