CFMP marketing plans 30% Flashcards
Define ROI
ROI is the return on investment. A measure of the economic performance of an activity calculated by comparing the incremental revenue, profit, driven by the activity to the investment made in it.
Provide rationale supporting the use of market segmentation
Uses products or services to meet the diverse customer needs. Having an understanding of our segmentation allows development of products and services to me the actual customer need
Define ROMI
Return on marketing investment. An extension of ROI considers marketing as a synergistic group of activities. For example it can be used for preprogram analysis to determine expected pay back, mid program analysis to make adjustments, and post program analysis.
Define ROMI hurdle
A metric used in decision-making specifying the minimum return on marketing investment required for a project to move forward
What are the four key planning elements?
Situation analysis
objectives and goals
Target market selection
strategy and tactics
Define implementation
Putting a plan into action; turning a marketing plan into specific tasks to be performed at all levels and in all departments at the bank
Define situation analysis
Formal, systematic procedures for evaluating one’s position in relation to the internal and external environment in order to identify strengths and weaknesses, and to set meaningful objectives.
Defined objectives
Specific, measurable results to be attained in pursuit of a broader corporate or financial goal
Define target market
A pre-selected group of potential buyers for whom a product is created and to whom a marketing campaign is directed
Define macro environment
The macro environmental factor is a major trend or force in society that influences market conditions. Macro environmental factors such as demographics, economic, social and cultural factors, political and legal factors, technology, and the natural environment are all beyond a companies control but must be monitored and responded to
Defined micro environment
Micro micro environmental factor is a key player or other factor in the immediate marketplace that affects a companies ability to do business micro environmental factors such as a company’s markets, competitors, producers and suppliers, marketing intermediaries, and Publix are controllable to the extent that a company can make business decisions about them. For example, which suppliers of raw materials Will be selected, which marketing intermediary will be hired to help promote products, and what strategy will work best against a competitor.
Marketing plan
A written statement of the product, pricing, promotion, and distribution strategies that will be implemented over a defined period, often one year, to achieve long-range goals
Define marketing objectives
A written statement given direction to an organizations short term product, pricing, promotion, and distribution decisions.
Define marketing planning
The process of identifying an action plan for attaining long-range marketing goals, of implementing that plan, and of measuring and evaluating its success
Define marketing research
The function that links the consumer, customer, and public to the marketer through information-information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process
Define marketing strategy
A process that encompasses the four Ps of the marketing mix-product, price, promotion, and distribution or place -to attract the defined target audience
Generational marketing
Using an understanding of the background of a group of people and the impact of life events on their outlook to present a more acceptable product or service to that group of people
Define secondary data
Data collected by a third-party and made available for others to use. The US statistical abstract is an example of secondary data. Secondary data is first to use in market research.
Define primary data
Data collected directly from original sources for a specific purpose. Findings based on answers to questionnaires administered to individual customers or prospects are an example of primary data
All bank, regardless of size, should have readily available and up-to-date information relating to what six things
The banks geographical market
its customers
its potential customers
it’s competition
it’s position relative to the competition
the awareness and perception of the banks brand
Define customer profile
Description of the distinctive attitudes and personal characteristics of the typical consumer who buys a product
What is an MCIF
Marketing customer information file, a software system that can sort and analyze customer information and serve as a customer information database
What is an MIS
A marketing information system is the people, computers, and procedures in an organization that are responsible for the collection and analysis of market data and the subsequent distribution of this intelligence to market management for use in planning and decision-making. It is a system that comprises both hardware and software. Because of its broad scope, tremendous capacity, and ability to process great quantities of information quickly, it is often called a universal marketing database or data warehouse.
What is a marketing intermediary
A third-party that helps the seller promote and distribute the product to the consumer
What are the six steps involved in conducting a marketing research study
Defining the problem planning and designing the research project. Collecting the data. Analyzing the data. Reporting the research findings. Integrating the data into planning
Name up to eight distribution channels
Branches. Phone. ATM. Online banking. Plastic cards. Mobile banking. Virtual branches and video. Intermediaries.
