Contrary to conventional wisdom, banking can be both fair and profitable-in fact, fairness can be a source of competitive advantage. The evidence for this claim comes from a segment of the financial services industry seldom associated with fairness: consumer credit. The reputation of this business-which encompasses credit cards, personal loans, payday advances, and so on-is so questionable that any claims of "fairness" are viewed by customers with extreme scepticism. But TeamBank, a subsidiary of the German Volksbanken Raitteisenbanken banking group, has successfully developed a brand that transforms the fuzzy concept of fairness into a visible and credible set of product characteristics and operating processes. Overhauling its central offering, easyGredit, involved significant organizational change and the strength of mind to reject profitable products and features inconsistent with the company's core value: "We are an honourabie merchant." Product developments included offering a 30-day customer retraction period, making repayment insurance optional rather than mandatory, eliminating the penalty on partial repayments, and even offering a "protection package" that would consider changes in a customer's circumstances, such as illness or loss of a job. TeamBank addressed concerns about the new strategy by providing extensive training to employees and partners and adopted an unusual catalytic device for values-driven innovation-a scale model town symbolizing the brand./ Regarding to the above statement and Answer the following questions 1) Based on the above case scenario, which of the four (4) quadrants in Ansoff's Product/Market Matrix that you opine TeamBank had successfully applied in turning around the bank to a profitable role model and became the number three consumer finance provider in the German market. Briefly comments on the approach taken by JeamBank in riding against the industry norms and bumpy roads to achieve success. 2) Generally, there is a trade-off between Price (cost) to the Value (quality). Nevertheless, TeamBank managed to overcome the price-sensitive consumer finance market by introducing "Fairness" in its pricing strategy to boost its operating profit and yet registering low delinquency rate. Identify and comments the pricing strategy adopted by the bank in its consumer credit. 3) The 8P's of marketing mix for financial services include People and Physical Evidence. How did TeamBank successfully implement these approaches as evidenced in this case-study that is not only amazing but in which may be replicated in the bank your country and provide your justification.

Contrary to conventional wisdom, banking can be both fair and profitable-in fact, fairness can be a source of competitive advantage. The evidence for this claim comes from a segment of the financial services industry seldom associated with fairness: consumer credit. The reputation of this business-which encompasses credit cards, personal loans, payday advances, and so on-is so questionable that any claims of "fairness" are viewed by customers with extreme scepticism. But TeamBank, a subsidiary of the German Volksbanken Raitteisenbanken banking group, has successfully developed a brand that transforms the fuzzy concept of fairness into a visible and credible set of product characteristics and operating processes. Overhauling its central offering, easyGredit, involved significant organizational change and the strength of mind to reject profitable products and features inconsistent with the company's core value: "We are an honourabie merchant." Product developments included offering a 30-day customer retraction period, making repayment insurance optional rather than mandatory, eliminating the penalty on partial repayments, and even offering a "protection package" that would consider changes in a customer's circumstances, such as illness or loss of a job. TeamBank addressed concerns about the new strategy by providing extensive training to employees and partners and adopted an unusual catalytic device for values-driven innovation-a scale model town symbolizing the brand./ Regarding to the above statement and Answer the following questions 1) Based on the above case scenario, which of the four (4) quadrants in Ansoff's Product/Market Matrix that you opine TeamBank had successfully applied in turning around the bank to a profitable role model and became the number three consumer finance provider in the German market. Briefly comments on the approach taken by JeamBank in riding against the industry norms and bumpy roads to achieve success. 2) Generally, there is a trade-off between Price (cost) to the Value (quality). Nevertheless, TeamBank managed to overcome the price-sensitive consumer finance market by introducing "Fairness" in its pricing strategy to boost its operating profit and yet registering low delinquency rate. Identify and comments the pricing strategy adopted by the bank in its consumer credit. 3) The 8P's of marketing mix for financial services include People and Physical Evidence. How did TeamBank successfully implement these approaches as evidenced in this case-study that is not only amazing but in which may be replicated in the bank your country and provide your justification.

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Transcribed Image Text:Contrary to conventional wisdom, banking can be both fair and profitable-in fact, fairness can be a source of competitive advantage. The evidence for this claim comes from a segment of the financial services industry seldom associated with fairness: consumer credit. The reputation of this business-which encompasses credit cards, personal loans, payday advances, and so on-is so questionable that any claims of "fairness" are viewed by customers with extreme scepticism. But TeamBank, a subsidiary of the German Kolkskanken Raitteisenkanken banking group, has successfully developed a brand that transforms the fuzzy concept of fairness into a visible and credible set of product characteristics and operating processes. Overhauling its central offering, easxGredit, involved significant organizational change and the strength of mind to reject profitable products and features inconsistent with the company's core value: "We are an honourable merchant." Product developments included offering a 30-day customer retraction period, making repayment insurance optional rather than mandatory, eliminating the penalty on partial repayments, and even offering a "protection package" that would consider changes in a customer's circumstances, such as illness or loss of a job. LeamBank addressed concerns about the new strategy by providing extensive training to employees and partners and adopted an unusual catalytic device for values-driven innovation-a scale model town symbolizing the brand./ Regarding to the above statement and Answer the following questions 1) Based on the above case scenario, which of the four (4) quadrants in Ansott's. Product/Market Matrix that you opine TeamBank had successfully applied in turning around the bank to a profitable role model and became the number three consumer finance provider in the German market. Briefly comments on the approach taken by JeamBank in riding against the industry norms and bumpy roads to achieve success. 2) Generally, there is a trade-off between Price (cost) to the Value (quality). Nevertheless, TeamBank managed to overcome the price-sensitive consumer finance market by introducing "Fairness" in its pricing strategy to boost its operating profit and yet registering low delinquency rate. Identify and comments the pricing strategy adopted by the bank in its consumer credit. 3) The 8P's of marketing mix for financial services include People and Physical Evidence. How did TeamBank successfully implement these approaches as evidenced in this case-study that is not only amazing but in which may be replicated in the bank your country and provide your justification.

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