Product Officer Functional Lecture

Executive Banking School Objectives Retail Strategy Customer acquisition Branding & marketing Product & pricing Delivery optimization Bank Management Strategy Economic value & risk Capital considerations Analyst influences 360° executive management Financial Strategy Financial analysis Key performance drivers Earnings power Risk considerations

MarketSim Objectives

Functional Lecture Objectives To focus on areas of responsibility To review decision responsibilities To review the tool kit of worksheets To discuss common issues To answer common questions

The Role The Product Officer Analyzes the prior year's product activity Makes product and product feature change decisions Sets pricing strategy for the coming year Projects future product results for the retail balanced scorecard Helps Marketing Officer sets the marketing budget for products Performs other assignments applicable to the product development/product pricing function From the manual

MarketSim Process Analyze Plan Forecast Execute Review MarketSim Retail Bank MarketSim Process Flow

MarketSim Process

Analysis

Analysis

Product Financial Report

Product Financial Report

Customer Report by Segment: By Product

Customer Report by Segment: By Product

Planning & Forecasting

Products, Features and Pricing Appeal Worksheet

Product Worksheet

Product Worksheet

Product Worksheet

Product Worksheet

Product Worksheet

Execute

Checking Decisions

Checking Decisions

Credit Card Decisions

Review Results Don’t forget to “close the loop” and revisit your worksheets to see how well you did forecasting results

Best Practices How many Checking Accounts should we offer Funds Transfer Pricing Margin, margin, margin Remember that it is more to any given product than just its price!

Number of Checking Accounts 2, “3” maybe 4

Funds Transfer Price & Margin The MARGIN represents the amount that the bank will make on balances originated that year Bigger is better for the BANK, smaller for the CUSTOMER for both deposits and loans

More to Products than just Price

Today’s Assignment Complete a new Bank Condition Consensus Worksheet Review Customer Projection Worksheet Results – try to explain the outcome using the Competitive Report Using completed Product Appeal Worksheet to select products to offer Your Marketing Spend for your products was set yesterday Complete Product Worksheets reflecting your assumptions about changes to your products Complete the Customer Projection Worksheet Make Product Design and Pricing Decisions For this evening, complete the Delivery Appeal Worksheet A lot to do in a short period of time Each team member should become familiar with the Product Worksheet

Review Course Objectives To focus on areas of responsibility To review decision responsibilities To review the tool kit of worksheets To discuss common issues To answer common questions

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