Title

study

on

analysing

the

marketing

strategy

and

its

impact

on

organisations business growth and customer satisfaction: A case study on

Santander UK plc.
Introduction
Santander UK plc. (from here onwards referred to as Santander UK) is one
of the biggest names in banking in the UK. Santander UK provides banking
and financing services to millions of customers all over the UK on a daily
basis and is one of the UK's biggest personal financial services providers
and one of the largest companies to offer savings and mortgages in the
UK.The bank now has 14 million active customers, around 20,000
employees with 50 corporate business centres and 1010 branches.
Santander UK was founded in January 2010 in London after the merger of
Abbey National plc with the branches and savings business of Bradford &
Bingley plc. Alliance & Leicester plc joined the merger later in May 2010.
The three constituent companies have been well-recognized throughout the
UK for many decades before joining hands and forming a merger in the
shape of Santander UK.The high street branches were a familiar sight to the
customers as Abbey National bank before the formation of Santander UK
plc.
Santander UK has seen quite a rough patch in the recent past. Before the
merger, it was ranked the worst bank for 3 years with respect to customer
service by J. D. Power UK Retail Banking Satisfaction Study. The owners of
the bank are aiming to mend their image and put the bank back on the
growth path. The issue right now is to take another look at the marketing
strategy of the bank and use the results to make its image better among its
customers.
Research Aims
Since its establishment in 2010,Santander UK has learned that customer
satisfaction is the most important aspect of their business and they have
taken huge steps to improve that.Santander UK had to pull out of a deal to
buy branches of RBS and Scotland part of Natwest bank. The customers are
feeling the tension and are losing their trust in the bank. If this goes on for

long, this can damage the banks reputation irreparably. That not only will
halt the growth of the bank but has the potential to send it to a downward
slope.
It has been made known to the bank via customers feedback and a number
of other sources that the bank is losing its place among its core clientele
and a study needs to be done as soon as possible to address that issue. It is
not only about growth and expansion; it is almost about survival. The main
competitors are already way ahead in the game and are becoming
impossible to compete with.The purpose of the studyanalyse the banks
marketing strategy in Santander UK. The study will also look into the
effectsthe

marketing

strategy

onbusiness

growth

and

customer

satisfactionin theshort-run and long-run.

Research Objectives
-

To analyze the marketing strategy that Santander UKuses to market

its products and services to its customers

To determine the effects of Santander UKs marketing strategy on

business growth
To determine the effects of Santander UKs marketing strategy on
customer satisfaction

Research Questions
a. What marketing strategy does Santander UK use to market its
products and services to its customers?
b. What arethe effects of Santander UKs marketing strategy the banks
business growth?
c. What are the effects of Santander UKs marketing strategy on the
banks customer satisfaction?
Literature Review
In 2004, the American Marketing Association defined marketing as an
organizational function and a set of processes that creates, communicates
and delivers value to customers. It also associates marketing with
management of customer relations in ways that are beneficial to a company
and its stakeholders. Later, in 2007, the this definition was reviewed to
define

marketing as the activity , set of institutions and processes that

create, communicate, deliver and exchange offerings that are valuable to

clients, customers, partners and the society at large.
According to Ejup and Alban (2013), marketing is one of the major
departments in an organization that is responsible for identifying customer
needs and wants with the aim of producing or modifying the products to
respond to market demands. Often, the marketing department works closely
with the management to meet market needs, develop new markets and in
most cases, satisfy customer needs. Marketing may be viewed as the bridge
that connects the management and consumers with the aim of generating
profit for the company.
For marketing efforts to be successful, a marketing strategy must be
developed, the market segmented and products or services have to be
targeted and positioned. This implies that the market consists of various
relatively homogenous groups and each group has distinct desires and
needs. Marketers who use strategy, targeting and positioning in their
marketing campaigns make deliberate effort to identify their market
segments, and direct their marketing activities towards segments that they
believe their companies can satisfy in better ways than their competitors.
They position their products in those segments in ways that they appeal to
the target segments (Michael, 2011).
Ejup and Alban (2013) argue that each company should develop a strategic
plan and set clear goals for it to grow in the market. These authors refer to
the macroeconomic theory that explains that the major reason why
companies exist is to make profit. Generating profit, lowering costs and
increasing productivity are closely and positively related when it comes to
growing businesses. Many companies focus on ensuring survival in the
market. They do so by increasing their market share as well as increasing
their profit margins. Whatever the objective of a company and its strategic
plan are, each company should explore ways of improving their products or
services, conducting market research to measure and understand the needs
and preferences of their market and taking appropriate steps as needed.
This approach has the potential to secure bigger market share for a
company.

