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Assignment/Project Front Sheet

CIM/CAM Membership
Number
Unit Title

14513981
Stakeholder Marketing

Level/Award

Professional Certificate in Marketing

Accredited Study Centre

University of Malawi - MDC

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14513981
CENTER NAME :

UNIVERCITY OF MALAWI (MDC)

SESSION :

DECEMBER 2012

MODULE NAME :

STAKEHOLDER MARKETING

MEMBERSHIP NUMBER :

WORD COUNT :

14513981

4116

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' I CONFIRM THAT IN FORWARDING THIS ASSESSMENT
FOR MARKING,I
UNDERSTAND AND HAVE APPLIED THE
CIM POLICIES RELATING TO
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COUNT,PLAGIARISM AND COLLUSION FOR ALL TASKS. THIS
ASSESSMENT IS THE RESULT OF MY OWN INDEPENDENT WORK EXCEPT
WHERE OTHERWISE STATED. OTHER SOURCES ARE
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THE BODY OF THE TEXT,A
BIBLIOGRAPHY HAS BEEN APPENDED AND
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THE REGULATIONS.'

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TASK ONE
SUMMARY OF AUDIT FINDINGS
An audit was carried out on the bank in order to identify its three key customer
groups, their current relationship, and how it uses the extended marketing mix to
meet their needs. (Appendix 2)
A number of different methodologies were used to carry out the audit, they included
personal interviews and perusal of organizational literature (Annual report and
financial results).The key customer groups identified were;
a) Telecommunications
b) Diplomatic Missions
c) Local Corporates
To come up with the key customer groups Corporate strategies indicators of power
(Johnson and Scholes, 2007) and Mendelows power/interest matrix were used.
(Appendix 2,Table A1.1 Identified customer groups in the bank)
Sector A, comprised of customer group with low levels of interest and power to
influence the banks goals or decisions for this group the bank's strategy is monitor
with minimal effort. Sector B, comprised of customer group with high interest and
low influence, the bank's strategy for this group is consultation and keeping them
informed. Sector C, comprised of customer group with low interest and high
influence, the bank's strategy here is to keep them satisfied. Sector D, comprised of
customer group with both high level of interest and high level of influence/power.
These are its key players, the bank's strategy for this group is high priority
relationship management and communication).(Appendix 2, Table A1.2 Customer
group levels of influence/interest matrix positioning explained).

All the three customer groups identified have a customer relationship with the
bank. The three key customer groups high level interest in the bank lie in (including
but not limited to); the banks products and services, competitive bank charges,
quality customer service, timely resolution of queries, good deposit rates, efficient
and effective funds transfers. On the part of their high level of influence/power they
possess this status through; large deposits, offer similar products/services and they
make up a significant portion of the banks three major seg\
ments namely;
1. Personal and Business banking
2. Corporate and Investment banking
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3. Insurance and assessment banking
The banks main objective is to be customer centric, above all else. The extended
marketing mix is used to achieve customer centricity and customer retention. A
brief overview of each of the 7Ps and how the bank uses each to meet its key
customer groups:

Product.
The banks aim is to provide customized high quality products/services according to
different customer groups, to ensure customer retention and promote brand loyalty.
Its products include loans, deposits, mobile banking etc.
Price.
The bank's prices are competitive where its key customers are concerned. It
practices price discrimination where different customer groups are concerned. The
banks prices reflect quality of its product/services.
Place.
The banks aims at making its products/services readily available by opening more
service centers (branches) and ensure availability of self-service channels e.g.
electronic banking. It takes into account its customers profiles.
Promotion.
The banks promotions aim at differentiating its services from those similar services
offered by its competitors. Its adverts target both new (prospects) customers and
existing customers. Adverting, personal selling, and public relations are its key tools
where promotion is concerned.
People.
All the banks service delivery personnel including directors possess relevant
qualification and follow a code of ethics to ensure excellent customer service in
order to meet customers' needs and achieve the banks goals effectively, efficiently
and profitably.
Process.
To provide an element of consistency to service delivery the bank provides routine,
standardized customer services, through the use of such things as standardized
customer forms and provision of services scripts and greeting phrases to be used by
our staff . It also comply with relevant policy, legislations and regulations.
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Physical evidence.
To remove the intangibility aspect and increase customer experience, more service
centers are being opened. The bank also uses its brand logo on all organizational
literature, documents and website.

