1. Create advertising and public relations objectives that align to each one of the bank’s strategic goals. Be sure to use the specific, measurable, achievable, relevant, and time-bound (SMART) methodology?
2. Demonstrate how each objective aligns directly to an organizational goal?
3. Discuss the importance of using specific objectives to meet the organizational goals from measurement, accountability, and return on investment perspectives?
As a Vice-President of Advertising and Public Relations, it is expected to meet the organizational goals of the bank based on the current status. The bank has been stagnant for too long and the bank believes it is time to move forward. Bank mostly relied on referrals and never focused on strong public relations or advertising. There is a need to grow beyond existing customer base. It is expected to bring a fresh customer approach to the strategic initiatives for goal achievement. There is less competitive advantage as the other banks are providing with services more than this bank. Since around 30 years, the bank has grown up to 5 branches throughout the state. The banking services provided include savings account, checking account, loans and CD’s.
Strategic Goals of Bank:
- Increase ROI and overall profit
- Retention of customers
- Introduction of online banking or e-commerce services
- Using effective advertising and public relations
1. Creation of advertising and public relations objective
The objective may be attained by following a SMART methodology.
Specific- In the case scenario, bank has very less return on investment since people do not invest a large amount. The older generations are not technologically savvy and require personal attention while making face-to-face transactions. They refuse to use ATM’s and insist on receiving paper bank statements. Hence, the advertising campaign must focus on introducing such services to customers to make it convenient to them (Lovett, 2011).
Measurable- The bank scenario after making changes may be measured by increased rate of profit and return on investment. The expenses will be cut-down on an overall basis if there is an increase in profitability. The bank currently has five physical locations and the customer base is good. A high cost is carried by customer that reduces profit (Hens & Bachmann, 2008).
Achievable- The attainable or achievable goals are retention of customers by providing them with friendly services. The customers may also be able to emphasize service from bank by increasing its usage. The advertising must be performed in a way to obtain more investment from people that would increase rate of profit. Other banks have a higher competitive base that is eroding their current customer base (Lee, 2013).
Relevant- The major change that is required in the bank is introduction of online banking or e-commerce. According to the current market, there is a need to diversify from manual transactions to online services. The people may be able to serve themselves that would cut the cost down in the bank. The cost and resources required to put it into action would be totally worth of the benefits (Liao & Cheung, 2002).
Time-bound- There must be a deadline to put these strategies into action so that the organizational goals are achieved. There is an urgency backed by motivation to focus on the goals. The customers must conceive all kinds of services that bank offers as soon as possible so that they can introduce the bank to their known ones.
2. Demonstration of objectives aligning to organizational goals
Operational execution- Goal setting plays a key role in execution of company strategy. The goal alignment is done to communicate expectations of the customers in the bank, by making a progress on documentation and identifying employee strengths and weaknesses. This helps management to act and make decisions that help in attaining strategic goals rapidly. There must be effective communication in the management so that time is not wasted. Managers make a positive difference in the performance of employee. The focus is on strong customer service vy providing low cost to them. Advertising and Public Relation techniques must enable to get higher investment from customers. The improvement in public relations gives the customers a sense of trust and satisfaction to keep their deposits safe in the bank. The strategy is engagement of new customers so as to widen the circle of operations by working on the infrastructure. In the marketing world, it is called reach and frequency (Carroll, 2012).
Employee Engagement- Being a Vice-President of the bank, there is a need for establishment between effective goal setting process and successful bank. The duty is to encourage the entire executive team so as to engage in the organization and attain strategic goals. The employees must commit to perform at higher levels so as to provide the customers with maximum satisfaction. The new strategic goal is introduction of online banking or e-commerce which requires engagement of personnel for development of website and secure banking (Acharya & Kagan, 2004). The security for payment cannot be compromised. The current strategy is unprofitable in the market segment. There needs to be expansion in the new market segment which is possible with the engagement of existing employees or appointing new more qualified ones. There is limited growth potential in the current customer base. The bank must take care of which media to prefer for targeting customers. The employees must engage themselves in explaining the services to the customers (Mefalopulos, 2008).
3. Importance of using specific objectives to meet the organizational goals
It is important to obtain specific objectives in terms of accountability, measurement and return on investment perspectives so as to grow and develop the bank. There must be an establishment of new profitable segment that involves launching of new products and services, introduction of online banking service or e-commerce portal to create a new market segment. An integrated advertising program must be developed for creating strong public relations. There must be a personal touch with the customers so as to get greater investments with them. This will enable to obtain higher rate of profitability and return on investment. The accountability of objectives helps to keep a check on updates by understanding, anticipating and integrating different components of the plan ('ADVERTISING AND PUBLIC RELATIONS', 2000).
The advertising campaigns help in increasing the use of services by changing their attitudes towards the bank. Personal selling may be supported for the ease of customers so they don’t have to travel to the bank. Service may be emphasized by advertising techniques. The banks may prefer newspaper, radio, and direct posting and TV commercials so as to provide knowledge to the customers. The services may be demonstrated to the existing customers and grievances may be dealt with. The objectives are measurable in terms as the difference of profit can be measured. The advertising of the services establish an effective communication system between the customer and bank. There is a relationship of sympathy created between bank and customer by giving the broadest information about the activities conducted by bank (Mercier & Papadia, 2011).
The return on investment is necessary for the bank so as to cut down the expenses and increase profit. The personnel may be rewarded by special gifts and premiums if they are able to increase the profit of the bank. If the bankers are able to get higher investment form customer, they must be motivated in doing so further. Higher deposits will cut the cost down resulting in increased profit. This will give the bank a new customer base (Powell, Groves & Dimos, 2011).
By creation of new advertising and public relations, new heights may be achieved by the bank. The goals may be attained through team efforts. New market segment will be created if the plan is executed efficiently. Investigation may be further done to improve the customer base and profitability. The aim is to retain the customers by providing better services but cutting down the cost and increasing profitability at the same time. The market needs must be satisfied as per the target market so as to increase ROI. A marketing mix may be integrated that would combine the four elements.
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Hens, T., & Bachmann, K. (2008). Behavioural finance for private banking. Chichester, England: John Wiley & Sons.
Lee, I. (2013). Strategy, adoption, and competitive advantage of mobile services in the global economy. Hershey, Pa.: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA).
Liao, Z., & Cheung, M. (2002). Internet-based e-banking and consumer attitudes: an empirical study.Information & Management, 39(4), 283-295. doi:10.1016/s0378-7206(01)00097-0
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Mercier, P., & Papadia, F. (2011). The concrete Euro. Oxford: Oxford University Press.
Powell, G., Groves, S., & Dimos, J. (2011). ROI of Social Media. Hoboken: John Wiley & Sons.