Intersession Project For the Class of 2019 - Madison, WI L E A S E N O T E For any questions regarding the Bank Marketing intersession project contact: Tom Hershberger [email protected]

Intersession Project

For the Class of 2019

BANK MARKETING

2017 Session

P L E A S E N O T E For any questions regarding the Bank Marketing intersession project contact: Tom Hershberger [email protected] 402-441-3131 For any administrative questions, contact the Graduate School of Banking staff: 800-755-6440

INTERSESSION PROJECT POLICIES Graduate School of Banking

(Updated July 2017)

Project Completion, Extensions & Penalty Points

Students may collaborate with fellow classmates when completing GSB projects to seek advice and/or to discuss ideas. However, students must submit their own final project that is unique to them (i.e. data interpretation, summaries, recommendations, etc.). If any student(s) is/are found to have plagiarized any or all of another student’s project (or submits a nearly identical project), all students involved will automatically receive 50 penalty points, will be required to resubmit an acceptable project, and will be disqualified from receiving any honors recognition upon graduation. If deemed necessary, GSB administration may also enforce additional disciplinary action up to and including removal from the program.

Key items and policies related to GSB Intersession Projects:

• Projects must be submitted on or before midnight of the due date to avoid penalty points.

• Students can receive one 30-day extension per project without penalty. A limited number of extensions may be requestedpast this “30-day free pass” and will be granted in 2-week increments to the next 1st or 15th of the month. Penalty points willbe assessed based on the following schedule:

o 1st extension: project rec’d w/in 30 days of original due date 0 penalty points o 2nd extension: additional two weeks past 1st extension 5 penalty points o 3rd extension: additional two weeks past 2nd extension 10 penalty points o 4th extension: additional two weeks past 3rd extension 20 penalty points o 5th (FINAL) extension: project must be received by June 1 30 penalty points

• Students needing an extension of any due date (including the 1st extension) must complete the extension request form foundon the Intersession Project website on or before that due date. For each project extension request a new extension requestform must be submitted.

• All projects must receive a grade of Acceptable or better in order to return for the next GSB Session.

• Projects receiving the grade “Needs Improvement” will be returned to students for correction and resubmission; resubmits aretypically due within 30 days unless otherwise indicated by GSB administration.

• June 1 is the final acceptance date for all projects. If a student has any outstanding project(s) as of June 1 they will becancelled from the program and will not be allowed to attend the 2018 Session.

CLASS OF 2019

INTERSESSION PROJECT DUE DATES Assigned at the 2017 GSB Session

GRADING INFORMATION

You will receive a word grade. The word grade will translate into points recorded in your student record

as listed below.

1st Letter of Your

Last Name

Project Due -------------- 10-15-17

Project Due -------------- 12-01-17

Project Due -------------- 01-15-18

Project Due -------------- 03-01-18 Exceptional 96-100 (recorded as 100)

Excellent 91-95 (recorded as 95)

Superior 86-90 (recorded as 90)

Very Good 81-85 (recorded as 85)

Good 76-80 (recorded as 80)

Acceptable 70-75 (recorded as 75)

Needs Improvement Under 70 (requires resubmission)

A - E Bank Marketing BPA/Funding LPM-Yr 1

Leadership Beyond

Management

F - L BPA/Funding LPM-Yr 1 Leadership

Beyond Management

Bank Marketing

M - R LPM-Yr 1 Leadership

Beyond Management

Bank Marketing BPA/Funding

S - Z Leadership

Beyond Management

Bank Marketing BPA/Funding LPM-Yr 1

NOTE: All projects must be submitted and receive a grade of Acceptable or better prior to your return to the next GSB Session.

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Graduate School of Banking

Madison, Wisconsin

Intersession Assignment

Developing An Effective Marketing Plan It's time to apply what you have learned about bank marketing activities. Your intersession assignment is to develop, document and submit a one-year marketing plan for your organization, division or department (whatever applies best to your job responsibilities). Your plan should follow the structure presented in the marketing planning class. Please use the attached table of contents as a foundation for your marketing plan. Then adapt your design and content to meet the needs of your organization, division or department. Important – this will impact your grade

1. Your marketing plan should include all of the sections presented in the “Marketing Plan Content” outline on pages 3 and 4. Make sure each section is clearly identified.

