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MARKETING MANAGEMENT
MARKETING AUDIT REPROT
ORGANIZATION: BANK AL HABIB LTD
SUBMITTED BY; GHULAM HUSSAIN
ST-ID; FA09-MB0041
SUBMITTED TO;
MARKETING AUDIT
MR. BABAR WAHAB
M.A.J.U 2
MARKETING AUDIT
ACKNOWLEDGEMENT
I would like to take this opportunity to thank lot of people behind the making of this
report without their support and motivation it was impossible.
First of all I would like to thank my Almighty Allah who showered his blessings on me
due to which I am working and going through lot of experience and learning a lot and I
am quite lucky that where I am working the report is based on that organization.
Secondly I would like to thank my staff members and other staff members from different
departments who held me and cooperated with me to complete the report.
Third and the most important person because of whom I got the opportunity to learn
about my company and making my learning skills more enhance. He is none other than
my teacher Mr.Babar Wahab, one of the lecturers of MBA evening program and teaching
the course of “Marketing Management”. He has guided and taught a lot, when ever we
needed him he was there, even after class he would give his precious time and we used to
discuss regarding the report and he cooperated with patiently and politely.
In these report things which is related to marketing in our company point of view which
is a commercial bank and important aspects has been highlighted such as internal &
external assessment, management function, marketing strategy etc.
Marketing audit was basically conducted on the bases of the format already provided in
the book of marketing & management which we are currently being taught from it by our
teacher. According to the questions given in the book it helped a lot in solving each and
every question which were divided in to parts. Those questions were actually based on
the marketing audit that how it assess and evaluate the entire processes of an organization
which and whether it is being implemented appropriately or not.
It was a very good and learning experience for me, learnt a lot specially came to know the
important aspects of components of marketing audit and will hope to continue my
learning like that in other topics as well in future.
M.A.J.U 3
MARKETING AUDIT
TABLE OF CONTENTS
Contents Page #
Components of Marketing Audit
Part I Marketing Environment 5-14
Macro Environment 5-10
Task Environment 11-14
Part II Marketing Strategy Audit 15-28
Part III Marketing Organization Audit 29-32
Part IV Marketing System Audit 33-50
Part V Marketing Productivity Audit 51-53
Part VI Marketing Functions Audit 54-66
APPENDIC
Glossary 66-68
M.A.J.U 4
MARKETING AUDIT
PART1: MARKETING ENVIORNMENT AUDIT
Macro environment
A. Demographic
What major demographic developments and trends pose opportunities or threats to
this company? What actions has the company taken in response to these
developments and trends?
Ans A. Bank al Habib is a very fast growing commercial bank as every one is aware of
it, BAHL do not only have braches in all over Pakistan but they have setup their office in
foreign country as well such as in Dubai & Bharain.
The problem that we usually face is that as it has been setup in foreign country it is only
limited to the small group of Muslims who are already living there or has migrated,
majority of them are foreigners who prefer other banks rather than BAHL and reputation
of Muslims outside Pakistan is not that good our image has gone down after the 9/11
incident.
Though apart from community and religion differences, BAHL is still working on it by
targeting foreign customers by improving our financial status which is not good outside
Pakistan.
Demographics of Pakistan
Population: 174,578,558 (July 2009)
Growth rate: 1.6%
Birth rate: 31 births/1,000 population (2009)
Death rate: 8 deaths/1,000 population (2009)
Life expectancy: 63.39 years (2009)
Male: 62.4 years (2009)
Female: 64.44 years (2009)
Fertility rate: 3.58 children born/woman (2008)
Infant mortality rate: (infant-mortality)
Age structure:
0-14 years: 36.7% (male 33,037,943/female 31,092,572)
15-64 years: 59.1% (male 53,658,173/female 49,500,786)
65-over: 4.2% (male 3,495,350/female 3,793,734) (2009)
Gender Ratio:
Sex Ratio at birth: 1.00 male(s)/female (2006)
Under 15: 1.06 male(s)/female (2006)
15-64 years: 1.05 male(s)/female (2006)
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MARKETING AUDIT
65-over: 0.82 male(s)/female (2006)
Literacy:
Definition: aged 10 and over and can read and write
• Total population: 57%
• Male: 69%
• Female: 45% (2009 est.)
Educational institutions by kind:
• Primary schools: 156,592
• Middle schools: 320,611
• High schools: 23,964
• Arts & science colleges: 3,213
• Degree colleges: 1,202
• Technical and Vocational Institutions: 3,125
• Universities: 132
Employment by industry:
Percentage of total employment:
• Manufacturing: 13.84%
• Construction: 6.13%
• Electricity, gas, water and sanitary services: 0.66%
• Commerce: 14.67%
• Transport, storage and communication: 5.74%
• Financing, insurance, real estate and business services: 1.10%
• Services: 14.35%
• Activities not adequately described: 0.04%
Religious population in Pakistan:
• Muslims: 175,376,000 (Sunnis are the majority while Shi'as are minority who
make up 5-20%[
• Hindus: 3,200,000 (approx. 1.6%)
• Christians: 2,800,000 (approx. 1.6%)
• Buddhists: 20,000
• Sikhs: 20,000
• Zoroastrian/Parsis: 5,000
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MARKETING AUDIT
Numbers of speakers of larger languages:
Language 2008 Estimate Main areas spoken
Punjabi 44.17% Punjab
Pushto 15.44% Khyber Phaktunkhwa
Sindhi 15.35% Sindh
Seriaki 10.42% South Punjab
Urdu 7.59% Karachi
Balochi 3.59% Balochistan
Others 3.59%
BAHL Division of branches in Pakistan:
The bank has a network of 300 branches.
• Karachi, has around 110 branches in all major/suburbs parts. This includes one
international branch at Export Processing Zone and one Islamic banking branch at
Sharah-e-Faisal, one is at Khyban-e-Jami & one is at Memon Medical Institute.
• Lahore, has around 35 branches in all major/suburbs parts including an Islamic
Banking Branch.
• Multan, has around 12 branches including an Islamic Banking Branch.
• Faisalabad. Has around 8 branches including an Islamic Banking Branch.
• Islamabad, has around 8 branches.
• Hyderabad, has around 8 branches.
• And 50 other cities of Pakistan.
% of the customers in each regions of BAHL;
Cities (Division by areas / districts) % of customers
Karachi 38%
Lahore 20%
Multan 8%
Faisalabad 8%
Islamabad 15%
Hyderabad 5%
Other cities 6%
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MARKETING AUDIT
B. Economic
What major developments in income, prices, saving and credit will affect the
company? What actions has the company been taking in response to these
developments and trends?
Ans B. As major developments in income, prices and credit will affect BAHL
negatively, as financial status is not that good. The major reason is the country
economic un-stability some time prices in the stock market varies a lot, specially the
foreign currency some time it shoots up in the sky and some time it falls all of sudden, as
country is facing lot of recession problem, there is lot of inflation problems, the money
from government is not being utilize in a proper way.
The TFCs: Bank AL Habib has issued three unsecured, subordinated TFCs of PKR
1,350mln (July 2004), PKR 1,500 mln (Feb 2007) and PKR 2,000 mln (June 2009). All
instruments are for a tenor of 8 years with major principal redemption commencing in
July 2011, Aug 2014, and Sep 2016 respectively.
The latest TFC issue in June 2009 was arranged by the bank and was privately placed.
Therefore to over come such problems all the companies and urge government of
Pakistan and foreign economy ministers to improve the economic stability so that
companies can invest and can focus on developing income, prices, savings and credits.
BAHL is very particular about the debts, they don’t offer loans to any customers even to
their staff members to avoid debts this step has been taken to save the money so that it
can invest on other schemes and provide benefits to the customers even when the
economy of country is in crises.
Third Quarter Report 30 September 2010
Note
(Financial Report attached as a separate file with the Marketing audit report, pages cannot
be scanned as there are 38 pages therefore an individual file is attached in a PDF format.)
(Also attached monetary policy statement & market updates of foreign correspondent
banks.)
C. Environmental
What is the outlook for the cost and availability of natural resources and energy
needed by the company? What Concerns have been expressed about the company’s
role in pollution and conservation, and what steps has the company taken?
Ans C. As BAHL is an commercial bank therefore it has no such natural resources nor
taking or producing such products which includes evolve any sort of energy, but the main
concern here can be highlighted could be of pollution, as BAHL branches has been
opened in every area specially to the industrial sector where smoke emits from the factory
causing acidic rain due to the chemical effect, has a major issue of effecting the
customers. Such as our SITE branch it is situated at the place where different types of
M.A.J.U 8
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productive industries have been established. Also take our Saddar & Tariq Road branches
where there are ample of markets due to which people work from day till night cause lots
of pollution such as noise, car’s smoke, etc.
To over come such problem no step has been taken yet, as BAHL policy is to open their
branches in every area to cover each and single customers and reindeer their services to
them in every aspect.
D. Technological
What major changes are occurring in product and process technology? What is the
company’s position in these technologies? What major generic substitutes might
replace this product?
Ans D. Banks in the developed world have been turning to heavy IT investments, which
differentiate their products, provide response times, enhance accessibility and improve
customer satisfaction. Though investing in state-of-the-art host banking solution (Fiserv,
Kapiti, etc) , ATM and POS ( point of sale) networks, visa, MasterCard, and Amex
switches, smart cards, tele banking and now internet banking are common IT investment
in the developed world, it is now that these products and services are gaining faster
acceptance in Pakistan.
Bank Al Habib change their technology in IT sector due to the requirements of the
current time, before this they have the poor technology of the IT and un less skilled
person in that field but at this time they replace it with the heavy installation of the IT
instruments. They hired new skill employed and trained them for the efficient and
effective work.
As BAHL is growing very fast and it covers the vast areas therefore it is also enhancing
in their technology such as of video conferencing where you can connect through all the
branches and can communicate with ease in all over the Pakistan this has been introduced
only to save the cost of traveling, other thing is of internet banking where customers has
been given provision to use internet banking online.
E. Political
What changes in laws and regulations might affect marketing strategy and tactics?
What is happening in the areas of pollution control, equal employment opportunity,
product safety, advertising, price control and so forth that affect marketing
strategy?
Ans E. First of all the laws and regulations which are set up by the government effects in
many different ways, specially in banking sector such as imposing heavy tax duties on
import & export items and making each product so expensive that it hurts the strategic
planning of BAHL.
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MARKETING AUDIT
As far as certain areas are concerned there are many political groups who are divided in
to many small sects of groups which threaten banks to give the business to the selected
customers who are involved in big investment companies and have major contacts.
Also, the declaration that Riba is against the Sharia, is likely to cause tremendous
uncertainty in the banking sector. After this Pakistan’s army totally holds on the
government and push back the economy. Stability under the new regime is also very
important for the economy as a whole. Continuous political changes have disrupted the
policies and objectives as each regime brings with it its own agenda. Organizations need
time to adjust to one regime and then work with it towards economic enhancement. Due
the wrong policies of the government the talibanization also develop in Pakistan and
become the international issue in Pakistan therefore badly affecting the marketing
strategies affecting the major elements including price control, advertising power , safety
of the product and etc.
Especially BAHL is affected by political riots which is caused in the cities and intend to
close the banks and all the working sectors there fore decreasing in revenue and causing
major losses. Even by frequently changes in laws and regulation it effects BAHL,
because there are certain polices which BAHL set up due to taken into consideration the
current situation, but this all goes in vain when government make even a small change.
F. Cultural
What is the public’s attitude toward business and toward the company’s products?
What changes in customer lifestyles and values might affect the company?
Ans F. Cultural problem in BAHL is very common, first impression of the customers that
we put on them is of cultural if we do not understand them, there way of language, style
we would not able to deal with them, it is only possible when customers and BAHL
mentality matches and are of same sect. But usually in BAHL transfers of staff is very
common, staff who is a resident of Karachi and speaks pure Urdu language is transferred
to Lahore branches where there all the people speaks Punjabi, there fore at that moment a
language problem occurs between the staff and customer and even within a staff
members, it becomes very difficult to adjust.
It usually happens when any customers want to open an account so he / she faces problem
due to dialect problem and conflicts occurs. Some times due to such situation customers
do get aggravated and even change their mind to not to open an account in BAHL.
M.A.J.U 10
MARKETING AUDIT
Task Environment
A. Markets
What is happening to market size, growth, geographical distribution and
profits? What are the major market segments?
Ans A. Market size of BAHL is shrinking day by day sue to increase in competition,
even BAHL open its branch in those area where the business is not that much, such as
our branches which are in rural and mountains areas which are Matthanichangan
which is situated in Sawabi and Hingorja, Uch Sharif and many others. Business is
not growing that much therefore no profits.
The major Market segments of BAHL are retail banking, corporate commercial
banking and retail brokerage.
Retail banking consists of retail lending, deposits and banking services to private
individuals and small businesses.
Commercial banking represents provision of banking services including treasury and
international trade related activities.
Retail brokerage activities include the business of equity, money market and foreign
exchange brokerage, equity research and corporate financial advisory and consultancy
services.
B. Customers
What are the customer’s needs and buying processes? How do customers and
prospects rate the company and its competitors on reputation, product quality,
service, sales force and price? How do different customer segments make their
buying decisions?
Ans B. BAHL has focused especially on the needs of the customers that what kind of
customer’s demands and what actually they want. BAHL is quite succeed by
fulfilling their needs and taken into consideration their wants.
BAHL offers special offers to its customers providing accounts such as senior citizen
and young savers by giving 11 & 3.5 % interest respectively. Opening of any kind of
accounts is free, give provision of internet banking and many more.
Different customer make their buying decision on the bases of how quick they get the
service, first come first serve and how they help them by providing different facilities
and its long term benefits.
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MARKETING AUDIT
C. Competitors
Who are the major competitors? What are their objectives, strategies, strengths,
weakness, sizes and market shares? What trends will affect future competition and
substitutes for the company’s products?
Ans C. Different banks are the major competitors such as National banks, Allied Banks,
Bank Al falah, Habib Bank etc.
Some of them are corporate banks which only give importance to the major business
sectors which invest a lot. They target upper level customers and focus on main audience,
there weakness are their limitations that they don’t target low & middle level customers.
And also charges non customers between 25-50 Rupess for the forms. There major
market size is on the import & export forms such as L/C forms.
BAHL can over come such trends only when they know their competitors SWOT and
identify their own SWOT analysis so that they could improve and enhance in their own
SWOT analysis by providing alternative solutions to each process.
Competing Rivalry;
Competing firms;
Bank Al Habib limited is facing a strong competition from other private Pakistani banks
like Metropolitan bank. Soneri bank and Askari Commercial bank. The improved
performance of the nationalized commercial banks (NCBs) is also the threat for the bank
Al Habib. Foreign banks are also competing with the bank for same small medium sized
companies. The bank is overcoming the incentive competition due to its strong reputation
M.A.J.U 12
MARKETING AUDIT
as a renowned financial group in Pakistan and a long history of experience in the banking
sector.
Potential entry of new competitors;
The entry barriers in this market are high. The new banks need permission from SBP so
entry of new banks is restricted. Also the paid up capital requirement is likely to be raised
from Rs.500 million to Rs.1 billion.
Development of substitute products;
The non banking financial institutions including development finance institutions (DFIs),
private sector investment banks (PSIBs), leasing corporations (LCs) and Modarbas are
almost in the same line of business and can be treated to the bank. Other substitutes that
compete include the national saving certificates, the stock market, its supporting industry
and brokerage houses.
Bargaining power of suppliers;
The main suppliers in the banking sectors are depositors. Although the bank is given
higher return then any other bank (12% per annum) to attract the depositors but the low
innovation in the product and also low investment in the marketing sector of the bank
may provide difficulties in coming years.
The regulatory bodies could also be the suppliers as they provide guidelines to the bank
from time to time. These include the State Bank of Pakistan (SBP), The Corporate Law
Authority (CLA), The Ministry of Finance and the religious board.
IX. Bargaining power of customers;
The main customers are small traders and exporters based in Karachi and Lahore,
majority of who deal in textile related commodities. Since the bank is targeting the short-
term trade finance market, the bargaining power of customer is substantial as other banks
within the same sector like Habib bank, Bank Al Falah and Metropolitan are fast catching
up with the Bank Al Habib in providing services to the traders.
Company Profiles & Financials
[http://www.alacrastore.com/search/Bank+Al+Habib+Competitor]
M.A.J.U 13
MARKETING AUDIT
D. Distribution & Dealers
What are the main trade channels for bringing products to customer? What are the
efficiency levels and growth potentials of the different trade channels?
Ans D. As BAHL is a commercial Bank there fore there is no such trade channels.
E. Suppliers
What is the outlook for the availability of key resources used in production? What
rends is occurring among suppliers?
Ans E. There are no such suppliers in BAHL as there is no productivity sector.
F. Facilitators & Marketing Firms
What is the cost and availability outlook for transportation services, warehousing
facilities and financial resources? How effective are the company’s advertising
agencies and marketing research firms?
Ans F. BAHL establishes branches which are their main concept and makes its major
marketing base where it focuses on their performance and prompts services.
G. Publics
Which publics represent particular opportunities or problems for the company?
What steps ahs the company taken to deal effectively with each public?
Ans G. The main source due to which it attracts the public towards BAHL who brings lot
of opportunity and also create problems due to which BAHL becomes more enhance and
learn to tackle such problems and welcome the opportunities which helps them to build
up the good relation with the customer.
As BAHL is not only runs commercial banking process but also involves conventional &
Islamic banking due to which the concept of interest rates & internet banking came in to
the view which causes opportunities for BAHL and also raise some issues over the
system as well.
Training are conducted by BAHL to enhance and make aware to the staff about the
technical concepts which are related to the critical aspects of BAHL so that staff
members would not hesitate while dealing with the customers and explain them with ease
and confident.
M.A.J.U 14
MARKETING AUDIT
PART II: MARKETING STRATEGY AUDIT
A. Business Mission
Is the business mission clearly stated in market-oriented terms? Is it feasible?
Ans A. What ever business mission set up by BAHL, it fulfills in terms of market
oriented in such a way, what ever mission which is stated by BAHL should be
implemented in an appropriate way, if is that so therefore it can be stated in every terms
and aspects. BAHL business missions states “To be a strong and stable financial
institution offering innovative products and services while contributing towards the
national economic and social development.”
Here as you can see in reality BAHL offers products and services to the customer in an
effective way due to which more branches are opening monthly, 30 to 40 branches opens
in a year. In 2010 BAHL established sub branches as well and it is the first bank to
achieve the feat.
Due to the extra ordinary services from BAHL branches are being renovated and are
being extended, more departments are being established. It is only done so that it can be
work more for the betterment of the customer services and products. It is feasible in terms
of customer satisfaction, money save, ATM free of cost, E-statement free of cost etc.
B. Marketing objectives and goals
Are the company and marketing objectives and goals stated clearly enough to guide
marketing planning and performance measurement? Are the marketing objectives
appropriate, given the company’s competitive position, resources and
opportunities?
Ans B. When BAHL states its vision so it means planning ahs already been done at the
beginning of the year. BAHL vision is “to be a quality financial service provider
maintaining the highest standards in banking practices”.
Management of BAHL already states at the beginning of the year the branches which will
be open in a year with their names, addresses etc. What type of schemes will be launched
and what type of advertisement will be placed on banners.
By setting up the objectives and goal for a year ample of customers are attracted and
many vendors comes to BAHL to take the order for the upcoming branches every one
wants their products or equipments to be delivered at our branches.
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MARKETING AUDIT
C. Strategy
Has the management articulated a clear marketing strategy for achieving its
marketing objectives? Is the strategy convincing? Is the strategy appropriate to the
stage of the product life cycle, competitor’s strategies, and the state of the economy?
Is the company using the best basis for market segmentation? Does it have clear
criteria for rating the segments and choosing the best ones? Has it developed
accurate profiles of each target segment? Has the company developed an effective
positioning and marketing mix for each market segment? Are marketing resources
allocated optimally to the major elements of the marketing mix? Are enough
resources or too many resources budgeted to accomplish the marketing objectives?
Ans C. BAHL always state its marketing strategy to achieve the marketing objectives.
BAHL identifies it strength, weakness, opportunities and threats and on the bases of that
it target the particular segments which best fits in their criteria.
