Since 1953, Oregon-based Umpqua Bank has worked hard to earn a regional reputation as a friendly, responsive, and responsible community bank. Headquartered in Portland, the bank serves consumers, small businesses, and corporations in its home state as well as in Washington, Idaho, California, and Nevada. Umpqua prides itself on understanding its customers and its communities. It offers personalized service in more than 300 stores (bank branches), positioning these locations as neighborhood hubs for community events, not just places to make a deposit or apply for a loan. Every store has a hotline available for any customer who wants to personally chat with the CEO, whether to complain, give a compliment, or ask a question. 

Umpqua has formulated a separate marketing mix to meet the needs of each customer segment it targets. For small businesses, it provides a variety of checking and savings accounts, credit-card processing, loans, and other products and services to help owners manage their financial resources for ongoing growth. Larger companies can choose from a broad range of banking and financial services, including some especially tailored to five particular industries: retailing, manufacturing, health care, agriculture, and professional services. The bank offers financial products such as checking, savings, and credit and debit cards for consumers, along with a menu of specialized services for more affluent consumers.

Questions for Discussion

1. Is Umpqua Bank using a concentrated, a differentiated, or an undifferentiated targeting strategy? How do you know

2. Identify the categories of variables used by Umpqua Bank to segment the business and consumer markets. What additional variables might help the bank define suitable segments for marketing attention

3. Do you agree with Umpqua Bank’s decision to use a market test before launching its BFF app in the wider marketplace? Explain your answer