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261
Check Your Banking IQ
Before you begin this chapter, see what
you already know about banking by taking
the chapter pretest.
11
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Selling the Bank
Loyal customers are not born, they are created.
For a bank to be successful, it must reach out to
individuals and organizations that could benefit
from the products and services it provides. Once
a relationship with a customer is born, it must be
nurtured. Banks nurture these relationships and
create a positive public image by providing exceptional customer service.
Reading Prep. In preparation
for this chapter, use
the Internet and printed
College materials to locate bank
and Career advertisements. Can you
Readiness find any common themes
in these advertisements?
What does this tell you about
the purposes behind bank
advertisements?
Section 11.1
Marketing and Promotions
Section 11.2
Building Relationships
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262
Unit 4 Bank Management
Section 11.1
Marketing and Promotions
Demographic Market
Segmentation
Ethnicity
Terms
Objectives
need
want
market segment
target market
advertising
marketing
promotion
cross-selling
event-based selling
After completing this section, you will be able to:
s %XPLAINHOWCUSTOMERNEEDSANDWANTSAREUSEDTOIDENTIFYATARGET
market.
%VERYCONSUMERHASNEEDSANDWANTS!need is something a
PERSONMUSTHAVETOSURVIVESUCHASFOODCLOTHINGANDSHELTER!want is
something a person would like to have, but does not need to survive. The
difference between a need and a want is easy to see when comparing the
purchase of a house to the purchase of a ring. The house provides shelter, so
it fills a need. The ring is a want, because you can survive without it.
How do a bank’s products and services fit into a consumer’s needs and
WANTS%VERYCONSUMERNEEDSMONEYTOPURCHASEORACQUIRETHEITEMSTHAT
AREESSENTIALTOLIFE!BANKCANHELPCONSUMERSSAVEEARNORBORROWMONEY
This helps them get what they need as well as some of what they want.
To create a customer from a consumer, a bank needs to be able to
give the consumer what he or she needs. Banks do this by identifying
their target market.
Identifying a Target Market
to
t ters
ck (
H an
nam
g
e t h in
S
s o m r v ive.
is
d
e
su
A n e ired to
req u
e:
ourc
Shu
ar
iah)
Banks, like every other kind of business, set up locations in areas
where they can get customers. Banks design products and services to
w
help meet the needs of the customers in the community they serve. No
he
matter what product is being sold, not everybody will want to buy it. To
m
reach the right consumers, banks first need to identify them.
re
7HATCHARACTERISTICSDOTHESECONSUMERSHAVEINCOMMON$OTHEY
HAVESIMILARINCOMES!RETHEYSAVINGMONEYTOBUYAHOUSE$IDTHEY
HA
recently buy a car? Knowing the characteristics that possible customers
re
HAVEINCOMMONWILLHELPIDENTIFYAMARKETSEGMENT!market segment
HA
is a group of consumers that share common wants and needs. The
wants and needs of these consumers are different from consumers
w
in other segments. Figure 11-1 shows examples of the four types of
market segmentation: demographic, geographic, psychographic, and
Age
Geographic Market
Segmentation
City
Region
Occupation
Education
Neighborhood
Country
Gender
Income
s $ESCRIBETHECOMPONENTSOFAMARKETINGSTRATEGYANDHOWITISDEVELOPED
Meeting Customer Needs
263
Chapter 11 Selling the Bank
Block
Family
size
Psychographic
Segmentation
Lifestyle
Habits
Activities
Interests
Behavioralistic
Segmentation
Purchase
Benefits
frequency–
sought–
birthday, holiday,
motivation
graduation,
for purchase
anniversary
Brand
loyalty
Hobbies
State
Usage
rate
Opinions
Figure 11-1.
Market Segmentation
behavioralistic. By breaking consumers into segments, banks can focus
their marketing efforts on those who are most likely to become customers.
This group is the target market. The target market is the market segment
that will be the focus of the marketing strategy.
Matching Bank Products and Services to
Needs and Wants
Once the bank identifies a target market, it can match the needs and
wants of these consumers to its products and services. Products and
services are designed or modified by analyzing the needs and wants of a
certain market segment. In Figure 11-2, characteristics of mortgage loans
(the product) are matched to first-time home buyers (the target market).
