Banking and Emerging Multidisciplinary Processes †Free Samples

Question: Discuss about the Banking and Emerging Multidisciplinary Processes. Answer: Introduction Bank Muscat is the provider of financial services in the Oman Sultanate. The company has a strong presence in the section of corporate banking with most of the corporate organizations having accounts in Bank Muscat. The bank also has a presence in retail banking, investment banking, treasury, private banking and management of the asset. The bank is estimated to be worth US $15 billion, the bank has over 130 branches across the country. Bank Muscat was voted the best bank in Oman for seven continuous years by The Banker, FT London. This report analyzes the marketing strategies that the bank uses to market itself to new and existing customers. The products offered by the bank include; money deposit, loans for SME`s offering financial advice services, Card services, Banking channels, Insurance, Payment services, money transfer and remittances(International, 2009). The report contains an environmental analysis to determine the competitive environment and the other internal and external f actors that may affect the operations and the strategies and tactics that the company will use to compete in the market (Ian, 2014). This marketing plan aims at developing marketing strategies and tactics that Bank Muscat will apply in order to retain its market position and to achieve its vision of better customer services. The marketing plan will seek to establish ways in which the bank can improve its relations with customers and also improve its already big market share in the industry. This section involves an analysis of the external environment in which Bank Muscat is operating. The analysis of the external environment is important in designing strategy for the organization since it will help to identify opportunities and threats in the external environment. Opportunities can be utilized to profit the company more. The weaknesses identified can help the company to make decisions that reduce the risk of the business. The environment will be accessed using the PESTEL analysis method. Political environment The political environment in which Bank Muscat is operating is favorable to the organization. The sultanate is peaceful since the political activities in the country are not as violent as those of other middle East environment (Academy of Marketing Science In Crittenden, 2015). The Sultanate also makes policies that favor growth and expansion of banking sector and this has ensured that Bank Muscat is operating in a very stable political environment. The economy of Oman is vibrant and growing at an impressive rate. There are also major in infrastructural projects going on currently in Oman and this contributes hugely to the growth of the economy and the banking sector at large. The interest rates in the country are controlled by free market forces and this ensures that demand and supply determine the cost of credit. One challenge in the economic environment in Oman is that the fluctuations in prices of oil have a major hit on the economy of the company hence making it difficult to predict the future with certainty. The consumption patterns of consumers in the banking sector are affected by social factors. Since Oman is a majority Muslim country, there are a slot of social factors at play. The religion of Islam does according to Sharia law does not allow lending at an interest commonly referred to as riba. The products and services offered by Bank Muscat, therefore, has to consider the religion factor in order to accommodate most of its customers. Some of the technological factors affecting the banking industry not only in Oman but also globally include the mobile phone banking, mobile phone money transfer and online customer services as well as electronic banking (Molyneux, Lloyd-Williams Thornton,2015). These factors have a huge impact on banking because they contribute to efficiency as well as increased customer satisfaction. Environmental factors The Bank of Muscat is committed to ensuring environmental sustainability in all its operations and activities. The bank obeys and fulfills all the environmental regulations that are put in place by the Sultanate. The banking industry in Oman is regulated by the central bank. The players in this industry are required to adhere to all the legislation regarding lending, money deposits, money laundering laws and all other laws that are meant to prevent financial crime in the banking sector. The following is a SWOT analysis of Bank Muscat. The SWOT analysis is used to make investment decisions and to strengthen the company further in other aspects. Bank Muscat is the largest financial institution with large presence in all the areas of the country. The bank has a customer base exceeding 1.79 million customers and more than 3,500 employees. This means that has an advantage due to its strong network and its huge scope of operation Bank Muscat also enjoys the strong financial position. The bank maintains a capital adequacy ratio of about 16% for the last 4-5 years which is very healthy. The company has net profit ratios of 16.5% and its still growing(Rama, 2017). This has given the bank a competitive advantage over its rivals. Another strength is that the bank has implemented successfully Islamic banking policies which have helped the bank to enjoy huge client base. Investment in technology by the company has been borne fruits and the bank has been able to achieve its efficiency goals and objectives. The bank raises very little revenue from fees they charge for services such as credit services, asset management, private banking, and investment banking. This has contributed to declining organizations revenue levels. Oman strategy of building a diversified economy through vision 2010 provides the bank with a great opportunity to lend to corporate organizations especially those winning big government contracts and tenders. Another opportunity for Bank Muscat is that the demographic factors of the country favor further growth in the retail banking sector. Statistics indicate that about half of the countries` population is composed of persons below the age of 25. the youth are more vibrant than the old people and therefore the bank can benefit a lot by focusing on these customers and fulfilling their financial needs(Bank al-Markazi.2010) Fluctuations in prices of oil which is the major source of income for the country makes the economy venerable and this factor affects the banking sector a lot hence making it planning difficult. Another threat of Bank Muscat is the political turmoil in the neighboring countries like Syria, Yemen, and Lebanon. These conflicts have spillover effects which end up affecting the banking sector of Oman. Bank Muscat market segmentation The company segments its market using various