Christopher A.

Gordon
Franklin Bank

FRANKLIN BANK MARKETING PLAN

SPRING 2006

TABLE OF CONTENTS

THE BANK PAGE 2

PLAN AREA PAGE 2

THE PLAN PAGE 2-3

THE SURVEY PAGE 3-5

TARGET MARKET PAGE 5

PRODUCT ACTION PAGE 5-6

PRICING ACTION PAGE 6

DISTRIBUTION ACTION PAGE 6-7

PEOPLE ACTION PAGE 7

POSITIONING ACTION PAGE 7

PROMOTION ACTION PAGE 8

IMPLEMENTATION TIMELINE PAGE 8

THE GOALS PAGE 8-9

EMPLOYEE IMPLEMENTATION PAGE 9

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 Christopher A. Gordon
Franklin Bank

The Bank

Franklin Bank is located in Franklin, Illinois a town of an estimated population of 650. It

is a single facility location with the closest major city being Jacksonville. Franklin is

mostly a bedroom community with the school district and Hamilton’s Catering being the

largest employers.

Franklin Bank is a $25 million institution with deposits of just over $21 million. The

workforce at Franklin Bank consists of seven full-time and one part-time employee.

Franklin Bank does not lead the banking industry in the technology field, but depends

more on managing relationships.

Plan Area

The plan will include the entire bank because the goal is to increase local commitment of

Franklin Bank.

The Plan

The plan is to achieve a stronger hold on deposits in the community of Franklin. The

marketing plan will be directly at Franklin citizens. Increasing the local deposits by 10

percent will allow for increased fee income and decreased cost of funds. The marketing

plan not only increases local customer base but decrease cost and increases net earnings.

Franklin Bank is of the belief that they can market the locality, service, and dependability

of the bank we can increase local core deposits.

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 Christopher A. Gordon
Franklin Bank

Quantitative Numbers

Marketing Plan
New Accounts Borrowed Funds
10% of Savings and Checking accounts $658,566 Borrowed Money $658,566

Income at a 7.0% return $46,100 Income at a 7.0% return $46,100

Expense at a 2.0% rate $13,171 Expense at 5.0% return $32,928

Net Income to the Bank $32,928 Net Income to Bank $13,171

NET DIFFERENCE IN OPTIONS $19,757

The Goals

1. To increase the bottom line of the bank through increased deposits. The growth

will allow the bank to pursue additional loan deals through customer contacts.

2. To increase the spread of the bank. The cost of core deposits is less than raising

funds through alternative methods.

3. To increase the number of local people making Franklin Bank their primary bank.

Loyal local customers tend to be the most profitable for the bank.

The Survey-Development to Results

Development

All employees were asked to come up with questions to ask on a survey to customers and

non customers alike to find out what made them choose the bank they currently use and

what would entice them to bank with us. From the employee’s questions, we came up

with 20 questions to ask the people to be surveyed.

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 Christopher A. Gordon
Franklin Bank

The people survey would be a random selection of gas and water customers in the Village

of Franklin. Upon pulling the customers names, we reviewed for any delinquent

customers, employees of other banks and anyone we had previously caused the bank a

loss.

The surveys were done by phone with a goal of 30 answers. Each employee was given a

list from which to operate.

Questions and Answers

We were able to get 33 responses from 19 current customers and 14 from non customers.

Following is a sample of the questions asked by the employees and the collective answers

for these questions.

1. At what bank do you keep your checking account?

19 Franklin Bank 2 Wemple State Bank
4 Premier Bank 1 Warren Boynton
1 US Bank 4 Jacksonville Savings
1 Farmers State Bank

2. What are your main reasons for banking there?

28 Location 14 Family Tradition
18 Convenience 21 Hours of Bank
4 Fast Service 18 Trust
10 Products Offered 3 Reduced Fees
6 Know an Employee 6 No Reason

3. Do you bank at more than one bank?

27 Yes 6 No

Who provides for your loan

4. needs?
16 My Bank 2 Other local bank
2 Local Credit Union 3 National Bank
9 Any where I can get it 1 Internet

5. What products does a bank need for you to bank there?

10 Free Checking 4 Telephone Banking
21 Debit Cards 18 ATM
11 Online Banking 3 Drive Up
6 Overdraft Protection

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 Christopher A. Gordon
Franklin Bank

Results

Following the survey Franklin Bank has come to some conclusions. First, people have

more than one bank. Second, they bank on location and hours of the bank. Third,

customers want to bank with people they know.

We also found that people don’t change banks often because of the work that is involved

in moving to another institution. They also develop a since of comfort with the bank they

currently use.

Overall at Franklin Bank we believe if we can get the customer in the door we will be

able to maintain them as a customer. The personal service and attention to customer’s

need make customers loyal to Franklin Bank.