The bank's main aim is customer centricity, customer retention and having brand
loyal customers to increase brand profitability. It also aims at moving forward. This
is achieved through the effective use of the extended marketing mix outlined
above.
TASK TWO

To:

Marketing Manager

From:

Marketing Assistant

Date:

15th October, 2012.

Subject:

APPLICATION OF SERVICE MARKETING PRINCIPLES

This report aims at explaining the generally accepted characteristics of services


and how their understanding will help better understand of the bank's customer
needs. It will also evaluate the banks current relationship with the three key
customer groups namely ;Telecoms, Diplomatic Missions and Local Corporates.
A service is an intangible product and its characteristics include intangibility,
inseparability, perishability, heterogeneity and non-ownership.
A brief outline of each of the above characteristics of a service;
i.

Intangibility ( Lack of physical aspects).


In order for the bank remove the intangibility aspect it needs to ensure that
evidence of the service provided is offered to the customer. Evidence of
tangibility can be provided for in the form of account numbers, bank statements,
deposit/withdrawal slips or cheque books. All documents have the banks brand
logo.

ii.

Inseparability ( Service production, delivery and consumption is simultaneous,


while a product can be produced in one location and consumed in another).
This characteristic aims at looking at who is delivering the service to the
customers as that will determine how the customer consumes and rates the
service. There is need to instill value of quality, reliability and customer focus in
the staff delivering the service. This means training staff to develop their full
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potential and make sure that they possess the relevant skill, knowledge and
experience so that they are able to deliver excellent service.
iii.

Heterogeneity ( Lack of Constancy).


Service delivery cannot be consistent however inconsistence in the delivery of
services should be kept to a minimal. This can be achieved through the use of
standardized services delivery systems e.g. preprinted deposit/withdrawal slips
where the customers fills in the gaps. Staff training is important to make sure
the bank's staff is competent in the knowledge and delivery of services.

iv.

Perish ability ( Cannot be stored for later consumption).


In the case of a bank this characteristic does not apply. However with the
change in technology this characteristic is debatable since nowadays customers
can consume the banks services at their own time with the help or use of
electronic banking i.e. internet banking and interactive websites.

v.

Non- ownership ( Lacks transfer of ownership/property).


Promoting the advantages of non-ownership would improve the bank's services e.g.
offering low loan repayment rates for specified periods or hedged interest rates to
customers of a certain customer group. An example of segment targeting would be
with the Telecommunications customer group which has experienced a
substantial growth in the emerging market, primarily fuelled by the mobile
telecommunications sector. The bank finances this customer group from start-up to
maturity, as a provision of ownership status. Ownership evidence may also be
provided for in the form of account numbers and bank statements.

As earlier outlined in the audit that the bank has a customer relationship with its
three key customer groups. Customer satisfaction is the ultimate goal for the
banking industry to be able to bring in more and more customer into its fold.
Customer centricity is the banks strategic focus. We should believe that the key to
understanding customer needs and requirement is strong customer interaction. We
should try as much as possible to incorporate customer opinions in the bank's
decisions and activities. We should provide a Charter which not only explains our
bank commitment and responsibilities but also specifies the obligation on the part
of customer-bank relationship.

To achieve the provision of a quality service in our service centers in trying to


maintain the customer relationship the bank follows the following practices:

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Excellent customer services.

Quick resolution of customer queries.

Good deposits rate for excess funds deposited.

Relationship banking (a connection between a bank and a customer, which


goes beyond financial transactions) e.g. safe deposit box.

Timely information of funds transfer and statements.

Ensure safe custody of customer personal information.

Provide clear instruction for services.

Pay interest due on time.

Ensure availability of self-services channels such as internet banking and


phone banking.

The bank is able to achieve a customer relationship using the practices (strategies)
mentioned above. Looking at how our organization is progressing, it would seem
that we are doing a great job where customer relationship is involved. However
there is always room for improvement. The strategies mentioned above aim at
achieving customer centricity alone. However customer interaction needs to be
reinforced as it is a critical aspect when it comes to customer retention. Customer
retention is cheaper as opposed to attracting/winning new customers.

