Course: Marketing Fundamentals
Submission Date: 17th November 2009
ING-Direct (ING-D) is a marketing orientated bank that has launched into established markets in the last decade using differentiation as a way to build competitive advantage.
This report splits into Section A, based on information provided by the ‘ING Direct USA – Rebel With A Cause’ Case Study by IMD International, and Section B which critically assesses the ING-D website.
The Nature of the ING-D’s Value Proposition
Customer Value Proposition Creation
By engineering processes and products from the customer inwards, ING-D aimed to construct a customer value proposition that offsets perceived sacrifices with higher levels of perceived benefits in areas which resonate strongly with customers.
Value Proposition Summary
The key perceived benefits offered to customers are simple, easy to use accounts with no fees or service charges, no minimum balances, great savings rates, the convenience of 24/7 internet banking and quality service from an award winning call centre.
The perceived sacrifices are principally the physical evidence aspects of the service marketing mix that are associated with the traditional banks, including branches and ATMs. The other key perceived sacrifice is that ING-D does not offer a complete portfolio of accounts due to the lack of a Checking Account. Therefore customers potentially need to operate a number of accounts with different organisations.
The value proposition is supported through integrated marketing communications which utilise a range of tools and channels in addition to basic advertising, including sales promotion, events and online educational services.
The use of less traditional communication methods underlines the strategy of using differentiation for competitive advantage. It sets ING-D apart from the mainstream banks in brand personality.