Target Market

Franklin Bank has chosen to target the citizens that live in Franklin that are not currently

Franklin Bank customers. The bank can focus on the fact that we are local owned and

operated by people that they know and trust. We will put a focus on the potential

customers that commute to Springfield for employment. Adjusted Gross Incomes tend to

increase for the people that commute to Springfield. These potential customers will

provide an opportunity to quickly grow deposits.

Product Action

Franklin Bank has come to the conclusion that we need to add two new products in order

to be competitive in the market place. The survey allowed us the opportunity to see the

need for the new products. These product additions will be necessary in order to attract

new customers.

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 Christopher A. Gordon
Franklin Bank

Tier Money Market

Franklin Bank has come to the conclusion that a tiered money market account was

necessary to keep large depositors from moving their liquid funds. Many large depositors

are looking to keep their funds liquid in the rising rate environment. Historically,

Franklin Bank has strayed from offering more for larger deposits but has recently seen

the need through the survey and loss of deposits to add this product.

Online Banking

Franklin Bank has begun the process to begin online banking. It was noted by eleven

potential customers as a needed product to be their bank. There will be an increased cost

to the bank, but in order to compete in the market place we need to add this product. A

survey done 10 years ago showed no need for this product with our current customer

base, but the new survey of showed the need for this product. In adding this product we

will market it to all customers.

Pricing Action

Franklin Bank has been fortunate to be able to price in a way to protect the always

decreasing spread. Franklin Bank has found through the survey conducted and

historically that rate is not the priority in customers and prospects decision on choosing a

bank. Franklin Bank has found that our customer service, professionalism and

knowledge of our customers keep them coming back. Therefore at this time, Franklin

Bank does not see a need to make a change in the pricing structure.

Distribution Action

Franklin Bank will distribute the information through the current venues being used

including, radio and paper advertisement. We will also add to this by using a website that

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 Christopher A. Gordon
Franklin Bank

has more information. A primary source of distribution will be the employees of

Franklin Bank.

An officer call program is being developed that will ask each of the five officers of the

bank to make cold calls each week. Each officer will be asked to contact three people a

week either via phone or personally.

People Action

Franklin Bank’s philosophy is that we will provide the best customer service in the

friendliest way possible. The management at Franklin Bank believes this must be the

basis for our marketing plan in order to survive as a community bank. Each employee is

empowered to provide the needed service to make and keep customers satisfied with

Franklin Bank

We will market our employees as individuals that provide individual attention in a quick

and thorough way. We will attempt to instill the value of customer service being greater

than the value of bigger bank options.

Positioning Action

The survey conducted has lead us to conclude that our market values a local bank. The

market believes local banks should offer great customer service. Franklin Bank has been

a strong believer in the same theory of customer service. The market plan should

demonstrate Franklin Bank desire to meet and exceed clients’ customer service needs.

Our main position will be “Franklin Bank located at the corner of courtesy and

convenience.” We think this will set us apart from our competition.

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 Christopher A. Gordon
Franklin Bank

Promotion Action

We feel that promotion will be a significant factor in the success of our marketing plan.

Employees will be the best example and form to communicate our ability to meet the

needs of our customers.

Franklin Bank will use radio and newspaper advertising along with the employees of the

bank. We currently use these form of advertising but will add some additional comments

about our great customer service. Our tag line will be “Franklin Bank located at the

corner of courtesy and convenience.” Every advertisement will contain this line as well

as a bank logo and a web address.

Implementation Timeline

Franklin Bank expects this marketing plan to be a change in the culture of Franklin

Bank’s sales environment. The Tier Money Market is to be in place almost immediately,

with marketing to follow. The tag line to be used will be added to all future

advertisements. The officer’s cold calling program will begin upon finalization of

details. We will monitor the affects of the change in programs on the bottom line.

The Goals

1. The goal for increased deposits is to have a growth of 10% in core deposits. We

will monitor this on a monthly basis by comparing core deposits to last month and

the same month in the previous year.

2. The goal to increase spread on deposits and loans will be measured through an

average of new accounts. Our initial goal is to increase the spread by 25 basis

points. Once that goal is reached we will set a new one. The progress will be

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 Christopher A. Gordon
Franklin Bank

monitored by reports of the new accounts and by looking at the overall spread of

the bank according to the balance sheet and income statement.

3. The goal for increase in local customer use will be to increase our exposure

among local residents. We will monitor this goal by reviewing the number of

new account relationship generated each month. By getting the entire

organization on board the bank will benefit from a new sale culture.

Employee Implementation

Franklin Bank employees will each be given a copy of this plan to review to have a basis

of understanding of the plan. The President and Vice President will then have a lunch

meeting with two groups of employees in order to explain in depth the goals and

expectations with the plan. After each meeting, employees will be asked to list any ideas

that they believe that might help reach our goals. We want all employees to feel like they

are a part of the plan will benefit from the increase to the banks bottom line.

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