Selling the Bank
Banking & Finance
Bellringer
• Before you begin this chapter, see what you
already know about “Selling the Bank” by
taking the chapter pretest.
• www.m.g-wlearning.com
Guess Who!
Video: “Selling the Bank”
• http://www.gwlearning.com/finance/9781605257785/stu
dent/ch11/video01.htm
Marketing and Promotions
• Explain how customer needs and
wants are used to identify a target
market.
• Describe the components of a
marketing strategy and how it is
developed.
Why?
Discussion
• Think about your favorite recent
commercial or advertisement. What was the
commercial trying to persuade you to do?
Was the commercial effective? Why or why
not? What similar tactics would you use if
you were trying to persuade someone to use
a bank?
Meeting Customer Needs
• Every customer has needs and wants
• Need: something a person must have to
survive (food, shelter, clothing)
• Want: something a person would like to
have (can survive without it)
How do a bank’s products and
services fit into a consumer’s
needs and wants?
• Every consumer needs money to purchase
or acquire items essential to life.
• To create a customer from a consumer,
banks need to give consumer what he/she
needs.
How does a bank give the consumer
what he/she needs?
Identifying a Target Market
• Design products/services to help meet
needs of the customers in community
served
• A market segment is a group of
consumers that share common wants and
needs
• By breaking consumers into segments,
banks can focus on likely customers
• A target market is the marketing
segment that will be the focus of the
marketing strategy
Demographic Market Segmentation
Education
Ethnicity
Age
Income
Family Size
Occupation
Gender
Geographic Market Segmentation
City
Neighborhood
Block
Region
Country
State
Psychographic Segmentation
Lifestyle
Activities
Hobbies
Habits
Interests
Opinions
Behavioralistic Segmentation
Purchase
frequencybirthday,
holiday,
graduation,
anniversary
Brand
Loyalty
Benefits
soughtmotivation for
purchase
Usage Rate
Answer the following questions in your
notes handout at this time.
(3 minutes)
1. Why is setting up a target market
helpful in marketing the bank?
2. What does a market segment of
consumers have in common?
How does a bank give the consumer
what he/she needs?
Matching Bank Products and Services to Needs and Wants
• Once target market is identified, bank can
match needs and wants of consumers to
products and services.
Matching Product Characteristics with
Target Market Needs and Wants
Characteristics of Mortgage
Loan (Product)
Needs and Wants of First-Time
Home Buyers (Target Market)
Small down payment
Small amount of money saved for
down payment
Competitive interest rate
Low mortgage payments
Few closing fees
Low closing costs
Roll closing costs into the
mortgage loan
Low closing costs
Flexible credit requirements
Approval with short credit history
No penalty for prepayment
Increased income over time
Developing a Marketing Strategy
• Advertising involves calling attention to a
product or service, commonly through the
use of paid announcements
• Only one part of marketing
• Marketing is the process of introducing a
product or service to the consumers who
can purchase it.
Aspects of
Marketing
Advertising
Public
Relations
Media
Planning
Market
Research
Marketing
Pricing
Sales
Strategy
Distribution
Customer
Support
Developing a Marketing Strategy
• Marketing
professionals develop
a plan that will help
the bank meet
customer needs while
making a profit
• Developed around the
four P’s of Marketing:
product, place, price,
and promotion
Product
• What products or
services meet the
needs of consumers in
the target segment?
• Examples: certificate
of deposit, savings
account, mortgage, or
mobile banking app
Place
• How will the product
be available to
customers?
• Examples: online, at a
bank branch, from an
ATM or smartphone;
regionally, nationally,
or internationally
Price
• How much will the
product cost the
consumer?
• Examples: fees and
interest rates are paid
as well as charged
Promotion
• How will the product
be announced?
• Examples: through TV
advertisements,
billboards, Internet,
social media, or a
combination of these.
Creating Promotions
• Promotion is an activity that increases
consumer awareness of a product
• Advertising a type of promotion
–
–
–
–
Distributing pens with bank’s logo
Sponsoring a city-wide event (concert)
Creating a website
Sending email messages or social media
updates
– Distributing calendars
– Holding seminars
Answer the following questions in your
notes handout at this time.
(3 minutes)
• How have the methods and locations
for promoting a product changed?
Creating Promotions
• Many regulations on promotions and
advertisements
• Interest rates must be stated in specific ways
• Select terms must be avoided or included
• If a certain balance must be maintained,
must be stated
• “Member FDIC” must be included in
anything
• HUD (Housing and Urban Development)
requires “equal-housing lender” on
mortgage products
Answer the following question in your
notes handout at this time.
(2 minutes)
• When must the phrase Member FDIC
appear in a bank’s communications?
Making a Sale
• Personal selling is
most common
– “hello”
– “how can I help you?”
– “is there anything else
you need?”
Making a Sale
• Cross-selling is a
• Also known as
personal selling
relationship-based
strategy that
selling
encourages existing • Requires interaction
customers to buy new
between bank
products or services
employees
based on their
• More relationships,
previous purchases
more likely to be loyal
to the bank
Making a Sale
• Event-based selling is
when a bank employee
contacts a customer
because of an event
that has recently
happened with that
customer.
• May trigger another
event
Answer the following question in your
notes handout at this time.