RECOMMENDATIONS
Customer relationship marketing recognizes that it is not enough to attract
customers. The aim of customer relationship is to convert customers into brand
loyalists. It is important to identify, attract, defend and strengthen brand loyalty.
Loyalty is key ingredient of brand equity and to the brand future marketing
profitability. Core customers are key target. Advertising is to affirm and reinforce
its core customers existing convictions about the brand. (John G. Sanchez .(2000)
Customer Relationship Marketing).

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In view of the above we need to consider the following;
I.

Reinforce customer interaction

Constant interaction between brand use and marketing helps to reinforce attitude
leading to increased brand loyalty. It is imperative that we should maintain a strong
interaction with our customers in order to achieve brand loyalty. We can do this
through the use of adverting strategies like direct mail or direct email, more often.
The bank's interactive websites should be able provide us with customer opinion
and goals which we later need to integrate in our decision making and goals.
II.

Nurture and defend customers

We should identify, attract, nurture, defend, develop and strengthen the right
customers, in order to increase branding loyalty.
Earlier in the audit we managed to identify the three key customer groups. It is not
enough to identify customers groups alone, we should move them up the loyalty
ladder. Advocates will bring us more customers(through word of mouth) and will
also increase brand loyalty. Evidence shows that increase in brand loyalty result in
increased brand profitability.
III.

Advertising and promotional targets

Brand messages should be on how special the brand is and not how cheap. Loyal
brand customers will not buy because its cheap, however prospects will. We need
to be moving our customers up the loyalty ladder as mentioned earlier, so that
they become brand loyal not price sensitive. Customer retention builds customer
brand loyalty. Advertising and Promotion should focus on quality differentiation not
price differentiation, so as to appeal to our existing customers. However we need
new customers to grow and as pointed out earlier on the fact that prospects are
price sensitive, it is important that our adverts and promotions are properly
balanced to achieve both goals i.e. bring in new customers for growth and retain
existing customers for increased brand profitability. Allocating too much of the
marketing mix to price promotion can build sales while hurting brand loyalty.
IV.

Customer relationship marketing development

Through talent management we should reward those employees that are clever
enough and also effective enough to increase market share and brand loyalty. We
should have strategies that rely on internal development and assessment of staff,
in order to build and strengthen the bank's future talent pool. We should introduce
a talent management department.

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V.

Introduce our own Wi-Fi hotspots

Make available Wi-Fi hotspots that would enable registered customers to freely
access and use the banks electronic banking facilities whilst on the move i.e.
interactive websites, mobile banking, telephone banking and internet banking. This
would reduce the lead time on queries, and improve service delivery efficiency.
Customer relationship marketing is all about winning customers and keeping them
loyal to our brand, which is an ongoing process requiring effort and commitment.
Service branding cant compete on price, as cheaper service provided is deemed of
inferior quality. This would hurt the banks reputation and brand. Customer
interaction is key in achieving good customer relationship and customer retention.

Marketing Assistant.

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TASK THREE
Date:

15th October, 2012

Prepared by:

Marketing Manager

Discussion Paper on:

INTRODUCING AND/OR IMPROVING SERVICES MARKETING

Audience:

Management Team

Purpose
This discussion paper attempts to present in a natural and objective way the issues
that have emerged in the bank's marketing audit concerning our three key
customer groups(Telecommunications, Diplomatic missions, and Local Corporates)
and the current use of the extended marketing mix in meeting the needs of each
key customer group. It will also attempt to make recommendations for discussion
on how all the 7Ps of the marketing mix can be used to improve the current
customer relationship with Telecommunications. Finally this discussion paper will
evaluate the various approaches we can adopt when establishing the budget
recommendations relating to marketing promotional activities.
Background
This discussion paper we will focus on how we use the extended marketing mix to
meet the needs of our key customer groups. It will presents points that need to be
considered and debated with a view to introduce and/ or improve existing services
marketing. We will look at each of the seven Ps to evaluate the current use with the
three key customer groups identified in the audit(Appendix 2.9). The extended
marketing mix to be discussed on this discussion paper are outlined below:
All comments may be the forwarded to the following email address ;
mmnger@sdtbnkmw.net not later than 29th October,2012.

