1. CH3 THE STRATEGIC MARKETING PROCESS

2. INTRODUCTION
Strategic marketing is a management process that involves the development of marketing plans, careful implementation, evaluation of their results and the adjustment and fine-tuning of the whole package. It goes beyond product promotion campaign to create a long term business position and philosophy.

3. The marketing process starts with the marketing plan, that is a discipline that consists of 4 steps which answers the following questions: 1- WHERE ARE WE NOW? 2- WHERE DO WE WANT TO GO? 3- HOW ARE WE GOING TO GET THERE? 4- HOW WILL WE KNOW WE’VE ARRIVED?

4. MARKETING MANAGEMENT PROCESS
All bank employees are involved in marketing. Marketing takes place every time a customer contacts the bank. So, the trick is to make the most of these marketing opportunities and to be prepared for them in advance. In order to plan for, and be prepared for marketing opportunities the bank should implement a marketing management process

5. WHAT IS MANAGEMENT?
“it’s the process of planning, implementing, and evaluating the efforts of a group of people toward a common goal.” Planning in the management process attempts to control the organisation's future position. It includes all the activities that lead to the definition of goals and how to achieve them. There are 3 fundamental steps in management: Planning, implementing and evaluating.

6. Evaluating is critical for learning from experience and in improving their performance in future. Management process is a circular flow because managing should be dynamic and on going. Developing the market plan isn’t a one time event, and isn’t set in stone. Any unforeseen circumstances, at any time can require modification of the plan. The flexibility to change, modify, adapt and fine-tune must be built into the process.

7. WHAT IS MARKETING MANAGEMENT?
“It’s marketing conception in action”. It involves planning, implementing and evaluating activities aimed at meeting the objectives of customer satisfaction at a profitable volume, carried out in an integrated framework and in a socially responsible manner. Philip Kotler’s- “marketing management is the analysis, planning, implementation and control of programs designed to create, build and maintain mutually beneficial exchanges and relationships with target markets.

8. TASK OF MARKETING MANAGEMENT
The goal is to CONTROL market demand. Here control is used instead of increase, because sometimes the goal is to decrease market demand (demarketing). One example is increasing interest rates to reduce loan demands when banks have limited money supply. Developing a marketing plan requires 4 key steps: 1.Situation analysis 3.Target market selection 2.Objective setting 4.Strategy formulation

9. THE MARKETING PLANNING PROCESS
Marketing planning- an ongoing process, involves devising the strategy for carrying out the business’s goals. Marketing plan- the outcome of the marketing planning process for a particular period, describes the specific tactics and time frames those strategies will require. Dwight D. Eisenhower- “plans are nothing; planning is everything” (The process is important, not the result/document).

10. A marketing plan ensures the right questions are being asked
A marketing plan ensures the right questions are being asked. Without direction (a plan) an objective/effort is likely to be less effective.
The marketing plan should answer the four essential marketing questions:
Where are we now?
Where do we want to go?
How are we going to get there?
How will we know we’ve arrived?

11. CONDUCTING SITUATION ANALYSIS
Before setting market objectives the Bank must go through a detailed self-examination, where banks environment data is summarized and evaluated.
Situation analysis answers the “where are we now?” question and involves:
Gathering of historical data on the bank and it’s competitors
reviewing the markets/segments in which the bank operates
Evaluating external factors(macroenvironment and microenvironment) that inflences the banks markets

12. Situation analysis must be based on research
Situation analysis must be based on research. Conclusions drawn about factors affecting the market and the bank must be grounded in solid data. Marketing research- collecting information about the bank, its competitors, the market and environmental forces affecting the bank. The product of situation analysis is a summary of the bank’s strengths and weaknesses. Bank management use this information to educated decisions that are in line with the bank’s objectives.

13. SETTING MARKETING OBJECTIVES
Used to answer “where do we want go?” Evaluating situation analysis provides the basis for developing marketing objectives- written statements detailing what the bank would like to accomplish in a specific period. Marketing objectives should have the following characteristics:

14. Should help the bank strive to achieve excellence, yet be realistic and attainable
Should be measurable, regardless of whether the objective relates to something quantitative or qualitative.
Should be consistent with one another
Should relate to bank’s strategic objectives. Any one of bank’s overall objectives may translate into a number of marketing objectives.