(3 minutes)
• Why is cross-selling sometimes
referred to as relationship-based
selling?
Activity
• Consider promotional techniques other than
commercial and print advertising.
• What are some other ways to advertise banking
products?
• Using information provided in your notes and
independent research, create a presentation
(PowerPoint or Prezi) of marketing ideas for a
bank. (email to kyshacoleman08@gmail.com)
• Present as if you are a bank marketing specialist
presenting marketing ideas to a board of
directors.
Complete the following questions
in your text packet:
•
•
•
•
Multiple Choice: 1-6, 8-10
True or False: 11, 13-14, 17-18, 20
Matching: 21, 24-26, 29-30
Open Response: 31-34, 38, 40
DUE 1 DAY AFTER COMPLETION OF
“MARKETING AND PROMOTIONS”
Bellringer (10 minutes)
• Create a chart listing some needs and wants
of consumers.
• In the second column, list the products or
services that banks provide to satisfy these
needs and wants.
Bellringer (10 minutes)
• Create a chart of target markets that
a bank might identify.
• Indicate on the chart which markets
you are included in or excluded
from.
Building Relationships
• Describe the elements that create
a positive image for a bank
• Explain the importance of
Why
customer service in keeping
know
this?
customers
Discussion
• What does the term customer service mean?
• Where have you heard this term before?
What are some qualities of good customer
service?
• Write your responses in the notes. Evaluate
how your answers match up with those
presented at the end of the lesson
The Bank’s Image
• A business’ public image is made
up of the ideas and opinions that
people have about the business
• Positive public image makes it
easier to hire and retain employees,
acquire new customers, and keep
current customers
Answer the following question in your
notes handout at this time.
(2 minutes)
• How does a positive public
image help a bank?
The Bank’s Image
• Bank must be seen as honest, stable, and an
important part of the community
• Economic strength of a community often depends
on its ability to get credit (helps it run and grow)
• Banks engage with communities they serve
(marathons, financial education, serve on civic
boards and chambers of commerce)
• When image is damaged, must be repaired (replace
managers, change how they qualify borrowers,
institute other policy changes)
Answer the following question in your
notes handout at this time.
(3 minutes)
• List four ways that banks
engage with the communities
they serve.
What is Customer Service?
• Customer service includes all interactions
between a customer and the bank.
• A customer is an individual, organization, or
business that purchases a product or service.
• Starts when bank and customer interact for the
first time
• Every interaction is an opportunity to impress
• Adds value to the bank and increases customer’s
loyalty
• Poor customer service = losing a customer
• Great customer service = keeping a customer
Employee Behavior
• Every bank employee is a customer
service representative
• Must avoid any behavior that is
unethical or inappropriate
• Costs much less to retain satisfied
customers than it does to acquire new
ones
Employee Behavior
• Employees should always:
– Address the customer by name
– Know the products and services that the
bank offers
– Apply their expertise to the customers’
needs to find the product that is right for
him or her, not just what is profitable for
the bank
– Exceed in the customer’s expectation for
service
Employee Behavior
• Building rapport (bond of mutual trust)
with a customer will increase his/her
satisfaction.
• Central to a successful and ongoing
business relationship.
• Employees should be able to explain
options bank offers
• When bank employees use what they know
about the bank and its products, they
contribute to its success
Answer the following question in your
notes handout at this time.
(2 minutes)
• Why is it important for banks
employees to be able to explain the
options the bank offers?
• Language
– Use speech and body language similar to that of the
customer
– Be aware of your nonverbal communication (and
customer’s)
• Cultural
– Find shared interests and experiences with the customer
– Be aware of cultural differences
• Other
– Create a positive environment
– Be open to doing something for a customer for no
immediate return
– Identify barriers between you and customer and work to
remove them
Employee Behavior
• Good or poor service will likely be
mentioned to others
• Word-of-mouth advertising is a type of
promotion in which customers tell others
about their experience with a specific
business.
• Banks cannot control this--only customer
service
Answer the following question in your
notes handout at this time.
(2 minutes)
• How do banks control word-of-mouth
advertising?
Activity: “Focus on the Customer”
(15 minutes in class—rest for homework)
Customer Service Offerings
• Reps are important. So are quality products
and services
– Locations
– Handicapped accessibility (ADA required)
– International services (credit/debit cards, travelrelated services)
– Secure website (online bill pay, account
balances)
Answer the following question in your
notes handout at this time.
(3 minutes)
• What are four customer-service
offerings that enhance a bank’s image
and generate customer loyalty?
Research Activity
• Research community events sponsored by local
banks.
• What are the most common types of events?
• Why do you think banks sponsor community
events like these?
• Write a summary of your thoughts on the
effectiveness of these events, as well as
suggestions for additional ways for banks to
maintain a positive public image.
Bellringer (10 minutes)
• Think about an occasion when you
witnessed inappropriate customer-service
behavior at any business.
• Write a short summary discussing the
encounter and what you think should have
been done differently.
Complete the remaining
questions in your text packet:
•
•
•
•
Multiple Choice: 7
True or False: 12, 15-16, 19
Matching: 22-23, 27-28
Open Response: 35-37, 39
DUE 1 DAY AFTER COMPLETION OF
“Building Relationships”