Topic ate - Attracting, Retaining and satisfying customers Flashcards
What is the marketing mix
The activities of a business that can be manipulated to achieve marketing objectives
What is in the marketing mix
Product
Price
Promotion
Place
People
Process
Physical evidence
How should a product be designed
A balance between the price paid, and the quality of service and the best way to promote it
What 2 questions do customer-led providers ask
What do customers need to do
How can a product be designed that allows them to do it
What must current accounts have
Allows payments to be made quickly
Be safe and secure
Allow the customer to become withdrawn to a certain agreed amount
Contain additional features if needed
What is USP
Unique Selling point
What does Santander’s 123 Current account contain
Cashback from 1-3% on household bills
0.3% interest on balances up to 20k
This is Santander’s USP
What is a HSBC Bank Account
A traditional current account with no add ons or monthly fees
What is a “HSBC Advance”
offers preferential rates on savings and requires customers to qualify for an optional arranged overdraft of a minimum amount.
What is a “HSBC Premier”
Aimed at people with a high income
Offers wealth management and international services for people who reach requirements
What is the “HSBC Bank Account Pay Month”
offers a range of services, including help
with managing money, and a small buffer for short-term emergency borrowing
What is product development
When providers monitor the performance of their products to see if they need to change them or not
What factors go into prices charged on Financial Products
The cost of providing the product
The Demand for the product
The prices charged by competitors
The image the provider wants to promote
What ways are financial products delivered
Face to Face
Online banking
Mobile Banking
Telephone Banking
What factors are involved in the channels that financial providers choose to promote
Cost
Target Market Segments - Old people go in branch
Effectiveness
Competitors
What is people in the marketing mix
A providers best asset
A banks employees are important part: They must have people skills and be well trained.
What is process in the marketing MIX
Include the computer hardware and software that runs the current accounts.
If the services aren’t good people will not want to bank through them
What was RBS’s process Failure
May 2013 RBS apologised for customers not being able to log onto accounts via their mobile app
The bank announced it was operationale again but reputation damage was done
What is Physical Evidence in the Marketing Mix
As a Financial product isn’t a physical thing, providers have to show that they are good.
This could be through a posh reception or good reviews from other consumers
What 2 reasons do individual providers advertise
To create awareness of a generic product
To influence people who have gotten a product to choose that particular brand
What are the 7 stages of successful advertising
Customer is unaware of product
Customer is aware of product
Customer understands product
Customer appreciates the positives of the product
Customer is convinced to buy
Customer buys
Customer continues to buy
What was Virgin Moneys advert in 2013 about
Its soulful approach to banking
What makes adverts stick for someone
Them seeing it repeatedly
what are the elements to good branding
Image
Colour
Distinctive word
Conceptional phrase
Advantages of a good brand
Product differentiation
Effective advertising
Brand Loyalty
Relative Price Insensitivity
Brand extension
What does good PR do
generates interest in a provider’s business
Prompts potential customers to look at their products
Triggers customers to buy again
reinforces the firm’s image to reassures existing customers
How did barclays help their pr in 2013
Their new head of PR antony Jenkins went on a mission to help promote barclays after the crisis. This includes going on bbc brekfast
What is sales literature
A generic term applied to the text created by a providers marketing department, It can be sent out to promote a provider
Who would a mailshot be made for
directed to people who are more likely to buy the product
What is direct selling
Sales that happen directly between customer and provider, without intervention from an IFA
Has direct sales channels increased over the last decades
Yes this is due to digital advancement
How do accounts made through impersonal channels normally end up
More likely to swap to a different provider
What is cross-selling
When someone has one product from a bank then goes on to get more, the bank they have savings with might be the bank they get their mortgage from
how to attract and retain customers
product satisfies customers needs
product designed to fit consumers circumstances
Product is sold as a fair and clean price
Product brought by fully informed consumer
Product delivered via a suitable channel
what are the most frequent provider complaints
About banking and credit
Reasons people complain about products
Personal current account users say that their online banking was down
Savings account owners unhappy about the low interest rate
many investment, pensions and annuities consumers say it is to confusing
Loan users saying it’s to hard to get a loan
The way insurers get out of paying out
What is a loss leader
A product that will lose the bank money but will make the consumer deposit more in the long term - a kids saving account into a savings account
What is in a HSBC MyMoney account
Can open with a £10 deposit
When they reach 11 they can open up a kids current account - They can also get a debit card
What is SavingsWatch
Nationwides scheme that will send a message when someones interest rate changes
Example of a loyalty account
HSBC have a “Loyalty Cash ISA”
What is transactional selling
When providers don’t try to create a relationship with the consumer and just push the product
When is transactional selling used
When the product is so good it can sell itself - Also the belief it develops brand awareness and is cheaper
What is the focus of transactional selling and relationship selling
Trans - Sales targets
Relation - Customer retention
What is the Orientation of trans and relation selling
trans - Services features
Relation - Customer Benefits
What is the Timescale of transactional selling and relationship selling
Trans - Short
Relation - Long
How is the customer service of transactional selling and relationship selling
Trans - Low emphasis
Relation - high emphasis
How is the Customer commitment of transactional selling and relationship selling
Trans - Limited
Relation - High
How is the Customer Contact of transactional selling and relationship selling
Trans - Limited
Relation - High
How is the quality of transactional selling and relationship selling
Trans - Concern of operation
Relation - Concern of all parties
Is transaction marketing the best method
NO
Before the financial crisis what marketing where banks doing too much
Transactional
Why were a lot of people buying PPI
Because they were told that if they didn’t get it they wouldn’t be able to take credit out
What is the “80:20” rule
States that 80% of the effects arise from 20% of the cause
What principle is the “80:20” rule
Pareto Principle
How does the 80:20 rule look at marketing
relationship - if 20% of the customer give 80% of the profit then the relationship was worth it
Transactional - The firm is losing money spent on the 80% of consumers giving 20% of the profit
How it the 80:20 rule used in finance
20% of consumers give 80% of the profit
