BBVA Compass: Marketing Resource Allocation Harvard Case Solution & Analysis

BBVA Compass: Marketing Resource Allocation Case Solution

Allocation Question #1

What is the role of offline and online advertising in acquiring checking account customers for the bank?

Answer to Question #1

While operating in a saturated industry of this intensity, the organization is heavily dependent upon the level of attraction they have been able to create amongst the customer segment. The management of the organization was agreed upon changing the name of the bank to BBVA Compass and the brand recognition levels and brand awareness significantly dropped due to this change. The name of an organization is the sole identity and a factor for affiliation for the customers. The top management of the organization is aware of the importance and seriousness of the issue and concerns created by the change in the name of the company.

bbva compass case solution

bbva compass case solution

The corporation wants to increase and enhance the level of its brand awareness and it sees efficient and adequate potentials the means of offline advertising. The core role and usage of offline advertising is aimed at increasing and building the brand awareness for improving the consideration among the potential customer segment of the organization. For acquiring the desired level of brand awareness, the company has sufficiently adopted the offline means of advertising like sponsoring popular events and entities like NBA, WNBA and ESPN. The role company expects offline advertising to play is critical and of importance to the company.
Business activities despite the industry they belong to, the core reason for the success or the failure of a company are its customers and at what levels the expectations of the customers are being met by the organization through their offered services or products. Companies pay special attention towards not only sustaining the level of their customer base but also towards increasing their customer base by acquiring and attracting new customer Compasses utilizing the online means of advertising for acquiring new customers. The role of online advertising is to increase the online brand awareness of the company and also opening new checking accounts. Online availability of the company and its primary offering can adequately increase the success ratio of the company as the customer would easily be able to gain access to the required information regarding the company and their needs with respect to the company’s offerings.

Question #2

The 2010, the bank allocated $1.22 million or 21% of the total ad budget to online advertising for acquiring checking account customers (see Tables B and C), while allocating the rest of the budget to offline marketing efforts for this account. However, only 5% of the new checking account customers came from the online channel, while offline branches accounted for 80% of the new checking accounts (page 3). Is the 2010 advertising budget allocation between offline and online media appropriate?

Answer to Question #2

The offline and online advertising both have been adopted by the company. The company has willingly invested in these activities with an expectation of getting support from these two activities in order to increase their organizational performance. For efficiently dividing the resources for allocating them in marketing activities, a budget is prepared by the company is prepared by the company in 2010 which is not appropriate for the growth and performance of the company. The activities and responses gained by the company have depicted the customers’ value free checking services and convenient bank locations more than the availability of the bank over the internet and online support.

The customers are more inclined towards the company’s offerings with the help of marketing activities by the company that are involving offline advertising. Previously, it has been experienced by the company that only a small percentage of their customers came from online services of the organization and a major chunk of the company’s customers came from offline services................

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