1. Marketing Concepts Terminology Perspective Examples

2. Services Knowledge Accurate/efficient Get know customer friendly Polite/courteous Confidentiality Responsive Service Professional Consistent

3. Difference Between Marketing and Selling…. Selling focuses on convincing customers to purchase what the firm produces… putting the emphasis on buying rather than satisfying. Marketing focuses on providing a product or service to meet customers’ needs and wants…putting the emphasis on satisfying rather than buying.

4. Services Customers Want… Reliable service Courteous treatment Clear understandable communications Competent staff Responsive service

5. Product/Service…… The object of any marketing effort. A product can be a good, service, idea, place or person that satisfies a customer’s need or want.

6. Product Tangible Stored/inventories Separate/maker Consistent quality Service Intangible Cannot be stored Cannot separate provider Inconsistent

7. Market…… Consists of all potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.

8. Marketing… The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individuals and organizational goals.

9. Key Elements of Marketing… Planning process Involves product, price, place and promotion. Product can be tangible (product) intangible (service) or idea. Seeks to meet, organization and customer needs. Marketing works through the exchange process.

10. Four “P’s” of Marketing Product or service Price Place (distribution) Promotion

11. The Four Ps of the Marketing Mix

12. Marketing Concept… Recognition by management that the profit objectives of the organization can best be reached by identifying the needs and wants of the target market and meeting those needs and wants through an integrated, efficient organization-wide effort carried out in a socially responsible manner.

13. Four Key Elements of Marketing Concept…. Customer orientation Profit Total company effort Social responsibility

14. Evolution of Marketing Concept… Decline in sales or market share Slow growth Change in consumer buying habits Increased competition Increased marketing expense

15. Five Stages of Marketing (of financial institutions)…. Pre-marketing era…up to early 1950’s Advertising/Sales promotions era…1950’s & 1960’s—increased competition Product Orientation era…1960’s & 1970’s Image and Positioning era … late 1970’s & 1980’s. Customer/Service Quality Orientation era…..1980’s & 1990’s.

16. The Evolution of Marketing in the Banking Industry Key events in the U.S. Market Environment. Brand names appear: Ford unveils Model T: start of hard-sell era in marketing First long-distance phone call: U.S. enters World War I Radio becomes tool for mass communication; first talking movie; stock market crash Depression: New Deal initiatives: television invented Key Events in Bank Marketing Business and industry are principal bank customers; banking operates in a seller’s market Federal Reserve System established Increased banking regulation Banking panic and bank “holiday”; bank failures Decade 1900s 1910s 1920s 1930s

17. The Evolution of Marketing in the Banking Industry (cont’d) Key events in the U.S. Market Environment. (cont’d) World War II; pent-up demand fuels economy; first calculation by computer; television Economic growth; emergence of marketing research; suburban sprawl begins; convenience foods; sales promotion era—giveaways, contests, trading stamps; brand image-building; public relations becomes popular Ecology awareness begins; first satellite TV relay; consumerism begins with auto safety push; Vietnam involvement Key Events in Bank Marketing (cont’d) Commercial banks hold 80 percent of industry deposits; thrifts hold 20 percent Banks get into advertising, public relations, sales promotion; first bank credit card; thrifts grow quickly Friendly, personal banking emerges; premium promotions; product innovation; mass credit cards, automated teller machines (ATMs) Decade (cont’d) 1940s (pre- marketing stage era) 1950s 1960s (sales promotion stage/era)

18. The Evolution of Marketing in the Banking Industry (cont’d) Key events in the U.S. Market Environment. (cont’d) Gasoline price escalation; Vietnam pullout Record inflation; recession begins; real estate values decline Key Events in Bank Marketing (cont’d) IRAs introduced; Keogh plans instituted; banks begin positioning and image creation; expansion through branching Marketing planning spreads; NOW accounts introduced; pricing becomes more of a concern; account packages proliferate; money market accounts introduced; Reg Q phase-out; interstate banking; commercial banks hold 60 % of industry deposits—thrifts 40%; banking industry holds 60% of total financial assets—nonbanks hold 40%; S&L crisis; more than 1,000 banks closed or assisted Decade (cont’d) 1970s (product proliferation stage/era) 1980s (marketing planning stage/era)

19. Five stages through which the banking industry has passed Early 1950s – pre-marketing era-operated in a sellers market, little need to market their product. Late 1950s- early 1960s -advertising and sales promotion to compete for consumer savings deposits 1960s-friendly bank stage-made offices inviting to retain customers, late 1960s product proliferation – credit cards and lines introduced 1970s-image and positioning stage-developed personalities and aimed strategies at specific market segments not mass media 1980s-marketing planning stage – planning discipline increasingly applied to bank marketing 1990s-customer and service quality oriented stage