1. Product
Services are intangible, heterogeneous and perishable, also service production and
consumption occurs at the same time. Customization comes into play for different
customer groups to remedy these service characteristics.
From the audit findings products/services offered are customers centric in a way
that they are customer tailored in terms of segment or customer group needs and
requirements. Telecommunications being one of the fastest growing markets,
primarily fuelled by the mobile telecommunications sector. This group is offered
finance from start up to maturity across the entire spectrum of capital required,
providing innovative and flexible financing solutions customized to client's unique
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requirement, i.e. customizable products per customer group requirements. For
Diplomatic Missions products and services offered include hedged interest rates on
foreign exchange and finally for Local corporate, acquisition and merger financing is
offered.
To what extent should or can products be customized? Let us not forget that too
much customization will affect the service standards or desired delivery of the
service. This would have an adverse effect on the intended quality.
2. Price
It is not an easy task to price a service, however prices offered to out key customer
groups that takes into account competition, costs and marketing objectives. As
previously noted in the audit, the bank practices price discrimination for all our key
customer groups i.e. to say we offer different prices for the same product/services
to different customer groups as we do with our product/services i.e. product
customization.
Note that there is an element of mark up for an adequate profit margin in all our
prices for our profitability. Prices offered are completive rather than cheap to retain
brand logo quality and existing customers. The banks uses various promotions to
attract new customers and retain existing customers.
3. Place
Services tend to be consumed as they are produced. This characteristic makes
location and means of service delivery very important. Service centers are being
opened in different locations across the country. The criteria of opening these new
service centers need to be outlined clearly.
The distribution channels currently in use has been designed to enable service
delivery to fit customer profiles. For the three key customer groups they include
electronic channels, physicals branches and outlet structures. We should take into
account our customer needs in geographic distribution, pricing and accessibility.
4. Promotion
Services are easily replicated requiring the use of promotions to differentiate
services in the mind of customer. Advertising is one way of attracting customers in
a segment where service providers have identical offering. Our promotions are
aimed at increasing use of service, introducing new service, support personal
selling, emphasizing a service benefit and quality, and service differentiation.
Our Adverts target both new (prospects) customers and existing customers.
Advocates bring in new business (customers) through word of mouth. However we
should also to attract new customer since they are the ones responsible for our
growth. We should balance the two i.e. attracting new customers and retaining
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existing customer through effective and efficient promotion strategies. On
promotion for key customer groups we should use adverts, personal selling, public
relations, and sponsorship.

