QUESTION 1: Theoretical Essay (About 1,000-1,500 words) 20 marks
"The marketing concept philosophy should guide the strategic marketing planning
process to
ensure that a concern for customer satisfaction is an integral part of the process and
permeates
the entire company". Discuss this statement with particular reference to the various
philosophies of marketing and the components of the strategic marketing planning
process.
QUESTION 2: Case Study – First Bank Systems of Minneapolis (About 1,0001,500words) 20 marks
First Bank Systems (FBS) of Minneapolis engages in three core business areas:
retail and community banking, commercial banking, and the trust and investment
group. Retail and community banking includes consumer and small business
banking, residential mortgage lending, and consumer and corporate credit card and
payment systems processing. Commercial banking provides lending, cash
management, and other financial services to midsized and large corporate and
mortgage banking companies. The trust and investment group includes corporate,
personal, and institutional trust services; investment management services; and a
full-service brokerage company. In March 1994, the company’s assets exceeded
$26 billion. FBS’s mission statement says, "We will be one of the top-performing
banks, measured in terms of market share and long-term profitability." A major
goal is to obtain the leading market share in the markets that FBS serves. This goal
is pursued, in part, through acquisition.
FBS’s growth strategy seeks to aggressively expand in a number of financial
services. For example, Duluth-based St. Louis Bank for Savings — the fifth largest
thrift in the state — was acquired by FBS in 1994. The acquisition makes sense
because it gives FBS a stronger presence in Duluth and falls in line with the
company’s strategy of trying to beef up its position in major cities and regional
trade centers. When FBS purchases a financial institution, it has determined many
strategic, geographic, and logistic reasons why the institution is a good fit. One
very important reason is the organization’s customers. And retaining l00 percent of
the acquired institution’s customers is one of the most critical goals during
acquisition and integration. Julie Cornelius, vice president of acquisitions
integration, says, "We want customers of the acquired organization to be disrupted
as little as possible. We want them to have confidence that with the new
organization, they’ll receive more value for their banking relationships through new
products and services. If we have to take something away, we hope we’re adding
benefits someplace else."
Questions
1. Who are a bank’s retail and community customers? What problems do these
consumers have with banks? How can a marketing orientation improve the
marketing of bank services?
2. In what way can the bank’s information system be used to accomplish the
integration of new customers?
3. What environmental factors are most likely to influence a bank’s operations and
its service to its customers? How can a bank obtain information about these
factors?
