Barclays Bank
Barclays Bank is a multinational company that offers both financial and banking services to its clients. The company has its headquarters in U.K, London. It operates in over fifty countries across the globe. It has territories across America, Asia, Europe, and Africa. The company serves over forty eight million customers, and it has assets worth $ 2.33 trillion (Businesswire, 2005). In the year 2010, Barclays Bank was ranked the fourth largest Bank worldwide. The bank is clustered into two; the first business is corporate and Investment and wealth and Investment while the second business is Retail and Business Banking. In the year 2010, Barclays was ranked 22nd in London Stock Exchange with capitalization of 21.8 billion pounds, among all the listed companies (Catton, 2009). Under retail and Business Banking, four units of business can be identified. These include UK Retail and Business Banking, Africa Retail and Business Banking, Europe Retail and Business Banking, and Barclaycard. Barclaycard includes provision for loans and credit card services. This paper looks at Barclays marketing mix (4Ps) in four countries which include America, Britain, Ghana, and Netherlands (Catton 2009).
Main products
Barclays is a global provider of financial services that engages in commercial banking, wealth management, credit cards, management of investment services, and investment banking across the globe. The main products are listed as:
Investment banking, research and global markets
Barclays Bank provides its clients, who include governments, large companies, and institutions, with solutions to their problems. The solutions relate to risk management, financial needs including strategic needs. The investment bank has offices across the globe. The company aims at meeting the client’s needs worldwide.
Personal banking
Barclays has financial expertise, which has enabled it to offer services such as credit cards, mortgage, and insurance loans.
Wealth & Investment Management
Barclays provides private and international banking, brokerage services, wealth planning, investment management, trust services to its clients across the globe.
Corporate and business banking
Barclays gives support to business globally. The company offers services that suit clients’ location, scale, ambitions, including challenges. These services are received by local businesses, as well as multinational organizations.
Marketing mix
Barclays Company uses marketing strategies that are in line with the normal marketing strategies followed by any other corporation. The marketing strategies match the themes of the 4Ps, which include place, promotion, price, and product. For instance, on products, the banks have expanded the use of ATMs, credit cards, and electronic banking. Clients like ATMs because they are very convenient in that they are able to access money any time they want (Bashford, 2002). They do not have to go to the counter to either withdraw or deposit cash. The bank has gone as far as increasing the items by which it finances. Apart from automobiles and other common items such as housing, the bank is now financing goods such refrigerators, stereos, among others (Bashford, 2002). Another part of innovation in product, the credit cards have proven very important because customers do not have to carry money, cheques, or to visit their banks frequently. They are able to purchase and receive goods even when they do not have liquid cash at the moment. This is also product innovation. Still under product, the company ensures that the clients get their monthly income. However, before they receive loans, they must post collaterals for security purposes. The above information shows that the bank has product innovativeness, is market oriented, and strategic thinking.
Barclays uses certain strategies to expand its market. It also aims at meeting customer’s needs. The company targets high income clients, as well as middle income earners. It does not target the poor. Looking at location of the banks, the banks are situated in large cities to target the high and middle income earners. Important to note is that it is only a small percentage of the global population that is based in cities. In fact, over 70% of the population lives either in small towns or in rural areas (Bashford, 2002). This implies that most people have no access to the bank due to its location. In Africa especially, Ghana in this case, the bank has very few clients as compared to other commercial banks. However, in Britain and US, the bank has large customer case because the two countries have rich people with whom the bank targets.
Another reason as to why there is a claim that the bank targets high class people is because the strategies used by the bank do not target the poor. The issue of credit cards, ATM, and financing items such as refrigerators has little to do with the poor who have no access electricity, big supermarkets, and other services requiring Barclay’s services. These same people cannot afford collateral for a loan that the bank requires before granting a loan. They cannot even get the small loans, which they need to finance their small businesses. In promotion strategy, Barclays uses the internet, TV, radio stations, newspapers, magazines, and billboards across the major towns. The above advertising channels are very effective especially when targeting the high class of people.
Focusing on the target market, the company targets high income people, such as business people, foreigners who have come to transact businesses, politicians, and other prominent individuals (Businesswire, 2005). This target market was chosen so as to manage risk exposure of the bank. There is a common belief that the poor are riskier than the rich in terms of meeting financial obligation. This is because they do not have enough sources of money where they can get money to meet financial obligations in case their businesses to not perform as expected. However, there is a misunderstanding that failure to get collateral for a loan means failure to meet financial obligations. It is also possible that the rich become bankrupt, making them unable to repay back loans, mortgages, and other services (Businesswire, 2005). When we look at the products availed by Barclays, among them Investment banking, research and global markets, Wealth & Investment Management, personal banking, and Corporate and business banking, we realize that these are services required by well established business people. This clearly shows the target market.
