The Citibank Strategy Using Ebusiness Marketing Essay

The Citi strand St valuategy Using E blood Marketing EssayIntroductionThe Citi depository financial institution started in 1812 in the city of New York in the United States of America, the fix started with truly check blood personal line of credits selling mostly amends policies and investments, the situate was unitary of the graduation national brink in the US, developed very early in the late 19th coulomb, the coast expanded fast and gain customers faith quickly which contrive former(a) affirms dread the fast climb uping Citi border, by and by became c to a smashinger extentovered the Citigroup which gnarly contrary monetary sectors and joined the integration headache trading operations with another(prenominal)(a)wise(a) companies.The confide make upd mod business opportunities, for mevery business by offering adds and sh ars, the familiarity has acquired the business add-ins which made it easy to vision with the property transactions and ot her payment methods, the credit cards en campaign to be fast for that period of time, besides with the fast growing practice of the cards, the business boomed and other method for money transactions creation required, the Citi patois was one of the first blasphemes to create the online e-business resultants to ease the work load on their employees, annul the cost of musical compositions with paperless statements to customers, and increase the speed of communications.The banks competition has increase in the past a a couple of(prenominal)(prenominal) stratums, the artifice of the e-business and parcel product solution has be boldnesssk the banks transcriptions and advanced it for the befits of both the banks and their customers, the basis resulted in the increase in competition development whatsoever methods to win and control the trades, the competition has two ways of competitions, the complete(a) and the monopolistic, the Citibank employ both of them, sh ard benefits with holys competition victimisation integrated business patterns with other banks and business authorityners and intentd the monopolistic to infix cheaper prices and sh argond investments with afield beneficiaries without the evanesce of the impact on the US securities industrys.The Citibank exercisingd galore(postnominal) strategies in their plans, development the schema to compete in the trade inescapably plan to observe the financial foodstuff and the stock trade very closely, the bank introduce the prices very carefully when it comes to expenditure the monopolistic approach which gives them the lead in the price manipulation, the other strategy is the securities industrying which is the most important factor in in increasing sales margin in the tangible as objurgates and up the corporations image in the intangible assets, employ the e-business for merchandising has advanced very untold and the online mart has create of its capabilities and w orth, using the e-business for marketing needed analysis from the Citibank to evaluate the situation from time to time to manage their marketing operations and strategy.The Citibank later researching, analysing, and deciding to social function their plan for each the strategies mentioned which assistanceed them for a century of financial products and run, the comp any realise that any business lead do anything to survive the unhoped, using the perfect theory or monopolistic are the said(prenominal) it does not make them evil or unethical bank, the carriage in the market and the competition comes from nowhere, are the bomb shill of the financial market and any market, the Citibank working tally the stock and financial market departs and the vari efficiency of the market is controlled by no one except the fear or the stable characters that manage and operate in the markets.E-Business go strategyThe reckoner age, came and change businesses how they functions and run, the invention of the bundle and other computer solutions made the business lifetime easier and intruded speed at the work place, the vernal invention has two sides, the first is an advantage for the business some the earth for the contend mentioned, the disadvantage is the increasing in unemployment, the to a capitaler extent software program invented the more nation lay back of work and the machines taking over, lots of machinery provide be controlled and operated by one employee. The whole software butt on done automatically, the whole time is the bank human re citations interfere in human ghost when the situation get out of hand and investigating is a must, the bank depart launch confidential investigation for each(prenominal) case, the website of the bank has many features and facilities that forget the clients and customers to brows into their products and table services. (Bodily, 2004)Citibank one of many companies who are responsible for making much redundancy around the earthly concern and trusted the new world innovation in e-business and its functions, for case in the past anything get to do with bills, paper work, transactions authorisation, troupes editing, needs many processor employees to deal with the requirements and the time spend on that job provide take months to complete especially if in that location is mistakes or error by human touch, the new innovation in the software computing system the two most advantages that mentioned, the speed of the process depart take few minutes for diligences to be leaded and the finale of a task ordain take few days rather of months, if any mistakes occur, the software automatically exit fix the error and disregard a report for that matter, Citibank has a website that uses very strong encryption infobase which includes all the work needs and security for tribute from any unexpected hackers attack, or competitors trying to invade the Citibank privacy which is common in the monopo listic competition. (Bodily, 2004) fig 1 the plat illustrated the e-business operation mingled with individual and the bank / the source Google image.The diagram gives the idea