Download Dynamics of Financial Services Environment

Dynamics of Financial
Services Environment
Strategies, statements and
planning process
Management Process
• The process of developing a plan,
implementing it and evaluating the results.
It is a dynamic and ongoing process rather
than on one-time event because
management is an ever changing
environment.
The Management Process
Management Functions
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Marketing Environment
• Macro-environment
• Micro-environment
• Public
Macroenvironment….
• The part of the marketing environment tht
is external to the business and least
controlled by it.
– Economic environment
– Demographic environment
– Social/cultural environment
– Political/legal environment
– Technological environment
– Natural environment
Microenvironment….
• That part of the marketing environment
that is internal to the business and most
controlled by it.
– Customers
– Employees
– Producers/suppliers
– Intermediaries
Public/Stakeholders
• Group of people who have something in
common that may affect the ability of the
business to pursue its objectives.
Discussion of Macroenvironmental
Factors Affecting Banking
1. Do banks have any control over this force?
2. Describe the changes taking place in this
element of the environment.
3. How does it affect our general area?
4. Has this change affected the products or
services offered by banks?
5. Has it affected the way banks advertise and
promote products?
6. How else has it affected businesses?
Marketing Management Process….
• The process of planning, implementing
and evaluating activities aimed at meeting
the objective of customer satisfaction at a
profitable volume, carried out in an
integrated framework and in a socially
responsible manner.
Strategic Planning for Banks
Deposit Acquisition Loan Acquisition
• Deposit inflow
• Pools of funds
available
• Bank investments or
loans
• Loan application
inflow
• Loan applications
reviewed for credit
worthiness
• Loan approved
The Unique Challenge of
Bank Marketing
Prerequisites for Successful
Strategic Planning…..
• Senior management
support/involvement
• Cooperation at ALL
bank levels
• Agreement to commit
time, talent and
resources
• Design responsibility
for plan
implementation
• Recognition that plan
will not be perfect or
unchanging
Marketing Strategy….
• The step in the marketing planning
process during which the marketing mix
strategies are selected in order to attract
the target audience.
Steps in the Marketing Planning
Process…..
• Situational analysis
• Setting objectives
• Target market selection
• Strategy formation
Model for the strategic Marketing Management Process
The Marketing Plan
Situation Analysis
Problems and opportunities
(SWOT)
Objectives
Stretching, measurable, consistent,
specific, challenging, attainable, timely
Feedback and
modification
Target Market Selection
Segments to target with
marketing strategy
Marketing Strategy
Product
Strategy
Pricing
Strategy
Promotion
Strategy
Place (Distribution)
Strategy
objectives
strategies
tactics
objectives
strategies
tactics
objectives
strategies
tactics
objectives
strategies
tactics
Implementation
Evaluation
Federal Regulators of the Banking
Industry
•
•
•
•
Regulator
Federal Reserve System (Fed)
Federal Deposit Insurance
Corporation (FDIC)
Office of the Comptroller of the
Currency (OCC) National
Credit Union Administration
(NCUA)
Office of Thrift Supervision
(OTS)
• Entities Regulated
• Bank holding companies;
national banks; state banks
that are Fed members
• Federal Reserve member
banks; state-chartered
commercial banks that are not
Fed members; state-chartered
savings associations
• National Banks
• Federally chartered and
federally insured credit unions
• Federally chartered savings
and loan associations
Expansion Matrix
Markets
Present Products
New Products
Present
Penetration
Product Expansion
New
Market Expansion
Diversification
Product/Market Matrix
• Markets
Existing Products
New Products
• Present
Market
Penetration
Product
Expansion
• New
Market
Expansion
Diversification
product/market
Expansion
Types of Objectives Found in
Banks….
•
•
•
•
•
Mission Statement
Corporate or Financial Objectives
Marketing Objectives
Departmental Objectives
Job Objectives
The Product/Market Expansion
Matrix
Markets
Present Products
New Products
Present
Market Penetration
Improve bank’s
position with present
products in present
markets
Product Expansion
Develop new products
for present markets
New
Market Expansion
Find new markets to
use bank’s present
products
Diversification or
Product/Market
Expansion
Develop new products
for new markets