techniques. The main technique is based on demographic factors. Demographic factors include factors like age, gender, population and education levels. The bank segments its market depending on the age of customers. The bank that designs products which are aimed at attracting the youth and products designed for the older generation. This helps the company to carry out target marketing efficiently. The bank also segments its marketing depending on income levels of consumers. Consumers of higher income are offered products that are tailor made to suit their specific needs. Another important factor in market segmentation by the bank is population (Academy of Marketing Science In Bahn, 2015). In this, geographical segmentation is carried out depending on the population of the areas in which the bank is operating. The bank offers priority to densely populated areas which have more complex customer needs. The objective of this marketing plan is to increase the market share of Bank Muscat by 6% by the end of the next financial year. This objective is based on the opportunities of growth especially by targeting the youth. Another objective of this marketing plan is to improve the customer satisfaction by focusing on service provision and more personalized banking. The positive customer feedback messages should increase by 4% so as to measure the extent to which the customer satisfaction objective has been achieved. Designing of more products specially tailored to cater for the needs of customers through technological advancement. The bank should develop at least three products in the next two years which are focused on fulfilling customer needs. By the fourth year, the bank should have come up with at least 7 products that help to promote effective interaction between the bank and its customers. Marketing mix strategy recommendations The marketing mix of Bank Muscat should be designed in such a way that all the aspects are able to work harmoniously to achieve the objectives of the organization. The following is the recommended marketing mix of Bank Muscat. The products that Bank Muscat currently offers its consumers include accounts and deposits, loans and mortgages, insurance, card services and priority banking. In the new products strategy to help cater for the needs of consumers, the bank should introduce products and services that are more consumer oriented and unique. Such products include mobile money transfer, mobile banking, and customer self-service portal and localized banking where shops and small groceries act as agents of the bank. The introduction of these products and services will increase the product portfolio of the bank and hence providing more value to consumers. These products will also contribute to increased efficiency within the organization as well as offer consumers convenience. Bank Muscat distributes its products and services mainly through its branches. The bank has over 130 branches distributed in all areas across the country. This ensures that services reach all potential customers conveniently. There are shortcomings in the current distribution strategy of the company. The following strategies should be implemented in order to improve the distribution system of the bank. The first strategy is opening up more branches especially in the rural areas so as to increase customer satisfaction and needs since customers in the areas will no longer have to travel for long distances to access banking services. Another strategy is opening local banking agents which will ensure that a customer can carry out transactions in a shop next door (Sarlak Hastiani,2017). The use of mobile technology in banking will also go a long way in improving the distribution system of Bank Muscat. The price of Bank Muscat`s products and services is currently fair and very competitive. The prices charged by the bank especially as services fee are the lowest in the region. This aspect of marketing has been important in attracting customers. The bank can achieve increased revenues and consumer satisfaction through price by setting prices that are lower compared to competitors. Lower cost will be achieved through increased efficiency in the organization. Care should be taken to make sure that quality is not compromised as a result of low prices. Promotion is a very crucial aspect of marketing. For Bank Muscat to achieve its marketing objectives as stated above, it has to improve its promotion and advertising. The first strategy that the company should adopt is increase the use of social media advertising. This will be very effective for the company since the population of the Sultanate is mainly composed of young people who constitute the majority of social media users. This will ensure that the bank reaches as many customers as possible through this method. The bank should also invest more in mainstream media advertising such as TV ads and newspaper advertisement (Krishnamacharyulu Ramakrishnan, 2012). This strategy will contribute to increased customer satisfaction since the customers will be able to get timely updates and communication on new products and services. Evaluation and control To monitor the implementation of the marketing plan, the bank will appoint an implementation and monitoring committee which will keep track of the progress in the marketing plan. The committee will monitor to determine factors that may be hindering the achievement of objectives stated in the marketing plan. They will work closely with the management of the Bank. Item Estimated budget US$ Social media marketing 12,000 Administration of social media and online accounts 7,500 Product development and research 34,900 Advertising budget 23,450 Customer call center 17,600 TOTAL 95, 450 Conclusion To achieve the objective of increased customer value and satisfaction, Bank Muscat should implement the marketing plan to the letter. The recommendations stated in the plan should be implemented .The monitoring of the marketing plan will be important to ensure that the bank does not veer off the path of achieving the predetermined objectives. The report contains an environmental analysis to determine the factors that influence strategies in the banking industry in Oman. The analysis is done using both SWOT analysis and PESTEL analysis. The report clearly highlights and discusses the strategies that Bank Muscat will implement in order to achieve its strategies. These strategies include increased use of social media and technological innovations in the company. References Academy of Marketing Science., In Crittenden, V. L. (2015). Proceedings of the 1992 Academy of Marketing Science (AMS) Annual Conference. Academy of Marketing Science., In Bahn, K. D. (2015). Proceedings of the 1988 Academy of Marketing Science (AMS) Annual Conference, Montreal, Canada, April 27-May 1, 1988. Ian, S. 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