BAHL SWOT Analysis Phase
A) Strength:
Attributes of the organization those are helpful to achieving the objective.
Strengths of bank Al Habib are as follows:
➢ATMs at bank Al Habib are secured friendly and easy to access
Younger’s account of the bank Al Habib is good source of promotion for bank Al Habib.
➢Bank Al Habib’s brand name is itself strength
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➢Bank Al Habib provides online as well as physical training for its employees all over
world
➢Bank Al Habib have the more then 230 branches in Pakistan
➢There is a huge variety of products and services
➢They do not consume to much capital on the marketing of their product
➢Less risk in their banking system because they are not easily gives the credit facilities
to the customer
➢Brand name is also the strength of the bank Al Habib.
➢Decent way of dealing with the customers.
➢Rapidly expansion of branches in the different cities of Pakistan.
➢To much focus on the development and the promotion of the employees.
➢Proper online banking system.
➢No too much threat of the political environment.
➢Sufficient liquidity position.
➢Do well socially
➢Current ratio is above 20% of the total deposits
➢Controlling Standards
B) Weaknesses:
Attributes of the organization those are harmful to achieving the objective.
Weaknesses of bank Al habib are as follows:
➢Bank Al Habib is not quick to give loans and cards.
➢Not Easy application is for applying for a credit card
➢No marketing for the promotion of their marketing.
➢They are not high risk taker In business activities but in business the term is used “high
risk high profit, low risk low profit”.
➢Too much poor Self Marketing Department.
➢Low incentives like bonuses overtime pay etc.
C) Opportunities:
External conditions those are helpful to achieving the objective.
Opportunities that Bank Al Habib can avail are as follows:
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MARKETING AUDIT
➢There is a lot of cushion available for Bank Al Habib in terms of expanding its network
of branches up to 272 but all this depends on stability of the Pakistan economic and
political situation
➢The opportunities available for Bank Al Habib are financing to SME’s (Small and
Medium Enterprises) in Pakistan. Bank Al Habib can also look for small account holders
➢Bank Al Habib has an opportunity to merge with some other bank to increase the
number of its branches in Pakistan.
➢Attractive salary packages should be awarded.
➢Marketing department should be started in order to promote the name of Bank Al
Habib.
➢On the job training & coaching sessions can be conducted.
D) Threats:
External conditions which could do damage to the business's performance
Threats that could affect Bank AL Habib in negative way are as follows:
➢Day by day competition is increasing not only of the expansion of the banks but also
due to the launching of the new bank in the market e.g. Barclays.
➢Circumstances of Pakistan are a great threat for the existence of the Bank Al Habib.
➢More and more banks are launching there operations in Pakistan which is increasing
competition for the Bank AL Habib.
➢The conventional banks those having high growth rate and high market share are
always being a threat.
After defining the SWOT analysis of BAHL, now it focus on the product and services
and the only way that BAHL makes their strategy appropriate by taking into
consideration the stages of product life cycle, competitors and the state of economy.
Approach of BAHL towards the product life cycle:
A new product progresses through a sequence of stages from introduction to growth,
maturity, and decline.
For instance BAHL has launched new products such as of cash management which is
developing to provide value added services and solutions is part of our mission statement.
We understand the complex requirements of corporate when it comes to effectively
manage their liquidity/cash flows. Our Cash Management suite of services/products is
geared towards addressing these business and operational complexities with the objective
to streamline a company's receivables and payables.
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With our real-time/online branch network of 272 branches, robust systems and
experienced back office, we can add significant efficiencies in streamlining a company's
cash flows. Our Cash Management systems are capable of generating rich customized
reports/MIS which enables a company to closely monitor its cash cycle and effectively
manage its funds.
Product Life Cycle identifies with BAHL & Highlighted its Marketing Mix Values
[http://www.quickmba.com/marketing/product/lifecycle/]
Introduction Stage
In the introduction stage, the firm seeks to build product awareness and develop a market
for the product. The impact on the marketing mix is as follows:
• Product branding and quality level is established and intellectual property
protection such as patents and trademarks are obtained.
• Pricing may be low penetration pricing to build market share rapidly, or high
skim pricing to recover development costs.
• Distribution is selective until consumers show acceptance of the product.
• Promotion is aimed at innovators and early adopters. Marketing communications
seeks to build product awareness and to educate potential consumers about the
product.
Growth Stage
In the growth stage, the firm seeks to build brand preference and increase market share.
• Product quality is maintained and additional features and support services may
be added.
• Pricing is maintained as the firm enjoys increasing demand with little
competition.
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• Distribution channels are added as demand increases and customers accept the
product.
• Promotion is aimed at a broader audience.
Maturity Stage
At maturity, the strong growth in sales diminishes. Competition may appear with similar
products. The primary objective at this point is to defend market share while maximizing
profit.
• Product features may be enhanced to differentiate the product from that of
competitors.
• Pricing may be lower because of the new competition.
• Distribution becomes more intensive and incentives may be offered to encourage
preference over competing products.
• Promotion emphasizes product differentiation.
Decline Stage
As sales decline, the firm has several options:
• Maintain the product, possibly rejuvenating it by adding new features and finding
new uses.
• Harvest the product - reduce costs and continue to offer it, possibly to a loyal
niche segment.
• Discontinue the product, liquidating remaining inventory or selling it to another
firm that is willing to continue the product.
State of Economy
The Pakistan economy is more controlled economy, then one where market forces reign
supreme. Several key institutions are stated owned. Thus a discussion of the economic
forces that influence the private organization such as bank Al Habib cannot ignore the
substantial role played by the government in determining the state of the economy. The
biggest indicator of the heavy role enjoyed by the government was evidence when
foreign currency accounts (FCA’s) were frozen on the orders of the ministry of finance in
the wake of explosion tests on may 31st 1998.
This and the recent efforts by the state bank to artificially lower the interest rates by
revising the repo rates downwards and encouraging lower bids for T-Bill, highlights the
overwhelming role of the government in the economy. Badla rates are a true indication of
market rates at which financial intuitions are willing to lend but the government, under
M.A.J.U 20
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the dictates of the IMF wants to artificially lower the interest rates so as to provide
investment liquidity within the economy.
General Musharaf tenure
It had putt back the economy of the Pakistan due to the wrong policies of the government
for the economic growth in the Pakistan
Pakistan economy destroyed badly in that 10 to 11 years of the government, and investors
hesitated to invest in the Pakistan, and also the load shading is another factor that effect
the Pakistan economy badly.
This not the end of the story after this Pakistan’ economy face lot of problems like bomb
attacks in Pakistan no electricity and the unstable government, due to this the investor are
not invest in the Pakistan and the existing business men finish their business unit due to
the loss.
Asif Zardari tenure
Economy almost doomed and recession has taken place, every thing for needle to
technology has been increased in prices, many of the banks are terminating employees to
only survive their economy in the environment. Prices of oil, petrol, diesel, vegetables etc
has been gone high and now there is only a survival of the fittest left.
BAHL is very focused on the market segmentation phase where it targets all the
customers who are living in urban or rural areas and then BAHL then uses levels of
segmentation to reach their target audience and try to facilitate in every aspect.
BAHL uses levels of market segments such as
Niche Marketing Segment
It focused on narrowly defined customers. Such as BAHL uses younger savers schemes
and senior citizen where it given provision to open an account by the inertest rate of 11%
to the customers who are above 60, 3 years deposit and profit payable on 6 months basis.
Where as for kids account opened by getting 10% interest rate where they can save their
amount until unless they become 18 years old. Even free ATM card for young savers
aged 16 and above maximum balance up to 500,000 rupees.
Local Marketing Segment
Here BAHL focused the needs and wants of those customers who are in trading areas,
neighbor hoods and individual stores. Such as of introducing the service of tele-banking
M.A.J.U 21
MARKETING AUDIT
where it provides a fully automated telephone banking service that brings banking at your
finger tips, giving you instant access to the information you need. Now you can have
access to your account… without going to the bank… 24 hours a day, 7 days a week, and
365 days a year – absolutely free.
Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local
Remittances) or in Foreign Currencies, (Foreign Remittances) on request of customer.
Various Types of Remittance Facilities are available:
1) Payment Order
2) Demand Draft
3) Mail Transfer
4) Telegraphic Transfer
Individual Marketing Segment
Here it focuses on one to one marketing with the customers by providing with them
customized provision such as BAHL offers online banking where customers enter their
user name and password and after login in gives customers a complete options to transfer
the fund, pay the bills, etc.
Apart from it allow customers to download all kind of forms and also give provision of
selecting which ever city they want to search and branch name appears as shown on next
page.
[bankalhabib.com]
M.A.J.U 22
MARKETING AUDIT
BAHL sets up the criteria for rating the segments and choosing the best ones on the bases
of the size and identifiable of the products which benefit the customers of using it in an
appropriate way. There are two ways that BAHL applies and that is
1) Geographic Segmentation
2) Demographic Segmentation
3) Behavioral segmentation
Geographic Segmentation
BAHL splits the division of market in to different units such as nations, states, regions,
cities, countries which also divide these segments in to urban and rural areas.
BAHL has also targeted those areas where business level is very less but still it manages
to fulfill the customer needs and wants by providing them with ease of opportunities to
use their service any time and in what way they want.
Demographic Segmentation
BAHL divide the market in to groups on the bases of variables such as age, gender,
income, occupation, education, religion, race and other social classes.
BAHL does not treat those customers differently but treat them same and provides their
services according to their situation, because each variables has its own way to
approaching towards the products or services provided by BAHL.
Behavioral Segmentation
BAHL target their customers on the bases of their knowledge of the product and services,
attitude towards it, use of or response. This includes some content of behavioral segment
such as;
• Occasions;
• Benefits;
• User status;
• Usage rate;
Integrated Market Communication;
Any organization is work on the some goals and objectives, and these goals and objective
are depend or based on the some pillars without these pillars the goals are not achieved.
M.A.J.U 23
MARKETING AUDIT
IMC is the most important pillar out of these pillars. IMC is the combination of different
marketing or promotional tools that creates synergy effect inn the market.
Marketer used the IMC for creating the need and wants in the consumers mind. They
have selected the different media for the promotion of their products. They used the
commonly print & electronic media for the promotion of their products.
Electronic media:
Bank AL Habib used the two types of the electronic media in the market to for the target
consumers which are as follows;
• Radio
• Television
Print media:
They are selected the print media more then the other media for the promotion of their
products and they target their segment in the market. They are not used the both the
media electronic and media like other organization. They used print media for the
capturing the higher class and also target the middle class.
BAHL uses limited resources budget to accomplish the marketing objectives and gaining
greater profits from it. Such resource that BAHL uses of opening a separate entity in bank
which is of “Islamic Banking”.
It includes;
• Deposit Schemes;
• Islamic Financing;
• Declaration of Profits;
Deposit Schemes;
Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following
deposit schemes:
• AL Habib Current Accounts
• AL Habib Saving Accounts
• AL Habib Term Deposits
M.A.J.U 24
MARKETING AUDIT
The above deposit schemes are based on the Islamic Shariah principles and have been
approved by our qualified and experienced Shariah Advisor.
a) AL Habib Current Accounts
• It is non-profit earning account with cheque book facility.
• ATM, Debit Card and Online Banking facilities are available.
• Funds will be used for investments and providing finances to trade and industries
on fully Shariah compliant basis.
• Regularly reviewed by qualified and experienced Shariah Advisor.
b) AL Habib Saving Accounts
• Based on Islamic principles of Musharakah / Mudarabah.
• Profits and Losses to be shared as per prescribed rules.
• Profits to be paid every six month in January and July.
• Profit to be calculated on the basis of weightages, to be announced at periodic
intervals.
• ATM, Debit Cards and Online Banking facilities are available.
• Funds will be used for investments and providing finances to trade and industries
on fully Shariah compliant basis.
• Regularly reviewed by our qualified and experienced Shariah Advisor.
c) AL Habib Term Deposits
• Based on Islamic principles of Musharakah / Mudarabah.
• Available in tenures of 3 months, 6 months, 1 year, 3 years and 5 years.
• Profit to be paid periodically or on maturity as per rules.
• Profit to be shared according to a system of weightages, to be announced at
periodic intervals.
• Funds will be used for investments and providing finances to trade and industries
on fully Shariah compliant basis.
• Regularly reviewed by our qualified and experienced Shariah Advisor.
Islamic Finance;
We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are
offered in the following forms:
• Murabaha Finance
• Ijarah Finance (Leasing)
M.A.J.U 25
MARKETING AUDIT
• Diminishing Musharakah Finance
All arrangements / documents relating to above are Shariah compliant and have been
approved by our Shariah Advisor.
a) Murabaha Finance
A contract between the Bank and a Customer under which the Customer first purchases
certain goods/commodities/assets as an Agent of the Bank, and the Bank after taking
possession of the goods/commodities/assets sells it to the same Customer by adding
certain profit margin to its cost.
Murabaha Financing is available for:
• Local purchase of Assets/Commodities/Goods.
• Imports under Letter of Credit/Firm Contract.
• Purchase of raw material for exports.
• Local purchase of raw materials for production of Goods/Assets.
Shariah Compatibility:
• Assets must be Shariah compatible.
• All agreements/documents approved by our qualified and experienced Shariah
Advisor and regular monitoring/checking of Murabaha transactions by the
Shariah Advisor.
Customer’s Guidance:
• Murabaha is always allowed for fresh purchases.
• Goods shall not be used by the Customer before the Murabaha offer and
acceptance are signed.
• Rollover in Murabaha is not allowed. However, fresh purchases can be made
under new Murabaha arrangements.
• Murabaha price once fixed cannot be changed.
• In case of late payment, Customer will have to pay certain amount to charity fund
as per Murabaha Agreement.
b) Ijarah Finance (Leasing)
Ijarah is basically the transfer of usufruct of a fixed/durable asset to another person for an
agreed period, at an agreed consideration. Under Ijarah agreement the asset will be given
to the Customer on rent for the period agreed at the time of contract.
For Vehicles (Commercial/Personal use):
• Ijarah agreement and other document approved by our qualified and experienced
Shariah Advisor.
M.A.J.U 26
MARKETING AUDIT
• Periodical rentals to be fixed according to Customer needs at very competitive
terms.
• Regular monitoring and checking of Ijarah transactions by our Shariah Advisor.
For Machinery & Equipment (Leasing):
Machinery (for small, medium and large industrial units) and office equipment.
• Lease agreements and other documents approved by our qualified and
experienced Shariah Advisor.
• Periodical rentals to be fixed according to Customer needs at very competitive
terms.
• Regular monitoring and checking of Ijarah transaction by our Shariah Advisor.
c) Diminishing Musharakah Finance (For Shirkat-ul-Milk)
Diminishing Musharakah is a form of partnership in which one of the partners’ promises
to buy the equity share of the other partner gradually until the title of the equity share is
completely transferred to him. This transaction starts with the formation of a partnership,
after which buying and selling of the equity takes place between the two partners.
Diminishing Musharakah can be used for plant & machinery, equipment, buildings and
automobile financing.All arrangements / documents relating to above are Shariah
compliant and have been approved by our Shariah Advisor.
Declaration Profit Rates;
Declaration of Profit on various Deposits for the Quarter ended September 30, 2010
Bank AL Habib Limited – Islamic Banking has declared the following Profit Rates:
Products Profit Rates
Saving Deposit (1 – 999,999) 5.04%
Saving Deposit (1,000,000 – 9,999,999) 5.19%
Saving Deposit (10,000,000 – 49,999,999) 5.40%
Saving Deposit (50,000,000 & above) 5.76%
Term Deposit - 1 month 7.50%
M.A.J.U 27
MARKETING AUDIT
Term Deposit - 3 months 8.75%
[bankalhabib.com]
Policy for Distribution of Profit for next three months i.e. from October 1, 2010 –
December 31, 2010.
The Bank is currently offering Term Deposits of various maturities in addition to the
Saving Deposits. The term deposits and saving account, will work under the principle of
Mudarabah.
The Bank will calculate the profit of the deposit pool after every quarter. Profit will be
distributed at the Gross Income level. The Gross Income will be calculated after
deducting costs and expenses directly incurred in deriving that Income.
M.A.J.U 28
MARKETING AUDIT
PART III: MARKETING ORGANIZATION AUDIT
A. Formal Structure
Does the marketing vice president have adequate authority and responsibility for
company activates that affect customer’s satisfaction? Are the marketing activates
optimally structured along functional, product, segment, end user and geographical
lines?
Ans A. There are three types of formal structures which identify the entire heirachy of
BAHL and also identify who is responsible for what and shows the entire flow of
process.
Structure 1.
Board of Directors flow of work
M.A.J.U
CHAIRMAN
CEO & MD
DIRECTOR EXECUTIVE DIRECTOR
COMPANY SECRETARY
29
MARKETING AUDIT
Structure 1I
Management point of view
Branches / Departments
Structure 1II
Geographical Area point of view
M.A.J.U
General
Manager
Deputy
General
Manager
Assistant
General
Manager
Senior Chief
Manager
Senior
Manager
Chief Manager
Assistant
Manager
Officer Grade 1 Officer Grade 1I Sub Officer
General
Manager
CZ/NZ/FZ
Deputy
General
Manager
For CZ
General
Manager
for
NZ / FZ
Deputy
General
Manager
For CZ
Deputy
General
Manager
For CZ
Senior Chief
Manager for
Circular Road
Area Lahore
Assistant
General
Manager for
Gulberg Area
Lahore
Senior Chief /
Area Manager
for Multan
City Areas
Senior Chief /
Area Manager
for Rahim
Khan Area
Senior Chief
Manager for
Gulshan-e-|
Ravi Area
Chief
Manager for
Faisalabad
Area
Senior / Area
Manager for
Sahiwal Area
Chief
Manager for
NZ & FZ
30
MARKETING AUDIT
B. Functional Efficiency
Are there good communication and working relations between marketing and sales?
Is the product management system working effectively? Are product managers able
to plan profits or only sales volume? Are there any groups in marketing that need
more training, motivation, supervision or evaluation?
Ans B. Here BAHL focus on different types of functional level which shows the
relationship among the internal management members.
An organization is an arrangement of the people to accomplish some specific purpose.
Your colleges, university, banks, governments departments are all organizations because
they have three common characteristics.
First; each organization has a distinct purpose. This purpose is typically expressed in
terms of a goal or set of goals that the organization hopes to accomplish.
Second; each organization is composed of people. One person is working alone is not an
Organization and it takes people to perform the work that’s necessary for the organization
to achieve its goals.
Third; all organizations develop some deliberate structure so their members can do their
work.
Purpose of organizing;
➢Divide work to be done into specific jobs and departments in bank Al Habib.
➢Assign tasks and responsibilities associated with individual jobs in bank Al Habib.
➢Coordinates diverse organizational tasks in Bank Al Habib.
➢Establish relationship among individuals, groups and departments in Bank Al Habib.
Types of organization;
I. Tall vs. Flat:
Bank Al Habib is a tall organization.
II.Multinational vs. National:
Bank AL Habib is a multinational organization.
III.Single vs. Branch:
Bank Al Habib is a branched organization.
IV.Mechanistic vs. Organic:
Bank Al Habib is an organic organization.
V.Big vs. small:
Bank AL Habib is a big organization.
M.A.J.U 31
MARKETING AUDIT
As BAHL is growing fast and each and every single day a new product and services are
launched therefore training are conducted, seminars are conducted and motivation among
the members also plays a vital role so that staff members are encouraged and produce
results with more efficiency.
C. Interface Efficiency
Are there any problems between marketing and manufacturing, R & D, purchasing,
finance, accounting and legal that need attention?
Ans C. There is no such problems but some time it happens due to some technical
aspects, especially problems occur when there is a closing or coming of any big occasion.
In such situation, purchasing and finance some times face problems.
Apart from it when ever any upcoming branch is due to open so for the location,
premises, legal department is contacted and some time it happens they are unable to take
approvals from higher authorities or are indulged in court cases as well.
In purchasing department point of view problem arose due to rates which flucate in the
local and foreign markets as well, especially the negotiating part which some times
become a biggest obstacle.
