Marketing Analysis Essay

Marketing Analysis Essay - 1 UMB Bank has had a very...

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UMB Bank has had a very successful history in the banking business. However, given the dramatic changes in the financial services industry over the last 20 years, UMB Bank will have many things to consider when focusing on marketing. There are more competitors than ever, different marketing segments and divisions, and new issues. As Perry Ballard, president of Perry Ballard advertising, Inc., said, banks need to ask themselves "what [the] bank is capable of delivering and what the market needs" (qtd. in Morrall). When UMB looks to the future of its company, there are a few key things it should acknowledge. First, UMB needs to analyze some alternative growth strategies. Once settling on the best alternative growth strategy, they need to decide how to implement it. While doing this, all of the marketing principles need to be examined and included. Recognizing the alternative growth strategies that are acceptable for UMB Bank is not difficult. First there is the intensive growth strategy (or expansion). This includes market penetration, market development and product development. An intensive growth strategy is a good strategy for businesses with a smaller share of the market, so this strategy will not do for UMB since it is well established and has a large market share. The next option is diversification, which is where UMB would aspire for increased sales by developing new products for new markets. This does not just involve adding diversification into a certain product but adding entirely new and different types of products. Diversification includes horizontal integration, vertical integration, concentric diversification, and conglomerate diversification. The diversification growth strategy is not best suited for UMB Bank since the bank already offers several different products and services. There are not many more products or markets that the company 1
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can expand into. The next growth strategy is modernization. Modernization involves "up gradation of technology to increase production, to improve quality and to reduce wastages and cost of production. The worn-out and obsolete machines and equipment are replaced by the modern machines and equipment" (Sabharwal). Modernization is an adequate possibility for UMB Bank. We will keep this one in mind as we go on to look at the next strategies. After modernization, there is the external growth strategy, which includes mergers and joint ventures. Mergers are when different companies combine together into new corporate organizations. Joint ventures are "when two or more companies mutually decide to establish a new enterprise by participating in equity capital and in business operations. It is a business partnership between two or more companies for a specific business operation" (Sabharwal). An external growth strategy such as a merger or a joint venture is a possibility for UMB Bank as well. We have narrowed it down to two different growth strategies, one being
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Marketing Analysis Essay - 1 UMB Bank has had a very...

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