CONTENTS Acknowledgments... iii Part 1: Marketing in Banking... 1 Introduction... 1 Objectives... 1 Chapter 1: The Structure and Function of Marketing... 3 What is Marketing?... 3 Key Elements of the Definition... 4 The Marketing Concept... 6 Evolution of the Marketing Concept... 9 Stages in the Adoption of the Marketing Concept... 13 How Business Strategic Planning and Marketing Planning Differ and Work Together... 15 Structure of Marketing... 21 Organizing the Bank for Marketing... 29 The Centralized Marketing Department... 30 The Location of Marketing within the Bank... 32 The Relationship of Marketing to Other Departments... 34 Notes... 40 Chapter 2: Managing the Bank... 41 The Business of Banking... 41 Asset Liability Management... 47 Reading and Understanding the Balance Sheet... 48 The Banking Environment... 55 Use of Federal Logos... 66 Compliance... 69 Competitive Environment... 71 Changing Buying Behaviors... 72 Chapter 3: Bank Product and Service Solutions... 75 Retail, Business and Trust Services... 75 v
Banks Offer Financial Solutions... 80 Part 2: Marketing Planning... 83 Introduction... 83 Objectives... 85 Chapter 4: The Marketing Planning Process... 87 Prerequisites for Planning... 87 Extended Planning Horizon... 88 The Importance of Marketing Planning... 88 Conditions Impacting Marketing Performance... 90 Motivation and Consumer Behavior... 91 Using Research to Know Your Market... 93 Macroenvironment Market Information... 93 The Microenvironment... 102 Notes... 105 Chapter 5: Preparing a Situation Analysis... 107 Situation Analysis Activities... 107 Where are We Now?... 108 Analysis of Macroenvironmental Factors... 113 Analysis of Microenvironmental Factors... 117 SWOT Analysis of Strengths, Weaknesses, Opportunities, and Threats... 123 Chapter 6: Conducting Research... 125 Improve Planning Decisions Using Research... 125 Definition of Marketing Research... 126 Using Marketing Research to Understand the Market... 128 The Marketing Research Process... 131 When and Why Results Are Used... 141 Marketing Information Systems... 143 CRM Systems... 145 Notes... 148 Chapter 7: Foundation, Focus and Branding... 149 Clarifying Corporate Direction... 149 Market Focus... 150 Product Focus... 151 vi
Setting Marketing Objectives and Goals... 151 Notes... 157 Chapter 8: Strategies and Implementation... 159 Strategies Support the Marketing Mix... 159 Developing Effective Strategies... 163 Segmentation and Target Market Selection... 165 Analysis Paralysis... 167 Segmentation Strategies... 169 Business Market Segments... 171 Target Market Selection... 172 Lifecycle and Generational Segmentation... 173 Strategy and Tactics... 181 Marketing Budget... 185 The Bank s Size and Scope... 186 Advertising s Share of the Marketing Budget... 187 How Advertising Dollars Are Spent... 191 Notes... 193 Part 3: Marketing Management... 195 Introduction... 195 Objectives... 195 Chapter 9: Preparing to Manage Marketing... 197 What Is Management?... 197 The Task of Marketing Management... 198 Notes... 201 Chapter 10: Brand Management... 203 Introduction... 203 What is a Brand?... 203 What is Branding?... 204 The Value of Brand... 205 Historical Challenges to Bank Brands... 205 Brand Management Process... 207 Discover the Brand... 207 Define the Brand... 211 vii
Deliver the Brand... 213 Develop the Brand... 217 Brand Longevity and Management... 219 Recommended Reading List for Brand Management... 221 Appendix A... 223 Brand Planning and Development Surveys and Questionnaires... 223 Chapter 11: Advertising and Promotion Communications... 239 Promotion in the Marketing Mix... 239 Product or Service Impact on Promotion... 239 Promotional Campaigns... 240 The Communication Goal... 241 Advertising... 245 Notes... 255 Chapter 12: Digital and Content Marketing... 257 Digital Marketing... 257 Digital Strategy and Content Marketing... 258 Optimizing Content Opportunities... 260 Social Media... 262 Social Media Fan Acquisition... 265 Social Media Fan Retention... 266 Social Advertising... 267 Social Selling... 267 Managing Social Media Efforts... 268 Social Media Risk Assessment... 271 Search Marketing... 278 Email Marketing... 286 Measuring Digital Performance... 287 Notes... 289 Chapter 13: Public Relations... 291 Managing Public Relations and Corporate Communications... 291 Community Relations... 293 Public Relations Responsibilities... 296 Benefits of the Broader Perspective of Public Relations... 312 Notes... 314 viii
Chapter 14: Direct Marketing and Data Management... 315 Combining Data and Marketing Activities... 315 Customer Information Management... 316 Competitive Products and Offers... 319 Effective Direct Communications... 320 Notes... 323 Chapter 15: Product Development and Management... 325 The Importance of the Product... 325 What is a Product?... 325 Product Item, Product Line, and Product Mix... 326 New Product Development... 330 Product Strategies... 334 Product Life Cycle Strategies... 336 Package (Systems) Selling... 340 Product Management... 340 Marketing (Distribution and Delivery) Channels... 345 Product Pricing... 354 Notes... 379 Chapter 16: Customer Experience Management... 381 Experience Based Marketing... 381 Define the Desired Experience... 382 Examine the Customer Journey... 383 Ensuring Loyalty and Not Just Satisfaction... 390 Notes... 392 Chapter 17: Marketing Staff and Project Management... 393 Department Management Skills... 393 Notes... 397 Chapter 18: Marketing Performance Assessment and Measurement... 399 Evaluating Marketing Performance... 399 Methods of Evaluation... 405 Important Calculations... 407 Using ROI for Campaign or Sales Planning... 407 Using ROI and ROMI to Define and Refine Your Planning and Execution... 410 Notes... 412 ix
Afterword... 413 Glossary... 417 Index... 421 x