HARAMAYAUNI

VERSI
TY

COLLEGEOFBUSI
NESSANDECONOMI
CS
DEPARTMENTOFACCOUNTI
NG ANDFI
NANCE
I
ndi
vi
dualAssi
gnmentf
orPr
inci
plesmar
ket
ing

NAME:MUAZ MOHAMMED ABRAHIM

Name Sar
tuAbdur
ehmanAbr
ahi
m
I
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14

Submi
tt
edt
oRemedanY

1
 Answer
soft
heassi
gnment
[Link]
eamar
ket
[Link]
out
oredesi
gn
t
hei
rsegment
ati
onst
rat
egy
.So,
youwi
l
lappl
ythet
heor
yyouhav
elear
nedon
Segment
ati
on,
Tar
get
ingandPosi
ti
oni
ngusi
ngr
elev
antexampl
eswher
enecessar
y.
Thenhowt
osegmentt
heMar
ket
,Tar
get
ingt
heMar
ketandMar
ketPosi
ti
oni
ng.
Pr
ovi
deanadv
ant
agef
orusi
ngsegment
ati
on,
tar
get
ing,
andposi
ti
oni
ngi
ndev
elopi
ng
mar
ket
ingst
rat
egi
es.
Sur
e,her
eisanov
erv
iewofsegment
ati
on,
tar
get
ing,
andposi
ti
oni
ng(
STP)i
nmar
ket
ing,
al
ongwi
thexampl
esandadv
ant
ages:
Segment
ati
on
 Mar
ketsegment
ati
oni
nvol
vesdi
vi
dingal
argeanddi
ver
semar
keti
ntosmal
l
er,
mor
ehomogeneousgr
oupsofcust
omer
sbasedonshar
edchar
act
eri
sti
cs,
such
asdemogr
aphi
cs,
psy
chogr
aphi
cs,
behav
ior
alpat
ter
ns,
[Link]
spr
ocess
al
l
owscompani
est
otai
l
ort
hei
rmar
ket
ingef
for
tst
ospeci
fi
ccust
omersegment
s,
i
ncr
easi
ngt
heef
fect
ivenessandef
fi
ciencyoft
hei
rcampai
gns.
Exampl
e:
Aspor
tswearcompanymi
ghtsegmenti
tsmar
ketbasedonage,
act
ivi
tyl
evel
,or
spor
tspr
efer
[Link]
nst
ance,
theycoul
dcr
eat
esegment
sfory
oungat
hlet
es,
casual
fit
nessent
husi
ast
s,orr
unner
s.
 Tar
get
ing
Af
tersegment
ingt
hemar
ket
,compani
esi
dent
if
ythemostat
tr
act
iveand
pr
ofi
tabl
esegment
stof
ocust
hei
rmar
ket
ingef
for
[Link]
spr
ocessi
scal
l
ed
t
arget
[Link]
esconsi
derf
act
orssuchassegmentsi
ze,
growt
hpot
ent
ial
,
andaccessi
bil
i
tywhensel
ect
ingt
argetsegment
s.
Exampl
e:
Thespor
tswearcompanymi
ghtdeci
det
otar
gety
oungat
hlet
esast
hei
rpr
imar
y
segmentduet
othei
rgr
owi
ngi
nter
esti
nspor
tsandt
hei
rwi
l
li
ngnesst
ospendon
hi
gh-
per
for
manceappar
el.
 Posi
ti
oni
ng
Posi
ti
oni
ngi
nvol
vescr
eat
ingauni
queanddi
sti
nct
ivei
mageori
dent
it
yfora