15. SELECTING TARGET MARKET
Most firms aim their marketing strategies at more than one target market at a time. They do this by using a variety of marketing mixes. Today’s marketing customer information files (MCIF) system allows banks to sort and select target markets in infinite various ways. With MCIF it’s possible to add information from outside sources and combined it with internal information to create a more comprehensive customer information file.

16. DESIGNING MARKETING STRATEGY
Marketing strategy encompasses 4P’s of marketing mix and seeks to attract the target audience. The process of selecting a target market identifies potentially profitable market segments, each segment has homogenous needs that can be satisfied by using the same marketing mix. Although each element of the marketing mix is itself important, the blending and coordinating of the elements is important to successful implementation of the marketing strategy.

17. MARKETING MIX STRATEGY
1) PRODUCT STRATEGY For target market, the product is an means to an end. It’s the provider of benefits. The success of a product is contingent on how well it compares with it’s competitors in satisfying target market’s needs/wants. Firm that excels in product strategy develop and offer products designed specifically to solve the problems of their target markets.

18. 2) PRICING STRATEGY Selling a product at a price that target market sees as commensurate with the product’s perceived benefits is key to marketing success. Banks were limited in their pricing strategies, because of regulations on interest rates on deposits and loans. Since deregulation, banks can set their own price strategies.

19. 3) PROMOTION STRATEGY Focuses on communicating the availability of products/services to target market. Advertising campaigns, sales promotion, direct marketing and product publicity are promotions main elements. Development and implementation of attention getting, informative and persuasive communication techniques is vital to creating market awareness of bank’s product. Banks typically communicate through newspapers, magazines, radio, telly and the internet.

20. 4) DISTRIBUTION STRATEGY Is mainly concerned with making the product available at the desired time and place. The “right” product will only delivery a limited satisfaction if not available when and wear consumer want it. Two important elements are site location and the ease of access. Convenience of time lead to ATM’s everywhere, telephone and online banking .

21. IMPLEMETING THE PLAN
Implementing a successful marketing plan requires cooperation of both management and staff. To develop the product and bring it to the market, the marketing management manager needs the assistance and cooperation of the following divisions:
Computer programing- modify accounts
Operations- process checks, payments and paperwork related to servicing accounts
Legal services- write credit applications and loan agreement so they conform to regulations

22. Accounting- to establish accounts and reporting system necessary for tracking performance
Bank investments- assist in pricing of this particular use of funds.
Training- to instruct the branch staff in operational and sales aspect of the product
Branch staff- to sell service/product
Customer service- to understand and be prepared to answer questions about the new product.
Website staff- modify and update website to include the product

23. EVALUATING THE RESULTS
Before implementation stage, bank should determine how to measure progress toward attaining marketing plan’s objectives and who is responsible for that measurement. So the plan should answer “how will we know we’ve arrived?” Performance may be monitored through internal sources of information (reports) or external sources (customer surveys).

24. BENEFITS OF PLANNING PROCESS
Motivates executives to set marketing objectives and evaluate bank’s current situation and forces them to plan ahead.
Inspires banks to consider new opportunities, to stimulate growth and profit.
Makes employees more aware of their roles and responsibilities, relating to banks goal.
Leads to more efficient use of limited resources

25. 5. Enables bank executives to evaluate and improve marketing efforts because the plan includes performance standards and control measures. 6. Helps distinguish between factors in their control and those that aren’t (situation analysis) 7. More efficient use of time 8. Planning process typically results in bank’s being better prepared for responding to unexpected developments.

26. PREREQUISITES FOR PLANNING
Senior management support and involvement – top management must convey that the planning process is important
Cooperation at all levels- all employees must know their role in implementing the marketing program
Willingness of management to conduct required research- must continuously gather information from the marketplace; to study historical trends, competition, market shares and consumer characteristics.

27. Designated responsibility for implementing the plan- setting measurable objectives and assigning the responsibility for reaching them to specific individuals. Each manager should develop measurable objectives consistent with banks plan.
Recognition that the plan will not be perfect and unchanging- markets are in a constant state of flux, the successful marketer must be able to manage change. Planning must be an ongoing process with periodic reviews to measure progress and to make adjustments.