EVALUATION OF RBTT’S MARKETING STRATEGIES
undertake an individual written paper related to a particular
organisation of your choice. This organisation can be one you work for or one you are
familiar with. The overall aim is to evaluate ways in which changes within the global
economy might impact upon marketing strategies and activities.
You will be assessed on your ability to:
A. Within a potential future economic scenario, critically evaluate the company�s
strategies for sustainable competitive advantage, segmentation (including
targeting and positioning) and branding
B. Using the same future economic scenario, critically evaluate the potential impact
of the company�s strategies on customer behaviour
C. Identify and critically assess opportunities for growth within the organisation�s
MACRO environments
D. Make clear links to the marketing theory that underpins your work
E. Write a logical, well-presented and accurately referenced piece of work
The length of the report will be 2,500 words +/- 10%. The word count limit is there to test
your skills of conciseness and focus � keep your work relevant to the subject matter.
RBTT’S MARKETING STRATEGIES 2
Table of Contents
- Introduction……………………………………………………………………………….3
- A Brief Statement of Economic Factors the will Influence RBTT’s Operations…………..4
- Analysis of the Potential Impact of Global Economy Changes on RBTT’s Marketing
Strategies…………………………………………………………………………………..4
a. Competitive advantage…………………………………………………………….5
b. Segmentation, targeting and positioning…………………………………………..6
c. Positioning…………………………………………………………………………7 - Analysis of the Potential Impact of Global Economy Changes on Consumer Behaviour
and Possible Change Trends………………………………………………………………8 - Growth Opportunities in RBTT’s Macro Environment and the Potential Competitive
Advantage…………………………………………………………………………………9 - Conclusion……………………………………………………………………………….11
- References……………………………………………………………………………….12
RBTT’S MARKETING STRATEGIES 3
Introduction
As global economy conditions continue to change rapidly and the international market becomes
highly competitive, organisations ought to embrace appropriate marketing strategies in order to
gain competitive advantage over their competitors. According to Laermer and Simmons (2007)
definition of marketing strategy encompasses both long-term and short-term activities dealing
with the analysis of an organisation’s initial strategic position, evaluation and selection of
marketing approaches that are market-oriented subsequently enabling the organisation goals as
well as its marketing objectives to be achieved (Homburg, Kuester and Krohmer, 2009). This
paper evaluates ways in which global economy changes might impact upon marketing strategies
and activities of RBTT within the Caribbean region. The paper is organised into four main
sections covering the keys features that characterize the marketing strategies and activities
undertaken by RBTT in order to achieve a sustainable competitive edge in the market. First, a
brief summary of economic factors RBTT will operate in are stated. Second, potential impact of
changes with global economy on RBTT’s marketing strategies in terms of competitive
advantage, market segmentation (i.e. targeting and positioning) as well as branding are is
discussed. Third, potential impact of changes with global economy on RBTT’s customer
behaviour and its possible change is also discussed. Fourth, two specific growth opportunities in
the RBTT’s macro environment are identified and a discussion of how they can be exploited to
the bank’s advantage discussed. Finally, the paper concludes by highlighting the importance of
aligning RBTT’s marketing strategies and activities for its advantage.
RBTT’S MARKETING STRATEGIES 4
A Brief Statement of Economic Factors that will Influence RBTT’s Operations
RBTT is among the largest banks in the Caribbean and through its extensive banking network it
offers diverse financial services by providing commercial and personal banking, investment and
corporate banking, wealth management, asset and trust management as well as insurance services
(RBTT, 2015). The bank also serves a wide range of clientele including individuals, small and
medium enterprises, governments as well as multinational and regional corporations (RBTT,
2015). However, the bank operates in a region and economy sector characterised by numerous
economic factors that are likely to vary with changing global economy. This is attributed to the
fact that, economic factors constitute some of the basic elements that influence businesses’
financial matters such as interest rates, taxation, labour, government policy and management
(Aaker, 2008; Shaw, 2012).
