ASSIGMENT Developing Market Presence

Title: Marketing Planning Process for Bank for Business (BpB)

May 2008

1

Table of Contents 1. Introduction (p.4) 1.1. Evaluation of marketing in Bank for Business (p.5) 2. Mission and Vision (p.6) 2.2. Customer Retention (p.7) 3. Marketing Mix (p.7) 4 SWOT Analysis (p.12) 4.1. Strengths (p.11) 4.2. Weaknesses (p.11) 4.3. Opportunities (p.12) 4.4. Threats (p.12 5 6 Budget (p.14) Proposal for Change (p.15)

6.1. Brand (p.15) 6.2. Customer Focused (p.16) 6.3. Introduction of new Services (p.16) 6.4. Public relations (p.17) 6.5. Mass marketing (p.17) 7 Conclusion (p.18) REFERENCES (19-20p)

2

the second part analyzes the marketing mix. and the proposal for change is also advised. vision. Bank for Business over the last 2 years hasn’t prepared the marketing plan. its mission. objectives. MarCom. Kotler. J.CEOs need to make marketing their top priority. While. Swot Analysis. and Westman. 3 .(2006) Abstract The purpose of this paperwork is to analyze the marketing planning process of Bank for Business. resulting in doing none of any marketing activity. The first part analyses the current marketing position of the BpB.Ph.

Over the past 3 years BpB have had a huge decline in losing their customers. Controlling and Regulation of banks in Kosovo. The professional senior management was replaced with the new unprofessional one. Now. The privatization of Socially Owned Enterprises induced the shareholders of BpB to take loans from the bank and buy the companies that they applied for. Their funds were frozen in the privatization process. BpB has 500 employees and 30 branches at the whole territory of Kosovo. At the beginning of its establishment BpB had only one branch located in Prishtina. In 2002 Bank for Business was chosen as the second most successful bank in Prishtina. 4 . Introduction On March 2001 Bank for Business was granted the license from Central Banking Authority of Kosovo. resulting in delaying the payment of principals and interest rates. This was transformed in media. Its shareholders are 100 percent of private investors. losing continuously its customers. which gave the bank a bad image. pBB is ranked amongst the weakest banks in Kosovo. headquartered in Prishtina. Bank for Private Business was granted the license according to Regulation 21| 99 for Licensing. It is the first Albanian bank that implemented ATM machines.1. It was the 3rd bank established during the post-war in Kosovo. Currently there are 8 commercial banks that have been licensed from Central Banking Authority of Kosovo. Nowadays.

manage the marketing planning process and marketing tools.1.com). it is one of the simplest and unprofessional web sites any bank can have. 5 . The new manager of the marketing department has not made any advertising in media not to mention any market analysis.1. If you view the web site of the Bank for Business which is (www. managing the employees of the marketing department. Evaluation of marketing in Bank for Business According to Kotler (2006) the CMO of the company has 2 main responsibilities: The internal responsibilities that is. which used to be prepared by the previous marketing staff before 2006. Bank for Business for the year 2008 hasn’t made any written marketing plan. The external responsibility is creating a strong relationship with the customers.bpbbank.

creation of strategy and the marketing mix (Dibb. The objectives for Bank for Business should be those as following: .1. 2. Those objectives should be measured. Vision Collis et al (2008) state that “Vision refers to what we want to be” Unfortunately bank for Business has no vision. -Customer service market presence (coverage) 6 . Collis et al (2008) state that “the mission refers to why we exist” The Mission of Bank for Business is ““Building trust in clients and offering modern banking products and services”. 2002) 2.Marketing planning process encompasses all the components of the marketing management: marketing analysis. Marketing Objectives McDonald et al (2006) pointed out that “An objective is what you want to achieve.Introduce new products for existing markets-MEASURES -No of new customers -No of new products on market -Customer satisfaction -Develop excellent customer service performance. Mission and Vision Mission A mission is a guideline of marketing planning process. A strategy is how you plan to achieve your objectives”.

Marketing Mix According to Rafiq et al (1995) the elements of marketing mix are the 7Ps as following -Product -Price -Place 7 .2. of customer complaints -Recognized as a customer oriented and focused brand -Customer satisfaction index -Customer demands -Negative word of mouth -Increase market share/ -Revenue per user/product -ROI -Cash collection -On new products and services Increase brand value (goodwill) -Attrition rate or churn -retention rate .-Used service channels (points of customer care. and forget about the benefits firms have from keeping their customers (Ahmad 2001). According to Ahmad managers of the companies should integrate the “customer retention” in their marketing planning process. employee failing in resolving any problem occurred to customer etc.Market share 2. ethical problems. According to Ahmad (2001) causes that make customers switch the service provider are: price. call center. account managers) -No. Customer Retention Managers pay high attention in acquiring new customers. web based and other channels of self care. 3.

services. 8 . 3. places and ide BpB is not offering long term loans as their competitors are offering. people.-Promotion -Participants -Process -Physical evidence According to Rafiq et al (1995) the 4Ps for services marketing are not sufficient.1. Product Hoffman et al (2005) state that” Product refers to goods.

