Sample Business Paper on advertising and public relations 1.

  1. Create advertising and public relations objectives that align to each one of the bank’s strategic goals. Be sure to use the specific, measurable, achievable, relevant, and time-bound (SMART) methodology.

The bank is a small local bank which covers limited area, audience and portfolio. Currently, there are large number of financial institute providing vast range of banking products and services. This bank enjoys no competitive advantage in the market. It is important to run new marketing plans to create relationship, loyalty, market place, brand reputation and recognition. For this purpose, STEEPLE and SWOT analysis is conducted to assess the environment, so that marketing strategy plan and objectives can be made (Armstrong. 1996).

STEEPLE analysis with regard to banking industry conveys:

  • Social factors: corporate social responsibility , increase in demands of insurance and investment products
  • Technological factors : Online banking and electronic instrument
  • Economic factors: low interest rates and high premium rates
  • Environmental factors: people demands products and service which have positive impact on environment.
  • Political factors : Easy loan, consumer finance and grants
  • Legal factors : Compliance with rules and regulations
  • Ethical factors : whistle blowing,  diversity with difference in age and gender gap

SWOT analysis was conducted to know the status of the bank, which tells

Strength:

·       Strong relationship with existing customers

·       promising customers

·       Original and effective Products

·       Enthusiastic Employees

Weakness

·       Limited Financial portfolio

·       Low value customer

·       Small number of branches and products

·       Increasing cost

Opportunities

·       Promising Customers

·       Low Government involvement

·       Offering demanding rates

·       Tax exemption

 

Threats

·       No competitive advantages

·       Banking regulations

·       High risk investment

According to analysis, the following advertising and public relations objectives should be achieved (Boulding et al, 1994) :

Advertising Objectives:

  • TV commercials (Displaying the solutions of customer needs)
  • Poster Campaign (all features, products specifications, benefits etc)
  • Public relations
  • Creating press and media relations
  • Broachers, informative ads in newspaper

Public Relations Objectives:

  • Promotional Campaigns
  • Establishing banks outlets in different commercial areas
  • Email marketing
  • Publications: Magazines and Newspaper
  • Conducting learning and awareness seminars
  • Cross selling
  • Follow up and meeting with customers
  • Research survey on customer’s problems, needs and queries.

Target market :

The bank targeted all type of customers (students, trust, housewives, business, partners etc) with almost all age groups (10-85 year ago).

Market segmentation:

Market segmentation is dividing the market into groups of customers (Kotler, 2009). Following are market segmentation made for this bank:

  • Non-customers
    • Clients of other financial institute
    • Younger Clients like students, small vendors and housewives
  • Low-value customers
    • Low income or limited financial demands
    • Business spread over several banks
  • Medium-value customers
    • Most business with one bank
    • Investments or saving plans over numerous banks
  • High-value customers
    • Sole proprietors, partners, Trusts, NGOs
    • Politically exposed parties and increased risk parties
  • Existing Clients
    • Inactive
    • Closed or dormant accounts

Methodology:

The objective is made keeping in mind SMART methodology:

  • Specific
      • Bringing and entertaining at least ten customers daily
      • Selling 2-5 investment and saving products in a week
  • Measurable
      • Checking and evaluation of numbers of customers and product on daily basis
      • Keeping record and analysis of all transaction more than 100k(weekly basis) & 500k (daily basis)
  • Achievable
      • Maintain relations with more than 100 customers of low income
      • Established relationship with customers high value customers holding account worth more than 1 million
      • Promoting Customers to save and invest the money in asset management
  • Realistic
      • Daily 15 Cross calling and 10 customer call meeting
  • Time-bound
      • The overall balance and portfolio of a month should be 4 million(CASA), 2 million( CF), 2 million(TT) and 2million( Investment and insurance plans)
  1. Demonstrate how each objective aligns directly to an organizational goal.

