Deck 12: Bank Marketing

Question 1

In 2015 the media type that received the most advertising revenue from U.S. businesses was

A)radio.
B)television.
C) magazines.
D) newspaper.

Answer 1

B

Question 2

A bank's public relations activities

A)are addressed to the general public and stockholders.
B)should be limited to only one type of media-television, radio, or print, but not all.
C) would usually include a press release about a major scandal involving a vice president.
D) all of the above are true.

Answer 2

A

Question 3

Which of the following would probably NOT be considered an example of good customer service?
A)M. until 3 P.M. Monday through Thursday.

A)All the staff members of Deerfield Bank have the skills to explain the bank's products and services accurately and clearly.
B) Second National Bank is open from 10
C) Integrity Bank promises that it will never make a mistake on your account; if it does, it will pay you a $25 "oops" fee.
D) Mega Bank offers its customers online banking services.

Answer 3

B

Question 4

The first thing you should do when a problem arises with a customer is to

A)tell the customer you're having a bad day too, in an attempt to calm the situation.
B)call your supervisor over to handle the situation.
C) apologize for the situation.
D) point out how the customer created the problem, to make sure it never happens again.

Question 5

A market in which many competitors are already present is usually very easy to enter because the customer base is already established.

Question 6

The first step a bank should take to create a favorable impression to the public is to

A)determine its current image.
B)define its goals in creating its image.
C) analyze the image it wants to present.
D) determine its target audience.

Question 7

The most effective advertising campaigns usually select one type of media-such as print, broadcast, or the Internet-and stick with it exclusively.

Question 8

Marketing is only about advertising and selling goods.

Question 9

Most modern, sophisticated customers no longer expect employees to use phrases such as "thank you" and "excuse me." They only want to transact their business as quickly as possible.

Question 10

A press release describing an employee's promotion would not typically be part of a bank's public relations activities.

Question 11

Marketing objectives for a bank should be measurable, flexible, and complement its financial objectives.

Question 12

Sponsoring sports teams is one way a bank can help create a favorable impression with the public.

Question 13

A bank website that presents information by focusing on specific products offered by the bank is using a demographic approach for marketing products.

Question 14

Which of the following is one of the "4 Ps" of marketing?

A)performing
B)pricing
C) prioritizing
D) presenting

Question 15

Columbia Bank has targeted teenagers as a potential market. Which of the following is probably an inappropriate advertising campaign for Columbia to use?

A)Ads that promote low mortgage rates and home equity loans.
B)Ads that promote online banking services.
C) Ads that emphasize savings accounts that can be established with only a small initial deposit.
D) Ads that stress friendly employees who can teach customers how to manage their accounts and write checks.

Question 16

"Talking down" to a customer

A)is a perfect example of doing business from the customer's perspective.
B)can be an effective way to gain and keep control of a difficult situation.
C) is likely to insult and embarrass the customer.
D) can help secure business by emphasizing to the customer just how smart and qualified the employee is.

Question 17

If a problem arises with a customer, employees need to follow up on the situation to make sure that it has been corrected.

Question 18

It is acceptable to argue with a customer when you are absolutely certain that you are correct.

Question 19

Bank employees who are dressed too casually

A)should be fired on the spot.
B)have no impact on the bank's public image.
C) are considered friendlier and more reliable by most customers.
D) can often project an apathetic image to customers.

Question 20

A public relations campaign includes activities associated with areas such as customer relations, marketing, and advertising.

Question 21

The bank in your small community has $42,000 to spend on an advertising campaign this year. It expects a return of $7,500 in the first year. What would be the ROI on this ad campaign? (Round your answer to the nearest whole percent.)

Question 22

The bank in your small community wishes to have a 20% ROI on the Internet advertising campaign it is rolling out. If its goal is an expected return of $10,000 in the first year, how much should it budget for the campaign?

Question 23

Public ____________________ is the planned and sustained effort to establish and maintain goodwill between an organization and its public.

Question 24

A public ____________________ is the concept the public has of a business.

Question 25

What is the final step a bank should take in its efforts to create a public image?

Question 26

____________________ is a carefully planned effort to advertise a company through the Internet by using the most practical, effective, and up-to-date strategies.

Question 27

Customer ____________________ is the process of dividing a market into subgroups that have specific preferences or needs.

Question 28

____________________ is the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organization objectives.

Question 29

A(n) ____________________ market is a preselected group of buyers for whom a product or service is created and to whom a marketing campaign is directed.

Question 30

Name at least three ongoing products that individual customers typically need from a bank.

Question 31

____________________ is the most effective way to drive Internet business to your website.

Question 32

A form of advertising that delivers advertising materials individually to a target market via the U.S. mail or telemarketing is called

A)print media.
B)cybermarketing.
C) direct marketing.
D) outdoor media.

Question 33

First National Bank spent $250,000 on a series of television commercials. Determine the ROI assuming the ads are expected to have a $35,000 return in the first year.

Question 34

____________________ states that the most profitable way to view customers is in terms of their present and future value to a bank.

Question 35

Customer ____________________ involves the activities and programs a seller provides to make the relationship with its customers satisfying.

Question 36

Morgantown Bank is considering two different advertising campaigns. The first is an integrated campaign consisting of radio, Internet, and direct mail advertising. The total cost of this campaign is $75,000 and it is expected to have a $12,000 return in the first year. The second campaign will consist of television advertising only. It will cost $180,000 and is expected to have a $25,000 return in the first year. Which campaign should it choose?

Question 37

Smalltown Bank budgeted $80,000 to spend on newspaper ads. The return to the bank in the first year is expected to be $10,000. What is the return on investment (ROI) Smalltown Bank can expect from its newspaper ads?

Question 38

____________________ is the paid description or presentation of a product, service, idea, or organization to encourage individuals to buy, support, or approve of it.

Question 39

The concept of ____________________ refers to a bank's ability to provide you what it promised in a dependable and accurate manner.

Question 40

The degree of caring and individual attention a bank shows its customers is known as ____________________.

Question 41

Give at least five examples of inappropriate behavior an employee should never exhibit toward a customer.

Question 42

What does it mean for a bank to do business "from the customer's perspective"?

Question 43

What are the "4 Ps" of marketing?

Question 44

What are some guidelines a bank should follow when it selects its target market?

Question 45

What does empathetic service demonstrate to a customer?

Question 46

What is social responsibility? Why is it especially important for banks?

Question 47

What are four questions that should be asked during the planning phase of a public relations campaign?

Question 48

What is an entrenched customer? How should a bank view an entrenched customer?

Question 49

Explain how corporate image and reputation affect a company's profits.

Question 50

Name two competitive threats to traditional banking.