As a result, changes in economic factors are often accompanied by variations in interest rates
(i.e. the money charged on loans). Subsequently, there is a direct effect of changes in interest
rates on the total or overall prices to be paid on products by borrowers. This means that interest
rates determine when, and whether, they will influence consumer purchases of homes, furniture,
land, cars, as well as other items likely to be bought on credit. There are usual increases of
interest rates during inflation periods, and inflation is a common phenomenon in the Caribbean
region and is expected to influence RBTT’s marketing strategies in the market (Baker, 2008).
Analysis of Potential Impact of Global Economy Changes on RBTT’s Marketing Strategies
According to Aaker (2008) the thought of loosing competitive advantage over competitors is the
cause of greatest fear the management of any business organisation can fathom. Hence, as
changes within the global economy continue to unfold, businesses devise innovative marketing
RBTT’S MARKETING STRATEGIES 5
strategies and effectively implement them through feasible marketing plans that are excellently
prepared (Baker, 2008). As a result, RBTT’s marketing strategies as well as activities to
implement them will be potentially impacted by changes within the global economy (Homburg
et al., 2009). Thus, the need for RBTT to make the necessary amendments on its marketing
strategies and activities for continued competitive advantage over its competitors in the
Caribbean’s banking sector will be inevitable.
In particular, potential impact of global economy changes on the marketing strategies adopted by
RBTT will be manifested in three critical aspects such as competitive advantage, market
segmentation (through targeting and positioning) as well as branding. Analysis of such potential
impact is discussed as follows:
Competitive advantage
RBTT can leverage of the existing environmental factors to achieve competitive advantage. For
instance, it can monitor its customer behaviour to develop appropriate marketing strategies for
enhanced direct marketing. RBTT can seize available opportunities in the market to achieve a
competitive advantage against its competitors in the banking sector within Caribbean region. For
example, the bank can leverage on banking technologies to implement advanced information
systems for increased operational efficiency and reduction of costs. In addition, RBTT can use
technology to increase its utilisation of the Internet in developing new marketing strategies and
innovative marketing plans including online advertising which is relatively cheap and efficient
(Homburg et al., 2009). Hence, RBTT can innovatively use these banking technologies for its
advantage to expand its customer base which is critical for the bank’s growth. Similarly, RBTT
can innovatively develop new products and services to be in the forefront to satisfy emerging
customer needs and this is an important strategy for the bank to achieve continued customer
RBTT’S MARKETING STRATEGIES 6
loyalty. As a result, RBTT can combine these growth opportunities to improve or diversify
products and services for its advantage (Baker, 2008).
Segmentation, targeting and positioning
Market segmentation is undoubtedly one of the most powerful marketing strategies adopted by
RBTT to ensure that it effectively services its customers in various segments of the market. In
particular, RBTT offers a wide range of product assortment through its services and products
ranging from credit facilities and current as well as saving accounts to automated and transfer
services (RBTT, 2015). Three main services offered by the bank include: accounts (i.e. current
accounts, savings accounts, saving plans, standard savings accounts, insured savings plans, and
term deposits as well as youth savings account); general loans (i.e. study loans, travel/vacation
loans, personal loans, asset purchase loans, mortgages as well as commercial loans); trade
services (i.e. letters of credit, payment guarantees, performance guarantees, documentary
collection, bid bonds as well as standby letters of credit); transfer services (i.e. international and
local transfers, automatic transfers, money gram, pre-authorized automatic payments, as well as
standing orders); card services issuance (master cards, Visa cards, debit cards as well as ATM
cards such as Cirrus/Maestro); automated and electronic banking services including the RBTT
Netbank; insurance (i.e. medical insurance, life insurance, pension insurance as well as car
insurance); and finally personal banking and investment services (i.e. trading and investment
advise). In addition, RBTT’s market segmentation is focused on three market segment such as
mass clients, personal banking and corporate banking. Through these diverse products and
services targeting different market segments to ensure that RBTT serves its varied clientele
(RBTT, 2015).
