It's about Return on Investment (ROI): a Q&A with David M. Kreiman, CFMP, about the New Online Course on Financial and Business Planning for Bank Marketers.

• Position: Marketing edge - Interview

When the ABA Marketing Network surveys its members, they say they would like to learn more about the financial and business planning aspect of their jobs. To meet this need, the American Institute of Bankers (AIB), an ABA affiliate, has introduced a new online course entitled, "Financial and Business Planning for Bank Marketers." The nine-week course is intended to help marketers understand the financial goals of their fellow bank managers and to access and communicate more effectively how marketing's efforts can help the various bank departments meet and exceed these goals.

The class instructor is David M. Kreiman, CFMP, senior vice president and director of marketing at Glenview State Bank, Glenview, Ill.

We recently questioned him about the new class and its objectives.

Q: Why is it more important for bank marketers to understand financial management, i.e., the business of banking--the budget process, the bank spreadsheet, and so forth?

A: Hopefully, anyone in a bank marketing position strives to maximize the bank's profitability. That should be the focus of marketing or sales; and, while marketing encompasses many other things, overall bank profitability is something that can actually be measured. Since it is only the fortunate few marketing officers who are actually "instructed" on what to sell (because numbers have been crunched and determinations were made as to what products and services drive the most profit), it almost becomes a self-service necessity for bank marketers to understand the financials as best as possible.

Q: What are the key things that marketers need to know in these areas?

A: Among other things: the bank's balance sheet (Do you need deposits or loans?). How quickly do specific loan portfolios run off? And, how do you price your loans and deposits in a competitive manner, as opposed to alternatives such as purchasing loans or securities?

Q: Explain the relationship of return on marketing investment (ROMI) and financial management.

A: In its simplest fibrin, ROMI calculates...