In addition, companies need to develop appropriate marketing strategies for

them to become profitable. Marketing strategies help companies in
identifying ways to achieve their set goals in response to their stakeholders
interests. Strategy is connected to effective utilization of a companys
growth potential and results of the company. Companies need to bear in
mind

the

threats

and

opportunities

that

characterize

its

external

environment then use those to improve their strategies by empowering their

strengths and minimizing weaknesses internally. According to Ansoff (1957),
the product market matrix proposed growth strategies that are ideal for
companies. The matrix offers an important framework for analyzing and
considering the relationships between a companys strategic direction and
its marketing strategy. The 4-cell matrix features various options of market
and product combinations while each cell presents distinct threats,
opportunities, risks and returns. Yoram and Thomas (1983) say that new
marketing directions are proposed with the aim of overcoming present
marketing theory limitations. An integrated strategic marketing planning
approach should be offered along with an application process for the pilot.
Even so, a marketing strategy is different from a business strategy in that
the former focuses on a boundary role function while a business strategy
focuses on the entire organization. Further, marketing strategies need to be
based on analysis of competitors, customers as well as other environmental
factors. The outcomes of this analysis are then combined with other
strategic inputs in an organization to develop a strategic business strategy.
A sound and successful business strategy must have a marketing
perspective. When this happens, the marketing function is able to provide
inputs for strategy development.
Seppo and Milkah (2012) argue that marketing forms a core part of the
innovation orientation in the growth of small businesses. Market orientation
defines a companys posture towards generating an understanding of the
companys customers and meeting their needs. It is has a positive impact
on the companys performance. This impact is largely appreciated though it
shows a reactive posture due to the fact that it focuses on the needs
expressed by existing customers. Ansoff (1957) unbundles this through the
product market matrix with consists of market penetration. This growth

strategy has to do with selling existing products more to the companys

existing customers in an effort to raise the revenue on sales. The market
matrix also consists of market development, a growth strategy that focuses
on increasing sales revenue by introducing existing products to new market
segments or new markets all together. The product development strategy
enables a company to sell new or advanced products in existing market
segments

or

existing

markets.

The

market

matrix

also

includes

diversification as a growth strategy that sees a company venture into new

markets with modified, new or improved products.
According to SmartCompany (2014), customer satisfaction refers to the
relationship of expectation to perceived performance. It is expected that
high levels of satisfaction lead to increased customer loyalty and helps
reduce price elasticity. It also insulates the market share from competitors,
reduces failure costs, and lowers transaction costs as well as the cost of
attracting

new

clients.

Customer

satisfaction

helps

in

improving

companys reputation as satisfied customers can lead to long-term viability

of a business due to repeat purchases, word of mouth referrals and brand
loyalty. Customer satisfaction has to do with the whole purchase experience
and not the post-use reflection only. It is therefore important to pay
attention to ensuring that all levels of a customers purchase experience
resulting to positive satisfaction. It may be expected that dissatisfaction at
early stages can lead to negative intentions of purchase.
Of importance to note is that dissatisfaction and satisfaction exist in varying
degrees and so highly satisfied customers display high levels of repeat
purchases and tend to make more purchase referrals than dissatisfied
customers. Customers who are neutral are less likely to offer strong referrals
and their repeat purchases are also much lower. On both extremes, highly
dissatisfied and highly satisfied customers have a multiplier effect on the
results. They are more likely to talk about their impacts and experiences on
most potential buyers, either positively and negatively. Dissatisfaction and
satisfaction may exist in the same buyer experience. Business owners need
to recognize that customer satisfaction is important for continued business
growth because satisfied may serve as a marketing tool in the same way as
other marketing strategies. It provides lining and helps in improving services

