Marketing Plan Financial Institutions Have Been Under

Marketing Plan

Financial institutions have been under intense scrutiny over the last half decade. Many individuals, often unduly, blame the larger financial institutions for much of the world's economic problems. In the midst of this extreme economic pessimism regarding financial institutions, the underlying business operations of these firms must continue. In fact, it is the result of this pessimism that many financial firms are acquiring new deposits, and customers due in part the economic uncertainties of the future. One large financial institution that has had a very successful marketing campaign in the current down economy is that of Wells Fargo. The current economic pessimism regarding the economy has allowed Wells Fargo to capture market share while also receiving record earnings.

This down economy has created record low interest rates that are expected to prevail until late 2014. These low interest rates, in some cases, create outstanding opportunities for financial institutions. Wells Fargo, who currently has 33% of the mortgage origination market share. Low interest rates encourage customers to refinance their home mortgage which allows financial institutions to increase fee income in the midst of a low interest rate environment. Wells Fargo marketing campaigns are geared towards customers who own a home and are looking to refinance it at a lower, more attractive rate. As such, Wells Fargo has spent millions in advertising campaigns in order to attract these customers.

The effectiveness of the campaign can be partly attributed to Wells Fargo and partly to the prevailing economic circumstances. The campaign itself is very basic and straightforward reflecting the banking industry overall. It features multiple ads in media, television, and newspaper. What I found very interesting about the campaign is that it is catered towards the demographic marketing area in which it will be displayed. For example, in Miami, Wells Fargo has placed ads in Spanish on buses, bus stops, and in malls. This guerilla marketing tactic, I believe will do very well in Miami which historically has a very Latin community. The ad itself is very simple. It displays, in large font, "Record low interest rates!" with smaller print asking customers to refinance. There is some differentiation in the ads, with an emotional appeal embedded in them. These emotion appeals pertain mostly to saving money for children and the family's future. I would improve the ad and marketing campaign minimally. I would use extensively media advertising as more consumers are getting acquainted with the digital age and its uses. Online mediums, particularly on websites would also be attractive given the adoption rates of internet worldwide.