2
 pr
oductorser
vicei
nthemi
ndsofconsumer
[Link]
simageshoul
dcl
ear
ly
communi
cat
ethepr
oduct
'
sbenef
it
sanddi
ff
erent
iat
eitf
rom compet
it
ors.
Exampl
e:
Thespor
tswearcompanymi
ghtposi
ti
ont
hei
rpr
oduct
sas"
theul
ti
mat
egearf
or
y
oungat
hlet
eswhost
ri
vef
orpeakper
for
manceandst
yle.
"Thi
sposi
ti
oni
ng
st
atementconv
eyst
hepr
oduct
'
sbenef
it
sandappeal
stot
het
argetsegment
's
aspi
rat
ions.
Adv
ant
agesofSTP
 Usi
ngSTPhassev
eral
adv
ant
agesf
ordev
elopi
ngmar
ket
ingst
rat
egi
es:
 I
ncr
easedMar
ket
ingEf
fect
iveness:
Tai
l
oredmessagi
ngandcampai
gnsr
esonat
e
bet
terwi
thspeci
fi
csegment
s,l
eadi
ngt
ohi
gherconv
ersi
onr
atesandst
ronger
cust
omerengagement
.
 Resour
ceOpt
imi
zat
ion:
Byf
ocusi
ngont
hemostpr
ofi
tabl
esegment
s,compani
es
canal
l
ocat
ethei
rmar
ket
ingr
esour
cesmor
eef
fect
ivel
y,maxi
mizi
ngt
hei
rret
urn
oni
nvest
ment(
ROI
).
 Compet
it
iveDi
ff
erent
iat
ion:
Clearposi
ti
oni
nghel
pscompani
esst
andoutf
rom
compet
it
orsandat
tractcust
omer
swi
thi
nthei
rtar
getsegment
s.
 I
mpr
ovedCust
omerUnder
standi
ng:
STPpr
ovi
desadeeperunder
standi
ngof
cust
omerneedsandpr
efer
ences,
enabl
i
ngcompani
est
odev
eloppr
oduct
sand
ser
vicest
hatbet
termeett
hoseneeds.
Exampl
e:
Byappl
yi
ngSTP,
thespor
tswearcompanycancr
eat
etar
get
edmar
ket
ingcampai
gns
t
hatshowcaset
hei
rpr
oduct
s'per
for
manceandst
ylebenef
it
s,r
esonat
ingwi
tht
he
aspi
rat
ionsofy
oungat
hlet
[Link]
sappr
oachi
sli
kel
ytogener
atemor
eint
erestand
sal
escompar
edt
oagener
icmar
ket
ingst
rat
egyai
medatabr
oadaudi
ence.
[Link]
ket
ingMi
x
 Whati
stheMar
ket
ingMi
x?
 The7PsofMar
ket
ingMi
x
 Whyi
sthemar
ket
ingcal
lCont
rol
l
abl
e?
 Anal
ysi
soft
hemar
ket
ingmi
xofCocaCol
afact
ory
?Whati
stheMar
ket
ingMi
x?

3
Themar
ket
ingmi
xisasetofcont
rol
l
abl
evar
iabl
est
hatacompanycanuset
oinf
luence
t
hecust
omer
'sper
cept
ionofi
tspr
oductorser
vice.I
tisast
rat
egi
ctool
thathel
ps
compani
escr
eat
eauni
quesel
l
ingpr
oposi
ti
on(
USP)andposi
ti
ont
hei
rpr
oduct
sor
ser
vicesi
nthemar
ket
.
Thet
erm"
mar
ket
ingmi
x"wasf
ir
stcoi
nedbyNei
lBor
deni
[Link]
dent
if
ied12
el
ement
sthathebel
i
evedwer
eessent
ial
forasuccessf
ulmar
ket
ingst
rat
egy
.These
el
ement
swer
elat
ercondensedi
ntot
hemor
ecommonl
yused"
4Ps"ofmar
ket
ing:
[Link]
oduct
:Thi
sref
erst
othephy
sical
productorser
vicei
tsel
f,i
ncl
udi
ngi
tsf
eat
ures,
f
unct
ions,
andbenef
it
s.
[Link]
ice:
Thi
sist
heamountofmoneyt
hatcust
omer
sar
ewi
l
li
ngt
opayf
ort
he
pr
oductorsr
vice.
[Link]
ace:
Thi
sref
erst
ohowandwher
ethepr
oductorser
vicei
smadeav
ail
abl
eto
cust
omer
s.
[Link]
omot
ion:
Thi
sincl
udesal
loft
hecommuni
cat
ionact
ivi
ti
est
hatacompany
usest
oinf
orm andper
suadecust
omer
stopur
chasei
tspr
oductorser
vice.
I
n1981,
[Link]
omeMcCar
thyaddedt
hreemor
ePst
othemar
ket
ingmi
x:
[Link]
e:Thi
sref
erst
otheempl
oyeeswhoi
nter
actwi
thcust
omer
sanddel
i
vert
he
pr
oductorser
vice.
[Link]
ocess:
Thi
sref
erst
othepr
ocedur
esandsy
stemst
hatar
eusedt
odel
i
vert
he
pr
oductorser
vice.
[Link]
sical
Evi
dence:
Thi
sisanyt
angi
bleev
idenceoft
hepr
oductorser
vice,
such
aspackagi
ng,
signage,
orawebsi
te.
Whyi
stheMar
ket
ingMi
xCont
rol
l
abl
e?
 Themar
ket
ingmi
xiscont
rol
l
abl
ebecauset
hecompanyhast
hepowert
omake
deci
sionsabouteachoft
[Link]
sgi
vescompani
esagr
eatdeal
off
lexi
bil
i
ty
i
nshapi
ngt
hei
rmar
ket
ingst
rat
egi
es.
 Anal
ysi
soft
heMar
ket
ingMi
xofCoca-
Col
a
 Coca-
Col
aisagl
obal
bev
eragecompanyt
hati
sknownf
ori
tsi
coni
credand
whi
tel
[Link]
rongbr
andi
mageandi
soneoft
hemost
v
aluabl
ebr
andsi
nthewor
ld.
 Pr
oduct

