Marketing Plan Analysis and Presentation: Part 3 – Place and Advertising Promotion
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WELLSFARGOMARKETINGPLANANALYSIS.pptxWELLS FARGO MARKETING PLAN ANALYSIS
By Laurelle Espinoza
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Introduction
The success of any business is to a great extent determined by its marketing plan. A marketing plan is a tool that defines a company’s or businesses marketing strategy and marketing strategy is the overall plan with the ultimate goal of achieving a suitable competitive advantage through understanding the dynamics and wants of consumers. This powerpoint will summarize the marketing plan analysis research for Wells Fargo company and how the information from the research can be used to help it develop a marketing plan in order to meet the company marketing objectives and business needs.
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Background
Company background: According to Mitchell (2013), it was founded by Henry Wells and William Fargo to be in the service of the west. The services offered were purchasing and selling gold, selling paper bank drafts and fast delivery of the gold and any other valuable.
Company name: Wells Fargo
Vision: Satisfy our customers financial wants and help them succeed financially.
Mission: Assisting customers prosper financially.
Company marketing objectives: making use of customer value found pricing.
Consumer behavior: over the years, it has lost much of its customer loyalty due to unwanted products, tricking customers with fake bank accounts and unwarranted fees.
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Customer segments and target markets.
Segmenting a market is to divide a enormous market target into distinct clusters of consumers with mutual behaviors, needs or characteristics.
Marketing of Wells Fargo now reflects on improving diversity and effect of multiculturism on American culture. It utilizes completely intergrated multi-cultural proposals that are inclusive of all market segments assimilative of cultural cues which have a comprehensive appeal. Wells Fargo has a big number of multiple agencies for all the segments and its digital agency working together to achieve the cross-cultural thrust with a universal appeal.
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In order to achieve favorable segmentation which is appealing to target markets, Wells Fargo should use the following guiding principles: knowing its consumers, treating them respectfully and having integrity and openness in its activities.
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Characteristics of Wells Fargo target market and their effect on product/ services and pricing policy.
Wells Fargo crucial target market is their customers who have an already existing online account with the bank but do not have an investment account yet. It is getting ready to bring in a robo-advicer by the name intuitive investor to entice their already existing customers to invest with the bank and buy the banks products. This will allow users to begin with an investment of ten thousand dollars at half percent yearly advisory fee. This minimum investment is too high and might not attract new customers to purchase the services offered by the bank. However already existing customers will be given a discount which is a motivating factor.
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Being able to identify its core customers will help Wells Fargo satisfy the needs of their customers without trying to appeal all client types hence loosing sight of the wants of their core customers.
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Product differentiation and positioning of Wells Fargo brand.
Product differentiation has enabled Wells Fargo to enlarge its customer base by highlighting the unique features of the products. After studying the changing interests of its customers, the bank has expanded its products line through differentiation hence competing favorably among its competitors. Wells Fargo is providing its consumers with adds-on and customized upgrades. Moreover, it is offering a guarantee to reduce the risk of loses through buying unfamiliar products. Getting certified also demonstrates that the products you are offering are cut above those of your competitors.
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Differentiation of its services and products has enabled the bank create unique products which have a competitive advantage in the market.
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Consumer buying behavior model for Wells Fargo.
The behavior of consumers apparently incorporates all the aspects of science including biology, sociology and even chemistry. The particular behavior of consumers is usually directly proportional to the market trend. The Wells Fargo is one of the banking companies which is regarded to utilize the consumers behavior in designing their marketing plans so that it is effective when put into use. The consumers behavior include routine shopping, impulse buying , extensive decision making and also limited decision making. This bank has been able to determine that customers who carry out all their businesses through tellers are more likely to leave than those who deposit through ATMs and bank online. However ,the bank does not ask customers the channel preferences they prefer because they consider that expensive. According to Sovern (2017), consumers buy less of what they would have bought at a lower cost.
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Failure of asking customers about their channel preference has a negative impact on the business because they don’t understand the consumer expectations. Studying its consumer buying model will enable Wells Fargo to understand the wants, expectations and needs of their customers.
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Product mix
This refers to the sum of the products which a particular company can offer to its given customers. This aspect has a greater influence to the Wells Fargo Company which offers variety of services to its specific customers. The products and services which are offered by the wells Fargo include asset management, employee benefits, commercial financing, corporate and investment banking, treasury management and some other international services which are of great importance to the consumers. The company provides banking, insurance, loan and credit, reward and benefits, payroll services, investment and retirement and the merchant services. The company also provides wholesale banking which involves business banking, insurance and the real estate services. This has the capability of attracting new and more customers.
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The company provides diverse services which can fit all the individuals who come to seek for services from the Wells Fargo company.