M.A.J.U 32
MARKETING AUDIT
PART IV: MARKETING SYSTEM AUDIT
A. Marketing Information System
Is the marketing intelligence system producing accurate, sufficient and timely
information about market place developments with respect to customers, prospects,
distribution and dealers, competitors, suppliers and various publics? Are company
decision makers asking for enough marketing research and are they using the
results? Is the company employing the best methods for market measurement and
sales forecasting?
Ans A. BAHL is spreading all over the Pakistan thus covering urban areas and rural as
well. It is also internationally acclaimed where it has opened the branches in Bahrain and
Dubai.
Currently BAHL has opened 294 branches and soon will achieve the feat this year of
achieving 300th
branches, therefore to achieve such success there are certain departments
or we can say important core of BAHL which help in do that and they are none other than
‘Marketing Intelligence System”.
To cover all the factors and important aspects, BAHL worked on it by talking to their old
customers, sending their own staff to the markets for survey about the prices of different
products, items etc, and even took help of social media such as their own online web site
where they have given a special provision to customers to lodge their complain regarding
the ATM or can contact them in any aspect via email. BAHL web site is for every one no
need to register as you typed in the URL a home page opens with lots of advertisement
regarding the products, free offers which attracts more people and convince them to be
the member of BAHL or enforce their customers to tell other people so they come and
avail the products or services offers by BAHL
There are certain steps to improve the quality of marketing intelligence system which are
also included in the book. BAHL has considered some of them which are as follows.
• Train & Motivate the sales force to spot and report new developments;
There is no doubt that BAHL works so hard on their sales force, this is a difficult job
to keep a track that how much sales has been increased, it can be monitored on daily
bases, weekly, monthly and very rare on yearly bases as well depending on the sales
collection and utilization of any particular product, if it is in a small span. For those
sales people have to be trained and motivated and for that BAHL also conducts
training not only on sales but other fields as well.
M.A.J.U 33
MARKETING AUDIT
• Motivate distribution, retailers and other intermediaries to pass along important
intelligence;
BAHL provides various financial products and services in Pakistan and the Middle East.
It offers retail banking, corporate commercial banking, and retail brokerage services. The
company’s retail banking products and services comprise the provision of banking and
other financial services, such as current and savings accounts, credit cards, and consumer
banking products to individual customers, small merchants, and small and medium sized
enterprises. Its corporate commercial banking offers treasury and international trade
related activities to large corporate customers, multinational companies, government and
semi government departments, institutions, and small and medium sized enterprises.
• Network Externally;
BAHL focus on its market share and foreign exchange rates and even compare to its
other competitors banks so that it can further improve their products and services and
utilize according to the foreign and exchange rates.
Apart from it, BAHL also makes sure that what type of products they are going to
introduce or making any sort of enhance should not be copied from any other
competitor’s product. It should be legal and ethical, such as products offers by BAHL are
Mahana Munafa, Salana Munafa, Super Bachat are also provided by other banks as well
but BAHL provides and increase of the interest rate in their account while offering and
guarantee them a profitable payable in 6 months duration.
• Purchase information from outside suppliers;
While considering any vendors before making the deal with them, BAHL see their
company profile first and then use their products on sample bases to test whether it will
be suitable for them to use it in future as well and also find out from them that in what
price that they have been supplying to other banks so on the bases of that, negotiations
are taken place and the best quote rates are considered.
Suppliers such as of office supplies, printed stationary, ATM stationary, equipments such
as generators, UPS, CCTV etc. Even we use our suppliers as a our contractors as well in
the construction and designing our branches, suppliers such as Graphic source who
supplies banners and panaflex sign board and other suppliers such as Wood & Design
who supplies wooden furniture are hired as our contractors as well and this all is done by
taking sufficient information about them and from them regarding the prices they are
charging to design our branch, if it is feasible so we hire them.
M.A.J.U 34
MARKETING AUDIT
Marketing Research System
Marketing Research Process Diagram
Define the Problem, the decision alternatives and the research objectives
As BAHL is growing very fast, it faces number of problems which need to be identify
instantly, BAHL is a vast commercial bank which in incorporates corporate banking,
Islamic banking, conventional banking system as well due to which it faces various
problems.
M.A.J.U
De
fin
e
the
Pr
obl
em
Develop the
research plan
Collect the information
Analyze the information
Present the findings
Make the decision
35
MARKETING AUDIT
First of all BAHL focus is to identify and approach towards the problem, such as BAHL
usually faces problem regarding the customer side that they are not able to make an ATM
transaction, when ever any customer insert their ATM card so it get stuck, some times it
do not show proper amount, if shows the amount but some time does not give amount
physically correct. It personally happened with staff members as well the amount which
is being withdrawal is half.
Then approach towards the problem is the next phase where alternative decisions are
made if the problem is not resolve in first attempt. For instance if we take the above ATM
case so in such situation vendor is contacted and then they come and check whether it
need service or maintenance if it happens like that then it has to be shut for hours so that
work is done with ease, if incase some major problem occurred then it can take two to
three days, which can be a big loss to the concerned bank, then backup is provided by the
vendor in urgent cases or if any parts has to be replaced then estimation has to be taken
form different vendors, so it takes lot of decision in solving any particular problem.
Develop the Research plan;
Here BAHL use technique of collecting data from its internal record to research any plan
BAHL uses both primary and secondary sources so that it could know that how it can be
further elaborated its products and sources on the bases of the customers needs and
wants.
BAHL usually prefer secondary data to carry out research plan, as being a commercial
bank it has to cut down some cost, it believe more in saving rather than utilizing in a
costly way there fore BAHL goes for the past records. If incase BAHL do not have any
required data or data is not appropriate or any thing which leads to a collection of new
data in that case BAHL usually avoids and for that it adopts some research approaches
such as which are mentioned in the books most of the time.
Observational Research / Behavioral Data;
In this case BAHL not only observe their customers but also monitors their own staff
people that how they are handling the customers. When BAHL introduces any offers
regarding their products or services and when customers try to avail it, so BAHL see their
behavior of approaching towards the products such as BAHL providing senior citizen or
young savers scheme so first of all they would see whether they are interested in opening
their account if yes so how they are being benefited and if not then what could be the
drawback.
CCTV cameras are placed every where in the bank especially at cash counters and hall
area where number of people gathers to deposit their pay slips and other activities, in that
case staff members are being monitored as well that how they are handling their
customers. Even the concept of mystery shopping implements in BAHL, where
management sent their own people in the banks to open the account as a customer. Such
M.A.J.U 36
MARKETING AUDIT
as if there is a new General manger is appointed or deputy general manger so they are
sent to the banks as an customer to see whether the things are being carried out positively
from both the entities.
Focus group Research;
BAHL conducts ample of meeting to decide regarding their products and services
whether how, what and when it will be implement in an appropriate way. Meeting is
conducted by senior management with their customers and even seminars are conducted
by our customers where they invite us and discuss the things and also show why they are
interested in doing business with or bank.
Survey Research;
BAHL only emphasis on the market prices, it only focus on the people benefits, as
economy of Pakistan is not that good and recession has taken place so in such perspective
BAHL usually surveys those area where middle class and poor people lives and
according their needs they design the product.
Sampling Plan;
As already mentioned in above survey research section that AHL only focus on low and
middle category people. They only want their customer should be benefited maximum.
BAHL uses sampling unit where they survey those areas where business is impossible
such as in Punjab site or Multan or Sindh districts or areas such as Swabi, Muzzafar garh,
Uch Sahirf, Qasba Gujrat, Kotla Arab Khan, Gadap, West what, Memon Medical Hosital,
Malir cities and etc.
It also includes sample size and sampling procedure, it especially focus on those things
where if any customer is out of city or is very far away from the home and want so in that
case they collect the data and according to that design the services and reindeer that
products which could reach such customers.
In BAHL point of view after defining two steps of research plan other process such as
• Collect the information
• Analyze the information
• Present the findings
• Making the decision
Are implemented in a very ease and a criteria is set up according to which we retain,
eliminate or add more findings to enhance the products and services for BAHL.
Marketing Measurement & Sales Forecasting;
BAHL is successful up till now is because of its strong forecasting and measurement
towards the sales and marketing respectively.
M.A.J.U 37
MARKETING AUDIT
Below show the diagram of BAHL forecasting price, dividends & earning, that how it
varies within a year.
[http://wrightreports.ecnext.com/coms2/reportdesc_PRICE_C58669570
]
Bank AL Habib Limited Key Data:
Ticker: BAHL Country: PAKISTAN
Exchanges: KAR Major Industry: Financial
Sub Industry: Commercial Banks
2009 Sales
23,915,876,000
(Year Ending Jan 2010).
Employees: 3,667
Currency: Pakistan Rupees Market Cap: 23,429,257,600
Fiscal Yr Ends: December Shares Outstanding: 732,164,300
Share Type: Ordinary Closely Held Shares: N/A
Stock Data: Recent Stock Performance:
Current Price (10/29/2010): 32.00 1 Week -0.6% 13 Weeks 2.9%
4 Weeks -2.3% 52 Weeks 20.0%
Currency Rates: Pakistani Rupee 11/4/2010
11/4/2010 11/3/2010
U.S. Dollar / Pakistani Rupee 0.0117 0.0117
Pakistani Rupee / U.S. Dollar 85.7633 85.6898
Exchange Rate of the Pakistani Rupee versus other key currencies:
Currency Per Pakistani Rupee To Pakistani Rupee
M.A.J.U 38
MARKETING AUDIT
Argentine Peso 0.0461 21.6741
Australian Dollar 0.0116 86.2813
Bahraini Dinar 0.0044 227.4889
Bermudan Dollar 0.0117 85.7633
Brazilian Real 0.0197 50.7479
British Pound 0.0072 138.1055
Buglarian New Lev 0.0161 62.0129
Canadian Dollar 0.0117 85.3362
Chilean Peso 5.7157 0.1750
Chinese Renminbi 0.0779 12.8448
Colombian Peso 21.4338 0.0467
Czech Koruna 0.2017 4.9588
Danish Krone 0.0615 16.2710
Egyptian Pound 0.0674 14.8431
European Euro 0.0082 121.3062
Filipino Peso 0.4955 2.0180
Hong Kong Dollar 0.0904 11.0652
Hungarian Forint 2,242.3077 0.0004
Icelandic Krona 1.2743 0.7847
Indian Rupee 0.5627 1.7770
Indonesian Rupiah 104.1071 0.0096
Israeli Shekel 0.0420 23.8362
Jamaican Dollar 0.9915 1.0086
Japanese Yen 0.9449 1.0583
Jordanian Dinar 0.0083 120.9640
Korean Won 12.9268 0.0774
M.A.J.U 39
MARKETING AUDIT
Kuwaiti Dinar 0.0033 306.2976
Malaysian Ringgit
Financial Statements for BANK AL HABIB LTD (BAHL)
Year over year, Bank Al Habib has been able to grow their bottom line from 2.4B to 2.9B
despite falling revenues.
View Income Statement In U.S. Dollar
Currency in
Millions of Pakistan
Rupees
As of: Dec 31
2006
Restated
PKR
Dec 31
2007
Restated
PKR
Dec 31
2008
Reclassified
PKR
Dec 31
2009
PKR
4-Year
Trend
TOTAL REVENUES 5,172.4 6,263.6 7,907.8
9,826.
9
Cost of Goods Sold 94.7 125.6 191.0 231.8
GROSS PROFIT 5,077.7 6,137.9 7,716.8
9,595.
1
Selling General & Admin Expenses,
Total
2,371.3 3,088.9 4,109.6
4,871.
5
EBT, EXCLUDING UNUSUAL
ITEMS
2,706.4 3,048.6 3,533.4
4,561.
4
EBT, INCLUDING UNUSUAL
ITEMS
2,706.4 3,048.6 3,533.4
4,561.
4
Income Tax Expense 933.7 846.0 1,166.8
1,652.
9
Minority Interest in Earnings -1.1 -5.8 3.5 -5.3
Earnings from Continuing Operations 1,771.6 2,196.8 2,370.1
2,903.
2
NET INCOME 1,771.6 2,196.8 2,370.1
2,903.
2
NET INCOME TO COMMON
INCLUDING EXTRA ITEMS
1,771.6 2,196.8 2,370.1
2,903.
2
NET INCOME TO COMMON
EXCLUDING EXTRA ITEMS
1,771.6 2,196.8 2,370.1
2,903.
2
[http://www.evri.com/organization/bank-al-habib-0x74419]
M.A.J.U 40
MARKETING AUDIT
Stock Charts for BAHL
[http://wrightreports.ecnext.com/coms2/reportdesc_PRICE_C58669570]
LAST 32.00 PKR
CHANGE TODAY +0.33 1.04%
VOLUME 177.5K
As of 7:40 AM 11/5/10 All times are local (Market data is delayed by at least 15
minutes).
M.A.J.U 41
MARKETING AUDIT
B. Marketing Planning System
Is the marketing planning system well conceived and effectively used? Do marketers
have decision support systems available? Does the planning system result in
acceptable sales targets and quotas?
Ans B. BAHL has focused its planning system in a very efficient and effective
way.BAHL planning system has been defined as
• Defining organization goals and objectives.
• Establishing overall strategies for achieving those goals.
• Developing a comprehensive set of plans to integrate and coordinate organization
work.
Types of planning:
Bank Al Habib us e both formal and informal types of planning;
Informal;
In informal planning, their planning is not written down, short term focus and specific to
an organizational unit.
Formal;
In formal planning, their planning is written down, specific, long term focus and involves
shared goals for the organization.
Goals and objective BAHL planning system;
✔Financial strength and profitability by making profitable advances.
✔Customer satisfaction by providing higher quality of services at an affordable cost.
✔Growth by expending branch network and deposit base.
Short term objective;
♦Profitability
Long term objective;
♦Profitability
♦To optimize the use of resource
Process of planning:
Mission:
To be a strong and stable financial institution offering innovative products and services
while contributing towards the National economic and social development”.
Strategies:
Strategies of bank Al Habib are giving loans and accepting deposits.
M.A.J.U 42
MARKETING AUDIT
Types of strategies used by bank Al Habib;
• Cost leadership strategy,
• Differentiation strategy,
• Focused Strategy,
Plans:
Plans of bank Al Habib are short-term and long-term advances & deposits.
Programs:
Programs of bank Al Habib are up to one year or more then one year advances, fixed
accounts, and etc.
Policies:
Policies of the bank Al Habib are profitability, by making profitable advances and
customer’s satisfaction by providing best services at an affordable cost.
Rules:
The rules are define the upper level management according to situation.
Budget:
Bank Al Habib always met its budget.
C. Marketing Control System
Are the control procedures adequate to ensure that the annual plan objectives are
being achieved? Does management periodically analyze the profitability of products,
markets, territories and channels of distribution? Are marketing costs and
productivity periodically examined?
Ans C. BAHL policy of marketing control system has a very broaden view, before
getting control over the marketing aspect of BAHL it is very necessary to analysis the
leadership system which control the marketing system and that what exactly BAHL has
done and followed up till now.
Traits & skills of Leader:
The leaders of bank Al Habib have the following Traits & Skills in themselves.
➢Decision making
➢Risk taking and risk bearing
➢Stress taking & stress bearing
➢Communication power
M.A.J.U 43
MARKETING AUDIT
➢Motivation power
➢Honesty
➢Strong vision
➢Interpersonal skills
➢Market forecasting skill
➢Consistency
➢Step forward
➢Discipline
➢Competitive skills
Types of leader:
There are three basic types of leaders;
➢Dictator
➢Democratic
➢Laissez-fair
Democratic leader:
The leaders, Bank Al Habib have, are the types of “Democratic. Because the major
portion of the bank is “decentralized”, that’s why the each leader has the complete power
of decision making, but they are working “collaboratively” in whole organization with
each other. All leaders of bank are involved in decision making, delegating their
authorities to their higher qualified employees, encouraged the participation of their
employees in work and gives them opportunities of coaching in involved in decision
making, delegating their authorities to their higher qualified employees, encouraged the
participation of their employees in work and gives them opportunities of coaching in well
manners.
Motivation:
Motivation is the very important skill of the leader, without the motivation skill the leader
does not work effectively in the organization. Motivation of the employees to done the
certain task and achieve the organization goals is too much important in the organization
for its operations. Motivation is the duty of the leader toward his subordinate to do for the
certain task to accomplish the organization goals.
M.A.J.U 44
MARKETING AUDIT
After defined the leadership phase now it defines its marketing control system.
Control:
Control is the process of monitoring activities to ensure that they are being accomplished
as planned and of correcting any significant deviation.
Importance of control;
Control is very much important because it is the final link in the management functions.
It is the only way mangers know whether organizational goals are being met and, it not,
the reasons why. The value of control function lies in its relation to planning,
empowering employees, and protecting work place.
In Bank Al Habib the importance of control can not be neglected because it’s a service
base organization and deals with finance. Every employee in this organization has
directed of indirect interaction with financial activities and finance play the key role in
the progress of the bank. That’s why there is significance importance of a good control
over all the activities in the bank for progressing on the right path.
Process of control:
A three-step process including measuring actual performance, comparing actual
performance against a standard and taking managerial action to correct deviation or
inadequate standards.
I. Measuring actual performance:
To determine what actual performance is managers must acquire the information about
the actual performance of the workers who are working in the organization and overall
performance of the organization.
In Bank Al Habib managers get prepared statistical and financial reports about the
employees and progress of the bank to see that where organization is going. In statistical
reports there is all mentioned about the progress of employees that which employee have
achieve how much targets at the end of the month which were given by there bosses.
II. Comparing actual performance with standards:
The comparing performance determines the degree of variation between actual
performance and the standard performance.
Standards;
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MARKETING AUDIT
In Bank Al Habib following standards are set to compare actual performance!
General standard;
➢Compliance with law
➢Reasonable assurance and safeguards
➢Integrity, competence, and positive attitude
Specific standards;
➢Internal control system and all transaction and significant events must be clearly
documented, and the documentation readily available for examination.
➢Transaction and other significant events are to be without delay recorded and properly
classified.
➢Transactions and other significant events are to be authorized and executed only by
authorized persons.
➢Key duties and responsibilities in authorized and executed only by authorized persons.
➢Qualified and continued supervision is to be provided to ensure that internal control
objectives are achieved.
➢Access to resources and records is to be limited to authorized individuals and
accountability for custody and use of resources is assigned and maintained.
➢Managers are to; evaluate promptly findings and recommendations reported by
reviewers.
Determine proper actions in response to findings and recommendations, and complete,
within established time frames, all actions that correct or otherwise resolve the matters
brought to management’s attention.
III.Taking correct actions:
Corrective action in the organization corrects problem at once to get performance back on
track. Management of Bank Al Habib revise the results from the comparison of the actual
performance with the standards and then takes the corrective actions to solve that
particular problem to ensure the achievement of targets in the organizations.
Marketing cost and productively periodically examined on the bases of sales produced by
the implementing of the products or services produced by BAHL. Such as on the bases of
online internet banking and ATM transactions BAHL analysis their marketing cost and
productivity.
M.A.J.U 46
MARKETING AUDIT
Some months back the transactions which were made through the ATM of BAHL have
been categorized in to three major phases. This below data is been recorded in a month of
Feb where the most of the branches has recorded top ranking in their ATM.
Top Performing BAHL ATMS- FEB 2010
Highest up time;
Branches %
Memon Goth 99.72
Khyban-e-Ittehad 99.69
Korangi Road 99.60
DHA Phase II 99.51
Most Transactions;
Branches Transactions
UP More 8021
Gulshan-e-Hadeed 8090
Malir Halt 7868
Soldier Bazar 7503
Model Colony 6811
Most Cash Dispensed;
Branches Cash Dispensed
UP More 45,036,500
Gulshan-e-Hadeed 45,661,000
Malir Halt 38,792,000
Soldier Bazar 38,714,000
Model Colony 34,683,000
D. New Product Development System
Is the company well organized to gather, generate and screen new product ideas?
Does the company adequate concept research and business analysis before investing
in new ideas? Does the company carry out adequate product and market testing
before launching new products?
Ans D. BAHL focused on organizing phase very well due to which BAHL new product
development usually hits the aisle nationally and internationally, once your bank is
organized every thing goes very smoothly.
First; each organization has a distinct purpose. This purpose is typically expressed in
terms of a goal or set of goals that the organization hopes to accomplish.
