Transcript Branding - RBAP-MABS

Microenterprises Access To
Banking Services
9th Mindanao Supervisors Forum
Strategic Marketing
for Microfinance:
Branding
Session Objectives
Participants will:
1. Learn the basic marketing strategies on
microfinance operations by enhancing;
 Marketing skills - a key to improving
outreach and expansion;
 Identify their MF product’s strengths &
weakness vs. competitors;
 Innovative ways of retaining clients
2.
Delinquency Management
 Remedial management & other alternatives
 Collection techniques on delinquent accounts
Strategic Marketing for
Microfinance
I.
II.
III.
Corporate Branding Strategy
Product Strategy
Customer Service Strategy
Overview: Introduction
Evolution
 Strategic Marketing Framework
 Information Packages
 Characteristics of Marketing
Financial Services

Shift from Product Driven to Market Driven
In most businesses the “product-driven”
approach has been superseded by the “marketdriven” approach
In recognition of value in retaining customers
than attracting new customers who cost more.

Market-led approach allows banks to:
 Identify different client needs
 Tailor products/delivery systems to meet
those needs;
 Examine cost-effective ways of serving niche
markets
From Product-Driven to Market-Led to
Product Driven ??
Market-led approach allows banks/MFIs to:
– Identify different client needs
– Tailor products/delivery systems to meet
those needs
– Examine cost-effective ways of serving
niche markets
What happened?
The Rural Bank Scenario- Product Driven Problem
 “Drop
outs” and multiple membership are
usually due to inappropriately designed
products


But the informal sector (usually
unrecognised) is the main competition
Often driven by blueprint replication of
existing models developed for other
markets/clients
Marketing is:
The business function that:
 identifies current unfulfilled needs and
wants,
 defines and measures their magnitude,
 determines which target markets the
bank can best serve, and
 decides on appropriate products,
services, and programmes to serve
these markets.
Strategic Marketing Framework
1st Tier
Strategies
The Marketing Strategy
A
Corporate
Brand Strategy
2nd Tier
Strategies
Development of brand
attributes & positioning
statement
Branding communication
plan
i)
ii)
Internal
External
Corporate identity
B
Product
Strategy
Development &
differentiation
Brands, Taglines, USPs
and Benefit Statements
C
Product Delivery &
Customer Service
Strategy
Personnel training &
development strategy
Customer service
Customer orientated culture
Pricing strategy
Delivery process development
Sales strategy & product
management
Technology strategy
Direct - push
Corporate communications
& public relations
Advertising &
promotions - pull
Client reward - retention
Infrastructure development
strategy
Sources of Information
Informing the Strategic Marketing Framework
Strategy
Support Functions /
Activities
1st Tier
Strategies
The Marketing Strategy
The Product
Strategy
Competitor
Analysis
The Corporate
Brand Strategy
Market
Analysis
Product Delivery &
Customer Service
Strategy
Customer
Analysis
SWOT Analysis
PEST
Analysis
Major Sources of information

4 packages that will inform almost all aspects of
an institution’s marketing activities:
1. Market Analysis – which profiles and
understands the bank’s target/potential market;
2. Competitor Analysis – which profiles and
understands the bank’s competitors (both
formal, semi-formal and informal);
3. Customer Analysis – which tracks the bank’s
performance through customer research,
particularly through customer satisfaction
analysis; and
4. PEST Analysis – which examines the Political,
Economic, Social and Technological environment
within which the bank operates.
Special Characteristics of Marketing
Financial Services (1)
1.
2.
3.
Intangibility: No “tyres to kick”! And so
customers depend on what they can see
and the corporate/product brand
Inseparability: Between service and
provider – this is declining as agency
arrangements growing
Standardisation v. Tailor-made: Huge
opportunities for standardisation but
clients often value personal service
Special Characteristics of Marketing
Financial Services (2)
4.
5.
Perish-ability: Money & most financial
services should be long-term/permanent
(savings in particular!) but some not
(cheques/insurance cover etc.)
High involvement: Clients will often
shop-around/get advice – particularly for
longer-term products
Special Characteristics of Marketing
Financial Services (3)
6.
7.
Regular decision-points: For short-term
credit-only MFIs, clients have the option
not to renew at the end of each loan cycle
High levels of brand loyalty: In wellestablished MFIs with well diversified
product mix:
 Spectrum of products for lifetime needs
 Long-term products
 Parents opening accounts for children
Strategic Marketing:
Development of A Corporate
Brand
Session I
Overview:
Development of Corporate Brand
What is a Brand?
 Importance of branding
 Some Practical Examples of
Branding Issues
 Identifying Brand Attributes
 Examples of bank brands