RBTT’S MARKETING STRATEGIES 7
Positioning is another important aspect of market segmentation and RBTT has embarked on an
ambitious regional expansion strategy which ensures its products and services are closer to
customers. To further its market positioning RBTT has adopted multi-channel approach in
meeting it clients such promotion and advertisements which has enabled the bank to reach a
wider population hence earning them the name Curacao (RBTT, 2015). For further strategic
positioning in the market RBTT use ATM machines across the Caribbean region to enable
people to conveniently deposit and withdraw cash at any time thus taking banking services closer
to people (RBTT, 2015).
Branding
RBTT began its aggressive branding strategy instigated by the changing global economy and
embarked on its expansion program by opening subsidiaries across the Caribbean region now
carrying the brand RBTT (RBTT, 2015). Changes within the global economy have significantly
influenced RBTT’s branding since it entered the Caribbean banking market. For instance, the
marketing influences that have been critical for the bank have prioritised on promoting RBTT’s
brand image in the market. In its branding strategy, the bank embraced the language of the
market by changing its language from English to Dutch and Papiamento and also it continues
with communication strategies that ensure that RBTT is in touch with its customers as a critical
in promoting the bank’s branding strategy (RBTT, 2015). Furthermore, RBTT enhances its
image in an ambitious branding strategy by implementing a new brand as well as logo (image)
through donations (e.g. educational projects) and sponsoring (e.g. Curacao Little League) as
strategies to ensure the bank’s brand is wide spread. RBTT’s sales approach by organising
regular campaigns also significantly contributes to the bank’s branding. In addition, product
RBTT’S MARKETING STRATEGIES 8
innovations which results to development of new products and services play a crucial role in
enhancing RBTT’s branding when customers associated them to the bank.
Analysis of Potential Impact of Global Economy Changes on Customer Behaviour and
Possible Change Trends
A clear and succinct understanding of customer behaviour is the most valuable information any
business should always have in order to be successful (Homburg et al., 2009). This is attributable
to the fact that, across economy sectors customer behaviours tend to change especially on basis
of prevailing changes within the global economy, which necessitates the need to track such
changes through customer surveys to determine the underlying causes and undertake appropriate
corrective measures (Baker, 2008). For instance, changes within global economy are likely to
have potential impact on the behaviour of bank clients in terms of deposits, borrowing and
seeking of other financial services and the trend of the impact may either change for better or
worse depending on prevailing changes within the global economy. As a result, banks in general
need to regularly conduct analysis the behaviour of their clients because this could be
strategically helpful for the bank’s management in predicting or forecasting on whether the
customer is active or non-active (Aaker, 2008). If customer behaviour analysis indicates that a
considerable number of the bank clients are non-active or dormant, this acts as an awakening call
for the bank to take up pro-active action targeted to such customers in order to keep them as
stable and active customers of the bank in future by undertaking the necessary interventions to
ensure they do not switch to competitor bank (The Marketing Donut, 2015).
Considering a foreseen inflation in the global economy, customer behaviour of RBTT’s clients
will be potentially impacted. This is due to the fact that, the increase in interest rates which
accompany inflation caused by changes in global economy reduces deposits and borrowing by
RBTT’S MARKETING STRATEGIES 9
customers as well as declining demand for other financial services attributed to tough economic
conditions during periods of inflation (Shaw, 2012). As a result, in order for RBTT to mitigate
the potential negative impact caused by the accompanying customer behaviour, there is need to
always respond swiftly by developing appropriate incentives such as increasing loan repayment
period, providing free consultancy services on viable investments, and devising targeted
marketing directed to specific customer groups (The Marketing Donut, 2015).
This potential impact of global economy changes on customer behaviour might change
depending on the direction the changes within global economy (Shaw, 2012). For instance, if the
inflation period prolongs, the impact on customer behaviour trend might persist or continue to
change for the worse; whereas if the inflation period ends, the impact on customer behaviour will
definitely change for better. Thus, the management of RBTT within the Caribbean region should
always ensure that the bank conducts regular analysis of customer behaviour with regards to
changes within the global economy to monitor changes in customer behaviour so that when a
negative trend is observed, appropriate marketing strategies are rolled out to mitigate the
negative impact (The Marketing Donut, 2015).
