1,000–1,200 words: Situational Analysis and Market-focused Position Statement

Running Head: MKTG 320: Advertising and Public Relations

Understanding Your New Target Market

Enrique Ramirez

Colorado Technical University

MKTG 320: Advertising and Public Relations

Introduction

Every organization has a target market with its marketing efforts and the messages sent out always have to resonate with the market. Further, the channels of communication chosen have to be fit to reach the target market. Currently, the bank has been targeting people with formal jobs to open accounts with them. However, the bank wants to reach out to people in the informal employment sector. It will be important to highlight the different needs of each segment of customers. The marketing public relations efforts should now be adjusted to suit the needs of the new target market (Howcroft et al., 2003).

People that are in formal employment earn a regular income and are more likely to be knowledgeable about the existence of different banking facilities. As such, when targeting these customers, it is important to highlight the benefits of using one bank over the others. These customers will use their basic bank account to receive their salaries. It would therefore be convenient to offer them Automated Teller Services in an as many places as possible. Further, the withdrawal charges should be competitive when compared to what other banks are offering. Other needs of these customers include an easy way to contacts their banks in case of any queries (Beckett et al., 2000). Further, these customer would need value adding facilities such as salary advance services in case of emergencies. This is an example of a service that banks have offered customers in the past to make them use their banking services over others.

The marketing public relations to these customers in the past have been educating these customers about other products they can purchase. For instance, these customers have been encouraged to purchase insurance products that suit their various lifestyles and age. Convincing these customers is easy because they already have a relationship with the bank and a level of trust has been established. However, as will be seen, the needs of the next target group of customers are quite different (Beckett et al., 2000).

People who are not formally employed first require education on the importance of taking banking products. Therefore, marketing public relations messages have to focus on the benefits of banking services. These people need banks that are close to them and whose process of applying for a bank account is quite easy. The cost of maintaining the account should also be affordable. Some of the products that this segment could require would include saving products so that they can put together enough money for investments from their irregular incomes (Beckett et al., 2000).

The marketing messages to these people should be detailed so that these people understand the value they will be getting from the specific banking product. Further, the messages should be sent through channels with a personal touch. For instance, banks could send out their sales representatives to areas with a high population of people in informal employment. Sales representatives are at hand to explain to potential customers the benefits and any other queries that they may have (Beckett et al., 2000).

Key Messages

The messages sent to the new market will highlight the possible risks of not having a banking service or even a savings plan. The messages will highlight possible contingencies that arise and require people to raise a large amount of funds within a short time. The bank will then offer a solution to these problems by formulating savings products for these customers. Further, the bank may offer overdraft facilities to these customers in case of emergencies. The bank has to ensure not to use complex terms when marketing these services because it may discourage people from taking up the products.

The bank has also to find ways of branding itself as a local bank that understands the needs of this segment of customers. For instance, the characters in advertising messages should be those in the informal sector. The choice of words and language is also critical in the branding efforts of the bank because excess formality could push the customers away. In addition, if the bank decides to use public figures in the marketing campaigns, it should be a person that the population can identify with in terms of financial situations. Finally, the choice of channel to reach customers with is quite important because it determines the number of customers that will be reached (Lee, 2002).

Effectiveness of message

There are a number of factors that will lead to the effectiveness of this marketing effort. First, the customers will have a chance to ask questions because the marketing channels allow for this. Further, the messages are detailed and as such, customers will fully understand the benefits they will be getting by signing up for the bank's products. The bank will complement the marketing efforts by designing its products in a manner that is most beneficial to customers. For instance, the bank accounts should have little maintenance charges and should offer services that help customers eliminate the effects of having an irregular income (Beckett et al., 2000).

Digital marketing channels may be slightly effective when targeting this segment of customer. However, not every target customer in this market segment uses the internet and as such the bank cannot rely solely on this channel to reach the target marker. For those that use social media and visit the internet regularly, the bank should capitalize on this to form a close relationship and build trust with them (Howcroft et al., 2003). The internet provides a platform for customers to ask questions and the company should always be at hand to answer their questions. Digital methods of communication should be complemented by traditional methods of communication. For instance, the company could send out sales representatives to reach customers in their areas of residence.

Other methods of targeting customers include civic education among customers to convince them about the need to be covered in the financial sector of the country. They can also be targeted using mass media channels such as television and radio advertising. Print messages can also be sent out using brochures that sales representatives can carry around.

Conclusion

As seen, each target group or segment in the market has special characteristics, needs, and so forth. The bank has to adjust its marketing and public relations efforts when targeting a particular target group. Currently, the bank markets itself to people in formal employment but wants to expand and tap into people with irregular incomes and little knowledge of financial services. The bank has to brand itself as an all-inclusive one so that the target customers feel valued by the bank. The marketing channels also need to be simplistic and allow for customers to seek clarifications. While some of the customers are reachable on digital channels, it would be effective to complement this with mass media advertising.

References:

Beckett, A., Hewer, P., & Howcroft, B. (2000). An exposition of consumer behaviour in the financial services industry. International Journal of Bank Marketing, 18(1), 15-26.

Howcroft, B., Hewer, P., & Durkin, M. (2003). Banker-customer interactions in financial services. Journal of Marketing Management, 19(9-10), 1001-1020.

Lee, J. (2002). A key to marketing financial services: the right mix of products, services, channels and customers. Journal of Services Marketing, 16(3), 238-258.