What Is a Brand?
“ A name, term, symbol or design (or a
combination of them) which is
intended to signify the goods and
services of one seller or group of
sellers and to differentiate them from
those of competitors”
– Phillip Kotler, Marketing Management
Why Branding Is Important (1)
In industries with strong
COMPETITION:


Brands differentiates an organization
Banks must understand the
motivators and offer positive
response.
Are Brands Important?
Brands are particularly important for
financial service providers because:
 Many customers have limited knowledge of
(and of differences between) bank’s
services
 Many decisions involve long-term
commitments (savings, time deposits,
checking facilities, pensions & trust plans,
long-term loan products)
 There is no physical product to examine
Are Brands Important?
So many clients base their decisions
on:
 The reputation of the bank
 The belief in the reliability of the bank
and its services
 Their perception of the bank’s values
And so do potential staff:
 A good brand makes for easier
recruitment of staff
Branding
 A particular
set of attributes, which build on
existing perceptions of the bank-:
 “TradiTion
 “Your


of Leadership”- Bank of PI
Bank of Choice”
“The Bank You Can Trust”
“Subok na Matibay, Subok na Matatag”
What’s with these brands?
1.
Rural Bank of Macupad, Inc.
2.
SOLID Bank-Your Countryside Banker
3.
Eternal Bank –
The Leading Microfinance
Lender
Sample Brands
What does this brand connote:
Rural
Inc.
Bank of mATIBAY,
Simple Perceptual Map
Price
Quality
products
Convenient, serviceoriented environment
Un-packing the Simple Perceptual Map
(8 Brand Differentiators)
Price
Quality products
• Speed
• Reliability
• Design
• Features
• Technology
Convenient, serviceoriented
environment
• Reliability
• Services
• Relationships
• Personality
Focus one or two positioning issues: stand for something, clearly
and convincingly
Pointers in Branding
Understand what customers are looking for
– then sell it to them
– This is what we stand for (positive values
but not too specific)
– This is what we will offer you
 Test it. Validate it, using Focus Group
Discussions – do NOT guess!!
 Get potential clients into the branch - then
sell them the details of the products

Sample Brands- Banks
Sample Brands
So In Summary …
In
competitive
environments,
build a
brand!
Brand-It!
A brand is more than a symbol.
 In the public’s eye, a brand is a warranty.
 It is a promise that the service carrying that
brand will live up to its name, and perform.
 And depending on brands is just what
service clients do.

“A service is a promise, and building a
brand builds your promise”
Position v. Positioning Statement
POSITION (or statement of position). A cold-
hearted, no-nonsense statement of how
you are perceived in the minds of prospects.
It is given to you by the market
Attack the stereotype of your product or service.
Position v. positioning statement (2)

Positioning statement, by contrast, states how
you wish to be perceived. It is the core message
you want to deliver in every medium.
 It is aimed at influencing perceptions of your
service
Developing a Positioning Statement
Answer the following questions: Who: Who are you?
 What: What business are you in?
 For whom: What people do you serve?
 What need: What are the special needs of the
people you serve?
 Against whom: With whom are you competing?
 What’s different: What makes you different from
those competitors?
 So: What’s the benefit? What unique benefit does
a client derive from your service?