Strategy

Question 1

What is an objective when it comes to marketing strategy?

Answer 1

An objective is a broad statement of direction that describes what the bank wants to achieve.

Question 2

What is a goal as it pertains to marketing strategy?

Answer 2

Marketing goals should address specific, measurable, results that are attained in pursuit of a broader corporate or financial goal.

Question 3

What are strategy and tactics as it pertains to marketing strategy?

Answer 3

Strategy is what (method) will be done and tactics are how (who/what/when/cost) it will be done.

Question 4

What are the 4 components of a marketing strategy?

Answer 4

Question 5

When does ROMI come into play during the marketing strategy?

Answer 5

When setting the objectives and goals management might discover there’s not enough return to peruse the goal.

Question 6

What is a vision statement?

Answer 6

A vision statement sets the tone and overall stage for how the bank is and will operate into the future.

Question 7

What is the mission statement?

Answer 7

The mission statement governs the overall direction and purpose of the bank. It establishes the banks short term and long term objectives. A mission statement gives the bank its unique identity and differentiates it from the competition.

Question 8

What is a corporate or financial goal

Answer 8

Corporate/financial goal is set by the executive management team and primarily based on the bank financial statements. They tend to be quantitative and long range in their focus.

Question 9

What are the four elements of the product/market expansion matrix?

Answer 9

Market penetration, product expansion, market expansion, diversification or product/market expansion

Question 10

What is market penetration?

Answer 10

Selling current products to current markets

Question 11

What is market expansion?

Answer 11

Selling current products to new markets

Question 12

What is product expansion?

Answer 12

Developing in selling new products to current markets

Question 13

What is product/market expansion?

Answer 13

Developing and selling new products to new markets

Question 14

What is the last step in marketing planning before the budget can be determined?

Answer 14

Tactics are the last step in the planning process before the allocation of financial resources

Question 15

What is a tactic?

Answer 15

Tactics describe what specific actions are to be taken, who will take them, when, and at what cost.

Question 16

What is the last step of the strategic marketing plan?

Answer 16

Budgeting is the last step in the strategic marketing plan

Question 17

What 5 core activities are usually included in the banks marketing budget?

Answer 17

1. Advertising in content marketing
2. Sales promotions
3. Marketing research
4. Training in sales and customer service
5. Public relations

Question 18

What are the five types of budgeting methods?

Answer 18

1. Percentage Method
2. Competitive Parity
3. Incremental method
4. Objective and task method
5. Revenue generation model

Question 19

What is the percentage method of budgeting?

Answer 19

The advertising expenditure is based on the size of the banks assets or deposits. This method is often slide because it is based on past performance rather than on current or future objectives. It views assets or deposits as the cause of advertising rather than recognizing that increases in these variables might be the effective advertising. And it discourages aggressive advertising and reduces advertising spending during periods of economic slowdown.

Question 20

What is the competitive parity method of budgeting?

Answer 20

This method is also known as follow the leader. A bank determines what its competitors are spending on advertising and simply follow their lead. This method is flawed because it assumes that the market will respond in the same way and it feels to take an affect the variations in creativity different uses in media and various internal capabilities. I

Question 21

What is the incremental method of budgeting?

Answer 21

A bank will increase their advertising budget by certain percentage each year. The percentage may take into account the rate of inflation or the growth rate of the bank or it may be dictated by a planner or budgetary whose primary objective is to make the bottom line show a targeted return on assets. This method does not take into account the desired objectives of advertising and the most cost effective ways to obtain them.

Question 22

What is the objective and task method of budgeting?

Answer 22

The bank bases its budget on what it will cost to meet the marketing objectives it has defined for the entire organization and rolled into the strategic marketing plan. The bank then weigh this cost against the expected net benefit of the new business to ensure that the cost of advertising will not reduce the profit margin beyond acceptable limits on newly acquired deposits or loans. This is an exercise in leveraging capital.

Question 23

What is the revenue generation method in budgeting?

Answer 23

This method quantifies the impact of the marketing program on four key areas of the bank: account acquisition, account retention, account balances, and account usage. The calculations for each of these areas depends on the agreements between the marketer and the CEO and CFO on the method of computation and white variables to include.