QUESTION 1: Theoretical Essay (About 1,000-1,500 words) 20 marks

"The marketing concept philosophy should guide the strategic marketing planning process to
ensure that a concern for customer satisfaction is an integral part of the process and permeates
the entire company". Discuss this statement with particular reference to the various
philosophies of marketing and the components of the strategic marketing planning process.

QUESTION 2: Case Study – First Bank Systems of Minneapolis (About 1,000-1,500words) 20 marks

First Bank Systems (FBS) of Minneapolis engages in three core business areas: retail and community banking, commercial banking, and the trust and investment group. Retail and community banking includes consumer and small business banking, residential mortgage lending, and consumer and corporate credit card and payment systems processing. Commercial banking provides lending, cash management, and other financial services to midsized and large corporate and mortgage banking companies. The trust and investment group includes corporate, personal, and institutional trust services; investment management services; and a
full-service brokerage company. In March 1994, the company's assets exceeded $26 billion. FBS's mission statement says, "We will be one of the top-performing banks, measured in terms of market share and long-term profitability." A major goal is to obtain the leading market share in the markets that FBS serves. This goal is pursued, in part, through acquisition.
FBS's growth strategy seeks to aggressively expand in a number of financial services. For example, Duluth-based St. Louis Bank for Savings — the fifth largest thrift in the state — was acquired by FBS in 1994. The acquisition makes sense because it gives FBS a stronger presence in Duluth and falls in line with the company's strategy of trying to beef up its position in major cities and regional trade centers. When FBS purchases a financial institution, it has determined many strategic, geographic, and logistic reasons why the institution is a good fit. One very important reason is the organization's customers. And retaining l00 percent of the acquired institution's customers is one of the most critical goals during acquisition and integration. Julie Cornelius, vice president of acquisitions integration, says, "We want customers of the acquired organization to be disrupted as little as possible. We want them to have confidence that with the new
organization, they'll receive more value for their banking relationships through new products and services. If we have to take something away, we hope we're adding benefits someplace else."

1. Who are a bank's retail and community customers? What problems do these consumers have with banks? How can a marketing orientation improve the marketing of bank services?
2. In what way can the bank's information system be used to accomplish the integration of new customers?
3. What environmental factors are most likely to influence a bank's operations and its service to its customers? How can a bank obtain information about these factors?