The main subject of the case is BBVA Compass, the bank that holds one of the leading positions in American and international markets. The bank has faced the problem of the distribution of its marketing budget because, based on the indicators of the previous years, the organization began to spend less on advertising needs. This gap, in turn, is reflected in the market position of BBVA Compass. Inadequate marketing has led to a drop in awareness for the brand, and the need to implement both online and offline promotional strategies makes it difficult to address the current gaps. As a result, BBVA Compass is forced to allocate the budget rationally to attract new customers and, at the same time, use the available assets adequately.
In addition to the steps already taken, such as paid search and buying advertising space, BBVA Compass has additional options for action. For instance, the bank can strengthen its IT department and create a more advanced algorithm for independent promotion in the online space. Another potential opportunity is to create partnerships to promote jointly both online and offline. Finally, BBVA Compass can strengthen its brand and increase recognition among its target audience by interacting with other search algorithms that provide narrow services to find the information clients need on specialized platforms.
The introduction of an advanced algorithm for independent promotion means spending assets exclusively for specific needs without the obligation to pay for the services of third parties. With this strategy, the bank can save money, but for this, a sustainable promotion program is critical; otherwise, funds could be wasted. Building partnerships is a prospect that can increase brand awareness but, at the same time, reduce the productivity of BBVA Compass. This may happen due to the loss of the competitive position and the split of the share of attracted customers. Interaction with other search algorithms requires a thorough analysis of the digital field, and effective work in this direction may cost the bank a little while ensuring the growth of the target audience.
While considering the potential, BBVA Compass should look at the prospect of interacting with other search algorithms on specialized online platforms. Paying for the services of leading systems, such as Google and Yahoo, is costly, and cooperation with sites that provide services to target customers in the banking sector can be less expensive. For BBVA Compass, this savings prospect is significant given the reduced marketing budget. Moreover, given the bank’s market coverage, this approach can be effective due to a large number of Internet users not only on the main platforms but also on other sites related to the financial sector. Therefore, such a promotional strategy can be productive in the current conditions.
The performed analysis allows the highlighting of several general marketing principles and concepts related to the promotion. Online and offline marketing approaches include a wide range of programs and steps to promote related products or services in different environments. The aspects of brand building and sponsorship can be described as the concepts that involve appropriate advertising and partnership initiatives, respectively. Paid search, as one of the promotion strategies, is a common approach to attract the attention of consumers on popular online platforms. Finally, the concept of display advertising is an important factor associated with market share and awareness for the target audience.