This sample chapter is for review purposes only. Copyright © The Goodheart-Willcox Co., Inc. All rights reserved.
264
Unit 4 Bank Management
Characteristics of Mortgage
Loan (Product)
Needs and Wants of First-Time
Home Buyers (Target Market)
Small down payment
Small amount of money saved for
down payment
Competitive interest rate
Low mortgage payments
Few closing fees
Low closing costs
Roll closing costs into the
mortgage loan
Low closing costs
&LEXIBLECREDITREQUIREMENTS
!PPROVALWITHSHORTCREDITHISTORY
No penalty for prepayment
Increased income over time
265
Chapter 11 Selling the Bank
Marketing professionals develop a plan that will help the bank meet
CUSTOMERNEEDSWHILEMAKINGAPROlT%ACHMARKETINGPLANISDEVELOPED
around the four P’s of marketing: product, place, price, and promotion.
Figure 11-4 illustrates these.
The Four P’s
Product
Price
Figure 11-2.
Matching Product Characteristics with Target Market Needs and Wants
$EVELOPINGA-ARKETING3TRATEGY
When you think of marketing, you probably think of the advertisements
you see on television. Advertising involves calling attention to a product or
service, commonly through the use of paid announcements.
!DVERTISINGISONLYONEPARTOFMARKETINGMarketing is the process
of introducing a product or service to the consumers who can purchase
it. Marketing includes creating a salable item, setting a price, selecting
a delivery method, and developing a strategy for promoting the item.
Figure 11-3 shows some of the many aspects of marketing.
Source:
Shutterstock (bannosuke)
Source:
Shutterstock (Lisa S.)
What products or services meet
the needs of consumers in the
target segment?
Examples: certificate of deposit,
savings account, mortgage, or
mobile banking app.
How much will the product cost
the consumer?
Examples: fees and interest rates
are paid as well as charged.
Place
Promotion
Advertising
Public
Relations
Media
Planning
CityMarket
Research
Marketing
Pricing
Source:
Shutterstock (June Marie Sobrito)
Sales
Strategy
Distribution
Customer
Support
Figure 11-3.
!SPECTSOF-ARKETING
How will the product be available
to customers?
Examples: online, at a bank
branch, from an ATM or
smartphone; regionally,
nationally, or internationally.
Figure 11-4.
Four P’s of Marketing
Source:
Shutterstock (Jorge Salcedo)
How will the product be
announced?
Examples: through television
advertisements, billboards, the
Internet, social media, or a
combination of these.
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266
Unit 4 Bank Management
Creating Promotions
Ethical
Banking
It is unethical for a bank
or any other business
to take part in deceptive
marketing. It is important
for banks to not only
comply with laws, but to
ensure that any claims
made are in no way
misleading. This is not
only an ethical and legal
consideration, it is also
good business.
Promotion is an activity that increases consumer awareness of a
PRODUCT!DVERTISINGISATYPEOFPROMOTION#ANYOUTHINKOFATELEVISION
commercial that recently made you laugh? The funny commercial made
you remember the product and is one way the company promotes it.
The methods and locations for promoting a product have changed.
)NTHEPASTPROMOTIONRELIEDHEAVILYONADVERTISING!DVERTISINGMEANT
promotions on television and radio or in newspapers and magazines.
