Topic: INTERNET ADVERTISING IN CUSTOMER RELATIONSHIP MANAGEMENT

WITHIN BANKING SERVICE MARKETS IN BOTSWANA

1.0 Background of the Study

Botswana’s financial services sector has grown and changed considerably over the period since
1990. Historically, the sector was relatively small, and dominated by Barclays and Standard
Chartered Banks. Operations of both banks in Botswana dates back to the 1950s, and were
originally run as subsidiary branches of the South African banks. In the 1970s, they were both
incorporated in Botswana as independent operations within the overall international structures of
Barclays and Standard Chartered Banks, in line with the requirements of the Financial
Institutions Act of 1975, and came under the supervisory purview of the bank of Botswana
(BoB), which was established in 1975.

Unlike many other countries, there has never been a government-owned commercial bank in
Botswana. However, the government has been an extensive provider of finance in the economy,
through the above institutions and also through the Public Debt Service Fund (PDSF), which lent
directly from government funds to state-owned (parastatal) enterprises, and for many years the
PDSF was the largest lending entity in Botswana[ CITATION Jef10 \l 1033 ]. As the banking sector
developed, technological environment also evolved through Internet. Use of technology through
online advertising (also known as online advertising-No need for this) efforts also developed to
support the operations and continued growth of these banks. However, the extent to which
internet advertisement efforts has been effectively utilized in Botswana, as far as customer
relationship management cannot be substantiated at this point. This paper therefore aims to
assess the effectiveness of internet advertising in customer relationship management within the
banking sector in Botswana.
1.1 Statement of the Problem

As we continue to transition further into an era of heavy reliance on technological advancement

for basic activities, it is essential as marketers to also evolve and adapt to technological
advancements and create marketing strategies suitable for it. Consumer behaviour, tastes,
preferences are changing, which means offline advertising isn't an effective option as it used to
be.

However, are these internet advertisements effective in converting prospects to certified

customers? Are banks effective in maintaining customer relationships based on internet
advertisement? Otherwise, they risk saturating various internet platforms without knowing how
such advertisements impact sales or brand positioning. Marketing as a principle is about creating
demand for products and services for the target audience or market in the right way, through
appropriate mediums, and at the right time. In this era, marketers can meet prospective customers
on the World Wide Web, where they spend the majority of their time. The complexity arises in
leading their attention from the internet into our area of focus.

Considering that the banking sector does not offer tangible products, but rather provides an
intangible products and services; it becomes difficult for marketers to effectively communicate
their service proposition in a way that positively influences buying decisions. Generally
“Services are performances, rather than objects, that cannot be seen, felt, tasted, or touched in the
same manner in which goods can be sensed” (Problems and Strategies in Services Marketing,
Journal of Marketing, Zeithaml, Parasuraman, & Berry, 1985). When customers invest in a
bank, their immediate benefit is perceived through the manner in which the said customer is
handled by the bank. The question is whether the pursuit of the customer before and after
purchase of service remains consistent or not. The challenge marketers within the banking
industry face, is allocating appropriate strategies to ensure that the brand is strategically
positioned at every conceivable avenue and that execution of service exceeds customer
expectation. Service products can be differentiated through the various characteristics that
constitute a service. There are four main characteristics of services important to consumers;
“intangibility, inseparability, heterogeneity (variability) and perishability" [CITATION
Placeholder1 \l 1033 ].
In light of these characteristics, the marketer needs to consider the following:

 How best to advertise a ‘product’ whose benefits can only be perceived;

 How to brand this ‘product’ in a way that converts a prospective client to a loyal one;
 Which advertising mediums to use;
 What steps to follow to identify and convert leads into tangible customers; and
 Which strategies to adopt in order to retain customers.
Having examined the qualities of the service delivery, answers to those inquiries do not come by
easily. To ensure survival, banks should be able to market their service in a way that is relevant
to the digital environment but also appealing to existing as well as potential customer needs.
According to Carbo-Valvarde et al (2009), a competitive banking system is a pre-requisite for
effective intermediation between clients and investors. An effective banking system should be
able to introduce superior innovative products and services, decreased service tariffs and
enhanced quality of the services.

1.2 Objectives of the study

The study seeks to:

 Analyze adaptive efforts being directed towards internet marketing within banking sector
in Gaborone in the light of distinct customer needs,
 Examine effectiveness of the aforementioned internet marketing communications efforts
in creating customer satisfaction
 Attempt to diagnose inadequacies in current internet marketing efforts for the banking
sector as far as customer relationship management is concerned

1.3 Research Questions

1. How effective is internet advertising within the financial services sector in Botswana?
(Your market is more than Gaborone May be your research is limited to Gaborone only?)
2. What are consumers’ attitudes toward internet advertising?
3. What measures should be taken to diagnose deficits in the current internet advertising
efforts?
1.4 Purpose of the Study

The purpose of this qualitative, descriptive research is to analyze the internet advertising efforts
made by the financial services sector in Botswana and thereafter determine their effectiveness
pertaining to customer relationship management and retention. Data is to be obtained through
administration of a survey to various customers within Gaborone, Botswana.

1.5 Significance of the Study

Through this study, the researcher will gain a better understanding of the complexity of internet
advertising in the banking sector, how it affects customer relationship management and to
identify strategies to be utilized by the banks, to take advantage of internet advertising to manage
customer relations within the banking industry. As the study progresses, more lessons will be
learnt to facilitate improvements in the current internet marketing strategies and enhance future
service provision.