2. Double-space your plan content. Your plan should conclude with the Marketing Investment Summary, more commonly referred to as a Budget. Your budget should outline the financial commitments that will be required to implement the activities presented in your plan. The primary sections of your plan, including your situation analysis, should include the information needed to support your plan objectives, goals and strategies. If company performance information and research are not available to support your plan, prioritize your data requirements and collect the information you believe is required. The quality, validity and structure of your plan information, not quantity, is paramount to development of a good plan. There is no minimum or maximum number of pages required for your plan. The critical focus is on the quality of your plan and the related support documentation. Include the information and statistics required to assist with development and implementation of your plan. Your final project should be structured so that anyone reading your plan would have a clear understanding of what you plan to do and why it makes sense for your individual circumstances. If development of a marketing plan for your entire organization is not practical, because of your job responsibilities or position, please develop a marketing plan for your division, department or corporate area.

Example: In larger institutions, you might want to focus specifically on the business banking area.

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If you work for a non-bank organization, you can apply the marketing plan to your company or feel free to work with a banking organization where you have a relationship that would allow you to create a marketing plan for application at their institution. Be sure to include a full description of the scope of your plan in your introduction. The introduction is the best place to set the stage for your plan content and intentions.

If your organization has a strategic or corporate business plan, please develop a marketing plan that supports that plan. Much of the information required for the situation analysis section of the plan might already be available in your organization’s strategic plan. If a strategic plan does not exist, base your marketing plan on prior business practices and available information, such as, a mission statement, vision statement, corporate values, prior performance, budget projections or established corporate direction. The table of contents and project grading worksheet presented in the bank marketing class are the examples to follow for this assignment. Please use them as the guide to develop an actionable marketing plan that fits your circumstances. You are welcome to expand the content where appropriate to fit your organization's competencies. If you follow the outline and build each section with quality information, your marketing plan will meet the requirements for this intersession project. Hints for Success 1. Make sure each section of the marketing plan outline is clearly identified in your plan. 2. Present customer, competitor and trade area statistics, trends and research that

reinforce your plan’s objectives, goals and final strategies. 3. Develop a structure for your strategies and action plans. Include what you plan to do,

who will be responsible for leadership and the anticipated deadline for completion.

What Who When List a project or activity List a manager List a deadline List a project or activity List a manager List a deadline

4. Include a marketing budget that provides investments in activities and projects

required to support your planned strategies. 5. Provide continuity throughout your plan content. The situation analysis should

support why you selected your market focus, product focus, objectives and goals. Your strategies and action plans should support how you will achieve your objectives and goals. Your budget should support how you will invest financial resources to execute your strategies.

If you any questions about this intersession assignment, please contact: Tom Hershberger Cross Financial Group 6940 O Street, Suite 310 Lincoln, NE 68510 402-441-3131 [email protected]

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Marketing Plan Content

• Table of Contents• Introduction – History, Vision, Mission, Values

– History of your bank or division– Background of the company's marketing structure– Overview of the content you plan to present in your marketing plan– Statement of how you see the marketing plan being used at your organization– Summary of your organization's desired market image and reputation– Presentation of your organization's vision statement, mission statement

and/or core values– Description of your desired corporate brand (if one has been developed)– Outline of your organization's business philosophy and core business

principles• Situation Analysis

– Collect and record all of the information readers will need to understand andvalidate the recommendations presented in your marketing plan

– The information presented in your situation analysis should provide a logicalcontext for your plan's objectives and proposed strategies

– The sample situation analysis included at the end of this outline will providesome ideas for information you might consider including in your plan

• Market Focus– Describe the customer segments and geographic trade area that identify the

target markets that are being pursued with the resources and activitiesoutlined in your marketing plan

- Example: small businesses with less than 50 employees and under$25 million in annual sales located in Lancaster County, Nebraska

– Your market focus might have several market segments depending on yourcorporate competencies and success strategies

• Product Focus– Provide a description of the individual products or groups of products that will

be emphasized and promoted as the marketing plan is implemented- Example: business checking accounts and cash management

services, including Internet banking and sweep accounts• Marketing Objectives

– Establish specific marketing objectives to provide a description of thedirection of marketing efforts and outcomes

- Example: To increase market awareness and be known as the bestservice provider among local commercial bank competitors. Sayingyou want to be the best at something is difficult to measure, however,it sets direction and provides focus for goals and action plans.