and products with the aim of getting potential customers to respond

positively.
According to Chron (2014), getting feedback from both satisfied and
dissatisfied customers on their experiences is important. This helps a
business develop its marketing strategy because it shows the different types
of marketing strategies that are working well as well as the marketing areas
that need improvement. Companies can use different avenues to capture
customer feedback including blog comments, emails, social networks,
surveys and forums. Customer feedback may also be captured in the form
of unsolicited or solicited testimonials or praise. This is an important
marketing tool that helps in attracting new customers, building business
reputation and retaining existing customers. Shoppers tend to research
different products or services actively before making buying decisions and
testimonials that are posted in the form of reviews online serve as referrals
for new customers.
Managing customer satisfaction through marketing has to focus on
addressing the gap that exists between the perceived and expected service.
The marketing strategy has to focus on both the expectation and the
perception during implementation. If a company hopes to increase customer
referrals and repeat sales through its marketing campaign, then customer
satisfaction for existing customers is critical. A company cannot expect
customers to refer others or to return unless it offers satisfactory customer
experiences which they would be willing to recommend or purchase again.
Formulations of a successful marketing strategy must therefore begin with a
sound understanding of what makes a customer satisfied. (SmartCompany,
2011.)

3. Research Design and Methodology

This is an analytical investigation that will analyse the marketing strategy
used by Santander UK. The study will also look into the effects of the
marketing strategy on business growth and customer satisfaction in the
short-run and long-run.

1. Data Collection
Data collection will be done using structured questionnaires that will be
developed

by

the

researcher.

The

researcher

will

then

administer

questionnaires to the banks customers through various bank branches.

Where customers are in hurry to respond to questions, the researcher with
request their contacts and conduct telephone interviews with selected
respondents using the structured questionnaires later on. Where telephone
interviews are not viable, the researcher will email the questionnaires to
respondents who will fill and email them back.
The researcher choose to use face to face meetings with the banks
customers, telephone and email interviews to collect data due to the fact
that respondents are accessible through the various bank branches and
where they are unavailable, the researcher will request to contact them
through email or phone. One on one interactions and phone interviews are
also preferred for purposes of getting reliable data and for better
clarifications.
Sampling Method
The researcher will use non-probability sampling design. Specifically, the
researcher will use a combination of random and snow-balling sampling
techniques. Snow-balling sampling will be used where the researcher gets
references of the officials who can provide accurate information that allows
him to best address the research problem. The researcher will use random
sampling method to sample respondents in bank halls.
Accessibility Issues
Some of the target respondents are likely to be inaccessible due to busy
work

schedules.

The

researcher

will

make

arrangement

with

such

respondents to conduct phone or email interviews when they have some

free time on their schedules.
Ethical issues
There are various ethical issues relevant to this research topic. These
include truthfulness, maintaining respondent anonymity. The researcher will
handle these ethical issues with utmost discretion. The researcher will strive
to get truthful data from respondents through seeking clarification of

information provided. The researcher will also maintain anonymity of

respondents to avoid defamation.
Data analysis plan
The data collected will be analysed based on responses and scores entered
into the computer and analysed using the Statistical Program for Social
Services (SPSS) software. Descriptive statistics including frequencies,
percentages, graphs and tables will be used to summarize the data.
Research limitations
The following are limitations of the study:
-

Some respondents may not be willing to respond to all the questions

in the data collection tool and this could affect the outcome of the

study
Some respondents may not have sufficient time to respond to all

queries and this may compromise on the quality of the study

Due to the distances and time constraints, the researcher will use
phone interviews and emails to collect field data. Some respondents
who may not have time to respond to research questions in time and
are not available on phone as well will be sent copies of the data
collection tool to fill and email back. Some respondents may opt not to

complete the tool and this can affect the quality of the study
This study will focus more the changing marketing strategy and the
effects the changes have on the Santander UKs customer satisfaction
and growth. This limits the outcome of the study to this bank only and
these outcomes may not necessarily reflect the state of other banks in
the UK.

4. Timetable
The following study timetable will guide the research process:
No.
1
2.

Activity
Development of data collection tools
Testing and improvement of Data Collection

Tools
3.
Scheduling data collection appointments
4.
Conducting actual data collection activities
5.
Data Analysis
6.
Report Writing
References:

Timeframe
Week 1

Week II
Week III and IV
Week V and VI
Week VII and VIII

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