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MARKETING AUDIT
Second; each organization is composed of people. One person is working alone is not an
organization and it takes people to perform the work that’s necessary for the organization
to achieve its goals
Third; all organizations develop some deliberate structure so their members can do their
work.
Purpose of organizing in BAHL perspective
➢Divide work to be done into specific jobs and departments in bank Al Habib.
➢Assign tasks and responsibilities associated with individual jobs in bank Al Habib.
➢Coordinates diverse organizational tasks in Bank Al Habib.
➢Establish relationship among individuals, groups and departments in Bank Al Habib.
Types of organization which suits BAHL
I. Tall vs. Flat:
Bank Al Habib is a tall organization.
II.Multinational vs. National:
Bank AL Habib is a multinational organization.
III.Single vs. Branch:
Bank Al Habib is a branched organization.
IV.Mechanistic vs. Organic:
Bank Al Habib is an organic organization.
V.Big vs. small:
Bank AL Habib is a big organization
BAHL has focused on some new products developments which has become a success in
all over the Pakistan
The unique feature of the new PLS monthly saver account is payment of profit on a
monthly basis. Profit will be computed every month and paid on the first working day of
the following month.
The account can be opened by any individual single or joint whether salaried, self
employed, retired, house wife o minor. Customer may open an account by visiting their
nearest branch and completing the account opening form designed for this product and
submitting it with all supporting documents.
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MARKETING AUDIT
BAHL deposit products includes Salana Munafa, Mahana Munafa, Senior Citizen, Young
citizen, Super Bachat etc along with T-call accounts and TDR which are developed to
cater the banking needs of corporate clients and high net worth individuals.
Another new product recently launched by BAHL is shown below;
SALIENT FEATURES OF PRODUCT
[bankalhabib.com]
Launched from October 28, 2010
• Three year Savings Certificate with six monthly payments of profits
• The account can be opened by any;
i. Individual (single or joint) like salaried person, self employed etc
ii. Register Partnership concern
iii. Public & Private Company
iv. Registered trust
v. Government Body etc.
• Minimum Amount required to invest in the certificate is Rs. 25,000
• Profit will be automatically credited to the customer account.
• On maturity of the deal customer may opt for automatic roll over at prevailing
rate
• Profit rate is 12.25% per annum payable after completion of every six month
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MARKETING AUDIT
• In case the certificate is encashed before completion of first six months no profit
will be paid and no penalty recovered
• If the certificate is en-cashed in the period between the seventh month and any
date till the date of maturity a penalty of only 2% will be charged and no profit
will be paid for that six monthly periods.
• Free ATM / Debit Card available
• 90% financing against deposit is available.
.
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MARKETING AUDIT
PART V: MARKETING PRODUCTIVITY AUDIT
A. Profitability Analysis
What is the profitability of the company’s different products, markets, territories
and channels of distribution? Should the company enter, expand contract or
withdraw from any business segments?
Ans A. BAHL has established themselves only for to provide benefits to their customers
and not only expand themselves in all over Pakistan but also has cover those areas and
districts where people usually avoid going due to the isolated place but still manages to
create an impact.
Recently BAHL has proven them selves when the major cities were affected by the
floods, branch situated in Shikarpur which was the major hit by the floods controlled the
situation in such as way that it created its name more. Just see below at the picture;
BAHL should only enter, expand the business segments in an effective way. For BAHL
to withdraw from any kind of business segments can be a big loss, not only to the banks
M.A.J.U 51
MARKETING AUDIT
but it can effect the reputation of the customers as well which can create a negative
impact on them and force them not to buy or has any sort of relationship with BAHL.
BAHL has also introduced BCP plan which is Business Contingency Plan where a
backup of all the departments which are situated at main head office and are centralized
has been set up at our Khyban-e-Ittehad branch so that in case of any emergency or riots
if taken place or not abel to reach to the place so we can just go to Khyban-e-Itteahd
branches and can continuing to do our work.
BAHL also become popular by providing facilities in phone banking of T-PIN, with the
help of T-PINs customer may access their accounts, ATM card and credit card
information and services from the automated integrated voice recording system available
by calling the call center at 111 014 014.
BAHL also enhance one of its products by another value added service for customer’s
alerts on large cash withdrawals. It is very important to register the current mobile
member with the bank to receive the SMS alerts.
Apart from t BAHL also provided their customers with another value added service
which is of cash management
To provide value added services and solutions is part of our mission statement. We
understand the complex requirements of corporate when it comes to effectively manage
their liquidity/cash flows. Our Cash Management suite of services/products is geared
towards addressing these business and operational complexities with the objective to
streamline a company's receivables and payables.
With our real-time/online branch network of 263 branches, robust systems and
experienced back office, we can add significant efficiencies in streamlining a company's
cash flows. Our Cash Management systems are capable of generating rich customized
reports/MIS which enables a company to closely monitor its cash cycle and effectively
manage its funds.
For more information on how we can assist you, please contact your Relationship
Manager or contact our Cash Management Unit at 021-2270529 or 021-2277063.
BAHL has expanded in the business segment by introducing the concept of Sub
Branches. Such as Hassan Center sub branch of Gulsahn-e-Iqbal, Defence Market sub
branch of Korangi branch, Ghulam Muhammadabad sub branch of Jinnah Colony
Faisalabad any more. This concept has been introduced this year and up till now 22 sub
branches ahs been opened and two more to come.
These Sub branches are not allowed to open any customer account it may provide
information to prospective customers and advise them with regard to the bank’s various
products. When a customer wishes to open an account the sub branch will answers all
preliminary questions of the prospective customer of the controlling branch and inform
him/her about all products available in the bank. In all cases, how ever the controlling
M.A.J.U 52
MARKETING AUDIT
branch will perform the KYC and CDD functions of all accounts referred to them by the
sub branch.
B. Cost effectiveness Analysis
Do any marketing activities seem to have excessive costs? Can cost-reducing steps be
taken?
Ans B. Here in such cash a business equation is used which is R= P-C, where R stands
for revenue, P stands for profit and C stands for cost.
Yes, as mentioned in previous auditing sections that BAHL is widely used all over the
Pakistan and has introduced ample of products and services and provided with all the
features and benefits for that cost has incurred a lot. Such as cost of advertising, this is of
printed media, radio, television on internet etc, campaign cost, banners cost, all the assets
which is utilized in the bank at the time of opening such as furniture’s, generator, UPS,
location place even, rent if has taken from some one and many more.
BAHL uses marketing mix model to eliminate cost but it has no effect though, BAHL
tires but the investment is of over millions of rupees, each year purchasing is of 80 to 90
million which is lot of cost and main aim of BAHL is to provide and facilitate customers
by introducing more braches and enhancing he products by adding some value to it
therefore resulting in cost.
BAHL now days trying to eliminate their cost by renovating the branches and shifting the
premises to another which results in less cost as compare to open a new branch. By
renovating the branch or shifting cot really reduces for instance recently two Islamic
banking branches opened at Khyban-eBukahri and Memon Goth. First floor people
shifted to the second floor and new people came at first follow where Islamic banking
department has been opened at the both branches, nothing was required as they were
using branch equipments only some cabling had to be done and fire extinguisher had to
be placed for security measure and some wooden and steel furniture were required.
Even another activity taken place where ATM at DA creek club has already been situated
only 1 camera, 1 fire extinguisher and 1 tom Ac with 1 2 Kva Ups had to be installed
other facilities are provided by club, this is how BAHL use techniques to utilize the thing
in such a way where cost comes less and profit which is generated more than the cost is
utilized which comes in the form of revenue.
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MARKETING AUDIT
PART VI: MARKETING FUNCTIONS AUDIT
A. Products
What are the company’s product-line objectives? Are they sound? Is the current
product line meeting the objectives? Should the product line be stretched or
contracted upward, downward or both ways? Which products should be phased
out? Which products should be added? What are buyer’s knowledge and attitudes
toward the company’s and competitors’ product quality features styling, brand
names and so on? What areas of product and brand strategy need improvement?
Ans A. It refers to goods and services you offer to your customers. Apart from the
physical product itself, there are elements associated with your product that customers
may be attracted to. Bank Al Habib has the various products which are given below in
detail.
Product:
Consumer banking
Services
Investment
Islamic Banking
Commercial banking
Home remittances
Consumer banking
Auto loan
Bank Al Habib APNI CAR- the car financing facility which gives you complete peace of
mind through convenient repayment plans
M.A.J.U 54
MARKETING AUDIT
Home Loan & Home Buying
Decent homes are difficult to purchase in today’s ever changing world of real estate
prices. Safe and comfortable shelter is the prime necessity for each individual. So let
bank Al Habib with its home finance solution provide you with the means of buying,
constructing your ideal home.
Home buying;
Realize your dream with the Bank AL Habib Home Buying facility where you can own
your personal property. This scheme offers you to buy & own your dream home
Home Construction & Home Improvement
Bank AL Habib will help you as our eligible customer to build the house of your dreams!
Eligibility Criteria
Pakistani National
- Salaried or Self Employed
- Minimum 23 to Maximum 60 Years Old
- Minimum Net Salary Rupees 20,000/=
M.A.J.U 55
MARKETING AUDIT
Services
Online banking, ATM Cards & Debit Cards
Bank AL Habib offers Online Banking Facility to its account holders at branches all over
Pakistan. Cash may be accepted at a branch for crediting accounts at another branch;
Cheques can be paid by a branch by debiting the customer’s account at another branch.
Now your Bank AL Habib ATM Card is not just an ATM Card It’s much more
Bank AL Habib is a founder member bank of 1 Link, the largest shared ATM network
countrywide, giving you 24-hour access to your account from any ATMs. This network
will keep on expanding to give you unmatched and most convenient services.
Welcome to Cashless Transactions
In keeping with Bank AL Habib's tradition of bringing you the quality services, we now
move one step further, to add more convenience to your banking. Your Bank AL Habib
ATM Card. can also work as a Debit Card at thousands of outlets and shops all over
Pakistan, displaying the ORIX Network logo for a maximum of 25000/= per day.
Tele Banking & Electronic Fund Transfer
Round the Clock Banking;
Anywhere Anytime Bank AL Habib, customer convenience comes first. After
successfully launching FREE ATM Cards and Online Banking. We now introduce yet
another facility for all our customers.
AL Habib TeleBanking Service is a fully automated telephone banking service that
brings banking at your finger tips, giving you instant access to the information you need.
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MARKETING AUDIT
Now you can have access to your account… without going to the bank… 24 hours a day,
7 days a week, 365 days a year – absolutely free!
The InterBank and IntraBank Funds Transfer “IBFT” is an electronic funds transfer
“EFT” facility added to the list of our existing ATM Card services. It is an automated
solution for bank to bank funds transfers who enable 1Link ATM Cardholders to avail
real time funds transfer facility from their account to any other account in Bank AL
Habib (BAHL) or to any 3rd Party Account in BAHL or participating 1Link Switch
Member Bank’s customer account using their bank’s ATM.
Remittance, Life Insurance & Cash Management
Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local
Remittances) or in Foreign Currencies, (Foreign Remittances) on request of customer.
It gives us great pleasure to inform our valued customers that Bank AL Habib has
arranged "Absolutely Free" Insurance Cover to our existing saving accountholders
To provide value added services and solutions is part of our mission statement. We
understand the complex requirements of corporate when it comes to effectively manage
their liquidity/cash flows. Our Cash Management suite of services/products is geared
towards addressing these business and operational complexities with the objective to
streamline a company's receivables and payables.
M.A.J.U 57
MARKETING AUDIT
Investment
Young Saver Account
Young Pakistanis, Bank AL Habib has designed a new account specially for you,
your own Young Savers Account
Features;
➢This is an account for Young Savers of up to 18 years.
Visit the nearest Bank AL Habib branch with your parent/guardian to open your
Young Savers Account. You can open an account with as little as Rs.5/ =
➢Rate of return on Young Savers Account is expected to be well above the return on
normal savings accounts. Currently indicative rate of return on balances up to Rs.
500,000 is 10% P.A and for balances over Rs. 500,000 is 5% P.A, payable six monthly.
➢Young Savers Account will have Internet Banking facility and ATM Debit Card
available to your parent/guardian
➢Young Savers of 16 years and more will also be eligible to receive ATM Cards and
can withdraw money through ATMs, if specifically authorized by their
parents/guardians (certain conditions apply).
➢Until you the Young Savers are a minor, i.e., below 18 years, the account will be
operated by your parent/guardian. When you attain majority, the balance in the account
will be transferred to a new account which you will open and operate after completing
required formalities, including the concurrence of your parent/guardian.
➢Bank officers will also visit your school to help you open Young Savers Account and
collect your deposit.
M.A.J.U 58
MARKETING AUDIT
PLs saving account and monthly profit plan;
Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings
Account and Monthly Profit Plan.
Features of PLs saving account:
➢Profit is paid out to your Account on six-monthly basis.
➢There is NO Minimum Balance requirement for PLS Savings Account.
➢The indicative Return Payable on "PLS Savings Account" deposits with effect from
July 01, 2008 is 5.00 % per annum.
➢Free Life and Disability Insurance cover for accountholders.
Monthly profit plan:
➢This plan adds to the earning ability of your PLS Savings Account with Bank AL
Habib.
➢Your profit is paid out / credited every month to your Account instead of six-monthly
as in case of PLS Savings Account.
➢NO Special forms or applications, NO Minimum Balance requirement.
➢The indicative Return Payable on "Monthly Profit Plan" deposits with effect from
July 01, 2008 is 5.00 % per annum.
➢Free Life and Disability Insurance cover for account holders
3. Treasurer’s call;
Corporate societies, trusts and even individuals have large funds which are generally idle.
Such funds can be put to. This plan is open to Current Deposited Account. Access to such
funds requires only a 24 hour notice. Profit is calculated on a daily product basis and
credited to your Account monthly. The applicable rates for the Treasurer's Call Deposited
Account, effective January 1, 2005 are: work to earn handsome profits via the AL Habib
Treasurer's Account.
Super saving account;
Bank AL Habib has introduced Super Saving account to meet your needs
Features of Super Saving Account.
M.A.J.U 59
MARKETING AUDIT
➢Profit is paid to your account on a quarterly basis.
➢Minimum Deposit in the Account must be 500,000 or above
Senior Citizen Account
High Returns Reliable and Convenient;
In case of a joint account the Senior Citizen will be the primary account holder and other
joint
account holders must be between 18 and 60 years of age.
•
Profit will be paid on the first working day of the next month
•
Up to 90% financing allowed against deposit..
•
The indicative return payable on "Senior Citizen's Account" deposit effective November
01,
2008 is 11% per annum.
•
Free ATM Card.
•
Profit may be drawn through Cheque or ATM from any branch of Bank AL Habib.
•
Profit is subject to Zakat, Withholding Tax and other Government Levies unless
exempted.
Islamic Banking
Deposit Scheme
Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following
deposit schemes:
•
AL Habib Current Accounts
M.A.J.U 60
MARKETING AUDIT
•
AL Habib Saving Accounts
•
AL Habib Term Deposits
Islamic Finance & Declaration of profit
We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are
offered in
the following forms:
•
Murabaha Finance
•
Ijarah Finance (Leasing)
•
Diminishing Musharakah Finance
Declaration of Profit on various Deposits for the Quarter ended March 31, 2009
Commercial banking:
We offer a full range of banking services which include:
✔Current and deposit accounts for corporate and individual clients.
✔Foreign currency accounts.
✔Finance through loans, and other credit facilities to the corporate, private and public
sectors.
✔Short term finance of foreign trade through Letters of Credit and negotiation of Bills
of Exchange.
✔Issuance of Guarantees, Bid Bonds, Performance Bonds etc.
✔Acceptance and placement of funds in the inter-bank market.
✔Purchase and sale of foreign currencies.
✔Trade information and research.
M.A.J.U 61
MARKETING AUDIT
✔Remittances and transfer of funds.
✔Sui Gas Bills Collection on Direct Debit basis.
✔MCB Rupee Traveler cheque.
Home Remittance
Bank AL Habib Limited will encourage all remitters to open account for the beneficiaries
in Pakistan at any BAHL branch to avail following services absolutely free of charge:
• No minimum balance required to open and maintain a Savings account
• Same day value for remittances received before 1300 Hrs PST for deposit in the
remitter/ beneficiary’s BAHL account.
• ATM/Debit Card accepted at over 6000 merchants and 2000 ATMs across
Pakistan.
• Free Life Insurance cover for up to PKR 1 million, subject to prevailing terms and
conditions for PKR Savings account holders.
• Issuance of Pay Order or Demand Draft.
• Direct Debit and Standing Instructions for frequent payments from accounts
• Competitive exchange rates for FCY transactions or transfer from US$ account to
PKR account.
• Net Banking for round the clock internet banking services from any where at any
time for balance inquiry, statement of account and funds transfer etc.
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MARKETING AUDIT
• 24X7 Call Center and Tele Banking services.
B. Price
What is the company’s pricing objectives policies, strategies and procedures? O
what extent are prices set on cost, demand and competitive criteria? Do the
customers see the company prices as being in line with the value of its offer? What
does management know about the price elasticity of demand, experience curve
effects and competitor’s prices and pricing policies? To what extent are price polices
compatible with the needs of distributors and dealers, suppliers and government
regulation?
Ans B. Pricing includes;
• Profits rate for quarter ending;
• Treasurer’s call:
• Super Saving Account.
• Growth certificates:
• Her mah munafa imdani main izaffa:
• Home remittance
[bankalhabib.com]
M.A.J.U 63
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[bankalhabib.com]
M.A.J.U 64
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[bankalhabib.com]
C. Distribution / Place
What are the company’s distribution objectives and strategies? Is there adequate
market coverage and service? How effective are distributors, dealers, manufactures
representatives, brokers, agents and others? Should the company consider changing
its distribution channels?
Ans C. The placement strategies of the bank Al Habib is very effective and strong. They
have over 230 branches in the major cities of the Pakistan. The products and services are
provided to the consumers at the branches.
D. Marketing Communications
What are the organizations advertising objectives? Are they sound? Is the right
amount being spent on advertising? Are the ad themes and copy effective? What do
customers and the public think about the advertising? Are the advertising media
well chosen? Is the internal advertising staff adequate? Is the sales promotion
budget adequate? Is there effective and sufficient use of sales promotion tools such
as samples, coupons, displays and sales contests? Is the public relations staff
competent and creative? Is the company making enough use of direct, online and
database marketing?
Ans D. It is the last p of the marketing mix. And the some marketers say that the most
important part of the marketing mix is promotion. Organizations are very care full about
the promotion of their products in the market; adopt the promotional strategies for the
effective promotion of their products.
M.A.J.U 65
MARKETING AUDIT
Bank Al Habib uses the different strategies for the promotion of their products according
to the environment of the market for capturing the most of the customers in the market.
They used strategies such as;
• Sales promotion
• Introducing innovative product
E. Sales Force
What are the forces objectives? Is the sales force large enough to accomplish the
company’s objectives? Is the sales force organized along the proper principles pf
specialization territory, market, and product? Are there enough or too many sales
managers to guide the field sales representatives? Do the sales compensation level
and structure provide adequate incentive and reward? Does the sales force show
high morale, ability and effort? Are the procedures adequate for setting quotas and
evaluating performance? How does the company’s sales force compare to
competitors sales forces?
Ans E. A comprehensive Sales & Margin summary analysis for Bank AL Habib
Limited Tabular results include up to a ten-year history on Sales, EBITDA (Earnings
before Interest, Taxes, Depreciation and Amortization), Income before Extraordinary
Items and number of Employees. Additional ratios are included for sales growth, earnings
and income as a percent of sales and Sales per Employee.
The Bank operates in three segments: retail banking, corporate commercial banking and
retail brokerage. Retail banking consists of retail lending, deposits and banking services
to private individuals and small businesses. Commercial banking represents provision of
banking services including treasury and international trade related activities. Retail
brokerage activities include the business of equity, money market and foreign exchange
brokerage, equity research and corporate financial advisory and consultancy services. The
Bank's subsidiaries include AL Habib Financial Services Limited and AL Habib Capital
Markets (Private) Limited.
