Models used in strategic marketing planning

Different models are used in various stage of the strategic marketing planning.
Following models are used to conduct the marketing audit. Porter’s five forces
analysis – this mode is used to comprehensively analysis the micro environment of
the business. Factors such as bargaining power of the customers, bargaining power of
the suppliers, threats of the rivalry, threats of new entrance and threats of substitutes
are considered in this model (E.M, 2005). According Porter’s five forces model, it can
be identified that industry competition is considerably high in Sri Lankan banking
industry. PESTLE analysis – PESTLE analysis is evaluated the macro environment of
the analysis. This analysis gives broad view of the whole environment in six different
angle such as political, economic, social, technological, environmental and legal. All
these aspects are highly important to any business in any industry (Fernando, et al.,
2021).

Marketing objectives (2017-2019)

 Continuous value innovation in the category of ATM-banking

 Increase the income generated from ATM-banking services by 50% within next 3
years
 Increase customer retention by 25% within next 3 years
 Increase the advertising and promotion expenses by 40% in the category of ATM-
banking
 Increase the market share by 15% within next 3 years
Financial objectives of the bank are aimed at maximizing the shareholder wealth over the
next 3 years. Securing the shareholder interest is utmost important as the bank is a listed
company in the combo stock exchange. Marketing objectives are important as a way to
establish a proper management culture within the function.

Marketing Strategy

The bank’s current marketing strategy is “focus differentiation” as they have a more interest
towards high class white collar people. But, in order to enhance the customer retention and
market share of the ATM-banking category in a mature market, marketing plan suggests
broadening the market focus towards middle and lower class as well. Differentiation strategy
will help to achieve the suggested marketing objectives by creating value for a broader
segment.

Growth trap

Being the 5th largest player of the banking industry, Sampath bank continues to
grow by keeping branch expansion at the heart of their corporate strategy. For the year of
2010 they opened up 40 new branches and 39 ATMs showing the intensity of the
market development strategy. Expansion is good for a business, but it should be headed at the
correct direction. Rapid expansion will definitely assure short term profits for the business,
but in the absence of unique value innovation, expansion solely won’t help to sustain
the business in the long run. Strategies like branch expansion, service modifications etc. can
be easily copied by the rivals, thus doing similar activities better than competitors will
not protect organizational interests in the long run. Hence, the bank has to perform
different activities from rivals or similar activities differently.

New value innovation and keeping the pace with market trends

Considering the above mentioned gaps of the corporate strategy, this plan suggests ways and
means to achieve a sustainable competitive advantage in the long run. The bank should
deviate their focus from rapid growth and try to retain existing customers in categories like
ATM-banking. This guides business to invest resources in the correct avenues rather
than wasting too much of money on outdated strategies which gained value in the past
 Critical analysis of contribution of marketing management processes to
the achievement of corporate objectives of Sampath bank considering
feedback loops to corporate decision-makers being used.

Market size
Considering the market size of Sampath Bank deposits grew by 24.1% to Rs. 302.4
Bn mainly focused by improved business volumes from Personal Banking as branches
improved their business volumes. The countrywide existence through their network of
two hundred and twelve branches and initiatives executed during the year such as idea
were key factors that empowered growth in deposits.

Figure 2- Business growth of Sampath bank Source - (Anon., 2020)

Financial objectives (2017-2019)

 Increase the EPS and DPS ratio by 20% in 2019

 Increase the net operating profits of the business by 25% in 2019
 Maintaining a quick ratio of 1:3 over the next three years
 Increase the income of product categories other than personal banking and corporate
banking by 30% within next 3 years
 Maintaining an average growth rate of 15% within next three years
5. An analysis of processes involved in strategic marketing in the light

of Sampath bank

Strategic marketing and corporate strategy

Sampath bank’s vision is to be the growing force of in Sri Lankan financial services.
And bank mission is to create large pool of customer base by providing personalized,
professional and secured service with cutting edge quality and standards. Bank will
delight their customers and make them life time advocates of the business. Corporate
strategy of the bank is to decide the overall business direction. According to Sampath
bank vision, bank follows market and product development as growth strategies.
Strategic marketing helps to achieve the corporate strategy of the company through
marketing mix decisions to develop new products and new markets. Mainly strategic
marketing focus on customer segmentation, targeting and product positioning.

Main thing that management keep in mind is strategic management plan need to be
aligned with vision, mission and values of the business. Further management need to
define the corporate long term goals. Then company need to conduct environmental
analysis. Company need to conduct internal and external marketing audit. PESTEL
analysis can be used for external environment analysis. Competitor analysis is also
come under external environmental analysis. Porter’s five forces and competitor
analysis can be conducted to perform task environment 4 analysis.
Portfolio analysis and value chain analysis need to be conducted to perform
internal analysis. Further SWOT need to be performed to conduct situational analysis.
Based on all these analysis, gap need to be analyzed between current status and
desired outcomes .Key issues need to be identified based on the gap analysis. Then
company need to develop financial and marketing objectives to fill the gaps. Further
management need to identify the critical success factors to achieve these objectives.
Then strategic direction need to be defined. Bank need to conduct the market
segmentation which bank to identify the different customer categories. Bank need to
allocate resources requirements to serve the different customers’ segment well.
Different growth strategies need to use for different customers’ segments to achieve
the competitive advantages. Strategic marketing plan need to do divide different
marketing tactics and need to implement them. Further strategic marketing plan need
to monitor time to time. Key performance indicators need to be developed to monitor
the performance. Further methods such as benchmarking and balance scorecard can
be used to monitor the performances.