Marketing At Vanguard Essay

1142 words - 5 pages

Problem DefinitionSenior executives at Vanguard are evaluating their marketing strategy. In particular, they are looking at their approach to market segmentation, the organization of the marketing function, and the emphasis placed on marketing metrics in the corporate dashboard in light of an economic and stock market downturn.Situation AssessmentStrengths· Low cost high value; extremely low advertising spending and no large sales force.· Customer focused· High morale; Low employee turnover; high productivity· Management involvement· Horizontal organizational structure· Use of Six Sigma methodologies to cut expenses, gain efficiencies· Excellent use of benchmarking· Centralized customer relationship management· Use Internet technology in transactionsWeaknesses· Immature level of development of marketing efforts· No clear strategy or roadmap of dealing with increased competitionOpportunities· Improve crossover rates· Overseas marketsThreats· Excessive customer segmentation· Unusual decline in stock market indexes· High rollovers· Increasing deregulation in the financial services industryVanguard prides itself on providing low cost and high value to the customer and it is Vanguard's core competency. However, Vanguard's world changed when in mid-2003, Vanguard's niche market was invaded by commercial banks, investment banks and insurance companies due to deregulation in the financial services industry.Vanguard took advantage of the Internet technology for customer transactions and other innovations to offer no load funds to the investors. Vanguard successfully employed Six Sigma methodologies in order to continue to offer high value at the lowest cost to the customer.Some of the threats that could endanger Vanguard's prosperity or survival in the future include excessive customer segmentation where the varied offerings available confuse the customer and the investment brackets are not particularly transparent. Vanguard could encounter a significantly challenging situation if it is inadequately prepared to compete with the influx of firms in the industry. At the present time, Vanguard does not have a clear marketing strategy that fits in well with overall vision of the company. For example, Vanguard is uncertain where sales and marketing efforts fit in the corporate dashboard.The dashboard is a communications tool that offers an overall view of the condition and performance of the company in key indicators or drivers for success. Management was constantly provided with the dashboard and updates at board meetings. Thus, Vanguard efficiently used this tool to organize its marketing and sales efforts in support of the overall strategic objectives.Vanguard has to take proactive steps in order to guard against unusual declines in stock market indexes. In addition to insulating their margins and maintain their market presence during times...

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