Introduction
The choice of the direct marketing strategy for Capital One 360 account is influenced by the finding that ING Direct targets online customers in need of automatic saving plans. In the strategy, “Texsco agency” shall focus on targeting the low-income earning customers within the American banking market. ING Direct chief competitors such as Emigrant Direct and UK-based HSBC have ignored a small market niche in the U.S. their interest rates are significantly higher and have failed to attract depositors from the U.S markets. The customers amount to approximately 3.5 million. Considering the account’s current interest rate of 1.8%, the large number of customers will make it conceivable for ING Direct increase its return by 0.19% through Texsco agency’s improved customer attraction strategies (Pandya, 48). The ignored customers majorly use the online marketing, Direct mail, and Radio advertisements to access and assess banking information. Considering that the consumers are technologically empowered and exposed to digital advertising Medias, “Texsco agency” shall use the channels to trigger an inordinate demand for Capital One 360 saving account; it is aimed at increasing the 360 SA holders by 200, 000.
Positioning and offer
“Texsco agency” shall differentiate 360 SA by using unique catchy colors and trademarks that differentiate it from similar accounts offered by competitors. The 360 SA offers an inordinate opportunity for all customers to save their dollars in an account that offers:
- FDIC insured deposits up to $250,000 thus curbing the risks inherent in online banking
- Savings linked to your current checking
- In inordinate opportunity for savers to join millions of customers saving and living their true digital life
- Fee-free and interests assured
- A sound investment portfolio
- Transportation, Pay-Per-transaction, and/or transfer rates that are 25% off the metro cards
- Reduces the banking costs by 27.50% and most appropriate to low and high income-earners.
- A solution to all the diverging needs, tastes, and preferences of online bankers
- Mobile checks deposits and reduce queuing time.
- Enables consumers to save $10 in every deposit that they make
- Allows 10% reduction in account maintenance and transaction costs to any account holder who successfully introduces a friend or family member to 360 SA (Pandya, 78)
Through using of official, precise, and concise language, “Texsco agency” shall make the distinctive features of 360 SA stand out marvelously and captivatedly. Technical jargons shall be castoff and the information delivered in a timely, effective, and fascinating manner (Krafft, 86). Moreover, “Texsco agency” shall offer $1 incentives for any customers who assist in disbursing the information to their friends. This is aimed at ensuring that existing customers assist in distributing the bulk of information about 360 SA. Moreover, all strategies are targeting the low income-earners who constitute a large part of the targeted market, and consequently a large percentage of 360 SA consumers.
Using online marketing, direct mailing, and radio advertisements will be aired at strategic times to ensure that the targeted consumers are effectively meet. “Texsco agency” will also engage in constant circulation of information regarding the 360 SA on the online marketing, through Radios, and through direct mailing that will directly convince the targeted customers to seek the banking service from ING Direct (Thomas & Matthew, 132).
Media choice and expense analysis
“Texsco agency” shall use radio advertisements, Online Marketing, and direct mailing media to market the product. The costs and returns from the medias are candidly elucidated below.
Considering the large number of Americans who can access the internet, online marketing is expected to reach and win approximately 100000 new customers.
The direct mailing digital marketing strategy is expected to be reliable since it offers customized information (Thomas & Matthew, 148). Most customers are, therefore, likely to heed the contents of the mail. It targets around 1,000 customers who will receive the information and share it with close friends this raising the figure to around 45, 000.
Radio advertisements are expected to reach about 60,000 customers considering the prevalence of radios and the fact that the ads will be aired at strategic times such as before news, football commentaries, and important speeches from dignitary personalities (Thomas & Matthew, 192). This will ensure that a large number of people receive the information. The total cost of using the three Medias is 1,613,224 and within the required budget. Despite being within the required budget, the Medias will help achieve the desired 200,000-customer increase and ING Direct will experience significant returns from the 360 SA.
Creative approach
The mails will be made engaging and attractive by using brown color that people frequently associate it with money. The envelopes shall also bear the logo of ING Direct and the term “360 SA” clearly inscribed on them (Krafft, 192). This will help it easy to mail the mails to the diversified customers while reducing losses resulting from loss of mails since mails that will not meet their destination will be returned to ING Direct.
In online marketing, the banners will be made using a mishmash of colors. Additionally, the banners will be curvy and utilize animation to ensure that they will catch the attention of the targeted network surfers whenever they pop up (Krafft, 102). The banners will also draw a wavy image of ING direct as well as the 360 SA.
Works Cited
Krafft, Manfred. International Direct Marketing: Principles, Best Practices, Marketing Facts. Berlin: Springer, 2007. Print.
Pandya, Sonal S. Trading Spaces: Foreign Direct Investment Regulation, 1970-2000. N.p., 2014. Print.
Thomas, Brian, and Matthew Housden. Direct Marketing in Practice. Oxford: Butterworth-Heinemann, 2002. Print.
