ALLAMA IQBAL OPEN UNIVERSITY

Level/Program: Post Graduation (Master/Diploma)

Marketing Theory and Practice (5005)

NAME: JAN MUHAMMAD

ROLL NO. CC510140

Q.NO.1

Covid has shifted the entire corporate paradigm.Keeping in view the COVID
19,make a comprehensive environmental scanning of any bank for making
an effective marketing strategy. How the analysis will vary if you make the
said analysis for March 2019, March 2020,and March 2021.Identify the key
variants you will observe with justification. Answers must be supported
with the facts.

ANS.

A fundamental shift in customer behavior is expected in the banking sector- a

decrease in the physical branch visits is certain with an immediate increase in
online transactions, peer to peer payments, wallet usages, etc. The countries
with the earliest impact of the virus China and Italy have already seen a 20%
increase in online transactions. It’s up to the banks now to step up their game to
convert more of these experiences into positive stories for long-term digital
adoption.

How retail banks respond to the Coronavirus pandemic will have a direct impact
on its customers, employees, economy and the world at large. Banks manage
people’s money, provide loans, guarantee credits, facilitate payments and are
one of the most connected institutions to the general public.
A major part of retail banking services including deposits, credits, payments, etc.
are part of what governments refer to as ‘essential services’. So it’s important for
banks to continue these services to minimize the adverse effects on people.
However, managing all these at a much-reduced employee count can be
challenging. One way to tackle these challenges with scarce resources goes
through embracing digital banking.

Strategies for Digital Marketers in Retail Banks .

Your bank’s responses to Coronavirus should not be limited to minimal

reactionary steps to keep the business in a stable state. It’s time for retail banks
to think proactively improve and extend their digital capabilities. More importantly,
marketers in banking should focus on designing better customer engagement
and socially responsible messages.

Keep Your Digital Channels Open

The last thing your customer wants to face is not being able to reach your bank.
Banks need to keep all their digital channels open and proactively update their
customers much before they feel the need to reach out for help, especially in
times of crisis.

Create COVID-Sensitive Products & Services

Unlike in the past, banks are diversified to address different needs of the
customer. In the times of crisis these are some of the immediate steps you can
consider:

● Increase the limits for online transactions 

 ● Offer payment holidays, moratorium for loans, relaxation in EMIs, less stringent
KYC norms, waiving minimum balance charges, relaxing additional
authentication for family members, easier password reset steps and more
● Also offer emergency credit facilities, access to fixed savings accounts, and
products like loans & insurance at discounted rates

Financial Performance for the Quarter 1, 2021

Despite the continued challenging environment, the Bank has delivered strong
financial results for the three-months period ended March 31, 2021.
Financial Position as at March 31, 2021

As of March 31, 2021 total assets of the Bank amounted to PKR 3,340.33 bn
which is 11.0% above the

year-end 2020 level of PKR 3,008.53 bn. On the liability side, the Bank’s balance
sheet is driven by its

wide market outreach and branch banking network where the focus remains on
low-cost deposit

mobilization.

Financial Performance for the March 2020 & 2019

Financial Performance

Total income of the Bank for the three-months period ended March 31, 2020
amounted to PKR 24.87 billion which is 4.8% higher than PKR 23.73 billion
earned during the corresponding three-month period last year. For this period,
net interest income (NII) closed at PKR 16.57 billion, the non-mark-up interest
income (NFI) closed at PKR 8.30 billion, up by 7.2% and 0.4% respectively.

The bank’s profit before provisions and write-offs amounted to PKR 11.06 billion
being 0.7% higher than the PKR 10.98 billion for the similar period last year.
Whereas, after-tax profit for the period under review closed at PKR 4.12 billion
being marginally lower by 1.5% as against PKR 4.18 billion earned during the
corresponding period of 2019. Drop in after-tax profit is mainly attributed to
higher provision charge and some increase in operating expenses.

Economic Environment

The COVID-19 pandemic has emerged as a major shock to the global economy
leading to a sharp and widespread downturn. The IMF has altered its earlier
global annual economic growth forecast for 2020 from of 3.3% to below zero in
2020 due to the impact of the pandemic. As per initial estimates, this will result in
a decline of global GDP income by about US Dollars 1 trillion. Depending on how
long the crisis lasts, risks of an even worse outcome still exist.

Moreover, Pakistan is also expected to receive around $1.5 billion relief in the form of
delay in repayment of loans to bilateral creditors. Pakistan’s currency has gained some
value against the dollar and has been able to weather the outflow of the hot funds which
had been invested in the local Government securities market The drop in oil prices
which accounts for a quarter of Pakistan’s total imports will also help the country’s
balance of trade and help the country’s overall exchange position in the coming months.
Q.NO.2

You are supposed to make a draft functional level strategy of marketing to be

developed for any of organization selected by you on the basis of environmental
scanning you did in Q.No.1 Please take into consideration the main areas of
marketing .