4
 Coca-
Col
aof
fer
sawi
dev
ari
etyofpr
oduct
s,i
ncl
udi
ngi
tsf
lagshi
pCoca-
Col
a
Cl
assi
c,aswel
lasot
herpopul
arbr
andssuchasSpr
it
e,Fant
a,andMi
nut
eMai
d.
Thecompanyi
sconst
ant
lyi
nnov
ati
ngandi
ntr
oduci
ngnewpr
oduct
stomeett
he
changi
ngneedsandpr
efer
encesofi
tscust
omer
s.
 Pr
ice
 Coca-
Col
ausesav
ari
etyofpr
ici
ngst
rat
egi
es,
incl
udi
ngv
alue-
basedpr
ici
ng,
compet
it
ivepr
ici
ng,
andpr
omot
ional
pri
[Link]
eful
l
yconsi
der
s
t
hecostofpr
oduct
ion,
thepr
iceofcompet
it
ors'
product
s,andt
het
argetmar
ket
's
wi
l
li
ngnesst
opaywhenset
ti
ngpr
ices.
 Pl
ace
 Coca-
Col
apr
oduct
sar
eav
ail
abl
einal
mostev
erycount
ryi
nthewor
[Link]
companyhasav
astdi
str
ibut
ionnet
wor
kthati
ncl
udesgr
ocer
yst
ores,
conv
eni
encest
ores,
rest
aur
ant
s,andv
endi
ngmachi
[Link]-
Col
aal
sousese-
commer
cet
oreachcust
omer
sinr
emot
ear
eas.
 Pr
omot
ion
 Coca-
Col
aisoneoft
hemostheav
il
yadv
ert
isedcompani
esi
nthewor
[Link]
companyusesav
ari
etyofmedi
achannel
stor
eachi
tst
argetaudi
ence,
incl
udi
ng
t
elev
isi
on,
radi
o,pr
int
,andonl
i
neadv
ert
isi
[Link]-
Col
aal
sousessponsor
shi
ps,
publ
i
crel
ati
ons,
andsoci
almedi
atogener
atebuzzandexci
tementf
ori
ts
pr
oduct
s.
 Peopl
e
 Coca-
Col
ahasagl
obal
wor
kfor
ceofov
er700,
000empl
[Link]
s
commi
tt
edt
opr
ovi
dingi
tsempl
oyeeswi
tht
rai
ninganddev
elopment
oppor
tuni
ti
est
ohel
pthem del
i
verexcept
ional
cust
omerser
vice.
 Pr
ocess
 Coca-
Col
ahasasophi
sti
cat
edsuppl
ychai
nthatenabl
esi
ttopr
oduceand
di
str
ibut
eit
spr
oduct
sef
fi
cient
[Link]
sconst
ant
lyi
nvest
ingi
nnew
t
echnol
ogi
esandpr
ocessest
oimpr
ovei
tsoper
ati
ons.
 Phy
sical
Evi
dence
 Coca-
Col
a'
siconi
credandwhi
tel
ogoi
soneoft
hemostr
ecogni
zabl
esy
mbol
sin

5
 t
hewor
[Link]
sousesi
tspackagi
ngandadv
ert
isi
ngt
ocr
eat
ea
st
rongphy
sical
presencef
ori
tspr
oduct
s.

