Marketing and Communications: Understanding Customer Needs and Competitor Analysis at Metro Bank

This report examines the importance of understanding customer needs, wants, and demands within the context of Metro Bank's marketing strategy. It analyzes the macro environment, including technological and economic factors, and conducts a competitor analysis to identify key areas for Metro Bank to consider. The report also explores Metro Bank's current marketing mix using the 7Ps of marketing, providing detailed examples for each element.

Marketing and Communications
1

Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
a. Explain the importance of understanding customers’ needs, wants and demands within
marketing................................................................................................................................4
b. Using examples, discuss the needs, wants and demands that Metro Bank customers show
................................................................................................................................................5
Task 2.........................................................................................................................................6
a. Explain the relevance of a situation analysis to an organisation........................................6
b. Considering the macro environment of Metro Bank, identify and discuss one
technological and one economic factor that could impact Metro Bank’s business operations
................................................................................................................................................7
c. Outline the importance of competitor analysis in marketing.............................................8
d. Identify three key competitors of Metro Bank and create a competitor analysis table,
using one of the competitor analyses.....................................................................................9
e. Discuss the findings of the competitor analysis in Section D above, highlighting key
areas for Metro Bank to consider.........................................................................................10
Task 3.......................................................................................................................................11
a. Using the 7ps of Marketing, identify and describe Metro Bank’s current marketing mix
providing detailed examples for each of the 7Ps discussed.................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14
2

Introduction
Metro Bank is the organisation that used to provide the services to its customers in banking
and financial services. There is a different type of functioning that used to take place in the
Metro Bank like consumer banking, Corporate Banking and Credit card services. These are
the services that help the different customers of this bank to make their works accomplished.
This bank is headquartering in London. This bank gets its licence on 5 March 2010. This
bank is planning to open and operate the different stores and branches of this bank in the
United Kingdom. The first store of this bank was opened in the Holborn on 29 July 2010. The
total number of the employee in this organisation is 2129 members. Metro Bank is the first
high street bank to launch in the United Kingdom after 150 years. This bank operates all 7
days a week. The bank account can be opened in this bank in 15 minutes only. The stores of
this bank are pet-friendly. Biscuits and water to the dogs of the customers used to be
provided. Coin counting machines used to provide to the customers that help the customers to
take the changes from the banks in an easy manner.
In this report, there is the discussion of the different type of needs and wants of the
customers. These are discussed within the marketing context of Metro Bank. The situation
analysis of Metro bank is understood in this assignment. The impact of the technological and
economical macro environmental factors for this bank nosiness is understood in this
assignment. The competition analysis is also described in this report. Further, there is the
analysis of competitors of this bank. After that, there is the evaluation of 7ps of marketing for
the Metro bank.
3

Task 1
a. Explain the importance of understanding customers’ needs, wants and demands
within marketing
Repurchase Indication
If the products and the services are made according to the needs wants and demands of the
customers then the customers would repurchase the product and the services that would be
provided by the Metro bank. These are the loyal customers that help the bank as these
customers remain with the bank if services and products are provided according to the
customers (Brush, et. al., 2012).
Differentiation
The uniqueness of the product and the services can be created among the customers of this
bank if the customer gets product and services according to their need and wants. This would
help the bank in gaining the competitive advantage.
Reduces churn
The prices that are charged for the customer's services are not the factor for the customer
churn it is the poor quality of services that are provided to the customers. Metro bank
analyses well the needs and the demands of the customers and provide product and services
to customers according to customers with good quality. In this way, it is important to analyse
the needs and wants of the customers to provide good services (Amoako, 2012).
4

b. Using examples, discuss the needs, wants and demands that Metro Bank customers
show
Faster payments
Late payments and delay in the payments is the general problem that used to suffer by the
different customers of the Metro banks. The customers of this bank show the demands of the
fast payments and the transaction. It is the new bank so innovation expectations from this
bank are very high from the side of the customers (Brush, et. al., 2012).
Privacy
All the customers of this bank used to demand the high privacy of the data and the personal
information of the particular person. The information can be secured well with the help of the
different data protection software. The information hacking can be stopped with the help of
different data protecting model. This would provide the security of information for the
customers.
Secured Internet and Mobile Banking
The mobile bank and the internet banking are the two processes of the banking in which there
is the great fraud used to take place. The customers of this bank are seeking good online
transactions that are secured. The passwords and the PIN of the customers should not be
leaked at the time of Internet and Mobile Banking. The new customers are also coming to this
bank because of the good services are provided to the customers in the context of Internet and
Mobile banking (Amoako, 2012).
5