4ODAYPROMOTIONISMOREDYNAMIC!DVERTISINGISONLYONEOPTION
Promotions can include almost any activity:
s DISTRIBUTINGPENSWITHTHEBANKSLOGO
s SPONSORINGACITYWIDEEVENTSUCHASACONCERT
s CREATINGAWEBSITE
s SENDINGEMAILMESSAGESORSOCIALMEDIAUPDATESTOCUSTOMERS
s DISTRIBUTINGCALENDARSORSOMEOTHERDAILYUSEPRODUCT
s HOLDINGSEMINARSTOHELPCUSTOMERSTHATARECONSIDERINGlNANCIAL
milestones, such as buying a house, starting a business, or retiring
The banking industry has many regulations on promotions and
advertisements. Interest rates, for example, must be stated in specific
ways. Select terms must be avoided or included. If a certain balance
must be maintained to take advantage of an account feature, that must be
included as part of the advertisement. For example, if a customer must
maintain a minimum balance of $2,000 to avoid a fee, that needs to be
stated. In addition, the phrase Member FDIC must be included in anything
that promotes a deposit account or the bank as a whole. This signifies
THATDEPOSITORSAREINSUREDTHROUGHTHE&EDERAL$EPOSIT)NSURANCE
Corporation. Member FDIC must also appear on the homepage of the
BANKSWEBSITE7HENMORTGAGEPRODUCTSAREADVERTISEDTHE$EPARTMENT
OF(OUSINGAND5RBAN$EVELOPMENT(5$REQUIRESTHATlNANCIAL
INSTITUTIONSSTATETHEYAREANEQUALHOUSINGLENDER&IGUREPROVIDES
an example of a compliant print advertisement.
Green Banking
Banks spend a lot of time
and money on advertising
costs. Although online
marketing is becoming
more common, some promotional materials are
more effective in print form, such as brochures.
Many banks are now using environmentally friendly
supplies for their printed advertisements, such as
paper made from sugar cane, rather than wood.
Sugar cane actually biodegrades faster than wood
and is cleaner to make. This can be a perfect
alternative for paper stock used for marketing and
promotional materials.
Making a Sale
Some type of contact is needed for
a sale to happen. Selling occurs in many
ways, but for banks, personal selling is the
most common.
%ACHTIMEABANKEMPLOYEECOMES
in contact with a customer, or potential
customer, that employee is applying
personal selling. Saying, “hello,” “how can
I help you?” and “is there anything else
you need?” are examples of personal
selling.
Cross-selling is a personal selling
strategy that encourages existing
customers to buy new products or
services based on their previous
purchases. Cross-selling is the result of
267
Chapter 11 Selling the Bank
GREAT RATES
30-Year Fixed Rate Mortgage
3.87
%
Annual
Percentage
Rate
Annual
percentage rate
must be stated
24 Month CD
Denotes that
North Creek
Bank and Trust
is an equal
housing lender
1.00
%
Annual
Percentage
Rate
North Creek
Bank and Trust
Requires a 70% loan-to-value ratio and
1.25 points due at closing. Taxes and
insurance premiums are additional.
Required on all
advertisements
related to
deposit accounts
Rates available to new deposits
only. Minimum to open a CD is
$2,500. Penalty may apply to CD
for early withdrawal. APR stated
accurate as of 1/3/XX.
Requirement for getting
advertised rates
Figure 11-5.
3AMPLE!DVERTISEMENT
an existing relationship formed by selling a bank product or service to a
customer. Therefore, it is sometimes known as relationship-based selling.
For example, conversations between a teller and a customer might reveal
that a customer with a savings account is saving for a down payment on
a house. Tellers are trained to ask a checking customer if they would like
to open a savings account. If they have a checking and savings account,
the teller asks if they would like to have direct deposit or automatic bill
pay. The more services a bank provides to a customer, the more likely the
customer is to stay with that bank.
#ROSSSELLINGREQUIRESINTERACTIONBETWEENBANKEMPLOYEES0ASSING
a customer’s needs and wants along to a loan officer might result in
making a mortgage loan to a savings account customer. Friendly interest
from a bank teller reveals the customer’s needs, and good communication
among bank employees and bank departments could lead to a crossselling opportunity. Customers who have several relationships with the
same bank, such as a savings account and a mortgage loan, are more
likely to be loyal to the bank.
!NOTHERFORMOFPERSONALSELLINGISEVENTBASEDSELLINGEvent-based
selling is when a bank employee contacts a customer because of an
event that has recently happened with that customer. For example, a
BIZ TIPS
The Bank Holding ComPANY!CTASAMENDEDIN
1970, bans banks from
making customers buy one
product or service for them
to be eligible for another
product. For example, a
BANKCANNOTREQUIRETHATA
customer buy homeowners
insurance from a company
owned by the bank to be
eligible for a mortgage
from the bank.