of how the selective declareation and information transfer between customers and the bank, the information will go through many au consequentlytication procedures before reach the other end with seconds or minutes, the strong and secure database needs more bit encryption codes, the software solutions has altogether agreed drug user label and pass words for the companys employees to identify them and renounce them to inter the main earth software to be able to manipulate the database and do the work in a safest way, the combinations of the system is very complicated and has millions of diametrical codes and has countless meter, the other security and safety for the Citibank online services that defend been innovated and made relations with the bank with more confidence is that Citibank introduce t he secure online personal accounts for customers which allow individuals to go online and need to put the password thence put the various numbers in different summon and then ask for the account carrier around questions, then when all this done in just few seconds the bank account knave gives you information of the last time you visited the page, if the user sees it was not him/ her visited, then the bank ask customers to be in make at once and the bank will freeze the account till further investigation done. (Smart Computing, 1999)The bank also provide credit cards products, the cards would be partnership stimulate with the VISA, MASTER CARD, AMERICAN EXPRESS, and DINNER, the bank provide these cards to customers through contract done between the Citibank and the cards companies, contract between the customer and the cards companies, and the Citibank and customers, the bank will fill automated action through the safe their database and the cards companies database, the fin ish takes few minutes and the respond will be approved or declined, if its approved, the bank will fill automated application to part that is designed for the bank in the application confirm the authorisations of money and the card, the bank then will issue other automated application between them and the customer for a contract that assure the customer will agree to their policies and receive the cash with guaranteed safety, the bank then will try to sell the customer their favourite product which is the insurance for the loan just in case of unemployment, sickness, or other yard that will be related to the customer un able to pay the loan back, the card issuer will take few days to process the card and transaction of the cash will be automatically processed, this process in the past would take months to complete. (Daft, 2008)The Citibank products and services, foreshadow that the new innovation way of the bank functions are simple, fast, and secure, so the bank when provide o nline process of application the promise to ensure the customers service and support through the period which the customer requires, the bank provided claims facilitation for the online support that was designed for communication between the bank and customers, the products much(prenominal)(prenominal) as insurance has various style and designed to different segments, there is life insurance just in case of any deaths in the family, health insurance that designed for reduce the hassle of GBs and hospitals and give peace of estimate just in case of health emergency, travel insurance for families or individual just in case flights arseholecelled or stir up in the process of the airport or anything related to travel, insurance on property includes business and private properties which the bank made it compulsory if the customer took the loan from the Citibank, in some insurance the Citibank require customers to fill application and provide all the personal data then the insuranc e will be immediately effective, and other insurance needs to be investigated after filling the online application such as home insurance. (Robbins, 2001)The Citibank with all these e-business products and services, the software companies didnt stop on providing the online services at this point but gone much far than that, the database between them and customers, the use of the mobile phones has increase compare to the 90s when its first used, in that time such use however for calls and maybe some companies give the customers privilege of SMS in the old encryption data, the calls were too noisy and the and the online or cyberspace werent invented yet, the banks customers would be advised to visit the bank very often to ensure of his/her bank account running smoothly. (Earl, 1999)The software companies has created a system similar to the online on the internet on computers, the use of the internet on mobiles phones has topped the chart for businessmen, students on the go, busin essmen needs the internet handy when they travelling and some data to be direct right away and this data sometimes contain important contents, other important use is that sometime some money transactions to be confirmed before deadlines, so some deals to be entire, Citibank asked the software solution company to use their latest innovation in mobiles technology with their bank services by contacting and facilitate the online services with mobile online personal accounts, the contracts set again with two parties, the first one is the bank with data transferred steadfastly online on the mobile, second is the mobile company such as Vodafone, Orange, and T-Mobile and others, the contract will allow the bank to use and manipulate their database online through different encryption that designed solely for the mobile use only and allow Citibank customers only to process their online personal bank, in return for this service the bank will encore little charges that will go to the mobile phones company for their allowing the bank and the bank customers through their technology.In the past the needs for data transfer, information feed, on the go messages between the bank and the customers were not blush a dream, people wouldnt believe the idea or someday some technological advancement would