Define strategic planning
The vision and mission of the business defining its existence and purpose. Strategic marketing plan and complements the organizational strategic planning
Defined strategy
The specific method devised for achieving an objective
Concentrated marketing
The practice of designing a single product and marketing strategy to appeal to one market segment. Also known as single segment marketing
Concept testing
The process of trying out a new product or marketing approach on a selected group of consumers. It measures reactions to an idea rather than actual buying behavior. See also test marketing
Define demographics
The study and analysis of population characteristics such as age, income, education, occupation, sex, and race
Define focus group
A group of people brought together in an informal setting to be interviewed concerning their opinions of specific products, services, and marketing ideas. Responses may not be representative of a larger, scientifically selected population. Ideal size is 10 to 12.
Define goal
A broad statement of direction that the succinctly describes with the organization wants to achieve
Define elastic and inelastic
Elastic-a condition in which demand changes quickly and dramatically in response to a change in price
inelastic-a condition where demand either changes slowly or not at all in response to a change in price
Define market
A market consists of all of the potential customer sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want
Define market expansion
Finding new markets for existing products
Define market penetration
Selling more of existing products to current market
Define market profile
A description of the geographic geography, housing, population, and economic activity in the primary area, the densest concentration of customers, and secondary area, a sparser concentration of customers, where a product is sold
Define market segmentation
The process of dividing a market into subgroups, each identifiable by its specific preferences or needs, so that distinctive products can be developed and sold profitably to each.
Define market share
One sellers portion of the total sales of a product, usually stated as a percentage
Define marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in a way that benefit the organization and its stakeholders
Define marketing channel
As applied to services, any means of increasing the availability or accessibility of the service that also increases its use or the revenues from its use. Also called a channel of distribution or distribution channel
Define marketing concept
And approach to business that makes marketing a central element of the business; a methodology that enables all of an organizations divisions to focus their efforts on those activities that satisfy customers needs by providing them with products and services they want and that earn appropriate margins for the company and its shareholders
Define marketing function
Various operating activities, including research, product development, advertising, and strategy that, together, constitute marketing
Define marketing management
The planning, implementation, and evaluation of programs that sell goods and services in a way that both satisfies a consumer need and the results in a profit for the seller, carried out in an integrated framework, and in a socially responsible manner.
Define demarketing
The use of a marketing strategy to decrease demand for a product or service
What are the four key steps in the planning phase for a marketing plan?
Situation analysis, objective setting, target market selection, strategy formulation
Marketing planning benefits from striving for three important qualities. What are they?
Uniqueness, being able to clarify the unique benefits of the bank. Sustainability, being able to perform consistently and repeatedly. Relevance, being able to connect to the staff in the marketplace.
What are the five prerequisites for planning?
Senior management support and involvement. Cooperation at all levels of the bank. Willingness of management to conduct the required research. Designated responsibility for implementing the plan. Assigned accountability is for communications. Recognition that the plan will not be perfect and unchanging
Define tactic
A specific action taken to attain a goal. Tactics determine who will do what when and at what cost
Define undifferentiated marketing
The practice of designing a single product and a marketing strategy to appeal to the greatest possible number of consumers, also known as market aggregation
Define differentiated marketing
The practice of designing unique products and specialized marketing strategies to meet the needs of two or more market segments, also known as multiple segmentation. A variation is to offer one basic product but use distinctive marketing strategies to appeal to each segment.
Define vision statement
A statement setting the tone and overall stage for how the organization is and will be operated into the future
Defined mission statement
The mission statement governs the overall direction and purpose of the bank it is a brief, communicable, high-level statement that defines the institutions reason for being. It should identify the businesses the the institution wants to be in, it’s target markets, and the way it plans to compete.
Discuss the eight step process for marketing directors in formulating strategies
Step one: all managers and departmental supervisors should review the banks corporate objectives. Step two: review both the corporate objectives and the situation analysis with all management personnel together. Step three: have all managers go back to their department and, working with senior staff, further refine the departments objectives and overall strategy in addressing it’s markets and then prepare a document about them. Step four review each managers objectives to determine whether they are realistic and consistent with the banks mission and corporate objectives and if they support the objectives that marketing created as a benchmark. Step five: meet with managers to finalize the objectives for each department of the bank. Step six: the managers go back to their departments a workout specific strategies and tactics for accomplishing the objectives and calculate ballpark cost for assisting marketing. Step seven: the manager submit their production budgets which are then consolidated to come up with the projected net income. Step eight: department heads and staff develop the specific strategies or tactics for each staff member’s role in executing team objectives
What are the five principle segmentation alternatives?