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268
Unit 4 Bank Management
CUSTOMERVISITSTHEBANKSWEBSITEANDREQUESTSINFORMATIONABOUTHOME
MORTGAGES4HISINFORMATIONREQUESTEVENTMAYTRIGGERAPERSONALEMAIL
FROMTHELOANOFlCERINQUIRINGIFANYADDITIONALINFORMATIONISNEEDEDBY
the customer. The event provided an opportunity for personal selling from
the bank.
Checkpoint 11.1
Section 11.2
Building Relationships
Objectives
Terms
After completing this section, you will be able to:
public image
customer service
customer
rapport
word-of-mouth
advertising
1. Why is setting up a target market helpful in marketing the bank?
s $ESCRIBETHEELEMENTSTHATCREATEAPOSITIVEIMAGEFORABANK
2. What does a market segment of consumers have in common?
s %XPLAINTHEIMPORTANCEOFCUSTOMERSERVICEINKEEPINGCUSTOMERS
3. How have the methods and locations for promoting a product changed?
4. When must the phrase Member FDIC appear in a bank’s
communications?
7HYISCROSSSELLINGSOMETIMESREFERREDTOASRELATIONSHIPBASED
selling?
Build Your Vocabulary
!SYOUPROGRESSTHROUGHTHISCOURSEDEVELOPAPERSONALGLOSSARY
of banking terms and add it to your portfolio. This will help you build your
banking vocabulary. Write out a definition for each of the following terms,
and add it to your personal glossary.
need
want
market segment
target market
advertising
marketing
promotion
cross-selling
event-based selling
269
Chapter 11 Selling the Bank
The Bank’s Image
7HATQUALITIESWOULDYOUWANTASTRANGERTOHAVEWHENYOUCONSIDER
GIVINGHIMORHERYOURLIFESAVINGSTOHOLDFORYOU9OUWOULDREQUIRETHE
SAMEQUALITIESFROMYOURBANK7HENYOUTHINKOFABUSINESSTHEIDEAS
and opinions you have of it from your image of the business.
!BUSINESSpublic image is made up of the ideas and opinions that
PEOPLEHAVEABOUTTHEBUSINESS!POSITIVEPUBLICIMAGEMAKESITEASIERTOHIRE
ANDRETAINEMPLOYEESACQUIRENEWCUSTOMERSANDKEEPCURRENTCUSTOMERS
!BANKMUSTBESEENASHONESTSTABLEANDANIMPORTANTPARTOFTHE
COMMUNITY%VENTHOUGHALLBANKSHAVETOAPPEARHONESTANDSTABLE
EACHBANKALSONEEDSTOAPPEARUNIQUEINSOMEWAY3OMEBANKSAPPEAR
different because they focus on a particular product or service that is not
offered by other banks. Small, local banks often emphasize their customer
service or community involvement. By examining a bank’s promotions
and, in particular, its advertisements, you can usually detect the public
image the bank wants and how it is trying to achieve that.
The economic strength of a community often depends on its ability to
get credit. Banks can contribute to the local economy by making loans to
individuals and businesses. These loans help create jobs and bring revenue
to its citizens. By working with the citizens, banks establish a positive public
image. Banks provide the credit that helps the community run and grow.
w.
In addition to the credit they provide, banks engage with the
communities they serve in other ways. Banks often sponsor community
ty
events, such as marathons. Increasingly, they provide ongoing financial
al
education to consumers. Bank executives often serve on civic boards
ANDLOCALCHAMBERSOFCOMMERCE!NOTHERWAYBANKSAFFECTTHEIR
communities is through the customer service they provide.
If the public image of the bank or the financial industry is damaged,
d,
the bank may need to repair its reputation with customers. For
example, the financial crises of the early 21st century had a negative
impact on the banking industry. In hopes of repairing some of the
3OURC
E3H
G ood
UTTERS
damage, many banks chose to replace managers, change how they
c u s to
TOCK
9URI!
mer s
QUALIlEDPOTENTIALBORROWERSANDINSTITUTEOTHERPOLICYCHANGES
th e b
RCURS
a
n k ’s p e r v ice h
These were important steps to reestablishing the positive image of
e lps
u b li c
im ag
the banking business.
e
.
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270
Unit 4 Bank Management
What Is Customer Service?