[http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_C58669570]
M.A.J.U 66
MARKETING AUDIT
GLOSSARY
A
Accessible (a town accessible by rail", available)
Accomplish; to gain with effort
Assurance (authority); Freedom from doubt; belief in yourself and your abilities
Assessment (judgment, he classification of someone or something with respect to its
worth)
B
Bidding; An authoritative direction or instruction to do something
Bearing; Relevant relation or interconnection
Brokerage firms; A stock broker's business; charges a fee to act as intermediary between
buyer and Seller
C
Corporate (corporate rates"; "corporate structure")
Compliance ; (Acting according to certain accepted standards)
Conventional (conventional wisdom"; "she had strayed from the path of conventional
behavior";
"conventional forms of address")
Commodities; good, trade goods, Articles of commerce
D
Deliberate; Carefully thought out in advance
Dictator; A ruler who is unconstrained by law
Democratic; Belong to or relating to the Democratic Party
Disability (The condition of being unable to perform as a consequence of physical or
mental unfitness)
Distinct; (often followed by 'from') not alike; different in nature or qualit
E
Engaged; Having ones attention or mind or energy engaged
Empowering ; Give or delegate power or authority to
G
Guardian (A person who cares for persons or property)
M.A.J.U 67
MARKETING AUDIT
I
Inadequate (poor, short, unequal)
Incentives (A positive motivational influence)
Integrate; Make into a whole or make part of a whole
Incorporated; Formed or united into a whole
L
Levies (charge imposed and collected)
O
Origin; The place where something begins, where it springs into being
Optimize; make optimal; get the most out of; use best
R
Regime (The organization that is the governing authority of a political unit)
Renovate ( repair restore fix up)
Remittances (A payment of money sent to a person in another place)
Readily (promptly, quick)
S
Subsequent (subsequent developments)
Strategies; An elaborate and systematic plan of action
Simultaneously; At the same instant
Subsidiary; Functioning in a supporting capacity
V
Venture (speculation); Proceed somewhere despite the risk of possible dangers
Readily (promptly, quick
M.A.J.U 68

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Report_Markt_Audit

  • 1. MARKETING MANAGEMENT MARKETING AUDIT REPROT ORGANIZATION: BANK AL HABIB LTD SUBMITTED BY; GHULAM HUSSAIN ST-ID; FA09-MB0041 SUBMITTED TO;
  • 2. MARKETING AUDIT MR. BABAR WAHAB M.A.J.U 2
  • 3. MARKETING AUDIT ACKNOWLEDGEMENT I would like to take this opportunity to thank lot of people behind the making of this report without their support and motivation it was impossible. First of all I would like to thank my Almighty Allah who showered his blessings on me due to which I am working and going through lot of experience and learning a lot and I am quite lucky that where I am working the report is based on that organization. Secondly I would like to thank my staff members and other staff members from different departments who held me and cooperated with me to complete the report. Third and the most important person because of whom I got the opportunity to learn about my company and making my learning skills more enhance. He is none other than my teacher Mr.Babar Wahab, one of the lecturers of MBA evening program and teaching the course of “Marketing Management”. He has guided and taught a lot, when ever we needed him he was there, even after class he would give his precious time and we used to discuss regarding the report and he cooperated with patiently and politely. In these report things which is related to marketing in our company point of view which is a commercial bank and important aspects has been highlighted such as internal & external assessment, management function, marketing strategy etc. Marketing audit was basically conducted on the bases of the format already provided in the book of marketing & management which we are currently being taught from it by our teacher. According to the questions given in the book it helped a lot in solving each and every question which were divided in to parts. Those questions were actually based on the marketing audit that how it assess and evaluate the entire processes of an organization which and whether it is being implemented appropriately or not. It was a very good and learning experience for me, learnt a lot specially came to know the important aspects of components of marketing audit and will hope to continue my learning like that in other topics as well in future. M.A.J.U 3
  • 4. MARKETING AUDIT TABLE OF CONTENTS Contents Page # Components of Marketing Audit Part I Marketing Environment 5-14 Macro Environment 5-10 Task Environment 11-14 Part II Marketing Strategy Audit 15-28 Part III Marketing Organization Audit 29-32 Part IV Marketing System Audit 33-50 Part V Marketing Productivity Audit 51-53 Part VI Marketing Functions Audit 54-66 APPENDIC Glossary 66-68 M.A.J.U 4
  • 5. MARKETING AUDIT PART1: MARKETING ENVIORNMENT AUDIT Macro environment A. Demographic What major demographic developments and trends pose opportunities or threats to this company? What actions has the company taken in response to these developments and trends? Ans A. Bank al Habib is a very fast growing commercial bank as every one is aware of it, BAHL do not only have braches in all over Pakistan but they have setup their office in foreign country as well such as in Dubai & Bharain. The problem that we usually face is that as it has been setup in foreign country it is only limited to the small group of Muslims who are already living there or has migrated, majority of them are foreigners who prefer other banks rather than BAHL and reputation of Muslims outside Pakistan is not that good our image has gone down after the 9/11 incident. Though apart from community and religion differences, BAHL is still working on it by targeting foreign customers by improving our financial status which is not good outside Pakistan. Demographics of Pakistan Population: 174,578,558 (July 2009) Growth rate: 1.6% Birth rate: 31 births/1,000 population (2009) Death rate: 8 deaths/1,000 population (2009) Life expectancy: 63.39 years (2009) Male: 62.4 years (2009) Female: 64.44 years (2009) Fertility rate: 3.58 children born/woman (2008) Infant mortality rate: (infant-mortality) Age structure: 0-14 years: 36.7% (male 33,037,943/female 31,092,572) 15-64 years: 59.1% (male 53,658,173/female 49,500,786) 65-over: 4.2% (male 3,495,350/female 3,793,734) (2009) Gender Ratio: Sex Ratio at birth: 1.00 male(s)/female (2006) Under 15: 1.06 male(s)/female (2006) 15-64 years: 1.05 male(s)/female (2006) M.A.J.U 5
  • 6. MARKETING AUDIT 65-over: 0.82 male(s)/female (2006) Literacy: Definition: aged 10 and over and can read and write • Total population: 57% • Male: 69% • Female: 45% (2009 est.) Educational institutions by kind: • Primary schools: 156,592 • Middle schools: 320,611 • High schools: 23,964 • Arts & science colleges: 3,213 • Degree colleges: 1,202 • Technical and Vocational Institutions: 3,125 • Universities: 132 Employment by industry: Percentage of total employment: • Manufacturing: 13.84% • Construction: 6.13% • Electricity, gas, water and sanitary services: 0.66% • Commerce: 14.67% • Transport, storage and communication: 5.74% • Financing, insurance, real estate and business services: 1.10% • Services: 14.35% • Activities not adequately described: 0.04% Religious population in Pakistan: • Muslims: 175,376,000 (Sunnis are the majority while Shi'as are minority who make up 5-20%[ • Hindus: 3,200,000 (approx. 1.6%) • Christians: 2,800,000 (approx. 1.6%) • Buddhists: 20,000 • Sikhs: 20,000 • Zoroastrian/Parsis: 5,000 M.A.J.U 6
  • 7. MARKETING AUDIT Numbers of speakers of larger languages: Language 2008 Estimate Main areas spoken Punjabi 44.17% Punjab Pushto 15.44% Khyber Phaktunkhwa Sindhi 15.35% Sindh Seriaki 10.42% South Punjab Urdu 7.59% Karachi Balochi 3.59% Balochistan Others 3.59% BAHL Division of branches in Pakistan: The bank has a network of 300 branches. • Karachi, has around 110 branches in all major/suburbs parts. This includes one international branch at Export Processing Zone and one Islamic banking branch at Sharah-e-Faisal, one is at Khyban-e-Jami & one is at Memon Medical Institute. • Lahore, has around 35 branches in all major/suburbs parts including an Islamic Banking Branch. • Multan, has around 12 branches including an Islamic Banking Branch. • Faisalabad. Has around 8 branches including an Islamic Banking Branch. • Islamabad, has around 8 branches. • Hyderabad, has around 8 branches. • And 50 other cities of Pakistan. % of the customers in each regions of BAHL; Cities (Division by areas / districts) % of customers Karachi 38% Lahore 20% Multan 8% Faisalabad 8% Islamabad 15% Hyderabad 5% Other cities 6% M.A.J.U 7
  • 8. MARKETING AUDIT B. Economic What major developments in income, prices, saving and credit will affect the company? What actions has the company been taking in response to these developments and trends? Ans B. As major developments in income, prices and credit will affect BAHL negatively, as financial status is not that good. The major reason is the country economic un-stability some time prices in the stock market varies a lot, specially the foreign currency some time it shoots up in the sky and some time it falls all of sudden, as country is facing lot of recession problem, there is lot of inflation problems, the money from government is not being utilize in a proper way. The TFCs: Bank AL Habib has issued three unsecured, subordinated TFCs of PKR 1,350mln (July 2004), PKR 1,500 mln (Feb 2007) and PKR 2,000 mln (June 2009). All instruments are for a tenor of 8 years with major principal redemption commencing in July 2011, Aug 2014, and Sep 2016 respectively. The latest TFC issue in June 2009 was arranged by the bank and was privately placed. Therefore to over come such problems all the companies and urge government of Pakistan and foreign economy ministers to improve the economic stability so that companies can invest and can focus on developing income, prices, savings and credits. BAHL is very particular about the debts, they don’t offer loans to any customers even to their staff members to avoid debts this step has been taken to save the money so that it can invest on other schemes and provide benefits to the customers even when the economy of country is in crises. Third Quarter Report 30 September 2010 Note (Financial Report attached as a separate file with the Marketing audit report, pages cannot be scanned as there are 38 pages therefore an individual file is attached in a PDF format.) (Also attached monetary policy statement & market updates of foreign correspondent banks.) C. Environmental What is the outlook for the cost and availability of natural resources and energy needed by the company? What Concerns have been expressed about the company’s role in pollution and conservation, and what steps has the company taken? Ans C. As BAHL is an commercial bank therefore it has no such natural resources nor taking or producing such products which includes evolve any sort of energy, but the main concern here can be highlighted could be of pollution, as BAHL branches has been opened in every area specially to the industrial sector where smoke emits from the factory causing acidic rain due to the chemical effect, has a major issue of effecting the customers. Such as our SITE branch it is situated at the place where different types of M.A.J.U 8
  • 9. MARKETING AUDIT productive industries have been established. Also take our Saddar & Tariq Road branches where there are ample of markets due to which people work from day till night cause lots of pollution such as noise, car’s smoke, etc. To over come such problem no step has been taken yet, as BAHL policy is to open their branches in every area to cover each and single customers and reindeer their services to them in every aspect. D. Technological What major changes are occurring in product and process technology? What is the company’s position in these technologies? What major generic substitutes might replace this product? Ans D. Banks in the developed world have been turning to heavy IT investments, which differentiate their products, provide response times, enhance accessibility and improve customer satisfaction. Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) , ATM and POS ( point of sale) networks, visa, MasterCard, and Amex switches, smart cards, tele banking and now internet banking are common IT investment in the developed world, it is now that these products and services are gaining faster acceptance in Pakistan. Bank Al Habib change their technology in IT sector due to the requirements of the current time, before this they have the poor technology of the IT and un less skilled person in that field but at this time they replace it with the heavy installation of the IT instruments. They hired new skill employed and trained them for the efficient and effective work. As BAHL is growing very fast and it covers the vast areas therefore it is also enhancing in their technology such as of video conferencing where you can connect through all the branches and can communicate with ease in all over the Pakistan this has been introduced only to save the cost of traveling, other thing is of internet banking where customers has been given provision to use internet banking online. E. Political What changes in laws and regulations might affect marketing strategy and tactics? What is happening in the areas of pollution control, equal employment opportunity, product safety, advertising, price control and so forth that affect marketing strategy? Ans E. First of all the laws and regulations which are set up by the government effects in many different ways, specially in banking sector such as imposing heavy tax duties on import & export items and making each product so expensive that it hurts the strategic planning of BAHL. M.A.J.U 9
  • 10. MARKETING AUDIT As far as certain areas are concerned there are many political groups who are divided in to many small sects of groups which threaten banks to give the business to the selected customers who are involved in big investment companies and have major contacts. Also, the declaration that Riba is against the Sharia, is likely to cause tremendous uncertainty in the banking sector. After this Pakistan’s army totally holds on the government and push back the economy. Stability under the new regime is also very important for the economy as a whole. Continuous political changes have disrupted the policies and objectives as each regime brings with it its own agenda. Organizations need time to adjust to one regime and then work with it towards economic enhancement. Due the wrong policies of the government the talibanization also develop in Pakistan and become the international issue in Pakistan therefore badly affecting the marketing strategies affecting the major elements including price control, advertising power , safety of the product and etc. Especially BAHL is affected by political riots which is caused in the cities and intend to close the banks and all the working sectors there fore decreasing in revenue and causing major losses. Even by frequently changes in laws and regulation it effects BAHL, because there are certain polices which BAHL set up due to taken into consideration the current situation, but this all goes in vain when government make even a small change. F. Cultural What is the public’s attitude toward business and toward the company’s products? What changes in customer lifestyles and values might affect the company? Ans F. Cultural problem in BAHL is very common, first impression of the customers that we put on them is of cultural if we do not understand them, there way of language, style we would not able to deal with them, it is only possible when customers and BAHL mentality matches and are of same sect. But usually in BAHL transfers of staff is very common, staff who is a resident of Karachi and speaks pure Urdu language is transferred to Lahore branches where there all the people speaks Punjabi, there fore at that moment a language problem occurs between the staff and customer and even within a staff members, it becomes very difficult to adjust. It usually happens when any customers want to open an account so he / she faces problem due to dialect problem and conflicts occurs. Some times due to such situation customers do get aggravated and even change their mind to not to open an account in BAHL. M.A.J.U 10
  • 11. MARKETING AUDIT Task Environment A. Markets What is happening to market size, growth, geographical distribution and profits? What are the major market segments? Ans A. Market size of BAHL is shrinking day by day sue to increase in competition, even BAHL open its branch in those area where the business is not that much, such as our branches which are in rural and mountains areas which are Matthanichangan which is situated in Sawabi and Hingorja, Uch Sharif and many others. Business is not growing that much therefore no profits. The major Market segments of BAHL are retail banking, corporate commercial banking and retail brokerage. Retail banking consists of retail lending, deposits and banking services to private individuals and small businesses. Commercial banking represents provision of banking services including treasury and international trade related activities. Retail brokerage activities include the business of equity, money market and foreign exchange brokerage, equity research and corporate financial advisory and consultancy services. B. Customers What are the customer’s needs and buying processes? How do customers and prospects rate the company and its competitors on reputation, product quality, service, sales force and price? How do different customer segments make their buying decisions? Ans B. BAHL has focused especially on the needs of the customers that what kind of customer’s demands and what actually they want. BAHL is quite succeed by fulfilling their needs and taken into consideration their wants. BAHL offers special offers to its customers providing accounts such as senior citizen and young savers by giving 11 & 3.5 % interest respectively. Opening of any kind of accounts is free, give provision of internet banking and many more. Different customer make their buying decision on the bases of how quick they get the service, first come first serve and how they help them by providing different facilities and its long term benefits. M.A.J.U 11
  • 12. MARKETING AUDIT C. Competitors Who are the major competitors? What are their objectives, strategies, strengths, weakness, sizes and market shares? What trends will affect future competition and substitutes for the company’s products? Ans C. Different banks are the major competitors such as National banks, Allied Banks, Bank Al falah, Habib Bank etc. Some of them are corporate banks which only give importance to the major business sectors which invest a lot. They target upper level customers and focus on main audience, there weakness are their limitations that they don’t target low & middle level customers. And also charges non customers between 25-50 Rupess for the forms. There major market size is on the import & export forms such as L/C forms. BAHL can over come such trends only when they know their competitors SWOT and identify their own SWOT analysis so that they could improve and enhance in their own SWOT analysis by providing alternative solutions to each process. Competing Rivalry; Competing firms; Bank Al Habib limited is facing a strong competition from other private Pakistani banks like Metropolitan bank. Soneri bank and Askari Commercial bank. The improved performance of the nationalized commercial banks (NCBs) is also the threat for the bank Al Habib. Foreign banks are also competing with the bank for same small medium sized companies. The bank is overcoming the incentive competition due to its strong reputation M.A.J.U 12
  • 13. MARKETING AUDIT as a renowned financial group in Pakistan and a long history of experience in the banking sector. Potential entry of new competitors; The entry barriers in this market are high. The new banks need permission from SBP so entry of new banks is restricted. Also the paid up capital requirement is likely to be raised from Rs.500 million to Rs.1 billion. Development of substitute products; The non banking financial institutions including development finance institutions (DFIs), private sector investment banks (PSIBs), leasing corporations (LCs) and Modarbas are almost in the same line of business and can be treated to the bank. Other substitutes that compete include the national saving certificates, the stock market, its supporting industry and brokerage houses. Bargaining power of suppliers; The main suppliers in the banking sectors are depositors. Although the bank is given higher return then any other bank (12% per annum) to attract the depositors but the low innovation in the product and also low investment in the marketing sector of the bank may provide difficulties in coming years. The regulatory bodies could also be the suppliers as they provide guidelines to the bank from time to time. These include the State Bank of Pakistan (SBP), The Corporate Law Authority (CLA), The Ministry of Finance and the religious board. IX. Bargaining power of customers; The main customers are small traders and exporters based in Karachi and Lahore, majority of who deal in textile related commodities. Since the bank is targeting the short- term trade finance market, the bargaining power of customer is substantial as other banks within the same sector like Habib bank, Bank Al Falah and Metropolitan are fast catching up with the Bank Al Habib in providing services to the traders. Company Profiles & Financials [http://www.alacrastore.com/search/Bank+Al+Habib+Competitor] M.A.J.U 13
  • 14. MARKETING AUDIT D. Distribution & Dealers What are the main trade channels for bringing products to customer? What are the efficiency levels and growth potentials of the different trade channels? Ans D. As BAHL is a commercial Bank there fore there is no such trade channels. E. Suppliers What is the outlook for the availability of key resources used in production? What rends is occurring among suppliers? Ans E. There are no such suppliers in BAHL as there is no productivity sector. F. Facilitators & Marketing Firms What is the cost and availability outlook for transportation services, warehousing facilities and financial resources? How effective are the company’s advertising agencies and marketing research firms? Ans F. BAHL establishes branches which are their main concept and makes its major marketing base where it focuses on their performance and prompts services. G. Publics Which publics represent particular opportunities or problems for the company? What steps ahs the company taken to deal effectively with each public? Ans G. The main source due to which it attracts the public towards BAHL who brings lot of opportunity and also create problems due to which BAHL becomes more enhance and learn to tackle such problems and welcome the opportunities which helps them to build up the good relation with the customer. As BAHL is not only runs commercial banking process but also involves conventional & Islamic banking due to which the concept of interest rates & internet banking came in to the view which causes opportunities for BAHL and also raise some issues over the system as well. Training are conducted by BAHL to enhance and make aware to the staff about the technical concepts which are related to the critical aspects of BAHL so that staff members would not hesitate while dealing with the customers and explain them with ease and confident. M.A.J.U 14
  • 15. MARKETING AUDIT PART II: MARKETING STRATEGY AUDIT A. Business Mission Is the business mission clearly stated in market-oriented terms? Is it feasible? Ans A. What ever business mission set up by BAHL, it fulfills in terms of market oriented in such a way, what ever mission which is stated by BAHL should be implemented in an appropriate way, if is that so therefore it can be stated in every terms and aspects. BAHL business missions states “To be a strong and stable financial institution offering innovative products and services while contributing towards the national economic and social development.” Here as you can see in reality BAHL offers products and services to the customer in an effective way due to which more branches are opening monthly, 30 to 40 branches opens in a year. In 2010 BAHL established sub branches as well and it is the first bank to achieve the feat. Due to the extra ordinary services from BAHL branches are being renovated and are being extended, more departments are being established. It is only done so that it can be work more for the betterment of the customer services and products. It is feasible in terms of customer satisfaction, money save, ATM free of cost, E-statement free of cost etc. B. Marketing objectives and goals Are the company and marketing objectives and goals stated clearly enough to guide marketing planning and performance measurement? Are the marketing objectives appropriate, given the company’s competitive position, resources and opportunities? Ans B. When BAHL states its vision so it means planning ahs already been done at the beginning of the year. BAHL vision is “to be a quality financial service provider maintaining the highest standards in banking practices”. Management of BAHL already states at the beginning of the year the branches which will be open in a year with their names, addresses etc. What type of schemes will be launched and what type of advertisement will be placed on banners. By setting up the objectives and goal for a year ample of customers are attracted and many vendors comes to BAHL to take the order for the upcoming branches every one wants their products or equipments to be delivered at our branches. M.A.J.U 15
