Question

Financial services certainly have their hands full in the light of the novel coronavirus outbreak (COVID-19). Banks must also manage direct impact of COVID-19, put plans in place to protect its employees and customers from its spread. As the two months old newly appointed head of marketing for KANS Ghana Bank ( a local bank) critically discuss Five (5) out of the seven extended marketing mix strategies the bank can undertake in order to achieve medium to long term positioning and gain competitive advantage amidst COVID-19 pandemic

Answer 1

Answer:

The extended marketing mix (7P's) is the combination of seven elements of marketing that aim to work together to achieve the objectives of a marketing strategy. These 7 elements are:

product; price; place; promotion; people; process and physical.

The most important element in this time of crisis is Digital Banking as it will avoid personal contact.

Some Successful strategies that can be used in this critical time of Covid 19 crisis are :

Product:

This involves promoting the product to the target market.

Give Tailored Advice for the Vulnerable

The effect of the crisis can vary with different customers—some more vulnerable than others. Banks can utilize customer data platforms (CDP) to gather 360 degree information about their customers and segregate the vulnerable ones like self-employed, high-debt, old-age customers, etc. Synching a CDP with your existing CRM system can help you reach out to them with tailored products and helpful advice.

Price:

Pricing is an important element of marketing mix. Pricing is the only element that generates revenue while the other three elements represent costs.

At this time customers are facing income crisis. So, bank should try to help them as much as possible. Following strategies can be adopted.

Increase the limits for online transactions
Offer payment holidays, moratorium for loans, relaxation in EMIs, less stringent KYC norms, waiving minimum balance charges, relaxing additional authentication for family members, easier password reset steps and more
Also offer emergency credit facilities, access to fixed savings accounts, and products like loans & insurance at discounted rates.
Place :

This refers to moving the product from producer to consumer. In the present situation this is the biggest challenge.

Disincentivize Branch Visits

Encourage the customers not to visit the branch personally until and unless it is very important. Selling of products, payment all can be done through online forms, use of banking apps, online banking etc. Leverage your branch locator pages, ATM listings in Google and more to drive users who are potential branch visitors to online channels.

Promotion:

This is the most important and challenging part of marketing mix.This involves promoting or advertising your products to the customers.

Use Text Banners for Promotions and Location-Based Announcements

Digital Banking is the most important tool that should be used in this time of crisis. On the website bank should highlight the Covid 19 separately and changing measures adopted by banks to ensure safety of employees and customers.Sending personal messages to customers and wishing them health and safety is of great importance in this critical time.

Make use of small-sized dynamic banners and include messaging to highlight social distancing related measures, re-opening of specific branches in the location of the user or the local emergency customer care number.. This can also be used to announce the availability of 24/7 customer care and digital support for business users, priority banking etc.

Physical:

It includes the elements of the physical environment the customer experiences.

The defination of this element will be completely changed in the present adverese times. Digital will be the new physical. Customer care executives, bank staffs etc can make personal contact with customers through digital channels, phone calls, messaging apps. To handle complex customer queries virtual apps like skype, zoom etc can be used. Regular updates about Covid 19 outbreak, changing banking regulations to meet the crisis can be informed to customers through digital platform.

To conclude Digital banking serves as the best bet for banks to navigate the crisis. Banks need to be more creative with digital services more than ever. Don’t forget that the world will go back to normal one day. Until then, we need to stay digital and stay safe.