Geographic segmentation. Demographic segmentation. Psychographic segmentation. Volume segmentation. Benefit segmentation.
Define psychographics
The study and analysis of the attitudes, interests, and opinions that influence buying behavior
Define positioning
The art of promoting a product to make a distinct impression about the product in the consumers mind
Define frequency
An indicator of how often, or number of times, a target has received a communication from an organization
Define recency
An indicator of how recently a target has received another communication from an organization
Define marketing management
The planning, implementation, and evaluation of programs that sell goods and services in a way that both satisfies a consumer need and the results in a profit for the seller, carried out in an integrated framework, and in a socially responsible manner.
Define demarketing
The use of a marketing strategy to decrease demand for a product or service
What are the four key steps in the planning phase for a marketing plan?
Situation analysis, objective setting, target market selection, strategy formulation
Marketing planning benefits from striving for three important qualities. What are they?
Uniqueness, being able to clarify the unique benefits of the bank. Sustainability, being able to perform consistently and repeatedly. Relevance, being able to connect to the staff in the marketplace.
What are the five prerequisites for planning?
Senior management support and involvement. Cooperation at all levels of the bank. Willingness of management to conduct the required research. Designated responsibility for implementing the plan. Assigned accountability is for communications. Recognition that the plan will not be perfect and unchanging
Define tactic
A specific action taken to attain a goal. Tactics determine who will do what when and at what cost
Define undifferentiated marketing
The practice of designing a single product and a marketing strategy to appeal to the greatest possible number of consumers, also known as market aggregation
Define differentiated marketing
The practice of designing unique products and specialized marketing strategies to meet the needs of two or more market segments, also known as multiple segmentation. A variation is to offer one basic product but use distinctive marketing strategies to appeal to each segment.
Define vision statement
A statement setting the tone and overall stage for how the organization is and will be operated into the future
Defined mission statement
The mission statement governs the overall direction and purpose of the bank it is a brief, communicable, high-level statement that defines the institutions reason for being. It should identify the businesses the the institution wants to be in, it’s target markets, and the way it plans to compete.
Discuss the eight step process for marketing directors in formulating strategies
Step one: all managers and departmental supervisors should review the banks corporate objectives. Step two: review both the corporate objectives and the situation analysis with all management personnel together. Step three: have all managers go back to their department and, working with senior staff, further refine the departments objectives and overall strategy in addressing it’s markets and then prepare a document about them. Step four review each managers objectives to determine whether they are realistic and consistent with the banks mission and corporate objectives and if they support the objectives that marketing created as a benchmark. Step five: meet with managers to finalize the objectives for each department of the bank. Step six: the managers go back to their departments a workout specific strategies and tactics for accomplishing the objectives and calculate ballpark cost for assisting marketing. Step seven: the manager submit their production budgets which are then consolidated to come up with the projected net income. Step eight: department heads and staff develop the specific strategies or tactics for each staff member’s role in executing team objectives
What are the five principle segmentation alternatives?
Geographic segmentation. Demographic segmentation. Psychographic segmentation. Volume segmentation. Benefit segmentation.
Define psychographics
The study and analysis of the attitudes, interests, and opinions that influence buying behavior
Define positioning
The art of promoting a product to make a distinct impression about the product in the consumers mind
Define frequency
An indicator of how often, or number of times, a target has received a communication from an organization
Define recency
An indicator of how recently a target has received another communication from an organization
Which type of marketing refers to analyzing your customers transactions to identify trigger events or flags that indicate a customer’s readiness to buy a financial service, and then forwarding that customers name to a sales person?
Real-time marketing
If your bank decides to shift from being product focus to customer focused the first major decision facing the bank is to:
A. Identify the banks target market
B. Identify which customer markets have the greatest potential.
C. Determine the banks market segmentation approach.
D. Determine satisfaction levels among current employees.
C. Determine the banks market segmentation approach. Which segments do we have, want, need, and how do we want to go about getting in retaining those segment
Calculate ROI:
ad brings in $1mm in deposits.
Net int margin on the $1mm is 3.5% (ignore added fee income for now)
That means the ad merited $______ in new revenue.
If it cost $10,000 to run the ad campaign, the ROI would be _____%
$1mm * 3.5% net interest margin = $35,000 incremental profit for the $1mm deposits.
$35,000 rev - $10,000 exp = $25,000 net revenue
$25,000 net rev / $10,000 = 250% ROI