!CUSTOMERENTERSTHEBANKTOBUYTRAVELERSCHECKSFORANUPCOMING
vacation. The teller smiles, says hello, and issues the traveler’s checks
ASQUICKLYASPOSSIBLE4HETELLERTHENASKSAFEWQUESTIONSABOUTHOW
satisfied the customer is with checking and savings accounts service at
THEBANK4HECUSTOMERRESPONDShQUITEPLEASEDvANDLEAVESTHEBANK
When did the customer service begin? When the customer entered the
bank? When standing in line? When purchasing the traveler’s checks?
Customer service includes all interactions between a customer
ANDTHEBANK!customer is an individual, organization, or business that
purchases a product or service. Customer service starts when the bank
and the customer interact for the first time. This could be a click on a
website, a comment about the bank that the customer overhears at work, or
THEUSEOFAN!4-ATTHEMALL%VERYINTERACTIONISANOPPORTUNITYTOIMPRESS
Good customer service adds value to the bank and increases the
CUSTOMERSLOYALTY)TISTHECUSTOMERWHOJUDGESTHEQUALITYOFTHESERVICE
difference between poor customer service and great customer
The diffe
service is
i the difference between losing and keeping a customer.
Poor Customer
Service
The customer… The employee…
Good Customer
Service
The employee…
ASKSAQUESTION
the employee
does not know
the answer to.
says, “I don’t know.”
says, “I will find out.”
behaves rudely
to the employee.
is rude in return, or
refuses to deal with the
customer.
remains courteous and
businesslike.
disagrees with
information
provided.
argues with the
customer.
tries to defuse the
situation while remaining
courteous.
asks that the
employee take
an additional
step.
does not follow through follows through with the
because he or she will promise.
probably never see that
person again.
is waiting.
takes his or her time
tries not to keep the
getting to the customer. customer waiting and
acknowledges the wait
when the customer is
next.
is in front of the
employee or on
the telephone.
is distracted by another
customer, coworker, or
something else going
on in the bank.
focuses on the current
customer.
sees a bank
employee doing
something
incorrectly.
corrects the coworker
publicly.
waits until later to point
out the problem or brings
it to the attention of a
supervisor.
does not
complain about
the service
he or she has
received.
assumes the customer
must be satisfied.
asks if the customer’s
needs have been met and
if there is anything further
the employee can do.
%MPLOYEE"EHAVIOR
%MP
%VERYBANKEMPLOYEEISACUSTOMERSERVICEREPRESENTATIVE%VEN
%V
though the bank may have dedicated customer service employees,
each employee provides some type of customer service. Bank
personnel must avoid any behavior that is unethical or inappropriate.
pers
Customers
do not have to put up with rude or ignorant responses.
Cus
It is easy for them to take their business to another bank that treats
ATHS
2
R
DE
them well. Figure 11-6 shows examples of behaviors that reflect
th
XA N
!LE
TOCK
poor
customer service and those that reflect good customer
p
w it h l
T TERS
t
U
r
H
o
a
3
service. Remember that happy customers become loyal
RCE
a p p p e rs o n
r
3OU
d
u il
h
customers who will return to fill other banking needs. It costs
lit y
oug
ks b
B a n e rs t h r n d q u a
MUCHLESSTORETAINSATISlEDCUSTOMERSTHANITDOESTOACQUIRE
.
a
m
e
n
o
ic
new ones. To provide positive customer service, employees
c u st e rac t io e r s e r v
in t sto m
should always:
cu
ADDRESSTHECUSTOMERBYNAME
s ADD
KNOWTHEPRODUCTSANDSERVICESTHATTHEBANKOFFERS
s KNOW
APPLYTHEIREXPERTISETOTHECUSTOMERSNEEDSTOlNDTHEPRODUCTTHAT
ss APP
ISRIGHTFORHIMORHERNOTJUSTWHATISPROlTABLEFORTHEBANKAND
s EXCEEDINTHECUSTOMERSEXPECTATIONFORSERVICE
271
Chapter 11 Selling the Bank
is present when blames the customer, a
a problem arises. coworker, or the bank’s
processes for the
problem.
takes responsibility and
fixes the problem.
complains.
tells the customer that
the employee will follow
up on the complaint and
fix the issue—and does
just that.
ignores it.
