Colorado Technical University

MGM 320: Advertising and Public Relations

Every company has to have an objective for having advertising and public relations campaigns. All objectives are however tied to controlling the manner in which customers perceive the company. This paper will highlight several objectives that the advertising campaign for a bank can have. Banks are in the service industry and the perception of customers is quite important. Along the way, distinct differences between marketing of products and services will be seen.

Growing Customer Numbers

One strategic goal of a bank is to increase sales over time and increasing the level of loyalty of its customers. Increasing the revenues of the bank is achieved through two main ways. First, the company increase the number of customers it has-market share. Once this is done, the banks seeks to increase the number of services that each customer subscribes to. When a customer purchases several products from the bank besides account maintenance, it means that the bank has managed to grow their share in the customer's wallet (Zerfass & Duhring, 2012). Marketing and public relations are primarily supposed to increase revenues for a firm. The marketing messages may draw contrasts between the customer's current banker and what the company is offering. This way, customers may be convinced to change banking service providers in order to enjoy the benefits promised.

Advertising messages may also be aimed at the proportion of people that do not yet have access to banking services. In this case, the company may run a public relations exercise whereby they educate people on the benefits of having banking services (Zerfass & Duhring, 2012). The target population will subscribe to the banks services because the bank has demonstrated care and concern for their financial stability. These customers are likely to stick with the bank for the long haul even when they are in a position to purchase more than one product from the bank. This suggests that there is a need for banks to be patient with their customers because most will only be able to purchase one or two products but their financial strength grows with time.

Promoting a Positive Corporate Image

Financial institutions have a fiduciary duty to safeguard the interests of customers by managing funds deposited with them prudently. These institutions have to gain the trust of customers as a way of safeguarding their market share. The marketing messages sent out to customers therefore have to emphasize on the positive corporate governance efforts the company has in place. For instance, the company could inform external stakeholders on how and when they can access financial records of the company (Zerfass & Duhring, 2012). In case the company has received recognitions or awards for its proper management, it would be advisable to cite them in marketing messages.

A positive image is not only for attracting customers but also for other purposes as well. For instance, the company could be promoting a positive image in order to increase demand for its shares. This can be done to increase the current market price per share or when planning to issues shares for the first time. Current shareholders therefore gain from increased prices and can earn capital gains by disposing their current holdings. A positive image can also help a company attract the best staff available in the market. To achieve this, the company has to sell itself as one that provides employees with a chance to progress career-wise. The positive image may also be used to suppress the level of scrutiny that the industry regulator directs towards the company. Regulators are unlikely to be too strict on a company that has a reputation of prudent (Zerfass & Duhring, 2012) management. Such an image will also attract business partners and customers of a great reputation. For instance, multinationals are only likely to bank with a firm that strives to protect its image.

Informing and Reminding Customers

Banks are continuously improving their services in order to keep up with trends in the industry. For instance, introduction of new products in the industry should be publicized so that the customers become aware of the existence of products. Competitors in the banking industry are always giving customers services that can be easily substituted for each other. This means that it is incumbent upon companies to tell customers what is unique about their products (Zerfass & Duhring, 2012).

Further, companies also carry out advertising and public relations exercises to remind consumers of the existence of their products and the readiness of the company to continue offering value to customers. Reminding customers of the existence of products also helps to protect the market share of a firm. In a saturated market, or when new entrants come into the market, companies have to use all means necessary to protect their revenue (Zerfass & Duhring, 2012).

It is important for firms to inform stakeholders of any campaigns that are meant to improve the society around which the firm operates. For instance, the bank could be involved in a given charity. It is important to inform new customers and remind existing ones about the values the company is passionate about. Features should be done in journals and other publications about the impact of such campaigns on the lives of beneficiaries. This ensures that future generations will learn more about the company and also make future organizational members equally passionate.

Branding and Positioning

Another duty of publicity is to ensure that the company sells itself as a banker of a certain group or classification of customers. Each marketing message has its target audience depending on the information contained therein as well as the channel used to spread it. A bank that targets corporate clients will often approach managers of target companies at high profile events or even visit their offices physically. A particular class of civil servants can be approached through their workers' unions while the rest of the market can be reached through mass media. Companies have to ensure that the method used to advertise has the greatest impact and it is also economical (Tindall & Holtzhausen, 2011).

Companies also use marketing to make themselves as visible as possible to the consumers. This makes it easy to sell new products when a reputation has already been established. Banks that are famous often get free advertising due to frequent mentions on the media and online discussions between people too (Tindall & Holtzhausen, 2011).

Conclusion

There is so much that companies can gain from advertising and publicity campaigns. The objectives always have to be tied to the company's strategic goals because failure to align the two will lead to derailment of the company's long-term interests. For banks, growing the number of customers is important as the company seeks to grow its sales revenue. Further, the increase in the number of customers increases the number of people the banks can sell other products. Other objectives that can be pursued as seen include branding, positioning, and improvement of the overall image of the company.

References:

Tindall, N. T., & Holtzhausen, D. R. (2011). Toward a roles theory for strategic communication: the case of South Africa. International Journal of Strategic Communication, 5(2), 74-94.

Zerfass, A., & Dühring, L. (2012). Between Convergence and Power Struggles. Public Relations Journal, 6(5).