The poor class does not require the high services offered by Barclays. Some people just want enough to purchase farm items, feed their families, and other little things such as irrigation pumps. This shows that these people need funding as well because they, too, want to make ends meet. They need financial supported for them to be in a position to expand their businesses and to make their customer’s needs, for reliability purposes. Unfortunately, these individuals cannot get access to Barclay’s loans, simply because the banks are situated in large cities, far away from their homes (Catton, 2009). Spending a whole day to visit Barclays Bank if quite futile, and it would meet wasting a whole farming day. To many, this is quite costly. Some people have reported being mistreated while at the bank because of lack of collateral, steady income, as well as guarantors. Poor people fear Barclays bank because they believe that services are offered with corruption. According to them, if you are not known, you will not be served like the other famous and prestigious clients.
The marketing mix of 4ps has been criticized by many people because it is regarded at traditional. The market situations have changed recently following the changes that are taking place in organizations. 4ps strategy is also criticized for being very product oriented. The marketing mix also is an inward looking strategy when it comes to resources and capabilities of an organization as regards production (Catton, 2009). The service industry has undergone several changes following technological advancement, government regulation, service quality requirements, pressure to have increased and improved productivity, globalization, among others. Service industries need to undergo changes following the increased competition, and consumer awareness. Differentiation would be the best strategy to survive competition. Customer service needs to be improved in the service industries. Barclays has established relationship banking whereby it does not seem to attract new customers, but to retain the already existing clients. Barclays views its clients as partners. The bank has, therefore decided to improve product quality and have increased innovation. Barclays also has a communication strategy whereby during marketing the company does not only encourage clients to buy their services. The employees are also targeted as audience by motivating them in order to deliver quality services (Catton, 2009). In Barclays advertisements, employees and clients are used rather than professional models.
Barclays regards people as part of services in the organization. It does not separate client contact employees from the company’s marketing and promotion strategies. Success of any company rests upon its junior staff such as security guards, clerks, among others. These are usually inexperienced and young people who need interpersonal skills so as to succeed. These people ought to be quick, as well as accurate. They need to establish proper relationships with the client because they represent the organization and can influence satisfaction by the customers. They are marketers in their own roles. Barclay ensures that these people are recruited using the recommended recruitment process. They also undergo training where necessary, which improves service quality, as well as organization’s productivity (Bashford, 2009).
Barclays sets and measures service standards. The bank managers understand customer expectations. The management has, therefore, set quality standards including organizational goals. The bank has realized the important role of setting and reviewing standards of a service. This leads to quality performance, which has enabled Barclays to expand. The company further understands the value of their business, customers, and the other involved stakeholders (Bashford, 2009). The company also values customer loyalty and reduced cost of error correction. They also have a good system of handling complaints. By setting quality standards, the company has managed to have continuous improvements.
Barclays is known to have strategies that are effective when it comes to positioning. The company’s marketing team understands how service attributes are received by existing and prospective clients. The market has been segmented and the bank is well positioned since there is establishment of distinctive place in the consumer’s mind that is relative to the organization’s competing services. A well positioned service comes into the customer’s mind whenever it is mentioned. Its image draws into the mind of the customer because it is distinct from other services offered by other competing customers. For instance, the mention of the term Barclaycard brings certain feelings into the mind of clients. They will want to associate with the company, and you will find them explaining more about the service, or the mentioned product (Business wire 2005)
Observed differences
Barclays being a global company has set almost similar marketing strategies of the 4Ps. This is because they offer similar and standardized services. However, in the developed countries, such as America and Britain, the Bank has a large customer base because most people in these countries are rich people who often transact businesses. On the other hand, in Ghana the Bank does not have many clients because it targets the rich, yet the majority of people in Ghana are poor. Over 80% of the population in Ghana cannot afford those services. Barclays bank branches are also situated in large towns where the rich business people can access (Bashford, 2002). In Ghana, many people are poor and do not see the need for Investment banking, research and global markets, Wealth & Investment Management, and Corporate and business banking. In terms of promotion strategies, we realize that developed countries use the internet, television, international radio stations, written advertisements such as magazines, newspapers, and billboards. These advertisement channels are easily accessible to many citizens. However, in Ghana, most people live in the rural areas where they cannot access the internet. They also listen to local radio stations where there is little to do with Barclays activities. Pricing strategy of the bank shows that the bank charges relatively higher prices as compared to other banking companies (Bushford, 2002).
Barclays Global Investors Announces Strategic Move to List iShares (R) Products on the New York Stock Exchange and the Archipelago Exchange. (2005). Business Wire: 1. ABI/INFORM Complete.
Bashford, S. (2002). Barclays boosts top marketing team. Marketing (00253650), 5.
Catton, G. (2009). Barclays to Price Placement for U.K.-Based Davis Service Group. Private Placement Letter (27).43
