Marketing mix of Bank of America (7Ps of Bank of America)
This is a detailed assessment of the marketing mix of Bank of America (7Ps of Bank of America). Bank of America is one of the leading financial services companies in the United States and beyond. It has implemented an effective mix of marketing tools known as the marketing mix or the 7Ps of marketing to establish a strong connection with its customers.
Detailed analysis of the marketing mix of Bank of America (7Ps of Bank of America)
Products/services offered by Bank of America
As a financial services company, Bank of America offers a range of consumer and business banking, financing, and investing services. These services include checking and savings accounts, credit cards, home loans, auto loans, and investment (Bank of America, 2022).
A strong product or service offering can increase customer satisfaction. It can also help a company build brand loyalty and increase customer retention. Additionally, it can lead to new revenue streams from cross-selling and upselling. Bank of America aims to provide customers with products and services that address their current and future financial needs. It is of the most popular consumer banks in the USA (YouGov, 2022). Euromoney magazine has also named it the World’s Best Bank for 2022.
Pricing strategy of Bank of America
The second element of this marketing mix of Bank of America (7Ps of Bank of America) is pricing. Pricing is a very important factor as it affects all other elements of the mix. There are many different pricing strategies that companies can adopt. According to some analysts, Bank of America pursues a competitive pricing strategy to stay close if not ahead of its competitors.
Bank of America has recently reduced the overdraft charges to $10 from $35; however, this was in response to heavy criticisms by some lawmakers. It considered removing the charges completely; however, eventually opted for a reduced fee (Doherty, 2022).
Place/Distribution strategy of Bank of America
Place includes all the aspects of distribution, including the channels through which a company delivers its products and services. It can be retail locations, the internet, call centers and so on. An efficient place strategy can help the business maximise its reach and minimise its costs.
Bank of America has a substantial retail network across the USA. It has thousands of branches and ATM machines to make it easy for the customers to have accesses to the services. It also offers a mobile app to make banking convenient.
Promotional strategy of Bank of America
The fourth element of this marketing mix of Bank of America (7Ps of America) is promotion, which refers to how a business communicates its marketing messages to the customers. It includes advertising, sales promotion, public relations, direct marketing, and digital marketing.
Bank of America uses advertising regularly. It advertises on a variety of platforms, though it should increase the number of subscribers in some of its social networking accounts/channels. It also uses sales promotions regularly. It welcomes new clients with cash when they open a business or personal checking account (Hurd, 2022).
Bank of America also uses public relations to establish good relationships with the stakeholders. It has recently announced a new zero down payment on mortgages for first-time homebuyers. However, this service is available to some customers only (Bank of America, 2022).
People strategy of Bank of America
The people strategy of Bank of America focuses on hiring talented and skilled individuals for different functions in the company. This helps it provide better and more personalised services to its customers.
Bank of America has developed a positive working environment that encourages team members to excel. 50% of its global workforce are women and more than 49% of the U.S. based workforce is racially or ethnically diverse (Bank of America, 2022). This is indeed a great strength of the bank. However, it should be mentioned that it was sued several times in the past by employees over a variety of issues.
Process strategy of Bank of America
Process usually refers to the way a business operates and manages everything. It includes the strategies and systems it uses to deliver the products and services and manage its customers. For example, the clients of Bank of America can have access to their accounts online or by visiting a branch.
Interestingly, clients are increasingly relying on the bank’s award-winning digital solutions to manage their finances. In fact. they logged into the digital platforms nearly 1 billion times in July 2022 (Bank of America, 2022).
Physical environment of Bank of America
The final element of this marketing mix of Bank of America (7Ps of Bank of America) is the physical environment. The physical encompasses the way a business is set up, including its aesthetics, layout, and design. It can help the business bolster its brand identity and increase customer satisfaction.
The physical environment of Bank of America’s retail locations is designed to reflect its brand values and visions. Its logo appears prominently on the exterior of each store. Inside, the stores are clean, well lit, and decorated with artwork that reflects the company’s brand.
Summary of the marketing mix of Bank of America (7Ps of Bank of America)
To conclude, the 7 elements of the marketing mix are important for businesses to grow and succeed. It is clear from the above examination that Bank of America has developed an effective marketing strategy where these elements played big parts. However, further improvements are needed where necessary as identified above.
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Last update: 05 September 2022
Bank of America (2022) About us, available at: https://about.bankofamerica.com/en (accessed 04 September 2022)
Doherty, K. (2022) Bank of America’s overdraft fees plunge 90% after charges eased, available at: https://www.bloomberg.com/news/articles/2022-08-17/bank-of-america-s-overdraft-fees-plunge-90-after-charges-eased (01September 2022)
Hurd, A. (2022) Bank of America promotions of September 2022, available at: https://www.forbes.com/advisor/banking/bank-of-america-promotions-bonus/ (accessed 05 September 2022)
YouGov (2022) The most popular consumer banks, available at: https://today.yougov.com/ratings/consumer/popularity/consumer-banks/all (accessed 05 September 2022)
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.