get to the point where SMS messages will reach the internet mobile services, but now in the use of the mobile services has reached customers that wouldnt be possible before, the bank provided SMS services that will allow customers to go through their bank accounts online on their mobile phones and check their messages from the bank to inform them of the balance and their statements, they take down give a code to short SMS messages with 52484 which allow the customer to go direct to the page as this code being published on the Citibank website, the other thing that resulted from the contract between the bank and the phone companies is that both companies will confirm shared a dvertising, the bank using the phone companies will recommends the contracted phone companies to their customers and the phone companies will advertize for free in their phones pages for the bank, in this way both companies using each other customers, the diagram structure illustrated in the next diagram shows the e-mobile new invention of how data and information being used and what structures pertain in the data transfer through only mobiles encrypted codes. (Earl, 1999) simulacrum 2 the diagram illustrates the e-mobile operation structure / the source Google image.The Citibank also provides online services such as paying the utilities bills such as gas bill, electricity bill, the services will be encrypted to suit the transactions between banks, for example the customers go online and claim the feature that say mange your bills, the page will identify the codes encrypted when password inserted, the page then appears and the customer will be required by the bank to fill some fo rm online, then after the page completed the software automatically asks from the customer to wait for the application process, the page then will appear to confirm the transactions form the bank page to the company that issued the bill and sending email confirm the payments. (Earl, 1999)The bank even invented a saving system plans for their customers using the automatic savings accounts, for example the technology software designed for customers, to deposit a certain number of money let say $500, the cash in two year will automatically work through very complicated data allow the number work itself through some investments, the calculation data would be inserted in advance into the system so the money will be calculated each month automatically, taking certain theatrical role from the investments cut despite the investments success or fail, the calculation set to hold in the cut from the investments automatically to the customers bank accounts, the procedures through the e-busin ess are very complicated, so no one allowed to altered or changed it, other investments that the customer will share the data designed to allow the customers share the loss of some investments if they decline and the contract is very clear approximately this on the online application, the clients on the other hand train different shares and different applications that only allowed clients or companies to enter private domains on the software solution main page. (Handy, 1997) grade 3 the diagram illustrates the Oracle application master of ceremonies which allow only secure data transfer / the source Google image.The diagram illustrates the type of server that they use which carry strong bits and security software to enhance the protection of their customers, the software also give customers other benefits such as enter and output information without the system break down. One of the biggest Citibank investments products is, the mutual fund investments which the software give cus tomers the argufy to compare their prices online, through their own uniform resource locator and websites to guarantee the customers the promise of fairness and give customers the taste of the investments that will change their life forever, the bank realise that advertising for their products is not enough, they had to take the challenge with the help of the technology through comparison with other banks or mental synthesis societies offers online, the offer includes the extra benefits that Citibank willing to give up for their customers for the benefits of both the bank and their customers, the Citibank already researched the use of the comparison software and understood its methods, the more benefits to customers the more the software will put them on the top of the comparison list, and that how the software has been designed not for specific bank, its mutual contract for the benefit of everybody knotty in this equation of cat and mouse, the strategies of the Citibank are diff er from uncouth to country and region to the region, the websites are so many and each one has different language and different approach even though the target is the equal to increase profit and inter new markets, the use of the online banking has the same benefits for any nationality or culture, and the Citibank has designed many websites for their bank all over the world. (Handy, 1997)Citibank strategical MethodsThe Citibank operates using two theories, using the perfect theory and the monopolistic theory, the perfect competition theory when the market is deciding and have prices control, and all companies are happy with it, no one has the baron in controlling the prices function, the Citibank perfect competition allow other companies to share the competition, in the other side of the competition theory is the Monopolistic competition which apply its hard line attack on prices, companies who are ready to take this road has opportunities to use the market in an odd way to gain profits dealing in this kind of competition and selling products, the market easy to use one way enter and the other way exit and no obligations, there are many products and consumers in this market but no business has total control as the prices sometimes change according to circumstances such as financial market changing. (Borden, 2009)Since the beginning of the world financial problems few years the Far East governments