 Byef
fect
ivel
ymanagi
ngt
he7Psofmar
ket
ing,
Coca-
Col
ahasbeenabl
eto
achi
evegl
obal
successandmai
ntai
nit
sposi
ti
onasoneoft
hewor
ld'
sleadi
ng
bev
eragecompani
es.
[Link]
ermi
neanadv
ant
agef
orusi
ngapr
oductl
i
fecy
clemode.
Ther
ear
esev
eral
adv
ant
agest
ousi
ngapr
oductl
i
fecy
clemodel
.Her
ear
esomeoft
hemosti
mpor
tant
:
 I
mpr
oveddeci
si
on-
maki
ng:
Under
standi
ngt
hepr
oductl
i
fecy
clecanhel
p
busi
nessesmakebet
terdeci
sionsaboutr
esour
ceal
l
ocat
ion,
mar
ket
ing
st
rat
egi
es,
andpr
oductdev
elopment
.Forexampl
e,acompanymi
ghtdeci
det
o
i
nvestmor
eheav
il
yinmar
ket
ingf
orapr
oducti
nthegr
owt
hst
age,
whi
l
eitmi
ght
f
ocusoncostr
educt
ionf
orapr
oducti
nthedecl
i
nest
age.
 I
ncr
easedpr
ofi
tabi
l
ity
:Byt
ail
ori
ngmar
ket
ingandsal
esst
rat
egi
est
oeachst
age
oft
hepr
oductl
i
fecy
cle,
busi
nessescani
ncr
easet
hei
rpr
ofi
tabi
l
ity
.Fori
nst
ance,
acompanymi
ghtchar
gehi
gherpr
icesf
orapr
oducti
nthei
ntr
oduct
ionst
age,
whendemandi
shi
ghandcompet
it
ioni
slow.
 Enhancedcust
omersat
isf
act
ion:
Under
standi
ngt
heneedsandexpect
ati
onsof
cust
omer
satdi
ff
erentst
agesoft
hepr
oductl
i
fecy
clecanhel
pbusi
nesses
dev
eloppr
oduct
sandser
vicest
hatmeett
[Link]
scanl
eadt
oincr
eased
cust
omersat
isf
act
ionandl
oyal
ty.
 I
mpr
ovedpr
oductdev
elopment
:Byt
racki
ngt
heper
for
manceofpr
oduct
sov
er
t
ime,
busi
nessescani
dent
if
ytr
endsandmakeadj
ust
ment
stot
hei
rpr
oduct
dev
elopmentpr
[Link]
scanhel
pthem cr
eat
epr
oduct
sthatar
emor
eli
kel
y
t
obesuccessf
uli
nthemar
ket
place.
 Ext
endedpr
oductl
i
fespan:
Byunder
standi
ngt
hef
act
orst
hatcont
ri
but
etoa
pr
oduct
'sdecl
i
ne,
busi
nessescant
akest
epst
oext
endi
tsl
i
[Link]
scan
i
nvol
vei
ntr
oduci
ngnewf
eat
ures,
expandi
ngi
ntonewmar
ket
s,orr
efr
eshi
ngt
he
pr
oduct
'sbr
andi
ng.
 Ov
eral
l
,usi
ngapr
oductl
i
fecy
clemodel
canhel
pbusi
nessesmakebet
ter
deci
sionsaboutt
hei
rpr
oduct
s,l
eadi
ngt
oincr
easedpr
ofi
tabi
l
ity
,cust
omer

