Internets Impact on Banks Marketing Mix
TITLE
Discuss the likely impact on the marketing mix of a bank that decides to make increasing use of the Internet to provide its services.
ESSAY
Title: Impact of Increasing Use of Internet on the Marketing Mix of a Bank
Introduction:
The advancement of technology has revolutionized the way businesses operate, including the banking sector. One significant change is the increasing use of the Internet by banks to provide services to customers. This shift towards internet banking has a profound impact on the traditional marketing mix elements 💥 Product, Place, Price, and Promotion, as well as the customer💥centric perspective known as the 4 C's.
Product:
💥 The introduction of online banking services represents a new product offering for banks.
💥 Customers now have access to a more comprehensive range of services such as bill payments, credit arrangements, and insurance at the click of a mouse.
💥 Online banking also provides customers with personal control over their finances, allowing for instant review of their banking positions.
Place:
💥 The convenience factor of online banking enables customers to manage their accounts from anywhere using devices like laptops, tablets, or phones.
💥 The shift towards internet banking may impact the need for traditional physical bank branches, potentially leading to job losses among bank staff.
Price:
💥 Banks utilizing the Internet for service delivery may benefit from reduced location costs as compared to maintaining physical branches.
💥 However, the online banking sector is highly competitive, which may limit significant cost reductions for customers.
Promotion:
💥 With online banking, there are new opportunities for banks to promote and communicate with customers.
💥 Banks can market a wider array of services to individual customers through personalized messages, leading to more immediate and focused communication.
Evaluation:
💥 The integration of internet banking presents new opportunities and challenges for banks.
💥 The need to adapt the marketing mix elements to suit the online environment is crucial for the success of banks in today's digital era.
💥 Among the 4 P’s and 4 C’s, Price and Customer (now one of the 4 C’s) may be more affected by the use of the Internet due to increased competition and customer expectations for convenience and personalized services.
Conclusion:
In conclusion, the decision of a bank to increase its usage of the Internet for service delivery has significant implications for its marketing mix strategy. By reevaluating and adjusting the 4 P’s and 4 C’s in the context of internet banking, banks can capitalize on new opportunities and navigate the challenges posed by the digital landscape to better serve their customers and maintain a competitive edge in the market.
SUBJECT
BUSINESS STUDIES
LEVEL
A level and AS level
NOTES
Discuss the likely impact on the marketing mix of a bank that decides to make increasing use of the Internet to provide its services. [20]Answers could include: • Some description of the 4 P’s / 4 C’s. • Recognition of this change of emphasis to a focus on internet banking – a change of direction. • Impact on the 4 P’s / 4 C’s might refer to: – Product / Customer – revised product – on💥line banking – a new offer – personal control of banking for customers a more comprehensive product – access to instant review of banking position – a full range of services such as payment of bills to arranging credit and insurance at the click of a mouse. – Place / Convenience – opportunity to manage your account wherever you are – on laptop – tablet – phone – impact on traditional ‘high street’ locations – traditional bank staff to lose jobs. – Price / Cost – potential reduction in location costs – although internet banking is very competitive. – Promotion / Communication – significant change here – opportunity to sell many more bank💥related services – messages directed to individual customers – immediate and focussed. • Evaluative answers will recognise new opportunities and challenges to banks as they make increasing use of the internet and the requirement to relate the 4 P’s / 4 C’s to this new environment. • Comment may be made as to which of the 4 P’s / 4 C’s may be more affected by the use of the internet.