5. People
People or employees are a defining factor in a services delivery process, since
services are inseparable from the person providing it. Staff training is at the heart of
Standard Bank to ensure the provision of good quality service effectively and
efficiently. All directors and staff posses the skills, knowledge and experience
(domestic and international) to fulfill the banks obligations and satisfy our key
customer needs.
6. Process
It is impossible for services to be delivered exactly the same as before i.e.
Heterogeneity (Lack of Constance).For all the key customer groups we have
standardized our services delivery process by using the following means; the use of
standardized customer forms, interactive website, provision of services scripts and
greeting phrases to be used by our staff. Relationship management is also key in
the service delivery system with all the key customer groups.
7. Physical evidence
To enhance customer experience we should strive to incorporate certain tangible
elements into our services. For our key customers we provide comfortable waiting
areas with sofas, reading magazines, and company literature. Account numbers are
also provided for to all customers, and all business documents carry a brand logo.
RECOMMENDATIONS
Focusing on one of our key customer group namely Telecommunications, I would
like to suggest recommendations for purposes of this discussion paper on how the
extended marketing mix could be used to improve the current customer
relationship. However for this discussion paper not all the Ps have been
recommended for improving. Please note that comments are invited on all the
seven P's not only the ones outlined below.
On physical evidence: We should provide more service centers countrywide to
ensure availability of services in all locations of Malawi regardless of geographic
restrictions. This would be made possible with the use of electronic banking which is
increasingly being needed by our customers for convenience purposes.
Telecommunications provides the link between us as a banks and key customer
group through the provision of mobile communication systems.Technology is not
always reliable due to telephone or mobile system faults, this is where having
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printed bronchus and business cards would help established place or channel of
distribution, as they would act as a back up to the Telecommunications customer
group. This would improve and maintain our customer relationship.
On People: We sholud introduce on-line help desk and a blog (a blog is a
discussion or information site published on the world wide web and consists of
distinct posts consisting of discrete entries displayed in reverse chronological order
i.e. from most recent post to older post)to address customer queries real time or
downloadable list of frequently asked questions, for customers to access free of
charge. This would cut down the lead time on query responses. Customers need a
fast services delivery always. We should also introduce talent management
department, so that they are able to monitor and appraise staff performance and
talents. Rewards should be offered to talented staff as an incentive to boost morale.
The talent management department would be responsible for providing incentives
like seminars, special gifts, premiums and contests to staff for motivation purposes.
On Promotion: E-mailing is one best way of maintain a relationship. Consistence
and relevance is important where e-mails are concerned. Emails need to contain
relevant information otherwise they would appear as a waste of time to customers.
Such e -mails could be those that alert customers on account transactions, new
services being offered, and new achievements. More direct marketing, mainly
direct emails to key customer should be used.
With the increase in the Telecommunications industry mainly the mobile sector, we
also need to introduce sms-alerts on deposits and withdrawals, and mobile balance
inquirers. This will improve our customer relationship with Telecommunications
customer group as they provide the means through the provision of mobile network.
Adverts should be more educative, promote brand awareness and provide
information about bank activities, achievement, and future development.
We should remember that sponsorship gets you noticed and should be considered
more often as a promotional tool to increase brand awareness. Sponsorship also
provide a platform for us to engage with our customers. Sponsorships are a
valuable part of our banks social responsibility and marketing communication
strategies. We should concentrate on sports, mainly football, with the aim of
fighting poverty in Malawi. The sponsorship title could read 'Standard Bank Ltd
Malawi fighting poverty through football'.
On Place: The introduction of mobile banking(Van) would improve customer
relationship as this will mean delivering services to the customer door steps .This
will mean that more customers will have access to services like ATM(Auto Teller
Machines),POS(Point of Sale),which use the mobile technology system to function.
The introduction of mobile banking would mean increasing the mobile sectors
network coverage to ensure that the services offered by the bank reach customers
in all parts of the country. The customer relationship between Telecommunications
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and banks would in turn be improved. Areas where such improvements will be
apparent in the relationship will include product/service, price, and process.
On product: We should maintain the strategy of customizing according or
depending on changes to a particular segment to improve the relationship with the
customer. Product/service customization should remain customer centric.
On price: We should also maintain our strategy of being competitive and continue
price discrimination to maintain the brand reputation in turn improving customer
relationship with existing customers.
On process: We should also maintain our strategy of service delivery
customization and standardized products/services. As these provide an element
consistency in service delivery process, and this ensures that customers are aware
of how, where, and when the services will be delivered. This reduces time for
queries and improves understanding, in turn the customer relationship is
maintained and improved.

VARIOUSE APPROACHES FOR CALCULATING BUDGET FOR MARKETING


PROMOTIONAL ACTIVITIES
There are number of way used to calculate marketing promotional activity where a
bank is concerned. Banks typing spend between 50% and 60% of their total
marketing budgets on advertising .( Mary Ann Pezzullo ,(1998). Marketing Finance
Services, Adverting Budget).
As a bank we use the following methods outlined below to determine how much
money we will spend on proportional activities:(CIM, Communicating with
stakeholder ,Managing the communication budget p175-6)

Competitive parity method

Incremental method

Objective and task method

Percentage of sales method

Competitive parity method


This methods involves matching what your competitors are spending on
promotional activities, and you simply follow their lead. The drawbacks of this
method include the fact that it is difficult if not impossible to determine another
organizations exact amount of money used for promotional activities. There are also
other variation involved when determining a budget. Such variations include size

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,type of media used and timing of campaigns. we can only use this method as a
basis to come up with proper budgeting method for our bank.
Incremental method
This method involves increasing the promotional activities budget by a certain
percentage each year. The percentage may take into account the rate of inflation.
This method however does not take into account the desired objective of the
organizations promotional activities or the most effective ways to attain them.
Percentage of sale method
This is the method we use most as it relates to revenue level and is considered
safe. The point of reference may be based on a percentage of previous years sales
or next years anticipated sales or a combination of both.
The drawbacks of percentage of sale method include:

Difficult to determine the percentage of sales to use

It violates a basic marketing principle which states that "Marketing activities


are supposed to stimulate demand and thus sales, marketing activities arent
supported to occur as a result of sales".(CIM, Communicating with
stakeholder ,Managing the communication budget p176)