Figure 11-6.
Focus on the Customer
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272
Unit 4 Bank Management
Building rapport with a customer will increase his or her satisfaction
with the bank. Rapport is a bond of mutual trust. It is central to a successful
and ongoing business relationship. Never underestimate the power of a
sincere smile. Other methods of achieving rapport are shown in Figure 11-7.
Financial products can be confusing for many people. Many of the
financial decisions customers make will have a major impact on their
lives. Bank employees should be able to explain the options the bank
offers. If the employee does not know the answer, he or she should be
able to readily find it. In some cases, the customer should be brought
to an employee who is more familiar with the topic. For example, a loan
officer could probably explain loan terms better than a teller, who does not
deal with loans every day.
!LTHOUGHCUSTOMERSMIGHTBEINITIALLYDRAWNTOABANKBYAPRODUCT
promotion, they are unlikely to continue as customers if their customer
service needs are not met. When bank employees use what they know
about the bank and its products to meet customer needs, they are
contributing to the bank’s success.
Customers expect good service. Whether a customer receives
exceptionally good or poor service, he or she is likely to mention it to
others. Word-of-mouth advertising is a type of promotion in which
customers tell others about their experience with a specific business. The
only control banks have over word-of-mouth advertising is the customer
service they provide. It is up to the bank to foster positive relationships
with customers by excelling in every interaction.
273
Chapter 11 Selling the Bank
Customer Services Offerings
Customer service representatives are an important part of customer
SERVICES(OWEVERQUALITYPRODUCTSANDSERVICESENHANCETHEBANKS
image and generate customer loyalty:
s LOCATIONS
s HANDICAPPEDACCESSIBILITY
s INTERNATIONALSERVICES
s SECUREWEBSITE
Locations that are convenient for customers are important with
any business, including a bank. Persons with disabilities also need to
have access that is appropriate to their needs. Ramps, teller windows,
ANDLOBBY!4-SSHOULDBEDESIGNEDTOACCOMMODATEAPERSONUSING
AWHEELCHAIR4HE!MERICANSWITH$ISABILITIES!CT!$!REQUIRESALL
buildings that welcome the public to meet accessibility standards.
For example, as shown in Figure 11-8, a ramp can be provided as an
alternative to using stairs.
)NTERNATIONALSERVICESAREINCREASINGLYREQUIREDBYCUSTOMERS!CCESS
to money and account information while traveling abroad is another factor.
Credit and debit cards that work in foreign countries as well as other
travel-rated services are ever more important to consumers.
Many people are now conducting most if not all of their banking
online. The bank’s website should be secure and easy to use. Information
should be easy to find and services commonly offered by other banks
should be available. For example, the ability to pay bills and check
account balances should be provided.
Rapport
Language
• Use speech and body language similar
to that of the customer
• Be aware of your nonverbal
communication as well as that from the
customer
Cultural
• Find shared interests and experiences
with the customer
• Be aware of cultural differences
between you and the customer
Other
• Create a positive environment
• Be open to doing something for a
customer for no immediate return
• Identify barriers between you and the
customer and work to remove them
Ramp
conforms to
guidelines
Stairs are
not accessible
Source: Shutterstock (Pius Lee)
Figure 11-7.
-ETHODSOF!CHIEVING2APPORT
Source: Shutterstock (auremar)
Figure 11-7.
!$!2EQUIRES0UBLIC"UILDINGSTOBE!CCESSIBLE
This sample chapter is for review purposes only. Copyright © The Goodheart-Willcox Co., Inc. All rights reserved.
274
Unit 4 Bank Management
Checkpoint 11.2
1. How does a positive public image help a bank?
275
Chapter 11 Selling the Bank
Careers in Finance
Banking and Related Services
2. List four ways that banks engage with the communities they serve.
3. How do banks control word-of-mouth advertising?
4. Why is it important for bank employees to be able to explain the
options the bank offers?
7HATAREFOURCUSTOMERSERVICEOFFERINGSTHATENHANCEABANKS
image and generate customer loyalty?
