Most times and inadvertently, people tend to be distant from the fact that banks are brands in a defined market, much as the individual brands in the alcoholic beverage market, for instance, as in other markets. As brands, banks are challenged in every respect, to generate, grow and sustain a positive image for competitive advantages. This is an indirect consequence of the larger-than-life image of bank brands in under-developed and poorly developing economies.
In Nigeria, for instance, banks’ posture as “the source of money” not as a statement of fact, but as a derivation from institutional role, occasioned by statutory backing based on traditional pattern. Just like we now see being rejuvenated in the insurance industry, those at the bottom of the pyramid are compelled to use the banks. Research studies have shown that the banks do not have any attraction for those in the low income bracket (in under-developed economies such as ours). So, because bank-brands are rather compelled, as of essence, over 85 percent of their customers are forced to depend on them for survival – instead of the banks depending on their customers for market survival.
That brings us to the issue of business systems.
From the perspective of brands management, fundamentally, business system is a procedure, process, method or cause by which a certain operation is conducted for specific result. In relating the above definition to structured business, a system is an aggregate of the essentials or basic elements imperative for any given business to operate successfully. A business system will consider elements such as attributes, design, people, operation theory/philosophy, ethical and/or professional standard, quality control, and financial policy, etc. business systems are based on structural and procedural framework within which a given business runs. As of nature, they differ from industry to industry.
If we place these elements of a business system within the context of a product or service development and offer, they clearly capture those properties underlying market and marketing – concept and practice. Suffice, therefore, that business system, for brands, is instrumental in brand building and brand development/management. So, what advertising and marketing communication strategists call brand-world peculiarities are otherwise, business systems defined by industry related peculiarities. These peculiarities are the distinguishing factors among systems. Functionally, they impact on the brands operative within their related industries/market segment, fundamentally.
So, while brands in travel and tour will be very careful at structuring brand messages that must of essence help them build profitable customer base, Bank-Brands can only be generous to drive brand management for customer base growth. The degree of competitiveness varies along the line of industry peculiarities and differences.
As the focus of this article, we shall concern ourselves with the commercial banks in our local market, as we consider brand building, management and re-branding, in the banking industry. Considering BUSINESS SYSTEM as fundamentals of brand building and management for competitive advantage, in direct relation to Bank-Brands, it is instructive to play up some of those component parts of brand management, especially brand-target market relationship management.
As noted earlier, it is not characteristic of banks’ business system to be truly competitive for competitive marketing advantage in this market. We also did state that bank brands have assumed a larger-than-life image because their essence and offer as businesses and brands are made essential and mandatory for those at the market place. Consequently, they do not, as a matter of fact, take deliberate step towards customer relationship management. Evidently lacking among the banks is innovativeness, strategic marketing communication and compelling brand management thrust.
In addition to the statutory support upon which their operation and survival rest, bank-brands’ predominant offer is commission-based service delivery. Sometime in the early 1990s, some of them attempted what they saw as product development in form of money transfer, but in real sense, those offers were mere repackaging of commission-based offer, with an infusion of marginal technological advancement. The services they offer are essential and compelling for their customers, consequent upon which is the size of patronage and customer base. In some of these banks, they call their sales activities “deposit base drive marketing”, when in actual fact, they are trying to be relevant as brand managers.
Brands/customer relationship is built on contact. Ultimately, the relationship between a brand and its target market is a direct consequence of the “initial contact”. So, in a truly competitive market, therefore, brands invest time and resources to prepare for this initial contact for a profitable after-effect. Generally, the contact opportunities open to brands include (but not limited to) product package, logo, shelf presence, price, promise, positioning, quality of representative persons (sales team, for example) and shelf presence (place in market). A purposeful consideration of all of these elements forces the engagement of experts in brands management, marketing and marketing communication, from conception through every point of the Product Life Cycle. Marketing and brands management is a deliberate and consistent investment for brand’s success.
Of the contact opportunities open to a brand as listed above, the only one the bank-brands concern themselves with in this market is identity building – name and logo development and application. In their ignorance, most of these bank-brands pride themselves in spending hundreds of millions creating their brand logo. The craze among them at the introduction of bank mergers, was commissioning logo developers from South-Africa. The annoying thing is that those expensive logos are actually empty in brand-specific concept. Those huge investment in logo generation, were without concern for the task of marketing and customer connect and relationship building, and the brand’s over-all competitive advantage.
LAST LINE
In these lean times, it is certain banks would take on a totally new trajectory in brand support, especially in view of attendant cost profile. In a news story recently, the Association of Advertising Agencies in Nigeria (AAAN), in a conference, made strong statements in condemnation of multi-national corporate bodies and high profile brands’ preference for foreign advertising agencies; they are invited to manage brands here for all sorts of consideration. According to the news, the association considered this condemnable. But most of our local brands started this by inching towards South-Africa, for what they call ‘perfect-finish’ creativity and production. Our position, however, is that the practice is same round the world, and we must identify with local practitioners with global quality standards to work through the process of brand definition, value identification & proposition, target market profiling and engagement for profit. It is more beneficial and cost-efficient.