Objective and task method


This method is the most professional and rational method for arriving at an
advertising budget despite its drawbacks. It help set the direction and increases the
value of the banks advertising expenditure. This method bases its advertising
budget on what it will cost to meet the marketing objectives defined. The budgeted
cost is then weighed against the expected net benefit of the new business to ensure
that the cost of advertising will not reduce the profit margin on the newly acquired
deposits or loans beyond accepted limits ( Mary Ann Pezzullo ibid)
This method works for specific promotions with immediate measurable results,
however it cannot be used to determine the level of advertising necessary to build
awareness for the bank and to develop and maintain our image. If promotional
activities wait for specific promotion to communicate, then an organization may find
that it is out of media for a considerable period of time. There is need them for
some maintenance level of advertising either product or institutional, simply to keep
the banks name in front of its public.

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Appendix 1: Company Brief


STANDARD BANK LIMITED, MALAWI.
1.1 Overview
Standard Bank Malawi (here in after referred to as the bank ) the leading
commercial bank is one of 19 African banks owned by the Standard Bank Group.
Formed in 1862, the Standard bank Group is also represented in a further 21
countries outside Africa, including the major financial centers around the globe and
many emerging markets. As such, the bank is a member of the largest banking
network on the African continent.
The bank, formerly Commercial Bank of Malawi, commenced operations in 1971.
The shareholding structure of the bank has changed over the years and in
December 2001 Standard Bank group, through its subsidiary Standard Bank Africa
Holdings, acquired a 60.18% interest in the bank and became the majority
shareholder.
1.2 Focus Industry Groups
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-Public Sector

- Automotive

-Agro-chemical

- Financial Intuitions

-Food & Beverages

- Telecommunications

-Local Corporates
Organizations (NGOs)

- Diplomatic Missions

- Non-Govt.

1.3 About Standard Bank Malawi


The bank has 25 Branches and Service Centers across the country, 56 Automated
Telling Machines (ATMs) and has a staff complement of just over 650. The bank's
branches are all electronically interconnected, allowing them to provide services on
a real-time online basis. The Bank is also interconnected to all other banks through
the Electronic Clearing House.
The business of the bank is divided into three main units (segments), namely:
a) Personal and Business Banking
Banking and other financial services to individual customers and small-to-mediumsize enterprises.
b) Corporate and Investment Banking
Corporate and investment banking services to large corporates, financial
institutions and international counterparties.
c) Investment Management and Life Insurance
Life insurance and worth management activities by group companies Liberty life
and Stanlib.

1.4 TheBank's key competitors include the following;

- National Bank of Malawi - First Merchant Bank

- Malawi Savings Bank

- New Building Society

1.5 Code of Ethics


The bank has a large and diverse business. In order to drive its growth cohesively it
has agreed on a number of common guidelines, including its Code of Ethics. Its
Code of Ethics provides it with more details about how its values apply in the
workplace, including guidance on the application of the code of ethics in specific
situations.
1.6 Organogram
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1.7 Vision and Values

Grow, develop and recognize its people


Ensure its values live and grow within the organization

Promote a nimble and proactive approach to its customers

Deliver superior returns and sustainable growth for shareholders

Ensure that three core units work together and maximize on the synergies

Aims at building a strong and unified brand

Constantly balance risk and return and also ensure appropriate corporate
governance

Create a world class infrastructure, with the emphasis on cost efficiency

1.8 Corporate Social Responsibility


The bank strive to be a responsible corporate citizen and sees close relationship
with Government and communities as essential contribution to mutual prosperity.
Its social development programs have become more progressive over the years. It
address a variety of social needs, with the Government of Malawi, NonGovernmental Organizations and Community Organizations.
1.9 Mission Statement
The bank aspires to be a leading emerging market financial services organization.
PREPARATORY WORK
Appendix 2: Customer Group Audit
2.1 Audit Methodology
An audit of standard Bank Malawi was carried out using the following
methodologies.
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Personal interview with the executive and senior management.

Review of the Banks Annual and Financial reports.

Browsing the banks website.