2. Public Relations. sales and social stance (Hill. There. Other branches in Prishtina should be located near most profitable public companies. and Sponsorship Marketing.3. and newspapers. Bank for Business has extended its branch network through the whole territory of Kosovo. 3. 3.3. But. hypermarkets. Promotion Bank for Business has used those MarCom tools: Advertising. Radio. Advertising was made through TV. BpB has been sponsoring the Basketball club of Prishtina which was champion for more than 3 years.4. Place As mentioned. The commercial banks in Kosovo have all the same deposit and loan interest rates. The HQ Building is located in the centre of Prishtina. At the time when basketball was the most viewed sport from the population. Prishtina Airport. billboards. Sports sponsorship is a good tool to turn the fans into customers. 2006) 9 . (Conrad. Price Price influences market share. companies with large number of employees such as Post and Telecommunications of Kosovo. and other Public Companies. Sports Sponsorship was used by BpB. Zbaracki et al (2003) state that ”A firm’s ability to set the right prices is an important means of appropriating value and therefore an important determinant of the ability of a firm to generate rents”. ATM machines are only located near the branches of BB. profit of the company. are no ATMs near shopping centers. 1999).

10 . They should have handle the crisis. In the future it is strongly advised to continue with sponsorships in sports and events since.The majority of the youngsters were fans of Prishtina basketball club. or let things drift along by themselves. People The new senior management replaced the workers of sales points (that were chosen from the previous management) with the new ones. how to behave with customers. According to Kotler (2006) every employee must understand that they should give superior value to its customers. When the news was spread in media that Bank for Business was having problems with its shareholders delaying their payment of loans none of the senior executives made any interview. the bank is still liquid and there is no need for panic to withdrawal their deposits. The only choice is whether to manage the process. meaning that this was a good opportunity for the Bank for Business for its brand image. This led the bank losing their customers.5. 3. The new workers have no experience and haven’t been trained for banking services. make interviews with different journalists in order to send the message to their customers that. despite the fact that they were having problems with their shareholders. Then the bank stopped sponsoring any sports activity. they have no skills in communication (as the old staff was). Hill et al (1999) state that” Public Relations happen whether you like it or not. according to World Bank statistics 60 % of total population in Kosovo is made of young people of the ages from 15 to 29. enhance existing customer relationship and acquire new customers.

3. The distribution is made once a month only in one branch There is a huge queue on the first date of every month. 11 .6. Processes Bank for Business was granted the right from the Government to distribute the funds of financial aids.7. Getting loans on this bank is not as faster as the other two large banks do. Physical Evidence BB does not provide the customers with brochures for making them aware of the services they offer.3. people waiting to get their funds.

If you call to the BpB call centre. There is no sales promotion department. Many corresponding banks in Europe Bank for Business has its corresponding banks in many Europe Countries 4.1. 4. No e-banking service BB has still not started with e-banking. Organizational Structure-There is only one department at the marketing Structure which is the marketing department consisted by the manager of marketing and his assistant. pricing department etc. WEAKNESSES Unprofessional senior management-The professional senior managers that used to be when the bank was established all have been replaced with the new ones. Branch network Bank for Business has its branches through the whole territory of Kosovo. they delay in answering the customer inquiries. the employees always answer the phone after many rings. 12 . that have no experience in banking and financial services. Poor customer care. the first in terms of domestic banks. STRENGTHS Establishment It is the third bank established in Kosovo.2.4. public relations department. advertising department. SWOT Analysis Strengths and weaknesses are the internal components of the firm that need to be assessed.

which enable them to transfer their money to their families in Kosovo.3. Merger and acquisitions of other banks -Two domestic banks (New Bank of Kosovo and KASABank) have been merged with a Slovenian Bank (NLB Bank) Entry of new foreign bank in the market -A strong foreign bank (TEB Bank) has entered the market since January 2008 13 . .According to estimates. BpB could increase its revenues entering the rural market through loans. OPPORTUNITIES The Independence of Kosovo has attracted foreign investors. Bulgaria. -Rural areas have no access to loans. PROCREDIT Bank). Albania.Opportunities and threats are the external factors that should be assessed. Sweden. THREATS Competitors -Competition from two strong foreign banks that operate in Kosovo (RAIFFEISEN Bank.The domestic private investors in cooperation with the foreign investors have started with many projects investing in Kosovo. and Austria The corresponding banks are mainly in the countries where the non resident Kosovars live. -Increase of remittances One of the largest resources of cash in Kosovo are remittances. Arrival of EULEX staff The EU mission staff which will come in Kosovo will all open the bank accounts in one of the commercial banks in Kosovo. 4. . Switzerland. 4.4. Bank for Business has its corresponding bank in Germany. more than 90 % of inhabitants of rural areas in Kosovo have no access to banking loans.Those banks share the largest percentage of the market. Italy. Denmark.

