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Libf UNIT 4 > Topic ate - Attracting, Retaining and satisfying customers > Flashcards

Topic ate - Attracting, Retaining and satisfying customers Flashcards

1
Q

What is the marketing mix

A

The activities of a business that can be manipulated to achieve marketing objectives

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2
Q

What is in the marketing mix

A

Product
Price
Promotion
Place
People
Process
Physical evidence

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3
Q

How should a product be designed

A

A balance between the price paid, and the quality of service and the best way to promote it

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4
Q

What 2 questions do customer-led providers ask

A

What do customers need to do

How can a product be designed that allows them to do it

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5
Q

What must current accounts have

A

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Allow the customer to become withdrawn to a certain agreed amount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

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6
Q

What is USP

A

Unique Selling point

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7
Q

What does Santander’s 123 Current account contain

A

Cashback from 1-3% on household bills

0.3% interest on balances up to 20k

This is Santander’s USP

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8
Q

What is a HSBC Bank Account

A

A traditional current account with no add ons or monthly fees

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9
Q

What is a “HSBC Advance”

A

offers preferential rates on savings and requires customers to qualify for an optional arranged overdraft of a minimum amount.

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10
Q

What is a “HSBC Premier”

A

Aimed at people with a high income

Offers wealth management and international services for people who reach requirements

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11
Q

What is the “HSBC Bank Account Pay Month”

A

offers a range of services, including help
with managing money, and a small buffer for short-term emergency borrowing

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12
Q

What is product development

A

When providers monitor the performance of their products to see if they need to change them or not

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13
Q

What factors go into prices charged on Financial Products

A

The cost of providing the product

The Demand for the product

The prices charged by competitors

The image the provider wants to promote

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14
Q

What ways are financial products delivered

A

Face to Face

Online banking

Mobile Banking

Telephone Banking

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15
Q

What factors are involved in the channels that financial providers choose to promote

A

Cost

Target Market Segments - Old people go in branch

Effectiveness

Competitors

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16
Q

What is people in the marketing mix

A

A providers best asset

A banks employees are important part: They must have people skills and be well trained.

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17
Q

What is process in the marketing MIX

A

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

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18
Q

What was RBS’s process Failure

A

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

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19
Q

What is Physical Evidence in the Marketing Mix

A

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

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20
Q

What 2 reasons do individual providers advertise

A

To create awareness of a generic product

To influence people who have gotten a product to choose that particular brand

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21
Q

What are the 7 stages of successful advertising

A

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

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22
Q

What was Virgin Moneys advert in 2013 about

A

Its soulful approach to banking

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23
Q

What makes adverts stick for someone

A

Them seeing it repeatedly

24
Q

what are the elements to good branding

A

Image

Colour

Distinctive word

Conceptional phrase

25
Q

Advantages of a good brand

A

Product differentiation

Effective advertising

Brand Loyalty

Relative Price Insensitivity

Brand extension

26
Q

What does good PR do

A

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

27
Q

How did barclays help their pr in 2013

A

Their new head of PR antony Jenkins went on a mission to help promote barclays after the crisis. This includes going on bbc brekfast

28
Q

What is sales literature

A

A generic term applied to the text created by a providers marketing department, It can be sent out to promote a provider

29
Q

Who would a mailshot be made for

A

directed to people who are more likely to buy the product

30
Q

What is direct selling

A

Sales that happen directly between customer and provider, without intervention from an IFA

31
Q

Has direct sales channels increased over the last decades

A

Yes this is due to digital advancement

32
Q

How do accounts made through impersonal channels normally end up

A

More likely to swap to a different provider

33
Q

What is cross-selling

A

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

34
Q

how to attract and retain customers

A

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

35
Q

what are the most frequent provider complaints

A

About banking and credit

36
Q

Reasons people complain about products

A

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

37
Q

What is a loss leader

A

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

38
Q

What is in a HSBC MyMoney account

A

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

39
Q

What is SavingsWatch

A

Nationwides scheme that will send a message when someones interest rate changes

40
Q

Example of a loyalty account

A

HSBC have a “Loyalty Cash ISA”

41
Q

What is transactional selling

A

When providers don’t try to create a relationship with the consumer and just push the product

42
Q

When is transactional selling used

A

When the product is so good it can sell itself - Also the belief it develops brand awareness and is cheaper

43
Q

What is the focus of transactional selling and relationship selling

A

Trans - Sales targets

Relation - Customer retention

44
Q

What is the Orientation of trans and relation selling

A

trans - Services features

Relation - Customer Benefits

45
Q

What is the Timescale of transactional selling and relationship selling

A

Trans - Short

Relation - Long

46
Q

How is the customer service of transactional selling and relationship selling

A

Trans - Low emphasis

Relation - high emphasis

47
Q

How is the Customer commitment of transactional selling and relationship selling

A

Trans - Limited

Relation - High

48
Q

How is the Customer Contact of transactional selling and relationship selling

A

Trans - Limited

Relation - High

49
Q

How is the quality of transactional selling and relationship selling

A

Trans - Concern of operation

Relation - Concern of all parties

50
Q

Is transaction marketing the best method

A

NO

51
Q

Before the financial crisis what marketing where banks doing too much

A

Transactional

52
Q

Why were a lot of people buying PPI

A

Because they were told that if they didn’t get it they wouldn’t be able to take credit out

53
Q

What is the “80:20” rule

A

States that 80% of the effects arise from 20% of the cause

54
Q

What principle is the “80:20” rule

A

Pareto Principle

55
Q

How does the 80:20 rule look at marketing

A

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

56
Q

How it the 80:20 rule used in finance

A

20% of consumers give 80% of the profit

Libf UNIT 4 (18 decks)

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