ANS.

Definition: draft refers to open-ended financial assistance which the bank offers to
the current account holders, in which the individuals and entities are allowed to
withdraw funds from their accounts more than the amount standing in the credit of
his/her current account or when the account has zero balance or even when the
account shows debit (negative) balance.

Hence, it is a kind of loan which is provided by the banks, on which the current
account holder is required to pay interest on the period for which the amount is
borrowed, at a specified rate on the overdrawn amount. Further, the borrower can
withdraw and repay the amount up to the agreed limit any number of times.

To avail this facility, the customer is required to make a written application to the
bank regarding opening the current account with the bank. Further, at the discretion
of the lending bank, the facility can be discontinued or modified.

● Current Account: Customers having a current account with the bank are
provided a facility to draw more than the amount present in the credit of their
account, such facility is known as an overdraft. Hence, all the rules applicable
to the current account will apply to overdraft accounts.
● Approved Limit: Banks provide overdraft facilities over an approved
predefined limit, which differs from customer to customer. And so a customer
can withdraw money upto the maximum overdraft limit which the lending
institution has sanctioned.
● Short-term borrowing: It is a form of short-term borrowing or borrowing for
emergencies only. Thus it can reduce pressure on the working capital and it
can be used as a resort to meet unexpected expenditures.
Functional Level Strategy

Definition: Functional Level Strategy can be defined as the day to day strategy which is
formulated to assist in the execution of corporate and business level strategies. These
strategies are framed as per the guidelines given by the top level management.

Functional Level Strategy is concerned with operational level decision making, called
tactical decisions, for various functional areas such as production, marketing, research and
development, finance, personnel and so forth.

As these decisions are taken within the framework of business strategy, strategists provide
proper direction and suggestions to the functional level managers relating to the plans and
policies to be opted by the business, for successful implementation.

Role of Functional Strategy

● It assists in the overall business strategy, by providing information concerning the

management of business activities.
● It explains the way in which functional managers should work, so as to achieve
better results.

Functional Strategy states what is to be done, how is to be done and when is to be done are
the functional level, which ultimately acts as a guide to the functional staff. And to do so,
strategies are to be divided into achievable plans and policies which work in tandem with
each other. Hence, the functional managers can implement the strategy.

Environmental scanning is a review of external sources to discover factors that impact a

business. The main goal is to identify and consult sources outside the business. Although these
sources are uncontrollable from the business's perspective, it is important to consider them in
decision-making processes.
External Factors
Competition
Businesses should scan the competition to find out how they stack up to competitors and how they
can earn a customer's business. It's vital to know what the competition is doing so that a business
can be in touch with trends and issues.

Our example company, The Pool Stop, has been the only pool company in the area for 20 years, but
a competitor crept into the market this year. The Pool Stop may have to change the way it does
business now that customers have another option. It should look closely at the competitor's services,
products, pricing, location, customer service, and customer feedback. Comparing what the company
offers versus the competition opens doors for improvement and opportunities to grow and change.

Economics
Businesses need to study the economy to discover the current trends, buying power, and strength.
Are people losing their jobs and cutting back on spending? This may be a sign to re-evaluate the
pricing strategy, because there are times it may be better to take a 20% profit rather than a 50%
profit. Staying on top of what is going on in the economy will save the business from a negative
surprise in its finances. It is better to make gradual adjustments with the economy than a big change
that scares away customers.

.
Q.NO.3

Market segmentation approaches have changed to a great extent as for as the

implementation is concerned.How would you devise an effective plan for
segmentation and target market selection for any restaurant in the areas hit badly
with the pandemic so that optimal results can be achieved.

ANS.

When it comes to marketing, there is a plethora of strategies companies employ to

best present their product as the solution to consumer's needs. One of the most
basic marketing tools is market segmentation, which allows companies to group off
different kinds of consumers with varying needs, demographics or unique responses
to products and better target their specific wants.

What Is Market Segmentation?

As a marketing strategy, market segmentation is designed to help companies better
market to groups that they will have the most success at meeting their needs.
Market segmentation helps companies create a market mix that allows them to
target their marketing campaigns to audiences that are more likely to need their
product - and, potentially find under-served segments to branch out to.

By more narrowly targeting their key markets, companies are able to be more
efficient with their resources - including money and time - when mounting campaigns
to draw new customers.