2.3 Customer Group/sector Identification


A number of customer groups were identified during the audit. The bank has a
diverse interest in all its customer groups because they present different
opportunities. Below is a list of all customer groups identified.
2.4 Customer Groups
-

Public sector

-Automotive

Agro-chemical

Food & beverage

Local corporate

NGOs ( non-governmental organization)

-Financial institutions
-Telecom
-Diplomatic missions

2.5 Power and interest Assessment


During the audit an assessment was conducted to identify customer group with high
and low influence and interest on Standard Bank Malawi relationship marketing,
using a checklist of their indicators of power (Johnson and Scholes, 2007 Corporate strategy)
Customer groups were evaluated on the dimensions : status(how fast the bank acts
on their request),resource dependence(percentage of equity stakes, credit volume
buying or purchasing volume),negotiating arrangements(hedged interest rates
offered),involvement in strategy formulation, possession of knowledge and skill of
the banks core competence.
2.6 Customer Group map: power /interest matrix
Using Mendelows matrix to plot two factors for each customer group
a. Level of interest for each customer group in the bank.
b. Level of power / influence on the bank.

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The figure below shows the levels of power (influence) / interest analysis for the
bank.
Table A1.1 Identified customer groups in the bank

Low
Low

Level of interest

-Automotive

-Financial
institution

-Food and beverage

High

-NGOs ( nongovernmental
organizations)
C

-Public sector

-Diplomatic
missions
-Local corporate
-Telecoms

Level of influence.

High

2.7 The positioning of each customer group may be justified in the table
below.
NOTE: Some of the banks products and services include; intranet banking, Auto
Teller Machine, Point of Sale, foreign exchange bureau, mobile banking, western
union, and local money transfer.
Table A1.2 Customer group levels of influence/interest matrix positioning explained.

2.7.1 Sector A: Minimal effort (monitor).


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Customers
group

Level of interest

Level of influence/power

Automotive

Fairly low: mainly interested in bank's


products and services i.e. interest
rates on loans, deposits and
insurance, also excellent customer
services.

Fairly Low: occasional large deposits.


This groups concerns need to be
monitored.

Food & beverage

Fairly low: interested in bank's


products and services alone.(as
above) i.e. fairly deposits rate, loan
interest rates.

Fairly low: few in numbers to make


significant impact, the bank monitors
them in case their status changes.

2.7.2 Sector B: Keep informed (monitor).


Customer
group

Level of interest

Level of influence/power

NGOs

Fairly high: influence the banks


decisions on banks products and
services offered, as they also depend on
them to survive.

Fairly low: large deposits. Unless they


act collectively as a group they make
minimal impact to the banks goals.

Fin. Institutions

High: quality of services offered


,competitors in relation to banks
products and services offered.

Fairly low: offer similar products and


services, can impose a threat to
competitive advantage.

2.7.3 Sector C: Keep satisfied (meet needs and concerns before they
became issues).
Customers
group

Level of interest

Level of influence/power

Public sector

Fairly low: quality of bank's products and


services, make up large number of
personal accounts.

High: form a significant portion of the


banks personal banking division.

2.7.4 Sector D: Key players (manage relationship closely and


communication)
Customers
group

Level of interest

Level of influence/power

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Telecoms

Fairly high: excellent quality of banks


products and services , fast resolutions
on queries, effective efficient funds
transfer and statement

High; make large deposits and offer


facilities (provide means for e-banking),
present a major portion of the banks
business.

Diplomatic
Missions

High: Timely information of funds


transfer and statements, quick response
to queries, banks products and services,
excellent customer service.

High: provide foreign currency, make


large deposits.

Local corporate

High: Good deposit rates for excess


funds, banks products and services
excellent, customers service, quick
resolution of queries

High: large deposits, part of the banks


business segment i.e. Corporate
&Investment banking division.

Table A1.3 Current relationship with key customers.

2.8 Customers group.

Current relationship with the bank.

Telecommunicati
ons

Customer relationship

Diplomatic
missions

Customer relationship

Local corporates

Customer relationship

As opposed to transactional relationship whereby a sale marks the end of the


transaction, with relationship marketing a sale marks a start of relationship
between the organization and the customer.
2.9 HOW THE BANK USES THE EXTENDED MARKETING MIX TO MEET THE
NEEDS OF ITS KEY CUSTOMER GROUPS.
MARKETING MIX
ELEMENT

TELECOMMUNICATI
ONS

DIPLOMATIC
MISSIONS

LOCAL CORPORATES

2.9.1Product: Products
and services are
customized, customer
centric, and brand
oriented as per different
customer groups. They
also comply with policy,
relevant legislations and
regulations.

Telecoms are a fast


growing market due to
the growing mobile
industry. They are
offered Financing
solutions thus from
start-ups to maturity.

