Marketing Planning

Question 1

What are the macro-environmental forces that shape the market for an organizations goods and sevices?

outside of the bank’s control)

Answer 1

• economic
• demographic
• social and cultural
• political
• legal and regulatory
• technological
• natural

Question 2

How do micro-environmental forces shape the market for goods and services?

limited control

Answer 2

• markets
• competitors
• producers and suppliers
• marketing intermediaries
• publics

Question 3

What are three reasons to perform a formal situational analysis?

Answer 3

1. Provide a strong foundation on which to plan (know the destination, tools available and where yu are starting from)
2. Ensure goals are based on objective, factual and through analysis
3. Ensure buy-in and motivation to cooperate in the execution of the plan

Question 4

What qualities does marketing planning benefit from?

Answer 4

• Uniqueness - being able to clarify the unique benefits of the bank
• Sustainability - being able to perform consistently over time
• relevance - being able to connect to the staff and the marketplace

Question 5

What two elements should managers base their planning activities on?

Answer 5

Marketing mix and marketing environment

Question 6

What are the four P’s that make up the marketing mix?

Answer 6

• Product
• Pricing
• Promotion
• Place (distribution)

Question 7

What basic question should be answered when attempting to adjust to and understand your marketplace?

Answer 7

How do individuals and businesses select a bank?

Question 8

What are the four steps to developing a situation analysis?

Answer 8

• Conduct a seflf assesment with internal secondary data and feedback through primary research
• Analyze relevant macroenvironmental factors (examples: employment trends, retail trade activity, construcction activity)
• Analyze relevant microenvironmental factors (survey results, competitve shops, market trends)
• SWOT Analysis

Question 9

What type of information can a Marketing Customer Information File (MCIF) be used to help examine?

Answer 9

• product usage patterns
• account performance
• profitability
• customer differences (segments)

Question 10

What are the six steps in the research process?

Answer 10

1. Define the problem
2. Plan and design the research project
3. collect the data
4. analyze the data
5. report the findings
6. Integrate the data into planning

Question 11

How is corporate direction usually affirmed?

five guiding elements

Answer 11

• Vision
• Mission
• Core Values
• Competitive Advantage
• Branding

Question 12

A bank’s ________ should focus on the future and represent a picture of a desired persuit

Answer 12

Vision

Question 13

The ________ outlines what must happen to realize the company’s vision.

Answer 13

Mission Statement

Question 14

Attributes that are priorities in the daily operation of business

Answer 14

Core Values

Question 15

A description of how an organization differentiates itself based on its vision, mission and core values

Answer 15

Competitive Advantage

Question 16

Definition

A broad statement of direction that describe what an organization wants to achieve

Answer 16

Marketing Objective

Question 17

Definition

Address specific, mesurable results to be obtained in persuit of a broader objective

Answer 17

Marketing goal

Question 17

What five characteristics should marketing goals posess?

Answer 17

1. Measurable
2. Complement the bank’s financial goals
3. Appropriate for level of execution
4. Flexible
5. Challenging

Question 17

definition

Communicating the availability of products or services to the target market

Answer 17

Promotion Strategy

Question 17

definition

Strategy focused on developing and offering benefits that solve a problem for the target market

Answer 17

Product Strategy

Question 18

definition

Selling a product or service at a price he target market sees as commensurate with its percieved value

Answer 18

Pricing Strategy

.

Question 18

Making the product available at the desired time and place (when and whare the consumer wants it)

Answer 18

Distribution (Place) Strategy

Question 19

What is the objective of market segmentation?

Answer 19

To identify a specific group and pursue it with a tailored marketing mix

Question 20

What are the five principle segmentation strategies?

Answer 20

1. Geographic
2. Demographic
3. Pshycographic
4. Volume
5. Benefit

Question 21

definition

What are the four ways a bank can grow as diagramed in in the product market expansion matrix?

Answer 21

1. Market Penetration (selling current products to current markets
2. Market Expansion (selling current products to new markets)
3. Product Expansion (developing and selling new products to current makets)
4. Product/Market Expansion (developing and selling new products to new markets)

Question 22

What are different methods banks use to determine marketing and advertising spending?

five methods

Answer 22

1. Percentage Method
2. Competative Parity Method
3. Incremnetal Method
4. Objective and Task Method
5. Revenue Generation Method

Question 23

What are some of the flaws with the Percentage Method of determining advertising spends?

Answer 23

• based on past performance rather than objectives for the future
• Views assets and deposits as a cause rather than an effect of marketing
• Discourages aggressive advertising and reduces spending during economic slowdown