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Unit 4 Bank Management
Creating Promotions
Promotion is an activity that increases consumer awareness of a
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commercial that recently made you laugh? The funny commercial made
you remember the product and is one way the company promotes it.
The methods and locations for promoting a product have changed.
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promotions on television and radio or in newspapers and magazines.
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Promotions can include almost any activity:
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milestones, such as buying a house, starting a business, or retiring
The banking industry has many regulations on promotions and
advertisements. Interest rates, for example, must be stated in specific
ways. Select terms must be avoided or included. If a certain balance
must be maintained to take advantage of an account feature, that must be
included as part of the advertisement. For example, if a customer must
maintain a minimum balance of $2,000 to avoid a fee, that needs to be
stated. In addition, the phrase Member FDIC must be included in anything
that promotes a deposit account or the bank as a whole. This signifies
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Corporation. Member FDIC must also appear on the homepage of the
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an example of a compliant print advertisement.
Making a Sale
Some type of contact is needed for
a sale to happen. Selling occurs in many
ways, but for banks, personal selling is the
most common.
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in contact with a customer, or potential
customer, that employee is applying
personal selling. Saying, “hello,” “how can
I help you?” and “is there anything else
you need?” are examples of personal
selling.
Cross-selling is a personal selling
strategy that encourages existing
customers to buy new products or
services based on their previous
purchases. Cross-selling is the result of
Ethical
Banking
It is unethical for a bank
or any other business
to take part in deceptive
marketing. It is important
for banks to not only
comply with laws, but to
ensure that any claims
made are in no way
misleading. This is not
only an ethical and legal
consideration, it is also
good business.
Green Banking
Banks spend a lot of time
and money on advertising
costs. Although online
marketing is becoming
more common, some promotional materials are
more effective in print form, such as brochures.
Many banks are now using environmentally friendly
supplies for their printed advertisements, such as
paper made from sugar cane, rather than wood.
Sugar cane actually biodegrades faster than wood
and is cleaner to make. This can be a perfect
alternative for paper stock used for marketing and
promotional materials.