• Marketing Goals– Create measurable performance standards that will be directly influenced or

caused by highly effective marketing efforts- Example: Increase primary top of mind awareness of the bank with

small business owners from 30% to 35%- Example: Increase the number of households with checking accounts

from 22% of all households to 28%– Include all of the goals necessary to determine if the organization's marketing

plan and marketing performance have been successful during the year

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• Sales and Marketing Strategies and Action Plans– Develop a list of marketing strategies that will help the organization achieve

your established goals and objectives- Example: Develop and introduce a new variable rate home equity line

of credit.– After the marketing strategies have been developed, accompany each

strategy with the action plans (things-to-do list) that will insure the strategy isexecuted properly

– All action plans should include responsibilities and deadlines to insureaccountabilities have been established for completion

- Example: Conduct market assessment of current equity line creditproducts in the trade area including loan fees, payment requirementsand interest rate schedules

Example of possible format: Action Plan/Activity/Project Responsibility Deadline Design and display point of sale signage Jim Jarvis Mar 15

• Marketing Budget– Include a summary list of expenditures to help outline what financial

resources will be committed to completion of each targeted goal or contactpoint with clients and prospects

The following example shows how the different stages of the marketing plan can be built with continuity from the influence of the bank's vision through strategy development and action plan implementation.

Vision Help each customer retire financially secure.

Objective Create a market reputation that ABC Bank is the best source for retirement planning and financial solutions.

Goal Increase the number of annual household investment and retirement reviews to 1,500.

Strategy Promote retirement planning services to all retail households with over $25,000 in total deposits at ABC Bank.

Action Plans 1. Develop and distribute a direct mail postcard to introduce all targeted households to

ABC Bank's retirement planning services.2. Design and implement a customer contact program to reach all targeted households

by telephone after receipt of the introduction postcard.3. Design and conduct a retirement planning information seminar for all households in

the targeted customer group.

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Suggestions for Situation Analysis Content

The following outline is only a suggestion for information that could be included in your situation analysis. Using the data collection and information management tools presented in the marketing planning class and included in the forms section of the class handouts, build an informative situation analysis. A large portion of the information can be collected from federal and state government agencies, local economic development organizations, universities, public access websites, SNL Financial and your organization’s data system. You decide what information is necessary to help readers understand your marketing opportunities and how you plan to achieve success. Anyone reading your plan should be able to connect the opportunities identified in your situation analysis with your planned objectives, goals, strategies and action plans.

• fdic.gov• ots.treas.gov• ncua.gov• occ.treas.gov• ffiec.gov

• treas.gov• US Census Bureau• Sourcebook• American Statistics

Index

• Trade associations• Bureau of Labor

Statistics

a. Trade Area Geographic Descriptionb. Trade Area Demographicsc. Population Statistics and Trends

• Population trends within trade area• Population trends for larger cities in trade area

d. Age Statistics and Trends• Age distributions in trade area• Mature market population in trade area

e. Income Statistics and Trends• Per capita personal income in trade area• Average household income in trade area• Household income distribution in trade area

f. Business and Agriculture Statistics and Trends• Number and average size of farm and ranch operations in the trade area• Business statistics for the trade area

− Number of businesses by type or category− Total number of employees in trade area− Average number of employees per business− Total annual sales in trade area− Average annual sales per business− Business concentrations by type of business

g. Deposit Market Share• Deposit market share for all financial institutions in the trade area

− Banks, savings and loans, savings banks, credit unions− Trade area insured institution statistics by governing organization

1. BIF, SAIF, FDIC, NCUA• Deposit growth trends by competitor

Sample

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• Regional regulatory trends and statistics h. Image and Positioning

