MAR 3023 Selecting Distribution Channels Exercise In the beginning, most banks typically only used one distribution channel (their branches). About 20 years ago things started to change and banks have dramatically expanded the number of channels that they use. Below is a list of common distribution channels for a bank. Your task is to identify the most appropriate mix of channels for two different banks. ACTIVITY/TASK Bank #1 is a major bank with an extensive number of branches throughout the USA. One of the key aspects of their positioning is that they offer great personal service. Bank #2 is new in the USA. They have no branches and have very little brand awareness in the market. Their plan is to specialize in offering great value home loans only. Consider the most suitable channels for each of them to meet their objectives from the options below. Direct channels Direct channels Branches Mobile managers (who visit the customer) Indirect channels Enable transactions through third-party retail stores Phone (a call center) Personal Banker (staff who directly look after customers) Utilize mortgage/loan brokers Phone (an automated system) Direct mail Utilize investment advisers/financial planners Internet banking Email Get referrals from real estate agents and accountants ATM's Mobile phone messages Generate sales/referrals via independent internet sites QUESTIONS 1. What are the 3 most suitable distribution channels for each bank? Why? 2. Is your selection of channel options relatively similar or different between the two banks? Why? 3. What role does "place' lie., distribution channels) play in a firm's overall strategy and marketing mix