Market Segmentation Definition

Market segmentation is the process of dividing prospective consumers into different groups
depending on factors like demographics, behavior and various characteristics. Market
segmentation helps companies better understand and market to specific groups of
consumers that have similar interests, needs and habits.

In each market segment, there are typically three things that are common to all segments -
homogeneity, distinctiveness and reaction.

In each individual group, the potential customers are generally homogeneous - meaning
they are generally fairly similar in terms of their common needs. Additionally, the members
of each individual grouping are distinct from the other groups - or, they are different in some
ways than customers in other groupings. Lastly, consumers in each group have similar (or
relatively similar) reactions to various marketing, advertising and products directed at their
segment, and tend to perceive the full value of products differently than others in different
groups.

Factors of Market Segmentation

What goes into the process of market segmentation?

There are several factors that a company or business will need to examine during
the market segmenting process - including how accessible the segments are and
specific identification parameters.

For example, companies need to be able to clearly identify different segments of

potential consumers. Additionally, the measurability of the segment's size is
important to understand how best to plan a strategy, as is the segment's accessibility
regarding promotional or marketing materials.

Types of Market Segmentation

But what types of market segmentation are there? How can companies divide their
prospective markets?

In general, there are four basic types of market segmentation (with some variation in
them) - behavioral, demographic, psychographic and geographic.
How restaurants can better assist customers during times of uncertainty

Restaurants are the heart of many communities. It’s where couples enjoy date night,
families celebrate taco Tuesday, and teams gather for postgame grub. But as the world
grapples with how to respond to COVID-19, both national chains and independently owned
restaurants are quickly strategizing to find new ways to serve their communities.

While I manage the Restaurant teams at Google as my “day job,” I am also a restaurant
owner who is personally experiencing this crisis from the front lines. My wife and I opened
Seven Scoops & Sips in 2019, and we donate a portion of our earnings to worthy causes.
(Seven Scoops has been able to donate over $60,000 in the past nine months because of
community support.) Before COVID-19, the store was packed every night because people
knew that their purchase of an ice cream, coffee, or acai bowl was helping to fund local
schools and sports programs, cancer victims, homeless youth, children in need in Harlem,
villages in Kenya, and other local and global causes. The sting of this crisis is especially
hard since now all funding is put on hold until business can resume.

The pandemic presents unique challenges for Seven Scoops and the industry. And while the
path forward depends on many variables, here are some strategies restaurants are adopting
to support their customers in this unprecedented moment.

Help your customers plan and prepare

When uncertainty is top of mind, people are looking for information they can trust. This is
even more evident when it comes to accessible and available food options nearby. “Take
out” search interest has increased 285% since the start of March.1 Being there to help
people navigate this new normal with up-to-date and relevant information can make all the
difference.

Proactively communicating changes that affect your restaurant across customer-facing

channels is crucial.Proactively communicating changes that affect your restaurant across
customer-facing channels is crucial in helping people plan and prepare. Updating your
Business Profile on Google is one way to do this. Updates you make on your profile about
your location, such as changes in your restaurant hours, including temporary closings or
modified hours, will also appear on Google Search and Google Maps. And, at a time when
people are assessing what best fits their needs, providing information, like whether you’re
offering takeout or delivery, is a way you can help users decide what’s right for them.

Communicate takeout or delivery solutions effectively

For the last five years, “restaurants near me” consistently ranked as the most popular “near
me” search.2 But consumer behavior has changed. The focus has shifted to alternative
mealtime solutions. We’re seeing more consumer interest related to “delivery” in the last
three weeks as a result of national guidance to shelter in place; search interest for “food
delivery” related queries has spiked 100%.3

Informing people of your alternate dine-out options helps customers and your employees
remain safe during recommended social distancing periods. Solutions like Local campaigns
can help you customize your communication to include only locations where you offer
dine-out options.

Reassure strict restaurant safety and sanitation measures

Today, more than ever, when choosing where and what to eat, safety is paramount. In fact,
search interest for “is food delivery safe” has increased 650% across the U.S. since the
beginning of March.4 Reassuring customers that you understand the concerns for safety
and are taking important steps to address the current situation is key

These actions include sharing updates on new implementations, like whether you’ve
established a dedicated team to focus on food safety. Other examples may include applying
more stringent cleaning procedures, increasing the frequency of hand-washing among staff,
and updating training materials for employees.

Further, communicating your employee sick leave policy or addressing time off for ill
employees is another way to show how you are minimizing the possibility of putting your
workers and customers at risk.

In this challenging time, the last thing people want to worry about are meal options. By
alleviating these concerns with relevant communication and safe, convenient choices,
you’re providing the assistance they’ll remember and appreciate.