  • 16. MARKETING AUDIT C. Strategy Has the management articulated a clear marketing strategy for achieving its marketing objectives? Is the strategy convincing? Is the strategy appropriate to the stage of the product life cycle, competitor’s strategies, and the state of the economy? Is the company using the best basis for market segmentation? Does it have clear criteria for rating the segments and choosing the best ones? Has it developed accurate profiles of each target segment? Has the company developed an effective positioning and marketing mix for each market segment? Are marketing resources allocated optimally to the major elements of the marketing mix? Are enough resources or too many resources budgeted to accomplish the marketing objectives? Ans C. BAHL always state its marketing strategy to achieve the marketing objectives. BAHL identifies it strength, weakness, opportunities and threats and on the bases of that it target the particular segments which best fits in their criteria. BAHL SWOT Analysis Phase A) Strength: Attributes of the organization those are helpful to achieving the objective. Strengths of bank Al Habib are as follows: ➢ATMs at bank Al Habib are secured friendly and easy to access Younger’s account of the bank Al Habib is good source of promotion for bank Al Habib. ➢Bank Al Habib’s brand name is itself strength M.A.J.U 16
  • 17. MARKETING AUDIT ➢Bank Al Habib provides online as well as physical training for its employees all over world ➢Bank Al Habib have the more then 230 branches in Pakistan ➢There is a huge variety of products and services ➢They do not consume to much capital on the marketing of their product ➢Less risk in their banking system because they are not easily gives the credit facilities to the customer ➢Brand name is also the strength of the bank Al Habib. ➢Decent way of dealing with the customers. ➢Rapidly expansion of branches in the different cities of Pakistan. ➢To much focus on the development and the promotion of the employees. ➢Proper online banking system. ➢No too much threat of the political environment. ➢Sufficient liquidity position. ➢Do well socially ➢Current ratio is above 20% of the total deposits ➢Controlling Standards B) Weaknesses: Attributes of the organization those are harmful to achieving the objective. Weaknesses of bank Al habib are as follows: ➢Bank Al Habib is not quick to give loans and cards. ➢Not Easy application is for applying for a credit card ➢No marketing for the promotion of their marketing. ➢They are not high risk taker In business activities but in business the term is used “high risk high profit, low risk low profit”. ➢Too much poor Self Marketing Department. ➢Low incentives like bonuses overtime pay etc. C) Opportunities: External conditions those are helpful to achieving the objective. Opportunities that Bank Al Habib can avail are as follows: M.A.J.U 17
  • 18. MARKETING AUDIT ➢There is a lot of cushion available for Bank Al Habib in terms of expanding its network of branches up to 272 but all this depends on stability of the Pakistan economic and political situation ➢The opportunities available for Bank Al Habib are financing to SME’s (Small and Medium Enterprises) in Pakistan. Bank Al Habib can also look for small account holders ➢Bank Al Habib has an opportunity to merge with some other bank to increase the number of its branches in Pakistan. ➢Attractive salary packages should be awarded. ➢Marketing department should be started in order to promote the name of Bank Al Habib. ➢On the job training & coaching sessions can be conducted. D) Threats: External conditions which could do damage to the business's performance Threats that could affect Bank AL Habib in negative way are as follows: ➢Day by day competition is increasing not only of the expansion of the banks but also due to the launching of the new bank in the market e.g. Barclays. ➢Circumstances of Pakistan are a great threat for the existence of the Bank Al Habib. ➢More and more banks are launching there operations in Pakistan which is increasing competition for the Bank AL Habib. ➢The conventional banks those having high growth rate and high market share are always being a threat. After defining the SWOT analysis of BAHL, now it focus on the product and services and the only way that BAHL makes their strategy appropriate by taking into consideration the stages of product life cycle, competitors and the state of economy. Approach of BAHL towards the product life cycle: A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. For instance BAHL has launched new products such as of cash management which is developing to provide value added services and solutions is part of our mission statement. We understand the complex requirements of corporate when it comes to effectively manage their liquidity/cash flows. Our Cash Management suite of services/products is geared towards addressing these business and operational complexities with the objective to streamline a company's receivables and payables. M.A.J.U 18
  • 19. MARKETING AUDIT With our real-time/online branch network of 272 branches, robust systems and experienced back office, we can add significant efficiencies in streamlining a company's cash flows. Our Cash Management systems are capable of generating rich customized reports/MIS which enables a company to closely monitor its cash cycle and effectively manage its funds. Product Life Cycle identifies with BAHL & Highlighted its Marketing Mix Values [http://www.quickmba.com/marketing/product/lifecycle/] Introduction Stage In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: • Product branding and quality level is established and intellectual property protection such as patents and trademarks are obtained. • Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. • Distribution is selective until consumers show acceptance of the product. • Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product. Growth Stage In the growth stage, the firm seeks to build brand preference and increase market share. • Product quality is maintained and additional features and support services may be added. • Pricing is maintained as the firm enjoys increasing demand with little competition. M.A.J.U 19
  • 20. MARKETING AUDIT • Distribution channels are added as demand increases and customers accept the product. • Promotion is aimed at a broader audience. Maturity Stage At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. • Product features may be enhanced to differentiate the product from that of competitors. • Pricing may be lower because of the new competition. • Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. • Promotion emphasizes product differentiation. Decline Stage As sales decline, the firm has several options: • Maintain the product, possibly rejuvenating it by adding new features and finding new uses. • Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment. • Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product. State of Economy The Pakistan economy is more controlled economy, then one where market forces reign supreme. Several key institutions are stated owned. Thus a discussion of the economic forces that influence the private organization such as bank Al Habib cannot ignore the substantial role played by the government in determining the state of the economy. The biggest indicator of the heavy role enjoyed by the government was evidence when foreign currency accounts (FCA’s) were frozen on the orders of the ministry of finance in the wake of explosion tests on may 31st 1998. This and the recent efforts by the state bank to artificially lower the interest rates by revising the repo rates downwards and encouraging lower bids for T-Bill, highlights the overwhelming role of the government in the economy. Badla rates are a true indication of market rates at which financial intuitions are willing to lend but the government, under M.A.J.U 20
  • 21. MARKETING AUDIT the dictates of the IMF wants to artificially lower the interest rates so as to provide investment liquidity within the economy. General Musharaf tenure It had putt back the economy of the Pakistan due to the wrong policies of the government for the economic growth in the Pakistan Pakistan economy destroyed badly in that 10 to 11 years of the government, and investors hesitated to invest in the Pakistan, and also the load shading is another factor that effect the Pakistan economy badly. This not the end of the story after this Pakistan’ economy face lot of problems like bomb attacks in Pakistan no electricity and the unstable government, due to this the investor are not invest in the Pakistan and the existing business men finish their business unit due to the loss. Asif Zardari tenure Economy almost doomed and recession has taken place, every thing for needle to technology has been increased in prices, many of the banks are terminating employees to only survive their economy in the environment. Prices of oil, petrol, diesel, vegetables etc has been gone high and now there is only a survival of the fittest left. BAHL is very focused on the market segmentation phase where it targets all the customers who are living in urban or rural areas and then BAHL then uses levels of segmentation to reach their target audience and try to facilitate in every aspect. BAHL uses levels of market segments such as Niche Marketing Segment It focused on narrowly defined customers. Such as BAHL uses younger savers schemes and senior citizen where it given provision to open an account by the inertest rate of 11% to the customers who are above 60, 3 years deposit and profit payable on 6 months basis. Where as for kids account opened by getting 10% interest rate where they can save their amount until unless they become 18 years old. Even free ATM card for young savers aged 16 and above maximum balance up to 500,000 rupees. Local Marketing Segment Here BAHL focused the needs and wants of those customers who are in trading areas, neighbor hoods and individual stores. Such as of introducing the service of tele-banking M.A.J.U 21
  • 22. MARKETING AUDIT where it provides a fully automated telephone banking service that brings banking at your finger tips, giving you instant access to the information you need. Now you can have access to your account… without going to the bank… 24 hours a day, 7 days a week, and 365 days a year – absolutely free. Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local Remittances) or in Foreign Currencies, (Foreign Remittances) on request of customer. Various Types of Remittance Facilities are available: 1) Payment Order 2) Demand Draft 3) Mail Transfer 4) Telegraphic Transfer Individual Marketing Segment Here it focuses on one to one marketing with the customers by providing with them customized provision such as BAHL offers online banking where customers enter their user name and password and after login in gives customers a complete options to transfer the fund, pay the bills, etc. Apart from it allow customers to download all kind of forms and also give provision of selecting which ever city they want to search and branch name appears as shown on next page. [bankalhabib.com] M.A.J.U 22
  • 23. MARKETING AUDIT BAHL sets up the criteria for rating the segments and choosing the best ones on the bases of the size and identifiable of the products which benefit the customers of using it in an appropriate way. There are two ways that BAHL applies and that is 1) Geographic Segmentation 2) Demographic Segmentation 3) Behavioral segmentation Geographic Segmentation BAHL splits the division of market in to different units such as nations, states, regions, cities, countries which also divide these segments in to urban and rural areas. BAHL has also targeted those areas where business level is very less but still it manages to fulfill the customer needs and wants by providing them with ease of opportunities to use their service any time and in what way they want. Demographic Segmentation BAHL divide the market in to groups on the bases of variables such as age, gender, income, occupation, education, religion, race and other social classes. BAHL does not treat those customers differently but treat them same and provides their services according to their situation, because each variables has its own way to approaching towards the products or services provided by BAHL. Behavioral Segmentation BAHL target their customers on the bases of their knowledge of the product and services, attitude towards it, use of or response. This includes some content of behavioral segment such as; • Occasions; • Benefits; • User status; • Usage rate; Integrated Market Communication; Any organization is work on the some goals and objectives, and these goals and objective are depend or based on the some pillars without these pillars the goals are not achieved. M.A.J.U 23
  • 24. MARKETING AUDIT IMC is the most important pillar out of these pillars. IMC is the combination of different marketing or promotional tools that creates synergy effect inn the market. Marketer used the IMC for creating the need and wants in the consumers mind. They have selected the different media for the promotion of their products. They used the commonly print & electronic media for the promotion of their products. Electronic media: Bank AL Habib used the two types of the electronic media in the market to for the target consumers which are as follows; • Radio • Television Print media: They are selected the print media more then the other media for the promotion of their products and they target their segment in the market. They are not used the both the media electronic and media like other organization. They used print media for the capturing the higher class and also target the middle class. BAHL uses limited resources budget to accomplish the marketing objectives and gaining greater profits from it. Such resource that BAHL uses of opening a separate entity in bank which is of “Islamic Banking”. It includes; • Deposit Schemes; • Islamic Financing; • Declaration of Profits; Deposit Schemes; Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following deposit schemes: • AL Habib Current Accounts • AL Habib Saving Accounts • AL Habib Term Deposits M.A.J.U 24
  • 25. MARKETING AUDIT The above deposit schemes are based on the Islamic Shariah principles and have been approved by our qualified and experienced Shariah Advisor. a) AL Habib Current Accounts • It is non-profit earning account with cheque book facility. • ATM, Debit Card and Online Banking facilities are available. • Funds will be used for investments and providing finances to trade and industries on fully Shariah compliant basis. • Regularly reviewed by qualified and experienced Shariah Advisor. b) AL Habib Saving Accounts • Based on Islamic principles of Musharakah / Mudarabah. • Profits and Losses to be shared as per prescribed rules. • Profits to be paid every six month in January and July. • Profit to be calculated on the basis of weightages, to be announced at periodic intervals. • ATM, Debit Cards and Online Banking facilities are available. • Funds will be used for investments and providing finances to trade and industries on fully Shariah compliant basis. • Regularly reviewed by our qualified and experienced Shariah Advisor. c) AL Habib Term Deposits • Based on Islamic principles of Musharakah / Mudarabah. • Available in tenures of 3 months, 6 months, 1 year, 3 years and 5 years. • Profit to be paid periodically or on maturity as per rules. • Profit to be shared according to a system of weightages, to be announced at periodic intervals. • Funds will be used for investments and providing finances to trade and industries on fully Shariah compliant basis. • Regularly reviewed by our qualified and experienced Shariah Advisor. Islamic Finance; We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are offered in the following forms: • Murabaha Finance • Ijarah Finance (Leasing) M.A.J.U 25
  • 26. MARKETING AUDIT • Diminishing Musharakah Finance All arrangements / documents relating to above are Shariah compliant and have been approved by our Shariah Advisor. a) Murabaha Finance A contract between the Bank and a Customer under which the Customer first purchases certain goods/commodities/assets as an Agent of the Bank, and the Bank after taking possession of the goods/commodities/assets sells it to the same Customer by adding certain profit margin to its cost. Murabaha Financing is available for: • Local purchase of Assets/Commodities/Goods. • Imports under Letter of Credit/Firm Contract. • Purchase of raw material for exports. • Local purchase of raw materials for production of Goods/Assets. Shariah Compatibility: • Assets must be Shariah compatible. • All agreements/documents approved by our qualified and experienced Shariah Advisor and regular monitoring/checking of Murabaha transactions by the Shariah Advisor. Customer’s Guidance: • Murabaha is always allowed for fresh purchases. • Goods shall not be used by the Customer before the Murabaha offer and acceptance are signed. • Rollover in Murabaha is not allowed. However, fresh purchases can be made under new Murabaha arrangements. • Murabaha price once fixed cannot be changed. • In case of late payment, Customer will have to pay certain amount to charity fund as per Murabaha Agreement. b) Ijarah Finance (Leasing) Ijarah is basically the transfer of usufruct of a fixed/durable asset to another person for an agreed period, at an agreed consideration. Under Ijarah agreement the asset will be given to the Customer on rent for the period agreed at the time of contract. For Vehicles (Commercial/Personal use): • Ijarah agreement and other document approved by our qualified and experienced Shariah Advisor. M.A.J.U 26
  • 27. MARKETING AUDIT • Periodical rentals to be fixed according to Customer needs at very competitive terms. • Regular monitoring and checking of Ijarah transactions by our Shariah Advisor. For Machinery & Equipment (Leasing): Machinery (for small, medium and large industrial units) and office equipment. • Lease agreements and other documents approved by our qualified and experienced Shariah Advisor. • Periodical rentals to be fixed according to Customer needs at very competitive terms. • Regular monitoring and checking of Ijarah transaction by our Shariah Advisor. c) Diminishing Musharakah Finance (For Shirkat-ul-Milk) Diminishing Musharakah is a form of partnership in which one of the partners’ promises to buy the equity share of the other partner gradually until the title of the equity share is completely transferred to him. This transaction starts with the formation of a partnership, after which buying and selling of the equity takes place between the two partners. Diminishing Musharakah can be used for plant & machinery, equipment, buildings and automobile financing.All arrangements / documents relating to above are Shariah compliant and have been approved by our Shariah Advisor. Declaration Profit Rates; Declaration of Profit on various Deposits for the Quarter ended September 30, 2010 Bank AL Habib Limited – Islamic Banking has declared the following Profit Rates: Products Profit Rates Saving Deposit (1 – 999,999) 5.04% Saving Deposit (1,000,000 – 9,999,999) 5.19% Saving Deposit (10,000,000 – 49,999,999) 5.40% Saving Deposit (50,000,000 & above) 5.76% Term Deposit - 1 month 7.50% M.A.J.U 27
  • 28. MARKETING AUDIT Term Deposit - 3 months 8.75% [bankalhabib.com] Policy for Distribution of Profit for next three months i.e. from October 1, 2010 – December 31, 2010. The Bank is currently offering Term Deposits of various maturities in addition to the Saving Deposits. The term deposits and saving account, will work under the principle of Mudarabah. The Bank will calculate the profit of the deposit pool after every quarter. Profit will be distributed at the Gross Income level. The Gross Income will be calculated after deducting costs and expenses directly incurred in deriving that Income. M.A.J.U 28
  • 29. MARKETING AUDIT PART III: MARKETING ORGANIZATION AUDIT A. Formal Structure Does the marketing vice president have adequate authority and responsibility for company activates that affect customer’s satisfaction? Are the marketing activates optimally structured along functional, product, segment, end user and geographical lines? Ans A. There are three types of formal structures which identify the entire heirachy of BAHL and also identify who is responsible for what and shows the entire flow of process. Structure 1. Board of Directors flow of work M.A.J.U CHAIRMAN CEO & MD DIRECTOR EXECUTIVE DIRECTOR COMPANY SECRETARY 29
  • 30. MARKETING AUDIT Structure 1I Management point of view Branches / Departments Structure 1II Geographical Area point of view M.A.J.U General Manager Deputy General Manager Assistant General Manager Senior Chief Manager Senior Manager Chief Manager Assistant Manager Officer Grade 1 Officer Grade 1I Sub Officer General Manager CZ/NZ/FZ Deputy General Manager For CZ General Manager for NZ / FZ Deputy General Manager For CZ Deputy General Manager For CZ Senior Chief Manager for Circular Road Area Lahore Assistant General Manager for Gulberg Area Lahore Senior Chief / Area Manager for Multan City Areas Senior Chief / Area Manager for Rahim Khan Area Senior Chief Manager for Gulshan-e-| Ravi Area Chief Manager for Faisalabad Area Senior / Area Manager for Sahiwal Area Chief Manager for NZ & FZ 30
  • 31. MARKETING AUDIT B. Functional Efficiency Are there good communication and working relations between marketing and sales? Is the product management system working effectively? Are product managers able to plan profits or only sales volume? Are there any groups in marketing that need more training, motivation, supervision or evaluation? Ans B. Here BAHL focus on different types of functional level which shows the relationship among the internal management members. An organization is an arrangement of the people to accomplish some specific purpose. Your colleges, university, banks, governments departments are all organizations because they have three common characteristics. First; each organization has a distinct purpose. This purpose is typically expressed in terms of a goal or set of goals that the organization hopes to accomplish. Second; each organization is composed of people. One person is working alone is not an Organization and it takes people to perform the work that’s necessary for the organization to achieve its goals. Third; all organizations develop some deliberate structure so their members can do their work. Purpose of organizing; ➢Divide work to be done into specific jobs and departments in bank Al Habib. ➢Assign tasks and responsibilities associated with individual jobs in bank Al Habib. ➢Coordinates diverse organizational tasks in Bank Al Habib. ➢Establish relationship among individuals, groups and departments in Bank Al Habib. Types of organization; I. Tall vs. Flat: Bank Al Habib is a tall organization. II.Multinational vs. National: Bank AL Habib is a multinational organization. III.Single vs. Branch: Bank Al Habib is a branched organization. IV.Mechanistic vs. Organic: Bank Al Habib is an organic organization. V.Big vs. small: Bank AL Habib is a big organization. M.A.J.U 31
  • 32. MARKETING AUDIT As BAHL is growing fast and each and every single day a new product and services are launched therefore training are conducted, seminars are conducted and motivation among the members also plays a vital role so that staff members are encouraged and produce results with more efficiency. C. Interface Efficiency Are there any problems between marketing and manufacturing, R & D, purchasing, finance, accounting and legal that need attention? Ans C. There is no such problems but some time it happens due to some technical aspects, especially problems occur when there is a closing or coming of any big occasion. In such situation, purchasing and finance some times face problems. Apart from it when ever any upcoming branch is due to open so for the location, premises, legal department is contacted and some time it happens they are unable to take approvals from higher authorities or are indulged in court cases as well. In purchasing department point of view problem arose due to rates which flucate in the local and foreign markets as well, especially the negotiating part which some times become a biggest obstacle. M.A.J.U 32
