Session 4. Market Research

1.Why do Market Research? 2.Some Questions Market Research Can Answer 3.Market Research Tools Time: 2 Hours

1. Why Do Market Research? To understand the internal and external environment in which the bank is operating To identify the needs of existing and potential clients.

1. Why Do Market Research…cont. To enable the bank to respond to those needs and opportunities by: –Improving current marketing and promotion and outreach activities; –Refining existing products; –Developing new products; –Improving delivery systems To improve the bank’s ability to compete

2. Why…Market Research: Questions Market Research Can Answer: A. Client-focused concerns and issues Are my customers satisfied? What are their preferences? Why am I losing clients? Why am I not getting more clients? What is the image of the bank in the community? Is my clientele the right one? Who do I really want to reach? What is my growth rate and what is it a function of?

2. Why…Market Research: Questions Market Research Can Answer: B. Competition-focused questions What is my competition doing? How do I stay ahead of the competition? What products are most marketable? How can I improve my products? What new products can I introduce? Should I diversify my product? How am I differentiated in the market and how is this position perceived by the market?

2. Why…Market Research: Questions Market Research can answer: How do I reach the performance standard level of, for example: –Ratio of Time Deposits/Regular Deposits = 30/70 –Ratio of Deposits to Loan = 110% What do I need to know and do to be able to respond to outside threats? What do I need to know and do to take advantage of opportunities?

3. Market Research Tools Internal & external sources Primary & secondary sources Qualitative & quantitative

Nature Primary Internal Sources Feedback from front- line staff through structured meetings or FGD. Simple questions on loan applications or account opening forms Suggestion box Exit interview with clients closing accounts External Sources FGDs with clients, non-clients & drop-outs Participatory Rapid Appraisal (PRA) with key informants Customer Consultative Groups (CCG) Mini-surveys Competition Analysis (formal & informal sectors) Secondary Analysis of bank’s financial and management information Evaluation & monitoring reports Competition analysis (formal sector) Industry data from national networks (BSP; RBAP) Industry publications/websites (BSP; RBAP) 3. Market Research Tools

3. Market Research Tools: Some questions to ask new clients: What type of deposit account did client open? Is this the first time client is saving with the bank? What factors made the client decide to save with the bank? Where did client get information about bank services? How long did client wait before being served? Was client informed by the attending staff of the terms and conditions of the deposit product? Was client served by bank staff fast, just right or slow? Any suggestions for improving the product and service? Session 4. Handout 1

3. Market Research Tools: Sample Exit Interview Questionnaire: Reasons the depositor is closing the account Client satisfaction with aspects of bank service Does client have another deposit account with your bank? Does depositor intend to come back to the bank? Any suggestions for improving the product and service? Session 4. Handout 2

3. Market Research With existing clients With non-clients Former clients who dropped out (or with inactive accounts) Refer to Annex A for the process of conducting a focus group discussion. Tool: Focus Group Discussion (FGD)

Prepare a Plan: Things to Consider 1.What is the purpose of the FGD? 2.What will be your FGD Groups? 3.Prepare your guide questions ahead of time. What do you want to find out? What Questions do you want to focus on? (Limit the # of items to at most 8) 4.Date/Time and Venue: 5.Lead Person: 6.Facilitator & Documenter: 7.Requirements: Invitation; budget for snacks; Manila paper; pen; attendance sheet; pieces of bond paper

FGD Activity Plan Major Activity OutputSchedule Lead or Task Coordinator Require- ments

Role Play: FGD with existing depositors Need: 6 Volunteers as savings depositors A facilitator A documentor Supplies: Manila paper; pentel pen; name tags FGD ROLE PLAY