6
 sat
isf
act
ion,
andpr
oductsuccess.
4.I
dent
if
ykeyaspect
sofaf
fect
iveConsumerbuy
ingandBusi
nessbuy
ing
behav
ior
?Af
fect
iveConsumerBuy
ingBehav
ior
 Af
fect
iveconsumerbuy
ingbehav
iori
sdr
ivenbyemot
ionsandf
eel
i
ngsr
ather
t
hanr
ati
onal
thought
.Consumer
smakei
mpul
siv
edeci
sionsbasedont
hei
r
emot
ional
responsest
opr
oduct
s,ser
vices,
ormar
ket
ingmessages.
 Keyaspect
sofaf
fect
iveconsumerbuy
ingbehav
iori
ncl
ude:
 Emot
ional
needsanddesi
res:
Consumer
sof
tenpur
chasepr
oduct
stosat
isf
y
t
hei
remot
ional
needs,
suchasf
eel
i
nghappy
,conf
ident
,orl
oved.
 Moodandf
eel
i
ngs:
Consumer
sar
emor
eli
kel
ytomakei
mpul
sepur
chaseswhen
t
heyar
einaposi
ti
vemoodorf
eel
i
nggood.
 Sensor
yexper
iences:
Consumer
sar
einf
luencedbyt
hesensor
yexper
iencest
hey
hav
ewi
thpr
oduct
s,suchast
hesmel
l
,tast
e,t
ouch,
sight
,andsound.
 Emot
ional
appeal
s:Mar
ket
ingmessagest
hatappeal
toemot
ions,
suchasf
ear
,
j
oy,
orl
ove,
aremor
eli
kel
ytor
esonat
ewi
thaf
fect
iveconsumer
s.
Busi
nessBuy
ingBehav
ior
 Busi
nessbuy
ingbehav
iori
samor
erat
ional
anddel
i
ber
atepr
ocesst
han
consumerbuy
ingbehav
ior
.Busi
nessest
ypi
cal
l
yhav
eaf
ormal
procur
ement
pr
ocessi
npl
acet
hati
nvol
vesmul
ti
pledeci
sion-
maker
s.
Keyaspect
sofbusi
nessbuy
ingbehav
iori
ncl
ude:
 Or
gani
zat
ional
goal
s:Busi
nessesmakepur
chasi
ngdeci
sionst
hatal
i
gnwi
tht
hei
r
ov
eral
lor
gani
zat
ional
goal
s.
 Funct
ional
needs:
Busi
nessespur
chasepr
oduct
sandser
vicest
omeett
hei
r
f
unct
ional
needs,
suchasi
mpr
ovi
ngef
fi
ciency
,reduci
ngcost
s,orenhanci
ng
pr
oduct
ivi
ty.
 Rat
ional
deci
si
on-
maki
ng:
Busi
nessbuy
erst
ypi
cal
l
yusear
ati
onal
deci
sion-
maki
ngpr
ocesst
hati
nvol
vesev
aluat
ingf
act
orssuchaspr
ice,
qual
i
ty,
and
f
eat
ures.
 Ext
ernal
inf
luences:
Busi
nessbuy
ingbehav
iorcanbei
nfl
uencedbyext
ernal
f
act
ors,
suchaseconomi
ccondi
ti
ons,
technol
ogi
cal
adv
ancement
s,and
compet
it
orof
fer
ings.

7
KeyDi
ff
erencesBet
weenAf
fect
iveandBusi
nessBuy
ingBehav
ior
 Aspect Af
fect
iveConsumerBuy
ingBehav
ior Busi
nessBuy
ingBehav
ior
 Pr
imar
ydr
iver Emot
ionsandf
eel
i
ngs Rat
ional
thought
 Deci
sion-
maki
ngpr
ocess I
mpul
siv
eandemot
ional Del
i
ber
ateandr
ati
onal
 Numberofdeci
si
on-
maker
s I
ndi
vi
dual Mul
ti
plest
akehol
der
s
 I
nfl
uenceofext
ernal
fact
ors Li
mit
ed Si
gni
fi
cant
 FocusEmot
ional
sat
isf
act
ion Funct
ional
needsandor
gani
zat
ional
goal
s
 Under
standi
ngt
hekeyaspect
sofaf
fect
iveconsumerbuy
ingbehav
iorand
busi
nessbuy
ingbehav
iori
sessent
ial
forbusi
nessest
odev
elopef
fect
ive
mar
ket
ingandsal
esst
rat
egi
[Link]
ail
ori
ngt
hei
rmessagi
ngandappr
oachest
o
eacht
ypeofbuy
er,
busi
nessescani
ncr
easet
hei
rchancesofsuccessi
nthe
mar
ket
place.
[Link]
it
ical
l
yanal
yze andev
aluat
e consumerand cust
omermanagementpr
act
ices
adopt
ed by t
he company and how consumer
s r
eact t
o i
ndi
vi
dual
i
zed
consumeror
gani
zat
ioni
nter
act
ion?
ConsumerandCust
omerManagementPr
act
ices
I
ntoday
'scompet
it
ivebusi
nessl
andscape,
compani
esar
eincr
easi
ngl
yemphasi
zi
ngt
he
i
mpor
tance ofef
fect
ive consumerand cust
omermanagementpr
act
[Link]
pr
act
ices encompass t
he st
rat
egi
es,t
echnol
ogi
es,and pr
ocesses empl
oyed by
busi
nessest
oacqui
re,r
etai
n,andgr
ow t
hei
rcust
[Link]
fect
ivel
ymanagi
ng
t
hei
rcust
omerr
elat
ionshi
ps,
compani
escanachi
evear
angeofbenef
it
s,i
ncl
udi
ng:
 I
ncr
easedcust
omersat
isf
act
ionandl
oyal
ty
 Enhancedbr
andr
eput
ati
on
 I
mpr
ovedcust
omerl
i
fet
imev
alue
 Reducedcust
omerchur
n
 I
ncr
easedsal
esandr
evenue
 I
ndi
vi
dual
i
zedConsumer
-Or
gani
zat
ionI
nter
act
ion
 I
ndi
vi
dual
i
zedconsumer
-or
gani
zat
ioni
nter
act
ion(
ICOI
)ref
erst
othet
ail
ori
ngof
mar
ket
ingcommuni
cat
ions,pr
oduct
s,andser
vicest
othespeci
fi
cneedsand
pr
efer
encesofi
ndi
vi
dualconsumer
[Link]
sappr
oachi
sbecomi
ngi
ncr
easi
ngl
y
pr
eval
entascompani
esl
ever
agedat
aanal
yti
csandar
ti
fi
ciali
ntel
l
igencet
ogai
n
deeperi
nsi
ght
sint
othei
rcust
omerbase.