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Product lines
Product lining is the act of offering many products that are related for individual sale or separate sale. This expands the amount of different products for consumption by the customers. Wells Fargo offers wide access to a great range of investments. This helps the customer to have his/her investments work together to accomplish their financial goal.
It also offers a variety of credit and lending services which help the customer build and secure his assets. It also offers variety of insurances which protect the customer from lifes unknown and known. It also offers advisory, accountant and business services.
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Extending the banks product lines will be advantageous in rising its sales, market share and demand.
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Service processes
This is the way the bank works to ensure the customers receive desired services. The managers work on regulating procedures that govern the processes. Wells Fargo takes time to get to understand the financial goals, endorse custom wealth managing strategies and solutions in addition to a regular review on the progress.
This helps keep the customer on track for the time ahead they want.
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Through its service processes, Wells Fargo has been able to achieve its mission and vision which is to help customers succeed financially.
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Physical evidence of service, service scape and ambience.
Physical evidence is the substance or material part of the service. It includes the environment of service delivery where the customers and the bank interact. There are very many environmental factors which have a great influence to the consumers of the Wells Fargo bank company. This involves the way which the consumers view the market and the market stimuli which is largely influenced by the marketers which are Wells Fargo itcompany. For instance, the consumers may find it suitable to use the Wells Fargo since they have very many branches which makes them to be convenient to many customers. However, they have members who are bilingual in nature and as a result makes it easy for the customers to communicate to the staff members.
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Physical evidence gives a productive mood to its customers and also themselves as the service providers hence contributing to the business success.
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Roles of the bank’s employees in service delivery.
The bank employees have the responsibility of understanding their consumer wants and interpreting their requirements currently and in future. They are key driving a sustained business success. To achieve this goal, Wells Fargo hires the right qualified employees, develops its employees to give quality services through education and workshop programmes, provides required support system in accordance with their needs, retains their best employees by giving favorable benefits. Because many services are provided by employees, shutting the service execution gap is to a great extent reliable to human resource strategies.
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Developing and being able to nuture a favorable service culture thoughout the entire bank will contribute to its success.
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Wells Fargo pricing objectives
The company pricing strategy of their products has a great influence on the designing of its Marketing plan. The Wells Fargo has a unique marketing strategy which makes them to be vibrant within the business industry. The company primarily places its focus to its customer by the development of prices which is based on their customer value within a particular market. These prices are more of sale oriented than profit oriented since the focus is mainly on the developing prices favourable for the customers rather than making profits and also because it offers some pricing strategies which are competitive for their different products and services which they offer as depicted (Mburu, 2015).
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Developing prices that are more sale oriented then profit oriented has helped the bank to attract more customers and maintain customer loyalty.
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Current pricing strategies of Wells Fargo
The bank focuses on its customers by using prices that are customer value based in its marketing mix. It also offers services that are highly competitive in the market. By lowering its products and service prices, the bank has been able to attract more customers and investors hence attributing to its success over the years as depicted (Ke,2014).
Its pricing policy is to a great extent dependent on its competitors and after conducting proper research, it fixes competitive prices.
It also changes its prices from time to time to fit the needs of its customers.
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Favorable pricing policies creates a good customer base, attracts new customers and maintains customer loyalty.
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Pricing tactics of Wells Fargo.
Different pricing tactic have enabled the bank attract new customers.
Discounting: The discounts offered encourage multiple purchases of different or the same products and also encourage bulk buying.
Penetration: the ban starts with a low price to attract potential customers before the competitors catch up with it.
Odd value pricing: this involves the tactic of selling a product 99.99 dollars instead 100 dollars which is more appealing to customers.
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The above tactics have enabled the bank to attract more customers and is ranked fourth greatest bank in the world.
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Conclusion
Market analysis lays the foundation for the marketing plan of nay company. Estimating the potential market should be accompanied by comprehensive research which will enable one reach basic assumptions regarding the market. Marketing analysis should be comprehensive and dig deep into the products, prices, place and promotion. From this powerpoint, the market analysis of Wells Fargo proves to be favorable and is suitable to derive a marketing strategy and plan for future success of the bank with some improvements in transparency and honesty to its customers.
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References
Mitchell, C. (2013). Wells Fargo Research. The Little Book of Big Companies, 123.
Sovern, J. (2017). Free-market failure: The Wells Fargo arbitration clause example. Rutgers UL Rev., 70, 417.
Mburu, P. G. (2015). Competitive strategies adopted by Wells Fargo (K) Limited to enhance competitive advantage (Doctoral dissertation, University of Nairobi).TF-8
Ke, W., Wuebker, G., & Baumgarten, J. (2014). A smart pricing strategy for banking. In The Routledge Companion to Financial Services Marketing (Vol. 271). Routledge.
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