Protective Marketing During a Bank Merger.

• Author: Gervino, Joan

The Problem

Recently a marketing director in a mid-sized bank asked for help in crafting comprehensive marketing/promotional plan for an upcoming merger with another financial institution. As an experienced bank marketer, she recognized that other financial institutions within the market area would be jockeying to lure customers away while the implementation was in process. She needed to know what had been successful at other banks her size and how they had positioned and branded their banks for maximum competitive advantage.

The Solution

The successful implementation of a bank merger requires tremendous coordination, and the melding of separate systems and varying cultures. Effective marketing of a merger requires not only that the right messages are delivered to both current and prospective clients, but also that these messages will not be diluted--either by ineffective service delivery or negative advertising of competitors. With success, the bank can retain the good will and loyalty of existing customers and attract potential new ones.

A prime example of an A-to-Z plan for marketing a merger can be found in a study by Patricia A. Fulmer of Lafayette Ambassador Bank in Lehigh Valley, Pa., "1999 Bank-Wide Marketing Public Relations Plan for a Post-Merged Bank," (School of Bank Marketing paper MP 993). Fulmer delineates the research necessary to develop a successful marketing plan for a merger transition:

* An analysis of the overall market area of the new bank and the strengths and weaknesses of the individual banks to be merged.

* An environmental scan to analyze the current competitive market area and the demographics of existing and potential customers.

* A thorough review of the culture of each of the banks to be merged, along with a review of their various service offerings, current pricing and fee structures, and delivery systems.

* The marketing philosophies and strategies of the pre-merger entities--identifying best practices already in place, as well as any key lessons to be learned.

* Development of new marketing strategies, tactics and responsibilities for the newly merged bank with schedules for specific marketing efforts and promotions.

* Follow-up to measure the success of the new plan as an integral part of the bank's management process.

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