Unprofessional management. The Independence of Kosovo has attracted foreign investors. 2. Strengths Weaknesses 1. Rural areas have no access to loans. Many Corresponding banks in Europe. Customer care Centre Opportunities Threats 1. -Inflation According to experts the Inflation rate is considered to be 13%.Competitors 2.Merger and acquisitions of other banks 2.Small market share -Small market share (the percentage of market share has declined) Company brand image .The third established bank in Kosovo (The first in term of domestic banks) 2. EU mission (EULEX) 1. Organizational Structure 3. Increase of remittances 4. 1.Company Image 14 . 3. 2.Security 4.The case of the shareholders has been to court for within a year and it has still not ended.Branch Network 3. Low market share 3.

Bank for Business should merge with one of the domestic banks that operate in Kosovo and could use the name of the bank. Jham et al (2008) stated that “Banks have started realizing that business depends on client service and the satisfaction of the customer and this is compelling them to improve customer service and build relationships with customers. Budget Firms usually make the budget for the full three years.2006) Mc. 6. Since BpB doesn’t not have any objective for the year 2008. did not. there was no budget allocated. Strong brand has impact in company’s growth that is. (Mc.Donald (2006) stated that “a hierarchy of objectives is built up in such a way that every item of budgeted expenditure can be related directly back to the initial corporate financial objectives”. or a brand may simply need a fresh start” The company has survived from bankruptcy but the brand it had. Miller et al (2004) pointed out that “A brand is simply a collection of perception in the mind of the consumer”. Brand The best choice for Bank for Business is to re-brand. 15 . and a very detailed one for the first year. Miller et al (2004) state that “Re-branding may be prompted by a crisis or a scandal. Proposal for Change 6.Donald.5. customers and employees. therefore the customer is the focus and customer service is the differentiating factor. it creates value for shareholders.1. Banking is a customer oriented services industry.

Bargal et al (2008) state that “Customer satisfaction is crucial for the future of any banking organization”. In order to retain the old customers and gain the new ones. hoardings. newspapers. Time is also important to customers. 6. Bank for Business should ask them whether they gained information for their bank from TV. and identify their highest satisfaction level in banking services. Customer Focused BpB is not being customer centric. BpB should also have the customer complaint system.2. at Nike and Toyota the customer has the opportunity to design its car and athletic shoes. waiting in line when depositing money or getting any other service. in order to apply the relationship marketing theory in banking system they suggest that the main objectives should be: To identify the customer satisfaction variables which would result in building relationship with customers. The relationship marketing approach refers to fulfilling customers’ needs. In a study by Jham et al (2008). magazines. BpB should offer diversified services such as: Net banking to make it possible for its customer make transactions faster. The front-line employees of BpB should have worn an official uniform like its competitors do. 16 . Customers take into consideration the time that takes to get a loan in a bank. Some foreign banks are continuously being interested to buy BpB. For example.The other choice for re-branding should be the Acquisition. Bank for Business should implement the relationship marketing strategy. radio etc. radio. BpB should contract a consulting firm in order to bring inside the company a customer culture. BpB in 2003 got the right from the Government to deliver the financial social aids every beginning of the month. (Waiting is unpleasant for the consumer) Vaglio (2007) pointed out that “Time is the new currency in today's marketplace”. BpB should analyze the demographic profile of their customers. creating unique customer experiences.