  • 33. MARKETING AUDIT PART IV: MARKETING SYSTEM AUDIT A. Marketing Information System Is the marketing intelligence system producing accurate, sufficient and timely information about market place developments with respect to customers, prospects, distribution and dealers, competitors, suppliers and various publics? Are company decision makers asking for enough marketing research and are they using the results? Is the company employing the best methods for market measurement and sales forecasting? Ans A. BAHL is spreading all over the Pakistan thus covering urban areas and rural as well. It is also internationally acclaimed where it has opened the branches in Bahrain and Dubai. Currently BAHL has opened 294 branches and soon will achieve the feat this year of achieving 300th branches, therefore to achieve such success there are certain departments or we can say important core of BAHL which help in do that and they are none other than ‘Marketing Intelligence System”. To cover all the factors and important aspects, BAHL worked on it by talking to their old customers, sending their own staff to the markets for survey about the prices of different products, items etc, and even took help of social media such as their own online web site where they have given a special provision to customers to lodge their complain regarding the ATM or can contact them in any aspect via email. BAHL web site is for every one no need to register as you typed in the URL a home page opens with lots of advertisement regarding the products, free offers which attracts more people and convince them to be the member of BAHL or enforce their customers to tell other people so they come and avail the products or services offers by BAHL There are certain steps to improve the quality of marketing intelligence system which are also included in the book. BAHL has considered some of them which are as follows. • Train & Motivate the sales force to spot and report new developments; There is no doubt that BAHL works so hard on their sales force, this is a difficult job to keep a track that how much sales has been increased, it can be monitored on daily bases, weekly, monthly and very rare on yearly bases as well depending on the sales collection and utilization of any particular product, if it is in a small span. For those sales people have to be trained and motivated and for that BAHL also conducts training not only on sales but other fields as well. M.A.J.U 33
  • 34. MARKETING AUDIT • Motivate distribution, retailers and other intermediaries to pass along important intelligence; BAHL provides various financial products and services in Pakistan and the Middle East. It offers retail banking, corporate commercial banking, and retail brokerage services. The company’s retail banking products and services comprise the provision of banking and other financial services, such as current and savings accounts, credit cards, and consumer banking products to individual customers, small merchants, and small and medium sized enterprises. Its corporate commercial banking offers treasury and international trade related activities to large corporate customers, multinational companies, government and semi government departments, institutions, and small and medium sized enterprises. • Network Externally; BAHL focus on its market share and foreign exchange rates and even compare to its other competitors banks so that it can further improve their products and services and utilize according to the foreign and exchange rates. Apart from it, BAHL also makes sure that what type of products they are going to introduce or making any sort of enhance should not be copied from any other competitor’s product. It should be legal and ethical, such as products offers by BAHL are Mahana Munafa, Salana Munafa, Super Bachat are also provided by other banks as well but BAHL provides and increase of the interest rate in their account while offering and guarantee them a profitable payable in 6 months duration. • Purchase information from outside suppliers; While considering any vendors before making the deal with them, BAHL see their company profile first and then use their products on sample bases to test whether it will be suitable for them to use it in future as well and also find out from them that in what price that they have been supplying to other banks so on the bases of that, negotiations are taken place and the best quote rates are considered. Suppliers such as of office supplies, printed stationary, ATM stationary, equipments such as generators, UPS, CCTV etc. Even we use our suppliers as a our contractors as well in the construction and designing our branches, suppliers such as Graphic source who supplies banners and panaflex sign board and other suppliers such as Wood & Design who supplies wooden furniture are hired as our contractors as well and this all is done by taking sufficient information about them and from them regarding the prices they are charging to design our branch, if it is feasible so we hire them. M.A.J.U 34
  • 35. MARKETING AUDIT Marketing Research System Marketing Research Process Diagram Define the Problem, the decision alternatives and the research objectives As BAHL is growing very fast, it faces number of problems which need to be identify instantly, BAHL is a vast commercial bank which in incorporates corporate banking, Islamic banking, conventional banking system as well due to which it faces various problems. M.A.J.U De fin e the Pr obl em Develop the research plan Collect the information Analyze the information Present the findings Make the decision 35
  • 36. MARKETING AUDIT First of all BAHL focus is to identify and approach towards the problem, such as BAHL usually faces problem regarding the customer side that they are not able to make an ATM transaction, when ever any customer insert their ATM card so it get stuck, some times it do not show proper amount, if shows the amount but some time does not give amount physically correct. It personally happened with staff members as well the amount which is being withdrawal is half. Then approach towards the problem is the next phase where alternative decisions are made if the problem is not resolve in first attempt. For instance if we take the above ATM case so in such situation vendor is contacted and then they come and check whether it need service or maintenance if it happens like that then it has to be shut for hours so that work is done with ease, if incase some major problem occurred then it can take two to three days, which can be a big loss to the concerned bank, then backup is provided by the vendor in urgent cases or if any parts has to be replaced then estimation has to be taken form different vendors, so it takes lot of decision in solving any particular problem. Develop the Research plan; Here BAHL use technique of collecting data from its internal record to research any plan BAHL uses both primary and secondary sources so that it could know that how it can be further elaborated its products and sources on the bases of the customers needs and wants. BAHL usually prefer secondary data to carry out research plan, as being a commercial bank it has to cut down some cost, it believe more in saving rather than utilizing in a costly way there fore BAHL goes for the past records. If incase BAHL do not have any required data or data is not appropriate or any thing which leads to a collection of new data in that case BAHL usually avoids and for that it adopts some research approaches such as which are mentioned in the books most of the time. Observational Research / Behavioral Data; In this case BAHL not only observe their customers but also monitors their own staff people that how they are handling the customers. When BAHL introduces any offers regarding their products or services and when customers try to avail it, so BAHL see their behavior of approaching towards the products such as BAHL providing senior citizen or young savers scheme so first of all they would see whether they are interested in opening their account if yes so how they are being benefited and if not then what could be the drawback. CCTV cameras are placed every where in the bank especially at cash counters and hall area where number of people gathers to deposit their pay slips and other activities, in that case staff members are being monitored as well that how they are handling their customers. Even the concept of mystery shopping implements in BAHL, where management sent their own people in the banks to open the account as a customer. Such M.A.J.U 36
  • 37. MARKETING AUDIT as if there is a new General manger is appointed or deputy general manger so they are sent to the banks as an customer to see whether the things are being carried out positively from both the entities. Focus group Research; BAHL conducts ample of meeting to decide regarding their products and services whether how, what and when it will be implement in an appropriate way. Meeting is conducted by senior management with their customers and even seminars are conducted by our customers where they invite us and discuss the things and also show why they are interested in doing business with or bank. Survey Research; BAHL only emphasis on the market prices, it only focus on the people benefits, as economy of Pakistan is not that good and recession has taken place so in such perspective BAHL usually surveys those area where middle class and poor people lives and according their needs they design the product. Sampling Plan; As already mentioned in above survey research section that AHL only focus on low and middle category people. They only want their customer should be benefited maximum. BAHL uses sampling unit where they survey those areas where business is impossible such as in Punjab site or Multan or Sindh districts or areas such as Swabi, Muzzafar garh, Uch Sahirf, Qasba Gujrat, Kotla Arab Khan, Gadap, West what, Memon Medical Hosital, Malir cities and etc. It also includes sample size and sampling procedure, it especially focus on those things where if any customer is out of city or is very far away from the home and want so in that case they collect the data and according to that design the services and reindeer that products which could reach such customers. In BAHL point of view after defining two steps of research plan other process such as • Collect the information • Analyze the information • Present the findings • Making the decision Are implemented in a very ease and a criteria is set up according to which we retain, eliminate or add more findings to enhance the products and services for BAHL. Marketing Measurement & Sales Forecasting; BAHL is successful up till now is because of its strong forecasting and measurement towards the sales and marketing respectively. M.A.J.U 37
  • 38. MARKETING AUDIT Below show the diagram of BAHL forecasting price, dividends & earning, that how it varies within a year. [http://wrightreports.ecnext.com/coms2/reportdesc_PRICE_C58669570 ] Bank AL Habib Limited Key Data: Ticker: BAHL Country: PAKISTAN Exchanges: KAR Major Industry: Financial Sub Industry: Commercial Banks 2009 Sales 23,915,876,000 (Year Ending Jan 2010). Employees: 3,667 Currency: Pakistan Rupees Market Cap: 23,429,257,600 Fiscal Yr Ends: December Shares Outstanding: 732,164,300 Share Type: Ordinary Closely Held Shares: N/A Stock Data: Recent Stock Performance: Current Price (10/29/2010): 32.00 1 Week -0.6% 13 Weeks 2.9% 4 Weeks -2.3% 52 Weeks 20.0% Currency Rates: Pakistani Rupee 11/4/2010 11/4/2010 11/3/2010 U.S. Dollar / Pakistani Rupee 0.0117 0.0117 Pakistani Rupee / U.S. Dollar 85.7633 85.6898 Exchange Rate of the Pakistani Rupee versus other key currencies: Currency Per Pakistani Rupee To Pakistani Rupee M.A.J.U 38
  • 39. MARKETING AUDIT Argentine Peso 0.0461 21.6741 Australian Dollar 0.0116 86.2813 Bahraini Dinar 0.0044 227.4889 Bermudan Dollar 0.0117 85.7633 Brazilian Real 0.0197 50.7479 British Pound 0.0072 138.1055 Buglarian New Lev 0.0161 62.0129 Canadian Dollar 0.0117 85.3362 Chilean Peso 5.7157 0.1750 Chinese Renminbi 0.0779 12.8448 Colombian Peso 21.4338 0.0467 Czech Koruna 0.2017 4.9588 Danish Krone 0.0615 16.2710 Egyptian Pound 0.0674 14.8431 European Euro 0.0082 121.3062 Filipino Peso 0.4955 2.0180 Hong Kong Dollar 0.0904 11.0652 Hungarian Forint 2,242.3077 0.0004 Icelandic Krona 1.2743 0.7847 Indian Rupee 0.5627 1.7770 Indonesian Rupiah 104.1071 0.0096 Israeli Shekel 0.0420 23.8362 Jamaican Dollar 0.9915 1.0086 Japanese Yen 0.9449 1.0583 Jordanian Dinar 0.0083 120.9640 Korean Won 12.9268 0.0774 M.A.J.U 39
  • 40. MARKETING AUDIT Kuwaiti Dinar 0.0033 306.2976 Malaysian Ringgit Financial Statements for BANK AL HABIB LTD (BAHL) Year over year, Bank Al Habib has been able to grow their bottom line from 2.4B to 2.9B despite falling revenues. View Income Statement In U.S. Dollar Currency in Millions of Pakistan Rupees As of: Dec 31 2006 Restated PKR Dec 31 2007 Restated PKR Dec 31 2008 Reclassified PKR Dec 31 2009 PKR 4-Year Trend TOTAL REVENUES 5,172.4 6,263.6 7,907.8 9,826. 9 Cost of Goods Sold 94.7 125.6 191.0 231.8 GROSS PROFIT 5,077.7 6,137.9 7,716.8 9,595. 1 Selling General & Admin Expenses, Total 2,371.3 3,088.9 4,109.6 4,871. 5 EBT, EXCLUDING UNUSUAL ITEMS 2,706.4 3,048.6 3,533.4 4,561. 4 EBT, INCLUDING UNUSUAL ITEMS 2,706.4 3,048.6 3,533.4 4,561. 4 Income Tax Expense 933.7 846.0 1,166.8 1,652. 9 Minority Interest in Earnings -1.1 -5.8 3.5 -5.3 Earnings from Continuing Operations 1,771.6 2,196.8 2,370.1 2,903. 2 NET INCOME 1,771.6 2,196.8 2,370.1 2,903. 2 NET INCOME TO COMMON INCLUDING EXTRA ITEMS 1,771.6 2,196.8 2,370.1 2,903. 2 NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 1,771.6 2,196.8 2,370.1 2,903. 2 [http://www.evri.com/organization/bank-al-habib-0x74419] M.A.J.U 40
  • 41. MARKETING AUDIT Stock Charts for BAHL [http://wrightreports.ecnext.com/coms2/reportdesc_PRICE_C58669570] LAST 32.00 PKR CHANGE TODAY +0.33 1.04% VOLUME 177.5K As of 7:40 AM 11/5/10 All times are local (Market data is delayed by at least 15 minutes). M.A.J.U 41
  • 42. MARKETING AUDIT B. Marketing Planning System Is the marketing planning system well conceived and effectively used? Do marketers have decision support systems available? Does the planning system result in acceptable sales targets and quotas? Ans B. BAHL has focused its planning system in a very efficient and effective way.BAHL planning system has been defined as • Defining organization goals and objectives. • Establishing overall strategies for achieving those goals. • Developing a comprehensive set of plans to integrate and coordinate organization work. Types of planning: Bank Al Habib us e both formal and informal types of planning; Informal; In informal planning, their planning is not written down, short term focus and specific to an organizational unit. Formal; In formal planning, their planning is written down, specific, long term focus and involves shared goals for the organization. Goals and objective BAHL planning system; ✔Financial strength and profitability by making profitable advances. ✔Customer satisfaction by providing higher quality of services at an affordable cost. ✔Growth by expending branch network and deposit base. Short term objective; ♦Profitability Long term objective; ♦Profitability ♦To optimize the use of resource Process of planning: Mission: To be a strong and stable financial institution offering innovative products and services while contributing towards the National economic and social development”. Strategies: Strategies of bank Al Habib are giving loans and accepting deposits. M.A.J.U 42
  • 43. MARKETING AUDIT Types of strategies used by bank Al Habib; • Cost leadership strategy, • Differentiation strategy, • Focused Strategy, Plans: Plans of bank Al Habib are short-term and long-term advances & deposits. Programs: Programs of bank Al Habib are up to one year or more then one year advances, fixed accounts, and etc. Policies: Policies of the bank Al Habib are profitability, by making profitable advances and customer’s satisfaction by providing best services at an affordable cost. Rules: The rules are define the upper level management according to situation. Budget: Bank Al Habib always met its budget. C. Marketing Control System Are the control procedures adequate to ensure that the annual plan objectives are being achieved? Does management periodically analyze the profitability of products, markets, territories and channels of distribution? Are marketing costs and productivity periodically examined? Ans C. BAHL policy of marketing control system has a very broaden view, before getting control over the marketing aspect of BAHL it is very necessary to analysis the leadership system which control the marketing system and that what exactly BAHL has done and followed up till now. Traits & skills of Leader: The leaders of bank Al Habib have the following Traits & Skills in themselves. ➢Decision making ➢Risk taking and risk bearing ➢Stress taking & stress bearing ➢Communication power M.A.J.U 43
  • 44. MARKETING AUDIT ➢Motivation power ➢Honesty ➢Strong vision ➢Interpersonal skills ➢Market forecasting skill ➢Consistency ➢Step forward ➢Discipline ➢Competitive skills Types of leader: There are three basic types of leaders; ➢Dictator ➢Democratic ➢Laissez-fair Democratic leader: The leaders, Bank Al Habib have, are the types of “Democratic. Because the major portion of the bank is “decentralized”, that’s why the each leader has the complete power of decision making, but they are working “collaboratively” in whole organization with each other. All leaders of bank are involved in decision making, delegating their authorities to their higher qualified employees, encouraged the participation of their employees in work and gives them opportunities of coaching in involved in decision making, delegating their authorities to their higher qualified employees, encouraged the participation of their employees in work and gives them opportunities of coaching in well manners. Motivation: Motivation is the very important skill of the leader, without the motivation skill the leader does not work effectively in the organization. Motivation of the employees to done the certain task and achieve the organization goals is too much important in the organization for its operations. Motivation is the duty of the leader toward his subordinate to do for the certain task to accomplish the organization goals. M.A.J.U 44
  • 45. MARKETING AUDIT After defined the leadership phase now it defines its marketing control system. Control: Control is the process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviation. Importance of control; Control is very much important because it is the final link in the management functions. It is the only way mangers know whether organizational goals are being met and, it not, the reasons why. The value of control function lies in its relation to planning, empowering employees, and protecting work place. In Bank Al Habib the importance of control can not be neglected because it’s a service base organization and deals with finance. Every employee in this organization has directed of indirect interaction with financial activities and finance play the key role in the progress of the bank. That’s why there is significance importance of a good control over all the activities in the bank for progressing on the right path. Process of control: A three-step process including measuring actual performance, comparing actual performance against a standard and taking managerial action to correct deviation or inadequate standards. I. Measuring actual performance: To determine what actual performance is managers must acquire the information about the actual performance of the workers who are working in the organization and overall performance of the organization. In Bank Al Habib managers get prepared statistical and financial reports about the employees and progress of the bank to see that where organization is going. In statistical reports there is all mentioned about the progress of employees that which employee have achieve how much targets at the end of the month which were given by there bosses. II. Comparing actual performance with standards: The comparing performance determines the degree of variation between actual performance and the standard performance. Standards; M.A.J.U 45
  • 46. MARKETING AUDIT In Bank Al Habib following standards are set to compare actual performance! General standard; ➢Compliance with law ➢Reasonable assurance and safeguards ➢Integrity, competence, and positive attitude Specific standards; ➢Internal control system and all transaction and significant events must be clearly documented, and the documentation readily available for examination. ➢Transaction and other significant events are to be without delay recorded and properly classified. ➢Transactions and other significant events are to be authorized and executed only by authorized persons. ➢Key duties and responsibilities in authorized and executed only by authorized persons. ➢Qualified and continued supervision is to be provided to ensure that internal control objectives are achieved. ➢Access to resources and records is to be limited to authorized individuals and accountability for custody and use of resources is assigned and maintained. ➢Managers are to; evaluate promptly findings and recommendations reported by reviewers. Determine proper actions in response to findings and recommendations, and complete, within established time frames, all actions that correct or otherwise resolve the matters brought to management’s attention. III.Taking correct actions: Corrective action in the organization corrects problem at once to get performance back on track. Management of Bank Al Habib revise the results from the comparison of the actual performance with the standards and then takes the corrective actions to solve that particular problem to ensure the achievement of targets in the organizations. Marketing cost and productively periodically examined on the bases of sales produced by the implementing of the products or services produced by BAHL. Such as on the bases of online internet banking and ATM transactions BAHL analysis their marketing cost and productivity. M.A.J.U 46
  • 47. MARKETING AUDIT Some months back the transactions which were made through the ATM of BAHL have been categorized in to three major phases. This below data is been recorded in a month of Feb where the most of the branches has recorded top ranking in their ATM. Top Performing BAHL ATMS- FEB 2010 Highest up time; Branches % Memon Goth 99.72 Khyban-e-Ittehad 99.69 Korangi Road 99.60 DHA Phase II 99.51 Most Transactions; Branches Transactions UP More 8021 Gulshan-e-Hadeed 8090 Malir Halt 7868 Soldier Bazar 7503 Model Colony 6811 Most Cash Dispensed; Branches Cash Dispensed UP More 45,036,500 Gulshan-e-Hadeed 45,661,000 Malir Halt 38,792,000 Soldier Bazar 38,714,000 Model Colony 34,683,000 D. New Product Development System Is the company well organized to gather, generate and screen new product ideas? Does the company adequate concept research and business analysis before investing in new ideas? Does the company carry out adequate product and market testing before launching new products? Ans D. BAHL focused on organizing phase very well due to which BAHL new product development usually hits the aisle nationally and internationally, once your bank is organized every thing goes very smoothly. First; each organization has a distinct purpose. This purpose is typically expressed in terms of a goal or set of goals that the organization hopes to accomplish. M.A.J.U 47
  • 48. MARKETING AUDIT Second; each organization is composed of people. One person is working alone is not an organization and it takes people to perform the work that’s necessary for the organization to achieve its goals Third; all organizations develop some deliberate structure so their members can do their work. Purpose of organizing in BAHL perspective ➢Divide work to be done into specific jobs and departments in bank Al Habib. ➢Assign tasks and responsibilities associated with individual jobs in bank Al Habib. ➢Coordinates diverse organizational tasks in Bank Al Habib. ➢Establish relationship among individuals, groups and departments in Bank Al Habib. Types of organization which suits BAHL I. Tall vs. Flat: Bank Al Habib is a tall organization. II.Multinational vs. National: Bank AL Habib is a multinational organization. III.Single vs. Branch: Bank Al Habib is a branched organization. IV.Mechanistic vs. Organic: Bank Al Habib is an organic organization. V.Big vs. small: Bank AL Habib is a big organization BAHL has focused on some new products developments which has become a success in all over the Pakistan The unique feature of the new PLS monthly saver account is payment of profit on a monthly basis. Profit will be computed every month and paid on the first working day of the following month. The account can be opened by any individual single or joint whether salaried, self employed, retired, house wife o minor. Customer may open an account by visiting their nearest branch and completing the account opening form designed for this product and submitting it with all supporting documents. M.A.J.U 48
