Marketing channel proposal for bank of America Essay

Marketing channel proposal for bank of America - Essay Example This research will begin with the statement that marketing channels are important to a firm’s distribution objectives. The first is specialization and the second is contractual efficiency. The principle of specialization refers to the assignment of distribution tasks to firms that possess the necessary expertise. The paper presents the opening a 200 branch retail network embedded within the BS network. The marketing channel has two important parts: the physical distribution structure that moves a product from the manufacturer to the consumer or user and the consequent marketing structure that is established as a part of the channel of distribution to ensure the manufacturer that all marketing objectives are accomplished. The primary marketing objective of Bank of America is to profitably reach as many potential consumers of their products as soon as possible. The bank branch remains a viable and important delivery channel for retail banking customers and is the primary locatio n for new product sales. The Bank of America still expresses a need for the traditional bank branch. The advantages of a retail bank branch are security, branch business productivity and continuity, financial transactions, risk management, compliance with new regulations and preserving customer trust by building customer trust. Moreover, a bank branch can implement multiple sales promotions the whole year through sales contests and incentives; and special promotional deals (e.g., discounts offered during a specified period of time). Pull promotions are directed at end-use customers and are designed to encourage them to request a product from channel members such as wholesalers, retailers, or both. OPTION II. Utilising an internet only channel for its current account product. An internet only channel is an electronic marketing channel which enables clients to use banking and other financial services by employing various information technologies with no need for a direct contact with a bank clerk. This electronic banking is faster, better and cheaper.Bank of America can build a whole marketing strategy around high technology and quality. The issue of quality is a goal and a bond among all corporate functions. To exploit commitment opportunities, the bank can preempt its competitors. The business, however, has to be especially wary of environmental changes that can erode the value of its early investments. Size is beneficial only when there are compelling advantages to being large, such as economies of scale, scope, or experience. Advantages through preferred access to resources, information, or customers can give a business a sustainable advantage that is independent of Bank of America will inform their clients of the time schedule within which they can order individual services and the time of execution of orders for each individual state-of-the-art electronic marketing channel. Consequently, there will be trade-offs. Greater convenience increases security risks, and greater complexity reduces convenience. OPTION III. Adoption of the current MBNA model which focuses on the telephone as the core channel for its credit card, loans and insurance services. The challenge for banks is to create value and to retain control over their customers. Telephone service is crucial for banks. Telephone service enables wire transfers, automated clearing house transactions, automated teller machine transactions and inquiries, remote processing, and teller terminals located in branches but connected to an off-site host computer. It also fosters the numerous bank functions that rely on voice connections. However, the telephone as a core service and marketing channel for the bank suffers from specific weaknesses. One, when there is no electricity, there is no telephone service. Second, telephone outages which result from natural disasters can cut off bank transactions for a given period of time. In order to improve customer service, the bank can offer