The research will benefit other academic and non-academic institutions such as banks
themselves, in the sense that they will amass more knowledge on the banking sector and
platforms used in this sector to communicate effectively, their unique service offerings. Other
marketers will benefit from the study as it relates to their work in part in identifying different
methods for improving and idealizing their profession as advertising experts in the marketing
field.

1.6 Conceptual Framework

Thesis Statement: Commercial banks are likely to succeed in effectively connecting with their
targeted audience if they leverage internet based mediums such as search engines, social media,
email, and other websites to connect with current and prospective customers. It remains to be
determined whether these internet based campaigns are effective as far as customer conversion
and retention are concerned, and whether in their marketing campaigns they gauge the success of
these marketing efforts. Generally, the service industry in Botswana is still growing. Most
companies take a sales oriented approach to customer handling i.e. the needs of the business
come before the needs of the customer.
This according to marketing goes against its core principle which is to analyze the needs of
customers and thereafter satisfy those needs. It is easy to argue that the largest competitive
advantage for any organization, all other variables held constant, is superior customer service.
The value a customer derives from a service becomes directly linked to the costs they incurred
for that service. Meaning to say that customer service does not begin after the customer has
invested in a product or service.

Superior customer service begins with the initial approach, down to conversion, and of course
after-sales service. This is especially crucial in the service industry because what the customer is
paying for is mainly experience and not tangible benefits. “Customer Value pertains to the
perception of what a product or service is worth to a customer versus the possible alternatives.”
[ CITATION VKu12 \l 1033 ]. Therefore, customer worth is determined by whether the customer
perceives value for the money spent. Customer value orientation requires the customer being the
main focus. After all, marketing oriented business is less about sales and more about customers.
This implies that interaction with the customer, should demonstrate genuine interest to provide
practical solutions through service provision is likely to translate to sales and customer loyalty.

1.7 Assumptions of the study

Selected financial establishments will permit the researcher to the survey necessary for gathering
data. Participants will be willing to partake in the research and will answer questions denoted in
the survey without bias.

1.8 Limitations of the study

In light of the COVID-19 pandemic, gathering data through interactive means or face-to-face
will be a challenge as people are discouraged from making direct contact in line with COVID-19
protocols. Further, the researcher will not be able to invest sufficient time into the study as they
are a full-time student with other academic obligations i.e. attachments and other pending
courses. In addition, the researcher will not have added financial resources to support the study.
1.9 Delimitations of the study

With the availability of digital information, it will be easier for the researcher to obtain some of
the information required for the research. Also, because of the development in banking
administrations recently, sourcing data on their incorporated promotion specialized instruments
won't be excessively troublesome. The main aim of the research is to portray the current banking
internet marketing systems, the results of poor administration of these systems in conjunction
with the nature of service and how these results have impacted marketing communications
efforts within the banking service industry, both in the past and at the present moment.

1.10 Definition of Terms

Service Proposition

A service proposition refers to the value a company promises to deliver to customers should
they choose to buy their product/service.

Marketers

A person whose duties include the identification of the goods and services desired by a set of
consumers, as well as the marketing of those goods and services on behalf of a company.

Service Offerings

An offering in marketing is the total offer to your customers. An offering is more than the
product itself and includes elements that represent additional value to your customers, such as
availability, convenient delivery, technical support or quality of service.

Internet Advertising

Internet advertising is a set of tools for delivering promotional messages to people worldwide,
using the Internet as a global marketing platform.
Positioning

Market positioning refers to the process of establishing the image or identity of a brand or
product so that consumers perceive it in a certain way.

Brands

Unique design, sign, symbol, words, or a combination of these, employed in creating an image
that identifies a product and differentiates it from its competitors.

Commercial Bank

Commercial banks are banks that offer services to the general public and to companies.

Marketing Communications

Marketing communications are those techniques that the company or a business individual uses
to convey promotional messages about their products and services.

Customer Value

Customer Value is the perception of what a product or service is worth to a Customer versus the
possible alternatives.

Customer Relationship Management (CRM)

 Customer relationship management (CRM) is the combination of practices, strategies and

technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle.
1.11 Organization of the Study

In this paper, there are 5 chapters in total. Chapter 1 consists of a brief introduction to the
research and the objectives it seeks to achieve. It also highlights expectations of the study and the
various challenges that may arise. Chapter 2 of this paper is an in-depth compilation of review of
literature on associated research concerning the topic of study. This second chapter has been
formulated in a way that will allow the reader to further understand the importance and purpose
of why the researcher chose to study the chosen topic. Chapter 3 consists of the research
methodology i.e. a systematic outline of how the data was collected and thereafter analyzed.
Chapter 4 is a compilation of all the findings accumulated during data collection as well as
analysis of that data. And finally Chapter 5 consists of interpretations, recommendations and
conclusions of the study.
Works Cited
Carbo-Valvarde, S., Rodriquez-Fernandez, F., & Udell, G. (2009). Bank Market Power and SME Financing
Constraints. Review of Finance , XIII (2).

Kumar, V., & Reinartz, W. (2012). Customer Relationship Management: Concept, Strategy, and Tools.
Springer publishing.

Wolak, R., Kalafatis, S., & Harris, P. (1998). An Investigation Into Four Characteristics of Services. Journal
of Empirical Generalization in Marketing Science , III, 22.

Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1985, April). Problems and Strategies in Services
Marketing. Journal of Marketing , 33-46.