Virtual Wallet
User Rating: 0 / 5
- Details
- Hits: 47732
Wells Fargo Banking Services Virtual Wallet
Marketing Channels
As a multinational banking company, Wells Fargo must have means through which it offers banking products and services that match the different needs of their clients. The company has been evolving its marketing to fit its expansion and make good use of technology to ensure that it is capable of reaching all its customers and the wider population (Wells, 2016). The bank has partners in different industries and engages in several activities that drive down their marketing plan within the markets. One of the marketing channels involves the bank, the partner and then the consumer while the other flow from the bank to the social media and finally to the consumer. The first example is typically indirect channel while the second one is a direct channel (Armstrong & Kotler, 2010). The channels are applicable in every market even though the only channel is dependent on the existence of technology and internet services in the target market.
Marketing Channel Strategy
Virtual money wallet is typically used to the existence of the internet and therefore its current marketing channels will still be applicable in new markets. The intensive distribution strategy that the product currently enjoys is the search engine optimization and social media sponsored adverts (Wells, 2016). This is affirmable given that most of the applications for the virtual money wallet are made online away from the bank, with some clients operating their accounts without having visited the bank at any point. This distribution intensity is not changing in any way within a new market as long as the users can access internet services and wire money from different sources to the wallet (Armstrong & Kotler, 2010). However, the service may require a user to visit the bank to top-up the virtual wallet in case there is no any other channel of topping-up, or if the portfolio is only used for the one-way transaction.
Value Chain
The marketing channels for the product are simple, limiting the role of intermediaries and ensure that the consumer can access the service in a timely and convenient manner (Armstrong & Kotler, 2010). The role of the bank is to offer the services and infrastructure that support the service and assure security to the clients while also making sure that the customers get value from the product. The role of partners in this chain is to bring the product closer to the potential user and offer relevant information about the product that may interest the users (Wells, 2016). They also promote the product through their different initiatives while ensuring that more consumers access the product and take a step of using the virtual money. The partners can also guarantee the safety of the users, and provide alternative means of the product to sustain their relationship with the bank.
Pricing Strategy
Wells Fargo has a commitment to finding the right pricing strategy for their products that favors the clients (Wells, 2016). Currently, the bank offers the service free for any user who is interested and only effect transaction charges on the different types of transactions. Deposits to the wallet or transfers between the wallet and the bank and its subsidiaries are not charged. Nevertheless, the bank charges a small percentage of transfers to other institutions or merchants, which is way below other competitors. All the deposits to the wallet are free, but the bank ensures that it strikes a fair competition cost for the product, which sets the expense below what the competitors charge for the product (Armstrong & Kotler, 2010). For instance, when the competitor charges 3% on a transaction, the bank would charge 1.99% on a similar transaction.