The key to recommending Riverside Credit Union's marketing plan is to determine the importance of each sector to either the short term or long term profitability of this financial institution. There are clues given so it is important to organize the information according to segment and marketing mix element. For example, community involvement differentiates RCU from the traditional banks, therefore a public relations campaign should be included in the marketing plan. The financial products are largely undifferentiated, but the level of service need not be, suggesting customer service training. Some products are short term while others are longer term so investing timeframe needs to be discussed. For example, RSPs and Mortgages are longer term, with mortgages providing greater risk. This compares favourable versus short term savings accounts or short term loans, again with loans providing greater risk.
Much work has been done on segmentation, and more work is required as here is no indication that the company tracks NPS (net promoter score) or changes in SOW (share of wallet). However, once each segment is analysed, key questions can be answered, such as: 1. which sectors should be prioritized and why, 2. what products should be marketing and in what priority, 3. as competition increases, which segments would you protect and how, 4. what initiatives would you put in place to yield short term benefits vs long term benefits, and 5. as you prepare your marketing plan, which plan elements would you be included above what you've already mentioned.
One option is to segment by potential. Given this approach, segment 4 (potential index of 200) would be prioritized. Another approach is to segment by profitability; given this approach, segment 1 followed by segment 3 would be prioritized. Segment 2 average profitabilty per client is higher, but segment 3 has more customers, therefore provides greater profitability.
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