8
  Benef
it
sofI
COI
 I
COIcanof
fersev
eral
benef
it
stobot
hconsumer
sandor
gani
zat
ions:
 ForConsumer
s:Per
sonal
i
zedexper
iencest
hatar
emor
erel
evantandengagi
ng
 ForOr
gani
zat
ions:I
mpr
ovedt
arget
ingofmar
ket
ingef
for
ts,i
ncr
easedcust
omer
engagement
,andenhancedcust
omersat
isf
act
ion
 Chal
l
engesofI
COI
 Despi
tei
tspot
ent
ial
benef
it
s,I
COIal
sopr
esent
ssomechal
l
enges:
 Pr
ivacyConcer
ns:Thecol
l
ect
ionanduseofper
sonaldat
arai
sesconcer
nsabout
pr
ivacyanddat
apr
otect
ion
 Dat
aOv
erl
oad:Thesheerv
olumeofdat
acanmakei
tdi
ff
icul
ttoanal
yzeand
ef
fect
ivel
yut
il
ize
 *
*Techni
calCompl
exi
ty:
**I
mpl
ement
ing I
COIst
rat
egi
es can be t
echni
cal
l
y
compl
exandr
equi
resi
gni
fi
canti
nvest
ment
 ConsumerReact
ionst
oICOI
 Consumerr
eact
ions t
oICOIv
ary dependi
ng on t
he per
cei
ved v
alue and
ef
fect
ivenessoft
heper
sonal
i
zat
[Link]
l
,ICOIcanbeper
cei
vedasa
posi
ti
veandv
aluabl
eexper
ience,
leadi
ngt
oincr
easedcust
omersat
isf
act
ionand
l
oyal
[Link]
er,i
fICOIi
sper
cei
vedasi
ntr
usi
ve,i
rr
elev
ant
,ormani
pul
ati
ve,i
t
canbackf
ir
eanddamagecust
omerr
elat
ionshi
ps.
Cr
it
ical
Anal
ysi
sandEv
aluat
ion
Theef
fect
ivenessofconsumerandcust
omermanagementpr
act
ices,i
ncl
udi
ngI
COI
,
dependsonsev
eral
fact
ors:
 Cl
ari
ty ofObj
ect
ives:Compani
es mustcl
ear
ly def
ine t
hei
robj
ect
ives f
or
consumerandcust
omermanagementi
nit
iat
ives
 Dat
a Qual
i
ty and Anal
ysi
s:Ef
fect
iveI
COIr
equi
res hi
gh-
qual
i
ty dat
a and
sophi
sti
cat
edanal
yti
cscapabi
l
iti
es
 Tr
anspar
encyand Et
hics:Compani
es mustbe t
ranspar
entaboutt
hei
rdat
a
col
l
ect
ionpr
act
icesandadher
etoet
hical
pri
nci
ples
 Cont
inuous I
mpr
ovement
:Consumerand cust
omermanagementpr
act
ices
shoul
dbecont
inuousl
yev
aluat
edandr
efi
ned
Recommendat
ions