Task 2
a. Explain the relevance of a situation analysis to an organisation
Product Situation
The present situation of the product in the market can be analysed with the help of situation
analysis of the Product and the services that are provided to the customers of Metro Bank.
The marketing strategies can be made for the product and services if the situation of the
product and services analysed well (Golin & Delhaise, 2013).
Competitive Situation
The competitive advantage can be gained with the situation of the bank as well the situation
of the competitors of this bank is analysed. The constructive steps would be made by the
Metro Bank in the direction that would help this bank in getting a competitive advantage.
Distribution Situation
The demands of the product and services of the bank are analysed and then production of the
product and the services used to be done. The supply of the services and products of this bank
can be given to the banks that would help this organisation in providing no delay supply to its
customers.
Environmental Factors
The internals as well the externals marketing factors can be analysed. The externals factors
can impact positively if the policies of the government are good. These factors can impact
negatively if the business environment in the country is not favouring the business of this
organisation. If there are internal faults within the organisation then they can be analysed and
then plans can be made for the good function of the Metro Bank (Golin & Delhaise, 2013).
6

b. Considering the macro environment of Metro Bank, identify and discuss one
technological and one economic factor that could impact Metro Bank’s business
operations
Technological factor
Technology is developing rapidly. This bank is used to acquire the technology in its
processes and functioning at fats rates as compare to other banks. This helps this bank in
getting a large number of customers. The coins vending Machines enable the customers of
this bank to take changes of currency notes automatically into the coins. The improvement in
banking software’s can be attired with the help of Technology in the banking g of the Metro
Bank. The security at the time of the online transaction is also made good with the help of the
technology. The transaction and the payment failure rates also become down because of the
Technology (Louzis, et. al., 2012).
Economic Factors
The ease of doing business is provided by the United Kingdom Government that helps such
type of new business to operate in this country freely. At the time of the recession in the
United Kingdom, the inflation rates were not too much high. This is the ambience that was
provided to the customers of this bank that helps this bank in getting a good number of
customers (Louzis, et. al., 2012).
7

c. Outline the importance of competitor analysis in marketing
Market trends and patterns
The present market trends in the Banking Industry can be analysed with the help of
competitor analysis. The trends that are followed by the different banking groups can be
analysed that would help this organisation in making the product and the services according
to the current trends. This would attract customers.
Formulate strategy according to organisation growth
The formulation of the stagey can be done according to the present competitors of the Metro
Bank in the markets. The strategy would be made in such a way so that this bank can get
more customers as compared to competitors (Tan, 2016).
The uniqueness of product and services
The unique in the product and the services can be made by this bank with the help of the
comparer’s analysis. The qualities that are included in the computers are analysed in the
analysis of the competitors of this bank. Further such innovation in product and services are
involved so that uniqueness in products can be attained. This would make the customer’s to
buy product and services of Metro Bank (Tan, 2016).
8

d. Identify three key competitors of Metro Bank and create a competitor analysis table,
using one of the competitor analyses
The competitors of this Bank are Lloyd Banking Group, Royal Bank of Scotland and
Santander UK plc.
Factors/ Bank Metro Bank Lloyd banking
Group
Royal Bank of
Scotland
Santander UK
plc.
Year Of
establishment
2010 1765 1727 2010 (Financial
Times, 2018)
Number of
Stores
100 700 1000 1010
Number of
Employees
2129 45,856 71,200 20,000
Net income £16.8 million £16.6 billion £ 5.26 billion £962 million
Total assets £10,057.3
million
£436 billion £ 726 billion £19.4
9

e. Discuss the findings of the competitor analysis in Section D above, highlighting key
areas for Metro Bank to consider
The Metro bank is the New Bank in the United Kingdom so it can focus on attracting the
customers as other banks are having the large consumer base. The Metro Bank has also less
number of stores in the United Kingdom so it can focus on this also. This providing the
services to its customers on Sunday also but it should focus on enhancing the number of the
employee so that increasing customers can be tackled well. The services can be provided to
these customers in an effective manner because of the increase in the number of employees
for this Banking Group (Financial Times, 2018).
If this bank would focus on the number of customers to be increased then Net profits and the
income would also get increased at a good rate. This would help this bank in getting ton
increase assets. Therefore the whole assets value of the banking group can also be increased
because of the increase such scenario of Metro Bank (The Telegraph, 2018).
10