• Employee engagement survey − Corporate culture assessment results − Image factor priorities − Product focus and priorities − Customers, Competitors & Delivery Systems

1. Customer Base 2. Competitors 3. Market Areas 4. Expansion Opportunities 5. Delivery System Opportunities 6. Target Markets

− Products 1. Loans 2. Deposits 3. Investments 4. Insurance 5. Trust 6. Delivery systems

− Bank Objectives and Image 1. Description of the Bank’s Image and Reputation 2. Three Things That Make the Bank Unique and Different 3. Strengths, Weaknesses, Opportunities and Threats 4. Community Involvement and Support

• Internal Communications − Company-wide Meetings and Communications − Department Meetings and Communications − Staff Performance and Activity Recognition and Reward Programs − Assessment of Staff Communications (employee surveys and focus groups)

• External Communications and Marketing − Media Utilization Summary

1. Mass media 2. Direct media

• Market Image and Positioning Research Survey − Primary and Secondary Relationships − Product Possession Levels and Propensity to Buy − Market and/or Customer Demographics − Financial Institution Selection Criteria

i. Financial Product Possession and Potential • Product penetration rates with customer households • Product growth in dollars and numbers by type of product

− Loans − Deposits − Investments − Insurance − Other services

• Average balances by type of product • Historical trends for all product categories emphasized in your plan

j. Competitor Analysis • Product comparisons

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• Strengths and weaknesses• Product or service expertise• Service fees• Delivery systems

k. Media Usage Comparison• Media and communication channels used• Assessment of effectiveness with targeted audiences• Competitor media assessment

l. Product Offering• Current Products and Target Market Analysis

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Marketing Plan Budget Example

The following marketing budget is a good example of a bank that categorized and presented their expenditures in the context of their product and market focus.

The other alternative for your budgeting process is to present the expenditures by type of expense, such as, newspaper, radio, billboards, press relations, television, etc.

Budget Summary Cost Free Checking/Free Gift ............................................................................................... $00,000 • Direct marketing, sales promotion gifts, periodic newspaper support and

merchandising

Consumer Lending ....................................................................................................... $00,000 • Equity line, fixed rate/term equity and other loans.• Direct marketing, newspaper and sales support

Lending Marketing Support .......................................................................................... $00,000 • Mortgage, professional and executive, sales finance, corporate lending and other

areas• Select media, direct mail, literature material, trade shows and other business-to-

business marketing

Brand Identity ............................................................................................................... $00,000 • Television, newspaper and outdoor advertising

Deposit Acquisition ..................................................................................................... $00,000 • Money market, CD, rate and new product promotion

Business Checking ..................................................................................................... $00,000

Corporate Marketing ................................................................................................... $00,000 • Signage at stadiums, telephone directories, etc.

Other Product Marketing ............................................................................................. $00,000 • Internet banking, bill pay and other products

Special Events ............................................................................................................. $00,000 • Grand openings, seasonal promotions, etc.

Customer Communications .......................................................................................... $00,000 • Statement stuffers, newsletters, direct marketing, etc.

Public Relations Events and Sponsorships ................................................................. $00,000

Printing and Production ................................................................................................ $00,000

Total ................................................................................................................ $00,000

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Sample Marketing Campaign and Promotion Calendar

If you decide to include a focused section for your campaign calendar and promotion reviews, be sure to include a simple calendar of events to assist the reader as they review your plan. Example

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Sample Strategy and Action Plan Implementation Matrix

Objective – Create a market reputation that ABC Bank is the best source for retirement planning and financial solutions. Goal – Increase the number of annual household investment and retirement reviews to 1,500. Strategy – Promote retirement planning services to all retail households with over $25,000 in total deposits at ABC Bank.

Action Plans Deadline Responsibility Develop and distribute a direct mail postcard to introduce all targeted households to ABC Bank's retirement planning services.

Jul 31 Bob Martin

Design and implement a customer contact program to reach all targeted households by telephone after receipt of the introduction postcard.

Aug 15 Sue Green

Design and conduct a retirement planning information seminar for all households in the targeted customer group.

Sep 25 John Wilson