|Type of paper:||Course work|
|Categories:||Banking Financial analysis Strategic marketing Customer service|
Market segmentation involves critical analysis and evaluation of the similarities and differences between the wants, needs, and psychographics of customers in the locality. Banking services require the identification of an appropriate market segment. A market segment is normally a group of people with common characteristics like buyers' behavior and purchasing powers (Rugimbana & Spring, 2009). Each market segment is different and has unique characteristics that make it different from other groups (Rugimbana & Spring, 2009). As a marketer and advertiser, I apply different criteria in analyzing the appropriate market segment for the bank. Some of the components that we use as marketers and advertisers include the needs wants, and psychographics of the customers. Each market segment is usually approached differently to determine appropriate marketing goals and increase return on investment (ROI) for the bank. Determination of an appropriate market segment for the bank is an important marketing strategy to be used to increase the profits made from the business operations. Psychographic factors include the personalities, character traits, opinions, lifestyles, and interests of the consumers within the premises of the banks.
Similarities and Differences between the needs, Wants, and Psychographics of the Current Market Segments
The needs, wants, and psychographics of the bank's customers have various similarities and differences. The analysis of the similarities and differences of the needs, wants, and psychographic factors are important in the identification and implementation of appropriate marketing strategies based on consumer's satisfaction in the bank. To start with the similarities, the needs, wants, and psychographics depends on the customers' behavior and level of education. For example, the customers of the bank are elderly people who do not consider using modern technology in performing all banking operations in the financial institution. Also, the needs depend on the interests, and opinions of the customers in the bank. The second similarity existing among the wants, needs, and psychographics is that the three factors affect the marketing strategies to be applied in the bank because they determine the potentials of the clients to take loans from the bank.
The analysis of the current market segment also involves the determination of the differences existing among the needs, wants, and psychographics of the consumers in the bank. The psychographics is affected by the current health status of the customers while the needs and wants depending on the physical conditions. For example, the psychographics of the elderly customers of the bank affect the performances of the organization because require face-to-face interaction with the employees due to their health condition. On the other hand, the wants and needs of the customers forced the management to perform all of the operations manually due to their perceptions and physical status in society.
Important Messages from the Branding Perspective for the Bank
The main focus of the bank is to promote its operations and increases profits. The identification of essential messages/concepts from the branding perspective enables the bank to achieve its desired goals. The first message from the branding is the focus on increasing its ROI. Increasing the amount of return on investment is key in determining the level of business success in the bank. Most of the successful financial institutions/banks operating in the state measure their performances using their returns on investment records. The ability to tie specific revenue outcomes from the marketing initiatives enables the bank to close its loops.
The second message is applying the four "Be's" of branding in all marketing and advertising operations to promote customer satisfaction and retention in the bank. Be consistent in the development of an effective brand. A quality brand keeps customers close to the bank. Great brands are normally consistent across all marketing channels; therefore, promoting the profits made by the bank. The second "Be" of branding is to be sincere because customers crave authenticity. The markers are required to deliver accurate and authentic information about the services offered by the bank. Be focused because the process of creating a quality brand requires an appropriate vision and mission statement. The employees in the financial institution are required to be focused while performing all operations assigned by the bank's management. Lastly, be intentional to reduce losses and maximize profits. Effective branding and marketing require appropriate leadership skills.
Why the Messages from Branding Perspective Appeal to the New Market Segment
The messages from the branding perspective are important because they contribute to effective marketing strategies that target the new market segment and retain the current one in the bank. Being consistent enables the bank to develop appropriate marketing strategies that relate to the needs of the clients. The new market segment involves the young generation that prioritizes on the use of technology in performing all banking services within the premises of the financial institution. Also, focusing on the abilities of the bank to increase its ROI appeal to the new market segment because it involves the use of technology in the bank. Being intentional in all operations enables the new customers to identify the seriousness of the bank; therefore, improving the stricture of the new market segment in the financial institution.
Application of Digital Approach and its Importance in the Promotional Channels
Digital approach is important for ensuring effective promotional channels in the bank. The new market segment comprises of the young generation (Rashid & Hassan, 2009). Digital approach involves the uses of modern technology in performing most of the banking operations in the financial institution. The new market segment prioritizes on the use of the digital approach in the bank because the targeted customers comprise young people who require to be served through the internet and other components of technology in all aspects of life. Digital approach improves customer satisfaction and quality of services provided in the services offered in the bank. The provision of quality services in the bank leads to the attraction of many customers. Customer satisfaction increases the returns on investment obtained by the bank; therefore, minimizing the chances of being eliminated from operation by the developed financial institutions.
Communication Channels for the New Market Segment
Appropriate communication channels promote the interaction between the marketing personnel and the customers in the newly identified market segment. First, the use of social media as a communication channel enables the bank to analyze and evaluate the needs and psychographics of the new market segment. Since the new market segment comprises of young people, the use of social media as a communication channel in improves the marketing and advertising operations in a bank. Social networking platforms like Facebook, Twitter, Instagram, and YouTube provide immediate communication channels for marketers to perform their tasks (Mitic & Kapoulas, 2012). The use of social media increases the number of customers because most of the young people in the new segment use at least two social networking platforms daily. The second communication channel to be applied for the new market segment is the use of official websites. The bank is required to create an official website that can be freely accessed by customers. The official website is normally required to contain all important information about the services offered by the bank to its new and potential customers (Liu, Li, Peng, Lv & Zhang, 2015).
Marketing is an important operation for all business organizations. The critical analysis and evaluation of the characteristics of the market segment are important in determining the number of profits made in the bank. Marketing and advertising involve the identification of essential communication channels. A digital approach is key in ensuring an effective promotional channel for the market segment consisting of young people.
Mitic, M., & Kapoulas, A. (2012). Understanding the role of social media in bank marketing. Marketing Intelligence & Planning, 30(7), 668-686. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/02634501211273797/full/html
Liu, Y., Li, H., Peng, G., Lv, B., & Zhang, C. (2015). Online purchaser segmentation and promotion strategy selection: evidence from Chinese E-commerce market. Annals of Operations Research, 233(1), 263-279. Retrieved from: https://link.springer.com/article/10.1007/s10479-013-1443-z
Rashid, M., & Hassan, M. K. (2009). Customer demographics affecting bank selection criteria, preference, and market segmentation: a study on domestic Islamic banks in Bangladesh. International Journal of Business and Management, 4(6). Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3263078
Rugimbana, R., & Spring, A. (2009). Marketing microfinance to women: integrating global with local. International Journal of Nonprofit and Voluntary Sector Marketing, 14(2), 149-154. Retrieved from: https://onlinelibrary.wiley.com/doi/abs/10.1002/nvsm.340
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