It is very important that marketing strategy objectives should be aligns directly to banks long term goals as it contribute to bank’s mission and objectives. SMART methodology is used in achieving marketing objectives which is attainable and measureable (Kotler and Armstrong, 2010). The following marketing mix is developed according to available resources:

Product – Specific or particular feature of product that is value added and fulfils needs of clients

      • E-statement and Online transaction
      • Easy Fund transfer
      • SMS alerts

Pricing –   Set the price with keeping in mind the profit margin, survival, market value and trends and social considerations. Keep flexibility in offering price, as some high value customer give large portfolio on having low price.

        • Credit Card fee discounts
        • Consulting fees
        • Filler & Non filler tax rates advantage

Place – The selling techniques and distribution channels.

        • Website & Publications
        • Online help Center
        • More branches in commercial areas
        • Internet Banking

Promotion –   Communication and interaction with customer

        • Outdoor Advertising
        • Exhibition and seminars
        • Prize bonds and gifts

People –   The operational, administrative, regulators and service staff

        • Trained Staff and commissions
        • Educated and Professionals
        • Brokers

Processes –   In banks there are number of processes, the efficient and effective process assists in winning the confidence and satisfaction level of customer. Different processes are:

        • Risk Management
        • Product development
        • Account opening Process
        • Audit and Compliance

Physical evidence –   The appearance of bank, its staff even the format of paper and receipt also matters, and so much attention is given on following items to impress the customer.

          • ATM machines, Broachers
          • Branches & Posters
          • E-form

There is flexibility in these objectives for modification to properly responds to changing environment. These objectives are consistent and support the organizational goals.

  1. Discuss the importance of using specific objectives to meet the organizational goals from measurement, accountability, and return on investment perspectives.

All the arrangements and strategies should be implemented to achieve the specific objectives set in marketing strategy plan (Laura & Cousins, 1990). As the Bank have organizational goals:

  • Increase in Profitability & portfolio ratio
  • Increase in ROI
  • Developing Competitive advantage
  • New target Markets

These organizational goals are totally dependent on specific objective.

Measurement Perspective:

The above specific goals help in measuring the growth, profitability and performance of the bank. The attainment of 7Ps helps in making place in new target market and segmentation, which ultimately results in balanced portfolio of product/service, reduced costs and high returns. Moreover the SWOT and Steeple analysis describe the condition (internal and external), accordingly the effort on market segmentation can be done.

Accountability perspective:

The plan should be review, control and monitor with time to ensure that outcomes are up to the expectation or not, the basic goals are achieved or there is progress in achieving them. For this purpose, valid and reliable measures should be adopted by experts or professionals. The competitive and reasonable prices help in establishing strong relationship with customers, which helps in attaining the competitive marketplace.

Return on Investment Perspective

The implementation and evaluation of market segmentation increase the portfolio, reduce the cost, and increase the profit maximization chances and profit margins. Also these specific goals indentify the high value customer who can invest their money, such money further utilized in net working capital. The increased range of customers, their investment helps in achieving the market share and brand recognition as well.

REFERENCE:

  • Armstrong, M. (1996) ” Management Processes and Functions”, ISBN 0-85292-438-0
  • Boulding, W., Lee, E. & Staelin, R. (1994) ‘Mastering the mix: Do advertising, promotion, and sales force activities lead to differentiation?’ Journal of Marketing Research (JMR), 31, 2, pp. 159-172, EBSCOhost [Online]. Available from: http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=9411112937&site=eds-live&scope=site (Accessed: 9 July 2011).
  • Cousins, Laura. (1990). “Marketing Planning in the Public and Non-profit Sectors”, European Journal of Marketing, Volume 24, Number 7, 1990, pp. 15-30(16)
  • Kotler, P. & Armstrong, G. (2010) Principles of Marketing. 13th (Global) ed. Boston: Pearson Education, Inc.
  • Kotler, P., & Keller, K. L. (2009). Marketing management. Upper Saddle River, N.J: Pearson Prentice Hall.