have a contingency plan to protect their economy by not depending on one sector or one business as they formed a plan of Diversification in both the government and private sector in which made them pass the credit crunch that happened in the US market regarding the Citibank business in which show that the overseas wooden leg has survived the decline stage comparing to the other banks in the US market because of the freedom of ability to change some regulations overseas that depends on the circumstances. (Carr, 2003) insert 4 the table illustrates the bank balanc e sheet for internal use by the Company/ the source Google imageThe table above illustrates the rudimentary known balance sheets for bank and building societies the balance sheet help the bank determine the revenue and expenditures for the company annual statements.The Citibank starts to follow the plan in which suits all their market audience mostly new segments and new markets, The banks move was to educate employees, and provide proper training and understanding almost the culture of each region, and understanding the laws and legislations of each government separately and make sure that the managers have the right management equipments and tools for running the company overseas. (Carr, 2003)The cracking strategic move Citibank is to change the image that developed lately about company abroad, the first one is the use an ethical way of livelihood some takeaway business with loans that use food processing with chemicals seeds to grow a paltry, without realising that the bank m ovement has been calculated and monitored from different ethical groups. So Citibank try to change this image by come close to the confederacy and show them how they follow the right way, they only support those who are in store(predicate)(a) the right ethical path, especially the local religion and culture in some Far East countries such as Indonesia about side by side(p) the ethical ways, introducing HALAL bank account which does not charge stakes on any bank account in the Islamic way, on the other side of the world, in the US the plans didnt work the way Citibank hoped, the ethical groups are fiercely attacking the bank plans of supporting companies that uses chemicals and damaging the environments, which resulted in hostility and debates, and that wasnt the only case. (Borden, 2009)The Citibank get involved in many unethical cases such as relying on foreign investments that depends on cash and not involved the concern of the ethical side, the case involved allowing overse as investors who are involved or suspected in wrong doing in the banks shares, and other cases such as running from paying taxes on some secret investments overseas that not has been registered in the US tax department. (Borden, 2009)Marketing StrategiesThe most smell of the banks business, or any business for that matter, the company abilities to sell their products and services, the way of fight back themselves and how a company can promote themselves with careful approach to the other businesses and the public, the most important thing for the Citibank using the marketing techniques is the use of the HR to control the damage that has been a headache all these years. (Kotler, Keller, Brady, and Goodman, 2009)The Citibank used the strategies such as the four Peas, the strategy which proofed success in the market because of its accurate analysis to identify their assets such as tangible and intangible, the assets have great power impact on any business, when identify what the com pany as place, product, price, promotion, the company can determine the immediate situation of what they have and compare it to the market and their competitors, the bank will find where they stand in the market, using other analysis such as the market the BCG which meaning the product life cycle, any company use this matrix can determine their products or service if its worth selling it in the market or its waste of investments in new product or service. (Kotler, Keller, Brady, and Goodman, 2009)Figure 5 the diagram illustrates the 4Ps matrix for the marketing mix/ the source Google image.The 4Ps in this diagram explain the basic 4Ps matrix and its marketing mix, the Citibank uses this matrix all the time to determine their own marketing mix, start with the products, the bank provided the world with the finest banks services and products which adding new various extra every time the market require the change such as the e-business and update and renewal of the computer systems, if the bank does not use these techniques they wouldnt know that the markets needs the changes and the products will be the same and nothing extra or no variation in products will be added, products and services innovation coming in the same category of the variation which products and services needed to be inspired by the old ones, the inspiration comes also form the customers needs such as the customer easy to use a bank account and the ability to manipulate his/her own bank account which came possible with the e-business.The place or the locations in the marketing mix, suppose to be the first choice for any business the distribution channels which is favourite by any bank around the world to be able to connect with their customers, the Citibank has many locations around the world that enable them to sell direct to customers and increase communications with their clients as well as the public, when talking about the place in the past, person will understand is only the locations , but with todays technology advancement age, the judgment has changed and place in the marketing mix also means the online services which include all the features that are available on sites, everything customers needs it will be on their websites, including choosing of any language, data, design that suit individuals, business 2 business communications, data and cash transfer, and many more. (Li, 2007)The price of the Citibank always using the price elasticity to compete in the market, the hard line prices which force customers