(Hill.Those are the newest services that its competitors offer. After the ATM service Bank for Business did not continue with other updated services as its main competitors (Raiffeisen Bank and Procredit Bank) did.They deliver those aids only at one branch.5. resulting in a long queue. 6. Bank for Business is the first Albanian bank that started offering services through ATMs.3. It does not offer E-banking. Public relations BpB should make a programme with a professional journalist regarding their stable condition they are having now. SMS service. With PR the third party. economic fluctuations. 6. like its competitors did (such as Raiffeisen and Procredit) should open its branches in shopping centers which would enable the customer availability at any time. 1999) 6. Mass Marketing BpB should start then with mass marketing. Advancing technology has not been followed by Bank for Business. which is between the company and the public is the one who transmits the message. competition. so the bank is still profitable and liquid. refilling of the mobile phones through ATM machines . informing the public that their shareholders have started paying their debts.4. 17 . and different customers’ needs. Introduction of new Services Banking System as a customer oriented industry has been always challenged by new technology. Bank for Business.

fulfilling customer’s needs. The creation of other departments in the marketing organization structure such as branding. It should start advertising its services through mass marketing. we can conclude that BpB should re-brand. 18 . Since. Conclusion After analyzing the marketing planning process of Bank for Business (BpB). The introduction of new services in consistency with advanced technology should be of a high importance for the consumers. After the scandal BpB had with its shareholders. For more than 2 years BpB did not advertise its services in none of the media channels. the customers perceived a bad image for BpB. Then.7. BpB should integrate the relationship marketing strategy. to convey the message that the bank is profitable and liquid. BpB should use the public relations MarCom tools. In order to gain the trust on consumers. promotion and sales department should be advised. BpB is losing its existing customers it should make an immediate strategy for customer retention.

30 (14). 86(4). L.com/ehost/pdf?vid=13&hid=7&sid=94d72eab-ed84-406f-8a96dedebd8991b1%40sessionmgr7 [accessed 20th April 2008] Lofton. T (1999) Marketing. Pearson. Jham.REFERENCES Ahmad. Available from: http://web.ebscohost.com/ehost/pdf?vid=16&hid=106&sid=32b6ba3f-d1ab-4557-ab01adf1bfb8dd97%40sessionmgr2 [Accessed 8th May 2008] Collis.Available from: http://web. Sally (2002) Marketing Planning Best Practice. Hoffman. 20 (84-93).ebscohost. 19 Available from: http://web.ebscohost. Rizal and Buttle.2nd edition. Michael G (2008) Can You Say What Your Strategy Is?.ebscohost. Edinburg.com/ehost/pdf?vid=9&hid=107&sid=94d72eab-ed84-406f-8a96dedebd8991b1%40sessionmgr7 [Accessed 4th May 2008] Dibb. Lynn. Washington. Francis (2001) Customer retention: a potentially potent marketing management strategy. David J and Rukstad.ebscohost.3rd edition. Journal of Strategic Marketing[online]. Thomson Corporation.com/ehost/pdf?vid=17&hid=106&sid=32b6ba3f-d1ab-4557-ab01adf1bfb8dd97%40sessionmgr2 [Accessed 3rd May 2008] Hill. Vimi and Mohd Khan. Mississippi Business Journal [online]. debit cards. electronic capture. D.Available from: 19 .(2005)Marketing Principles & Best Practises.Available from: http://web. Harvard Business Review [online]. E and Sulliva.(2007) How to win fans and influence customers. (2008) hot trends? Cell phone banking.com/ehost/pdf?vid=12&hid=117&sid=94d72eab-ed84-406f-8a96dedebd8991b1%40sessionmgr7 [Accessed 28th April 2008] Conrad. Kaleem (2008) Customer Satisfaction in the Indian Banking Sector: A Study. 29-45. Marketing Review [online]. US Banker [online]. Available from: http://web. Management Review [online]. 117 (20) .

(1995) Using the 7Ps as a generic marketing mix..com/ehost/pdf?vid=61&hid=9&sid=f2f31334-4b2e-4273-8009d64a6df73549%40sessionmgr102 [Accessed 1st May 2008] Kotler. Marketing Intelligence and Planning. Strategic Management Journal 615–630 Available from: www. Rafiq.ebscohost. Marketing Review [online]. Leader to Leader [online].http://web. Chichester. (2003) Pricing process as a capability.com [Accessed 8thMay 2008] Miller.interscience. John C (2006) What CEOs need to know and do about marketing. Malcolm (2006) Strategic Marketing Planning: Theory and Practice. and Muir. Z and Mark. MMARKETING INTELLIGENCE & 20 .com/ehost/pdf?vid=15&hid=116&sid=94d72eab-ed84-406f-8a96dedebd8991b1%40sessionmgr7 [Accessed 1st May 2008] Mark. (2004) The Business of Brands.com/ehost/pdf?vid=15&hid=7&sid=94d72eab-ed84-406f-8a96dedebd8991b1%40sessionmgr7 [Accessed 7th May 2008] McDonald. J. Jon Wiley and Sons.ebscohost.wiley. D. M and Ahmed.42 (20-28) Available from: http://web. Philip and Westman. Ltd. 375-418 Available from: http://web.ebscohost.