Effectively Managing the Consumer Bank

2012 Bank Study Project

John Matheny

512-585-5396

Project Objective

  • Develop a retail plan that is in alignment with both the institution’s culture and the primary characteristics of its trading areas.

Project Content

  1. Executive Summary: The Executive Summary should be a one or two page overview of the project designed to persuade executive management to adopt the plan. It should contain::
  2. A description of the process of gathering the information on which conclusion and strategies are based
  3. A brief summary of the conclusions of each section of the plan
  4. A persuasive argument regarding why this data and these conclusions are the correct direction for the institution to go with retail strategy and marketing
  1. Market and Industry Overview: Review the industry overview information presented during the course, conduct any additional research you feel would be appropriate and write a point of view comparing your institution to the industry trends.
  1. Key Competitors: List your primary competitors, by branch if possible, and provide a one paragraph description of each competitors’ strengths and weaknesses.
  1. Strategic Personality
  2. Conduct at least three interviews with senior management personnel from various components of the organization to discuss attitudes and approaches to the market.
  3. Include in each interview a question around goals and priorities. For example, grow retail deposits, increase cross sale ratio, improve service at the branch level, etc.
  4. From these interviews draw a conclusion regarding the strategic personality of your institution and write a one page description of your institution’s strategic personality containing:
  5. A one paragraph description of the strategic personality beginning with {{Institution Name}} is a {{insert Type…Prospector, Analyzer or Defender }}…
  6. A bulleted list of the institution’s characteristics that led you to the selection of the strategic personality type.
  7. Include interview guide, notes and summaries of the interviews in an Appendix.
  1. Marketing Organization
  2. Include an organization chart of your institution that illustrates the relationship of marketing to other major functional areas within the institution.
  3. Create a bulleted list of the functions for which marketing is responsible in your organization.
  1. Strategic Marketing Planning
  2. Using the Customer Experience Model select at least two strategies for each stage of the model.
  3. Explain how each strategy is consistent with the overall priorities and strategic personality of the institution.
  1. Branch Performance Assessment
  2. Conduct a market potential analysis of each of your branch trading areas including:
  3. Fair Share Analysis
  4. Households per total number of financial institution locations
  5. Basic demographic information, i.e. projected household growth, age, income,

(Note: It is understood that some institutions will not have access to demographic information without incurring the cost of purchasing the data. In those cases describe the process you would follow to gather and present the data. However, some data is available without cost through the FDIC website. Therefore, at a minimum, the project should include a Fair Share Analysis)

  1. Develop the performance criteria for your locations, list the criteria and provide a one paragraph explanation of why these criteria are relevant to your retail and marketing strategy.
  2. Using the Market Potential and Performance models presented during class, create your branch rankings.
  3. Using the Potential and Performance matrix categorize your branches into the four strategic and tactical categories.
  1. Sales Culture Implementation
  2. Discuss the overall attitude toward sales, cross selling and customer service within your institution at each of the following levels:
  3. Senior Management
  4. Line Management (Head of Retail, Head of Lending, etc.)
  5. Branch personnel (Branch Managers and customer facing individuals)
  6. Create a bullet point list of sales management activities that have taken place with your institution, i.e. sales training, incentive programs, coaching process, sales goals, etc.
  7. Describe the mechanisms in place both technologically and manually to set goals and expectations, measure results, report results, provide incentive structures
  8. Discuss the gaps that exist in the infrastructure for supporting a sales culture and what steps would be necessary to fill those gaps.
  9. Include commentary on any internal cultural or attitudinal issues that need to be addressed to put the appropriate infrastructure in place.
  1. Tactical Marketing Planning
  2. Using the Creative Platform Template create the direction for the marketing messaging for the institution
  3. Using the Marketing Planning/Marketing Calendar spreadsheet template summarize the marketing activities you recommend being included in your plan.
  4. Using the Marketing Planning/Marketing Calendar spreadsheet template and following the Task Method of budgeting fill in the budget numbers for marketing tactics.

POSITIONING BRIEF

{{Sample Bank}}

The purpose of this document is to provide direction for the development of marketing messaging and to ensure consistency in messaging and alignment of marketing with overall corporate strategy and culture.

Positioning Statement

The Bank is (brief description) i.e. American National Bank is a full service community bank…

Who:Primary Target Audience

What:What the bank delivers to the market

How:Service delivery statement

Customer Promise

A one sentence statement of differentiation.

Proof of Promise

How the institution will deliver on the promise.

Features

  • Articulate features of the banks products and services

Benefits

  • Customer benefits derived from the features

Communications tonality

Tonality and nature of communications reflecting the culture and approach of the bank.

Imperatives

Graphic standards, key messages and regulatory requirements that must be included consistently in marketing communications.

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