Marketing Management Assignment # 2

Mahmoud Nassef Ebrahim Mohamed Student # 18,

MBA Intake # 53A Campus: Mohandeseen.

Determine the type of demand that your business sector follows:

Employer: Bank Audi.
In the Egyptian market, banks are facing a combination of two types of demands, based on the level of
the financial literacy of their existing and potential customers:
a) Overfull demand,
b) Negative demand.

Derive an argument to defend your claim of the demand type:

Financial literacy is an important predictor of financial behavior in the Egyptian market, as the benefits
of better financial literacy may be great as follows:
a) On personal level, individuals may save more, and better manage risk by purchasing insurance
contracts.
b) On country level, there may be general equilibrium effects, as increased demand for financial
services may improve risk-sharing, reduce economic volatility, improve intermediation, and
speed overall financial development. This in turn could facilitate competition in the financial
services sector, and ultimately more efficient allocation of capital within society.
The more an institution knows its clients and understands its market, the better it will be in producing
products and services to meet demand.
Sophisticated customer segmentation is the key to cater to individualized needs and should be based on
standard banking metrics: psychographic (values, attitudes, lifestyles), behavioral (usage rate, price
sensitivity, brand loyalty, and benefits sought) and demographic variables (occupation, income, and
family-status).

Types of demands, which are being faced by banks:

a) Overfull demand, as more financially educated customers would like to buy from than can be
satisfied. Banks should seek to attract and retain those customers with a compelling multi-
channel experience across all touch points (branches, online, mortgages, etc.).
Technology continues to rapidly change the way customers behave and interact. Virtual
channels are becoming more relevant, with the increasing penetration of high-speed Internet
connectivity and Web-enabled mobile devices allowing consumers to spend more time online.

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 Marketing Management Assignment # 2
Mahmoud Nassef Ebrahim Mohamed Student # 18,
MBA Intake # 53A Campus: Mohandeseen.

b) Negative demand, as unknowledgeable consumers who are unaware of the financial benefits
may dislike the financial services and even pay to avoid it.
When it comes to financial education, the benefits for banks are huge and the avenues to deliver
that education are many. Financial education programs can open new roads into untapped
populations, such as the immigrant and under banked markets. In addition, financial education
programs can also create goodwill at the community level and strengthen relationships with
local customers and community partners.

Conclusion:
A successful organization must be able to provide customers with value and service at a cost that
allows it to be competitive while still generating an acceptable return.
These days its all about the customer experience, and many banks are feeling pressurized because they
are not delivering the level of service that consumers are demanding, especially in regards to
technology.
Regulatory requirements continue to increase, and banks need to spend a large part of their
discretionary budget on being compliant, and on building systems and processes to keep up with the
escalating requirements.
These challenges continue to escalate, so banks need to constantly evaluate and improve their
operations in order to keep up with the fast pace of change in the banking and financial industry today.

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