9
  Tosuccessf
ull
yimpl
ementconsumerandcust
omermanagementpr
act
icesand
ef
fect
ivel
y engage i
n I
COI
, compani
es shoul
d consi
der t
he f
oll
owi
ng
r
ecommendat
ions:
 Est
abl
i
shacust
omer
-cent
ri
ccul
tur
ewi
thi
ntheor
gani
zat
ion
 I
nvesti
ndat
aanal
yti
csandar
ti
fi
cial
int
ell
i
gencecapabi
l
iti
es
 I
mpl
ementr
obustdat
apr
ivacyandsecur
it
ymeasur
es
 UseI
COIt
opr
ovi
dev
alueandenhancecust
omerexper
iences
 Cont
inuousl
ymoni
torandev
aluat
eICOIef
fect
iveness
 Byadopt
ingadat
a-dr
iven,
cust
omer
-cent
ri
cappr
oacht
oconsumerandcust
omer
management
,compani
es can r
eap t
he benef
it
s of i
mpr
oved cust
omer
r
elat
ionshi
ps,i
ncr
easedsal
es,andenhancedbr
andr
eput
ati
[Link]
er,i
tis
cr
uci
alt
ost
ri
keabal
ancebet
weenper
sonal
i
zat
ionandpr
ivacy
,ensur
ingt
hat
I
COIi
susedet
hical
l
yandr
esponsi
blyt
ofost
ert
rustandendur
ingcust
omer
l
oyal
ty.
[Link]
scusspot
ent
ial
trendsi
nbuy
erbehav
iori
nthebanki
ndust
ryov
ert
henextt
eny
ear
s.
I
dent
if
ycompani
esi
nthi
ssect
orwhi
char
eofr
espondi
ngwel
ltot
het
rends,andmake
r
ecommendat
ionshow banki
ndust
rycanupdat
ethewayi
tengageswi
thcur
rentand
pot
ent
ial
cust
omer
s?Sur
e,her
eisadi
scussi
onofpot
ent
ialt
rendsi
nbuy
erbehav
iori
n
t
hebanki
ndust
ryov
ert
henextt
eny
ear
s,al
ongwi
thcompani
est
hatar
erespondi
ng
wel
ltot
heset
rendsandr
ecommendat
ionsf
orhow t
hebanki
ndust
rycanupdat
ethe
wayi
tengageswi
thcur
rentandpot
ent
ial
cust
omer
s:
o Pot
ent
ial
Trendsi
nBuy
erBehav
ior
o Thebanki
ngi
ndust
ryi
sunder
goi
ngaper
iodofsi
gni
fi
cantt
ransf
ormat
ion,dr
iven
by t
echnol
ogi
cal change, demogr
aphi
c shi
ft
s, and ev
olv
ing cust
omer
expect
ati
[Link]
emai
ncompet
it
ivei
nthi
sdy
nami
clandscape,banksmust
adaptt
hei
rst
rat
egi
est
omeett
hechangi
ngneedsoft
hei
rcust
omer
s.
o Her
ear
esomeoft
hekeyt
rendst
hatar
eexpect
edt
oshapebuy
erbehav
iori
nthe
banki
ngi
ndust
ryov
ert
henextt
eny
ear
s:
o I
ncr
easeddemandf
ordi
git
albanki
ng:Cust
omer
sar
eincr
easi
ngl
ydemandi
ng
conv
eni
entandaccessi
bledi
git
albanki
ngsol
uti
[Link]
sincl
udest
heabi
l
ityt
o
bankany
time,
any
wher
e,f
rom anydev
ice.

10
o Ri
seofmobi
l
ebanki
ng:Mobi
l
ebanki
ngi
sbecomi
ngi
ncr
easi
ngl
ypopul
ar,as
cust
omer
sincr
easi
ngl
yuset
hei
rsmar
tphonesandt
abl
etst
oaccessf
inanci
al
ser
vices.
o Gr
owi
ngi
nter
esti
nper
sonal
i
zedbanki
ng:Cust
omer
sar
eexpect
ingbankst
o
pr
ovi
deper
sonal
i
zedexper
iencest
hatar
etai
l
oredt
othei
rindi
vi
dualneedsand
pr
efer
ences.
o Demandf
orf
inanci
alwel
l
ness:Cust
omer
sar
eincr
easi
ngl
yint
erest
edi
nfi
nanci
al
wel
l
nesspr
oduct
sandser
vicest
hatcanhel
pthem managet
hei
rfi
nancesand
achi
evet
hei
rfi
nanci
algoal
s.
o Focusonsoci
alr
esponsi
bil
i
ty:
Cust
omer
sar
eincr
easi
ngl
ylooki
ngt
odobusi
ness
wi
thbankst
hatar
ecommi
tt
edt
osoci
alr
esponsi
bil
i
tyandsust
ainabi
l
ity
.
o Compani
esRespondi
ngWel
ltoTr
ends
o Sev
eralbanksar
eal
readyr
espondi
ngwel
ltot
heset
rendsandar
eleadi
ngt
he
wayi
ninnov
ati
[Link]
abl
eexampl
esi
ncl
ude:
o Chi
me:
Chi
mei
samobi
l
e-f
ir
stbankt
hatof
fer
sav
ari
etyoff
ee-
fr
eef
eat
ures,
such
asno-
costATMsandov
erdr
aftpr
otect
ion.
o Monese:Monesei
sanot
hermobi
l
e-f
ir
stbankt
hati
spopul
aramongmi
l
lenni
als
andGenZcust
omer
s.
o N26:N26i
saGer
manneobankt
hatof
fer
sav
ari
etyofi
nnov
ati
vef
eat
ures,such
assub-
account
sandmobi
l
epay
ment
s.
o Rev
olut
:Rev
oluti
s a Br
it
ish neobank t
hati
s popul
aramong t
rav
eler
s and
i
nter
nat
ional
cust
omer
s.
o Ti
ngTi
ng:
TingTi
ngi
saChi
neseneobankt
hati
sfocusedonser
vingt
heneedsof
mi
l
lenni
alsandGenZcust
omer
s.
o Aspi
rat
ion:Aspi
rat
ioni
sasoci
all
yresponsi
blebankt
hatdonat
esapor
ti
onofi
ts
pr
ofi
tst
ochar
it
y.
o Bankoft
heWest
:Bankoft
heWesti
sat
radi
ti
onalbankt
hati
sinv
est
ingheav
il
y
i
ndi
git
ali
nnov
ati
on.
o Capi
talOne:Capi
talOnei
sat
radi
ti
onalbankt
hati
sknownf
ori
tsi
nnov
ati
ve
cr
edi
tcar
dpr
oduct
s.
o Chase:
Chasei
sat
radi
ti
onal
bankt
hati
sinv
est
ingheav
il
yinmobi
l
ebanki
ng.

