The problems in this case are, BBVA Compass wants to achieve the following marketing goals with limited resource allocations: * Building awareness and trust in the brand.
* Improve satisfaction and retention customers and cross sale to them. * Bring in new customers and increase total number of accounts through online and offline marketing.
1) The role of offline advertising is to build brand awareness and improve consideration among potential customers for opening new checking accounts. The name change of the bank to BBVA Compass dropped the brand awareness to 48% and offline advertising is trying to get it up to 53% by 2010 through sponsoring NBA, WNBA and ESPN. * The role of online advertising is to acquire new customers by creating online brand awareness and opening new checking accounts. * In my opinion the 2010 budget allocation is not appropriate because Exhibit 2 showed that customers value free checking services and convenient bank locations more than online support. 5% of BBVA previous customers came from online service and 95% from offline (80% from branches, 15% from telephone and direct mail). So, I think more allocation should be given to offline media and improving customer services.
2) I totally agree with this decision. Because after the name change of the bank to BBVA Compass, the brand awareness dropped to 48% and offline advertising is trying to get it up to 53% by 2010. Signing a multiyear sponsorship with NBA and ESPN will increase brand awareness of BBVA though broadcasting advertisement in primetime slots all over US.
3) When potential customers search for a checking account on Google or other search engines the ad of BBVA compass will be there and which can take customers directly to the bank’s official page. This could be done by either paid search process or by display ad process. In the bank’s official page visitors can complete an application for a new online checking account. About 10% of the...
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