15. Business and operating models
15.1. Business model
The customer facing unit of the bank i.e the wholesale banking division of the bank was segmented in to public, corporate, business and SME, which did not accommodate startup customers. To accommodate startup, the bank has established a dedicated micro business segment responsible for increasing their share in the bank's wallet. The bank has to provide proper value propositions to enhance the sales to be generated from the startup customers. The bank's business model should be designed to resolve all the above impediments and provide proper CVP to increase customer experience. Digital platform, mobile banking/money, and outreach strategies should be in place to serve the startups.
15.2. Operating model
Business entities must be agile, quicker and more effective to better customer experience, take advantage of new technologies to cut costs, improve quality and transparency, and add value. CBE should combine its digital technology and operational capability in an integrated and sequenced manner to establish a better startups customer's journey. Startups financing process should be digitized to simplify the customer’s journey, and customers should be able to open and operate a startups financing on-line through their mobile phone without physically visiting the bank. CBE has already mobile banking and CBE Birr platforms in which customers can save and borrow money using their mobile phones.
Credit scoring is a system of rating that uses past behavior and/or the characteristics of people that have already received a loan, with the objective of forecasting their behavior with a future loan or financial service. It can be developed based on either qualitative or quantitative information on customer behavior and characteristics. Subjective scoring is one example of a subjective scoring tool, where the weighting system used to develop an applicant's score is based on the experience and belief of the organization's underwriting staff. The integration of credit scoring with mobile banking and CBE birr to avail micro credit could have significant contributions to the bank, such as delinquency reduction, increased consistency in decision making, greater clarity in the decision process, improved efficiency in the lending process, development of new or differentiated products, minimizing rejection of credit worthy applicants, and implementation of risk-based pricing.
3. 1-3
Marketing
“The process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, and
services to create exchanges that
satisfy individual and organization
goals.”
American Marketing Association
4. 1-4
The Importance of Marketing
Marketing is Valuable to a
Variety of Organizations:
• Corporate For-Profit
• Nonprofit
• The Military
• Religious & Ethnic Groups
• Small Firms
• Individual Marketers
5. 1-5
Marketing as an Organizational
Philosophy
Can be Stated Formally
as a Mission Statement
Indicates the Types of Activities
the Organization Values
Can be Established Informally through
The Communications and Actions
of Top Management
7. 1-7
The Marketing Concept
• The purpose of an
organization is to satisfy
customer needs.
• Satisfying needs requires
integrated and coordinated
efforts through out the
organization.
• Organizations should focus
on long-term success.
8. 1-8
Building Customer Equity
Customer Equity is the Financial
Value of a Firm’s Customer
Relationships and Consists Of:
1. Profits from first-time customers,
and,
2. Expected profits from all future
sales.
9. 1-9
Three Ways to Increase Customer Equity
1. Decrease the cost of
acquiring new customers.
2. Retain more customers
longer.
3. Increase profits from retained
customers by selling them
more at higher margins and
with lower marketing
expenses.
10. 1-10
Building Customer Equity Integrates:
Short-term
Orientations
Long-term
Orientations
New
Customers
Existing
Customers
11. 1-11
3 Keys to Building Customer Equity
1. High loyalty levels lead to
increased sales growth, higher
profitability & higher customer
equity.
2. Completely delighted & satisfied
customers are best for earning
customer loyalty.
3. Exceptional value is needed to
delight & completely satisfy
customers.
13. 1-13
Marketing as a Societal Process
• Defined as “a process that facilitates the flow
of goods and services from producers to
consumers in a society.”
Producers of
Goods & Services
Consumers of
Goods & Services
14. 1-14
Marketing as a Societal Process
• Issues to Consider:
– What institutions are involved in the system?
– What activities do these institutions perform?
– How effective is the system at satisfying
customer needs?
– How efficiently can the system provides desired
goods and services?
15. 1-15
Marketing as a Societal Process
• A society’s marketing system is closely related to
its political and economic systems.
16. 1-16
Marketing Concerns in Eastern Europe
How to:
1. Become more market-oriented and consumer-
responsive?
2. Improve product quality?
3. Change product design, assortment, finishing &
packaging?
4. How to increase communications efforts?
5. Increase merchandising efforts?
6. Use competitive pricing?
7. Institute promotional pricing & price discounts
17. 1-17
Marketing is a Process
Consisting Of:
Marketing Exchanges
Marketing Strategies
Marketing Activities
Marketing Positions
Marketing Institutions
18. 1-18
Marketing Exchanges
• EXCHANGE is the
“transfer of something
tangible or intangible,
actual or symbolic
between 2 or more
social actors.”
• Transactions in
marketing exchanges
can use:
• Money
• Barter
• Time & Money
• Votes
Marketer’s Goods
Or Services
Buyer’s
Exchange