Build Your Vocabulary
!SYOUPROGRESSTHROUGHTHISCOURSEDEVELOPAPERSONALGLOSSARY
of banking terms and add it to your portfolio. This will help you build your
banking vocabulary. Write out a definition for each of the following terms,
and add it to your personal glossary.
public image
customer service
customer
rapport
word-of-mouth advertising
7HAT$OESAMarketing Specialist $O
Marketing specialists are responsible for the marketing, promotion,
and sales of products and services. They are sometimes referred to as
product specialists, because they often perform these duties for a specific
banking product. Marketing specialists conduct surveys and make
forecasts for the market for specific products. They develop advertisements,
promotions, and pricing to accommodate the product’s marketing plan.
Some of the activities performed by a marketing specialist include:
s RESEARCHINGCOMPETINGPRODUCTSANDMAKINGRECOMMENDATIONSON
PRICINGANDPROMOTIONS
s PREPARINGSALESBROCHURESANDOTHERADVERTISEMENTS
s GATHERINGINFORMATIONFROMPRODUCTUSERSTODETERMINECUSTOMER
SATISFACTIONANDIDEASFORIMPROVEMENTSAND
s TRAININGSALESANDCUSTOMERSERVICEEMPLOYEESONPRODUCT
advancements.
What Is It Like to Work as a Marketing
Specialist?
Marketing specialists spend time both traveling and working in an
office environment. They are often attending conferences, meetings, and
trade shows to gather information about market trends and competitors.
Marketing specialists in the financial sector often specialize in one
specific banking product and work under the direction of a marketing
MANAGER%XCELLENTCOMMUNICATIONANDANALYTICALSKILLSAREESSENTIALTOA
career as a marketing specialist.
If you possess an entrepreneurial spirit and enjoy conducting
independent research, a career as a marketing specialist might suit you.
7HAT%DUCATIONAND3KILLS!RE.EEDED
to Be a Marketing Specialist?
Career Ladder
s
s
s
s
COLLEGEDEGREEINBUSINESSORMARKETING
-ASTEROF"USINESS!DMINISTRATION-"!ISVERYHELPFUL
EXPERIENCEINMARKETINGORBANKMANAGEMENT
CREATIVITY
Marketing Manager
Marketing Specialist
Marketing Analyist
This sample chapter is for review purposes only. Copyright © The Goodheart-Willcox Co., Inc. All rights reserved.
276
Unit 4 Bank Management
Chapter Summary
Section 11.1 Marketing and Promotions
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4OCREATECUSTOMERSYOUMUSTBECOMEFAMILIARWITHCONSUMERS
needs and wants.
)NFORMATIONABOUTCUSTOMERSNEEDSANDWANTSISUSEDTOIDENTIFY
a target market, match the characteristics of bank products and
services to a target market, develop a marketing strategy, and create
promotions.
Section 11.2 Building Relationships
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!POSITIVEPUBLICIMAGEMAKESITEASIERTOHIREANDRETAINEMPLOYEES
ACQUIRENEWCUSTOMERSANDKEEPCURRENTCUSTOMERS
#USTOMERSERVICESTARTSWHENTHEBANKANDTHECUSTOMERINTERACTFOR
the first time.
Check Your Banking IQ
277
Chapter 11 Selling the Bank
Review Your Knowledge
On a separate sheet of paper or in a word processing document,
match the following terms with the definition that fits best.
! MARKETING
F. word-of-mouth advertising
B. rapport
G. advertising
C. event-based selling
H. promotion
$ PUBLICIMAGE
I. market segment
% TARGETMARKET
J. cross-selling
1. Customers tell others about their experience with a specific business.
2. Marketing strategy that encourages bank representatives to contact a
customer when an event occurs.
3. Process of introducing a product or service to the consumers who
can purchase it.
!CTIVITYTHATINCREASESCONSUMERAWARENESSOFAPRODUCT
"ONDOFMUTUALTRUST
Now that you have finished this chapter, see
what you know about banking by taking the
chapter post test.
www.m.g-wlearning.com
www.g-wlearning.com
%NCOURAGESEXISTINGCUSTOMERSTOBUYNEWPRODUCTSORSERVICES
based on their previous purchases.