The bank offers


hedged rates on
foreign exchange
rates, thus reducing
substantial
losses/gains that may
be suffered due
changes on the
global market.

The bank offers this


group competitive
rate on deposits, since
they make large
deposits.

2.9.2 Price: Takes into


account costs, marketing

Special rates on loans


finance, payment

As above, hedged
rates on foreign

Competitive deposits
interest rates.

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14513981
strategies and
competition. The bank
also practices price
discrimination.

periods and credit


terms.

exchange.

Competitive payment
periods on loans, and
fair credit terms.

2.9.3Place: (channel
distribution)Designed to
fit its customer profiles,
taking into account
geographic distribution
and accessibility.

Electronic banking.
Increases their
customers and the
banks customers
through mobile
banking.

Make available ebanking and


Interactive websites.

Availability of service
centers(more
branches)country wide
and accessibility of
banks products and
services

2.9.4Promotion: Aims
at differentiate its
services from similar
offering of its
competitors and increase
brand royalty.

Public relations, Ebanking, direct


market, sponsorship
and relationship
banking.

Public relations, Ebanking, direct


market, sponsorship
and relationship
banking.

Public relations, Ebanking, direct market,


sponsorship and
relationship banking.

2.9.5People:
Directors/staff possess
relevant skills,
knowledge, experience
and follow a code of
ethics to fulfill customer
needs and requirements.

Qualified Service
delivery personnel
ensure excellent
customer service and
timely resolution of
queries.

Relationship
management team
builds relationship
banking. Speedy
processing of product
and services.
Excellent customer
service.

Qualified Service
delivery personnel
ensure speedy
processing of products
and services. Excellent
customer service.
Timely resolution of
queries.

2.9.6Process: Uses
standardized delivery
service to maintain a
level of consistence and
Relationship banking.

Standardized
customer forms and
service delivery
procedures. Help
desk. Relationship
management.

Standardized
customer forms,
service delivery
procedures.
Interactive website.
Relationship
management.

Standardized and
efficient customer
service, enquiries desk.
Relationship
management.

2.9.7Physical
evidence: Aims at
incorporating tangibility
aspect to our services.

Provision of more
service centers and
comfortable waiting
areas. Brand logo on
all documents.

Brand logo on our


websites and all
documents.
Availability of service
centers.

Comfortable waiting
areas. Provision of more
service
centers(branches).Brand
logo on all documents

BIBLIOGRAPHY

Blyth, J.(2008) Marketing Essentials. Elsevier Ltd. Oxford.UK

Fill, C. (2008) Marketing Communications. http://oxlearn.com/topic_TheMarketing-Communications-and-Relationship_4_10#topo (accessed 29


October 2012)

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Harris, D. Botten, N. McColl, J.(2008) CIM- Communicating with stakeholder .


Elsevier Ltd. Oxford.UK

Johnson and Scholes, (2007) Corporate strategy.


http://www2.accaglobal.com/pubs/hongkong/students/newsupdate/archive/20
10/25/learning_strategic_choice.pdf(accessed on 9 November 2012)

Machattie, K. Vincent K. Wright C.(2008) Assessment workbook. BPP Learning


Media Ltd. London.UK

Once, G. Service Marketing in Banking. Dokuz Eylul University


http://www.opf.oslu.cz(accessed 27 October 2012)

Pezzullo, M.A(1998) Adverting Budget.


http://www.aba.com/Solutions/MarketingNetwork/Documents/a705b83948414
6d79ad569beea339487CalculatingMarketingBudgets.pdf (accessed 20
October 2012)

Product Range.
http://corporateandinvestment.standardbank.com/global/products/products.js
p

Routman et al(2011) Relationship Marketing and Customer Retention Lesson


for South African Banks.
http://www.unisa.ac.za/contents/faculties/service_dept/docs/SABVIEW15_3_C
HAP9.pdf (accessed 23 October 2012)

Sanchez, G.(2000) Customer Relationship Marketing. Texas.


http://www.zunch.com/zunch/files/Zunch_CRM.pdf (access 19 October 2012)

Stakeholder Marketing: Types of relationships and stakeholder groups


http://www.cimlearningzone.co.uk (accessed October 2012)

Wright, C. (2008) Stakeholder Marketing. BPP Learning Media Ltd. London.


UK

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