to buy the products without compromise is out of the question, the plan of the bank always have variations as well as the products, the prices are different targeting different segments such as students cards which has a different price charges than adults or pensioners, the Citibank uses the brainwave price techniques which allow them to set a price for a market solely for the penetrate the market, for example a basic bank service or product cost a certain amount in the market, to penetrate that market the Citibank as a large experience company set challenging and competitive price known that other banks will not try to do the same, in this case the Citibank penetrate that market in that specific product or service knowing that they win that product or service.Finally the promotion, a technique in the marketing mix that give a chance to the bank to identify the innovate promotion techniques and what are the new competitive techniques, the first thing this technique depend on is the mass communications, the communication will be between the Citibank and their marketing company that has a complete management system designed especially for this kind of function, for example when the Citibank faced all that unethical debacle and the controversy that came with it, the marketing team and the PR of the company unit with the marketing company to do damage control and set the right criteria for purgative statement right away, and didnt st op in that, the PR of the company kept appearing in different media channels, a newspapers, magazines and TV shows to calm the bring up down and proof that the bank actions are ethical and responsible. (Poter, 1998)ConclusionThe Citibank as a large corporation, started as an effort of ambitious individuals who saw the approaching in something that became multinational company later, the company has offered the world many great products and services, created many opportunities and jobs for the public, helped the yearly capitalism to evolve with a system that proofed its success for over a hundred years, the company helped the world of how to create management system, increase communications techniques, helped in many researches and projects that contributed to the world of business of today, each individual in the guide senior management throughout the history of Citibank has created something new for the companys systems functions, walking with the changes and the obstacles that have occurred in the last one hundred years has made the company stronger and wiser and that is why the company deserve the kudos for success even though their main target is the cash.The company technological advancement and co-ordination in communication, helped the company to maintain the lead in the banking business, when the technology of online business came about in the middle of the twenty century by many Microsoft companies, the computer appears in many companies offices and start to be part of the business, the public then has no idea who information and cash being transferred or market works.The Microsoft companies start to challenge each other in the software technology which transferred the business function forever with the e-business and working online, the future of the e-business the way Microsoft sees it, it depend on the customers take away because the world markets today are leading positions on any business or functions is the (demand word), the businesses r ealise that the demand age is here and depends on the future customer imaginations and liking, the Microsoft predictions are creating software that calculate for the customer all the banking options and give them the best deals not only what is going on today which present the customers with choice of best deals on comparison sites, the future calculation is counting the person best interest of the charges and the system in the future will force bank system to change to concentrate on the customers interest rather than the cash and sales that generated by venerable customers who are being charged with lots of money and they have been cornered by greed of the banks.The Citibank plan is to create a new management system that can monitor changes in the unexpected events that force immediate actions the plan will includes the increase in partnerships with feared competitors who are causing Citibank money and effort to keep them out of bay, these companies not only in the bank business b ut also in the other business functions using the help of the US governments senators and other congress Politians power to force laws and regulations to be adjusted or removed to suit few rival companies, the Citibank has their own share in the equation of power but to illuminate the surprises, their plan to come closer to the rival its one of their priorities.The Citibank uses a software system that connect them straight to the financial and the stock markets, using the online e-business has helped them to monitor changes in the rate of exchange and the stock market share, as the Citibank corporation operates overseas, their actions depending on the rate of exchange and enhance their profits and revenues, the bank trying to regulate the e-business system with their overseas rivals in the banking business and create rate exchange monitoring system that will be specialised in the movements of the transactions, rather than the present system that only depends on the market movements and the price that would lead them to follow the market price regardless of their rate exchange concern, even though the Citibank used their tricks in the past, the company fears from the consequences that leading to the media scandals and public mistrust.Finally the Citibank is the company that has contribute for many years, delivered to the public great bank system, introducing e-business cost money, time, and effort to research it and implemented, the future for the bank business is bright and looking rather well, the bank system always will put the revenue ahead of their customers and that is the way business world functions.