Growth Opportunities in RBTT’s Macro Environment and the Potential Competitive
Advantage
The ability of any business organisation to seize growth opportunities presented by the prevailing
market or economic conditions is critical to achieving sustainable competitive advantage over its
competitors in the market (Shaw, 2012). As a result, the seized growth opportunities catapults the
business to higher heights compared to its competitors subsequently increasing its profits which
eventually enable the business to strengthen its financial muscles. Over the years, RBTT’s
operations in the Caribbean region have undergone tremendous growth and development
RBTT’S MARKETING STRATEGIES 10
financially, technically as well as in terms of human capital as a result of the bank’s ability and
strategies in seeking out and indeed in creating or seizing growth opportunities presented by its
macro environment in the interest of its staff, customers and shareholders (RBTT, 2015).
However, there are numerous growth opportunities identified in RBTT’s macro environment but
only two specific growth opportunities among those identified are to be discussed in this paper
together with how the bank can take advantage of them in order to achieve sustainable
competitive advantage against its competitors in the market. In particular, the two specific
growth opportunities identified are: technological advancements in banking and development
innovative/new products and services to meet growing customer needs.
Over the last few years, the banking sector has experienced tremendous technological
advancements that have revolutionised the traditional way of doing things (Shaw, 2012). Hence,
technological advancements in the banking sector within Caribbean region and world over
present an immense growth opportunity for RBTT in its macro environment. Technology has
over the years undisputedly being the engine of banking sector growth and development. Also,
much of the research carried out on the influence of technology on growth of banks show that
rate at which change occur in technology as well as market competition intensity are without any
doubt the fundamental environmental factors that affect an organisation’s marketing strategies,
functioning and performance. Hence, RBTT can leverage on the existing banking technologies to
improve its operational efficiency, reduce labour costs, develop and launch new marketing
strategies including online presence (Shaw, 2012). These outcomes of embracing banking
technologies provide a growth opportunity for the bank because they can be utilised to increase
the bank’s profitability and increase its customer base. The other growth opportunity for RBTT
in its macro environment is the development of innovative products and services to meet
RBTT’S MARKETING STRATEGIES 11
customer needs including products such as tailor-made VISA cards as well as convenient
payment services.
RBTT can seize these growth opportunities and take advantage of them to achieve a competitive
edge against its competitors in the banking sector within Caribbean region. For example, the
bank can leverage on banking technologies to implement advanced information systems for
increased operational efficiency and reduction of costs. In addition, RBTT can use technology to
increase its utilisation of the Internet in developing new marketing strategies and innovative
marketing plans including online advertising which is relatively cheap and efficient (Homburg et
al., 2009). Hence, RBTT can innovatively use these banking technologies for its advantage to
expand its customer base which is critical for the bank’s growth. Similarly, RBTT can
innovatively develop new products and services to be in the forefront to satisfy emerging
customer needs and this is an important strategy for the bank to achieve continued customer
loyalty. As a result, RBTT can combine these growth opportunities to improve or diversify
products and services for its advantage (Baker, 2008).
Conclusion
In conclusion, the aligning RBTT’s marketing strategies and activities is important in ensuring
that it achieves competitive advantage. For instance, the bank can leverage on the changing
global economy in its market segmentation and branding to attain competitive advantage over its
competitors. Furthermore, RBTT can monitor customer behaviour with regards to changing
global economy and develop appropriate marketing strategies, while at the same time seizing
growth opportunities in its macro environment for its advantage.
RBTT’S MARKETING STRATEGIES 12
Bibliography
Aaker, D. (2008), Strategic Market Management. New York, NY: McGraw-Hill.
Baker, M. (2008), The Strategic Marketing Plan Audit. New York, NY: Prentice Hall.
Homburg, C., Kuester, S. and Krohmer, H. (2009), Marketing Management: a Contemporary
Perspective, 1 st Edition. London: CRC Press.
Laermer, R. and Simmons, M. (2007), Punk Marketing. New York, NY: Harper Collins.
RBTT (2015), Corporate Profile.
