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CIM/CAM Membership
Number
Unit Title
14513981
Stakeholder Marketing
Level/Award
14513981
CENTER NAME :
SESSION :
DECEMBER 2012
MODULE NAME :
STAKEHOLDER MARKETING
MEMBERSHIP NUMBER :
WORD COUNT :
14513981
4116
DECLARATION :
' I CONFIRM THAT IN FORWARDING THIS ASSESSMENT
FOR MARKING,I
UNDERSTAND AND HAVE APPLIED THE
CIM POLICIES RELATING TO
WORD
COUNT,PLAGIARISM AND COLLUSION FOR ALL TASKS. THIS
ASSESSMENT IS THE RESULT OF MY OWN INDEPENDENT WORK EXCEPT
WHERE OTHERWISE STATED. OTHER SOURCES ARE
ACKNOWLEDGED IN
THE BODY OF THE TEXT,A
BIBLIOGRAPHY HAS BEEN APPENDED AND
HARVARD
REFERENCING HAS BEEN USED. I HAVE SUBMITTED AN
ELECTRONIC COPY OF THIS ASSESSMENT TO CIM IN ACCORDANCE WITH
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:
Subject:
ii.
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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.
iv.
v.
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.
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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.
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.
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.
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.
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.
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:
Prepared by:
Marketing Manager
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.
Incremental method
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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:
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-Public Sector
- Automotive
-Agro-chemical
- Financial Intuitions
- Telecommunications
-Local Corporates
Organizations (NGOs)
- Diplomatic Missions
- Non-Govt.
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Ensure that three core units work together and maximize on the synergies
Constantly balance risk and return and also ensure appropriate corporate
governance
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Public sector
-Automotive
Agro-chemical
Local corporate
-Financial institutions
-Telecom
-Diplomatic missions
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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
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.
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Customers
group
Level of interest
Level of influence/power
Automotive
Level of interest
Level of influence/power
NGOs
Fin. Institutions
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
Level of interest
Level of influence/power
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Telecoms
Diplomatic
Missions
Local corporate
Telecommunicati
ons
Customer relationship
Diplomatic
missions
Customer relationship
Local corporates
Customer relationship
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.
As above, hedged
rates on foreign
Competitive deposits
interest rates.
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strategies and
competition. The bank
also practices price
discrimination.
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.
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.
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.
Comfortable waiting
areas. Provision of more
service
centers(branches).Brand
logo on all documents
BIBLIOGRAPHY
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Product Range.
http://corporateandinvestment.standardbank.com/global/products/products.js
p
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