CASE ANALYSIS

PURPOSE: The purpose of this memo is to provide an analysis and recommended course of action for the ways in which First National Bank of Kettering can increase its customer base by advertising available services more effectively to a target market.

BACKGROUND: First National Bank is located in Kettering, Ohio. Recently a survey of 5,000 participants was taken regarding peoples thoughts on the bank. Despite advertising several months before the survey, 77% of the respondents did not remember seeing any information about the bank. Furthermore, 67% of those surveyed were surprised when the interviewer informed them of the services First National Bank offered. The citys demographics has a substantial impact on what and how the bank should advertise their services: All minorities combined make up only around 5% of the total population. 95% of the population is Caucasian. Kettering has a highly educated population; 91% have finished high school and 31% have finished college. A majority of the households are married-couple families. 38% of the population is nonfamily households. Citizens of Kettering tend to buy houses (67%) rather then rent (33%) so many will need loan and mortgage services FNB offers. Low unemployment rate, only 2.2%. Many citizens work in management, professions, sales, or related occupations. The average family income is around $56,000, which is higher than

normal. This valuable demographic information on the citizens of Kettering tells a lot about the effectiveness of what First National Bank is currently doing and what it could do to improve its business. First, Ketterings people are highly educated and have good jobs. Second, because the average income is so high, the people of Kettering need the services that First National Bank offers. For example, many students or their parents would benefit from the education loan services the bank offers considering the amount of students who live in the community that attend colleges or universities. Lastly, people are not learning about the bank through advertising, this area is most important to focus on in terms of engaging the target market. All in all, First National Bank needs to make sure its target market (and potential customers) are aware of the many services it offers. There are currently a few propositions that First National Bank has discussed regarding its current advertising media and schedule. Rebecca Heffinberg, the banks marketing director, is suggesting that the bank cut advertising in half. She wants First National Bank to cut back on traditional media and focus on promotion and public relations. She has also suggested various ways in which the new advertising budget should be allocated and the areas that need to be improved.

RECOMMENDATION / RATIONALE Based on the above analysis, it is recommend that First National bank invest its advertising budget in an Integrated Marketing Communications Program within the community that focuses on public relations and promotion of the services it offers: FNB needs to focus primarily on community events throughout the city of Kettering. These opportunities will provide FNB with the exposure it needs and will provide ample room to effectively reach the target market.

FNB needs to start sponsoring sporting events within the community. High school and middle school baseball games, football games, and basketball games are perfect situations to promote the bank by having quality banners made that can be displayed where the target market can view them. The banners at baseball games need to be put up on the fence around the field, this goes for the football games as well.

At basketball games, FNB needs to have a basketball-shooting contest sponsored by the bank. The bank could pick 10 people from the crowd (preferably audience members that fit the target market) and give $100 checks to all participants if they open a checking account at FNB. The winner will receive an additional $100 if they open a checking account. This will provide an opportunity for a bank representative to promote the banks services over the PA system.

At these sporting events, FNB needs to have a representative of the bank go to the games and throw out free t-shirts, hats, cups, and other promotional items into the crowd during halftime. People love free stuff and wearing/using these items will promote the bank and get their name out there.

The bank needs to start promotional activities that focus on the many services FNB offers. A promotional campaign could be started where the bank will give $100 to any member of another bank if their bank has a wider amount of services offered (when they come in and talk to a FNB banker). This will get the target market inside FNB while simultaneously having the opportunity to explain the vast amount of services it offers besides the basic amenities. The citizens of Kettering are highly

educated and want to make sure their making the right decision (belonging to a bank that offers the best services). This activity could be announced at the sporting events as well. Even though the banks marketing director wants to focus less on traditional media, they still need to concentrate on print. Target markets composed of highly educated people with good jobs tend to read print more than other demographic groups. Newspaper ads still need to be run along with color ads in a local magazine (think Ketterings version of Murfreesboro Magazine). First National Bank still needs to invest in billboards, but cut back on them. It will provide an opportunity for a large audience to be exposed to the ad at a reasonable cost. The billboards will be based off the magazine ads. An online loan rate generator could be created and implemented in local car dealership websites. This would allow current members to see what their rate would be as well as non-bank customers to see what their rate could be if they were a member. Once they see how good the loan rates are, they will want to know more and visit a FNB location to get additional information on other services the bank offers. This will affect the target market in a way that will get some to switch banks. The dealerships could promote FNB when customers come in to buy vehicles and need loans by explaining how good FNBs loan rates are. FNB could pass out dealerships pamphlets or special deal brochures when explaining loan options to members regarding vehicles.

NEXT STEPS To implement this aggressive course of action requires the following steps: Representatives of the bank need to visit local print designers to choose the best quality banner offered. The bank is trying to get the attention of highly educated customers with an above average income so image is everything, including the quality of the sign. The signs need to have oversized QR codes on them as well (target market will more than likely have smart phones with a QR code reader) so that potential customers can go directly to their website and see the services it offers. The signs need to be designed and made by 3/14/2013 in order to catch the spring sports. FNB representatives need to contact all local high school and middle schools to reserve a spot to display the banners at sporting events. This needs to done the same time the signs are done in order to maximize exposure without wasting time. The online loan generator needs to be programmed by the appropriate FNB employee or programmer. Representatives need to visit car dealerships and create a co-op advertising campaign in order to implement the generator on dealership sites. If this does not go through, the appropriate payment must be made to implement the generator on dealership sites. This all needs to be set up and the loan generator implemented by 4/14/13. New and improved ads needs to be designed that cater to the correct

target market more effectively. They need to focus on and stress the quality of the services they offer in these ads. Different layouts of the ads need to be created for use on billboards. These new layouts need to be created and media space needs to be bought by 4/14/13. Alternative ads (same campaign) need to be designed that focus on the $100 promotion if non-bank members come in and prove that their bank offers more services than FNB. These ads could be placed in a broader selection of media such as billboards and TV spots to reach a larger audience. The ads need to be designed and media spots bought by 4/30/13.