Task 3
a. Using the 7ps of Marketing, identify and describe Metro Bank’s current marketing
mix providing detailed examples for each of the 7Ps discussed.
Product
The services and the product of the Metro bank used to promote in such a way among the
customer that helps the customer in knowing about the product and services in an exact way.
After that, this is the duty of this bank to provide the exact services and product to the
customers that are promoted to them (Yasanallah & Bidram, 2012).
Place
The promotion of the product and the services of the Metro Bank used to be done on the
internet marketing, social media, mobile applications, etc. These are the forum that attracts a
large number of customers. The promotion through TV commercials is also done by this
organisation to attract a large number of customers.
Promotion
The promotion used to be done by the means of advertising. The integrated Promotional Mix
also used to perform by this bank for attracting the customer. The promotion is done in such a
way that its promotional video used to become viral for this bank (Mohammad, 2015).
Price
The prices of the services that are provided to the customers of this organisation are
economical that also attracts a large number of customer. The reasonable prices are liked by
all the customers of this organisation.
Example – The instant money transfer charges by this bank is also minimal.
People
The Product and the services of the bank used to promote the right people. It means the
person that banking needs with unique features are targeted well by this banking Group.
11

Process
The process that used to follow in promotion by this organisation is easy that helps customers
to better understand the services and products of this organisation as compared to other
banks.
Example – In the marketing, it is made understood to the customer of this organisation that
this bank is having the easy process of transactions which are safe also (Mohammad, 2015).
Physical evidence
The innovation and attraction in the services and the product of this bank attract a large
number of customers for this bank. The features of the services and the products of this bank
also create attraction (Yasanallah & Bidram, 2012).
12

Conclusion
It can be concluded from the assignment that customer needs and wants are analysed well for
the good functioning and better targeting of the customers. The Macroenvironment factors
are also playing an important role in the good operation of the banking functions by the
Metro bank. If the competitor analysis is done in a good way then different strategies can be
made for gaining the competitive advantage by the Metro bank. There are different
competitors of the Metro Bank are present in the United Kingdom. The strategies should be
made by the Metro bank that would help this bank in gaining the high profits, more
customers and more Branches in the United Kingdom. This bank used to implement the 7ps
of marketing that helps in promoting the services and the products by this bank in an effective
manner. In this way, this bank can develop and grow strategically.
13

References
 Amoako, G.K., 2012. Improving customer service in the banking industry-case of
Ghana Commercial Bank (GCB)-Ghana. International Business Research, 5(4),
p.134.
 Brush, T.H., Dangol, R. and O'Brien, J.P., 2012. Customer capabilities, switching
costs, and bank performance. Strategic Management Journal, 33(13), pp.1499-1515.
 Financial Times, 2018. Metro Bank PLC [Online] Financial Times, Available at:
https://markets.ft.com/data/equities/tearsheet/profile?s=MTRO:LSE, [Accessed on:
11, March 2018].
 Golin, J. and Delhaise, P., 2013. The bank credit analysis handbook: a guide for
analysts, bankers and investors. John Wiley & Sons.
 Louzis, D.P., Vouldis, A.T. and Metaxas, V.L., 2012. Macroeconomic and bank-
specific determinants of non-performing loans in Greece: A comparative study of
mortgage, business and consumer loan portfolios. Journal of Banking &
Finance, 36(4), pp.1012-1027.
 Mohammad, H.I., 2015. 7PS marketing mix and retail bank customer satisfaction
in northeast Nigeria. British journal of marketing studies, 3(3), pp.71-88.
 Tan, Y., 2016. Theory of Bank Efficiency and Bank Risk. In Investigating the
Performance of Chinese Banks: Efficiency and Risk Features (pp. 53-77). Palgrave
Macmillan, London.
 The Telegraph, 2018. We don't need challenger banks - there's enough
competition already [Online] The Telegraph, Available at:
https://markets.ft.com/data/equities/tearsheet/profile?s=MTRO:LSE, [Accessed on:
11, March 2018].
 Yasanallah, P. and Bidram, V., 2012. Studying the Status of Marketing Mix (7Ps)
in Consumer Cooperatives at Ilam Province from Members' Perspectives. American
Journal of Industrial and Business Management, 2(4), p.194.
14