11
 o Wel
l
sFar
go:Wel
l
sFar
goi
sat
radi
ti
onalbankt
hati
sknownf
ori
tswi
der
angeof
f
inanci
alpr
oduct
sandser
vices.
Recommendat
ionsf
orBanks
 Toef
fect
ivel
yengagewi
thcur
rentandpot
ent
ialcust
omer
sint
hef
aceoft
hese
t
rends,
banksshoul
dconsi
dert
hef
oll
owi
ngr
ecommendat
ions:
 I
nvesti
ndi
git
albanki
ng:Banksshoul
dinv
esti
ndev
elopi
ngandenhanci
ngt
hei
r
di
git
albanki
ngpl
atf
ormst
opr
ovi
decust
omer
swi
thaseaml
essandconv
eni
ent
exper
ience.
 Embr
acemobi
l
ebanki
ng:Banksshoul
dembr
acemobi
l
ebanki
nganddev
elop
i
nnov
ati
vemobi
l
ebanki
ngappst
hatmeett
heneedsoft
hei
rcust
omer
s.
 Per
sonal
i
zet
hebanki
ngexper
ience:Banksshoul
dusedat
aandanal
yti
cst
o
per
sonal
i
zet
hebanki
ngexper
iencef
oreachcust
omer
.
 Of
ferf
inanci
alwel
l
nesspr
oduct
sandser
vices:Banksshoul
dof
ferav
ari
etyof
f
inanci
alwel
l
ness pr
oduct
s and ser
vices t
o hel
p cust
omer
s manage t
hei
r
f
inancesandachi
evet
hei
rfi
nanci
algoal
s.
 Demonst
rat
esoci
alr
esponsi
bil
i
ty:Banksshoul
ddemonst
rat
ethei
rcommi
tment
t
osoci
alr
esponsi
bil
i
tyandsust
ainabi
l
ityt
oappeal
tocust
omer
swhov
aluet
hese
f
act
ors.
 Par
tnerwi
thf
int
echcompani
es:Banksshoul
dpar
tnerwi
thf
int
echcompani
est
o
accessnewt
echnol
ogi
esandcapabi
l
iti
es.
 Becomeat
rust
edadv
isor
:Banksshoul
dposi
ti
ont
hemsel
vesast
rust
edadv
isor
s
t
othei
rcust
omer
sbypr
ovi
dingv
aluabl
efi
nanci
aladv
iceandgui
dance.
 Bui
l
dast
rongbr
and:Banksshoul
dbui
l
dast
rongbr
andt
hatr
esonat
eswi
tht
hei
r
t
argetcust
omer
s.
 I
nvesti
ncust
omerser
vice:Banksshoul
dinv
esti
npr
ovi
dingexcel
l
entcust
omer
ser
vicet
obui
l
dcust
omerl
oyal
ty.
 By f
oll
owi
ng t
hese r
ecommendat
ions,banks can posi
ti
on t
hemsel
ves f
or
successi
ntheev
olv
ingbanki
ngi
ndust
ryandmeett
hechangi
ngneedsoft
hei
r
cust
omer
s.

12