7. Group of consumers that share common wants and needs.
8. Made up of the ideas and opinions that people have about a
business.
!CTIVITYTHATCALLSATTENTIONTOAPRODUCTORSERVICE
10. Market segment that will be the focus of the marketing strategy.
On a separate sheet of paper or in a word processing document,
ANSWEREACHOFTHEFOLLOWINGQUESTIONS
$ESCRIBETHEDIFFERENCEBETWEENANEEDANDAWANT
12. What distinguishes the members of a market segment from other
consumers?
13. Name an event that could encourage a bank representative to contact
a customer using event-based selling.
14. What are four aspects of a positive public image that banks strive for?
7HENDOESCUSTOMERSERVICEBEGIN
This sample chapter is for review purposes only. Copyright © The Goodheart-Willcox Co., Inc. All rights reserved.
278
Unit 4 Bank Management
Chapter 11 Selling the Bank
!PPLY9OUR+NOWLEDGE
16. Create a chart listing some needs and wants of consumers. In the
second column, list the products or services that banks provide to
satisfy these needs and wants.
17. Create a chart of target markets that a bank might identify. Indicate
on the chart which markets you are included in or excluded from.
18. Using Figure 11-6, add a fourth column titled Customer Service That
%XCEEDS%XPECTATIONS&OREACHSITUATIONLISTCUSTOMERSERVICE
behaviors that would exceed customer expectations.
19. Think about an occasion when you witnessed inappropriate
customer-service behavior at any business. Write a short summary
discussing the encounter and what you think should have been done
differently.
20. With a classmate, take turns role playing a customer-service situation
at a bank. Imagine you are a bank representative answering a
CUSTOMERSQUESTIONSABOUTTHESAVINGSACCOUNTSYOURBANKOFFERS
!SKYOURPARTNERTORATEYOURCUSTOMERSERVICESKILLS
Working in Teams
Interview a classmate as if he or she were a client whose investment
portfolio you manage. What information would you have to know about
your client to understand what investments would be suitable? Create a
pie chart that shows what percentage of your client’s investable income
you would place in stocks, bonds, treasury securities, and other assets,
such as real estate. Present the chart to your client and your class, giving
the rationale behind your choices.
Common Core
Speaking. Plan a marketing campaign based on increasing
sales of an existing banking product or service. Using multiple types of visual and print displays, present your plan to
College THECLASS!SKYOURCLASSMATESTOCOMMENTONTHEEFFECTIVEand Career ness of your marketing plan.
Readiness
Writing. Keep an eye out for bank advertisements that you
encounter. These can be found on television, in magazines, on social
networking sites, on billboards, and multiple other places. Start a journal that documents where you found the advertisement, what was being
advertised, who you think the target market for the advertisement is, and
any aspects of the advertisement that contribute to the bank’s public image. Update your journal throughout the semester, being sure to include
advertisements from multiple types of media sources.
%6%.4
E
VENT
NT Financial Math
P
R
P
02
2E
%0
02%0
Financial math is a competitive event you might
enter with your career and technical student
organization (CTSO). The financial math event
may include an objective test that includes banking topics. If you decide to
participate in this event, you will need to review basic banking concepts to
prepare for the test. To prepare for a financial math event:
1. Read the guidelines provided by your organization. Make certain
THATYOUASKANYQUESTIONSABOUTPOINTSYOUDONOTUNDERSTAND
It is important you follow each specific item that is outlined in the
competition rules.
2. Review the checkpoint activities at the end of each section of the text.
3. Review the end-of-chapter activities for additional practice.
G-W Learning Mobile Site
Visit the G-W Learning mobile site to complete the chapter
pretest and post test and to practice vocabulary using
e-flash cards. If you do not have a smartphone, visit the G-W Learning
companion website to access these features.
G-W Learning mobile site: www.m.g-wlearning.com
G-W Learning companion website: www.g-wlearning.com
!SKYOURINSTRUCTORTOGIVEYOUAPRACTICETESTFOREACHCHAPTEROF
this text. It is important that you are familiar with answering multiple
CHOICEANDTRUEFALSEQUESTIONS(AVESOMEONETIMEYOUASYOUTAKE
the practice tests.
279