Santander Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Santander through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Santander Product Strategy:
Santander is one of the leading financial insitutions and banks. It aims to develop lasting and sustainable relations with the following groups- Individuals with different income levels, Companies in different sectors of activity (irrespective of size) and Public institutions private companies. Some of its marketing mix product strategies are discussed below:
• COMMERCIAL BANKING- offers all financial products and services needed by retail banking customers and SMEs.
• GLOBAL WHOLESALE BANKING: Offers its products and services to large business corporations, public institutions and special customers requiring wholesale products with high value or personalized services.
• SANTANDER ASSET MANAGEMENT - provides investment and savings solutions with a wide array of products including pension plans, portfolios, optional societies and investment funds to meet the different needs of customers.
• SANTANDER PRIVATE BANKING- Provides asset management and financial advice services to high-income customers globally.
• SANTANDER INSURANCE- serves over 17 million customers in 20 countries by providing protection and savings solutions
• SANTANDER CARDS- Offers debit and credit cards in addition to payment capture and processing services for businesses using a global methodology that is enabled by a single technology platform with a standardized risk model and global management and training tools.
• SANTANDER UNIVERSITIES- Manages and coordinates Santander's commitment to higher education and has formed a strategic alliance by signing over 1,115 agreements with universities all over the globe.
The Bank has high market shares in retail and commercial banking in the main countries where it operates. Manages 110 million Santander cards, is present in 16 countries and represents 11% of the Group's gross margin.
Image: Wikimedia
This concludes the product strategy in Santander marketing mix & strategy.
Santander Price/Pricing Strategy:
Below is the pricing strategy in Santander marketing mix strategy:
Santander has different pricing strategies for its different offerings. Creating value propositions according to customers and having a long-term strategy is the best approach to build customer loyalty in the core market.
The objective is to strengthen capital to exploit opportunities for natural development, expanding credit and market share in the Bank's key markets, while easily meeting all new administrative prerequisites. A new dividend policy, with less paid in shares and more in real money, offers shareholders more alluring and sustainable profit.
Read more about Santander
Santander Place & Distribution Strategy:
Following is the distribution strategy in the Santander marketing mix:
Santander has multichannel model where it uses-
i. Commercial networks for local distribution of complete range of products and services marketed and designed by the global business divisions around the world for all types of customers, including both individuals and legal persons.
ii. Digital channels that offer new opportunities to improve customer relationships, facilitate greater availability & proximity and contribute to improving satisfaction and loyalty with the Bank.
Santander Insurance offers segmented insurance through a multi-channel distribution where it focuses on a global business model, on meeting the needs of local commercial networks and those of their customers, with low level of risk and high level of efficiency & service quality.
Santander Promotion & Advertising Strategy:
The promotional and advertising strategy in the Santander marketing mix is as follows:
Santander launched a campaign in 2010 to drive recognition and awareness of the brand post acquisition and rebranding of Abbey National, Alliance & Leicester and Bradford & Bingley which lifted them to 3rd position in terms of unaided awareness. Some of the initiatives are:
• Santander Private Banking provides a specialized service model for higher income customers
• For SMEs it has specific program which combines a strong financial offer with a non-financial solution that helps spur internationalization, connectivity, training, talent attraction, etc. Santander Private Banking provides a specialized service model for higher income customers
• 1st bank to offer secure, global cloud storage to companies and with this it has entered into digital services to combat big digital brands such as Google Wallet, eBay’s PayPal and Apple Pay, who are rapidly encroaching on the bank’s core business of financial services.
• Sponsorship assets like Formula One drivers Jenson Button and Lewis Hamilton and Golfer Rory Mcllroy aids in awareness and recognition.
• Moved call centers back to the UK and added more staff in existing branches to improve service. Santander Select offers differentiated value proposal for high income customers
• Support the internationalization of its customers through Santander Passport, Santander Trade and International Desk.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Santander.
People:
The Santander group has been focussed on providing a conducive work environment to all its employees. The company promotes relaxed working conditions with ample opportunities for growth in career. Also, employee education and overall development are given emphasis. Apart from this, the company also offers benefits like pension, medical facilities etc.
Process:
The banking process at Santander is divided into regions as well as services. Each service requires a different set of procedures and formalities. Services like personal banking and loans are generally completed within the specific region, whereas corporate loans, advisory services etc. are generally carried out through the head offices of each country/region. The company has divided each of its regions into groups to enable faster processes for customer convenience.
Physical Evidence:
The company has introduced the ‘Santander Way’ app for all its mobile banking services. The app is designed to provide complete information and services to all customers. Apart from this, the company has also launched specific apps for various locations, e.g. Santander Brazil, Santander Africa etc. These are designed for specific regions and cater to services used pre-dominantly by customers of these regions. Hence, this completes the marketing mix of Santander.
About Santander:
The Santander Group is a Boston based Spanish banking group with its principal market is in the North-eastern US. Santander operates more than 700 retail banking offices and over 2,000 ATMs employing close to 9,000 people offering an array of financial services and products.
It offers services like retail banking, capital markets, corporate banking, mortgages, credit card, trust and wealth management, cash management and insurance. It maintains an attributable profit of more than 5 billion euros with 65 million euros of market capitalization and has more than $77 billion in assets.
Browse marketing strategy and 4Ps analysis of more brands similar to Santander. The Marketing Mix & Strategy section covers 4Ps and 7Ps of more than 800 brands in 2 categories.
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