  • 49. MARKETING AUDIT BAHL deposit products includes Salana Munafa, Mahana Munafa, Senior Citizen, Young citizen, Super Bachat etc along with T-call accounts and TDR which are developed to cater the banking needs of corporate clients and high net worth individuals. Another new product recently launched by BAHL is shown below; SALIENT FEATURES OF PRODUCT [bankalhabib.com] Launched from October 28, 2010 • Three year Savings Certificate with six monthly payments of profits • The account can be opened by any; i. Individual (single or joint) like salaried person, self employed etc ii. Register Partnership concern iii. Public & Private Company iv. Registered trust v. Government Body etc. • Minimum Amount required to invest in the certificate is Rs. 25,000 • Profit will be automatically credited to the customer account. • On maturity of the deal customer may opt for automatic roll over at prevailing rate • Profit rate is 12.25% per annum payable after completion of every six month M.A.J.U 49
  • 50. MARKETING AUDIT • In case the certificate is encashed before completion of first six months no profit will be paid and no penalty recovered • If the certificate is en-cashed in the period between the seventh month and any date till the date of maturity a penalty of only 2% will be charged and no profit will be paid for that six monthly periods. • Free ATM / Debit Card available • 90% financing against deposit is available. . M.A.J.U 50
  • 51. MARKETING AUDIT PART V: MARKETING PRODUCTIVITY AUDIT A. Profitability Analysis What is the profitability of the company’s different products, markets, territories and channels of distribution? Should the company enter, expand contract or withdraw from any business segments? Ans A. BAHL has established themselves only for to provide benefits to their customers and not only expand themselves in all over Pakistan but also has cover those areas and districts where people usually avoid going due to the isolated place but still manages to create an impact. Recently BAHL has proven them selves when the major cities were affected by the floods, branch situated in Shikarpur which was the major hit by the floods controlled the situation in such as way that it created its name more. Just see below at the picture; BAHL should only enter, expand the business segments in an effective way. For BAHL to withdraw from any kind of business segments can be a big loss, not only to the banks M.A.J.U 51
  • 52. MARKETING AUDIT but it can effect the reputation of the customers as well which can create a negative impact on them and force them not to buy or has any sort of relationship with BAHL. BAHL has also introduced BCP plan which is Business Contingency Plan where a backup of all the departments which are situated at main head office and are centralized has been set up at our Khyban-e-Ittehad branch so that in case of any emergency or riots if taken place or not abel to reach to the place so we can just go to Khyban-e-Itteahd branches and can continuing to do our work. BAHL also become popular by providing facilities in phone banking of T-PIN, with the help of T-PINs customer may access their accounts, ATM card and credit card information and services from the automated integrated voice recording system available by calling the call center at 111 014 014. BAHL also enhance one of its products by another value added service for customer’s alerts on large cash withdrawals. It is very important to register the current mobile member with the bank to receive the SMS alerts. Apart from t BAHL also provided their customers with another value added service which is of cash management To provide value added services and solutions is part of our mission statement. We understand the complex requirements of corporate when it comes to effectively manage their liquidity/cash flows. Our Cash Management suite of services/products is geared towards addressing these business and operational complexities with the objective to streamline a company's receivables and payables. With our real-time/online branch network of 263 branches, robust systems and experienced back office, we can add significant efficiencies in streamlining a company's cash flows. Our Cash Management systems are capable of generating rich customized reports/MIS which enables a company to closely monitor its cash cycle and effectively manage its funds. For more information on how we can assist you, please contact your Relationship Manager or contact our Cash Management Unit at 021-2270529 or 021-2277063. BAHL has expanded in the business segment by introducing the concept of Sub Branches. Such as Hassan Center sub branch of Gulsahn-e-Iqbal, Defence Market sub branch of Korangi branch, Ghulam Muhammadabad sub branch of Jinnah Colony Faisalabad any more. This concept has been introduced this year and up till now 22 sub branches ahs been opened and two more to come. These Sub branches are not allowed to open any customer account it may provide information to prospective customers and advise them with regard to the bank’s various products. When a customer wishes to open an account the sub branch will answers all preliminary questions of the prospective customer of the controlling branch and inform him/her about all products available in the bank. In all cases, how ever the controlling M.A.J.U 52
  • 53. MARKETING AUDIT branch will perform the KYC and CDD functions of all accounts referred to them by the sub branch. B. Cost effectiveness Analysis Do any marketing activities seem to have excessive costs? Can cost-reducing steps be taken? Ans B. Here in such cash a business equation is used which is R= P-C, where R stands for revenue, P stands for profit and C stands for cost. Yes, as mentioned in previous auditing sections that BAHL is widely used all over the Pakistan and has introduced ample of products and services and provided with all the features and benefits for that cost has incurred a lot. Such as cost of advertising, this is of printed media, radio, television on internet etc, campaign cost, banners cost, all the assets which is utilized in the bank at the time of opening such as furniture’s, generator, UPS, location place even, rent if has taken from some one and many more. BAHL uses marketing mix model to eliminate cost but it has no effect though, BAHL tires but the investment is of over millions of rupees, each year purchasing is of 80 to 90 million which is lot of cost and main aim of BAHL is to provide and facilitate customers by introducing more braches and enhancing he products by adding some value to it therefore resulting in cost. BAHL now days trying to eliminate their cost by renovating the branches and shifting the premises to another which results in less cost as compare to open a new branch. By renovating the branch or shifting cot really reduces for instance recently two Islamic banking branches opened at Khyban-eBukahri and Memon Goth. First floor people shifted to the second floor and new people came at first follow where Islamic banking department has been opened at the both branches, nothing was required as they were using branch equipments only some cabling had to be done and fire extinguisher had to be placed for security measure and some wooden and steel furniture were required. Even another activity taken place where ATM at DA creek club has already been situated only 1 camera, 1 fire extinguisher and 1 tom Ac with 1 2 Kva Ups had to be installed other facilities are provided by club, this is how BAHL use techniques to utilize the thing in such a way where cost comes less and profit which is generated more than the cost is utilized which comes in the form of revenue. M.A.J.U 53
  • 54. MARKETING AUDIT PART VI: MARKETING FUNCTIONS AUDIT A. Products What are the company’s product-line objectives? Are they sound? Is the current product line meeting the objectives? Should the product line be stretched or contracted upward, downward or both ways? Which products should be phased out? Which products should be added? What are buyer’s knowledge and attitudes toward the company’s and competitors’ product quality features styling, brand names and so on? What areas of product and brand strategy need improvement? Ans A. It refers to goods and services you offer to your customers. Apart from the physical product itself, there are elements associated with your product that customers may be attracted to. Bank Al Habib has the various products which are given below in detail. Product: Consumer banking Services Investment Islamic Banking Commercial banking Home remittances Consumer banking Auto loan Bank Al Habib APNI CAR- the car financing facility which gives you complete peace of mind through convenient repayment plans M.A.J.U 54
  • 55. MARKETING AUDIT Home Loan & Home Buying Decent homes are difficult to purchase in today’s ever changing world of real estate prices. Safe and comfortable shelter is the prime necessity for each individual. So let bank Al Habib with its home finance solution provide you with the means of buying, constructing your ideal home. Home buying; Realize your dream with the Bank AL Habib Home Buying facility where you can own your personal property. This scheme offers you to buy & own your dream home Home Construction & Home Improvement Bank AL Habib will help you as our eligible customer to build the house of your dreams! Eligibility Criteria Pakistani National - Salaried or Self Employed - Minimum 23 to Maximum 60 Years Old - Minimum Net Salary Rupees 20,000/= M.A.J.U 55
  • 56. MARKETING AUDIT Services Online banking, ATM Cards & Debit Cards Bank AL Habib offers Online Banking Facility to its account holders at branches all over Pakistan. Cash may be accepted at a branch for crediting accounts at another branch; Cheques can be paid by a branch by debiting the customer’s account at another branch. Now your Bank AL Habib ATM Card is not just an ATM Card It’s much more Bank AL Habib is a founder member bank of 1 Link, the largest shared ATM network countrywide, giving you 24-hour access to your account from any ATMs. This network will keep on expanding to give you unmatched and most convenient services. Welcome to Cashless Transactions In keeping with Bank AL Habib's tradition of bringing you the quality services, we now move one step further, to add more convenience to your banking. Your Bank AL Habib ATM Card. can also work as a Debit Card at thousands of outlets and shops all over Pakistan, displaying the ORIX Network logo for a maximum of 25000/= per day. Tele Banking & Electronic Fund Transfer Round the Clock Banking; Anywhere Anytime Bank AL Habib, customer convenience comes first. After successfully launching FREE ATM Cards and Online Banking. We now introduce yet another facility for all our customers. AL Habib TeleBanking Service is a fully automated telephone banking service that brings banking at your finger tips, giving you instant access to the information you need. M.A.J.U 56
  • 57. MARKETING AUDIT Now you can have access to your account… without going to the bank… 24 hours a day, 7 days a week, 365 days a year – absolutely free! The InterBank and IntraBank Funds Transfer “IBFT” is an electronic funds transfer “EFT” facility added to the list of our existing ATM Card services. It is an automated solution for bank to bank funds transfers who enable 1Link ATM Cardholders to avail real time funds transfer facility from their account to any other account in Bank AL Habib (BAHL) or to any 3rd Party Account in BAHL or participating 1Link Switch Member Bank’s customer account using their bank’s ATM. Remittance, Life Insurance & Cash Management Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local Remittances) or in Foreign Currencies, (Foreign Remittances) on request of customer. It gives us great pleasure to inform our valued customers that Bank AL Habib has arranged "Absolutely Free" Insurance Cover to our existing saving accountholders To provide value added services and solutions is part of our mission statement. We understand the complex requirements of corporate when it comes to effectively manage their liquidity/cash flows. Our Cash Management suite of services/products is geared towards addressing these business and operational complexities with the objective to streamline a company's receivables and payables. M.A.J.U 57
  • 58. MARKETING AUDIT Investment Young Saver Account Young Pakistanis, Bank AL Habib has designed a new account specially for you, your own Young Savers Account Features; ➢This is an account for Young Savers of up to 18 years. Visit the nearest Bank AL Habib branch with your parent/guardian to open your Young Savers Account. You can open an account with as little as Rs.5/ = ➢Rate of return on Young Savers Account is expected to be well above the return on normal savings accounts. Currently indicative rate of return on balances up to Rs. 500,000 is 10% P.A and for balances over Rs. 500,000 is 5% P.A, payable six monthly. ➢Young Savers Account will have Internet Banking facility and ATM Debit Card available to your parent/guardian ➢Young Savers of 16 years and more will also be eligible to receive ATM Cards and can withdraw money through ATMs, if specifically authorized by their parents/guardians (certain conditions apply). ➢Until you the Young Savers are a minor, i.e., below 18 years, the account will be operated by your parent/guardian. When you attain majority, the balance in the account will be transferred to a new account which you will open and operate after completing required formalities, including the concurrence of your parent/guardian. ➢Bank officers will also visit your school to help you open Young Savers Account and collect your deposit. M.A.J.U 58
  • 59. MARKETING AUDIT PLs saving account and monthly profit plan; Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings Account and Monthly Profit Plan. Features of PLs saving account: ➢Profit is paid out to your Account on six-monthly basis. ➢There is NO Minimum Balance requirement for PLS Savings Account. ➢The indicative Return Payable on "PLS Savings Account" deposits with effect from July 01, 2008 is 5.00 % per annum. ➢Free Life and Disability Insurance cover for accountholders. Monthly profit plan: ➢This plan adds to the earning ability of your PLS Savings Account with Bank AL Habib. ➢Your profit is paid out / credited every month to your Account instead of six-monthly as in case of PLS Savings Account. ➢NO Special forms or applications, NO Minimum Balance requirement. ➢The indicative Return Payable on "Monthly Profit Plan" deposits with effect from July 01, 2008 is 5.00 % per annum. ➢Free Life and Disability Insurance cover for account holders 3. Treasurer’s call; Corporate societies, trusts and even individuals have large funds which are generally idle. Such funds can be put to. This plan is open to Current Deposited Account. Access to such funds requires only a 24 hour notice. Profit is calculated on a daily product basis and credited to your Account monthly. The applicable rates for the Treasurer's Call Deposited Account, effective January 1, 2005 are: work to earn handsome profits via the AL Habib Treasurer's Account. Super saving account; Bank AL Habib has introduced Super Saving account to meet your needs Features of Super Saving Account. M.A.J.U 59
  • 60. MARKETING AUDIT ➢Profit is paid to your account on a quarterly basis. ➢Minimum Deposit in the Account must be 500,000 or above Senior Citizen Account High Returns Reliable and Convenient; In case of a joint account the Senior Citizen will be the primary account holder and other joint account holders must be between 18 and 60 years of age. • Profit will be paid on the first working day of the next month • Up to 90% financing allowed against deposit.. • The indicative return payable on "Senior Citizen's Account" deposit effective November 01, 2008 is 11% per annum. • Free ATM Card. • Profit may be drawn through Cheque or ATM from any branch of Bank AL Habib. • Profit is subject to Zakat, Withholding Tax and other Government Levies unless exempted. Islamic Banking Deposit Scheme Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following deposit schemes: • AL Habib Current Accounts M.A.J.U 60
  • 61. MARKETING AUDIT • AL Habib Saving Accounts • AL Habib Term Deposits Islamic Finance & Declaration of profit We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are offered in the following forms: • Murabaha Finance • Ijarah Finance (Leasing) • Diminishing Musharakah Finance Declaration of Profit on various Deposits for the Quarter ended March 31, 2009 Commercial banking: We offer a full range of banking services which include: ✔Current and deposit accounts for corporate and individual clients. ✔Foreign currency accounts. ✔Finance through loans, and other credit facilities to the corporate, private and public sectors. ✔Short term finance of foreign trade through Letters of Credit and negotiation of Bills of Exchange. ✔Issuance of Guarantees, Bid Bonds, Performance Bonds etc. ✔Acceptance and placement of funds in the inter-bank market. ✔Purchase and sale of foreign currencies. ✔Trade information and research. M.A.J.U 61
  • 62. MARKETING AUDIT ✔Remittances and transfer of funds. ✔Sui Gas Bills Collection on Direct Debit basis. ✔MCB Rupee Traveler cheque. Home Remittance Bank AL Habib Limited will encourage all remitters to open account for the beneficiaries in Pakistan at any BAHL branch to avail following services absolutely free of charge: • No minimum balance required to open and maintain a Savings account • Same day value for remittances received before 1300 Hrs PST for deposit in the remitter/ beneficiary’s BAHL account. • ATM/Debit Card accepted at over 6000 merchants and 2000 ATMs across Pakistan. • Free Life Insurance cover for up to PKR 1 million, subject to prevailing terms and conditions for PKR Savings account holders. • Issuance of Pay Order or Demand Draft. • Direct Debit and Standing Instructions for frequent payments from accounts • Competitive exchange rates for FCY transactions or transfer from US$ account to PKR account. • Net Banking for round the clock internet banking services from any where at any time for balance inquiry, statement of account and funds transfer etc. M.A.J.U 62
  • 63. MARKETING AUDIT • 24X7 Call Center and Tele Banking services. B. Price What is the company’s pricing objectives policies, strategies and procedures? O what extent are prices set on cost, demand and competitive criteria? Do the customers see the company prices as being in line with the value of its offer? What does management know about the price elasticity of demand, experience curve effects and competitor’s prices and pricing policies? To what extent are price polices compatible with the needs of distributors and dealers, suppliers and government regulation? Ans B. Pricing includes; • Profits rate for quarter ending; • Treasurer’s call: • Super Saving Account. • Growth certificates: • Her mah munafa imdani main izaffa: • Home remittance [bankalhabib.com] M.A.J.U 63
  • 65. MARKETING AUDIT [bankalhabib.com] C. Distribution / Place What are the company’s distribution objectives and strategies? Is there adequate market coverage and service? How effective are distributors, dealers, manufactures representatives, brokers, agents and others? Should the company consider changing its distribution channels? Ans C. The placement strategies of the bank Al Habib is very effective and strong. They have over 230 branches in the major cities of the Pakistan. The products and services are provided to the consumers at the branches. D. Marketing Communications What are the organizations advertising objectives? Are they sound? Is the right amount being spent on advertising? Are the ad themes and copy effective? What do customers and the public think about the advertising? Are the advertising media well chosen? Is the internal advertising staff adequate? Is the sales promotion budget adequate? Is there effective and sufficient use of sales promotion tools such as samples, coupons, displays and sales contests? Is the public relations staff competent and creative? Is the company making enough use of direct, online and database marketing? Ans D. It is the last p of the marketing mix. And the some marketers say that the most important part of the marketing mix is promotion. Organizations are very care full about the promotion of their products in the market; adopt the promotional strategies for the effective promotion of their products. M.A.J.U 65
  • 66. MARKETING AUDIT Bank Al Habib uses the different strategies for the promotion of their products according to the environment of the market for capturing the most of the customers in the market. They used strategies such as; • Sales promotion • Introducing innovative product E. Sales Force What are the forces objectives? Is the sales force large enough to accomplish the company’s objectives? Is the sales force organized along the proper principles pf specialization territory, market, and product? Are there enough or too many sales managers to guide the field sales representatives? Do the sales compensation level and structure provide adequate incentive and reward? Does the sales force show high morale, ability and effort? Are the procedures adequate for setting quotas and evaluating performance? How does the company’s sales force compare to competitors sales forces? Ans E. A comprehensive Sales & Margin summary analysis for Bank AL Habib Limited Tabular results include up to a ten-year history on Sales, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), Income before Extraordinary Items and number of Employees. Additional ratios are included for sales growth, earnings and income as a percent of sales and Sales per Employee. The Bank operates in three segments: retail banking, corporate commercial banking and retail brokerage. Retail banking consists of retail lending, deposits and banking services to private individuals and small businesses. Commercial banking represents provision of banking services including treasury and international trade related activities. Retail brokerage activities include the business of equity, money market and foreign exchange brokerage, equity research and corporate financial advisory and consultancy services. The Bank's subsidiaries include AL Habib Financial Services Limited and AL Habib Capital Markets (Private) Limited. [http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_C58669570] M.A.J.U 66
  • 67. MARKETING AUDIT GLOSSARY A Accessible (a town accessible by rail", available) Accomplish; to gain with effort Assurance (authority); Freedom from doubt; belief in yourself and your abilities Assessment (judgment, he classification of someone or something with respect to its worth) B Bidding; An authoritative direction or instruction to do something Bearing; Relevant relation or interconnection Brokerage firms; A stock broker's business; charges a fee to act as intermediary between buyer and Seller C Corporate (corporate rates"; "corporate structure") Compliance ; (Acting according to certain accepted standards) Conventional (conventional wisdom"; "she had strayed from the path of conventional behavior"; "conventional forms of address") Commodities; good, trade goods, Articles of commerce D Deliberate; Carefully thought out in advance Dictator; A ruler who is unconstrained by law Democratic; Belong to or relating to the Democratic Party Disability (The condition of being unable to perform as a consequence of physical or mental unfitness) Distinct; (often followed by 'from') not alike; different in nature or qualit E Engaged; Having ones attention or mind or energy engaged Empowering ; Give or delegate power or authority to G Guardian (A person who cares for persons or property) M.A.J.U 67
  • 68. MARKETING AUDIT I Inadequate (poor, short, unequal) Incentives (A positive motivational influence) Integrate; Make into a whole or make part of a whole Incorporated; Formed or united into a whole L Levies (charge imposed and collected) O Origin; The place where something begins, where it springs into being Optimize; make optimal; get the most out of; use best R Regime (The organization that is the governing authority of a political unit) Renovate ( repair restore fix up) Remittances (A payment of money sent to a person in another place) Readily (promptly, quick) S Subsequent (subsequent developments) Strategies; An elaborate and systematic plan of action Simultaneously; At the same instant Subsidiary; Functioning in a supporting capacity V Venture (speculation); Proceed somewhere despite the risk of possible dangers Readily (promptly, quick M.A.J.U 68