A Case Study on ETRADE Financial Corporation Presentation - Unitedworld School of Business

7/28/2019 A Case Study on ETRADE FinancialCorporation Presentation - Unitedworld School of Business

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HEADQUATERS- 135 East 57th Street, New York,NY 10022, United States.

Phone: 646-521-4300

Fax: 212-826-2803

Web Site: http://www.etrade.com

The Company was founded in 1992, which deals inproviding brokerage services for many US stockexchange markets, option markets, future markets,

mutual funds markets, currency trading and bondstrading. It also provides researches and reportsrelated to these markets; and advisory and assetmanagement services to retail clients.

A Case Study on E*TRADE Financial CorporationOverview
http://www.etrade.com/http://www.etrade.com/http://www.etrade.com/


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The company has two main issues1. Customer Satisfaction

2. Meeting Customer Expectation

The customers were facing problem withthe banking service provided by thecompany.

Problems Faced By The Company


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Some customers had a very high standard ofexpectation that neither the company nor the

market competitors could provide with the recentavailable technology used.

Many customers especially the older ones, havedifficulties in using some of the advancedservices and incurred losses during trading.

Some customers were concerned about thebrokerage services price, and they wereconsidering the another brokerage firms thatprovided same services with lower prices.

Why


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Redesign the company's services to beconvenient to as much customers.

Design a big promotional advertisingcampaign, and to be lunched through

business related TV channels and financialweb sites.

Training the employees to the new servicesand on customer relationship marketing.

Give the authority, the tools and empowerthe employee for optimum customer servicesatisfaction.

Steps Taken By The Company


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Educate the customers on the services in aneasy and convenient way sp that they knowwhat to do.

Taking part in seminars and events about

financial services. This will have good impacton the companys image and brand loyalty.

A well organized and highly skilled teamshould be formed to direct this action plan

step by step, evaluating its effectiveness andupdating it to meet new changes in theindustry.

Cont......


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Service A Service is an act or performance one party can offer

to another that is definitely intangible and does not

result in ownership of anything. Its production may or

may not be tied to the physical product.


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Service is an intangible offering with little or no

transfer of physical products to the customer.

Service is one part of product-service mix being offered

to customers

The main offering is the product but the supplier alsoprovides some services.

Service levels


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Services impact customers more directly than products

do.

Marketing of services has to be more deliberate.

Positioning must be razor sharp. Promotion more challenging due to intangible nature of

services.

Same service can be delivered in various ways.

Principles of marketing apply to services


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Difference Between

Service & Product marketing


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Four Factors That Distinguish Services

Marketing

Intangibility

Service cant be owned

Inseparability

Perishability


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It is very important to understand and meet the

customer expectations

Consumers of services value not only the outcome of

the service encounter but also the experience of taking

part in it.

Reliability:- Service provider should be able to deliver

the promised service each time the customer decides to

avail of it.

Meeting customer expectations


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Credibility:- Can customers trust the service

company's and its staff?

Security:- Can the services be used without risk?

Responsiveness:- How quickly do service staff respond tocustomer problems and requests?

Behavior of employees:- Do services staff act in a friendly and

polite manner?

Communication:- Is the service described clearly and accurately.


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Three types of marketing in serviceindustries Internal marketing

External marketing

Interactive marketing

F

M K


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Internal marketing Marketing conducted by a service firm to train and effectively

motivate its customer contact employees and all the supporting

service people to work as a team to provide customer

satisfaction.


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External marketing

Traditional marketing incorporating the 7Ps

Price

Product/service

Place

Promotion

People

Processes

Physical evidence of the services marketing mix.


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Interactive marketing

Marketing that recognises that the perceived service quality

depends heavily on the buyer-seller interaction.

Emphasis on relationship marketing.


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Word of mouth is critical to success

Persuade satisfied customers to inform others of theirsatisfaction.

Encourage potential customers to encourage current

customers.

Price

An indicator of perceived quality.

Important in matching demand and supply.


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Place

Distribution channels for services are more direct New technologies permit service companies to provide

services without customers coming to their facility.

People

Service quality is inseparable from quality of services

providers


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Employees of service organizations have to be adept in

multiple roles.

Examine the role played by customers in service

environment.

Seek to eliminate harmful interactions.


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Physical evidence

The environment in which the service is delivered. Includes any tangible goods that facilitate the

performance and communication of the service.

Process

Procedures, mechanisms and flow of activities bywhich a service is delivered to customers.


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Process and its visibility are both important for

customers Process should be employed only when it is required to

provide a service and not because customers have come

to expect it.


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SERVICE QUALITY Mgmt


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Gap between consumer expectation and management perception:

Management does not always correctly perceive what customers want.

Hospital administration may think patients want better food, but patients

may be more concerned with nurse responsiveness.

Gap between management perception and service-quality

specification:

Management might correctly perceivecustomers

wants but not set aperformance standard. Hospital administrative my tell the nurses to give

fast service without specifying it in minutes

Managing service quality


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Gap between service-quality specifications and service delivery:

Personnel might be poorly trained , or incapable of or unwilling to meetthe standard; or they may be held to conflicting standards, such as takingtime to listen to customers an serving them fast.

Gap between survive delivery and external communications:

Consumer expectations are affected by statements made by companyrepresentatives and ads. If a hospital brochure shows a beautiful room, butthe patient arrives and finds the room to be cheap and tacky looking,external communications have distorted the customer's expectations.

Gap between perceived service and expected service:

This gap occurs when the consumer misperceives the service quality. Thephysician may keep visiting the patient to show care, but the patient mayinterpret this as an indication that something really wrong.


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Campus Overview

907/A Uvarshad,GandhinagarHighway,Ahmedabad 382422.

Ahmedabad Kolkata

Infinity Benchmark,10th Floor, Plot G1,Block EP & GP,Sector V, Salt-Lake,Kolkata 700091.

Mumbai

Goldline BusinessCentre Linkway Estate,Next to Chincholi FireBrigade, Malad (West),Mumbai 400 064.


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THANK YOU

Documents

A Case Study on ETRADE Financial Corporation Presentation - Unitedworld School of Business