Bank of America (BoA) is one of the world's major financial institutions and holding companies. They have achieved this via a combination of tactical business and marketing decisions which allowed it to expand to repay more than 75% of america people and 44% of the country's high world wide web worth households for a total of 55 million consumer and small business clients. The marketing plan of BoA is highly detailed to accommodate the countless products and services the bank offers the U. S. and international consumer.
Competition within the U. S. bank industry is fierce with lots of large banks in the market place including JP Morgan Chase, Citigroup, Wells Fargo, and HSBC, all offering similar products and services to the U. S. society. Innovation amongst the banking industry is difficult to accomplish and hence uncommon but BoA, through its early on investment in services research and development, is well placed to increasingly develop its market talk about.
The bank's strong syndication network, unmatched by some of its challengers, allows it to carry a solid market position in the U. S. and international market that may let it withstand the existing financial crisis and depressed economic conditions. Its focus in the U. S. means that it's afflicted by the motions in the U. S. market. For example, during the economic crisis the bank sustained heavy loss due to the subprime market coverage which placed a great deal of pressure on margins and eroded the bank's capital.
Its capability to quickly repay its government loans borrowed via the Stressed Assets Pain relief Program (TARP) displays the banks careful and sensible approach to capital management and dividend plan thus further strengthening its solvency position.
Despite having already maximised its market show of U. S. deposits under federal laws, BoA still has lots of growth opportunities available. These include its visa or mastercard and affinity marketing operations, its riches management business through its acquisition of Merrill Lynch and its own mortgage department through the acquisition of Countrywide Financial Firm. These opportunities however will be subject to pending government methods and regulations scheduled to be developed therefore of the recent financial financial crisis.
The bank's main objective is to dominate the American retail bank sector and make an effort to turn into a market leader by obtaining the largest market show through better value for money banking products, better customer services, personalized banking solutions that suit customer needs and high campaign spending. It secondarily designs to expand its brand into international markets and be a "universal" loan company.
BoA has chosen to position itself as an all-American brand, with sponsorships and products including NASCAR and Major Category Baseball. Considering that finance institutions essentially sell the same services and products, differentiation is necessary to gain a competitive gain by providing the buyer market greater value propositions. Advancement amongst the bank industry is difficult to accomplish and uncommon but BoA, through its earlier investment in services research and development, has revolutionised bank by providing innovative products such as the "Keep carefully the Change" plan, full customer support branches and advanced online bank facilities.
The primary product that BoA targets promoting is its brand. By creating brand understanding, the bank is designed to build consumer's assurance and trust and thus focus on their needs as a secondary methodology by offering products and services including:
"The bank allocates $2. 3 billion to its marketing budget, and this amount is expected to increase" (Anne Saunders, Brand and Advertising Exec Oct 2008). Promotional initiatives have been realigned to match customers' concerns about bank.
Implementation is usually by using an twelve-monthly basis which means that prior to the second stage of the task is covered, the funds released for the first period have to be accounted for fully. This helps suppress the misappropriation of funds. The execution of the marketplace plan in phases also allows the investors to screen the improvement of the business at different levels of growth.
BoA employ a "constant measuring process using a dashboard methodology - aligning the critical elements in the marketing blend that seem to be to do the most and maximize difference not limited to our brand, but, specifically, for product sales BoA is deeply steeped in Six Sigma - we have been continuously conducting a measurement process we plan; we test; we use; we analyse; and we refine" (Anne Finucane, Key Marketing Officer, Loan provider of America).
Customer satisfaction and feedback is measured via branch and online questionnaires, responses forms, media studies and brand devotion associated with product and service use. BoA constantly reviews Profits on return (ROI) on each product in conditions of success by customer, section, region and product as well as looking at the best use of media alternatives.
In 2007, BoA introduced a brand positioning and tag line with a completely integrated marketing approach "Bank of America - The Bank of Opportunity". This is the latest campaign in the bank's marketing record. Its ongoing successes, despite the economic booms and busts, can be related to its research methods, creativity, product development, customer segmentation, sales training, and commercial public responsibility.